2024: Founder Mode, AI, and the 'Rise of the Broligarchs'
Dec 27, 2024
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Reflecting on 2024, the hosts delve into the tumultuous world of venture capital, examining the exodus of funding and the shuffle among top VCs. They discuss the implications of ambitious AI investments, wondering if 2025 will finally bring returns. The struggles of companies navigating IPO pressures encourage a shift towards mergers and acquisitions. Additionally, internal tensions in the WordPress community highlight the complexities of innovation, while the rise of disruptive startups in AI and space emerge as key trends shaping the tech landscape.
29:43
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Quick takeaways
The venture capital landscape is shifting towards mega funds while early-stage investments are declining, revealing a complex dynamic in funding.
AI continues to dominate startup innovation, showcasing significant advancements and competitiveness among emerging companies despite ongoing challenges.
Deep dives
Reflections on Notable Stories
The conversation highlights significant stories covered throughout the year, emphasizing the dynamic landscape of tech journalism. One standout report involved a deep investigation into the struggles of Fisker, showcasing the complexity behind its decline. Another impactful narrative revolved around a lesser-known e-bike startup, Onyx, that faced turmoil after the untimely death of its founder. Additionally, the discussion included a captivating piece on Sam Altman that delved into the evolution of his role in the AI sector, underscoring the breadth of storytelling that shaped the year.
Shifts in Venture Capital Trends
The venture capital landscape experienced notable volatility, with a significant percentage of investors pausing deal-making activities compared to the previous year. A mix of 'zombie funds' struggling to deploy capital contrasted with the rise of mega funds accumulating substantial amounts of money. This duality reflects a changing narrative in venture investing, indicating a potential movement toward a bubble as firms grapple with uneven investor interest. Despite the uncertainty, some venture capitalists expressed optimism for a turnaround, pointing to a more favorable environment for fundraising.
Emergence of AI and Tech Startups
AI technology emerged as a prevailing theme for startup innovation, with numerous companies making headlines within this domain. Startups like Poolside showcased advancements in coding assistance, while others in defense tech signified a growing interest in dual-use technologies. Noteworthy mentions included platforms focused on in-space pharmaceutical production, demonstrating significant progress toward new frontiers. The overall trend indicated that while AI startups face challenges, there is still room for niche advancements and potential acquisitions, setting the stage for ongoing developments in 2025.
From AI advancements andCrowdStrike's crash toWordPress drama and which startups VCs have their eyes on next, TechCrunch’s Equity podcast is saying goodbye to 2024 with a look back at the year's biggest stories in tech.
Listen to the full episode to hear hosts Kirsten Korosec, Margaux MacColl, Devin Coldewey and Anthony Ha dig into:
Where did all the venture funding go? In a year of massive turnover, Margaux reminded us ofwhich VCs are playing musical chairs, the rise in mega funds and decline in early-stage investments.
How Wiz is faring after its choice towalk away from Alphabet, and who else is playing Deal or No Deal?
Predictions for AI in 2025. Investors have pumped billions of dollars into AI - including $6.6 billion forOpenAI, $6 billion forxAI, and $4 billion forAnthropic. Devin was left wondering, "Is 2025 the year they'll finally see returns?"
Before we head into the new year, the Equity crew would like to give a huge thank you to the listeners that stuck with us through 2024, and we can't wait for 2025.
Subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod. For the full episode transcript, for those who prefer reading over listening, check out our full archive of episodes here.
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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