Importance Score: 45 / 100 π΅
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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 YCβs 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 βthe most legendary party that never happened.β
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 β¬600 million in funding led by Prima Materia, the venture capital arm of Spotify’s Daniel Ek, valuing the company at β¬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.