TikTok tests AI Song, X releases audio and video calling to Android

Top News

TikTok is testing AI Song, a tool powered by the LLM Bloom that generates songs from text prompts and allows users to toggle the song's genre. - Link

X rolls out audio and video calling to Android following the October 2023 iOS launch; all users can receive calls but only Premium subscribers can place them. - Link

Some video podcasts are using AI-generated product placements from a company called Rembrand to supplement their typical host-read ads. - Link

Plex plans to launch a TV and movie rental marketplace next month, becoming a one-stop shop for media content. - Link

Rabbit's $199 AI device R1 will use Perplexity AI's tech to answer user queries; the first 100,000 R1 buyers will get one year of Perplexity Pro for free. - Link

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Advice of the Day

Describing Your Business As an Equation

Lenny Rachitsky and Dan Hockenmaier outline that every business can be understood through a simple equation, emphasizing the importance of identifying inputs, outputs, and their interrelationships. Different equations are required for each business model, whether B2B SaaS, B2C, or marketplaces. Businesses should focus on key metrics like revenue, ARR, and contribution margin, acknowledging that while such equations are crucial for strategic alignment and decision-making, they don't encompass all metrics, such as customer acquisition payback period. The equations to follow for each business model include:

1. B2B SaaS equation → ARR = New ARR + Expansion ARR + Reactivation ARR – Churned ARR – Contraction ARR

2. B2C/consumer equations

   1. B2C with subscription-based pricing → ARR = MRR x 12 = (New subs + Retained subs + Reactivated subs) * Average monthly revenue per sub * 12

   2. B2C with ads → Revenue = Active users * Impressions per user * CPM/CPC/CPA

3. Marketplace equation → B2C/B2B marketplaces → Revenue = Transactions * AOV * Take rate

4. DTC/e-commerce equation → Revenue = Transactions * AOV

Click here for more details on the calculations.

Startup Demo of the Day:

Koosh makes static websites more professional and dynamic in minutes without the need for developers and huge budgets. Users upload a video, create a video block from the templates, embed the video block, and the static site is made more interactive and engaging.

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This Week in Startups

E1882: Joshua Berkowitz from Berkocorp joins host Jason to discuss various facets of VC and fundraising. They cover why family offices are increasingly diversifying into VC, focusing on aspects such as higher returns and the entrepreneurial element. The conversation also explores how venture firms make decisions, weighing consensus against individual decision-making, and what it takes for a VC fund to succeed. - Watch

E1881: Flexport's CEO, Ryan Petersen, covers topics including the company's focus, pick-and-pack economics, global logistics challenges, the Red Sea Crisis impact, trends in sourcing, and the effects of the market collapse on CEO transition. The conversation also touches on leadership challenges, decisions on going public, and the state of the global workforce and remote work. - Watch

E1880: Sunny joins Jason to discuss CES, emphasizing AI's role. They review the Rabbit device and its impact, evaluate Rabbit R1 and purpose-built devices, and explore AI integration with Large Language Models. Sunny demos Elli Q for the elderly and showcases a kid-friendly smartphone. The GPT store launch is highlighted, focusing on its disruptive potential using All Trails as a case study. - Watch

E1879: David Weisburd hosts Michael Kim and Jason Calacanis in a discussion about the world of VCs, LPs, and GPs. They explore topics such as doubts LPs may have about VC startup valuations, Jason's LP strategy, best practices in LP portfolio management, evaluating different GP strategies for secondary deals, and the challenges of starting a new firm. - Watch

E1878: Dara Khosrowshahi, CEO of Uber, joins Bill Gurley, Brad Gerstner, and Jason to discuss Uber's journey and future. Uber's position entering 2024, myths about the company, its early appeal to investors, the influence of valuations on founder mindset, the role of secondary markets, and untold company stories are shared. Uber’s future strategies to upsell and integrate AI are also discussed. - Watch

This Week in Startups Paid Partnerships

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