💸 AI investing will move beyond the hype in 2024

Hello👋 Apple faces the risk of losing its long-held title as the world's most valuable company, as a substantial $164 billion stock plunge in the early days of 2024 puts its market dominance in jeopardy, attributed to two ratings downgrades and concerns over a weakened macro environment in China affecting iPhone demand.

4 major headlines

🚀 OpenAI is set to launch the GPT Store this week, providing a marketplace for developers to showcase and distribute custom applications built on its text-generating AI models, such as GPT-4, with developers required to adhere to updated usage policies and brand guidelines for listing eligibility.

💸 Fidelity Investments cut its valuation on X, formerly known as Twitter, by another 10.7% in November, Axios reported, the latest indication by the mutual fund giant of what it thinks the private social network is now worth. Fidelity has now cut the carrying value of its stake in X by 71.5% since Musk’s October 2022 $44 billion acquisition of the company.

👩‍💻 The adoption of generative AI tools by PR professionals has surged, with a Muck Rack report revealing that the number has more than doubled since March 2023, signaling a transformative shift in communication strategies; however, concerns about disclosure, privacy, and the unpredictability of AI output persist among practitioners.

📉 The seismic Big Tech layoffs of the past two years, totaling nearly half a million job cuts, have not only shattered the industry but have also permanently altered expectations for leaders and workers, prompting a psychological unsettlement among executives and serving as a wake-up call for tech workers about the precarious nature of their jobs, challenging the long-held notion of tech as a quick path to wealth.

From revolution to real-world value: How companies can benefit from Web3 in 2024

In 2024, Web3 is shedding its initial metaverse hype and finding practical applications in the business world. This article explores how companies are leveraging Web3 for real-world value, moving beyond revolutionary ideals.

Stablecoins like Circle's USDC are streamlining transactions, enabling cost-effective cross-border payments. Blockchain and smart contracts are enhancing transparency, with examples like Tracr tracking materials in complex ecosystems. Major brands, including Nike and Puma, are successfully integrating Web3 into physical campaigns for heightened customer engagement.

Web3 as an accelerator: Web3 is now seen as an accelerator, enhancing existing Web2 infrastructure. The Starbucks Odyssey loyalty program demonstrates how modern Web3 loyalty initiatives can generate substantial revenue by seamlessly integrating NFTs into real-world experiences. Enterprises like Salesforce are adopting Web3 components to facilitate loyalty programs, and platforms like Audius provide a user-friendly experience without requiring extensive Web3 expertise.

Focused use cases for Web3: Web3's value is showcased in specific scenarios, notably in the realm of tokenization. Utility-based NFTs are gaining traction, with companies like book.io transforming digital content ownership. NFTs are proving their worth as proof of ownership for real-world assets, and established entities like JPMorgan Chase are utilizing tokenized deposits for innovative services.

Evolving ecosystem dynamics: The rise and fall of Meta's metaverse vision highlight the importance of collaboration in the Web3 space. Initiatives like Project Guardian signify a shift towards open, interoperable networks. Web3 building blocks, such as blockchain and smart contracts, hold promise in addressing challenges in the carbon market, necessitating collaboration across the value chain.

Web3 is thriving in 2024 by embracing practical applications. Companies need a strategic approach to integrate Web3 into their operations, considering transparency, liquidity, and utility-based NFTs. Rethinking ecosystem dynamics and fostering partnerships are crucial for unlocking the full potential of Web3.

Debunking the myth that crowdfunding is only good for cash

Crowdfunding isn't just about cash—it's a game-changer for startups challenging the venture capital norm. With shifts in regulations and VC funding becoming more elusive, equity crowdfunding is emerging as a compelling alternative.

Beyond cash: Equity crowdfunding isn't just about money. Startups are reaping benefits like repeat investors, customers, and top-notch talent. Chris Lustrino from KingsCrowd challenges the hype around venture capital's value-add, pointing out that customer connections and talent acquisition can be just as robust through crowdfunding.

Tailored networks, strategic wins: Forget the idea that VCs hold the networking crown. Equity crowdfunding opens doors to networks tailored to a startup's specific needs. Examples like Joule Case and Perimeter showcase how crowdfunding not only secures funds but also paves the way for strategic introductions to customers and key talent.

Equity crowdfunding isn't a one-size-fits-all solution, and yes, it comes with its challenges. But dismissing it based on the old-school belief that only VCs bring value is missing the memo. The numbers don't lie—equity crowdfunding is on the rise, and startups are finding success beyond the dollars. As the funding game evolves, it's time to rethink what true value means in the startup funding landscape.

VCs are optimistic that AI investing will move beyond the hype in 2024

AI startups, after a tumultuous 2023, face an optimistic outlook in 2024, according to over 40 investors. While funding is expected to continue, there's a shift towards more sustainable AI businesses, with a focus on sector-specific solutions.

Investors see potential in verticalized AI, anticipating lower risk and opportunities in areas like law firms leveraging AI for cost-effective services. The enterprise sector is predicted to drive AI investment in 2024, with a more refined evaluation of AI products and reasonable valuations for startups. Some expect a departure from labeling companies as "AI companies," envisioning AI's integration into software more broadly.

Despite potential shakeouts for startups lacking solid fundamentals, investors like Kevin Lalande and Don Butler remain bullish, foreseeing 2024 as a promising year for AI investing and the emergence of groundbreaking companies in the years ahead.

Five predictions for the 2024 Creator Economy

As we step into the dynamic realm of the 2024 creator economy, a series of trends and transformations are poised to reshape the digital landscape.

• Startups in the creator economy may face closures and acquisitions as market dynamics and financial constraints come into play.

• Creators are anticipated to play a pivotal role in the 2024 U.S. presidential election, with politicians integrating them into campaign strategies.

• TikTok Shop is expected to excel in e-commerce, particularly in unique, affordable items. However, it's unlikely to replace Amazon, especially for luxury brands.

• Creators are embracing AI tools, making AI-powered editing and technologies like ChatGPT a regular part of their workflows.

• Elon Musk's 'X' might undergo a significant rebrand back to Twitter, adding an unexpected twist to the evolving digital narrative of 2024.

Articles & links we dig

🧑‍⚕️ A healthtech unicorn leaves a trail of clinic complaints, concerns over billing practices (The Information)

💸 Lessons from going freemium: a decision that broke our business (Lenny’s Newsletter)

☕️ Why one venture capitalist decided to call it quits (The Information)

📲 Founder’s guide to B2B sales (Balderton)

 🌱 2024's climate tech predictions (Sifted)

🐉 11 VC predictions for 2024 (Sifted)