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CEO's advice to app makers as 'gold rush' ends

Nov 29, 2024 - businessinsider.com
Procreate CEO James Cuda has warned that VC funding for apps has significantly decreased, making it more challenging for new apps to enter the market. He suggests that aspiring app founders should take bold risks and avoid following trends to succeed in the current landscape. He cited Uber as an example of an app that made a significant impact by introducing a unique concept.

Despite the overall startup market facing a slowdown, AI startups are receiving substantial funding, with 35.5% of VC deals in Q3 related to AI and machine learning. This is a 25% increase from Q1 2019. Cuda advises against following trends as established products already dominate these areas. He also revealed that his company has decided to keep AI out of its products.

Key takeaways:

  • Procreate CEO James Cuda has stated that VC funding for apps has significantly decreased, making it more difficult for new apps to enter the market.
  • Despite this, Cuda believes there is still potential for success in the app market, advising aspiring app founders to take bold risks and avoid following trends.
  • AI startups are currently receiving significant funding, with 35.5% of VC deals in the third quarter related to AI and machine learning, a 25% increase from the first quarter of 2019.
  • Cuda named Uber as an example of a successful app that made an impact by doing something different and not following trends.
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