Tech Giants and Venture Capitalists Expand Offerings and Investments
Several tech companies and investment firms are expanding their services and financial backing, signaling continued growth and diversification within the industry. Google's YouTube is seeing subscription and ad revenue increases, Spotify is venturing into physical book sales, Snap is working to diversify revenue sources, and Mundi Ventures has closed on a significant deep tech and climate fund.
YouTube's revenue is trending upwards, according to parent company Alphabet. The platform reported having 325 million paying users across Google One and YouTube Premium, up from 300 million three months prior, according to TechCrunch. YouTube's ad revenue increased 9% to $11.38 billion in the fourth quarter, although this fell short of analysts' estimates of $11.84 billion. Overall revenue for YouTube, including ads and subscriptions, reached $60 billion for the full financial year, a 17% increase compared to the previous year. Alphabet CEO Sundar Pichai stated the company plans to expand its subscription offerings, particularly to capitalize on its generative AI.
Spotify is also expanding its offerings, moving beyond digital audiobooks into physical book sales. Users in the U.S. and the UK will soon be able to purchase physical copies of audiobooks directly through the app, according to TechCrunch. The company also introduced new features designed to enhance the audiobook experience, including Page Match, which allows users to scan a page from a physical book to instantly transition to that spot in the audiobook. Audiobook Recaps, previously an iOS-only feature, is also coming to Android devices.
Snap is also working to diversify its revenue streams, moving beyond ad revenue to subscriptions and hardware. In the fourth quarter, Snap's revenue was $1.7 billion, a 10% year-over-year increase, according to TechCrunch. Average revenue per user also increased slightly, from $3.44 to $3.62. Net income was $45 million, up from $9 million the previous year. Snap's paid subscription service, Snap, saw subscribers grow 71% year-over-year, reaching 24 million.
Meanwhile, Spain-based Mundi Ventures has completed a €750 million first close for Kembara Fund I, its fifth and largest fund to date, according to TechCrunch. The fund is focused on deep tech and could potentially reach a final closing of €1.25 billion. In 2024, the fund secured a €350 million commitment from the European Investment Fund under the European Tech Champions Initiative. Kembara co-founder and general partner Yann de Vries noted that reaching €750 million in two years as a first fund in the current environment was challenging.
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