The Flowlie Times #60
New Feature Launches, Scaling Series in Miami, Thought Partners, AI Innovations, and Many More Discoveries.
Welcome to The Flowlie Times!
NEW: Investor Activity Detail for Easier Management
How does it work?
Now you can not only organize your investors into lists and add them to your pipeline, but you can also keep track of your ongoing relationships with them. Key features include:
First Connection Date: Quickly see when you first got in touch with an investor.
Last Contact: Stay on top of when you last reached out, so you can follow up at the right time.
Relationship Status: Gauge connection strength to plan your next steps.
Intro Needed: Track whether an introduction to this investor is needed, helping you manage outreach and ensure you haven't missed any opportunities for networking.
This feature makes it easier to manage your investor communications, so you can reconnect at the right moment and maintain strong, meaningful relationships backed by real data.
Articles we enjoyed:
1️⃣ AI: From Overhype to Opportunity
The hype around AI is fading, with VCs now questioning whether the massive investment is justified. Sequoia estimates AI needs to generate $600 billion in revenue, yet Apple, Google, Meta, and Microsoft combined only bring in $40 billion from it. Critics say AI promised to revolutionize industries but delivered trivial solutions like chatbots.
But here’s the twist: despite the backlash, AI can still be your most valuable tool—if used right. It’s not about replacing Google, it’s about becoming your thought partner. Studies show AI can boost productivity by 25% and improve decision-making by 40%, especially for consultants and CEOs.
Key takeaway: Stop using AI for answers, start using it for ideas and strategic thinking. The smartest people will soon be bragging about their AI-powered edge. Scott Galloway says,
“AI won’t take your job, but someone who understands AI will.”
2️⃣ The Verticalization of Everything
AI is poised to deepen the vertical SaaS market by 10x, driven by two major factors. First, the generalist AI model isn’t delivering exceptional results, leaving space for vertical-specific AI solutions to thrive. Second, many horizontal B2B SaaS companies are vulnerable to disruption, as startups with tailored AI features and great UX can outperform legacy systems.
Key Points:
Vertical AI excels because it’s trained with industry-specific data and expertise, giving startups an edge in solving niche problems.
Horizontal SaaS is ripe for unbundling, especially as AI empowers specialized solutions like Zocks (CRM for financial advisors) and EvenUp (AI for legal personal injury firms).
Vertical AI companies will grow by capturing more of the customer experience within each industry, leading to multi-billion-dollar opportunities in previously ignored sectors.
New AI-powered platforms will outcompete horizontal solutions by offering better UX, integrating seamlessly with enterprise systems, and leveraging unique industry data.
3️⃣ US Consumers Face Record Economic Uncertainty
US households are expressing record-high concerns about the economy, with inflation, high living costs, and borrowing expenses driving financial stress. According to the University of Michigan, economic uncertainty is at its highest since the Great Recession.
Key Points:
Inflation has surged 21.5% since 2019, squeezing household finances.
A record number of consumers expect no real income growth in the next five years.
The likelihood of a comfortable retirement is at its lowest in a decade.
Miami Summer Scaling Series: PART III ☀️
The final session of the 3rd annual Summer Scaling Series is here! This is your last chance this summer to join a program designed to help founders wrap up, recharge, and prepare for a strong finish to the year.
In collaboration with Venture Café Miami, this concluding session will feature insights from legal experts and entrepreneurs who will share strategies for growth. Whether you're a new founder or a seasoned professional, this session is for you.
Don’t miss the final session this Thursday! Learn more here.
Venture announcements that caught our eye:
1️⃣ Knit Secures $9M to Revolutionize Consumer Research with AI
Texas-based Knit, an AI-powered platform for streamlining consumer research, has raised $9 million in a funding round led by Revolution’s Rise of the Rest Seed Fund. The round also saw participation from Osage Venture Partners, GFT Ventures, Visible Ventures, and existing investors like Silicon Road Ventures.
Knit has partnered with top brands, including T-Mobile, NASCAR, and JBL, and has grown its annual recurring revenue by 5X in the last year.
2️⃣ Letta Emerges from Stealth with $10M to Revolutionize AI Memory
Letta, a startup born from UC Berkeley’s renowned Sky Computing Lab, has emerged from stealth with $10 million in seed funding led by Felicis Ventures. The company, co-founded by Berkeley PhD students Sarah Wooders and Charles Packer, aims to solve a key challenge in AI: enabling AI models to remember users and conversations.
Key Points:
Funding and Valuation: Letta secured $10M at a $70M post-money valuation, backed by major investors including Google’s Jeff Dean, Hugging Face’s Clem Delangue, and Runway’s Cristóbal Valenzuela.
Core Technology: Letta’s flagship tech, MemGPT, addresses AI’s memory limitations, allowing AI to remember user interactions over time, essential for applications like customer support and healthcare.
Open Source Advantage: Letta champions open-source development, positioning itself against proprietary giants like OpenAI. Letta’s platform supports multiple AI models, offering flexibility that OpenAI’s tech doesn’t.
Beta Launch: Letta Cloud, the commercial version, will offer developers tools to deploy stateful AI agents, with long-term memory capabilities accessible via APIs.
3️⃣ Reframe Technologies Secures $5M to Streamline Digital Workspaces
"The desktop environment is collapsing under its own weight... Reframe is not another app, it’s an extension of your desktop.” — Jeff Szczepanski, CEO
Reframe Technologies, co-founded by Jeff Szczepanski, has raised $5M to develop its Organized Work Environment, transforming desktops into dynamic, context-aware workspaces. OWE integrates tools like Slack, Zoom, and Google Docs into cohesive "Streams" to reduce cognitive load and enhance collaboration.
Key Points:
Funding: Led by Primary Venture Partners and Eniac Ventures.
Technology: OWE organizes apps and info for improved focus and teamwork.
Launch: Private alpha in early 2025.
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Have a great week,
Ariana from Flowlie