Bluesky balloons, Bling's bling, and a VC firm is suing to keep its portfolio company from going public

StrictlyVC Newsletter Briefing - November 20, 2024 Main Themes: AI Investment and Controversy: AI continues to attract significant investment, particularly in data centers, robotics, and even law enforcement tools. However, concerns about AI's use in policing and potential biases are raising questions about ethical implications and accountability. Tech Funding Landscape: Venture capital remains active, with several large funding rounds closing, particularly in AI-related companies. The newsletter highlights both successful startups and emerging trends like API management and online healthcare. Market Volatility and IPO Challenges: While some companies like Databricks are exploring secondary share sales to provide liquidity to employees, others face legal challenges from investors attempting to prevent IPOs. This suggests a complex and potentially uncertain market for tech companies seeking to go public. Key Highlights: Bluesky's Rise: The X competitor, Bluesky, is gaining traction, exceeding 20 million users and topping the Apple App Store charts, signaling a potential shift in the social media landscape. AI in Law Enforcement: Andreessen Horowitz's continued investment in the Las Vegas Police Department for AI-powered bodycams and data analysis tools sparks debate about privacy and surveillance concerns. Sheriff Kevin McMahill believes AI can significantly impact law enforcement, stating, "I really believe that some of this AI here in the new future can have tremendous impact on what has caused significant challenge for me as the sheriff." Noteworthy Funding Rounds: Enfabrica secures $115 million for its AI-focused data center chips, Kong raises $125 million for API management software, and Oura Health garners $75 million for its health-tracking smart ring. Venture Capital Activity: Bling Capital announces a new $270 million fund focused on seed-stage investments in consumer tech, indicating continued interest in early-stage companies. IPO Landscape: Databricks seeks to sell secondary shares at a $61 billion valuation, potentially paving the way for a future IPO, while another unnamed company faces a lawsuit from its VC firm aiming to block its public offering. Notable Exits: AeroVironment's acquisition of BlueHalo for $4.1 billion showcases consolidation in the defense tech industry, with a focus on space technology. Social Commentary: The newsletter highlights articles discussing the limitations of warehouse robots despite advancements, criticism of Apple's new AI-powered text notifications, and the ethical concerns surrounding an adult Disney fan club's expulsion from the theme park. Important Facts: Andreessen Horowitz is actively investing in AI technology for law enforcement, raising ethical concerns. Venture capital firms are deploying significant capital in AI, particularly in applications for data centers, robotics, and healthcare. The IPO market remains active but faces complexities and challenges, with some companies opting for alternative paths to liquidity. Concerns regarding AI bias and the potential for misuse in various sectors are growing. Overall, the newsletter paints a picture of a dynamic tech landscape where AI is a dominant force driving both investment and controversy. While funding remains robust, challenges exist for companies seeking to navigate the IPO market. The ethical considerations surrounding AI implementation are becoming increasingly prominent.