Microsoft declares OpenAI as competitor & US Justice Dept. Investigating Nvidia's $700 Million AI Startup Acquisition

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

Top News

The U.S. Department of Justice is investigating Nvidia's $700 million acquisition of Run:ai on antitrust grounds. Run:ai's technology helps manage and optimize AI infrastructure, making it a strategic asset in the rapidly growing AI sector.

Intel plans to cut over 15,000 jobs, about 15% of its workforce, as part of a $10 billion cost savings plan for 2025. The company reported a $1.6 billion loss in Q2 2024 and is facing challenges in AI server chips and competition from ARM-based processors.

Other Major News

• Midjourney releases V6.1 model, which is faster and "generally more beautiful" (Scroll To Tech Updates)

• Microsoft has officially listed OpenAI as a competitor in AI Despite being the largest investor and exclusive cloud provider for OpenAI. (Scroll To Tech Updates)

• Meta anticipates needing 10 times more computing power for Llama 4 compared to Llama 3. (Scroll To Tech Updates)

• Antler’s Cheatsheet: How much can founders realistically raise in their first round? (Scroll To Featured Article)

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Startup Funding Updates

Healx, a Cambridge-based startup using AI to discover new drugs for rare diseases, has raised $47 million in a Series C round. The funding was co-led by Atomico and R42, with participation from Ayana Capital, Balderton, Btov, Global Brain, Jonathan Milner, O2h and VU Venture Partners. More Here

Axle Energy, a London, UK-based energy flexibility platform connecting distributed assets with energy markets, raised $9M (£7M) in seed funding. The round, which brought the total amount raised by the company to over $10M (£8M), was led by Accel with participation from existing investors Picus Capital and Eka Ventures More Here

Mintify, a Uniondale, NY-based builder of an NFT order book, raised $3.4m in funding. Backers included ARCA, Cumberland, Psalion, Master Ventures, Zeneca, GM Capital, and Spencer VC. More Here

Knowde, an online marketplace for chemicals and polymers, has secured a $60 million Series C round. The funding, led by new investors Blue Cloud Ventures and Point72 Private Investments alongside existing backer Sequoia, values the company at over 20x ARR. While this valuation is lower than its previous $500 million. More Here

TS Conductor, a Huntington Beach, CA-based manufacturer of advanced electric power lines, closed a $60m growth funding round. The round was led by Wellington Management, joined by Quanta Services, Gates Frontier, Energy & Environment Investment, Inc., Blue Earth Capital, and Edison International, and repeat investors National Grid Partners, Breakthrough Energy Ventures, and a subsidiary of NextEra Energy Resources. More Here

PortfolioPilot.com, a San Francisco, CA-based AI-driven financial advisory platform from Global Predictions, closed a $2M seed funding round. It’s backed by Morado Ventures, NEA Angel Fund, Unpopular Ventures, and several prominent Silicon Valley angel investors, this new capital brought the total funds raised to $4M. More Here

SafeGuard Privacy, a NYC-based provider of a SaaS-based compliance platform that allows publishers, agencies, brands, data providers, and tech platforms to assess, audit, and comply with global privacy laws, closed a $3.6M USD funding round. The round was led by TechOperators, Dynamism Capital, Sidekick Partners, and two other existing investors. More Here

Mindera Health, Inc., a San Diego, CA-based company developing and commercializing next-generation medical technology to enable a new era of skin analytics at the molecular level, closed a $14M convertible note financing. The round was led by Mountain Group Partners and other existing investors in anticipation of a Series B financing in 2025. More Here

Agrovision, a Los Angeles, CA-based healthy superfruit platform, raised $100m in equity financing at over $1 Billion valuation. Backers included Aliment Capital alongside other new and existing investors, including Steve Kaplan, Co-Founder of Oaktree Capital Management. More Here

Protect AI, a Seattle, WA-based artificial intelligence (AI) and machine learning (ML) security company, raised $60M in Series B funding. The round was led by Evolution Equity Partners with participation from 01 Advisors, StepStone Group, Samsung, and existing investors Acrew Capital, boldstart ventures, Knollwood Capital, Pelion Ventures, and Salesforce Ventures. More Here

Sora Fuel, a Cambridge, MA-based startup producing sustainable aviation fuel (SAF) using water, air and renewable energy, raised $6m in seed funding. The round was led by The Engie Ventures with participation from Wireframe Ventures. More Here

When, a Chicago, IL-based AI-powered offboarding solution designed to help employees navigate post-employment transitions and maintain access to healthcare by offering more affordable alternatives to COBRA, closed its latest Seed funding round of $4.6m. The round was led by B Capital and joined by TTV Capital, Joyance Partners, Alumni Ventures, Network Ventures, and Enfield Capital Partners. More Here

Outpace Bio, a Seattle, WA-based cell therapy company using AI-powered protein design to program immune cells for improved function inside patients battling solid tumors, raised $144m in Series B financing. The Series B financing, which brought the total capital raised to approximately $200m, was led by RA Capital Management, with participation from new investors Qatar Investment Authority (QIA), Surveyor Capital (a Citadel company), Sheatree Capital, Black Opal Ventures, Alexandria Venture Investments, and other undisclosed investors. More Here

Naturaz, a Philadelphia, PA-based clean health and beauty company that formulates, manufactures and distributes vegan hair care products for curly hair, raised $1m in seed round of financing. Key investors in the round included the Philadelphia Community Impact Fund, which invested $300k in the round, the Bucks County IDA and other investors. More Here

Streamkap, a San Francisco, CA-based real-time data exchange to sync data between systems as well as between companies, raised $3.3m in seed and pre-seed funding. The round was led by InReach Ventures with participation from TEN13, Haatch Ventures, and Begin Capital. More Here

Zoe, a London, UK-based nutrition science startup, raised $15m in a Series B extension funding. Coefficient Capital provided the funding. More Here

Myne, a Berlin, Germany-based managed co-ownership provider for premium vacation homes, closed its €40m Series A funding round in equity and debt financing. The round was led by hospitality and real estate-focused private equity firm Limestone Capital with participation from existing investors such as Motive Ventures and Scope Hanson. More Here

Sybill, a Mountain View, CA-based provider of an AI assistant designed for sales teams, raised $11m in Series A funding. The round was led by Greycroft, with participation from Neotribe Ventures, Powerhouse Ventures, and Uncorrelated Ventures, along with angels like Ashish Gupta, Kathleen Estreich, Bryce Winkelman, Tanuj Thapliyal, and many others. More Here

Tezi, a Menlo Park, CA-based autonomous AI recruiter, raised $9M in seed funding. The round was led by 8VC and Audacious Ventures, with participation from Liquid 2, Afore, Prime Set, and South Park Commons, as well as angel investors including the founding CEOs of Instacart and Thumbtack. More Here

Bee, a San Francisco, CA-based AI developer of a life admin wearable assistant, raised $7M in seed funding. The round was led by Exor with participation from Greycroft, New Wave VC, Banana Capital, and Brian Bedol. More Here

Intelmatix, a Riyadh, Saudi Arabia-based deep tech AI company, raised $20m in Series A funding. The round was led by Shorooq Partners with participation from Saudi Venture Capital Company, Saudi Technology Ventures, and Olayan Financing Company. More Here

Lovetovisit, a Cardiff, Wales, UK-based travel platform which helps people find and book local attractions, experiences and events, raised £3.2m in funding. The round was led by Venrex and Redrice Ventures with participation from Active Partners, Velocity Partners and angels. More Here

Tracktile, a Charlottetown, Prince Edward Island, Canada-based SaaS startup empowering manufacturers with complete visibility into their operations, closed its $575k pre-seed financing round. The round was led by BDC Capital’s Seed Venture Fund and Island Capital Partners, with participation from the New Brunswick Innovation Fund. More Here

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Venture Capital Updates

Moxxie Ventures, founded by Katie Jacobs Stanton ex-twitter media head, closed a $95 million third fund, surpassing its $85 million target. Despite a challenging fundraising environment, Moxxie, which invests in pre-seed and seed startups, secured strong LP support, including Cendana Capital and Accolade Partners. The firm focuses on underrepresented founders, with about a third of its portfolio companies led by female founders and half by BIPOC. More Here

Featured Article

Antler’s Cheat sheet: How much can founders realistically raise in their first round?

Antler has shared a cheat sheet to help founders assess their ability to raise capital in the initial funding round -

When it comes to fundraising, two factors can make all the difference: founder pedigree and traction.

1. Founder Pedigree: The less traction you have, the more your background matters. Investors look at your past to assess whether you can deliver in the future. It's about limiting execution risk.

This isn't necessarily rational. Great founders get overlooked because they don't fit the typical pattern. But with thousands of similar opportunities, it's a real filter for investors.

2. Traction: Traction beats pedigree. When you present more than just an idea on paper and your product has gained some traction, your ability to raise increases. Lower-profile founders can raise funds when their idea becomes more than just an idea.

Some factors can change the game -

1. "Levelling up cheats" moves you to one field to the right in the fundraising matrix, potentially increasing your chances. These might include factors like having a strong co-founder, industry expertise, or unique insights.

2. "Handicaps" move you to one field left, possibly making fundraising more challenging. These could be factors like a lack of relevant experience or a difficult-to-explain product.

There are two must-haves without which you won't be able to raise, regardless of pedigree or traction:

• Fundraising-ability: You need reasonable fundraising skills. Networking, sales skills, storytelling, and running a tight process are crucial.

• Market attractiveness: Your market must be significant and attractive. In the early stages, it's binary - either investors get excited about the opportunity, or they don't.

Remember

• Valuations are a function of capital raised. Assume 15-25% dilution irrespective of the amount raised. For example, if a team raises 800k, the valuation will likely be between 3.2m - 5.3m.

• LinkedIn profile beats pitch deck in very early stages. Many investors will check your LinkedIn before deciding on a first meeting or looking at your pitch deck.

When is this wrong?

• Numbers are purely directional. They've been validated with experienced investors, but they're not exact.

• This model is primarily for software startups. Biotech & Hardware companies play by different rules.

• Copycat models are very binary. Experienced teams can attract large funding, while others struggle to raise anything.

• Raising from a rich uncle or family/friends who aren't experienced venture investors follows different rules.

Remember, great founders come from all backgrounds. If you don't fit the "classic" profile, you might need to prove more in the beginning, but there are countless examples of founders without traditional backgrounds building awesome companies.

We haves shared in detailed writeup in our Venture Curator newsletter, Check out here…

Startup’s Latest Buzz

Acquisition & Going Public

Open source compliance platform FOSSA has acquired StackShare, a popular developer community platform with over 1.5 million registered users.

Airtable has acquired Dopt, a startup specializing in product onboarding experiences, primarily for its AI-based assistance tools and talent. The Dopt team will join Airtable's AI group, focusing on developing new AI capabilities and user experiences.

Layoffs & Bankruptcy

Rad Power Bikes, a Seattle-based e-bike startup, has undergone its fifth round of layoffs since April 2021, with the latest cuts primarily affecting product development teams. The company, which has raised over $300 million from investors, cited rising costs and economic headwinds as reasons for the decision.

Startups & People

Don Lemon has filed a lawsuit against Elon Musk and X, claiming unfair termination of their partnership and refusal to pay him. The suit alleges X agreed to pay Lemon at least $1.5 million plus incentives, but canceled the deal after Lemon announced Musk as his first guest.

Latest In Emerging Tech

Microsoft has officially listed OpenAI as a competitor in AI, search, and news advertising in its latest annual report, signalling a shift in their relationship.

Despite Microsoft being the largest investor and exclusive cloud provider for OpenAI, both companies are now encroaching on each other’s market territories. An OpenAI spokesperson indicated that their competitive dynamic was always expected as part of their partnership, and Microsoft still remains a strong partner for OpenAI.

Aurora Innovation, a self-driving technology company, is raising up to $420 million through a stock offering to fund its race towards a driverless commercial launch by end of 2024. The company, which went public via SPAC in 2021, plans to offer autonomous trucking services as a carrier using up to 20 Paccar and Volvo trucks. Despite having $402 million in cash and $618 million in short-term investments as of June 30, Aurora spent $198 million in Q2 2024 and is banking on future revenue from its partnership with Uber Freight to offset costs.

Suno, an AI music generation startup, admitted in a court filing that it trained its model using copyrighted songs, claiming this was legal under fair use. The admission came in response to a lawsuit filed by the RIAA against Suno and Udio for alleged copyright infringement.

Meta anticipates needing 10 times more computing power for Llama 4 compared to Llama 3, with Mark Zuckerberg emphasizing the importance of building capacity proactively. The company is investing heavily in AI infrastructure, with capital expenditures rising 33% to $8.5 billion in Q2 2024.

Midjourney has released version 6.1 of its image model, featuring improved image quality, faster generation, and better handling of human extremities and text accuracy. The update focuses on refining problem areas and introduces new upscaler tools, with a new parameter for added texture. While the improvements are notable, the longer development time suggests a potential slowdown in the rapid advancement of diffusion models.

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