What caught my eye this week

New York’s Growing Appeal: Why European Founders Prefer NYC to Silicon Valley

In recent years, New York City has become a hotspot for European founders looking to break into the US market, overtaking Silicon Valley as the preferred destination. Known for its diverse and cosmopolitan atmosphere, NYC offers startups access to talent, capital, and customers, while fostering an entrepreneurial spirit. Founders like Jenny von Podewils of Leapsome praise the city’s livability and dynamic culture, where tech coexists with media, arts, and finance, unlike the tech-centric Silicon Valley.

The practical benefits of New York further strengthen its allure. Its location on the East Coast allows for better time zone overlap with Europe, and the city’s extensive travel networks make it easy to reach key US markets. In addition, NYC has witnessed a surge in tech talent, surpassing San Francisco, and has a growing community of European founders and investors. This community offers valuable support, from business advice to social connections, making the transition to NYC smoother for newcomers.

Despite New York’s steep living costs, founders find the city’s ambitious and collaborative energy inspiring. The high stakes drive them to succeed, with many founders bootstrapping by sharing apartments or even rooms. This sense of hunger and determination is why many European entrepreneurs are drawn to the Big Apple, seeking a foothold in the competitive US market where the entrepreneurial culture is more daring and open than back home.

🔗Source: Sifted

Startups Shine with Photonics, Diamond Chips, and Fresh Capital

This week, the startup world saw a burst of funding and acquisitions across diverse sectors, with a global focus. Notably, Indian startup Table Space is preparing for a $2.5 billion IPO, marking India’s rise in tech IPOs. Meanwhile, cybersecurity unicorn Cyera made its first acquisition, purchasing Trail Security for $162 million. On the other side of the globe, Amplitude expanded by acquiring Command AI, a user engagement startup, for more than $45 million. Unfortunately, not all startups made it through, with YC-backed fintech CapWay closing its doors.

Among the week's standout fundraises, Lightmatter grabbed attention with its $400 million Series D round, propelling its mission to reduce the energy footprint of AI models and data centers using photonic chips. Similarly, Japanese startup Ookuma Diamond Device raised $27 million to develop diamond semiconductors that could aid in removing radioactive waste. Other notable fundraisers include X-Energy securing $500 million to push forward nuclear tech and Fable raising $25 million to enhance digital accessibility for people with disabilities.

In venture capital news, 20VC closed a $400 million fund as part of its mission to rejuvenate Europe’s startup scene. Meanwhile, Nordic firm Node.vc secured €71 million for its debut fund. The week also marked a somber moment for the tech community, as former TechCrunch journalist Steve O’Hear passed away, leaving behind a legacy of impactful reporting and support for founders worldwide.

🔗Source: Techcrunch

TikTok Under Fire for Approving Election Misinformation Ads Despite Ban

Just weeks before the U.S. presidential election, TikTok is facing scrutiny after approving ads containing election misinformation, despite its own ban on political advertising. A report from watchdog Global Witness revealed that the platform approved four out of eight ads submitted as part of a test on how well social media companies detect false election-related claims. These ads, which never went live, included disinformation about voting processes, such as falsely stating that Americans could vote online.

While TikTok has enforced a political ad ban since 2019, this lapse raised concerns about its content moderation systems. TikTok acknowledged the issue, stating that the ads were incorrectly approved in the first stage of review but did not run on the platform. In comparison, Meta’s Facebook performed better, approving just one out of eight ads, while YouTube flagged all the ads for further scrutiny, asking for additional identification before pausing the account in question.

The report highlights the challenges social media companies face in preventing election disinformation, especially when deceptive techniques like "algospeak"—substituting letters with numbers or symbols to bypass moderation systems—are used. Despite improvements since previous investigations, TikTok’s failure to block these ads raises questions about its preparedness for handling election integrity.

🔗Source: Fast Company

Uber and Lyft: Lifelines for Rural and Elderly Patients Seeking Medical Care

As rural hospital closures and transportation challenges mount, many Americans, particularly in rural areas and among the elderly, are turning to Uber and Lyft for access to critical medical services. In states like Georgia, where patients may need to travel hours for cancer treatment or other care, ride-hailing services have become essential, offering a vital link to hospitals in cities like Atlanta. These services are especially critical where public transportation is scarce, and long journeys for treatment are the norm, with drivers often doubling as social support during these trips.

The issue of medical transport is growing in urgency. Lyft alone facilitated thousands of long-distance medical rides in Georgia, with many trips exceeding 100 miles. Both Uber and Lyft have launched health care divisions to streamline this process, partnering with Medicare and Medicaid programs to reduce missed appointments and provide affordable rides. Yet, despite these programs, many rural patients still face barriers to care, exacerbated by the scarcity of ride-hailing services in these areas, along with challenges in finding drivers willing to take medical transport jobs.

Experts suggest a broader systemic fix, advocating for Medicaid expansion to keep rural hospitals open and provide closer access to care. In the meantime, subsidies for ride-hailing services could offer a temporary solution, ensuring more patients in need can reach essential medical services. As Lyft and Uber continue to play a growing role in health care access, the debate intensifies over how best to bridge the gap between transportation and medical care for underserved populations.

🔗Source: Fortune

China’s Economic Slowdown Worsens, Government Growth Target at Risk

China’s economy expanded at its slowest pace since early 2023, growing 4.6% in the third quarter—below the government’s "around 5%" annual target. Despite surpassing analyst predictions, the slowdown reflects the broader challenges facing China, including a declining property market and weak consumer confidence. The second consecutive quarter of sub-5% growth has sparked concerns that meeting the year’s target will be difficult without significant intervention from Beijing.

The property sector remains a key obstacle, with new home prices falling at their fastest rate in nearly a decade. Economists like Lynn Song of ING highlight that housing prices and oversupply continue to drag on the economy. Despite recent efforts from China’s central bank and financial institutions, such as interest rate cuts and a substantial stimulus package, investment in the property market has yet to recover. As a result, the government faces growing pressure to stabilize this sector before it can achieve its broader economic goals.

While some, like Moody’s economist Harry Murphy Cruise, remain optimistic that recent measures will help China reach its growth target, experts like former IMF official Eswar Prasad warn that it may take a more substantial stimulus boost in the final quarter to hit the mark. With Beijing unveiling further plans to encourage lending and support growth, the world's second-largest economy will need to overcome its structural challenges to stabilize and revive momentum.

🔗Source: BBC News & The Guardian