Nvidia faces $1B revenue threat with new chip export rules & Microsoft forms new internal dev-focused AI org.

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STARTUPS RAISING MILLIONS

💰 Startup funding updates

Raspberry AI, a San Francisco-based provider of AI-driven design tools for fashion, raised $24M in Series A funding. The round was led by Andreessen Horowitz, with participation from Greycroft, Correlation Ventures, and MVP Ventures.

Verdiva Bio, a London, UK-based clinical-stage biopharmaceutical company, raised over $410M in Series A Funding. The round was led by Forbion and General Atlantic, with participation from RA Capital Management, OrbiMed, Logos Capital, Lilly Asia Ventures, and LYFE Capital.

Kerna Laboratories, a San Francisco, CA-based AI biotech startup, raised an undisclosed amount in funding. Backers included Gradient, Humba Ventures, Tau Ventures, Pioneer Fund, Focalpoint Partners, and angels including Patrick Hsu (Arc Institute) and Jacob Kimmel (NewLimit).

Normunity, a Boston, MA- and New Haven, CT-based biotechnology company developing new anti-cancer therapies, raised $75M in Series B funding. The round was led by Samsara BioCapital and Enavate Sciences, alongside other new investors Regeneron Ventures, Pfizer Ventures and YK Bioventures, as well as existing investors Canaan Partners, Sanofi Ventures, Taiho Ventures, Osage Venture Partners, HongShan Capital Group, and Connecticut Innovations.

Kardigan, a San Francisco, CA-based heart health company modernizing cardiovascular drug development, raised USD300M in Series A funding. The round was led by Perceptive Advisors, ARCH Venture Partners, and Sequoia Heritage.

Overhaul, an Austin, TX-based supply chain risk management and intelligence company, raised $55M in equity funding. The round was led by Springcoast Partners with participation from existing investors Edison Partners and Americo.

Tune Therapeutics, a Durham, NC-based epigenome editing company, raised over $175M in Series B funding. The round was led by New Enterprise Associates, Yosemite, Regeneron Ventures and Hevolution Foundation.

Saluda Medical, a Minneapolis, MN-based commercial-stage medical device company, raised $100M in funding. The round was led by Redmile Group, with participation from existing investors Wellington Management, TPG Life Sciences Innovation, Fidelity Management & Research Company, Action Potential Venture Capital, and funds and accounts advised by T. Rowe Price Associates, Inc. New investor Piper Heartland Healthcare Capital also participated.

Social Market, a Pflugerville, TX-based crypto wallet that empowers users to earn, pay, and socialize on-chain, raised $30K in Pre-Seed funding. The round was led by Hitchens Ventures.

Red Sky Health, a Boston, MA-based provider of an AI-driven platform designed to optimize healthcare claims management, raised $3M in Seed funding. The round was led by Trevor Burgess, alongside Charles River Data, Gleb Drobkov and Mike Dezube.

Clear Labs, a San Carlos, CA-based provider of next-generation sequencing (NGS) platforms for diagnostics, raised $30M in Series D funding. The round was led by a strategic investor, along with participation from existing investors, including Counterpoint Global (Morgan Stanley), Felicis, GV, HBM Genomics, Khosla Ventures, Menlo Ventures, Nimble Ventures, Redmile Group, Wing Venture Capital, and funds and accounts advised by T. Rowe Price Associates, Inc.

Yampa, a Paris, France-based developer of autonomous AI agents for customer service, raised €3M in Seed funding. The round was led by Partech, with participation from Arthur Waller (Co-founder of Pennylane) and Guillaume Desloges (Co-founder of Alma), as well as business process outsourcing (BPO) experts.

Labviva, a Boston, MA-based provider of an AI procurement platform for life sciences, raised $25M in Series B funding. The round was led by 53 Stations, with participation from Biospring Partners, B Capital Group, and Glasswing Ventures. 

Float Financial, a Toronto, Canada-based provider of a business finance platform for Canadian businesses, raised $70M in funding. The round was led by Growth Equity at Goldman Sachs Alternatives, with participation from OMERS Ventures, FJ Labs, Teralys and existing investor Garage Capital.

Aerin Medical, a Mountain View, CA-based medical device company, raised $32.5M in funding. Backers included KCK MedTech, Questa Capital, OrbiMed, and Ally Bridge Group, with new participation by Ares Management Credit funds.

nsave, a London, UK- and Geneva, Switzerland-based provider of compliant accounts abroad to people from countries with high inflation, raised $18M in Series A funding. The round was led by TQ Ventures with participation from Sequoia Capital, Y Combinator, ACE Ventures, and Proton Foundation.

Qventus, a NYC-based provider of AI-based care automation software for health systems, raised $105M in Series D funding. The round was led by KKR, with additional participation from Bessemer Venture Partners, and new strategic investors, including health systems Northwestern Medicine, HonorHealth, and Allina Health.

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NEW VCs IN THE MARKET

🏦 Venture Capital updates

Top New York VC Ben Lerer says more mid-sized VC firms are heading for failure: Ben Lerer, managing partner at Lerer Hippeau, predicts a split in the VC landscape, with capital favoring top-tier funds like a16z and niche smaller funds, while mid-sized firms face challenges. He warns that firms managing a few billion dollars without a clear edge risk failure. This comes as U.S. venture firms see a decline, with notable closures like Foundry Group highlighting struggles since the 2021 funding peak.

KEY STORIES IN TECH

📜 Latest in tech

Ex-Intel Engineer’s Startup Blaize Becomes 2025’s First AI Chip IPO

• Blaize, an AI chip startup founded by ex-Intel engineers, is going public via a SPAC deal valued at $1.2 billion. It has raised $335M from investors like Samsung and Mercedes-Benz since launching in 2011.

• The company focuses on AI chips for edge devices like drones and security cameras, offering low-latency and energy-efficient solutions. Unlike Nvidia’s data center chips, Blaize targets AI integration into physical products.

• Despite a $87.5M loss in 2023, Blaize touts $400M in pipeline deals, including a $104M defense contract. It’s betting on edge AI as the future over centralized data centers.

Microsoft Forms New Internal Dev-focused AI Org:

• Microsoft has established CoreAI — Platform and Tools, a new division combining Dev Div, AI platform, and CTO Office teams to prioritize AI advancements.

• Led by ex-Meta exec Jay Parikh, the org aims to accelerate AI infrastructure and software, reporting directly to CEO Satya Nadella.

• Nadella emphasizes “model-forward” applications as Microsoft's 2025 focus, targeting innovation across all software categories.

OpenAI Presents its Preferred Version of AI Regulation in a New ‘Blueprint’

• OpenAI has published a policy framework advocating federal investment in AI infrastructure, talent, and energy to secure U.S. global leadership in AI.

• The blueprint emphasizes regulatory consistency, streamlined government collaboration, and export controls to strengthen AI safety and national security.

• Highlighting the need for copyright balance, OpenAI supports using publicly available data for AI training while protecting creators' rights.

Xiaohongshu Soars as TikTok's U.S. Future Remains Uncertain:

• Amid TikTok’s potential shutdown, Xiaohongshu has surged to the top of the U.S. App Store, attracting American users and influencers as a TikTok alternative.

• With its social shopping features, a Pinterest-like layout, and booming popularity in China, Xiaohongshu has raised $917 million and is valued at $17 billion.

• As it gains traction in the U.S., Xiaohongshu’s future in the region remains uncertain amid rising scrutiny of Chinese apps and potential regulatory challenges.

LAST COFFEE SIP

☕Other news

US Announces New Controls on AI

• The Biden administration has introduced a new system to control AI chip exports, dividing the world into three groups, with closest allies retaining full access and most countries facing restrictions.

• Tech companies like Microsoft, Google, and Amazon can apply for special permits to bypass some of the restrictions but must meet strict security conditions and limit AI computing power outside key allies.

• Nvidia has criticized the new regulations as overreaching, arguing they could harm America's leadership in AI and give an edge to foreign competitors, while political resistance also emerges from figures like Senator Ted Cruz.

Nvidia Faces $1B Revenue Threat as New U.S. AI Chip Export Rules

• U.S. export restrictions on AI chips will impact Nvidia’s ability to access international markets, including China.

• As Nvidia earns 56% of its revenue from global sales, the new rules pose a significant threat to its growth prospects.

• With China contributing 17% of Nvidia’s revenue, the restrictions could severely hinder its market position and innovation potential.

Apple Faces £1.8B Lawsuit Over App Store Commissions in the UK.

• Apple is already fighting a $1B developer lawsuit over its App Store commission structure and is now facing a $1.8B class action lawsuit from UK consumers claiming overcharging.

• The lawsuit argues that Apple’s monopolistic control over iPhone app sales forces developers to pass on excessive commissions, ultimately raising prices for consumers.

• Apple defends its commissions, claiming they are standard for digital marketplaces and noting that the majority of apps on the platform are free or pay lower fees.

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