This edition of the StrictlyVC newsletter covers a range of topics within the technology and venture capital landscape, including the ambiguity surrounding "AI agents," significant funding rounds, Klarna's long-awaited IPO filing, growing frustrations at Foxconn due to Trump-era tariffs, and other notable news items.
1. The Ambiguity of "AI Agents": A Central Point of Confusion
A significant portion of the newsletter focuses on the widespread use and lack of clear definition of the term "AI agent." While tech leaders from major companies like OpenAI, Microsoft, and Salesforce are bullish on the potential of AI agents to transform work, there is no consensus on what exactly constitutes an "agent."
- Bullish Predictions: The newsletter highlights the optimistic views of prominent CEOs:
- Sam Altman (OpenAI): Agents will “join the workforce” this year.
- Satya Nadella (Microsoft): Agents will replace certain knowledge work.
- Marc Benioff (Salesforce): Salesforce aims to be “the number one provider of digital labor in the world” via its “agentic” services.
- Lack of Definition and Dilution of Meaning: The authors, Maxwell Zeff and Kyle Wiggers, argue that the term "agent," much like other AI-related jargon, is becoming "diluted to the point of meaninglessness."
- Concerns about Confusion and Customer Frustration: This lack of a shared understanding could lead to significant issues: "An agent from Amazon isn’t the same as an agent from Google or any other vendor, and that’s leading to confusion — and customer frustration."
- Industry Skepticism: Ryan Salva, senior director of product at Google and former leader at GitHub Copilot, expresses strong negative sentiment towards the term: “I think that our industry overuses the term ‘agent’ to the point where it is almost nonsensical,” Salva told TechCrunch. “[It is] one of my pet peeves.”
Key Quote: "But no one can seem to agree on what an AI agent is, exactly."
2. Significant Funding Activity Across Various Sectors and Stages:
The newsletter details a flurry of funding rounds, indicating continued investment appetite in diverse areas of technology.
- Mega Rounds:Plata (Mexico City digital bank): $160 million Series A at a $1.5 billion valuation.
- Terabase Energy (solar power plant construction robotics): $130 million Series C.
- Big-But-Not-Crazy-Big Rounds: Several companies raised in the ~$40-50 million range, including:
- Alloyed (advanced metal alloys and 3D printing, UK): $47.9 million Series B.
- Curve (smart card and mobile app, UK): $47.9 million.
- RedotPay (cryptocurrency transactions, Hong Kong): $40 million Series A.
- Seed Funding: Noteworthy seed rounds include:
- Town (AI-powered tax advisor for small businesses): $18 million.
- Human Computer (video game studio): $5.7 million.
- OptimHire (AI-driven recruitment platform): $5 million.
- New Funds: Rex Woodbury's Daybreak Ventures announced a $33 million fund focused on early-stage consumer and enterprise startups.
3. Klarna Finally Files for IPO Amidst Modest Profitability:
After much anticipation, the Swedish payments company Klarna has finally filed to go public.
- Filing Details: Klarna filed despite reporting only "$21 million in net income on $2.81 billion of revenue for 2024." This suggests a move towards public markets even without robust profitability.
Key Fact: "Klarna, a 19-year-old Stockholm-based payments company, finally filed to go despite having just $21 million in net income on $2.81 billion of revenue for 2024."
4. Foxconn CEO Expresses Frustration over Trump-Era Tariffs:
Young Liu, CEO of the major contract manufacturer Foxconn, publicly stated the negative impact of the previous US administration's tariff policies on their customers.
- Impact on Customers: Liu noted that the tariff policy "is giving the CEOs of our customers a big headache now."
- Major Clients Affected: Foxconn's significant clients include Apple, Amazon, and Google, indicating a broad impact across the tech industry.
