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It’s the most wonderful tiiiiiiime of the yeaaaaaaar … That’s right, we’re back with all the you-can’t-miss companies from the current batch of Y Combinator startups. AI was, not shockingly, the biggest theme, with 86 out of 247 companies calling themselves an AI startup, but we’re reaching bubble territory given that 187 mention AI in their pitches. We have a couple of roundups for you, including the 18 most interesting, and the TechCrunch staff favorites.
Meanwhile, I wrote up an in-depth interview with the founder of Ember, the hot-mug company, about (among other things) how he split his company in half to be able to woo MedTech and life sciences investors.
Most interesting startup stories from the week
Image Credits: PM Images (opens in a new window) / Getty Images
Startups losing money is nothing new, but this week, Devin summarizes why Trump’s Truth Social is different in a few key ways. In a nutshell, the whole thing is playing out like a bad reality TV show, where the plot revolves around hemorrhaging money and the suspense is whether it’ll run out of cash before viewers change the channel. With a debut on Nasdaq as $DJT, thanks to a merger with the desperation darling of the finance world, a SPAC, Trump Media & Technology Group’s (TMTG) financial lifting of the veil reveals a $58 million loss on a meager $4 million in revenue. This isn’t your typical Silicon Valley “burn cash now, profit later” saga; it’s more of a “burn cash now, and that’s it” kind of story. Unlike startups that thrive on VC life support while disrupting industries, TMTG’s lifelines are fraying, with no explosive user growth, no VC sugar daddies, and the unenviable position of being publicly accountable while trying to juggle a business model that seems to repel advertisers like it’s made of antimatter. As the stock flops around lacklusterly, the reality sets in that TMTG’s story might be less about pioneering digital media and more about how to lose friends and alienate advertisers, all while the credits roll on what could be the most expensive episode of “The Apprentice” ever produced.
Chaos in automotive startup land
Tesla’s cybertruck exists now. That’s about the best thing your friendly correspondent can say about this design monstrosity. Image Credits: Darrell Etherington / Getty
Stormy weather continues to be the theme for the movers and shakers of the startup world: Transportation.
Canoo’s 2023 earnings report reads like a tragicomedy. The star of the show? CEO Tony Aquila’s private jet, which cost the company double its entire revenue for the year. In a year where Canoo managed to rake in a meager $890,000 by delivering just 22 vehicles, it simultaneously shelled out $1.7 million to ensure Aquila could jet-set in style. I guess in the fast-paced world of electric vehicles, nothing says “fiscal responsibility” quite like a private jet tab that overshadows your sales, even as the company picks clean the bones of its failed competitors.
Meanwhile, in the land of Fisker, the company momentarily misplaced millions in customer payments amid a frantic scramble to restructure its business model. This financial game of hide-and-seek, which diverted crucial resources from sales to sleuthing, highlights the company’s rather casual approach to tracking transactions, including, in some instances, handing over vehicles on the honor system. Fisker’s attempt to play catch-up with paperwork not only strained its relationship with PwC during annual report preparations but also left the company clueless about its actual revenue, all while teetering on the edge of bankruptcy. So, if you’ve ever felt bad about losing your car keys, at least take solace knowing you didn’t misplace the equivalent of a whole SUV stuffed full of dollar bills, or get yourself into an investigation about why the doors on the cars you manufacture won’t open.
Most interesting fundraises this week
Kidsy’s catalog drew investor interest. Image Credits: Kidsy
Kidsy is the latest brainchild to emerge from the startup nursery. The company is essentially the T.J. Maxx of baby gear, swooping in to save parents from the financial black hole that is raising children by offering discounted, overstocked, and gently used items that were once destined for the landfill. Founded by a former business journalist and a software engineer, Kidsy has quickly become the superhero of the circular economy for baby products, managing to charm investors into an “oversubscribed” pre-seed funding round faster than a toddler can throw a tantrum.
Other unmissable TechCrunch stories …
Every week, there’s always a few stories I want to share with you that somehow don’t fit into the categories above. It’d be a shame if you missed ’em, so here’s a random grab bag of goodies for ya: