🕶️ Life After TikTok

Hello New Social Media Era, Hello New Startup Challenges

Author

Paula Echeverria
January 18, 2025

Together with

Startups are learning the hard way that $75B in VC funding doesn’t make raising cash any easier.

Meanwhile, TikTok’s final curtain call has everyone scrambling—users, competitors, and even Congress.

With TikTok out of the picture, what will we do with all that free time on our hands?

Maybe it’s finally time to pick up crochet. 🧶 

-🕶️ 

✦

Six bullets of updates

  1.  🎯 Get ready for the "Silver Tsunami": 41% of US businesses owned by boomers are up for grabs, offering rare M&A opportunities.

  2. 💼 Goldman Sachs CEO urges startups to rethink going public, highlighting Stripe's $6.5B private funding success

  3. 🏭 Anduril to build a $1B weapons factory in Ohio, creating 4,000 jobs and spanning 5M square feet.

  4. 🐝 Whitney Wolfe Herd returns as Bumble CEO in March 2025, aiming to revitalize the company amid declining shares and increased competition in the dating app market.

  5. 📚 Mandarin learners on Duolingo surged 216% as TikTok users explore RedNote amid a looming U.S. TikTok ban.

  6. 💘 AI chatbots gain popularity as romantic companions, sparking ethical concerns about emotional dependency.

✦

Goodbye TikTok: A New Era for Social Media Begins

We're finally saying goodbye to TikTok. The U.S. Supreme Court has upheld a law requiring ByteDance, TikTok's Chinese parent company, to divest its ownership or face a nationwide ban by January 19, 2025. Despite intense lobbying efforts in Washington, the deadline looms, leaving the app's future uncertain.

In a surprising twist, TikTok CEO Shou Zi Chew plans to attend President-elect Donald Trump's inauguration on January 20, joining other tech leaders. This move hints at potential negotiations to avert the ban, especially as Trump has expressed interest in finding a resolution.

As TikTok exits the scene, competitors are already stepping up. Mark Cuban is funding a new short-form video platform built on Bluesky's AT Protocol, aiming to provide creators with a decentralized alternative. Meanwhile, Instagram and YouTube are ramping up efforts to capture TikTok's massive user base.

The end of TikTok might feel like the close of an era, but for startups and creators, it’s the beginning of something new. The question isn't just who will win this battle—it's how the entire social media landscape is about to transform.

Stay tuned.

✦

Startup Events and Deadlines

  1. Startmate Accelerator | Deadline: Jan 20 | Australia

  2. Startup Talks: From Chaos to Clarity | Jan 21 | NYC

  3. Entrepreneur First Bangalore - Core | Deadline: Feb 11 | India

  4. Entrepreneurs Roundtable Accelerator | Deadline: Feb 11 | NYC

  5. Techstars New York City Accelerator | Deadline: Feb 11 | NYC

  6. Y Combinator | Deadline: Feb 11 | Silicon Valley

✦

Learn AI in 5 minutes a day

This is the easiest way for a busy person wanting to learn AI in as little time as possible:

  1. Sign up for The Rundown AI newsletter

  2. They send you 5-minute email updates on the latest AI news and how to use it

  3. You learn how to become 2x more productive by leveraging AI

✦

These companies just raised money

  1. 🚀 Stoke Space scores $260M Series C to push forward its fully reusable rocket at Cape Canaveral. Total raised: $480M!

  2. 📈 Netradyne secures $90M at a $1.25B valuation, eyeing global expansion and leveraging its 18B-mile data trove.

  3.  💊 Berlin-based Nelly secures €50M (~$55M) to digitalize medical practices, aiming to streamline over 1,200 clinics in Europe.

  4. 🏦 Finmaq raises $29M to expand SME asset financing in Colombia, aiming to streamline loan approvals to just two days and boost small business growth.

  5. 👩‍⚕️ Teal Health raises $10M to launch at-home cervical cancer screenings, addressing the 1 in 4 women behind on tests.

  6. 📜 French startup Hyperline scores $10M to innovate billing for SaaS, scaling from 14 to 25 employees soon.

✦

There’s a reason 400,000 professionals read this daily.

Join The AI Report, trusted by 400,000+ professionals at Google, Microsoft, and OpenAI. Get daily insights, tools, and strategies to master practical AI skills that drive results.

✦

VCs Invest Big in Q4, Yet Early-Stage Startups Face Funding Challenges

In the fourth quarter of 2024, venture capital (VC) investments surged to $75 billion, marking a return to pre-pandemic levels. However, this influx of capital doesn't necessarily translate to easier fundraising for startups. Despite the substantial investment figures, many startups continue to face challenges in securing funding, as investors exercise increased caution and selectivity.

A significant portion of the Q4 investments was directed toward a few high-profile deals, particularly in the artificial intelligence (AI) sector. Notably, companies like Databricks and OpenAI secured multi-billion-dollar funding rounds, accounting for a large share of the total VC investments. This concentration of capital in established firms indicates a cautious approach by investors, who are prioritizing proven entities over emerging startups.

This trend underscores a challenging environment for early-stage startups seeking funding. The focus on larger, later-stage investments means that newer companies may find it more difficult to attract VC attention. Startups are advised to demonstrate strong value propositions and clear paths to profitability to navigate this selective investment landscape.

✦

How to write a Killer Elevator Pitch - 2025

Forget those over-rehearsed "Shark Tank" speeches. A great elevator pitch is effortless, engaging, and meant for real conversations—not ambushing investors at events.

In this video, we’ll guide you through crafting a one-liner that captures your startup’s essence, highlight common pitfalls to avoid, and share examples for brands like BeReal, ClickUp, and Swing Tennis.

✦

How did we do?

Your feedback fuels us.

Login or Subscribe to participate in polls.