Startups Weekly: Funding Insights and Notable Developments
Your essential source for weekly updates in the startup ecosystem is here. From funding announcements to significant controversies, this week’s recap highlights the ever-evolving landscape of startups.
Key Startup Highlights
This week in the startup world saw significant activities, including mergers, acquisitions, and disputes, reflecting a dynamic narrative that’s often detached from broader market conditions.
OpenAI Alumni Ventures
Mira Murati, ex-CTO of OpenAI, is advancing her new AI initiative, Thinking Machines Lab, with two prominent advisors formerly associated with OpenAI. Meanwhile, Ilya Sutskever, also a co-founder of OpenAI, opted to utilize Google Cloud’s TPU technology for his latest research-focused venture, Safe Superintelligence.
Corporate Conflicts and Departures
Amid other developments, OpenAI is contemplating a $500 million acquisition of io Products, a hardware startup co-founded by Jony Ive and Sam Altman, though a partnership remains a possibility. In a separate issue, Deel’s head of communications has departed amid allegations that the company infiltrated rival startup Rippling.
Scientific Controversies
Colossal Biosciences claims to have brought the dire wolf back from extinction, a claim met with skepticism from independent scientists questioning both its validity and the company’s hefty $10.2 billion valuation. In a related business development, UK-based fashion platform Lyst was sold for an estimated $154 million, a stark drop from its previous valuation of $700 million.
Banking Sector Troubles
Highlighting the challenges in fintech, banking-as-a-service startup Solid has filed for Chapter 11 bankruptcy, citing ongoing litigation costs, including a lawsuit from Series B investor FTV Capital seeking to recover a $61 million investment.
Funding Highlights This Week
This week saw a variety of funding rounds among startups that collectively indicate bullish investor sentiment despite some market volatility.
Notable Fundraising Efforts
- Nuro raised $106 million in a Series E funding round, valuing the autonomous delivery startup at $6 billion, a decline from its $8.6 billion valuation in 2021.
- Base Power, a provider of home battery backup systems based in Texas, secured $200 million in Series B funding from venture capital giants including Andreessen Horowitz and Lightspeed Venture Partners.
- Sipay, a fintech company based in Istanbul, announced a successful Series B funding round, raising $78 million with an $875 million valuation to extend its services beyond Turkey.
- Rain, specializing in earned wage access, raised $75 million in an all-equity Series B round led by Prosus, intending to expand its product lineup.
- Brinc Drones secured $75 million in funding for its police drone technology startup, showing promise in public safety innovations.
- Krea, aimed at aiding designers through generative AI tools, disclosed $83 million in total funding, enhancing its toolkit for creative professionals.
- Artisan, an AI-driven sales agent platform, announced a $25 million Series A funding round to bolster its team.
- SignalFire accumulated over $1 billion in new capital, raising its total assets under management to around $3 billion.
New VC Funds Launched
Berlin-based Revent has raised $109 million for its second fund, focusing on investments that promote planetary and societal health. Additionally, DIG Ventures has successfully raised $100 million for its second fund, targeting early-stage startups across Europe in sectors like B2B SaaS and AI.
Final Notes
In a recent TechCrunch event, San Francisco Mayor Daniel Lurie expressed his commitment to supporting local technology entrepreneurs, reaching out directly to executives to discuss how the city can better retain tech talent.
