Elon Musk Wants Out Of The $44 Billion Twitter Deal
Anonymous sources reveal that the richest man in the world wants to get out of the Twitter deal.
Musk claims that Twitter misled him about the number of bots and spam accounts that are running wild on the platform. On the other hand, Twitter states that fewer than 5% of the accounts on the platform aren’t real people.
The terms of the agreement include a $1 billion fee Musk has to pay if he decides to back out of the deal. It looks like he’s now going through the fine print to find a way out.
In May, Musk tweeted:
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users.”
The public sees the shift as a way for Musk to get out of a badly timed acquisition. But, since the papers have been signed, there’s not much for Musk to do.
The recent change of hearts comes as a surprise since Musk participated in a companywide call with Twitter employees last month.
Elon Musk has been facing personal and business troubles in the past month. It remains to be seen what will happen with his planned and signed Twitter acquisition. We will definitely keep you posted.
North American Startup Funding Drops 25%
The second quarter of 2022 saw a significant drop in startup funding in North America. The funding declined 27% from Q1 of this year and 25% from the year-ago quarter.
Crunchbase data shows that startup investors put $62.7 billion to work in seed through growth stage deals in the just-ended quarter. This fall isn’t surprising since public technology and life science stocks struggle in the markets.
The downturn in the market made investors more hesitant to invest in new startups. We haven’t seen many new public offerings and the pre-IPO rounds aren’t as lucrative as they used to be for investors.
Seed stage investments don’t seem to be as bothered by the market situation. Seed stage investments are down 6% compared to last year’s Q2.
We saw the biggest drop in late stage funding. Investors put $36 billion into late-stage and technology growth rounds in Q2. This represents a 33% decline from Q1 and 30% from the year-ago quarter. It represents the lowest quarterly funding total at this stage since 2020.
All the data shows that Q2 of 2022 wasn’t the best quarter for investors and startups. It remains to be seen what the rest of the year brings for technology and life science startups across all funding stages.
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Google Wants To Help 10,000 Small City Entrepreneurs From India
Google aims to bring together investors, successful entrepreneurs, and programmers that startups from smaller cities can tap into and learn from the best. The ambitious goal is to reach at least 10,000 different startups.
The move isn’t surprising since India represents the third largest birthing ground for startups, with close to 70,000 startups.
The Startup School India will be a 9-week virtual event that will feature chats between Google leaders and startup founders on all things startups.
Positive News For European Startups In June
Europe’s seed-stage startups had a strong June, despite the downturn in tech stocks and later-stage private valuations.
The data shows that 251 companies secured seed stage funding in June. That’s up compared to May (227 companies) and April (184 companies). The companies brought in €595 million. The average round size was €2.3 million, representing a huge jump compared to €1.9 million in May.
The data also shows that fintech isn’t the most dominant sector for seed-round financing anymore. The three biggest rounds of the month were all health tech companies.
Relation Therapeutics, a drug discovery company, raised the biggest seed round in June at $25 million.
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Wearable Tech Startup For Athletes Raises $6 Million In Series A Round
Strive is a wearable tech startup that helps athletes better understand how and why they fatigue.
The company was founded in 2016 by a pair of former athletes. They develop sensors that are embedded into compression clothing and provide data to athletes and coaches.
“As a professional athlete, I’ve used countless technologies to help me find an edge,”
Jonathan Taylor, a star NFL running back who is also an investor, said in a release.
“Strive is the first one that has helped me understand my physiological strain, fatigue, and efficiency, which help me play faster and stronger.”
Strive is currently working with teams and players in the NCAA, NFL, EPL, and MLS, along with the U.S. Military. It has grown from seven full-time employees in 2019 to about 30. Total funding to date is $10.5 million.
Self-Driving Startup AI Argo Layoffs
AI Argo, the self-driving startup, lays off 150 workers from their 2,000 global workforce.
AI Argo is backed by Ford Motor Co. and Volkswagen AG. The startup was founded in 2016 and went through rapid growth since VW invested $2.6 billion in 2020.
Like most tech startups, AI Argo went on a hiring spree during the past two years. This is changing according to the recent layoffs.
The company sent the following email statement regarding the layoffs.
“With incredible growth and progress made in our mission to deploy driverless vehicles, we are making prudent adjustments to our business plan to best continue on a path for success.”