Hi there,

Here is this week in charts.

What goes up... After 8 consecutive quarters of growth, funding to healthcare AI startups dropped 32% quarter-over-quarter — though it remained elevated compared to pre-2021 levels. This was due in part to a drop in $100M+ healthcare AI deals. Overall, global AI funding topped $15B in Q1. Q2 will be telling in terms of how significant the pullback will be. Get all the details in our State of AI Q1’22 Report.

Into the ether. NFT sales have cooled off considerably. In the first week of May, daily average NFT sales were 92% below their peak in September, according to NonFungible. Meanwhile, funding to startups in the space has never been higher. NFT startups raised $2.4B in funding in Q1’22, representing one-fourth of all blockchain funding. Of course, Q1 is now long behind us. It remains to be seen whether the current NFT sales downturn represents the beginning of the end of a speculative grift — or simply a bump in the road of an important future technology.

Belt-tightening. In the early months of the pandemic, Silicon Valley tech companies slashed thousands of jobs. Since then, companies have been in a race to hire tech talent. Now, as the tech sector corrects course, layoffs have been announced at companies like Cameo, Peloton, and Robinhood. In addition, large tech cos like Uber and Meta have said they plan to slow hiring. While unemployment is at a recent low, all of this has stoked fears of a greater reckoning to come in startup land. The past year’s flood of capital may provide a cushion, but belt-tightening looks like it’s here to stay.

It’s getting hot in here. Lithium — a mineral vital for EV battery production — is expected to see intense demand as countries around the world look to accelerate the transition to clean energy. By 2040, at least 40x more lithium will be needed than today to reach the Paris Agreement’s climate targets. While most lithium is mined in Australia, Chile, and China, lithium resources can be found in other locations across the globe — like the lithium-rich US, which only mines and processes 1% of the global supply. As the US looks to increase its domestic production, EV manufacturers are using various strategies to mitigate the risk of supply constraints. Tesla, for instance, is negotiating directly with mining companies to secure the supply of raw materials.

Oh baby! A massive baby formula shortage in the US is sending parents scrambling. Due to supply chain issues, an extensive recall, and a baby formula cartel not allowing most imports of formula, 40% of baby formula products were out of stock in the US near the end of April. 

Donut want a 1927 donut. We’re diverging a bit from our typical +1 content, but we love some good donut research.
 

I love you.

P.S. Digital health funding tumbled in 2022. Get the scoop in our upcoming webinar.