 |
|
|
|||||
AI startups are the belle of the VC funding ball, and its coming at the expense of pretty much every other type of company. Thats a main takeaway from a report published by Silicon Valley Bank on Tuesday. That report found that roughly 40% of VC funding in the U.S. last year came from venture funds that list AI as a focus. Those comprise more than 15% of U.S. VC fundsa number that has doubled over the past five years. Put all together, this reflects not only the investor enthusiasm around the space, but also the funds required to properly deploy into capital-intensive hypergrowth AI startups, the report reads. And with AI companies sucking up a good percentage of overall VC funding, its left other types of companies battling it out for a smaller piece of the pieincluding firms in the infrastructure, applications, and cybersecurity segments of the enterprise software sector. Perhaps relatedly, the creation of unicorn companiesstartups that reach a valuation of at least $1 billionhas slowed in recent years. During 2021, for example, there were 138 enterprise software unicorns created. Last year, there were only nine. And none so far this year. The report also points out the rise of zombiecorns, referring to unicorn companies that have poor revenue growth and little hope of raising more money. In effect, for some of these companies, IPO hopes are low, the climate isnt ideal for acquisition, and its unclear where these companies can turn next for a lifeline. As such, theyre sort of scouring the business landscape, like zombiesnot yet dead, but with a fading pulse. Its unclear if the overarching economic conditions will improve in a way that could provide some hope to the zombiecorns out there, and other startups outside of the AI space looking to raise money. While the U.S. hasnt seen catastrophic economic numbers yetGDP, unemployment, and other such numbers have in recent months remained relatively rosyconsumer sentiment is down, and uncertainty abounds due to President Trumps tariffs and other policies. That has many investors waiting on the sidelines for an inkling of whats next. In the meantime, startups may feel the crunch as they hope to go public or raise another round of financing. Investors will likely still invest, the report notes, but theyll be much more selective given the overall environment. We may see a flight to quality where investors continue to be extremely selective in their capital deploymentpotentially making it even harder to raise the next round, the report reads. Those left in the dust will need to seek an exit.
Category:
E-Commerce
Elon Musks SpaceX employees voted this month to make their small community on the southeastern tip of Texas its own city, with a mayor and city commissioners. But the rest of the tech billionaires neighbors near the newly incorporated Starbase in rural Cameron County, where he lives in a home on the outskirts of Brownsville, are not so thrilled with his activities as a businessman and now as head of the Trump administrations Department of Government Efficiency. Residents have long complained about the environmental impact of SpaceXs rocket launches, which rain debris like sheet metal and pieces of concrete on beaches and have caused wildfires. Now, Musks DOGE is having a major impact in the county and the rest of South Texas, an area with higher rates of poverty and less access to resources than much of the rest of the statethe initiatives budget cutbacks have resulted in reduced funding for area food banks, fewer staffers at VA facilities to provide health care to veterans, and the termination of grants for students seeking internships, among other cuts. Weve been forcibly made into Elon Musks backyard against our will, said Bekah Hinojosa, a local environmental activist. Everyone in this region is constantly in survival mode, no matter whos in office. Right now I dont have health care, for example. Most of us are already dealing with problems. And now to have these new problems added to the existing problems. Rene Medrano, a longtime Brownsville resident who retired as the high schools longtime football coach with seven trips to the playoffs, said Musk was welcomed when he first arrived in the area due to the influx of jobs and economic activity. But as SpaceX grew and rocket launches started damaging the environment, often cutting off access to local beaches, he grew more critical. People are up in arms because of the access to the beach, he said. He hears from neighbors about the local impacts of DOGE. I know its hurting people and I know its affecting people, Medrano said. And I know its going to continue if they keep cutting the way theyre cutting. Its very obvious. How can it not affect you? The Food Bank of the Rio Grande Valley serves meals to 88,000 people every week in Cameron, Willacy, and Hidalgo counties, with half of its funding coming from federal programs. Recently, 23 truckloads of food on their way to the food bank were cancelled due to DOGE cuts at the U.S. Department of Agriculture. This cancellation could not have come at a worse time, with the recent flooding event that we experienced and the summer vacation at our doorstep, food bank official Omar Rodriguez told ValleyCentral.com. The food bank helps a lot of people in the valley, said Hinojosa, who said she worked as a volunteer there during the pandemic. There are always long lines outside, especially now after the flooding. A lot of people are hungry. A White House official told Capital & Main that the USDA has not and will not lose focus on its core mission of strengthening food security, supporting agricultural markets, and ensuring access to nutritious foods. The official noted that in March, the agency released over half a billion in previously obligated funds for Local Food Purchase Assistance (LFPA), LFPA for Tribes, and the Local Food for Schools program to fulfill existing commitments and support ongoing local food purchases. Elsewhere in the region, just a week after 20 students at the University of Texas Rio Grande Valley learned theyd be part of a museum internship program that included funds for housing, transportation, and their work, they found out the federally funded grant had been terminated due to DOGEs cuts to the Institute of Museum and Library Services (IMLS), an independent federal agency. We all felt devastated, Stephanie Álvarez, a professor of Mexican American Studies at the school, told myRGV.com. Because students dont have this opportunity We were just stunned because we put a lot of effort into it but also because all of these students expecting to go have these internships and that possibly doesnt exist anymore unless we find at least $60,000. And changes at the U.S. Department of Veterans Affairs, where DOGE plans to cut about 15% of the workforce, are also having an impact in South Texassuch as at the South Texas Veterans Health Care System in San Antonio, which is considered the fastest-growing VA network in the country. In February, the agency fired workers at hospitals and clinics across the state, including in San Antonio, Austin, and Houston, though it rehired them in the wake of a lawsuit filed by multiple unions representing federal employees. And now its slowing down the hiring of new employees even as the number of veterans in the region who need health care keeps growing, say veterans. A spokesperson for the VA said, Were going to maintain VAs mission-essential jobs like doctors, nurses and claims processors, while phasing out non-mission essential roles like DEI officers. The savings we achieve will be redirected to veteran health care and benefits. In an email to Capital & Main, White House spokesperson Anna Kelly replied: DOGEs work to eliminate waste, fraud, and abuse is streamlining federal services to the benefit all Americansespecially our Veterans, who have endured decades of VA bureaucracy and bloat that has hindered their ability to receive timely and quality care. President Trump is restoring accountability to taxpayers, which ultimately strengthens federal programs for those in need. Were hurting, said Don Edge, a Navy vet and AFL-CIO official based in San Antonio who represents many workers at the agency. Ive got grown men and women coming into my office and theyre in tears, saying that they cant keep up with the demand. The cuts of probationary employees and reduced hiring of new employees have resulted in extended waiting times and relocation of veterans to facilities far from their homes, said Edge. Im a veteran myself, and to not be able to have services or have services delayed because of these cuts is horrible. As an example, Edge cited Villa Serena, a treatment center for veterans with mental health or substance use issues. They cut the number of beds by 35%-40%, and theyre sending the patients hundreds of miles to other VA facilities in Waco and Templewhere theyre on their own, without friends and family nearby, while they struggle with these issues. A spokesperson for the VA said that the facility decreased beds at Villa Serena from 66 to 45 to offer more recovery-oriented care for veterans seeking treatment for substance use isorders. She added: By reducing the amount of available beds, space has been converted into a small gym, meditation room, and an admission waiting area allowing more privacy during the admission process. The spokesperson said that there is no data supporting claims of extended wait times or wait times lasting 3-4 months, and if you report otherwise, you will be spreading disinformation. Edge insisted that waiting times have been worse since Trump took office. He added, If I was to call right now and ask for a dental appointment, I dont know when Id have it. To highlight the urgency of the issue and the need for services, Edge said that a veteran with mental health issues killed himself with a gunshot to the head outside the doors of the Audie Murphy Memorial Veterans Hospital in San Antonio a few weeks ago, which reminded him of a spate of suicides on VA campuses in 2017 and 2018 during earlier rounds of budget cuts. Ive been here for 22 years and this is the worst its ever been. This piece was originally published by Capital & Main, which reports from California on economic, political, and social issues.
Category:
E-Commerce
The world’s sources of critical minerals are increasingly concentrated in just a few countries, most notably China, leaving the global economy vulnerable to supply cutoffs that could disrupt industry and hit consumers with higher prices, a report said Wednesday.The Paris-based International Energy Agency’s report looked at the availability of minerals and metals that may be small in quantitybut large in impact when it comes to shifting the economy away from fossil fuels toward electricity and renewable energy.It found that for copper, lithium, cobalt, graphite and rare earth elements, the average market share of the three top producing countries rose to 86% in 2024 from 82% in 2020.China is the leading refiner for 19 out of 20 strategic minerals studied in the report, and has an average share of around 75%. Indonesia showed strong growth in nickel, a key component in making steel and batteries for electric vehicles.The current trend toward export restrictions and trade disputes increases concerns, the IEA said.“Critical mineral supply chains can be highly vulnerable to supply shocks, be they from extreme weather, a technical failure or trade disruptions,” said IEA executive director Fatih Birol. “The impact of a supply shock can be far-reaching, bringing higher prices for consumers and reducing industrial competitiveness.”Birol cited the energy crisis in Europe after Russia cut off natural gas supplies over the invasion of Ukraine. Another cautionary tale is the global shortage of silicon-based computer chips during and after the pandemic, which disrupted auto production.“The golden rule of energy security is diversification,” Birol told The Associated Press in an interview. “And it goes beyond energy security, it is also economic security.”Market forces are important in developing new sources but won’t be enough. “There is a need for well-designed government policies” in the form of financing and other measures, he said.China is a massive global source of critical minerals required for a wide range of goods that includes computer chips, robots, electric autos, batteries, drones, and military equipment. It also dominates the refining and processing of many of these critical minerals, including lithium, cobalt, graphite and more.China has placed export limits of many of these key products and tightened controls on others as President Donald Trump’s trade negotiations escalate, stifling U.S. industry and the nation’s ability to find quick alternatives. Without access to China’s significant reserves, U.S. manufacturers have a harder time competing amid mounting global supply tensions.Trump has made reducing U.S. dependence on foreign critical minerals a core tenet of his first 100 days back in office as part of a national security and economic resilience agenda.This goes beyond China; the Trump administration finalized a rocky deal with Ukraine granting American access to the nation’s vast mineral resources earlier this month.Trump is also looking to expedite deep-sea mining in international waters, much to the chagrin of environmental groups. He called for a boost in the domestic copper industry in a February executive order alongside other calls for the federal government to fast-track new mine permits; has reviewed a minerals proposal from Congo, a conflict-riddled nation also rich with mineral reserves; and attempted to strong-arm Greenland into providing more of its minerals to the U.S.The IEA report said that global markets were well supplied at the moment and that prices in general have fallen. It warned however that planned production of copper, which is essential for electric wiring and power grids, would not keep pace with demand and predicted a 30% shortfall by 2030. David McHugh and Alexa St. John, Associated Press
Category:
E-Commerce
All news |
||||||||||||||||||
|
||||||||||||||||||