ByteDance’s $7B Nvidia Chip Bet & Telegram Is Now Profitable.

Venture Daily Digest - 02/01/2025

🎊 Times Square confetti hides secret wishes. Since 2015, the iconic New Year’s Eve confetti has included handwritten wishes from thousands of people. Dubbed “wishfetti,” these dreams are submitted to the Wish Wall in Times Square or online, turning midnight into a literal shower of hopes.

What’s in store:

  • OpenAI failed to deliver the opt-out tool it promised by 2025.

  • Accel has raised $650 million for its eighth India fund.

  • ByteDance Skirts U.S. Restrictions with $7 Billion Nvidia Chip Purchase Plan.

  • Trump asks Supreme Court to pause imminent TikTok ban.

  • Pavel Durov says Telegram is now profitable with $500 M cash reserves.

  • Reports to look: Data Room Guide for Investors, VC Trends 2025, State of Crypto 2024, Annual Equity Report 2024.

Read Time: 5 minutes

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STARTUPS RAISING MILLIONS

Startup Funding Updates

Vitalic, a Boston, MA-based mental health startup, launched with $4M in seed funding. Backers included Redesign Health and Medicare Advantage payor VNS Health (a national home- and community-based health care payor/provider).

boon AI, a San Francisco, CA-based AI-powered workflow platform for commercial fleets, raised $20.5m in Series A funding. The round was led by Marathon and Redpoint Ventures.

Bluenote, a San Francisco, CA-based generative AI platform for life sciences companies, raised $10M in financing. The round was led by Lux Capital, with participation from Elad Gil, Anthropic & Menlo Ventures Anthology Fund, McKesson Ventures, Avichal Garg/Electric Capital, Moxxie Ventures, Carbon Silicon Ventures, and leaders in AI and life sciences – Othman Laraki (CEO Color Health), Fidji Simo (CEO Instacart, Co-founder Metrodora Institute, OpenAI Board), Mike Nohaile (CEO Prellis Biologics, previously Amgen & Novartis Executive), Kristen Fortney (CEO BioAge), Eric Morgen (COO BioAge), Qasar Younis (CEO Applied Intuition), Linus Upson (Verily), and Jeffrey Low (Life sciences investor).

AusperBio Therapeutics, Inc. and Ausper Biopharma Co., Ltd. (collectively AusperBio), a US and China based clinical-stage biotechnology company dedicated to advancing targeted oligonucleotide therapies to achieve a functional cure for chronic hepatitis B (CHB), closed a USD 73 million Series B financing. The round was led by HanKang Capital, with participation from Sherpa Capital, CDH Investments, and a strategic investor, as well as continued participation from existing investors Qiming Venture Partners, InnoPinnacle Fund, and YuanBio Venture Capital.

Una Software, a Toronto, Canada-based modern planning platform designed to help businesses achieve performance goals while also adapting to change, raised C$7.5m in funding. The backers were not disclosed.

Sunairio, a Baltimore, MD-based climate and energy analytics startup, raised $6.4m in funding. The round, which brought the total amount raised to date to $8.8M, was led by Buoyant Ventures, alongside Constellation Technology Ventures and MassMutual Ventures’ Climate Tech Fund, with additional participation from Rosecliff Ventures and existing investors.

Gemma Biotherapeutics, a Philadelphia, PA-based therapeutics company, closed a $34m seed funding. The round was co-led by Double Point Ventures, Bioluminescence Ventures and Earlybird Venture Capital, with additional backing from Savanne Life Sciences.

Allo.xyz, a Dubai, UAE-based platform for real-world asset (RWA) tokenization and lending, secured a $100m Bitcoin-backed credit facility. The financing round was facilitated by a consortium of lenders including Greengage and a long-standing US institution.

Sitemate, a Sydney, Australia-based company that builds no code software platforms for built world companies, raised $18M (USD) in Series A funding. The round was led by Blackbird, with participation from existing investors Shearwater Capital and Marbruck.

Nodepay, a Singapore-based decentralized AI platform transforming unused internet bandwidth into real-time data pipelines for AI training, raised a second round of funding, bringing its total to $7m. The latest funding round included new strategic investors IDG Capital ($23 Billion AUM), Mythos, Elevate Ventures, IBC, Optic Capital, Funders.VC, Matthew Tan (Etherscan founder) and Yusho Liu (CoinHako Co-founder & CEO) as notable angels. They joined previous backers that includes Animoca Brands, Mirana, OKX Ventures, JUMP Crypto, Tokenbay Capital and more.

Cadstrom, a Montreal, Canada-based AI expert system that enables electrical engineers to design electronic devices correctly on the first try, raised $6.8M in Seed funding. The round was led by Bison Ventures with participation from Innovation Endeavors and AI2 Incubator, which previously invested $650K in a pre-Seed round.

Carecode, based in Brazil, develops AI agents for healthcare tasks and has raised $4.3M pre-seed from a16z, QED, Endeavor Catalyst, K50 Ventures, Latitud Ventures, and others.

Calo, based in Riyadh, delivers customized ready-to-eat meals targeting segments like weight loss and high-protein diets. It raised $25M in Series B funding led by Nuwa Capital, with participation from Khwarizmi Ventures and STV, bringing its total funding to $51M. Operating in Saudi Arabia, UAE, Kuwait, Qatar, and Bahrain, Calo plans global expansion, deeper meal personalization, and a potential IPO.

NEW VCs IN THE MARKET

Venture Capital Updates

Accel has raised $650 million for its eighth India fund to expand investments in the South Asian market. Known for backing Flipkart, Swiggy, and Freshworks, Accel’s portfolio startups have collectively exceeded $100 billion in valuation. The firm plans to focus on tech IPOs and businesses targeting smaller cities and rural India.

David Krane, CEO of GV, shared that the firm has made 800 investments over the past five years, with $10 billion invested in 15 years. GV's focus is on financial returns, with notable investments in companies like Uber and Cribl, and it avoids enticing Google employees to start companies just for GV funding. Krane emphasized the importance of communication between GV and Alphabet's growth-stage arm, CapitalG, as they share the same funding source.

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KEY STORIES IN TECH

Latest In Tech

OpenAI failed to deliver the opt-out tool it promised by 2025: OpenAI's Media Manager tool, designed to let creators manage their works in AI training, has faced delays and internal skepticism. Although it was announced in May, the tool has not launched, with OpenAI missing its 2025 deadline. Legal experts remain doubtful about its effectiveness in resolving copyright concerns, as creators may still struggle to protect their content from unauthorized AI usage.

President-elect Donald Trump’s attorneys have asked the Supreme Court to delay a law requiring TikTok-owner ByteDance to sell the app or face a U.S. ban starting January 19. ByteDance is challenging the law's constitutionality, with arguments set for January 10. Trump’s filing cites his dealmaking ability and TikTok’s value for free expression, while civil rights groups support TikTok’s appeal.

ByteDance plans to spend $7 billion on Nvidia chips in 2025, despite U.S. export restrictions on AI chips to China. The company is sidestepping these restrictions by storing the chips in data centers outside the U.S., such as in Southeast Asia. ByteDance claims it has complied with U.S. regulations, but the move has raised concerns over potential loopholes.

LAST COFFEE SIP

Other News

Bench, the VC-backed accounting startup with 12,000 customers, abruptly shut down last week, leaving users locked out during tax season. It has been acquired by HR tech company Employer.com, which plans to revive the platform, restore access, and let customers retain or transfer their data. Employer.com, a self-funded company, aims to maintain service quality and rehire some of Bench’s staff.

Telegram has surpassed $1 billion in revenue for 2024, with 12 million paid users, making it profitable. The company finished the year with over $500 million in cash reserves, excluding crypto assets, and has repaid a significant portion of its $2 billion debt. Telegram plans to go public in the future and continues expanding its features for businesses and creators.

REPORT THAT YOU SHOULD LOOK

In-Depth Insights

  • What to Include in a Data Room for Investors? Many founders shared all data in one go with the investors and often ghosted by investors. This post discusses on things to include in data room and when to share with investors.

  • Annual Equity Report 2024 A detailed report uncovering trends in equity distribution and ownership in 2024 across the startup ecosystem.

HIRING ALERT: ANALYST TO PARTNER ROLE

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  • Investment Associate - Dynamis Venture | India - Apply Here

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  • Venture Capital Intern - Exhort Venture | Australia - Apply Here

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  • Venture Investment Analyst - Digital Currency Group | USA - Apply Here

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