🏦 The Bulletin #73: Tariffs, Twins, and Trouble in Tech
In this week's bulletin - Market shifts, all things tariffs, the AI revolution in fashion, and what’s next for tech innovation 🔬 📊
Hey! Welcome back to the VWV Bulletin! We hope you had a restful weekend. This week, we’re covering the latest news and moves in VC and tech—let’s get into it!
📌 For this semester, keep up with our content if you’re interested in:
Demystifying & breaking into VC
Finding opportunities in the start-up world
Keeping up with VC investment news at Brown & beyond (pro tip: this is essential to breaking in and finding opportunities)
Enjoy the Bulletin! 🪩
📉 Liberation Day or Market Mayday?
Tariffs Hit Tech and Send Investors Scrambling
Tariffs hit tech, and investors are not thrilled. In the first full day of trading since the Trump administration announced sweeping worldwide tariffs, the Nasdaq fell 6% — its worst drop since 2020. Apple took the biggest hit, tumbling over 9%.
🚨 Venture Capitalists Sound Alarm
Here’s the bigger picture though: VCs are taking a hard look at how these tariffs will affect their portfolios. “Tariffs are expected to affect venture firms and venture-backed companies, especially those in hard tech and physical technology sectors that depend on tariffed materials,” says Marlon Nichols, co-founder and managing general partner at MaC Venture Capital.
For hardware and AI startups, the impact could be significant. Countries like Taiwan, China, the Philippines, and Vietnam are critical to global supply chains. But it's not just the consumer tech sector that will suffer; hardware is also an essential input for AI and cloud-based services.
⚠️ AI Innovation At Risk
Thomvest Ventures’ Umesh Padval is particularly concerned about the long-term effects on AI. He points out that while AI compute costs per token have dropped by 90% over the past three years, tariffs on AI, networking, and power chips could reverse that trend, increasing compute costs. “If chip prices rise sustainably, it could negatively impact AI startups and their customers,” Padval explained (Fortune). The fear is that these rising costs could stifle innovation, especially for younger software engineers who might not yet understand the cyclical nature of the industry.
🤷♀️ The Silver Lining
Despite what your X feed might suggest, not all VCs are completely pessimistic. While they recognize the challenges, some see opportunities arising from the changing economic landscape. Eclipse Ventures partner Aidan Madigan-Curtis notes that U.S. businesses previously unable to compete globally may now find new competitive advantages. “U.S. businesses that may have previously not been ‘globally’ competitive may now be able to win on a unit-economics basis, opening up a new frontier of venture-backable businesses,” she said.
Vanessa Larco, a former NEA partner, sees opportunities for startups that cater to changing consumer behavior. “It’s only going to push consumers to reconsider their purchases,” Larco said. “More people are going to look for bargains more than usual. I’m looking for companies that help people save money because I think this trend will continue.”
🚧 The Road Ahead & What’s Next?
Redpoint partner Meera Clark highlighted that the uncertainty surrounding tariffs poses significant risks to all industries, including consumer companies. “Tariffs create dark clouds for everyone, consumer companies included,” Clark said. “Whether it’s weaker spending power from end customers or depressed capital availability in the event of a downturn, no one is immune. That said, with chaos comes new possibilities…Your sucker punch is their opportunity.”
Ultimately, much of the future of this situation depends on the final tariff rates. Padval believes the current tariff rates could be a negotiating tactic, and the impact won’t be clear until the rates settle. “If it’s 5%, it won’t make a difference. If it’s 30%, it will make a difference,” he said. "You tell me a number. I’ll tell you about the economy.”
Startups will need to be proactive and aggressive in navigating these uncertain times, as will their investors. Promise Phelon, founder and managing partner at Growth Warrior Capital, predicts that many will be “holding their breath” to see what happens with the tariffs (Fortune). The uncertain economic climate is likely to delay exit opportunities, making it a tough environment for VCs focused on liquidity.
🤖 Amazon’s Nova Act: The AI Agent That Does More Than Browse
From filling out forms to booking appointments, Amazon's new AI agent automates web tasks—ushering in the future of hands-free browsing.
Amazon's AGI Labs has recently introduced Nova Act, an AI agent system designed to autonomously navigate and perform tasks within web browsers. Accompanying this release is a Software Development Kit (SDK) that empowers developers to create agents capable of executing complex, multi-step actions across the web.
Key Features of Nova Act 🦾
Advanced Browser Automation: Nova Act enables AI agents to perform tasks such as filling out forms, navigating websites, and managing online calendars without human intervention. This positions it ahead of competitors like OpenAI's Computer Use Agent and Anthropic's Claude 3.7 Sonnet in reliability benchmarks for browser-based tasks.
Developer SDK: The provided SDK allows developers to build AI agents capable of interacting with web elements like drop-downs, date pickers, and pop-ups. These agents can handle step-by-step processes such as online ordering and appointment scheduling, operating both in visible browser sessions and headless modes for backend automation.
Integration with Alexa+: Nova Act is set to enhance Amazon's upcoming Alexa+ upgrade by introducing generative AI capabilities that improve conversational interactions and task execution. This integration aims to bring sophisticated AI agents to millions of existing Alexa users.
Developments & Leadership
Nova Act is the inaugural product from Amazon’s AGI Labs, a division focused on advancing artificial general intelligence. The lab is led by former OpenAI researchers David Luan and Pieter Abbeel, who joined Amazon in the previous year. Their expertise has been instrumental in developing AI agents capable of complex, autonomous actions within web environments.
Why We Care
Amazon hasn’t been the first name that comes to mind for AI, but its massive Alexa user base will make it one of the first to bring the tech to mainstream consumer applications. By focusing on practical applications of AI agents, Amazon aims to enhance user experiences through automation and intelligent assistance. The success of Nova Act will be pivotal in establishing public trust in autonomous AI systems and could position Amazon as a significant player in the evolving AI landscape.
🍎 An Apple a Day Keeps the Doctor…Here?
Apple's AI Health Coach Poised to Revolutionize Personal Wellness
Apple is reportedly working on “Project Mulberry,” a major upgrade to its Health app with an AI-powered coach that can track everything from your sleep to your squat form. The update (coming in iOS 19.4, 2026) includes:
Personalized Health Recommendations: The AI coach will analyze data from devices like iPhones and Apple Watches to provide tailored advice on fitness, nutrition, sleep, and mental well-being.
Food Tracking and Exercise Form Analysis: Users may gain tools for monitoring dietary intake and assessing exercise techniques, utilizing device cameras to offer real-time feedback on workout forms.
Expert-Led Health Content: Apple plans to collaborate with medical professionals across various fields to produce educational videos, enhancing user understanding of health topics.
Why We Care
This development signifies Apple's deepening involvement in digital health, aiming to provide users with proactive health management tools. By integrating AI-driven insights and expert content, Apple seeks to offer a comprehensive health monitoring experience. However, the effectiveness and user reception of these features will be crucial in determining their impact on personal health management.
Apple’s first AI launches haven’t been smooth sailing, but this one could be different. If they pull it off, this might be the moment Apple truly delivers on its promise to revolutionize healthcare.
👯♀️ Please Don’t Call Me Twin
H&M rolls of AI model campaign, spurs ethical debates and marks a significant shift in the Fashion Tech space
Fashion meets the uncanny valley. H&M is rolling out a new campaign featuring AI-generated “digital twins” of real-life models, stirring fresh ethical debates across the fashion and tech industries. The retailer plans to digitize 30 models this year with startling fidelity—right down to their birthmarks and movement patterns—according to The Business of Fashion.
The initiative, developed in partnership with tech company Uncut, will allow models to license their virtual likenesses for H&M’s e-commerce shoots and potentially for other brands as well. As H&M spokespersons emphasize, models will retain ownership of their digital selves and be compensated “exactly the same” as for physical jobs.
Some of these AI twins are already on the runway—virtually. H&M has created digital replicas of top-tier models like Vilma Sjöberg and Mathilda Gvarliani, whose avatars are reportedly so convincing that even Gvarliani’s boyfriend couldn’t distinguish between her real photos and her digital clone.
“People will be divided,” said Jörgen Andersson, H&M’s Chief Creative Officer. “But AI is coming to this industry whether we like it or not, and we believe models and agencies deserve to have a stake in it.”
👩⚖️ The Debate
PRO: Scalability & Flexibility — A model’s digital twin can appear in multiple campaigns at once, reducing travel and scheduling constraints.
PRO: Ownership & Control — Unlike previous uses of AI in media, H&M’s approach ensures models have rights over their virtual selves.
CON: Gatekeeping — With digital replicas taking center stage, opportunities for new, emerging talent may dry up, especially for in-person shoots.
CON: Creative Labor Impacts — Fewer physical shoots means less work for makeup artists, stylists, lighting techs, and on-set photographers, which could threaten creative livelihoods.
CON: Industry Concerns — According to a poll by the UK’s Broadcasting, Entertainment, Communications and Theatre Union (BECTU), 54% of its members believe AI will negatively impact the fashion industry.
Why We Care
This moment represents more than a quirky AI gimmick—it’s a microcosm of broader societal questions about consent, labor, and creativity in the age of generative tech. At a time when Hollywood is negotiating AI likeness rights, and musicians are fighting digital cloning, H&M is offering one of the first large-scale tests of whether AI can augment—not exploit—creative labor.
Just in time, New York State is stepping in. A new bill effective June 2025 will require that models give written consent before any digital replication—and grants them full rights over their AI likenesses. Whether this becomes a model for ethical innovation or another cautionary tale remains to be seen.
🔒 Register Today: StartupConnect Round IV
Want to learn from successful founders of venture-backed startups? On Tuesday, April 8th, from 5-7PM ET, we will be hosting Part 1 of VWV’s StartupConnect Round IV—a virtual panel discussion featuring 6 startups. This is a great opportunity to learn more about the entrepreneurial ecosystem, get candid insights into the life of founders, and network!
This year we’re welcoming 7 founders and early members to talk about their experiences growing their startups from 0 to 1 and navigating the challenges building from the ground up, including fundraising hurdles, product-market fit discoveries, team building strategies, and personal resilience. The startups featured include: Huron, Anytime Spritz, Eartharce, Dymaxion, PeduL, Stack Influence, and Query.
RSVP to get your invite and learn more!
Save the Date: Part 2 of StartupConnect Round IV will take place on April 24, 2025 from 5-6 PM ET, featuring keynote speaker Mark Goldberg. Mark your calendars and we hope to see you there!
💃 Upcoming: Entrepreneurial Formal
VWV is teaming up with Brown Entrepreneurship Program (Brown EP), Innovation Dojo, and Brown Consulting Club (BCC) to host one of the entrepreneurial events of the semester. We’re thrilled to invite you to our Entrepreneurial Formal at Twelve 21 Lounge on Thursday, April 10th, 2025, at 10:00 PM.
This is not your typical formal—it’s a night to network, celebrate innovation, and hang with other entrepreneurs, investors, and startup enthusiasts. Whether you’re looking to meet potential co-founders, investors, or just want to unwind and have fun, this event is the perfect opportunity.
Location: Twelve 21 Lounge, 248 Atwells Ave, Providence, RI 02903
Date: Thursday, April 10th, 2025
Time: 10:00 PM
Dress Code: Formal attire
Tickets: FREE!
RSVP here and bring your friends! We’re excited to see you there.
💸 Deals on Deck
ICYMI: Some big moves in the startup world this week
Plaid: The San Francisco-based financial connector raised $575 million in funding, with Franklin Templeton leading the round. The likes of Fidelity, BlackRock, and existing investors NEA and Ribbit Capital also joined in. Plaid’s platform continues to make waves in connecting financial institutions to fintech apps.
Runway: $300 million in Series D funding for this NYC-based AI research and media company. General Atlantic led the round, with backing from Fidelity Management & Research Company, Baillie Gifford, NVIDIA, and others. Runway is helping power the future of AI-driven media, and investors are definitely seeing the potential.
Hydrolix: This Portland-based startup raised an $80 million Series C round to support its streaming data lake platform, enabling companies to store, compress, and analyze massive volumes of real-time log data. The round was led by QED with support from Blumberg Capital, Frontline Ventures, Pruven Capital, and more. With a total of $148 million raised, Hydrolix is poised to help companies manage data at scale. GeekWire has more on the deal here.
Unframe: A fresh-faced, one-year-old startup out of Cupertino, CA, just raised $50 million to build a customizable enterprise AI platform. With backing from Bessemer Venture Partners, TLV Partners, Craft Ventures, and others, Unframe’s solution allows businesses to deploy tailored AI tools quickly and only pay once the results are delivered.
🆙 We’re Updating Our Website
We love our website, and want to make sure it is accurate and up-to-date. Please let us know through this form if you are a part of the VWV team (Investment Committee, Advisors, Alumni) and have changes you wish to make to your personal profile.
That’s it for this week, feel free to email me serena_saxena@brown.edu with any thoughts or inquiries! 💌
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