News/Fundraising
Where to, Shark Tank? AI funding boom leaves non-AI startups on the outside looking in
AI-focused venture funding is creating a stark divide in the startup landscape, with intelligent software companies commandeering nearly half of all enterprise investments while non-AI startups struggle to attract capital. This growing concentration of resources threatens to create a barren "no man's land" for companies outside the AI boom, potentially leaving many promising ventures without the necessary funding to survive in an already challenging exit environment. The big picture: AI-focused funds now dominate venture capital, capturing 40% of all U.S. venture capital raised last year, quadrupling from just 10% in 2021, according to Silicon Valley Bank's latest "State of enterprise...
read May 20, 2025Indian healthcare AI startup Qure.AI targets IPO within 2 years
India's AI healthcare startup Qure.AI is targeting profitability within a year and plans an IPO within two years as it expands globally. The company's strategy highlights the rapidly growing market for AI in healthcare diagnostics, which is projected to surge from $14.92 billion to $110 billion by 2030, driven by increasing adoption for early disease detection and clinical workflow optimization. The big picture: Qure.AI, founded in 2016 and backed by Fractal Analytics, Peak XV Partners, and Novo Holdings, has raised $125 million to date and was valued at $264 million as of November 2024. CEO Prashant Warier revealed plans to...
read May 19, 2025Fairground launches AI-generated TV series, starting with Dracula
Xumo founder Colin Petrie-Norris is pioneering a new frontier in entertainment with Fairground Entertainment, a studio and streaming service dedicated exclusively to AI-generated television series. Having raised $4 million in seed funding, the startup plans to release its first wave of programming in Q3 2025, focusing initially on reimagined public domain properties like Dracula and Robin Hood. This venture represents a significant evolution in content creation, as AI technology continues to transform how entertainment is produced and consumed. The big picture: Fairground Entertainment aims to blend original storytelling with generative AI technology, focusing on producing high-quality entertainment that happens to...
read May 19, 2025OpenAI revises restructure plan amid leadership changes
OpenAI's latest restructuring plan reverses their controversial December 2024 proposal while attempting to balance nonprofit governance with commercial viability. The new approach would transform OpenAI into a public benefit corporation while maintaining nonprofit oversight, though details remain sparse. This restructuring represents a critical moment in AI governance as OpenAI navigates intense scrutiny from co-founders, investors, and regulators while pursuing a potential $30 billion funding round. The big picture: OpenAI has announced a revised restructuring plan that walks back its December 2024 proposal to sell the nonprofit's controlling shares to the for-profit side of the company. Key details: The new plan...
read May 16, 2025AI startup Cartwheel secures $10M for character animation tools
Cartwheel AI has released its first public tools for 3D character animation after securing $10 million in new funding led by Craft Ventures. The startup, founded in 2023 by OpenAI alum Andrew Carr and Google Creative Lab veteran Jonathan Jarvis, aims to revolutionize animation production by dramatically accelerating workflows while maintaining creative control. The technology's emergence from a year-long beta test with 8,000 professional animators signals a potentially significant shift in how animation is created across entertainment and digital media. The big picture: Animation startup Cartwheel has launched AI-driven 3D character animation tools to the public after raising $10 million...
read May 14, 2025Vegas-based TensorWave secures $100M to boost AI infrastructure development
TensorWave's massive $100 million Series A funding round signals growing investor confidence in AI infrastructure as a critical growth sector. The Las Vegas-based startup has positioned itself strategically in a market projected to exceed $400 billion by 2027, offering essential tools and infrastructure for training AI models and optimizing workloads. This investment comes during a transformative period where access to specialized computing resources has become essential for organizations developing and deploying sophisticated AI systems. The big picture: TensorWave secured a $100 million Series A funding round led by Magnetar and AMD Ventures, with participation from existing and new investors including...
read May 14, 2025Legal AI startup Harvey seeks $5 billion valuation in funding talks
Legal AI startup Harvey is securing a major funding round that significantly boosts its valuation amid rapid revenue growth. This financing highlights the accelerating adoption of AI in the legal sector, where Wall Street analysts project that nearly half of legal work could eventually be automated through technologies like those Harvey is developing for elite law firms and corporations. The big picture: Harvey AI is finalizing a $250+ million funding round at a $5 billion valuation, representing a substantial leap from its $3 billion valuation just months ago. The investment is being led by notable venture capital firms Kleiner Perkins...
read May 14, 2025A $67.5B market emerges for licensing creative work to train AI
A new market is emerging around AI content licensing as startups develop platforms to help creators monetize their work for AI training. Investors have poured $215 million into companies building tools that enable writers, publishers, music studios, and filmmakers to license their content to AI developers like OpenAI and Meta. This trend comes amid growing legal and regulatory scrutiny over AI companies' use of copyrighted material, highlighting the tension between rapid AI advancement and fair compensation for creative works. The big picture: Startups are creating marketplaces where creative industries can sell their content for AI training purposes, addressing both copyright...
read May 13, 2025Treasury probes Benchmark Capital’s links to Chinese AI firm Manus
The U.S. Treasury Department's review of a $75 million investment in Manus AI reveals intensifying AI competition between the U.S. and China. This government scrutiny represents a significant escalation in tech nationalism as America seeks to prevent strategic AI capabilities from being developed in China through U.S. capital. The investigation tests the boundaries of recent investment restrictions and could set precedents for how cross-border AI deals are structured in an increasingly divided technological landscape. The big picture: Treasury officials are examining whether Benchmark Capital's investment in Manus AI violates restrictions under the Outbound Investment Security Program that went into effect...
read May 13, 2025Web3 and AI entertainment fund launches with $20M at Cannes
A $20 million investment partnership between Goldfinch and Digital Genesis Fund marks a significant push toward integrating Web3 and AI technologies in entertainment production. This Cannes-launched venture represents a strategic bet on decentralized technologies fundamentally reshaping how media content is funded, created, and distributed—potentially giving creators more autonomy while offering investors unprecedented transparency into project performance. The big picture: British film financier Goldfinch has joined forces with Luxembourg's Digital Genesis Fund to create a $20 million investment initiative focused on Web3 and AI-powered entertainment studios. The partnership aims to revolutionize traditional media production by integrating tokenization, artificial intelligence, and decentralized...
read May 12, 2025AI search firm Perplexity nears $14B valuation in funding round
Perplexity AI is on the verge of securing substantial funding that would cement its position as a significant competitor in the AI-powered search market. While the potential $500 million investment led by Accel would dramatically boost the company's valuation, it represents a scaling back from initial fundraising ambitions, highlighting the evolving dynamics in late-stage AI startup financing even as investors continue to back promising alternatives to traditional search engines. The big picture: Perplexity AI is in advanced talks with Accel to raise $500 million at a $14 billion valuation, positioning the AI search startup as a serious Google competitor. Funding...
read May 12, 2025SoftBank-OpenAI venture faces hurdles amid tariff concerns
SoftBank's ambitious $100 billion AI infrastructure partnership with OpenAI has stalled just months after its high-profile announcement, caught in economic uncertainties surrounding Washington's trade policies. This slowdown of the Stargate project represents a significant setback for SoftBank founder Masayoshi Son's vision to deploy massive capital into American AI development, highlighting how geopolitical tensions and tariff concerns can derail even the most well-funded technology initiatives. The big picture: SoftBank and OpenAI's Stargate project, unveiled in January with promises of immediate $100 billion deployment and potential expansion to $500 billion, has failed to materialize beyond initial announcements. Despite the bold proclamations from...
read May 12, 2025Only HUMAIN: Saudi Arabia unveils new AI company before Trump arrives
Saudi Arabia's latest move to establish an AI investment firm represents a significant expansion of its technology strategy, positioning the kingdom as a growing player in the global artificial intelligence landscape. The launch of HUMAIN, owned by the massive Public Investment Fund, strategically coincides with President Trump's upcoming visit, highlighting the growing importance of AI in Saudi Arabia's economic development plans and its relationship with the United States. The big picture: Saudi Arabia has launched HUMAIN, a new artificial intelligence investment firm owned by its $925 billion sovereign wealth fund, ahead of US President Donald Trump's visit. Key details: HUMAIN...
read May 12, 2025AI drug firm METiS eyes $200M Hong Kong IPO
AI-driven drug discovery firm METiS Pharmaceuticals is exploring a potential Hong Kong IPO that could raise up to $200 million, according to sources familiar with the matter. This move highlights the growing intersection of artificial intelligence and pharmaceutical development, with innovative companies seeking capital to advance their drug delivery and discovery capabilities. If completed before year-end as targeted, the offering would represent a significant milestone in the commercialization of AI-powered drug development platforms. The big picture: METiS Pharmaceuticals is working with advisers to prepare for a potential initial public offering on the Hong Kong stock exchange, targeting a raise of...
read May 11, 2025Venture capital faces reckoning in 2025 as challenges mount
Venture capital finds itself at a critical juncture in 2025, with investment opportunities drying up across most sectors except artificial intelligence. As traditional investment avenues falter, VC firms are making a desperate all-in bet on AI—specifically on OpenAI—as their final hope for salvation amid structural problems that have been brewing since the zero-interest-rate era ended. This high-stakes gamble reveals the industry's lack of viable alternatives and highlights the precarious position of the entire venture ecosystem. The big picture: Venture capital is experiencing a systemic crisis, with virtually all segments stagnating except for artificial intelligence investments. The recently released Pitchbook-NVCA Venture...
read May 7, 2025Bezos backs Toloka with $72M to advance human-AI collaboration
Bezos Expeditions' $72 million investment in Toloka signals growing confidence in the human-AI collaboration model for building robust artificial intelligence systems. This strategic move not only accelerates Toloka's expansion in the U.S. market but also highlights how the company has successfully navigated complex geopolitical challenges following its separation from Russian internet giant Yandex. The investment underscores the persistent need for human oversight in AI development even as autonomous systems become more sophisticated. The big picture: Jeff Bezos' personal investment firm is leading a $72 million funding round for Toloka, an AI data solutions company that helps train and evaluate AI...
read May 6, 2025AI platform Korl customizes messaging with multiple LLMs
Korl's new multi-agent platform represents a significant advancement in customer communication technology, leveraging AI to bridge the persistent gap between disconnected customer data systems. By orchestrating information from various sources like Salesforce, Jira, and Google Docs, the startup offers a solution to a fundamental business challenge: creating truly personalized customer materials that align with both customer needs and product capabilities without the traditional manual effort. The big picture: Korl has launched a multimodal, multi-agent AI platform that automatically creates highly customized customer communications by aggregating data across disparate business systems. The startup enters the market with $5 million in seed...
read May 2, 2025Startup Doppel deploys AI agents to combat online fraud and impersonation
Silicon Valley startup Doppel is harnessing AI agents to combat the rise of AI-powered fraud, creating a technological counterforce against increasingly sophisticated cybercriminals. The company's approach of using artificial intelligence to fight artificial intelligence has attracted $35 million in new funding and a $205 million valuation, positioning it at the frontier of battling digital deception as social engineering attacks grow more convincing and widespread. The big picture: Doppel has built autonomous AI agents that scan the internet, dark web, and social media platforms to identify fraudulent activity ranging from fake accounts to malicious advertisements. The system screens 100 million potential...
read May 2, 2025Tech giants face legal challenges as xAI seeks $20B funding
The technology sector faces intensifying legal and regulatory pressures as Apple and Google battle landmark antitrust cases while Elon Musk and OpenAI navigate significant operational challenges. These developments signal a pivotal moment for tech giants as courts, regulators, and users increasingly demand accountability, potentially reshaping how technology companies operate and compete in an AI-dominated landscape. The big picture: A federal judge has found Apple in contempt for violating a 2021 injunction in its Epic Games antitrust case, taking the extraordinary step of referring the company to the U.S. Attorney for potential criminal contempt proceedings. Judge Yvonne Gonzalez Rogers determined that...
read May 1, 2025AI-powered IoT firm 1NCE secures $60M for US expansion
German IoT connectivity provider 1NCE has secured $60 million in new funding to enhance its AI capabilities and expand its presence in the rapidly growing US IoT market. This latest round, the company's largest to date, brings its total funding to $160 million since 2017 and positions the company to capitalize on increasing enterprise demand for integrated IoT connectivity and management solutions powered by artificial intelligence. The big picture: 1NCE is strengthening its position in the IoT ecosystem by enhancing its SaaS platform with AI capabilities while doubling down on the US market. The company plans to launch new products...
read Apr 26, 2025AI slashes compliance time 80% with Relyance’s data ‘x-ray vision’
Relyance AI's new Data Journeys platform tackles a critical enterprise challenge by providing unprecedented visibility into how data moves through AI systems. As organizations accelerate AI adoption amid increasing regulatory scrutiny, understanding data flow patterns has become essential for compliance, bias detection, and accountability. With enterprises facing mounting fines and regulatory pressure—including $1.26 billion in GDPR-related penalties in 2024 alone—Relyance's solution arrives at a crucial inflection point for AI governance. The big picture: Relyance AI has launched Data Journeys, a visual platform that tracks how data moves across applications, cloud services, and third-party systems to address a fundamental AI governance...
read Apr 26, 2025Supabase empowers AI app developers with new tools
Supabase has emerged as the leading backend-as-a-service platform, securing a Series D funding round led by Accel amid remarkable growth. The platform now serves over 2 million developers and launches more than 10,000 new databases daily, with community meetups spanning 43 countries worldwide. This funding milestone, supported by prominent tech entrepreneurs from companies like Vercel, Laravel, and OpenAI, validates Supabase's approach of providing developers with a comprehensive backend infrastructure based on PostgreSQL. The big picture: Supabase has positioned itself as the "Stripe for backend services," offering developers a fully-managed infrastructure solution that includes PostgreSQL databases alongside authentication, storage, and other...
read Apr 23, 2025SaaStr’s top posts feature Wiz, Rippling, and Google Cloud execs
The technology sector continues to experience significant shifts in 2024, with AI investment accelerating despite ongoing vendor scrutiny from finance departments. Recent industry developments highlight several key trends: enterprise software spending is projected to grow dramatically through 2028, AI companies are reaching remarkable valuations despite profitability challenges, and in-person sales tactics continue to outperform digital alternatives. These movements reflect the complex dynamics of a tech industry adapting to post-pandemic realities while capitalizing on artificial intelligence's transformative potential. The big picture: Enterprise software spending is poised for explosive growth, with Thoma Bravo projecting a 19% annual increase through 2028, primarily driven...
read Apr 17, 2025AI startup Anysphere nears $10B valuation in funding talks
Cursor's parent company Anysphere is pursuing a massive funding round that could catapult the AI-powered code editor into the upper echelons of AI startup valuations. This potential investment highlights the growing premium investors are placing on AI developer tools that can enhance coding productivity, with Cursor gaining significant traction among developers seeking AI-augmented programming capabilities. The big picture: Anysphere Inc., the company behind AI code editor Cursor, is in talks to raise hundreds of millions of dollars at a valuation approaching $10 billion. Key detail: Thrive Capital is expected to lead the funding round, according to sources familiar with the negotiations....
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