#13 Edition of The Daily Grind

In today’s newsletter:

• TikTok is where ecommerce is going down: See how this author hoped on the hottest trend made $4million in 30 days on TikTok shop.

• A.I. is now the #1 industry in Equity Crowdfunding

• Hyundai and the Saudi’s have teamed up

• and a fudge ton more….

TikTok is where ecommerce is going down:

For those feeling as though they've missed previous ecommerce waves like dropshipping, TikTok has officially launched its in-app marketplace in the U.S., UK and South East Asia.

The new marketplace offers a new revenue stream that's already showing significant potential.

Keila, creator of the Shadow Work Journal, added her ebook to the TikTok shop and generated a massive $4,000,000 in sales in just the last 30 days.

Unlike Instagram, which has selective vendor policies, TikTok has made its platform accessible to any business located in the U.S., the U.K., or South East Asia. It has also built a creator marketplace for easy affiliation and payment processes.

Here's why TikTok rules the ecommerce game, according to a survey by Business Insider and NT Technology:

• 42% of users say they’re on TikTok to discover new things and brands.

• 67% believe that the platform gives them ideas about new brands and products.

• 57% have been inspired to purchase something they saw on TikTok.

• 83% say that TikTok played a role in their purchase decision.

Basically, TikTok has built an innovative marketplace where sellers can easily reach out to influencers and give them affiliate fees - all handled through the TikTok infrastructure.

TikTok is giving extra algorithmic push to user-generated content around its Shop and is subsidizing $15-$25 for each customer's first purchase. This subsidy can essentially make products free for consumers and offers a unique incentive for new businesses.

The TikTok shop was fully launched in the U.S. on September 12, 2023. The opportunity is ripe now but may get oversaturated within the next 6-12 months.

Forget legacy platforms; TikTok presents a fresh canvas for initiatives like dropshipping, affiliate marketing, and direct brand creation. TikTok has also announced partnerships with established ecommerce platforms like Shopify and WooCommerce.

This is a massive opportunity to capitalize on the TikTok subsidy and ride the wave of the algorithmic push around TikTok Shop products.

With a less saturated ad market, a hungry audience, and unique perks like algorithmic push and consumer subsidies, TikTok's marketplace offers a fertile ground for ecommerce entrepreneurs to start new ventures.

A.I. is the #1 industry in Equity Crowdfunding

• Artificial Intelligence (AI) is a thriving sector in equity crowdfunding, with 24 live companies and an average valuation of $27.0 million.

• Also having an average 209.1x price to sales.

• AI companies demonstrate impressive average revenue growth of 298.4%, signifying rapid scaling and increasing revenues.

• Despite not having the highest valuation, AI's potential for future growth and profitability attracts investors.

• AI startups have a high monthly burn rate of $229.0k and an average EPS of $-0.08, emphasizing the high-risk, high-reward nature of investments.

• Some of the top AI startups in equity crowdfunding, based on Hubtas's data and analytics, include Artiy, Clockwork, Momento Labs, and ACME ATRONOMATIC.

• AI's increasing popularity in equity crowdfunding highlights its potential for future technological advancements.

• Investors should conduct thorough due diligence to understand the risks and rewards associated with AI investments.

Wanna read more on the topic here’s the link to the original post. Loved the detailed yet short and interesting read.

SNIPPETS

• Hyundai is set to construct a car plant in Saudi Arabia in partnership with the Saudi wealth fund, PIF. The joint venture will see PIF holding 70% and Hyundai with the remaining 30%. The total project investment is estimated to surpass $500 million. This initiative aligns with Saudi Arabia's goal to diversify its economy away from oil, aiming to produce over 300,000 cars annually by 2030.

• In a sustainability drive, Microsoft has inked a power purchase agreement with nuclear fusion startup Helion. The deal secures a minimum of 50 megawatts of electricity starting in 2028.

• Italian oil major Eni has agreed to buy most of London-based oil and gas company Neptune Energy for $4.9 billion in cash from a group of private equity firms.

• Netflix added 8.76m subscribers in Q3 for a total of 247.2m, crediting its programming and password-sharing crackdown, and announced price hikes for some US, UK, and French customers.

• Reddit is getting rid of its blockchain-powered Community Points tokens. The social media app said it was due to regulatory and "resourcing" concerns.

• According to Similarweb, X’s global web traffic was down 14% YoY in September with U.S. traffic down 19% and U.S. mobile performance down 17.8%. It’s not all bad though… traffic to Elon Musk’s profile was up 96%.

• There’s ‘great hope’ for bitcoin spot ETF approval in 2024, says Bitwise’s general counsel.

AROUND THE WEB

• The podcast of the day is a relaxed conversation about my guilty pleasure watches, featuring John Mayer and Ed Sheeran. They are discussing watches on the Hodinkee channel.

• Here is an organised directory of 500+ free A.I. tools. This is also a lead which is given in our welcome email.

• The reddit that i’ve been on a lot lately is r/dadjokes.