Startup struggles in 2024

Hello. Adobe has walked away from its $20 billion acquisition of startup Figma after clashing with regulators in Europe and the UK. Adobe will pay Figma a $1 billion termination fee, the companies said in a statement on Monday.

^{PRESENTED BY AWS}

AWS Innovation with Experian

In this Innovation Ambassadors episode, Experian takes center stage as we delve into their dynamic shift to a cloud-first approach. Hosted by Sara Armstrong, this episode features insights from Marcio Felix Goncalves, Jo Kennedy, and Jesse Mulvogue of AWS.

Discover how Experian, in collaboration with the AWS Innovation team in Australia, transformed their strategy, adopting the working backwards methodology to amplify brand experiences for consumers through the AWS Cloud.

Listen on your preferred podcast platform or YouTube 🎙️🎧

3 major tech topics

💸 Budgets: Despite predicted growth in IT budgets for 2024, startups face ongoing challenges from the lingering impact of a tough 2023, as they grapple with proving their value, extended sales cycles, and increased competition for enterprise budgets in a new era of financial constraint.

🚀 Crypto: Robinhood is doubling down on crypto, targeting a broader audience with new features despite a Q3 dip in revenues; committed to a long-term vision, it expands its crypto-trading to the EU after launching in the U.K., emphasizing resilience through a diversified business model.

👀 Culture: Activision Blizzard will pay a landmark $47 million to settle California's gender discrimination claims, addressing unequal pay and a "sexist culture"; the historic settlement offers potential legal closure to scandals impacting major games like Call of Duty and World of Warcraft, compensating women who worked in California between 2015 and 2020.

The IPO rebound faded just as quickly as it began

The IPO comeback, which started gaining momentum, hit a speed bump with the unexpected Israel-Hamas conflict in October, putting a pause on the anticipated return until 2024. This interruption is significant because companies are eager to go public, and investors are eager to capitalize on the market.

Here's the lowdown: Despite expectations, a few companies like Arm, Instacart, and Klaviyo took the plunge and went public in the fall, contributing to a total of 107 U.S. IPOs this year, raking in $19.4 billion. While this is an improvement from 2022, it's comparable to the sluggish IPO market of 2016, the second slowest year in the past decade.

What's catching our eye: General Atlantic, an investment firm, recently confidentially filed for an IPO, signaling readiness for the right moment, though timing remains uncertain. Others like Shein, Apex Fintech, and Panera Brands have also confidentially filed, biding their time in the IPO wings.

Everything you know about the podcast industry is a lie

Recent insights challenge the prevailing narrative that the podcast industry has peaked. Amidst major tech company setbacks, including layoffs and show cancellations, these learnings argue for a broader perspective on the overall health of the podcasting landscape.

1. Industry setbacks: Recent challenges faced by a leading tech company, such as layoffs and canceled shows, are presented. The focus is on debunking the notion that these issues accurately represent the entire podcasting industry.

2. Independent creator realities: The narrative underscores the struggles of non-major podcast creators, highlighting that their experiences differ from those associated with well-funded entities.

3. Venture capital dynamics: Broader trends in the creator economy are discussed, emphasizing the industry's navigation through pitfalls associated with unsustainable models driven by venture capital. A call is made for prioritizing sustainability over relentless growth.

4. Worker-owned outlets: The emergence of worker-owned media outlets is spotlighted as a response to the shortcomings of traditional media conglomerates. This trend signals a shift towards more sustainable and decentralized models in the industry.

TikTok asks advertisers to spend 50% more next year

In a bold move, TikTok is urging top advertisers to up their spending by 50-150% next year, setting the stage for a clash with TV networks and Meta Platforms. The Chinese-owned video app's confidence is palpable, driven by its surging popularity among advertisers targeting the coveted young demographic and its expanding overall reach.

• Audacious spending requests: TikTok's ask for a minimum 50% spending increase from advertisers, including major players like WPP and Omnicom, has raised eyebrows. Ad executives are skeptical of the feasibility of such aggressive demands in a relatively soft ad market.

• Strategic ad dominance: Despite concerns, TikTok's audacity paid off this year, with ad revenue poised to hit nearly $20 billion, nearly double the previous year. The platform eyes a larger slice from Meta Platforms, projecting a potential $30 billion in revenue for 2024 if advertisers acquiesce.

TikTok's push for ad supremacy signals a fierce competition with industry giants. While questions linger about data privacy and content safety, TikTok's established foothold in the digital ad space raises speculation about its future growth trajectory. As it explores innovative ad formats and deal structures, TikTok's bid for market dominance could reshape the dynamics of online advertising.

Articles & links we dig

📈 Why these 30 web3 founders are optimistic about 2024.

🤖 10+ signs of a mediocre hire.

📲 Deal Dive: Training the workforce for the clean energy transition.

👉 An Andreessen-backed startup bets on VC’s expansion.