The future of M&A and why founders are getting whiplash

Nov 17, 2023

The hosts delve into how fintech powerhouses like Ramp are integrating AI, exploring its potential to supercharge growth. They highlight Sunnyside, a startup garnering attention for its innovative sobriety solutions, which just secured $11.5 million. A recent acquisition in grocery delivery sparks a discussion about the M&A landscape and its future. Additionally, the rise of hormonal health startups is emphasized, showcasing a booming market ripe for innovation. Could AI be the key to revamping startup valuations? Tune in to discover more!

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INSIGHT

Brex's Slowing Growth

Brex's annualized net revenue grew only 1% in Q3 2023, raising concerns about the high-flying startup.
This slowdown follows a surge in business after the Silicon Valley Bank meltdown, suggesting a demand pull-forward.

INSIGHT

AI in Fintech

Fintech companies like Ramp and Brex are betting on AI to boost their bottom lines.
Both companies are incorporating AI-powered assistants and integrations, mirroring a broader trend in the spend management sector.

ANECDOTE

Sunnyside's Sobriety App

Sunnyside, an app with an AI-powered coach, aims to help people cut back on drinking.
Launched in 2020, the app claims to have helped users avoid 13.5 million drinks.

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This week Mary Ann and Alex covered a host of news events. Here's the rundown:

Fintech + AI = ? News that Ramp and Brex are working to lever AI in the wake of reporting that Brex's growth this year on a sequential-quarterly basis slowed had us thinking. Can AI help fintech startups grow more quickly? The fintech sector could use a boon at this juncture, perhaps this is it.
Help I drink too much: Alex dug up a recent venture round in the sobriety space. This time it was Sunnyside, which just raised $11.5 million for its subscription service that helps folks cut back on their drinking. We've discussed other players in the space before, including Reframe.
What's ahead for the startup M&A market? The Getir-FreshDirect deal had us thinking. Becca Szkutak thinks that it represents the sort of deal that we'll see next year. Even more, we may see more, similar deals next year.
Will AI help startups regain their former value? A recent report from Battery Ventures had Alex thinking about how AI-powered automation could help startups spend less as they grow; Rule of 40, here we come!
Hormonal health will be is big: The Equity team dug into Allara the other week. Now we're adding Inito, which just raised $6 million, to our list of startups that are building in the hormonal health market. Natasha was right.

And that was the show! Next week is a holiday week here in the United States, so expect something special from us next Friday. We'll be on our regular schedule Monday and Wednesday!

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Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products.

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