December 12, 2024

Messy giants

Hi there, 

Here is this week's Hot or Not.

Hot: Unstructured data M&A

CRM giants are buying up AI startups that make sense of messy (aka unstructured) data. 

• Last week, HubSpot scooped up Frame AI ($17M in funding), which turns customer conversations (like emails and calls) into insights and recommendations.
• In September, Salesforce acquired Zoomin to bolster its unstructured data management capabilities. 

Both companies are looking to help businesses marry their unstructured and structured customer data.

Zooming out, the deals are part of a broader corporate M&A push to bring AI capabilities in-house. 

Not: Sustainable packaging

Coca-Cola slashed its packaging sustainability goals this week. 

For example, it’s now targeting using 35-40% recycled material in its primary packaging, down from 50%. 

It’s not alone. PepsiCo, Unilever, Colgate, Mars, and Grove are all walking back their plastic promises. 

The reality check: Many CPG companies set ambitious 2025 packaging goals during 2018-2020, but they say they've encountered challenges including cost, the availability of recycled content, and varying regional recycling practices.

Looking at earnings calls, mentions related to packaging and sustainability peaked at the end of 2021. Maybe this was another ZIRP phenomenon?

Hot: AI drug discovery exits

AI drug discovery startups are gaining steam, reflected by a flood of funding dollars, big pharma partnerships, and a rise in M&A exits.

Since Q1’23, there have been 10 M&A exits in the space, more than doubling its historical activity.

And we expect this momentum to continue, especially given that M&A exits are on the rise in digital health more broadly.

So which AI drug discovery startups will get scooped up next?

We identify high-potential contenders in this report. (Sneak peek below.)

CB Insights customers can access the full graphic here.

Not: GM in robotaxis

After investing billions into Cruise, GM is abandoning the robotaxi race. 

The automaker cited escalating costs and slower ROI as its reasons for pumping the brakes.

Yes — just as robotaxis appear to be on the verge of becoming real, GM is exiting. 

Mary Barra, CEO of GM, offered this deeply inspiring quote about the company’s strategy going forward:

“GM is committed to delivering the best driving experiences to our customers in a disciplined and capital efficient manner.”

Man — that gets you fired up, no?

GM is instead pivoting to personal autonomous vehicles and ADAS (advanced driver-assistance systems).

Meanwhile, other players — like Waymo (part of Google), Tesla, and Wayve — are doubling down on robotaxis. 

Learn more about how the autonomous driving landscape is evolving in this research brief.

The +1

Take the L. This pie chart had a fight with a rainbow — and lost.

I love you.

Anand

@asanwal 

Co-Founder & Exec Chair

P.S. We identified 9 technologies that are going to change the world over the next decade. Want to learn more about them? Download our roundtable session here.

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