Hey Founder, here are the latest tech news and insights:
- Apple ends annual product releases
- Writer secures $200M at $1.9B valuation
- Rand Fishkin challenges Google claims
- Analysis of YC's latest S24 batch
- YC сriticized for AI сopycat
- ULTRA.VC: Mental health in startup culture
- Open rates of emails reaching VC inboxes
- and more
Apple shifts away from its annual product release strategy
Bloomberg reports that Apple seems to be moving away from its practice of annual product updates. Maintaining such a schedule is becoming increasingly difficult, especially with the expanding product lineup. Moreover, not everything needs frequent updates — like the AirPods Max or Apple Watch Ultra, which were mentioned during the recent presentation but didn’t receive any updates.
In fact, these changes are already noticeable — different iPad versions are being updated at different times, and the MacBook, which effectively exists in three versions — Air, Pro 13", and Pro 14/16” — is updated at least twice with the release of each new processor. So, it seems that we shouldn't expect fall (perhaps next year’s fall) to be the season for new products across all categories. Instead, Apple will likely introduce something new every few months.
Writer raises $200M at $1.9B valuation, launches new AI model
San Francisco-based AI startup Writer is securing up to $200 million, increasing its valuation to $1.9 billion from $500 million last September. The funding supports Writer’s new AI model, designed to compete with leaders like OpenAI and Anthropic. Notably, Writer developed its AI with only $700,000 in data and GPU costs by utilizing synthetic data, which enhances training efficiency and protects privacy.
Founded in 2020 by CEO May Habib and CTO Waseem AlShikh, Writer serves over 250 enterprises, including Accenture, Uber, and Salesforce. The company is backed by investors such as ICONIQ Growth and Insight Partners and is recognized as one of Forbes’ top 50 AI companies. As the generative AI market grows, Writer’s innovative approach positions it for continued success in the competitive landscape.
Google tests verified checkmarks in search results
According to The Verge, Google is testing a new feature that adds blue checkmarks beside business links in search results to help users identify genuine companies, such as Meta or Apple, and avoid fake sites. The feature, still in limited testing, shows a message when hovering over the checkmark, explaining that Google has verified the business through methods like website verification and manual reviews. This is similar to Google's Brand Indicators for Message Identification (BIMI) system used in Gmail. No official release date for wider access has been announced, but some experts say that it can be challenge for some smaller companies.
Rand Fishkin disputes viral claims of Google's decline
A recent Wall Street Journal article went viral, claiming that Google is losing its dominance in search advertising due to the rise of TikTok, AI search engines like Perplexity, and antitrust pressures. The article suggests Google's share might drop below 50% in 2025.
Industry expert Rand Fishkin challenges these claims. He points out that Google's search advertising revenue and market share are still strong and even growing. Data shows Google holds about 88% of the U.S. market and over 90% globally.
Fishkin notes that while platforms like TikTok and AI search engines are gaining attention, their impact on Google's user base is minimal. Most people who try these new platforms continue to use Google. Instead, he identifies Amazon as a more significant competitor in search advertising, though Google remains far ahead.
He emphasizes the importance of not being swayed by sensational headlines without examining the data. According to Fishkin, Google's position remains robust, and the perceived decline is more about the overall market growing with new players than about Google losing its lead.
ImpactFest
Nov 7
ImpactFest is a leading impact event in Europe in The Hague. It brings together startups, investors, and policymakers to collaborate on themes like the circular economy and climate justice. With over 1,500 attendees, the event features interactive sessions and networking opportunities, aiming to foster innovative solutions for a sustainable future.
Seedcamp
Apply Anytime
Leading European seed fund and accelerator, Seedcamp provides early-stage businesses with tools, mentoring, and a strong network. Established in 2007, it supports aspirational business owners in a range of fields, including fintech and artificial intelligence, offering customised help to hone company models and scale successfully. Strongly focused on community and teamwork, Seedcamp is dedicated to raising the following generation of successful startups.
Alcorn law supporting startups
Contact Anytime
Alcorn Immigration Law focuses on guiding startups and founders through U.S. immigration processes, including obtaining H-1B and O-1 visas. They provide tailored advice on maintaining ownership while navigating employer-employee requirements, helping entrepreneurs establish and grow their businesses in the U.S.
YC criticized for backing AI startup that admits copying competitor
PearAI, a new startup from Y Combinator, launched its AI coding editor on X and YouTube this Saturday, quickly igniting controversy. Founder Duke Pan revealed that PearAI was a clone of the open-source VSCode and Continue editors but initially used a proprietary Pear Enterprise License created by ChatGPT instead of the original Apache license. This breach of open-source principles led to widespread criticism from the developer community. In response, Pan apologized on Monday and re-released PearAI under the correct Apache license, acknowledging the lack of transparency and originality in the project.
Backlash extends to YC’s vetting process
The PearAI debacle has also put Y Combinator under the spotlight, with critics questioning the accelerator’s ability to vet startups effectively. Y Combinator CEO Garry Tan defended PearAI on X, emphasizing the value of open-source projects, but faced backlash for the delayed license correction. Additionally, concerns were raised about YC’s track record, as it has funded other similar AI code editors like Void and Melty. Critics argue that YC may be prioritizing rapid funding of AI startups over thorough due diligence, highlighting challenges for VC firms in maintaining ethical standards amid the fast-paced tech boom.
Analysis of YC's latest S24 Batch
James Seidel made his regular analysis of the latest YC batch, and here are top takeaways that are not that surprising:
YC’s latest S24 batch includes 255 companies.
67% of companies in the batch are categorized as “AI.”
Over half (55%) of the companies include a founder with a Master's or Ph.D.
72% include a founder with a computer science background.
Most companies (54%) have two co-founders.
67% are based in San Francisco.
Around half (48%) of companies have at least one second-time founder.
ULTRA.VC | Mental health conversations in startup culture
The startup industry, while improving lives globally, faces the issue of founder exhaustion. A 2024 Sifted report shows 61% of founders have considered leaving their companies. Only 10% feel comfortable discussing stress with investors, according to Startup Snapshot. This initiative, in partnership with the VC community, seeks to address mental health challenges and foster resilience in founders.
ULTRA.VC is an early-stage VC fund with an in-house accelerator, focused on helping startups find growth channels to accelerate their businesses. The mission is to foster an environment where startup founders can thrive, not merely survive. A survey is being launched to collect crucial data on the mental health challenges faced by entrepreneurs. This initiative aims to uncover the reasons why founders often hesitate to discuss stress and mental health issues with investors. The goal is to identify actionable steps that investors can take to create a more supportive environment for founders. By gathering insights, the intention is to develop initiatives that enhance the well-being and resilience of founders, ultimately contributing to the sustainability of their ventures.
Explore alternative startup launchpads
Beyond Y Combinator: consider accelerating with these instead.
- alternative programs could be your perfect launchpad.
- Accelerators in the United States
1) Techstars
2) 500 Startups
3) AngelPad
4) Plug and Play Tech Center
5) SparkLabs Group
6) MassChallenge
- Accelerators in Europe
1) Seedcamp (UK)
2) Startupbootcamp (Netherlands)
3) Startup Wise Guys (Estonia)
4) Venturelab (Switzerland)
5) StartupYard (Czech Republic)
6) SpinLab - The HHL Accelerator (Germany)
- Accelerators in APAC
1) NAVER D2SF (South Korea)
2) Skystar Capital (Singapore)
3) Startmate (Australia)
4) Antler (Singapore)
5) Zeroth.ai (Hong Kong)
6) AppWorks (Taiwan)
- Accelerators in other regions
1) Startup Chile (Chile)
2) Flat6Labs (Egypt)
3) ACE Ventures (Brazil)
4) AlphaCode Venture Partners (South Africa)
5) FounderFuel (Canada)
6) NXTP Ventures (Argentina)
Remember, the best accelerator for your startup isn't necessarily the most famous one, but the one that aligns with your industry, stage, and growth goals.
Originally published on Timo Gehrke’s LinkedIn
“So my actual meeting rate is something like 10% for warm intros, 2-3% for programs like YC, and 1% for cold emails”
“Each year, I get 3.5k cold email pitches (+2k warm intro offers, +2k YC/, @deepchecksvc pitches). I meet w/250 of these startups. This funnel is why cold emails have to be excellent. Even if I ignored all warm intros, I'd only be able to meet ~7% of the founders that cold email me”.
These are quotes from a tweet recently published by Leo Polovets (Susa Ventures), and it provides a clear insight into how challenging it is for founders to break through to investors. Check the whole thread for more insights on the importance of cold emails.