### Get Ready for 2025

Sifted will be attending a series of **exciting tech events** in 2025. This is a great opportunity for **entrepreneurs** and **startups** to connect, learn, and grow their networks.

### Key Events to Look Out For

- **TechCrunch Disrupt**: A must-attend for anyone in the startup ecosystem. Expect **innovative pitches**, **networking opportunities**, and insights from industry leaders.
- **Web Summit**: Known for bringing together the brightest minds in tech. A perfect platform to explore **emerging trends** and technologies.
- **SXSW**: A blend of tech, music, and film that fosters creativity and collaboration.

Stay tuned as we reveal more details about our participation at these events and how you can be part of the action!  

### Connect with Us

Follow us at Sifted for updates on these events and more. Let’s make 2025 a year of incredible innovation and growth in the tech industry!

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Exciting Tech Events to Watch for in 2025: Sifted's Attendance Line-up

Entrepreneurs often find themselves **walking a tightrope** between **compelling storytelling** and **deception**. A misstep can lead to what’s known as the **“deception trap”**, a cycle that can ensnare even the most well-meaning founders. This phenomenon has been highlighted in recent high-profile cases, such as **Sam Bankman-Fried**, who was convicted of fraud, and **Elizabeth Holmes** of Theranos fame.

## The Deception Trap Explained
The **deception trap** emerges when entrepreneurs, through their narratives, establish identities and set expectations, often leading to a cycle of deceit if those expectations are not met. The desire to succeed can push entrepreneurs into embellishing their ventures, leading to a slippery slope of misrepresentation.

## The Slippery Slope of Deception
In the early stages of a startup, founders must convey their **vision** convincingly. Unfortunately, this can lead to **exaggerations** and **unrealistic promises** about their products, making them susceptible to scrutiny. As pressure mounts, entrepreneurs may resort to **blurring the truth**, resulting in a cycle of deception that can ensnare both them and their stakeholders.

## Avoiding the Deception Trap
To protect against falling into this trap, entrepreneurs should:
1. **Set realistic stretch goals** and keep stakeholders informed about risks.
2. Understand that **“fail fast”** should mean disciplined experimentation rather than reckless risks.
3. Be realistic when creating early prototypes to avoid the pitfalls of **vaporware**.

## Stakeholders' Role
Stakeholders also play a crucial role in preventing deception. They should:
- Conduct **independent due diligence**.
- Reflect critically on their assumptions about the startup.
- Demand **transparency** and evidence from entrepreneurs.
- Maintain a **“trust but verify”** mentality to ensure claims are substantiated.

## The Need for Culture Change
Ultimately, the culture of **overambition** in entrepreneurship needs an overhaul. All parties involved, from entrepreneurs to investors, must remain vigilant and perform due diligence to prevent the deception trap from ensnaring them.

Entrepreneurs walk a razor-thin line between telling compelling stories and peddling lies — a misstep can easily lead to slipping into what the authors call the “deception trap.” It starts when entrepreneurs, through their storytelling and framing, establish their identities, promote their visions, and set expectations for themselves and their stakeholders. Yet, framing the future can easily turn into a vicious cycle of expanding deceit if expectations cannot be met and entrepreneurs attempt to deliver at all costs. Entrepreneurs should take a few steps to protect themselves: 1) set realistic stretch goals and keep stakeholders informed of the risks, 2) understand the “fail” in “fail fast” as rapid experimentation to identify promising alternatives, not a license to take poorly conceived risks, and 3) be realistic when creating early prototypes and reporting on milestones.

Navigating the Deception Trap: Essential Strategies for Entrepreneurs

## The Pros and Cons of Making Advanced Chips in America

As **AI chip designs diversify**, US semiconductor fabs are eager to capitalize on the **AI boom**. Companies like **Groq** and **Positron AI** are leveraging domestic manufacturing to enhance their offerings in the **AI chip market**. The strategic decision to produce advanced chips in America comes with both benefits and challenges that are reshaping the landscape of technology and manufacturing.

### Benefits of Domestic Chip Production
- **Supply Chain Security**: Manufacturing chips in the US reduces reliance on overseas suppliers, ensuring a more stable supply chain.
- **Innovation Boost**: Proximity to research institutions and tech hubs fosters **collaboration** and **innovation**, driving advancements in chip technology.
- **Job Creation**: Establishing fabs in America is likely to create thousands of high-tech jobs, positively impacting the economy.

### Challenges Ahead
- **High Costs**: Building and maintaining semiconductor fabs in the US can be significantly more expensive than overseas production, impacting profitability.
- **Regulatory Hurdles**: Navigating the complex landscape of **US regulations** and securing funding can pose challenges for startups.
- **Competition**: With established players like Nvidia dominating the AI chip market, new entrants face stiff competition.

![AI Chip Manufacturing](https://i.insider.com/677811ed9de00e389eb44597?width=700)
*As AI chip designs diversify beyond Nvidia's GPU, US semiconductor fabs press their noses up against the window of the AI boom.*

In conclusion, while the move to domestic chip production presents exciting opportunities for innovation and economic growth, it also brings significant challenges that startups must navigate carefully to succeed in this competitive landscape.

Groq and Positron AI are tapping  US semiconductor fabs to offer more value in the AI chip market

Unlocking the Future: The Impact of American Chip Manufacturing on AI Innovation

### Discovering a New Era of Mineral Extraction

**Alta Resource Technologies**, a Colorado-based startup, has successfully raised **$5.1 million** in an oversubscribed seed funding round, co-led by **DCVC** and **Voyager Ventures**. This funding aims to enhance the extraction of critical minerals, particularly **rare earth elements** like **neodymium** and **dysprosium**, essential for modern technologies including electric vehicles and wind turbines.

![Rare Earth Elements](https://www.mining.com/wp-content/uploads/2023/04/rare-earth-adobe-1024x576.jpeg)

### Innovative Biochemistry Platform

Alta has developed a unique **biochemistry platform**, leveraging technology licensed from the **Lawrence Livermore National Laboratory** and collaborating with researchers from **Pennsylvania State University**. The startup's technology utilizes custom-designed proteins that act as microscopic robots, enabling the **cost-effective separation** of high-purity rare earth elements from low-grade sources, which conventional methods cannot process.

### Funding and Support

In addition to the seed funding, Alta has secured nearly **$1 million in grants** from the federal government, including support from the **Department of Defense’s DARPA** and the **State of Colorado**. Previous funding was also provided by **Baruch Future Ventures** and **Climate Capital**.

### Growing Demand for Rare Earth Metals

The demand for rare earth metals is projected to grow at a **10.4% CAGR** from 2024 to 2033. Currently, the only producing rare earth mine in the US is **MP Materials’ Mountain Pass** in California. The Department of Defense is actively pursuing strategies to develop domestic supply chains for these essential materials to ensure national security and economic stability.

### A Vision for the Future

“**Biology has solved the problem of ultra-selective mineral separation** over billions of years, but translating that into practical applications has been elusive – until now,” said **Nathan Ratledge**, CEO of Alta. He emphasized that their technology can unlock vast untapped mineral resources domestically, strengthening supply chains while adhering to environmentally responsible mining practices.

Alta aims to increase supplies of rare earth elements like neodymium and dysprosium by cost-effectively separating them from abundant low-grade sources.

Colorado Startup Secures $5.1M to Revolutionize Rare Earth Element Extraction with Biochemistry

### Toyota Ventures into Space

**Toyota Motor Corp.** is making waves in the commercial space industry by investing **¥7 billion ($44 million)** in **Interstellar Technologies Inc.**, a Japanese startup focused on mass-producing lightweight rockets. Through its subsidiary **Woven by Toyota**, the automotive giant will also secure a seat on the startup's executive board.

### Japan's Space Ambitions

Despite Japan's **limited space launches**, with only **three successful missions in 2023**, the government is keen on fostering its private space sector. Interstellar Technologies aims to increase its annual launches to **30 by the early 2030s**, leveraging automotive expertise to enhance rocket manufacturing processes.

### Toyota's Broader Vision

During a recent speech at **CES in Las Vegas**, Toyota Chairman **Akio Toyoda** emphasized the company's commitment to innovation in transportation, hinting at its ambitions to compete with **SpaceX**. He stated, *“The future of mobility shouldn’t be limited to just cars.”*

### Collaborations for Lunar Exploration

Toyota has previously collaborated with the **Japan Aerospace Exploration Agency (JAXA)** on a **lunar rover** for NASA’s Artemis program, allowing astronauts to explore the moon without spacesuits. 

### Challenges Ahead

While Japan has made strides in satellite technology, its geography poses challenges for establishing a comprehensive launch facility network. Recent failures, such as those experienced by **Space One Co.**, highlight the difficulties in reaching orbit.

### Future of Mobility

**Hajime Kumabe**, CEO of Woven, stated, *“Our craftsmanship expertise will be an asset to Interstellar’s rocket manufacturing.”* This investment is seen as a strategic move for Toyota to expand its influence beyond traditional vehicles and into the realms of **air and space travel**. 

### Partnerships in Tech

At CES, it was also revealed that Toyota is now a customer of **Nvidia**, utilizing its **autonomous driving AI products** to enhance its technological capabilities.

As the US launches more than 100 rockets every year, and China several dozen, Japan’s successful space voyages are still in the single digits.

Toyota's Bold Move: Investing in Rocket Startup to Compete with SpaceX

### The Birth of Pacas
In 2015, brothers **Christian** and **Justin Arquilla** transitioned from finance to the sock industry, founding **Pacas**. Their entrepreneurial journey began in 2013 when Justin's wife suggested he wear no-show socks due to his smelly shoes. 

### Identifying a Gap in the Market
Justin struggled to find a suitable pair of no-show socks that didn’t slip or show. This prompted him to call Christian, leading to the creation of **Gekks**, a no-show sock made with **silver antimicrobial yarn**. By 2019, 90% of Gekks' revenue stemmed from women's products, particularly a ballet flat design.

### Adapting to Challenges
With the onset of the **COVID-19 pandemic** in March 2020, the brothers faced declining sales as fewer professionals needed office wear. They pivoted towards **alpaca fiber** socks after discovering the material during a visit to a hosiery mill.

### Launching Pacas
In 2017, they began developing alpaca socks to provide comfort for children in hospitals. The **Pacas** brand launched in October 2020, generating **$400,000** in its first month and achieving over **$45 million** in revenue within three years, selling **3.2 million pairs** of socks. They also partnered with local children's hospitals to donate socks.

### The Future of Pacas
Today, Pacas is the brothers' main focus, while Gekks continues to generate revenue. They've learned that as they scale, the challenges become more complex, emphasizing the importance of **problem-solving** in entrepreneurship. The brothers highlight that the entrepreneurial landscape is increasingly competitive, driven by social media and direct-to-consumer channels.

![Pacas Socks](https://assets.entrepreneur.com/images/misc/1736276651_6330.jpg?width=1000)
*Image credit: Courtesy of Pacas*

In 2015, brothers Christian and Justin Arquilla became ex-finance guys in the business of socks. The duo started and grew their brand Pacas to over $45 million.

From Finance to Footwear: How Two Brothers Built a $45M Sock Empire in Just 3 Years

In a recent **WeChat post**, the **Beijing-based startup 01.AI** firmly rejected claims of planning to sell its **pre-training team** and other vital assets to **Alibaba Cloud**, labeling the rumors as **'vicious slander.'** This assertion comes amidst discussions about the company's financial challenges. 

### Background on 01.AI
Founded by **Lee Kai-fu**, who also chairs **Sinovation Ventures** and previously held the position of president at **Google China**, 01.AI achieved a **valuation exceeding US$1 billion** in 2023 following a successful funding round that included **Alibaba Cloud** as an investor. The company reported a revenue of over **100 million yuan (approximately US$13.7 million)** in 2024, with expectations for growth this year.

### Future Plans
Lee announced that 01.AI will focus on **AI applications in 2025**, anticipating a period of **explosive growth** amid fierce competition within the **AI sector in China.** 

Neither 01.AI nor Alibaba Cloud has responded to media inquiries regarding these rumors as of Tuesday.

01.AI denounced as ‘vicious slander’ talks that it was looking to sell its pre-training team and other assets owing to business difficulty.

01.AI's Bold Denial: No Asset Sale to Alibaba Cloud Amidst Business Challenges

Global venture **funding** in **2024** saw a **3% increase** over **2023**, totaling nearly **$314 billion**. A significant portion of this growth can be attributed to the **artificial intelligence (AI)** sector, which experienced a staggering **80% year-over-year increase** in funding, reaching over **$100 billion**. 

### Breakout Year for AI
One of the most notable trends in **2024** was the dominance of **AI-related companies**, receiving close to **one-third** of all global venture funding. This surge not only surpassed previous years but also marked a peak for the AI sector over the last decade. 

### Q4 Push
The **fourth quarter** of **2024** was particularly robust, with funding totaling **$93 billion**, a **36% increase** from the same quarter in **2023**. This quarter closed with **three companies** raising a combined **$22 billion** in the largest rounds of the year. 

### Large Values, Billion-Dollar Rounds
A remarkable **19%** of total funding in **2024** went to **billion-dollar rounds**, predominantly driven by the AI sector. Notable companies like **OpenAI**, **Databricks**, and **xAI** achieved monumental valuations and attracted massive investments. 

### US Gains, Silicon Valley Fired Up
The **U.S.** accounted for **57%** of total global funding, with **$178 billion** raised, showcasing a significant increase from **48%** in **2023**. The **San Francisco Bay Area** alone saw **$90 billion** in funding, up from **$59 billion** the previous year. 

### Late-Stage Q4 Boom
Late-stage funding surged to **$61 billion** in Q4, a **70% increase** from the previous quarter, indicating a strong recovery in the market. This boom was reflected across various sectors, including **AI**, **energy**, and **banking**. 

### Early Stage Flat
In contrast, early-stage funding remained **flat**, indicating a potential slowdown in new ventures entering the market. 

### Seed Settled
**Seed funding** saw a decline, totaling **$7 billion**, down **16%** from the previous year, though this may adjust as more data is reported. 

### Liquidity Hold-Up
**2024** was a slow year for **exits**, with **M&A** activity slightly up but still below expectations, particularly in the **biotech** and **cybersecurity** sectors. The **IPO market** also faced challenges, although it ended on a positive note with the successful IPO of **ServiceTitan**. 

### Methodology
The insights shared are based on data from **Crunchbase**, reported as of **January 3, 2025**. All funding values are expressed in **U.S. dollars** unless otherwise noted.

Global venture funding in 2024 edged above 2023’s totals, with AI showing the biggest leap in amounts year to year. Overall startup funding in 2024 reached close to $314 billion — compared to $304 billion in 2023 — up around 3%, based on an analysis of Crunchbase data.

Exciting Tech Events to Watch for in 2025: Sifted's Attendance Line-up

Summary:

Get Ready for 2025

Key Events to Look Out For

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Other Latest News

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Colorado Startup Secures $5.1M to Revolutionize Rare Earth Element Extraction with Biochemistry

Toyota's Bold Move: Investing in Rocket Startup to Compete with SpaceX

From Finance to Footwear: How Two Brothers Built a $45M Sock Empire in Just 3 Years

01.AI's Bold Denial: No Asset Sale to Alibaba Cloud Amidst Business Challenges

2024: The Year AI Dominated Startup Funding with Record-Breaking Investments