Humane, AI Pin Wearable Maker, Selling Business For $1 Billion & Scale AI Raised $1 Billion Funding

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👋 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 ☕! Today’s major updates include -

• Scale AI, a San Francisco, CA-based data foundry for AI, raised $1 Billion funding from Accel, Y-Combinator, Index fund and other.

• Humane, Maker of the poorly rated AI Pin wearable, Seeks Buyer for $750Million-$1Billion.

• Anthropic, an AI Startup has hired Krishna Rao, an Airbnb veteran, as its first chief financial officer (CFO).

• Snowflake Inc.'s talks to acquire AI startup Reka AI for over $1 billion have broken down.

• Adam Selipsky, the CEO of Amazon Web Services (AWS), will step down next month after leading the cloud computing unit since 2021.

• Featured Article : A simple 5-step framework that you can use to determine your startup's valuation

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STARTUP FUNDING UPDATES

AirLoom Energy, bill gates backed startup with a novel approach to wind power using vertical blades on cables along an oval track, is raising $12.7 million in fresh funding from 21 investors. More Here

Scale AI, a San Francisco, CA-based data foundry for AI, raised $1 Billion in Series F funding. The mix of primary and secondary financing brought Scale’s valuation to $13.8 billion. The round was led by existing investor Accel with participation from returning investors including Y Combinator, Nat Friedman, Index Ventures, Founders Fund, Coatue, Thrive Capital, Spark Capital, NVIDIA, Tiger Global Management, Greenoaks, and Wellington Management. New investors included Cisco Investments, DFJ Growth, Intel Capital, ServiceNow Ventures, AMD Ventures, WCM, Amazon, Elad Gil, and Meta. More Here

WitnessAI, based in Palo Alto, California, is a startup that provides a platform to secure and monitor the use of generative AI models in enterprises. The company has raised $27.5 million in funding from Ballistic Ventures, which incubated WitnessAI, and GV, Google's corporate venture arm. More Here

Carl, a NYC-based AgeTech company dedicated to provide dementia-friendly products, raised $1.15M in Pre-Seed funding. Backers were not disclosed. More Here

Capchase, a NYC-based provider of a revenue acceleration platform for Software-as-a-Service (SaaS) companies, secured a €105 million credit facility warehouse led by Deutsche Bank. More Here

H (formerly Holistic AI), a startup based in Paris, is working on developing AI agents to boost worker productivity through frontier action models. It has raised a massive $220 million seed round from investors including billionaires Eric Schmidt, Xavier Niel, Yuri Milner, Bernard Arnault, and Motier Ventures, as well as VC firms like Accel, Creandum, Elaia Partners, and strategic investors like Amazon, Samsung, and UiPath. More Here

Nanopath Inc., a Cambridge, Mass.-based point-of-care diagnostics company enabling high-quality molecular testing in minutes, received $4m in federal funding from national institute of health and national science foundation. More Here

WitnessAI, a San Mateo, CA-based creator of an enablement platform for safe AI use, raised $27.5M in Series A funding. The round was led by GV and Ballistic Ventures. More Here

Expedera, a Santa Clara, CA-based licensor of edge inference artificial intelligence (AI) semiconductor intellectual property (IP), raised $20M in Series B funding. The round, which brought the total amount to more than $47M, was led by indie Semiconductor, with participation from other investors. More Here

SamaCare, a San Francisco, CA-based provider of a cloud-based patient access platform for specialty medications, raised $17M in Series B funding. The round was led by Questa Capital, with participation from existing investors Vive Collective and South Park Commons. More Here

Videra Health, an Orem, UT-based provider of an AI-driven mental health assessment platform, raised $5.6M in Seed II funding. The round was led by Peterson Ventures. Mercato Partners, Epic Ventures and Philo Ventures also participated. More Here

Simr, fka UberCloud, a Los Altos, CA-based company advancing SimOps for manufacturers, raised $20M in Series A funding. The round was led by Uncorrelated Ventures, with participation from BMW i Ventures and Earlybird Venture Capital. More Here

Expressable, an Austin, TX-based company which specializes in research-based, family-centered speech therapy care, raised $26M in Series B funding. The round was led by HarbourVest Partners, with participation from Digitalis Ventures and existing investors F-Prime Capital and Lerer Hippeau. More Here

RootNote, an Indianapolis, Indiana-based creator and athlete data startup, raised $1.5M in Pre-Seed funding. The round was led by Elevate Ventures. More Here

Farcaster, a blockchain-based social protocol founded by two Coinbase alumni, is based in the United States. It has raised $150 million from investors including Paradigm, a16z crypto, Haun Ventures, USV, Variant, and Standard Crypto. More Here

Harbinger, a Los Angels, CA-based electric truck manufacturer, raised additional $13M in funding. The round, which brought the total amount to $73M, included participation from Coca-Cola System Sustainability Fund, managed by Greycroft. More Here

Footprint, a NYC-based technology company built to help banks, marketplaces and fintechs onboard their users, raised $13M in Series A funding. The round was led by QED Investors with participation from existing investors Index Ventures, Lerer Hippeau, Operator Partners, BoxGroup, Palm Tree Capital, Definition and new investors Neo and Animal Capital. More Here

XGS Energy, a Palo Alto, CA-based geothermal energy technology company, raised $20M in Series A funding. The round was led by Valo Ventures and VoLo Earth Ventures, and included participation from new investors B Current Impact Investment, MIH Capital, and individual inside investors, as well as additional funding from existing investor Thin Line Capital. More Here

Tenon, an Indianapolis, IN-based provider of marketing solution built on ServiceNow, raised $8M in Series A funding. The round was led by High Alpha and StepStone Group, with continued investment from ServiceNow Ventures. More Here

Medi2data, a Cardiff, Wales, UK-based provider of clinical operating systems, raised £2.1M in funding. The round was led by Wealth Club and existing investors, under the Enterprise Investment Scheme (EIS). More Here

AltruBio, a San Francisco, CA-based clinical stage biotechnology company, raised up to $225M in Series B funding. The round was led by BVF Partners LP, with participation from new investors RA Capital Management, Cormorant Asset Management, Soleus Capital and existing investors aMoon Fund and Blackstone Multi-Asset Investing, among others. More Here

Ketos, a San Francisco, CA-based water intelligence company, raised $10M in additional equity funding. The round was led by Tenfore Holdings, with participation from Danu Venture Group and existing investors Broadway Angels, Plum Alley Ventures, Plug and Play Ventures, and Accenture, who serves as both an investor and strategic resale partner. More Here

Easy Metrics, a Bellevue, WA-based provider of a labor analytics platform for warehouses and manufacturers, received a $31M investment from Nexa Equity. More Here

OneStock, a Toulouse, France-based provider of order management systems (OMS), received a $72M investment from Summit Partners. More Here

LabGenius, a London, UK-based drug discovery company, raised £35M in Series B funding. The round was led by M Ventures (the strategic, corporate venture capital arm of science and technology company Merck), with participation from additional new investors Octopus Ventures and LG Corp, together with existing investors including Atomico, Kindred Capital, Lux Capital and Obvious Ventures. The investment brought LabGenius’ total funding to date to £58M. More Here

Haz, a London, UK-based startup providing an AI social commerce app, raised $1.4M in Pre-Seed funding. The round was led by Speedinvest with participation from the scout programmes of A16Z, Atomico and Concept Ventures, along with angels from Lapse, Lendable, Lottie & Ecoigo. More Here

Reactive Technologies, a London, UK and Oulu, Finland-based leader in grid stability measurements, closed a £25m Series D funding round. The round was led by M&G’s Catalyst investment, alongside UK and Ireland growth capital investor BGF and Breakthrough Energy Ventures. More Here

Circtec, a London, UK-based leader in pyrolysis for sustainable end-of-life tyre recycling, received €150m in financing. Novo Holdings and A.P. Moller Holding led a €75m equity investment. The financing also included €22.5m of grants awarded by the Government of the Netherlands. More Here

Zen Educate, a London, UK-based online marketplace that matches schools with available substitute teachers and teaching assistants, closed a $37M Series B funding round. The round was led by Round2 Capital, with participation from existing investors Adjuvo, Brighteye Ventures, FJ Labs, Ascension Ventures, and prominent angels, including Octopus founder and CEO Simon Rogerson. More Here

Pheon Therapeutics, a Harpenden, near London, UK-based Antibody-Drug Conjugate (ADC) specialist developing next generation ADCs for a wide range of hard-to-treat cancers, closed a $120m Series B financing. The round was led by TCGX with participation from other new investors BVF Partners, Lightspeed and Perceptive Advisors, alongside existing investors Atlas Venture, Brandon Capital, Forbion, and Research Corporation Technologies. More Here

Vitesse, a London, UK-based treasury and payment solutions provider for the insurance industry, closed a $93M Series C funding. The round was led by KKR, with participation from existing investors Hannover Digital Investments. More Here

280 Earth, a Mountain View, CA- and The Dalles, OR-based company that removes CO2 from the air, raised $50M in Series B funding. The round was led by Builders VC. More Here

VENTURE CAPITAL UPDATES

Paceline Equity Partners, LLC, a Dallas, TX-based private equity manager, closed Paceline Equity Partners Opportunity Fund II, at $780m. The Fund’s investor base is comprised of global institutions, including public pension plans, sovereign wealth funds, endowments and foundations, insurance companies and family offices. More Here

Eir Partners, a Miami, FL-based middle market private equity firm focused on healthcare technology and tech-enabled services, announced the final closing of Eir Partners Investment Program II with $496M in capital commitments. The program secured commitments from a diversified range of investors including financial institutions, insurance companies, family offices, funds-of-funds, endowments and foundations, and seasoned industry executives. More Here

FEATURED ARTICLE

A simple 5-step framework that you can use to determine your startup's valuation

Many founders ask me, "How do I know what my startup's valuation should be?" So here’s the simple framework for you:

1. Identify your key milestones

Remember, raising capital from VCs relies on hitting milestones that expand your startup's growth potential. At later stages, this is driven by metrics like ARR, active users, retention, and growth rate. But at pre-seed, seed, and Series A, milestones are more narrative-driven.

The first step in planning a fundraise is understanding what milestones you'll need to hit before your next round. That will shape the growth strategy you pitch to investors now.

2. What's Your Expected Burn

Next, conservatively map out the cash you'll need to burn to hit your milestones. Always assume you'll need 1.5x more than you think, in case things go wrong.

This forces you to think through a full, honest growth strategy. Work backwards from the milestones:

• What needs to happen for them to be true?

• How long will that take in optimistic, realistic, and pessimistic scenarios?

• How much will you need to spend?

• Can you move faster or reduce risk by spending more?

Map this out month-by-month against your expected revenue. VCs don't expect profitability, but this shows your total burn and monthly burn rate before your next raise.

3. Your Round Size ?

To determine your fundraise size, use this formula:

Fundraise size = expected total burn + (expected burn rate * 12) - current cash

VCs typically want 12 months of runway, so multiply your expected burn rate by 12 and add that to your total burn between raises.

(Your current cash is what's in the bank now.)

Example: Let's say your startup has a burn $50K per month over the next 10 months before you'll hit your milestones for the next round and you have $100K in the bank right now:

$500K + ($50K * 12) - $100K = $1,000,000 round size

4. Calculate Your Valuation

Consider how much of the company you're willing to sell in this round. Generally, startups sell 10-20% per round.

Do an honest risk assessment - more unknowns means you'll need to be on the higher end. If you don't urgently need to raise, you can negotiate lower.

In our example, let's assume you want to sell 15% for $1 million. That sets our valuation around $6.7 million, or $7 million to keep it simple.

5. Double Check the Markets Right Now

Now look at recent deals in your industry and consider market factors using tool like Pitchbook. Talk to VCs not pitching to get context on whether valuations are "high" or "low" right now.

If valuations are "high" you can be aggressive with your story. If "low", you'll need to rely more on traction and metrics, and may need to accept selling more equity than preferred.

In our example, let's assume the markets are "low", so you might have to choose between a $6M valuation or raising less capital than desired. Read More Here

STARTUP’S LATEST BUZZ

ACQUISITION & EXITS

Autodesk, the 3D tools giant, has acquired Wonder Dynamics, a startup that enables creators to easily make complex characters and visual effects using AI-powered image analysis. The co-founders, Nikola Todorovic and Tye Sheridan, aim to bridge traditional and new AI-based tools, empowering artists rather than replacing them. Both founders and the entire Wonder Dynamics team will join Autodesk. More Here

Randstad Digital, a Dieman, The Netherlands-based digital enablement partner providing digital talent solutions, acquired Torc, a Boston, MA-based AI-powered talent marketplace platform. More Here

Centivo, a NYC-based healthcare company for employers and their employees, announced the acquisition of Eden Health, an employer-centered virtual-first medical provider. More Here

LAYOFFS & BANKRUPTCY

Pixar Animation Studios laid off around 14% of its workforce (approximately 175 employees) as it scales back development of original streaming series. This move comes as Disney CEO Bob Iger aims to cut spending on original streaming content and focus on profitability for Disney+. More Here

STARTUPS & PEOPLE

Anthropic, an AI Startup has hired Krishna Rao, an Airbnb veteran, as its first chief financial officer (CFO) as the company plans to expand its AI offerings and better compete against rivals like OpenAI. Rao will shape Anthropic's financial strategy and operations, with the startup having raised billions from Google, Amazon, and other investors to keep pace with Microsoft-backed OpenAI. Anthropic has made several key hires recently, including appointing Instagram co-founder Mike Krieger as chief product officer, as it aims to generate over $850 million in annualized revenue by the end of 2024. More Here

Snowflake Inc.'s talks to acquire AI startup Reka AI for over $1 billion have broken down. Reka develops large language models for generative AI tasks like image captioning and chatbots. Snowflake sees generative AI as a way to boost its data analytics business. Despite this, the deal discussions between Snowflake and the $300 million-valued Reka have ended. More Here

Copper Banking, a digital banking service for teens, discontinued its bank accounts and debit cards due to its banking provider Synapse filing for bankruptcy. Many customers lost access to their funds, but Copper plans to offer a white-labeled family banking product later this year. The company is shifting focus to its financial education product "Earn" which has seen strong growth. More Here

Adam Selipsky, the CEO of Amazon Web Services (AWS), will step down next month after leading the cloud computing unit since 2021. Matt Garman, currently the vice president of sales, marketing, and global services at AWS, will take over as the new CEO on June 3. AWS generates nearly two-thirds of Amazon's overall profits and had an annual revenue of over $90 billion last year. More Here

LATEST IN EMERGING TECH

Humane, the startup behind the poorly-reviewed AI Pin wearable computer, is seeking a potential buyer for its business at a price of between $750 million and $1 billion. The AI Pin has been widely criticized for its slow responses and subpar user experience, despite being pitched as a way to reduce smartphone dependence. Humane has raised $230 million from investors, including OpenAI CEO Sam Altman, but its $850 million valuation from 2023 may be difficult to maintain. The list of potential buyers for Humane seems quite small, given the price and the uncertainty around the value of its intellectual property. More Here

A new coalition called Tech Against Scams has been launched by major tech companies including Match Group, Meta, Coinbase, Kraken, Ripple, and Gemini. It aims to combat online fraud across dating apps, social media, and crypto platforms through collaboration, information sharing, and public education initiatives. The coalition will focus on tackling scams like romance fraud, "pig butchering" crypto investment scams, and AI-powered deception tactics. More Here

Microsoft announces updates to Azure AI Studio and Copilot Studio for building generative AI apps. Azure AI Studio now offers pay-as-you-go inference APIs, tools for training/debugging, and integration with Microsoft Purview. Copilot Studio introduces Copilot agents for orchestrating AI-powered workflows and extensions/connectors for customizing Copilot capabilities. More Here

SAG-AFTRA, the union representing TV/radio artists, backed Scarlett Johansson in her concerns over an OpenAI voice AI sounding like her. Johansson said she had declined OpenAI's request to use her voice for their new GPT-4o model's "Sky" persona. OpenAI CEO Sam Altman clarified the voice belonged to another actress and removed it from their products. SAG-AFTRA supports legislation to protect actors' voices/likenesses and wants transparent protections from AI companies like OpenAI. More Here

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HOW’S TODAY’S COFFEE ?

That’s It For Today! Will Meet You Tomorrow. Happy Wednesday!☕

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