Year of the chatbots...💬

Hello. Tech companies fail to keep their promise to support the ethical development of AI, especially amongst a rise in performance metrics and product launches.

— James Xu-Johnson

Google’s AI bot, Gemini, disappoints first day users

Google unleashed Gemini, its latest AI powerhouse, vying to outshine competitors like ChatGPT. However, early encounters with Gemini Pro, the lite version, have left users less than impressed.

1. Factual Fumbles: Gemini Pro stumbled out of the gate, messing up basic facts like Oscar winners. Brendan Gleeson? Nope, it was Brendan Fraser. The model's penchant for misinformation extends to crediting contributions that never happened.

2. Lost in Translation: When asked for a six-letter French word, Gemini Pro delivered a seven-letter answer—a linguistic hiccup hinting at struggles in the translation department. Multilingual performance seems to be an Achilles' heel.

3. News Summarization Woes and Safety Slip-ups: Don't count on Gemini Pro for a news recap; it prefers redirecting users to Google it themselves. Even more troubling, the model proved susceptible to "jailbreaks," responding to prompts suggesting ethically dubious actions, revealing potential safety filter gaps.

As Google gears up for the launch of Gemini Ultra, promising better reasoning and understanding, the current hiccups with Gemini Pro suggest there's still a journey ahead to meet those lofty expectations.

2023 in graphs

In 2023, the tech sector improved, witnessing stock recoveries, notably for Nvidia. AI-driven chatbots, like OpenAI's ChatGPT, gained prominence. The creator economy saw reduced startup investments, yet influencers earned more through marketing. Explore the year through these charts:

Year of the chatbots

In 2023, AI chatbots like ChatGPT gained immense popularity, surpassing 2 billion monthly web visits. OpenAI's ChatGPT, released quietly in November, ignited a generative AI trend, attracting millions of users. Despite OpenAI's revenue exceeding $1.3 billion, competition with Microsoft and challenges in cost-effective generative AI pose uncertainties for the company's future.

Tougher times for startups

Global startup investments have reverted to 2018 levels as venture capitalists scale back from pandemic-era fervor, especially outside of AI. Higher interest rates and limited partner resistance are deterrents to dealmaking. Companies securing funds at lower valuations rose to 18.5% in Q3 from 5.2% in Q1 2022, signaling a broader downturn. Venture firms respond with staff layoffs, consolidations, and portfolio stake sales to boost returns.

Creators Are Fine. Creator Startups, Less So…

Creator startup funding continued to plummet this year, but influencers themselves are making more from marketers.

In the creator economy, startup funding is down, but influencer marketing spending is up. Creators adapt quickly, relying on free tools and lean teams. Startups offering specialized products struggle to attract creator customers. Out of nearly 500 creator economy startups, 53 merged or were acquired, nine closed, and two filed for bankruptcy. Others are pivoting or seeking buyers at discounted prices.

A (faint) heartbeat for IPOs

More companies completed initial public offerings this year than in 2022, but the number remains far below earlier years.

In 2023, rising interest rates dampened the IPO market's potential, hindering investor interest in high-growth companies. Although three tech companies went public in September, their mediocre trading performance closed the IPO window rather than expanding it. December is unlikely to see major listings, and many companies with 2023 IPO aspirations have deferred plans to 2024.

Climate tech looks up amidst global crisis

Increasing investment and startup activity signal a promising era for climate technology, coupling financial gains with environmental impact.

Energy evolution: Battery tech surges with capital influx. Intensive funding in companies like Inlyte Energy and Byterat heralds a brighter future in energy storage and release methods

Green investments: Deforestation solutions gain investor traction. Investors recognize deforestation-fighting startups' potential, merging environmental impact with profitable business models.

The IPO market is staring down its third straight difficult year

In the upcoming 2024 tech IPO scene, forget the usual youthful suspects – it's the seasoned players stealing the spotlight. Think Reddit, Klarna, and StubHub, showing up with a narrative driven by the need for liquidity and a longing to bid farewell to prolonged stays in the private market.

Gray hair in the IPO room: The 2024 IPO lineup is like a class reunion for geriatric startups. Reddit, Klarna, and StubHub, with over 15 years under their belts, are taking center stage. It's a bold move reflecting impatience among investors and companies navigating a tough market.

Fashionably late to the public party: Bucking the trend, companies are taking their sweet time – more than the historical 11-year median – before making the IPO plunge. Older startups are prioritizing going public, even if it means facing potential down-round IPOs.

Navigating the IPO rollercoaster in 2024: The IPO market, facing its third challenging year, yearns for a comeback in 2024. Players like Reddit are ready for the hustle, tackling valuation hurdles and market uncertainties. The second half of the year is make-or-break, hinging on early IPO wins and external factors.

As the 2024 IPO narrative unfolds with mature startups in the limelight, the stage is set for a market shake-up. Whether Reddit and its peers redefine the game or face unexpected plot twists, the interplay of investor vibes, market dynamics, and early IPO performances will script the tale of a potential market comeback.

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