Startups Weekly: Embracing a Welcome Respite in Innovation

Welcome to your weekly roundup of startup news, where we delve into the latest happenings in the dynamic world of startups. This week, we explore a range of funding stories, acquisitions, and controversies that highlight the evolving landscape of innovation and investment.

Highlights from the Startup Ecosystem

This week brought a mix of significant events, including an exit, a lawsuit, and a fascinating scientific debate. Here are the most intriguing stories:

OpenAI Alumni Ventures

• Mira Murati, the former CTO of OpenAI, has enlisted two prominent advisers for her new venture, Thinking Machines Lab.
• Co-founder Ilya Sutskever is utilizing Google Cloud’s TPU chips to support research at his new AI startup, Safe Superintelligence.

Corporate Maneuvering

• OpenAI is reportedly contemplating a $500 million acquisition of io Products, an AI hardware startup co-founded by Jony Ive and Sam Altman.
• In a twist, OpenAI is embroiled in a countersuit against Elon Musk, its former ally.

Shifting Alliances in HR Tech

The head of communications at Deel has departed amidst allegations of corporate espionage involving rival startup Rippling.

Scientific Controversies

• Colossal Biosciences claims to have resurrected the dire wolf, but this bold assertion is met with skepticism from independent scientists.
• The company’s $10.2 billion valuation is under scrutiny, sparking debates about its legitimacy.

Market Changes

• The British fashion marketplace Lyst has been acquired by Japan’s Zozo for a mere $154 million, down from its previous valuation of $700 million.
• Banking-as-a-service startup Solid has filed for Chapter 11 bankruptcy, citing significant litigation costs.

Key VC and Funding Developments

In contrast to the tumultuous stock market, the startup funding scene remains vibrant. Here are some noteworthy funding announcements:

Successful Funding Rounds

• Nuro, an autonomous driving startup, secured $106 million in Series E funding, although its valuation has dipped to $6 billion from $8.6 billion.
• Base Power raised $200 million in Series B funding, led by notable investors including Addition and Andreessen Horowitz.
• Sipay, positioned as the “Stripe for emerging markets,” raised $78 million to expand its fintech services beyond Turkey.
• Rain, a startup providing earned wage access, secured $75 million in an all-equity Series B round.
• Brinc Drones, a police drone startup, raised $75 million with backing from Index Ventures.
• Krea disclosed having raised $83 million, including $47 million in Series B funding for its generative AI tools.
• Artisan, known for its AI sales agents, raised $25 million to expand its team.

Venture Capital Insights

• SignalFire has secured over $1 billion in new capital, raising its total assets under management to approximately $3 billion.
• Lerer Hippeau closed its ninth fund at $200 million, marking an increase from its previous fund.
• Revent, a Berlin-based VC firm, raised $109 million for its second fund, focusing on startups addressing planetary and societal health.
• DIG Ventures raised $100 million for early-stage investments in Europe.

In Conclusion

In a recent statement, San Francisco mayor Daniel Lurie highlighted his efforts to engage directly with tech CEOs to foster a supportive environment for startups. “I’m calling entrepreneurs and asking, ‘How can we keep you here?’” Lurie noted at the TechCrunch StrictlyVC event.

For more updates on the startup world, be sure to check out our previous articles on startup funding news and entrepreneurship success stories.