Small and medium-sized businesses (SMBs), such as Joe Coffee, are reducing their software expenditures, alarming Wall Street. The Seattle-based coffee company cut its subscriptions with HubSpot, a marketing automation software provider, and is reconsidering its contract with Stripe, the payment processor. This aligns with latest earnings reports from companies like Paycom, HubSpot, and ZoomInfo, indicating potential economic turbulence due to consumer's response to inflation and high interest rates. SMBs are vital for the US economy, contributing to 40% of the GDP.
Menlo Ventures has secured $1.35 billion, targeting AI startups for investment. The venture firm, seeing AI as a key innovation area, has previously backed several AI companies. It currently manages over $3.8 billion across various fund groups.