margins

Enterprise

“Unveiling the Key Takeaways for African B2B E-commerce Startups from OmniRetail’s Successful Journey”

Save for fintech and cleantech, B2B e-commerce and retail was the leading destination for venture capital dollars over the last five years. Most B2B e-commerce startups have struggled to keep subsidizing their products and expanding operations, leading to retreats, closures, downsizing and mergers. Building a B2B e-commerce business in tech winterB2B e-commerce platforms provide convenience to FMCG manufacturers like Unilever and P&G for distributing their products to the last mile. As a result, many B2B e-commerce startups have opted for asset-heavy models to reach their customer base. The Lagos-based B2B e-commerce startup is currently in the middle of securing a new round of equity and debt to propel its expansion.

Kira Kim
March 14, 2024

Gadgets, Robotics & AI

Tackling AI Bias: The Mission of Mutale Nkonde’s Nonprofit

We’ll publish several pieces throughout the year as the AI boom continues, highlighting key work that often goes unrecognized. Mutale Nkonde is the founding CEO of the nonprofit AI For the People (AFP), which seeks to increase the amount of Black voices in tech. It established AI for the People as a key thought leader around how to develop protocols to guide the design, deployment, and governance of AI systems that comply with local nondiscrimination laws. There is so much work to be done on reskilling our workforce for a time when AI systems do low-stakes labor-saving tasks. What information can they give us about how AI systems work and do not work from them, and how can we use these insights to make sure AI truly is for the People?

Max Chen
February 23, 2024

Gadgets, Robotics & AI

The Potential Impact of AI Startups’ Profit Margin on Their Future Valuation

The expectation that modern AI tech will find a home in every part of our lives is pandemic. Fittingly, startups and investors are working overtime to build and fund new technology companies to either create or implement new AI tech. But despite all the enthusiasm, there’s a niggling detail that deserves our attention: AI startups often have worse economics than most software startups. The conversation around AI gross margins is not new. Back in 2020, venture firm a16z argued that AI startups would have lower gross margins due to “heavy cloud infrastructure usage and ongoing human support.”