🕶️ Inside the Collapse of an EV Startup

Another case of things done wrong in a company.

Author

Arturo Pardo
June 01, 2024

Sponsored by

Now we are also part of your weekend. Startup news never stops, and we neither. Therefore, from now on, we promise more updates to ensure you stay informed. 🤩

Today we have another case of things done wrong in a company, serving as a lesson for us to do things better "at home." And if you're tracking milestones in the fintech area, there's one that has already reached 100M users, a number that sets the bar high for other players in the industry. 🔼

Have a great weekend. 🥂

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Six bullets of updates

  1. 🔓 AI startups face rising costs and regulatory challenges. Embrace multi-cloud strategies and open source for sustainability.

  2. 📱 Felix Pago is succeeding in funding with it’s startup that helps Latino workers sending money home via WhatsApp.

  3. 🩺 Valar Labs debuts an AI-powered cancer care prediction tool and secures a $22M funding round.

  4. 👶 Nordic female founders face challenges with VC funding despite the region's high unicorn rate; one reason could be parental leave.

  5. 🤝 OpenAI partners with PwC to bring ChatGPT's enterprise tier to 100K employees, marking its first resale deal.

  6. 🇧🇷 Brazil’s Nubank hits 100M customers and $1B profit, leaving European neobanks playing catch-up.

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What can we learn from Fisker's struggles to survive? 

Bryce Durbin / TechCrunch

The electric vehicle (EV) company Fisker Inc. is nearing bankruptcy after delivering only a few thousand Ocean SUVs. Employees attribute the company's failure to the mismanagement by the husband-and-wife leadership team. Even though basic lessons can be learned from this, the now-renowned case is an excellent opportunity to discuss what not to do.

  • Unrealistic Promises: Making grand promises without the capability to deliver can undermine credibility and lead to customer and investor disappointment.

  • Operational Chaos: A lack of established processes and procedures can lead to significant inefficiencies and operational failures, ultimately jeopardizing the company.

  • Leadership Issues: Power struggles and a leadership focus on reputation over substance can prevent effective problem-solving and strategic decision-making.

  • Employee Strain: Overworking employees and expecting them to handle issues beyond their roles can lead to burnout, high turnover, and, ultimately, layoffs, further destabilizing the company.

It is unclear how much money Fisker is recouping after the situation; in the meantime, let’s use this as a reminder. 

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Startup Events and Deadlines

  1. How to close a Funding Round (it’s not just the pitch deck) | June 4 | Webinar

  2. SaaStr Europa (London) | June 4-5 | Conference

  3. South Summit: Madrid | June 5-7 | Summit

  4. Crash Course in Financial Modeling | June 18 | Course

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Invest before this company becomes a household name

What if you had the opportunity to invest in the biggest electronics products before they launched into big box retail, would you?

Ring changed doorbells and Nest changed thermostats. Early investors in these companies earned massive returns, but the opportunity to invest was limited to a select, wealthy few. Not anymore. RYSE has just launched in 100+ Best Buy stores, and you're in luck — you can still invest at only $1.50/share before their name becomes known nationwide.

They have patented the only mass market shade automation device, and their exclusive deal with Best Buy resembles that which led Ring and Nest to their billion-dollar buyouts.

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These companies just raised money

  1. 🖱️ China's $47B Semiconductor Fund aims to bolster chip sovereignty, ensuring more substantial tech independence.

  2. 🇨🇱 Chilean Koywe acquires fintech Facto to tap into the US market, leveraging Facto's $1.2B annual transactions.

  3. 🇷🇴 FintechOS raises $60M Series B extension, reports 40% YoY growth, and plans to break even by 2024.

  4. 🌊 Iyris secures $16M to boost fresh produce growth in challenging climates, tackling food supply issues.

  5. 🧑🏽‍⚕️ Rhea raises $10M in Series A funding, led by Peter Thiel, to advance AI-driven healthcare solutions.

  6. 🔬 AI startup Iris raises $8.25M to reduce AI hallucinations in scientific research, improving accuracy for academics and corporations.

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Is meme tech the next big thing in startup innovation?

Alex Taub, Co-founder and CEO at Truth, and with previous experience in Upstream and Social Rank, claims that "Memetech" is poised to revolutionize the tech landscape. This emerging sector leverages viral internet culture and memes to create innovative and engaging technology solutions.

The founder argues that Memetech can potentially enhance user engagement and drive exponential startup growth. With its unique appeal and widespread cultural relevance, he believes Memetech could be the game-changer startups seek in a saturated market. He summarizes why this will soon lead to a flourishing industry: “Memes are culture, and culture is entertainment.” Read more!

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Investor Data Room Checklist

An investor data room is a storage space, digital or physical, where companies store information relevant to due diligence. We've compiled a FREE Template/Checklist of all the items your data room should include and resources and tools for obtaining them. 

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How do you get from Pitch Deck to Funding?

There’s a challenging process of raising venture capital for your startup. In this video, you’ll understand everything from initial pitches to securing funds, including pitching, due diligence, negotiation, and legal details. It provides insights, practical tips, and free tools to help founders navigate obstacles and prepare for success. Subscribe for more videos!