Meta records record profits, Matt Mullenweg admits Automattic is now short-staffed, and never ever say "San Fran"

StrictlyVC Newsletter Briefing - October 31, 2024 Key Themes: AI advancements and investments: This issue highlights the growing influence of AI across various sectors. Meta attributes increased user engagement to AI, while Affinity emphasizes the rising adoption of AI by VC firms. Funding Landscape: A diverse range of startups across industries secured funding, highlighting robust investor confidence. Workplace Dynamics: The newsletter showcases notable workplace developments, including Automattic's staffing challenges and Dropbox's layoffs. Important Facts and Ideas: AI & Tech Meta's Q3 Profits Soar: Meta recorded a 35% year-over-year increase in Q3 profits, fueled by AI-driven user engagement. However, analysts express concerns about Meta's significant investments in AI and data centers. Automattic Faces Staffing Crisis: Following CEO Matt Mullenweg's controversial stance on WP Engine, Automattic experienced a mass employee exodus. Mullenweg admitted the company is "very short-staffed," further escalating the situation. AI-powered tools gain traction: Startups like Regal (AI for contact centers) and iGent AI (coding automation) secured significant funding, highlighting the increasing demand for AI-driven solutions. Perplexity CEO Dodges Plagiarism Concerns: Perplexity, an AI search engine, faces legal challenges related to plagiarism. CEO Aravind Srinivas notably avoided defining "plagiarism" during a TechCrunch Disrupt interview. Funding and Investments Major Funding Rounds: Notable funding rounds include DoorLoop ($100M Series B), Sana ($55M at a $500M valuation), and Neara ($31M Series C). BBG Ventures Raises Fund II: Focused on startups founded by women and diverse entrepreneurs, BBG Ventures secured $60 million for its second fund. Industry Shifts Dropbox Announces Layoffs: Citing increased competition, Dropbox is downsizing its workforce by 20%. SpaceX Ventures into Spy Satellites: Raising concerns among Pentagon officials, SpaceX is expanding into the spy satellite business, potentially creating a monopoly and raising geopolitical concerns due to Elon Musk's international connections. Quotes: Matt Mullenweg on Automattic's staffing: "very short-staffed" Mark Zuckerberg on Meta's AI infrastructure: "bigger than anything that I've seen reported for what others are doing" Other Highlights: Netskope's Planned IPO: Cloud security company Netskope, having raised $1.4 billion in venture capital, is preparing for a public offering in the coming year. Visa and Coinbase Partnership: The collaboration simplifies fund transfers between Visa cards and Coinbase accounts, potentially boosting cryptocurrency adoption. Detours and Retail Therapy The newsletter includes lighthearted sections like "Detours," featuring amusing news snippets, and "Retail Therapy," highlighting extravagant purchases like a $3 million (non-street-legal) Batmobile.