AI predicts the next big industry, and it’s not AI

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This week’s highlights:

• 💰 5 new funds raise capital for founders

• 🛠️ 3 resources to help you close your round

• 🌎 Elite venture capital firm, Sequoia, breaks up

• 🤖 AI predicts the next big industry, and it’s not AI

Capital raised this week

Need drypowder?

Check out which venture funds were raised this week, and see if any of them are aligned with your company.

Antler

This startup accelerator raises $285M “Antler Elevate” fund to invest in growth-stage startups. (link)

Just Climate

They will provide growth capital to climate tech companies that are cutting greenhouse emissions in cement, shipping, industrials, and land use. (link)

AWE Funds

Achieving Women Equity fund closes its first commitment in its new early growth stage India fund. (link)

Yttrium

With a €400M fund II, this Munich based VC will continue to invest in B2B European startups. (link)

Common Magic

Solo GP and ex-Googler, Sarah Drinkwater, raises her $10M fund to invest in pre-seed and seed companies that have community at their core. (link)

Got drypowder?

Pigment

The family office of Mark Zuckerberg and Jack Dorsey, Iconiq, backs Microsoft Excel rival, Pigment, out of France. So often in early-stage venture, the firm bets on the people more than the idea. This is no different. There are a lot of companies trying to take market share from the Microsoft suite, but few have the right founder-product fit to make it succeed. Pigment was founded by both a Google Data Scientist turned VC and the former CTO of Criteo, a public company out of Paris, France. Click here to learn more about their company. (link)

Charm Industrial

Charm receives $100M in funding to put oil back underground. Charm is one of many climate tech companies that have been heavily invested in over the past few years. This remains a very hot sector for venture funding, with no signs of slowing down. What really seperated this company from the pack is their customer contracts. They already removed 6,000 tons of carbon from the atmosphere, but to raise the $100M round they had to show impressive growth to VC’s. They did just that by signing contracts to remove over 140,000 tons of carbon from companies such as JP Morgan. (link)

Weekly Resources

Waalaxy: This tool lets you send customized LinkedIn and email sequences to prospects, whether they be future customers or investors. Download the chrome extension and use our link for a free trial month. (link)

StartEngine: They are one of the largest crowdfunding platforms out there, especially after they merged with Seedinvest last year. Oh, and it’s Mr. Wonderful approved! (link)

The 10-Slide Pitch Deck: Chase Roberts, an investor at Vertex Ventures, explains how to construct the perfect pitch deck that investors will love. (link)

Global Headlines

If you know anything about venture, you know that Sequoia has been a juggernaut in the space for decades, investing in companies such as Apple, Google, Paypal, and Zoom. However, Sequoia Capital has not been as successful in recent years and announced this week that they will be splitting up their venture firm. They are splitting into three separate entities with different names: Sequoia covering the U.S. and Europe, Peak XV Partners covering India and Southeast Asia, and Hongshan covering China.

The move comes after increased geopolitical conflicts between the U.S. and China. With the emergence of AI, some are speculating that the firm felt a conflict of interest between what was best for their LPs and what was best for their country. While investing in AI and chip manufacturing in China may be lucrative, it poses a risk to national security.

The move makes sense for China to be a separate entity, but cutting India out of the equation was a bit strange. India continues to grow at a rapid 6% pace per year, making it a very attractive country to invest in. Only time will tell if the U.S. Sequoia team reenters the market itself and competes with Peak XV. (link)

Battle Royale: The AI Showdown

Last week we asked ChatGPT and Bard how they would sabotage each other if they were stuck on a deserted island. ChatGPT created physical challenges for Bard, while Bard went down the psychological route. As always, we asked you guys which AI had the better answer and the results are in, with Bard winning 2:1. To check out the full results go here. (link)

This week, we were curious about what the models had to say about the future of VC. Specifically, we wondered which industries the models thought would be attractive for investors in the coming decade. Let us know in the Twitter poll which industry you would choose.

Prompt

In your opinion, what is the one industry you would bet on in the next decade?

ChatGPT

While it's challenging to single out one industry as the most promising, the renewable energy sector stands out as a highly promising industry for the next decade. The increasing focus on sustainability, the need to address climate change, and the advancements in renewable energy technologies make it a sector with significant growth potential. As the world transitions towards cleaner and more sustainable energy sources, renewable energy is likely to experience substantial innovation, investment, and market expansion.

Bard

If I had to bet on one industry in the next decade, it would be the healthcare industry. The healthcare industry is constantly evolving, and there are many new technologies and treatments that are being developed all the time. This means that there is a lot of potential for growth in the healthcare industry.

Here are some of the reasons why I believe the healthcare industry is a good investment:

• The aging population: The global population is aging, and this is driving demand for healthcare services. The World Health Organization (WHO) estimates that by 2050, there will be 2.1 billion people aged 60 and older, up from 900 million in 2015. This means that there will be a growing need for healthcare services, such as hospitals, clinics, and nursing homes.

• The rise of chronic diseases: Chronic diseases, such as heart disease, cancer, and diabetes, are on the rise. These diseases are often expensive to treat, and they can lead to long-term disability. This is driving demand for new treatments and technologies that can help to manage and prevent these diseases.

• The development of new technologies: There are many new technologies that are being developed that have the potential to revolutionize the healthcare industry. These technologies include artificial intelligence (AI), robotics, and gene editing. These technologies have the potential to improve the quality of care, reduce costs, and make healthcare more accessible to people around the world.

Overall, I believe that the healthcare industry is a good investment for the next decade. The industry is constantly evolving, and there is a lot of potential for growth. If you are looking for an industry to invest in, I would recommend considering the healthcare industry.

And that’s a wrap! Thanks for supporting the drypowder team!! If you have any suggestions on how to improve, please reach out.

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