TLDR:
Consumer investors are struggling to find success in AI breakthroughs, as OpenAI’s $100 billion valuation raises eyebrows. Once popular social apps are fading, leading to consumer venture investors leaving their firms. Retail investors are being encouraged to invest in venture capital, with the Fundrise Innovation Fund paving the way. Despite some successes like Character.AI, many consumer startups are facing challenges and layoffs. The search for a killer consumer AI app continues, while hope remains for consumer companies in specific verticals like healthcare.
Summary:
Consumer investors are facing challenges in finding a breakthrough in the AI sector, with OpenAI’s staggering $100 billion valuation causing speculation. While some AI startups like Midjourney and Suno are seeing success, others are struggling to make an impact. The failure of previous consumer companies and a lack of promising new social apps have led to consumer venture investors leaving their firms and shutting down funds. Notable figures like Connie Chan, Li Jin, and Magdalena Kala have made transitions in their investment strategies, signaling a shift in the market.
The Fundrise Innovation Fund is aiming to democratize venture capital investment, allowing retail investors to access the world of VC funding. Despite challenges, consumer startups like Character.AI are showing growth, while others like Glossier and Faire are facing layoffs and funding difficulties. The quest for a killer consumer AI app continues, with investors like Rebecca Kaden and Anarghya Vardhana expressing hope for breakthroughs in the future.
Verticals like healthcare are offering potential for consumer companies, with startups like Slingshot AI and Cofertility making strides in the market. The industry is grappling with the need for creativity and innovation, as founders look for new ways to leverage technology in consumer-facing products. Despite the challenges, there is optimism for the future of consumer investing, with strategic acquisitions and vertical-specific opportunities paving the way for growth.
