When Keith Rabois announced he was leaving Founders Fund to return to Khosla Ventures in January, it came as a shock to many in the venture capital ecosystem — and not just because Rabois is a big name in the industry. It was surprising because unlike in many other fields, venture capitalists don’t traditionally move […]
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Rivian lost $1.45 billion in the first quarter, showing that its recent company-wide cost-cutting measures have a ways to go before it can approach profitability.
The EV-maker brought in $1.2 billion in revenue in the period, coming in just under its record haul from the prior quarter, according to its first-quarter earnings report that was released Tuesday after markets closed. That’s slightly more than the $1.16 billion expected by Yahoo Finance analysts. Rivian’s revenue grew 82% from the $661 million it generated in the first quarter in 2023.
Still, that wasn’t enough to assuage shareholders. Rivian’s shares fell more than 4% in after-hours trading.
The Q1 revenue figure, while showing growth year-over-year, reflected a somewhat tepid sales quarter. The company reported in April it produced 13,980 vehicles and delivered 13,588 of them in the first quarter of 2024. Both of those figures are down from the fourth quarter of 2023, where it built 17,541 and shipped 13,972.
Rivian reaffirmed on Tuesday that it plans to make around the same number of EVs as it did in 2023.
Rivian had an eventful first quarter that included a splashy reveal of its future R2 and R3 EV lineup as well as more belt tightening and layoffs. In February, Rivian laid off 10% of its workforce as the EV startup tried to rein in costs. This was the third round of layoffs for the EV company since July 2022, when Rivian cut 6% of its workforce. The company cut another 6% of jobs in February 2023.
This story is developing…
When Keith Rabois announced he was leaving Founders Fund to return to Khosla Ventures in January, it came as a shock to many in the venture capital ecosystem — and not just because Rabois is a big name in the industry.
It was surprising because unlike in many other fields, venture capitalists don’t traditionally move around very much — especially those that reach the partner or general partner level as Rabois had.
VC funds have 10-year life cycles and partners have good reason to stay that course. In some instances, they may be a “key man” on a firm’s fund meaning that if they leave, the fund’s LPs have the right to pull their capital out if they choose. Many partners and GPs also have some of their own money invested in their firms’ funds which gives them further reason to stick around.
So, while big-name investor moves in venture capital aren’t common, they seem to have become so in recent months. So far this year, there have been notable instances of investors returning to old firms, striking out on their own or taking a pause from investing entirely.
Just today, Vic Singh, one of the co-founders of Eniac Ventures announced he was stepping down from the firm he helped launch in 2009 to launch his own.
Singh joins a growing list of VCs who have left firms recently:
Full Glass Wine, a brand acquisition management startup that specializes in acquiring wine marketplaces, has raised a $14 million Series A round to continue acquiring DTC (direct-to-consumer) wine marketplaces, aiming to lead the DTC wine market.
DTC wine brands sell wine directly to wine lovers, bypassing traditional distribution channels
Full Glass Wine recently acquired Bright Cellars, a subscription-based wine service provider in Wisconsin, for an undisclosed price. The deal is its third acquisition in a year and will enable the startup to expand its subscription-based model. Previous acquisitions include Winc, a DTC wine platform that offers personalized recommendations and a subscription service, in June 2023; and Wine Insiders, a marketplace that curates a selection of high-quality wines from around the world at accessible prices, in October 2023.
“By uniting Winc, Wine Insiders, and Bright Cellars, we offer a one-stop shop for all things wine, catering to a wider range of wine drinkers than most traditional retailers, grocers, or single-brand DTC companies,” Neha Kumar, co-founder and COO of Full Glass Wine, told TechCrunch. “This comprehensive portfolio allows the company to optimize logistics for efficient delivery and leverage the power of established brands to create a powerful marketing platform.”
The company also intends to invest more in technology with the new capital. “Bright Cellars, our most recent acquisition, has developed a wine-pairing algorithm that learns from user preferences and ratings. This approach, similar to how platforms like Spotify and Netflix personalize content recommendations, allows us to create a more tailored experience for each customer,” Kumar said. “Our goal is to leverage data and AI to make personalized wine recommendations even more accurate and insightful, ensuring every customer discovers and enjoys wines they truly love.”
The DTC wine industry is brimming with potential but one of the hurdles is navigating the complex web of regulations across different states, according to Kumar.
“Ensuring a seamless customer experience, from discovery to delivery, requires constant innovation and focus,” she continued. “However, there are also some misconceptions consumers might have about DTC wine. Concerns about quality are addressed through partnerships with reputable vineyards and rigorous selection processes. Value is a consideration but we offer a range of price points to cater to diverse budgets. Perhaps the biggest challenge is the initial discovery process — finding the right wines can feel overwhelming. That’s where personalization comes in — we leverage data and technology to help consumers discover wines they’ll truly love.”
Full Glass Wine CEO Louis Amoroso and COO Neha Kumar. Image Credits: Full Glass Wine
Co-founded in 2023 by Louis Amoroso (CEO), a serial entrepreneur in the wine industry and former partner at Goose Island Beer Company, and Kumar (COO), a former managing director at New Money Ventures, the startup is open to exploring partnerships with businesses to expand its platform’s reach and offerings.
“It could involve collaborations with wineries, food delivery services, or event planners to create unique experiences for its customers directly within the platform,” Kumar continued.
The company is still working through the integration process to ensure a smooth transition for everyone involved after the recent acquisition.
“We’re looking at a total of at least a few dozen employees now at Full Glass Wine,” Kumar said. “There will be significant growth on our team, which [will] strengthen our combined expertise and allow us to offer a wider range of services to our customers.”
The startup did not provide the number of subscribers it has but said the acquisitions will help it generate more than $100 million in revenue in 2024. It plans to offer a diverse selection of over 400 SKUs and an accessible price range for customers; most bottles range from $12 to $25.
Shea Ventures led the Series A funding.
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