In today’s newsletter:
- Executive Dashboard: Bits & Pretzels Conference
- Quick Hits from this week’s news
- Industry Radar to keep you ahead on industry trends
- Research on AI in Cybersecurity
Let’s open the vault
Bits & Pretzels: Executive Dashboard
We're thrilled to attend the Bits & Pretzels Event this year! This festival connects innovators, entrepreneurs, and investors from around the globe.
To help you maximize your networking experience, we created an executive dashboard in FounderNest where you can get an overview of the startups in attendance. Sign up for your trial of FounderNest to get access to the dashboard today.
Quick Hits
Short & sweet—news that caught our eye this week.
Achieving breakthrough success in innovation is like running a high-efficiency factory. Companies must adopt a systematic approach to foster and scale great ideas, ensuring they're not just conceived but effectively implemented.
Despite bold climate claims, tech giants like Google and Amazon still have a significant environmental impact. Their operations heavily contribute to carbon emissions, even with investments in renewable energy.
Industry Radar
Stay ahead of the curve— some of the hottest news & trends across our reference industries paired with some bonus insights from FounderNest.
Energy & Oil: Global Upstream Oil & Gas Need a $135B Boost
By 2030, global upstream oil and gas investment is expected to hit $738 billion, needing a $135 billion boost from current levels. In 2024, capital expenditures will surpass $600 billion for the first time in a decade, with North America contributing over a third. Latin America will lead in conventional crude projects. Despite reduced underinvestment risks, future demand and energy transition policies remain uncertain.
FounderNest Bonus: We got curious about the tech behind upstream oil and gas. Sign up for your free trial to get this data today!
Retail: AI Powered Pricing Models
Retailers face pricing complexities due to cost inflation, supply chain issues, and shifting consumer behavior. Traditional methods are insufficient, prompting a shift to AI-powered dynamic pricing models, which can increase gross profits by 5% to 10%.
Healthcare & Hospital: Generative AI Cutting Costs
The healthcare sector faces significant challenges in 2024, including rising costs, affordability issues, and health equity concerns. Despite high U.S. spending, outcomes lag behind peer countries. Industry transformation is essential, with 90% of companies planning to boost technology budgets and use generative AI to potentially cut costs by $150 billion annually.
FounderNest Bonus: Considering the challenges the industry is facing, we decided to look at some trends that are shaping the space of Healthcare. Get this data & more in your free trial of FounderNest.
Farming & Agriculture: Strategic Investment Opportunities
The 2024 Farm Income Forecast presents a mixed outlook for agriculture. While net farm income is expected to drop by 4.4% and direct government payments by 15.1%, farm sector equity and assets are set to increase. Median total farm household income is rising, underscoring the value of diversified income sources. This resilience, along with evolving market conditions, suggests opportunities for strategic investments in efficiency and sustainability technologies.
Food & Bev: Investment Slump
Innovation in the food and beverage industry has been declining after a decade-long investment slump, making it one of the worst-affected sectors among consumer packaged goods. Start-ups are driving innovation using AI and e-commerce, lowering entry barriers for smaller brands. Challenges include regulatory hurdles, the need for product success confidence, and limited face-to-face investor contact.
Pharma: Value of M&A Deals Declining
In Q2 2024, the global pharmaceutical industry saw 401 M&A deals announced, totaling $34.5 billion. The largest disclosed deal was Vertex Pharmaceuticals' $4.9 billion acquisition of Alpine Immune Sciences. Despite this activity, the total value of M&A deals decreased by 49% compared to the previous quarter's $68.1 billion and fell by 38% compared to Q2 2023.
FounderNest Bonus: We got curious and decided to look for companies operating in the same space as Alpine Immune Sciences. So we asked our Similar Companies tool to find them. Check this out!
Telecom: M&A Deal Value Surging in 2024
Global telecommunications M&A deal value has surged from $16 billion in early 2023 to $43 billion in 2024. There is a shift towards scale deals among mobile and fixed network companies, with Europe, the Middle East, and Africa accounting for over 40% of the total. The largest announced transaction is the $13.4 billion merger between fiber providers Uniti and Windstream. The telecom industry is adapting to competitive pressures and macroeconomic challenges through strategic acquisitions to enhance capabilities.
Banking & Financial Services: Cryptoassets Regulatory Changes
The cryptoassets sector is poised for significant regulatory changes in 2024, with global authorities focusing on creating a more structured framework. This includes efforts to enhance transparency, combat fraud, and ensure financial stability. Financial institutions are expected to navigate these evolving regulations while exploring opportunities in digital currencies and blockchain technology.
FounderNest Bonus: We decided to look for some relevant companies and hidden gems in the crypto world. We got the following results within seconds by running our Light Search tool. Try it out for yourself by signing up for your free trial.
Automotive: Gradual Recovery & Growth in Emerging Markets
The global automotive industry faces economic uncertainties, supply chain disruptions, and rising raw material costs. Despite these challenges, gradual recovery is expected, driven by growth in emerging markets and advancements in autonomous driving technology. The sector's future depends on adapting to changes and innovating in response to shifting consumer preferences and regulatory landscapes.
Utilities: Expansion of Renewable Energy Infrastructure
Key developments in the utilities industry for Q2 2024 include the rapid expansion of renewable energy infrastructure, driven by major investments from companies like Bitech and Torrent Power. The sector shows strong financial resilience, exemplified by Algonquin Power & Utilities Corp's successful financing activities. Cybersecurity has become a critical concern following recent attacks on water utilities. AI adoption is widespread, with 74% of energy and utility firms using AI technologies to transform their operations. Regulatory changes, particularly in gas planning rules, reflect a shift towards environmental standards.
FounderNest Bonus: We decided to look into Bitech’s activities with our Competitive Intelligence Module. Get all the data in FounderNest with your free trial today.
Tech: Quantum Computing Drove $1.2B in Venture Capital in 2023
Quantum computing has yet to show a clear advantage over classical computing in practical applications, with fidelity remaining a significant challenge. Despite this, the number of physical qubits has been doubling every 1-2 years since 2018. In 2023, quantum computing attracted $1.2 billion in venture capital, even as overall tech investments fell by 50%.
Research: AI in Cybersecurity
The AI-driven cybersecurity market offers a wide range of solutions, from algorithms that identify and analyze potential threats to those that enhance network security and respond to incidents with AI-driven decision-making. In this report, we’ll delve into one key area: AI-powered threat detection.
We ran a deep dive with FounderNest to understand what's happening in the space. See our main takeaways below or get the full report here.
Main Takeaways
- Young and Dynamic Market with Small to Medium-Sized Companies: The sector is relatively young with a median company maturity of 7 years and predominantly consists of small to medium-sized companies, with 74% having 1-50 employees, indicating a rapidly evolving market with significant growth potential.
- Significant Funding and Recent Growth: The sector has raised over $13B, peaking at $3.2B in 2022, with the highest number of AI-based cyber threat detection companies founded in 2019, indicating strong investor interest and recent growth spurts.
- High CAGR: The sector shows strong growth, with a compound annual growth rate (CAGR) in funding over the last five years of 32.6%.
- General Trends in the AI-driven Cybersecurity Market: The sector is experiencing significant advancements, including an increasing use of deep learning for malware analysis, AI-powered self-adapting systems in network security that adjust policies based on traffic patterns and threat intelligence, and AI-driven User and Entity Behavior Analytics (UEBA) to detect anomalies and identify insider threats.
- Big Tech Companies Form Strategic Partnerships: Nvidia is actively collaborating with leading cybersecurity firms CrowdStrike and Sygnia to enhance the integration of advanced analytics and artificial intelligence in cybersecurity solutions. These partnerships aim to leverage AI technologies to significantly improve threat detection and response capabilities across various sectors.
See more in this report.
Feel free to suggest a topic for us to dive into next! If you have any questions, feedback, or just want to connect you can get in touch or connect on LinkedIn.
