Startups Weekly: Fast and furious

Importance Score: 45 / 100 πŸ”΅

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This week saw some fast-growing startups rapidly increase in value, coupled with further evidence of the booming defense tech industry.

Top Startup Stories of the Week

Several notable startup developments this week intersected with Y Combinator. In addition, Israel reaffirmed its position as a leading “Start-Up Nation.”

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Notable Acquisitions and Valuations

Rapid Growth: Wix, the no-code website builder, acquired Base44, a vibe-coding startup established just six months prior, for $80 million in cash. Both companies originate from Israel.

Accelerated Valuation: Ramp, the spend management platform, experienced a valuation surge to $16 billion following its Series E funding. This is up from $13 billion earlier in the year during a secondary sale.

Strategic Partnerships and Competitive Dynamics

Complex Deals: New details surfaced concerning Meta’s $14.3 billion investment for a 49% stake in Scale AI, including potential dividend distributions. Subsequently, OpenAI decided to discontinue using Scale AI as a data provider.

Evolving Relationships: The U.S. Department of Defense awarded OpenAI a contract potentially worth $200 million, which may further complicate the startup’s ties with Microsoft.

YC Demo Day Highlights and Controversy

Demo Day Standouts: Among many startups presenting at YC’s Spring 2025 Demo Day, investors focused on these 11 promising ventures.

Party Fallout: Cluely, a controversial AI startup, faced scrutiny after a YC Demo Day after-party organized by the firm was shut down by authorities; its CEO referred to it as β€œthe most legendary party that never happened.”

Key VC and Funding News of the Week

Funding news was predominantly influenced by defense technology, artificial intelligence, or a combination of the two. One venture capital firm is ambitiously targeting a sizable new fund.

Significant Funding Rounds

Autonomous Driving Leader: Applied Intuition, which develops software for autonomous vehicles, raised $600 million in a Series F and tender offer, achieving a $15 billion valuation.

Defense Tech Investment: Helsing, a Munich-based defense tech startup, secured €600 million in funding led by Prima Materia, the venture capital arm of Spotify’s Daniel Ek, valuing the company at €12 billion.

Unicorn Status: Coralogix, an Israeli observability startup, achieved unicorn status after a $115 million Series E round. The funding will support doubling its workforce in India, where it currently employs 100 of its 550 employees.

Defense Startup Success: Mach Industries, a two-year-old defense technology startup, confirmed a $100 million funding round led by Khosla Ventures and Bedrock, resulting in a $470 million valuation.

Other Notable Investments

Remittance Focus: Aspora, formerly known as Vance, secured $50 million in a Series B round co-led by Sequoia and Greylock at a $500 million valuation. The startup facilitates remittances from the Indian diaspora.

Healthcare Pivot: Sword Health, an AI-driven digital health startup initially focused on virtual physical therapy, secured $40 million at a $4 billion valuation in a funding round led by General Catalyst. The company has postponed its IPO plans until at least 2028.

AI-Powered Scaling: Multiplier Holdings announced $27.5 million in seed and Series A funding, joining the trend of acquiring legacy service businesses, specifically accounting firms, and scaling them using AI.

Brand Loyalty Investment: Grifin, an investment app enabling users to buy stock in the brands they patronize, such as Walmart, raised $11 million in a Series A round.

Developer Tools Funding: Polar, a payment infrastructure platform catering to developers and AI-first businesses, closed a $10 million seed round led by Accel. Its CEO previously co-founded Tictail, which Shopify acquired in 2018.

Venture Capital Expansion

Emerging Markets Focus: Endeavor Catalyst, a global venture capital firm, is seeking $300 million for its fifth fund, its largest to date, to increase its investments in high-growth startups in emerging markets.

Final Thoughts

Alexa von Tobel, an early investor in Chime and a founder-turned-VC, anticipates Fintech 3.0: “The next wave of innovation will stem from fundamental product reinvention, not minor adjustments. These tools will address the demands of an evolving economy and a more digitally fluent, diverse population,” she stated in a TechCrunch interview.


πŸ• Top News in the Last Hour By Importance Score

# Title πŸ“Š i-Score
1 Lyles concerned about sweeping changes to advisory committees 🟒 82 / 100
2 Air India plane crash investigation focuses on captain who 'remained calm' while first officer 'panicked' about fuel supply being cut off moments before disaster πŸ”΄ 78 / 100
3 Super Bowl winner Bryan Braman dead at 38 after battling cancer πŸ”΄ 75 / 100
4 John Torode torn apart by BBC's Richard Osman after MasterChef statement 'That's not true' πŸ”΄ 72 / 100
5 Gillis draws boos and laughs amid jabs at Caitlin Clark and Donald Trump at Espys ceremony πŸ”΄ 72 / 100
6 Ocado boss warns autumn tax hikes will inflict even more economic pain πŸ”΄ 72 / 100
7 Woman diagnosed with ADHD at 28 reveals one common question which might hint you also have the condition πŸ”΄ 72 / 100
8 Cocaine-fuelled football fans' Hall of Shame: Man United supporters top table for most arrests – with a huge rise in possession of Class A drugs πŸ”΄ 65 / 100
9 ESPYS 2025: Druski Forgets Envelope While Presenting Final Award πŸ”΅ 55 / 100
10 Avocado will be much creamier if you stop mashing for 1 other method πŸ”΅ 45 / 100

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