Hey there 👋
It's time for another 🛰️ FounderNest Flyby Newsletter 🛰️, where we help you stay sharp with innovation trends & insights.
This week, our research team listened to your feedback on LinkedIn, so get ready to start your engines and discover what is fueling the Generative AI industry.
In today’s newsletter:
- 💡 Our insights from this week
- 🗞️ Quick Hits from this week’s news
- 🤖 This week’s GenAI Deep Dive
- 📡 11 trends from our Industry Radar
(Est. reading time: 5 mins)
Our insights.
"Innovation teams are actively seeking ways to leverage AI to address real business challenges. This year, we anticipate a rise in practical AI applications that truly deliver value to organizations."
Felix Gonzalez
CEO and Co-Founder at FounderNest
"Corporate venture building is gaining momentum, with startups being created and scaled internally. This strategy enables efficient exploration of disruptive ideas and accelerates market entry, offering quicker ROI compared to traditional R&D."
Miguel Gonzalez
COO and Co-Founder at FounderNest
Quick Hits.
Short and sweet—news that caught our eye this week.
📈 Global venture capital funding saw a significant rebound in the final quarter of 2024, with a 24% increase quarter-over-quarter, reaching approximately $120 billion across 4,000 deals.
🚀 AI-driven tech and AdTech, renewable/clean energy (due to sustainability initiatives), and healthcare (driven by innovation and demand) are poised for significant growth in 2025, presenting attractive investment opportunities.
📊 Corporate - and CVC-backed deals accounted for 35% of total deal value in Q4 2024, the highest share since 2019.
Deep Dive: GenAI Investment and Adoption.
Our bread and butter—comprehensive, personalized industry insights.
TL;DR
- 🏦 Growing investment in GenAI with significant budget allocation
- 📈 Positive ROI reported by majority using GenAI models
- 🌐 Widespread adoption of diverse GenAI models, including LLMs
- ⚙️ Persistent challenges in data quality and infrastructure
This report, based on a survey of 400 senior AI professionals, explores the rapid adoption and impact of Generative AI (GenAI) across industries. It highlights key trends, challenges, and opportunities, revealing how organizations are leveraging GenAI to drive innovation and ROI while navigating operational hurdles.
1. 🏦 Significant Investment in GenAI
Nearly half of senior AI professionals plan to invest over $1 million in GenAI within the next year, with 90% already engaged in some form. This marks a shift from exploration to active implementation, with 33% of organizations creating new budget lines dedicated to GenAI projects. The trend reflects growing confidence in GenAI's potential to transform business operations and drive value.
2. 📈 Positive ROI from GenAI Initiatives
65% of respondents with GenAI models report positive returns on investment, indicating successful integration into business processes.
Despite stable overall ROI for AI initiatives, this suggests a need for improved metrics to specifically measure GenAI outcomes.
The success of AI Pioneers, with 73% seeing positive ROI, underscores the importance of strategic investment and adoption.
3. 🌐 Diverse GenAI Models in Use
A significant 85% are utilizing or exploring hosted large language models (LLMs) such as OpenAI, with 65% experimenting with other GenAI models.
Self-hosted open-source LLMs are gaining traction due to their flexibility and enhanced privacy features.
The expansion of GenAI across business functions, including HR, legal, and customer service, demonstrates its broad applicability and potential for impact.
Find here the full research
Source: Dataiku
Industry Radar.
Stay ahead of the curve—every newsletter we give you 11 of the hottest topics and trends across our reference industries.
1. Oil and energy: Navigating Geopolitical Tides: The Energy Sector's Pivotal Year
As global tensions rise with Trump's return, climate talks at COP30, and ongoing conflicts, the energy sector faces critical decisions on capital allocation and sustainability. With potential trade wars threatening economic growth and volatility in oil and gas prices, energy companies must navigate a complex landscape.
2. Food and beverages: Big Food's Innovative Leap: Inside Corporate Venture Investments
Major packaged-food companies are increasingly establishing in-house venture-capital arms to invest in innovative start-ups, aiming to tap into emerging consumer trends and boost agility. This strategic approach allows Big Food to explore new categories while start-ups benefit from vast resources and expertise.
3. Healthcare: Walgreens' Next Chapter: $10B Private Acquisition
Walgreens is set to be acquired by private equity firm Sycamore Partners for $10 billion, marking its exit from public markets after nearly a century. The deal, potentially reaching $24 billion including debt, comes as Walgreens grapples with financial struggles and a need for strategic transformation. The acquisition offers a path for essential changes and a potential sale of VillageMD could further impact shareholders.
4. Technology: Tech Sector's Path to Growth Amid Challenges
Amid economic uncertainties and tech layoffs, the industry is poised for growth, with IT spending projected to rise significantly. Key areas include AI, cloud innovation, and risk management. Companies must balance globalization with self-reliance, address trust in AI, and navigate regulatory changes while leveraging mergers and acquisitions to meet evolving enterprise needs.
5. Retail and logistics: Navigating the Surge: Retail Logistics on the Rise
The retail logistics market is projected to soar from $363.47 billion in 2025 to $925.97 billion by 2033, driven by a 12.4% CAGR. Technological advances, such as AI and IoT, are enhancing supply chain optimization and last-mile delivery, while globalization boosts international retail trade. However, adapting to pandemic-related shifts in consumer behavior remains a challenge for the industry.
6. Farming and agriculture: Sowing the Seeds of Innovation: The Future of Farming
In 2025, new agriculture technology is revolutionizing farming with IoT devices, AI, and automation. These innovations offer real-time monitoring, predictive insights, and efficient resource management for smarter, more sustainable practices. Technologies like the FJD Farm Management System enhance yields, reduce waste, and improve profitability, paving the way for a more efficient and environmentally friendly future in agriculture.
FounderNest Bonus: We were curious about some of the technologies shaping this market. So, we launched our Market Intelligence tool. Find below a sample of results. Get in touch to see how we can help.
7. Banking: AI, Trust, and a Shift in Strategy
Banks face a paradox—digitization improved efficiency but eroded trust and differentiation. AI will restore personalized banking, while regulation-driven risks push financial activity to non-traditional players. The future belongs to banks that leverage AI for customer-centricity, embrace open-source tech, and rethink traditional revenue models.
8. Pharmaceuticals: Pharma's Path to Reinvention Amid Disruption
Amid global changes, the pharma sector struggles with lagging shareholder returns and increasing competition. Key trends include AI advancements, consumer empowerment, and pricing pressures. To thrive, companies must innovate their business models, focusing on R&D disruption, patient-centric approaches, and strategic agility, while navigating geopolitical and market uncertainties.
FounderNest Bonus: We were curious about early-stage startups applying AI in drug discovery and the pharma sector in general. We created a space, launched a search, and here are just some of the results. Get in touch to see how we can help.
9. Manufacturing: Manufacturing Growth Faces Tariff Challenges
Manufacturing saw a boost in production and demand as companies rushed orders before new tariffs from the Trump administration. However, this growth is likely temporary, with rising input costs and supply chain disruptions looming. Tariff-induced price hikes could lead to further inflation concerns, impacting future sales and economic stability.
10. Aerospace: Airlines' Strategic Startup Investments: A Focus on Sustainability and AI
In 2024, airlines continued rare but strategic investments in startups, focusing on sustainability and AI to drive innovation. Despite the high-risk nature, these investments are crucial for long-term growth, with only 7% of airlines participating. Key players like ANA, KLM, and JetBlue lead the charge, signaling the industry's commitment to transformative technologies that could reshape air travel.
FounderNest Bonus: Are you aware of the trends shaping the industry? We asked our AI Engine, and here are just some of the results we got. Get in touch to see how we can help.
11. Automotive: Germany's Economic Jitters Amidst Tariff Tensions
The prospect of a trade war, spurred by Trump's tariffs on major trading partners, threatens Germany's economy, notably its automotive sector producing in Mexico. While immediate impacts may be limited, the possibility of tariffs on the EU raises concerns for German manufacturers. Despite challenges, experts highlight the resilience of EU trade networks beyond the US.
Thanks for reading! If you want to explore the space for yourself, or any others, you can run your own search directly in FounderNest
