Tesla unveils new toys, SpaceX alums are raising a $550 million first fund, and North Face is now selling a “tech tie”

StrictlyVC Newsletter Briefing - October 10, 2024 Main Themes: Tesla's Autonomous Future: Tesla made waves by announcing its Robotaxi strategy, utilizing a new class of vehicles called CyberCabs and potentially leveraging Tesla owners' vehicles for ride-hailing. Skepticism remains regarding the safety and readiness of Tesla's autonomous driving software. Deep Tech Investment Heats Up: SpaceX alumni formed Interlagos, a venture capital firm aiming to raise a hefty $550 million for its first fund focused on "deep tech" startups. AI Continues its Dominance: Numerous startups securing funding leverage AI across various applications, from accounting automation (Numeric) to healthcare (Cytovale, Suki, Qantev, RadiantGraph) to legal tech (Noetica AI). Fintech Faces Challenges and Opportunities: TD Bank's guilty plea in a money laundering case signals potential regulatory scrutiny in the financial sector. However, fintech startups like Farther and Imprint continue to attract significant investment. Sustained Growth in Venture Capital: Several new funds like Van Eck and MindWorks emerge, targeting sectors like crypto, AI, fintech, and smart manufacturing, indicating continued investor confidence in the venture capital landscape. Key Facts and Ideas: Tesla Robotaxi: "Tesla still has a long way to go to prove that its autonomous driving software is safe, but the announcement dazzled." Interlagos Fund: Targeting 26-32 investments, the fund aims to "lead and be persistent capital partners to leading companies." TD Bank Settlement: The bank agreed to pay "$3 billion in fines and other penalties" for failing to monitor money laundering. Grabango Shutdown: The checkout-free technology company shuts down after raising over $73 million, highlighting the challenges in the retail tech space. European IPO Market Revival: Smaller-scale IPOs are slowly returning to Europe, signaling renewed confidence in the public markets. Notable Quotes: Kyle Vogt, Cruise Co-founder, on Robotaxis: "It takes a non-trivial amount of work to go from making a car mostly drive without interventions to a safe, robust, and legally compliant robotaxi network that meshes well with local communities." Essential Reads: "Investors who can't buy teams are investing in sports tech startups" - Forbes. Overall: The newsletter highlights a dynamic environment in the tech and venture capital world. While Tesla pushes towards an autonomous future, the rise of deep tech investments and the continued success of AI-powered startups signal exciting areas of innovation. Challenges remain, as seen with the TD Bank case and Grabango's closure, but the emergence of new funds and revival of the European IPO market point towards a promising future.