CES startups face cautious investors amid economic woes

LAS VEGAS (AP) — More than a thousand startups are showcasing their products at the annual CES tech show in Las Vegas, hoping to create some buzz around their gadgets and capture the eyes of investors who can help their businesses grow.

But amid the slew of layoffs in the tech industry and an economic landscape battered with high inflation and interest rates, many may be met with cautious investors looking for products that can deliver quick returns instead of hype.

Analysts say the event this year has somewhat of a muted tone compared to prior shows, when many companies routinely unveiled pie-in-the-sky projects that never saw the light of day. Carolina Milanesi, president and principal analyst at the consumer tech research firm Creative Strategies, said this time around, many of the tech items displayed during the show’s media preview days, which occurred Tuesday and Wednesday, have been less “flamboyant” compared to prior years, which showcased things like talking microwaves and smart jeans that vibrate to direct users.

“The economy — and I think the mood in general — is a little bit negative around tech,” Milanesi said. “It’s really getting companies to focus on real value for customers.“

CES, the most influential tech gathering in the world, officially begins on Thursday to attendees in the industry. Roughly 3,000 companies have registered to attend the event, including big companies like Amazon that are laying off thousands of employees and axing unprofitable areas of their business amid uncertainty in the wider economy.

Simultaneously, many startups are attempting to find their wings at a time when consumers are tightening their belts and being more picky about how to spend their money. And experts note the somber economic climate can be particularly difficult...