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Key advice for a financing round
Plus: Me, myself and AI
Melanie Gabriel & Christian Woese
October 01, 2024 • Read time: 11 minutes
Dear hustlers, founders, operators and visionaries,
A martial arts hardened Mark Zuckerberg presented the “most advanced glasses the world has ever seen”, declaring AR is back. Yet, while we love a tech spectacle, we’re in wait-and-see-mode — much like OpenAI’s rumoured blockbuster fundraise that everyone’s talking about but no one’s confirmed. Adding to the suspense, CTO Mira Murati has bowed out, leaving Sam Altman to tackle AGI solo if this trend of senior exits continues. Don’t be too sorry for him, word on the street is he’ll get a 7% stake of the company. Follow the Gradient and stay tuned.
PS: Has this e-mail been forwarded to you? Sign up here.
Your talk track for this week’s cocktail party
$100m for a new German AI unicorn?
Europe may still be catching up on AI, yet there is new hope on the horizon: German AI startup Black Forest Labs is reportedly preparing a $100m round at a $1bn valuation. The firm can already count blockbuster names like Elon Musk’s Grok AI chatbot to its clients, which use its text-to-image model Flux.1. Led by early researchers of Stability AI, a state-of-the art imagine diffusion model provider, the secretive venture emerged from stealth earlier this year with a $31m financing round led by heavyweights such as a16z, Lightspeed and Y Combinator’s Garry Tan. Are there flights between Freiburg and San Francisco?
Salesforce: ramping up for the age of AI?
Salesforce just snapped up Israeli startup Zoomin Software for $450m, only weeks after acquiring Own Co. This move signals Salesforce’s big bet on AI-powered CRMs. Zoomin’s platform simplifies unstructured data, making it more AI-friendly—a key step towards AI-native CRMs, the next big thing in B2B SaaS (remember “Death of a Salesforce"?) - will Salesforce buy its way out?
Remember when Elon Musk went head-to-head with Brazilian authorities and Telegram’s founder got arrested for refusing to share criminal account data? It’s now 1:0 for the authorities. Telegram has updated its privacy policy to disclose IP addresses and phone numbers of suspected criminals. After his arrest in France, CEO Pavel Durov is out on bail and can't leave the country. Meanwhile, Elon Musk’s X has complied with Brazil’s Supreme Court after weeks of defiance. Tech power games just keep getting wilder!
What do you meme?
“What can be, unburdened by what has been”
Food for thought
2021 feelings in AI land
Companies like Groq, Perplexity, and Glean are raising money at light speed pace—sometimes back-to-back rounds. While some AI startups secure insane valuations with little to no revenue, traditional startups growing at 40% struggle to raise. Investors are racing to grab a piece of the AI pie, but is it hype or the future? The pressure’s on to prove that these cash-burning companies can turn a profit. Stay tuned for the verdict!
Instagram: Me, myself and AI
Meta announced it is testing new features which will show AI-generated content in your personal feed, based on your interests and preferences. Sounds weird? It gets weirder: some of the content may incorporate your own face. We always hoped to see ourselves on the top of Matterhorn in our own IG feed…
Uber: your new Amazon?
We know Uber from cab rides, from delivering food and from experimental stuff on driverless cars. But delivering shopping items? Yes, its ambitions are high. Will Uber become the US version of Asian Super Apps like WeChat and Grab? See this interesting read here.
Mark your calendar
Germany
Bits & Pretzels, 29 Sep-01 Oct [Program]
Lithuania
Startup Fair in Vilnius, 3 Oct [Program]
Netherlands
Amsterdam Founders Table, 3 October [Register]
Emerce Day in Amsterdam, 3 October [Program]
Romania
How to Web in Bucharest, 2-3 Oct [Program]
Switzerland
AI+ x Summit in Zurich Oerlikon, 3-4 October [Program]
Melanie will also host a live panel together with two deeptech VC partners on Thursday Oct 3 at 4pm on the Innovator Stage. Drop by and say hi! 👋🏽
UK
Sifted Summit in London, 2-3 September [Program]
Don’t forget to apply Amy’s insights - if you haven’t yet, check out the main highlights of past week’s podcast with Amy:
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Smart advice
Fundraising this autumn? These 6 tips should help:
1️⃣ Timing is everything: Plan your raise to match commercial momentum. Aim to close by November to avoid the holiday slump.
2️⃣ AI or bust: VCs are obsessed with AI. If you’re not an AI startup, focus on showing massive revenue potential.
3️⃣ Know your numbers: Investors expect solid growth and retention metrics. Be ready to explain customer acquisition costs and financials in detail.
4️⃣ Perfect your pitch: Practice with experienced founders or angels to perfect your story.
5️⃣ Show off your team: Prove you can attract top talent—it's a big green flag for investors.
6️⃣ Look beyond VCs: Explore ESG funds, family offices, and niche investors for funding.
One good read (?)
Amazon is a highly controversial company and recently made headlines by fully banning work from home. See the CEO’s original message - what is your take?
Join the entrepreneurial journey
Are you ready to take your first steps into the startup ecosystem or seeking an exciting new opportunity? Below is a curated list of startup job openings across Europe for you to explore.
💡💡 Show your future employee that you go the extra mile and let them know directly why you will be the perfect fit! We have added a link to the Hiring Manager’s LinkedIn where we think this helps. Do things differently - message them! 💡💡
Internships
CFO Associate Intern [📍Munich], Food production, Planet A Foods [Apply]
Marketing Intern [📍Berlin], Fintech, Bunch [Apply]
Business Performance Analyst Intern [📍Paris], Secondhand, Vestiaire Collective [Apply]
Growth Marketing Intern [📍Paris], FinTech, Payflows [Apply]
Working student [📍Berlin], FinTech, Scalable Capital [Apply]
Customer Success
Customer Success Manager [📍Remote], Fraud Detection, Sift [Apply]
Account Manager [📍Remote, Germany], Data Platform, Cognite [Apply]
HR & Ops & Finance
Finance Manager[📍Lausanne], Semiconductor, Corintis [Apply, Hiring manager]
Product Operations Analyst [📍Berlin], Transportation, Omio [Apply]
Marketing
Product Marketing Manager [📍Remote, Germany], Engineering Simulation Platform, Simscale [Apply]
Product Marketing Manager [📍London], FinTech, GoCardless [Apply]
Product & Strategy
(Senior) Product Manager in Growth / SaaS [📍Remote, Germany], Car Subscription, FINN [Apply]
Senior Product Manager, Discovery [📍Remote], Podcast Platform, Podimo [Apply]
Senior Product Manager [📍Remote], Health Tech, Zoe [Apply]
Director of Product [📍Remote], Workplace Management, Deskbird [Apply]
Product Manager [📍London], AI, Writer [Apply]
Sales
Sales Director [📍Remote, Germany], Conversational AI, Parloa [Apply]
Sales Manager - Inbound Sales [📍Hybrid, Berlin], Real Estate, Matera [Apply]
Sales Enablement Manager [📍London], HR Tech, workable [Apply]
🫶 Melanie & Christian
Each week, a lot of work goes into the Follow the Gradient project to help you navigate this crazy jungle called entrepreneurship. Help us grow this community and we’ll make sure that you or your project gets a shoutout in the weekly newsletter!
The Gradient in maths is the direction with the most potential to improve. With Follow the Gradient, we aim to equip you with hands-on insights and real-life learnings to drive your biggest improvements, no matter where you start from: as a first-time founder, operator, solopreneur, aspiring student, or simply a curious mind.
Follow the Gradient and transform your trajectory.
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