Startups

Daily Crunch: To take the friction out of consumer messaging, more companies are entering the Matrix

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Welcome back to your daily digest of TechCrunch goodness. It is my last day with you (you’re welcome!), so Christine will be back in the Daily Crunch seat on Tuesday. Haje will not be back just yet because he is heading to Vegas as part of the team covering CES. Speaking of CES, Brian raised the curtain on what we can expect from its first full-fledged production since before COVID.

Bye for now, folks. Safe and Happy New Year to you all. — Henry

At the top

  • Into the Matrix: No, not that Matrix. We’re talking about the open standards-based comms protocol called Matrix that Paul went deep on. Its network doubled thanks in part to increased use by enterprises and government. Reddit is also having a go, experimenting with it for its chat feature.
  • For the fusion: Tim took a look at five startups primed to benefit from the recent breakthroughs in fusion. [TC+]
  • Alt-ChatGPT: In the wake of the response to OpenAI’s ChatGPT comes an open source equivalent. It’s called PaLM + RLHF (rolls right off the tongue, eh?), but Kyle writes that it isn’t pre-trained, which means good luck running it.
  • The Meta eyes have it: Amanda writes that Meta is getting into the eyewear business with its purchase of the Netherlands-based, smart eyewear company Luxexcel.
  • Book tracking: Aisha rounded up a list of five apps that you can use to track all that reading you’re planning to do once the clock strikes 2023.
  • Netflix vs. Hulu: Perhaps you’ve decided to cut a streaming service or two from your lineup in light of their continued price hikes. Lauren took a look at the features of Netflix and Hulu to help you make a decision.

What to look for in a term sheet as a first-time founder

Businesswoman in a full frame complex maze
Image Credits: syolacan (opens in a new window) / Getty Images

Silicon Valley reporter Connie Loizos interviewed three seasoned VCs to get their best advice for novice entrepreneurs. She asked them:

  • Why should you know what’s going to be in a term sheet before you see it?
  • Which mechanism is best to use at the outset?
  • How much equity is distributed at each level of early-stage fundraising?
  • What’s a red flag in a term sheet?
  • How should founders think about valuation when it comes to that first term sheet?

What to look for in a term sheet as a first-time founder

TechCrunch+ is our membership program that helps founders and startup teams get ahead of the pack. You can sign up here. Use code “DC” for a 15% discount on an annual subscription!

Looking back and looking ahead

We rounded up TC+ venture capital stories from a year that unfortunately saw a lot of downs. And here are a few more favorites for good measure:

Zack and Carly took a look back at how law enforcement cracked down on cybercriminals this year. They examine the efforts of both breachers and cops to bring justice.

Indian startups were flush with cash with record investments. Now, Manish writes, the ecosystem is struggling with tightening funding purses, layoffs and disappointing public debuts.

More TechCrunch

Fisker is just a few days into its Chapter 11 bankruptcy, and the fight over its assets is already charged, with one lawyer claiming the startup has been liquidating assets…

The fight over Fisker’s assets is already heating up

A hacker is advertising customer data allegedly stolen from the Australia-based live events and ticketing company TEG on a well-known hacking forum. On Thursday, a hacker put up for sale…

Hacker claims to have 30 million customer records from Australian ticket seller giant TEG

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Elon…

Tesla makes Musk best-paid CEO of all time and Fisker bites the dust

Dot is a new AI companion and chatbot that thrives on getting to know your innermost thoughts and feelings.

Dot’s AI really, really wants to get to know you

The e-fuels startup is working on producing fuel for aviation and maritime shipping using carbon dioxide and other waste carbon streams.

E-fuels startup Aether Fuels is raising $34.3 million, per filing

Fisker was facing “potential financial distress” as early as last August, according to a new filing in its Chapter 11 bankruptcy proceeding, which the EV startup initiated earlier this week.…

Fisker faced financial distress as early as last August

Cruise, the self-driving subsidiary of General Motors, has agreed to pay a $112,500 fine for failing to provide full information about an accident involving one of its robotaxis last year.…

Cruise clears key hurdle to getting robotaxis back on roads in California

Feel Therapeutics has a pretty original deck, with some twists we rarely see; the company did a great job telling the overall story.

Pitch Deck Teardown: Feel Therapeutics’ $3.5M seed deck

The Rockset buy fits into OpenAI’s broader recent strategy of investing heavily in its enterprise sales and tech orgs.

OpenAI buys Rockset to bolster its enterprise AI

The U.S. government announced sanctions against 12 executives and senior leaders of the Russia-based cybersecurity giant Kaspersky. In a press release, the Department of the Treasury’s Office of Foreign Assets…

US government sanctions Kaspersky executives

Style DNA, an AI-powered fashion stylist app, creates a personalized style profile from a single selfie. The app is particularly useful for people interested in seasonal color analysis, a process…

Style DNA gets a generative AI chatbot that suggests outfit ideas based on your color type

Rates of depression, anxiety and suicidal thoughts are surging among U.S. teens. A recent report from the Center of Disease Control found that nearly one in three girls have seriously…

Khosla-backed Marble, built by former Headway founders, offers affordable group therapy for teens

Cover says what sets it apart is the underlying technology it employs, which has been exclusively licensed from NASA’s Jet Propulsion Laboratory.

A new startup from Figure’s founder is licensing NASA tech in a bid to curb school shootings

Spotify is introducing a new “Basic” streaming plan in the United States, the company announced on Friday. The new plan costs $10.99 per month and includes all of the benefits…

Spotify launches a new Basic streaming plan in the US

Photographers say the social media giant is applying a ‘Made with AI’ label to photos they took, causing confusion for users.

Meta is tagging real photos as ‘Made with AI,’ say photographers

Website building platform Squarespace is selling Tock, its restaurant reservation service, to American Express in a deal worth $400 million — the exact figure that Squarespace paid for the service…

Squarespace sells restaurant reservation system Tock to American Express for $400M

Featured Article

Change Healthcare confirms ransomware hackers stole medical records on a ‘substantial proportion’ of Americans

The February ransomware attack on UHG-owned Change Healthcare stands as one of the largest-ever known digital thefts of U.S. medical records.

13 hours ago
Change Healthcare confirms ransomware hackers stole medical records on a ‘substantial proportion’ of Americans

Google said today that it globally paused its experiment that aimed to allow new kinds of real-money games on the Play Store, citing the challenges that come with the lack…

Google pauses its experiment to expand real-money games on the Play Store

Venture firms raised $9.3 billion in Q1 according to PitchBook data, which means this year likely won’t match or surpass 2023’s $81.8 billion total. While emerging managers are feeling the…

Kevin Hartz’s A* raises its second oversubscribed fund in three years

Google is making reviews of all your movies, TV shows, books, albums and games visible under one profile page starting June 24, according to an email sent to users last…

Google is making your movie and TV reviews visible under a new profile page

Zepto, an Indian quick commerce startup, has more than doubled its valuation to $3.6 billion in a new funding round of $665 million.

Zepto, a 10-minute delivery app, raises $665M at $3.6B valuation

Speak, the AI-powered language learning app, has raised new money from investors at double its previous valuation.

Language learning app Speak nets $20M, doubles valuation

SpaceX unveiled Starlink Mini, a more portable version of its satellite internet product that is small enough to fit inside a backpack.  Early Starlink customers were invited to purchase the…

SpaceX debuts portable Starlink Mini for $599

Ali Rathod-Papier has stepped down from her role as global head of compliance at corporate card expense management startup Brex to join venture firm Andreessen Horowitz (a16z) as a partner…

Brex’s compliance head has left the fintech startup to join Andreessen Horowitz as a partner

U.S. officials imposed the “first of its kind” ban arguing that Kaspersky threatens U.S. national security because of its links to Russia.

US bans sale of Kaspersky software citing security risk from Russia 

Apple has released Final Cut Pro for iPad 2 and Final Cut Camera, the company announced on Thursday. Both apps were previously announced during the company’s iPad event in May.…

Apple releases Final Cut Pro for iPad 2 and Final Cut Camera

Paris has quickly established itself as a major European center for AI startups, and now another big deal is in the works.

Poolside is raising $400M+ at a $2B valuation to build a supercharged coding co-pilot

The space industry is all abuzz about how SpaceX’s Starship, Blue Origin’s New Glenn, and other heavy-lift rockets will change just about everything. One likely consequence is that spacecraft will…

Gravitics prepares a testing gauntlet for a new generation of giant spacecraft

LTK (formerly LiketoKnow.it and RewardStyle), the influencer shopping app with 40 million monthly users, announced on Thursday the launch of a free direct message tool for creators to instantly share…

Influencer shopping app LTK gets an automatic direct message tool

YouTube appears to be taking a firm stance against Premium subscribers who attempt to use a VPN (virtual private network) to access cheaper subscription prices in other countries. This week,…

YouTube confirms crackdown on VPN users accessing cheaper Premium plans