GGV Capital Split Into Two Firms & Open AI Remove Altman's Ownership of It's Startup Fund

👋 Hey, Sahil here! Welcome to today's quick rundown in the Venture Daily Digest Newsletter. I've got the scoop on startup fundraising, fresh VC funds, and some cool tech – all in just 5 minutes!

• Tiger Global Management's latest VC fund, Private Investment Partners 16, raised $2.2 billion, missing its $6 billion target.

• OpenAI CEO Sam Altman has transferred control of the company's $325 million Startup Fund to Ian Hathaway.

• GGV Capital has split into two firms - Granite Asia for Asia investments, and Notable Capital for U.S., Europe and Latin America.

• Citigroup will lay off 430 employees across different divisions in New York.

• OpenAI is making ChatGPT available to everyone without an account through chat.openai.com.

• Featured Article : TAM - "Totally A Made Up Number." Why?

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Startup Funding Updates

Selux Diagnostics, Inc., a Boston, MA-based biotech startup whose mission is to combat superbug infections and fight antimicrobial resistance (AMR), raised an additional $48M in funding. The round was led by RA Capital Management with participation from Northpond Ventures, Sands Capital, and Schooner Capital. More Here

ViaLase, Inc., an Aliso Viejo, CA-based clinical-stage medical technology company focused on addressing unmet needs in the conventional glaucoma treatment paradigm, closed approx. $40m in Series C financing. The round was led by a new investor along with support from current investors including Venture Investors Health Fund, Arboretum Ventures and Falcon Vision, an ophthalmology investment platform supported by KKR. More Here

Xion, a blockchain purpose-built for mainstream adoption, raised $25M in funding. Backers included Animoca Brands, Laser Digital (Nomura), Multicoin, Arrington Capital, Draper Dragon, Sfermion, GoldenTree, and more. More Here

BioConsortia, Inc., a Davis, CA-based agricultural technology company, closed a $15m internal financing round. Existing investor Otter Capital led the round. More Here

Goodbill, a Seattle, WA-based startup that verifies that hospital bill is correct, raised $2m in funding. The round was led by Founders’ Co-op, Maveron and Liquid 2 Ventures, with participation from other funds and angels. More Here

Siprocal, a Miami, FL-based provider of an advertising, marketing technology, and digital media platform, received an undisclosed growth capital from Solace Capital. More Here

Firecell, a Nice, France-based company providing connectivity solutions, raised €6.6M in Seed funding. The round was led by Ventech and Matterwave Ventures, with participation from Bpifrance’s Digital Venture fund and Bouygues Telecom Initiative. More Here

Cargofive, a Lisbon, Portugal-based freight forwarding startup, raised €2.5M in funding. The round saw the new participation of venture capitalists Indico Capital and EIT Urban Mobility. This followed a round previously led by Shilling & Lince Capital, alongside angel investors and the PRR Nexus. More Here

Wellola, a Dublin, Ireland-based digital health company, raised €2.2M in funding. The round, which brought the total amount to €4M, was led by Elkstone with participation from Enterprise Ireland. More Here

Sense4Med, a Rome, Italy-based startup that develops point-of-care devices for the diagnosis of cystic fibrosis, raised €510k in funding. Backers included Innova Venture and Scientifica Venture Capital. More Here

Float Health, a San Francisco, CA-based marketplace moving care that doesn’t need a hospital to the home, raised $10m in Series A funding. The round was led by Canvas Ventures, whose General Partner Mike Ghaffary has joined Float’s board, with participation from Wave Capital, Y Combinator, Burst Capital, and Also Capital. More Here

Venture Capital Updates

Tiger Global Management's latest venture capital fund, Private Investment Partners 16, fell short of its $6 billion target, raising only $2.2 billion, amidst a challenging fundraising climate. More Here

OpenAI CEO Sam Altman has transferred control of the company's $325 million Startup Fund to Ian Hathaway, who previously managed the fund. The fund, launched in 2021 with $175 million in commitments from Microsoft and others, has invested in 16+ AI startups like Descript and Ghost Autonomy. Altman had no financial interest in the temporary arrangement of being the named controller. More Here

GGV Capital has split into two firms - Granite Asia led by Jenny Lee and Jixun Foo for Asia investments, and Notable Capital helmed by Hans Tung for U.S., Europe and Latin America. The move follows rising U.S.-China tensions, with Granite Asia managing $5 billion and Notable $4.2 billion of GGV's prior assets. More Here

Grafine Partners, a NYC-based private investment firm that invests in new firms led by private equity investors, closed its inaugural strategy, Grafine Capital I and parallel vehicles, with approximately $600m in total capital commitments. More Here

Featured Article

TAM - "Totally A Made Up Number." Why?

Every Founder, “This is a trillion dollar total addressable market (TAM).”

“If only we can capture 1% of trillion dollar market, We’re going TO BE RICH!” This is called "1% Market Fallacy" that hold most of the startups back. Some VC even refer to TAM as "Totally A Made Up Number." Why?

Most of the founder follow this thinking flow:

1. Pick a large and established market e.g. back-up, anti-virus or customer relationship management (CRM) software.

2. Write a new product for that market.

3. Get 1% of the market.

4. Retire to your own island.

Let's understand this with the CRM market -.…Read More Here

Startup’s Latest Buzz

Acquisition & Exits

Liberty Media Corporation (Nasdaq: FWONA, FWONK) is to acquire Dorna Sports, S.L., the exclusive commercial rights holder to the MotoGP™ World Championship, from Bridgepoint and Canada Pension Plan Investment Board for €4.2 billion. More Here

Nucor Corporation (NYSE: NUE) acquired Southwest Data Products, Inc., a manufacturer and installer of data center infrastructure, for $115m. More Here

Cadent, a NYC-based independent solutions providers for converged TV advertising, is to acquire AdTheorent (Nasdaq: ADTH), a NYC-based machine learning pioneer and industry leader delivering measurable value for programmatic advertisers, for $3.21 per share or approx. $324M. More Here

Layoffs & Banktuptcy

Citigroup will lay off 430 employees across different divisions in New York, The layoffs will impact 363 employees of the lender's primary banking unit, Citibank. Workers in the technology and broker-dealer arm will also be affected, the filings showed. More Here

Identiq, a six-year-old Israeli cybersecurity startup, is laying off 20 of its 45-member staff. More Here

The Boca Raton, Fla., telecommunications company files for Chapter 11 bankruptcy after several telecom firms filed in 2023. More Here

Eiger BioPharmaceuticals, Inc. (Nasdaq:EIGR) announced that it and its direct subsidiaries have filed voluntary petitions for chapter 11 protection under the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas. More Here

Startups & People

Donald Trump's digital media company, Trump Media and Technology Group (TMTG), is losing a significant amount of money ($58 million on $4 million in revenue) and failing to attract a substantial user base. Despite being a public company, TMTG lacks the typical characteristics of a startup with growth potential, such as venture capital funding and a promising product. Analysts predict that TMTG's stock is overvalued and unlikely to retain its current valuation due to the company's poor performance and lack of assets. More Here

Telegram has launched a new "Telegram Business" offering with features tailored for businesses, including customizable interfaces, preset replies, and chatbots. The company also introduced ad revenue sharing for public channels with over 1,000 subscribers as it aims to become profitable by 2025 ahead of a potential IPO. More Here

Latest In Emerging Tech

OpenAI is making ChatGPT available to everyone without an account through chat.openai.com, though with slightly more restrictive content policies and without features like saved chats. Users can opt out of having their conversations used for training the model, but OpenAI seems unsure how to handle potential abuse of the free offering. More Here

The European Union's Digital Markets Act (DMA) is forcing Apple to open up its App Store ecosystem to competitors. One of the first alternatives is the AltStore, an app marketplace that plans to launch an updated version in the EU, allowing developers to monetize their apps through Patreon integration instead of Apple's commission. The AltStore will offer a unique business model where users can access paid apps by pledging on Patreon, providing a more direct relationship between developers and users. It will also provide a granular view of app permissions before installation. While simpler to use than the current version, the EU AltStore still requires Apple's approval and app notarization. More Here

Google settled a lawsuit in Oakland federal court, agreeing to destroy billions of data records related to alleged tracking of private browsing. The accord, potentially worth up to $7.8 billion, requires approval and aims to update disclosures and limit data collection in private browsing modes. The settlement comes after users accused Google of improperly tracking browsing habits, though Google denies any wrongdoing. More Here

Venture Daily Digest Picks

• How repositioning a product allows you to 8x its price by A Smart Bear. Read Here

• The Iterative-Hypothesis customer development method. Read Here

• VC: "I Don't Care About Your LTV/CAC Ratio!" Why? Read Here

• What Matters Most For Startup Growth? From VP of Growth at Facebook Read Here

• The truth about venture capitalists by Marc Andreessen. Read Here

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That’s It For Today! Will Meet You Tomorrow!
Happy Tuesday! 🥂

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✍️Written By Sahil R - The Venture Crew