Startups Weekly: Mercury’s Valuation Surges Over 100%, Plus Exciting Industry Updates!
Welcome to your essential weekly roundup of startup news, where we bring you the highlights from the dynamic world of startups. If you want to stay updated with the latest developments, make sure to sign up for our newsletter delivered straight to your inbox every Friday.
Key Startup Highlights of the Week
This week, the startup landscape showcased a blend of intriguing successes and notable setbacks. From an IPO delay to innovative breakthroughs in nuclear technology, here’s what you need to know.
Churn Concerns in Startup Reporting
Recent reports have raised eyebrows regarding 11x, a startup backed by a16z and Benchmark. It appears that some companies featured on their website as customers were not actual clients, leading to questions about their reported annual recurring revenue.
IPO Delays and Industry Developments
- Cerebras Systems: The AI chipmaker faces another postponement in its IPO, now anticipated in 2024, as its national security review continues to lag.
- Terrestrial Energy: This U.S. nuclear startup has successfully gone public via SPAC, expecting to raise $280 million for its small modular reactors.
- Commonwealth Fusion Systems: Backed by Bill Gates, this startup achieved a crucial milestone toward building its demonstration reactor.
Bankruptcy and Layoffs
In a surprising turn, Plenty, a vertical farming company that had raised nearly $1 billion from big-name investors like SoftBank and Jeff Bezos, filed for bankruptcy. Additionally, Block, co-founded by Jack Dorsey, announced layoffs affecting 931 employees, marking another round of job cuts in 2024.
Rumored Acquisitions
In the realm of acquisitions, Nvidia is reportedly close to acquiring Lepton AI, a startup specializing in server rentals using its AI chips. Meanwhile, FuriosaAI, based in South Korea, turned down an $800 million purchase offer from Meta.
Venture Capital and Funding News
This week also witnessed several significant funding rounds, showcasing the ongoing interest in various sectors, particularly in tech and AI.
Major Funding Rounds
- Mercury: The digital banking startup secured $300 million in Series C funding, doubling its valuation to $3.5 billion.
- Island: Specializing in enterprise browsers, this Dallas-based company raised $250 million in Series E funding, now valued at $4.85 billion.
- Rivian: The automaker launched a new micromobility startup called Also, which has already raised $105 million for developing small electric vehicles.
Emerging Startups and Innovations
- n8n: This Berlin-based workflow automation startup raised $60 million, with a valuation nearing $270 million.
- Mendel: This Mexico City-based startup raised $35 million in Series B funding, aiming for profitability by late 2025.
- Arcade: A generative AI marketplace for jewelry design announced its $25 million Series A funding and plans to expand into home goods.
- Paid: Launched by former Outreach CEO Manny Medina, this startup has raised $11 million to ensure AI agents receive compensation for their work.
- Emergence Capital: This firm closed a $1 billion fund focused on supporting B2B companies, particularly those in the AI space.
New Investment Funds
The French VC firm Daphni announced the initial closing of its third fund, Daphni Blue, with around $215 million secured out of a target of $270 million.
In Conclusion
A recent report highlighted the world’s 20 hottest open source startups, with more than half focusing on artificial intelligence. For a detailed look at these promising ventures, you can find the full list here.
Stay tuned for more updates in the dynamic world of startups next week!
