Microsoft Investing $3.2 Billion In Sweden & Google Fired 100 Employees From Cloud Unit

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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 -

• Microsoft is cutting thousands of jobs at its Azure cloud unit, according to a report by Business Insider.

• Despite raising $100 millions, LoanSnap, an AI mortgage startup, is facing lawsuits from creditors and has been evicted from its headquarters.

• Alphabet's Google is laying off at least 100 employees from several teams in its cloud unit.

• Fearless Fund faced a setback as a court ruled its Strivers Grant for Black women violates civil rights laws.

• Microsoft is investing 33.7 billion Swedish crowns ($3.2 billion) to expand its cloud and artificial intelligence infrastructure in Sweden over a two-year period.

• Cloudera, a former Hadoop startup, acquired AI startup Verta to strengthen its operational AI capabilities and manage large language models used in generative AI.

• Featured Article : Sam Altman: Successful Pivots Typically Fall Into Two Categories.

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STARTUP FUNDING UPDATES

SiFi (Simplified Financial Solutions Company), a Saudi Arabia-based spend management platform, has raised $10 million in a seed funding round led by Sanabil Investments, a member of Saudi's Public Investment Fund, and RAED Ventures, an early-stage MENA VC. More Here

Workbox, a Chicago, IL-based national workspace operator, raised $17.5M in Series A funding. The round, which has a follow-on option to secure an additional $5.5m, was led by Chicago Atlantic. More Here

Ashby, a San Francisco-based platform that consolidates existing talent acquisition tools and leverages AI to automate tasks in the recruitment pipeline, has raised $30 million in a Series C funding round. The round was led by Lachy Groom, with participation from tech entrepreneur Elad Gil, F-Prime, and Y Combinator, bringing Ashby's total funding to $70 million. More Here

Gireve, a Paris, France-based provider of a B2B platform for EV charging, raised €20M in funding. The round was led by Partech, with participation from Groupe EDF, ENEDIS, Banque des Territoires, and Demeter. More Here

Triple Hair Group, a Montréal, Canada-based company which specializes in the development of innovative treatments for androgenic alopecia, raised $4M in funding. Backers included Prevail Partners, New Brunswick Innovation Fund and the Québec gover. More Here

Neural Concept, a company based in Lausanne, Switzerland, has developed a platform that applies AI and deep learning to accelerate the design and simulation process for various industries, including automotive, microelectronics, aerospace, and energy. The company has raised $27 million in a Series B funding round led by Forestay Capital, with participation from D.E. Shaw Group, Alven, Constantia New Business, HTGF, and Aster Group. More Here

Bioptha, a Paris, France-based preclinical biotech company, raised €6.5M in Seed funding. The round was led by UI Investissement (via the Pertinence Invest 2 Fund, advised by Mérieux Equity Partners), Elaia and GO Capital, with participation from Unither Pharmaceuticals and HTL Biotechnology. More Here

Caju AI, a Charlottesville, VA-based provider of generative AI-powered solutions for customer engagement, raised $3M in Seed funding. Backers included Grotech Ventures, Felton Group, the family office of Charlottesville, VA based hedge fund manager Jaffray Woodriff, and angel investors. More Here

Ashby, a San Francisco, CA-based provider of a recruiting platform, raised $30M in Series C funding. The round, which brought the total amount to $70M, was led by Lachy Groom, with participation from Elad Gil, F-Prime, Y Combinator, and existing customers. More Here

Psylo, a San Diego, CA-based biotechnology company focused on the development of next-generation neuroplastogens, raised $8M in Seed funding. The round was led by Tenmile, with participation from Palo Santo, Focalpoint Ventures (formerly Empath Ventures), Mystic Ventures, and Gaingels. More Here

Frore Systems, a San Jose, CA-based thermal technology company for electronic and consumer devices, raised $80M in Series C funding. The round, which brought the total amount to $196M, was led by Fidelity Management & Research Company, with participation from Prosperity7 Ventures, together with all existing investors, Mayfield Fund, Clear Ventures, Addition, Qualcomm Ventures, MVP Ventures, Stepstone Group, Alumni Ventures, and others. More Here

Seqana, a Berlin, Germany-based provider of a SaaS platform that measures the climate impact of carbon farming projects, raised €2.1M in Seed funding. The round was led by HTGF and Counteract with participation from existing investor ReGen Ventures, Axel Stepken (Former CEO @ TUEV SUED), Stefan Gross Selbeck (co-founder and former MD @ BCG Digital Ventures now BCG X ), as well as Klaus Kunz (former VP, Head of ESG @ Bayer, Founder @ Ephrin) and Ben-Elias Brandt (COO @ Ledgy). More Here

Karri, a London, UK-based startup developing a smart walkie-talkie for children, raised £775K in Pre-Seed funding. The round was led by 468 Capital with participation from a group of angel investors such as Verena Pausder, Hakan Koç, Michael Hernaus, Wolfgang Reisinger, Sven Vaders, Matthias Laug, and Christian Indra. More Here

Unibloom World, a London, UK-based climate tech startup providing a cloud-based, data-driven platform, raised £650K in Pre-Sed funding. Backers included Zinc VC, Regenerate Ventures, Alma Invest, Syndicate Room, Keiretsu Forum, Regent Capital Ventures, Ventures Together, SFC Capital, and 25 industry angel investors. More Here

Punto Health, a London, UK-based digital health company focused on managing Alzheimer’s and other dementias, raised £550K in Pre-Seed funding. Backers included Heartfelt Capital, Abac Nest and Bolsa Social Fund along with angels, including a scout from the American fund Sequoia, Bruce Walker (scout from the British fund Ada Ventures), Gail Armstrong (through the British fund Lavender Ventures) and Branislav Trajkovski. More Here

Jupus, a Cologne, Germany-based provider of AI software for the legal sector, raised €1.3M in funding. The round was led by High-Tech Gründerfonds (HTGF), along with Combination VC. Other investors included Felix Plog, Philipp Hammerich and Stefan Schicker. More Here

Odyssey, a New York -based edtech startup, raised $10m in Series A funding. The round was led by Tusk Venture Partners with participation from Andreessen Horowitz, Cubit Capital, and Bling Capital. More Here

Reibus International, an Atlanta, GA-based independent metals marketplace, raised $30M in funding. Backers included Canaan and Nosara, with HSBC as its banking partner. More Here

YoLa Fresh, a Moroccan agritech startup building a transparent and sustainable fresh food supply network, raised $7M in Pre-Series A funding. The round was led by Al Mada Ventures with participation from Algebra Ventures, E3 Capital, Janngo Capital, and FMO, the Dutch entrepreneurial development Bank. More Here

11thEstate, a NYC-based provider of a platform for investors to receive entitlements from securities class action settlements and shareholder compensations, raised $2M in Seed funding. The round was led by Social Leverage. More Here

Iyris, a Saudi Arabia-based AgriClimate technology company, raised $16M in Series a funding. The round was led by Ecosystem Integrity Fund, with participation from Global Ventures, Dubai Future District Fund, Kanoo Ventures, Globivest and Bonaventure Capital. More Here

VENTURE CAPITAL UPDATES

Fearless Fund faced a setback as a court ruled its Strivers Grant for Black women violates civil rights laws. The fund vowed to fight the ruling, citing discrimination in access to funding. However, the case highlights the ongoing debate around equity versus equality in diversity efforts. More Here

Brandon Capital, Australia’s largest life science investment fund, aims to raise $350 million VC fund, has raised $270 million from Superannuation funds Hostplus and HESTA, biotech giant CSL and the Queensland Investment Corporation. More Here

FEATURED ARTICLE

Sam Altman: Successful Pivots Typically Fall Into Two Categories.

“Pivoting in the business world has become a bit of a buzzword, hasn't it?

It's almost like a shiny badge of honour that some wear proudly. The whole concept revolves around changing course when things aren't going as planned, and there are people out there who actually brag about how many times they've pulled off a pivot. But let's just pause for a moment and really think about what this means.

Pivoting, in essence, is a sign that things didn't go according to plan, in simple words - it’s a failure!

It's a recognition that the initial strategy or idea didn't pan out as expected. And you're right, failure is undeniably part and parcel of the entrepreneurial game. It's important to be tolerant of failure, not holding it against anyone, and certainly not turning it into a celebration.

However, there's a fine line between acknowledging failure and glorifying it as a success. Some entrepreneurs proudly wear the badge of multiple pivots, almost boasting about how many times they've changed direction.

But here's the thing – pivoting a startup is sucks, plain and simple.

The focus should be on learning from it and avoiding the repetition of the same mistakes, rather than treating it as a badge of honour.

Great startups, the ones that truly succeed, don't necessarily see pivoting as a badge of honour. They view it as a learning experience that contributes to building a potentially successful business.

Not all pivots are created equal, and the distinction lies in the reasons behind them.

If you look at some great startups that pivot you will find that - there are two types of pivots that tend to be more successful and make total sense.

First, there's the pivot where the founder ends up building something they were passionate about from the start.

Take Instagram's Kevin Systrom, for example. His initial venture, Bourbon, wasn't working out. During a vacation, he built something he was genuinely passionate about—photography with filters. This pivot worked because it aligned with his true interests.

The second type of pivot that makes sense is born out of necessity.

Consider Airbnb's founders during the financial crisis. They were broke, maxed out credit cards, using plastic sheets to keep track of them—real desperation. In this dire situation, they rented out a spare room to make ends meet. This pivot was out of sheer survival, and it worked. Today, Airbnb is known for more than just spare rooms; it's a significant player in affordable housing.

However, the common type of pivot, where founders sit down, realize their startup isn't working, and brainstorm a new idea on a whiteboard, rarely succeeds.

Why? Well, if you're rushing to come up with an idea, chances are it won't be a good one. Moreover, if you already have investors, you need a plausible-sounding idea to present to them.

It's fine to have a good idea that initially sounds bad, but pivoting into such an idea is tougher.” Sam Altman Here

STARTUP’S LATEST BUZZ

ACQUISITION & GOING PUBLIC

Ciphr, a Reading, UK-based HR and payroll software provider, acquired Shape Payroll, a Southampton, UK-based cloud payroll platform used by 1,500 businesses. More Here

Cloudera, a former Hadoop startup, acquired AI startup Verta to strengthen its operational AI capabilities and manage large language models used in generative AI. This move aims to keep Cloudera relevant in the AI market, as companies increasingly adopt LLMs and need tools to manage them. More Here

LAYOFFS & BANKRUPTCY

Microsoft is cutting hundreds of jobs at its Azure cloud unit, according to a report by Business Insider. The layoffs will impact teams including Azure for Operators and Mission Engineering, with Azure for Operators facing as many as 1,500 job cuts. More Here

Alphabet's Google is laying off at least 100 employees from several teams in its cloud unit, including roles in sales, operations, engineering, consulting, and "go-to-market" strategy. The job cuts come after Google laid off an unspecified number of employees across different teams in April and hundreds more in January, as the tech giant aims to cut costs amidst economic uncertainty. More Here

CalAmp Corp., which develops software designed to track vehicles and improve company logistics, has filed bankruptcy to complete a debt-cutting deal that hands control of the business to lender Lynrock Lake Master Fund LP. More Here

STARTUPS & PEOPLE

LoanSnap, an AI mortgage startup, is facing lawsuits from creditors and has been evicted from its headquarters.

Despite raising around $100 million in funding, the company has been sued by at least seven creditors and fined by state and federal agencies. Employees are worried about the company's future, with missed payrolls and dwindling headcount. More Here

MicroStrategy Inc. and its co-founder and Chairman Michael Saylor will pay $40 million to resolve a tax fraud lawsuit filed by the Washington, DC, attorney general's office. The lawsuit alleged that Saylor had failed to pay more than $25 million in income taxes despite living in Washington for over a decade. While neither Saylor nor MicroStrategy admitted to any wrongdoing, the settlement represents the largest income tax recovery in the District's history. More Here

Coinbase has donated $25 million to Fairshake's super PAC, bolstering the campaigns of crypto-friendly congressional candidates in upcoming state primaries. This donation follows similar contributions from Ripple, a16z, and others, bringing Fairshake's total balance to $161 million for the 2024 federal elections. More Here

LATEST IN EMERGING TECH

Apple is set to unveil its AI integration plans at WWDC, including AI-powered features in iOS 18 apps like Siri, Photos, Safari, Notes, Messages, and Mail, leveraging its own Ajax LLM and OpenAI partnership. Siri will get a major AI upgrade, allowing it to control app features and provide more natural responses, while other apps will offer AI recaps, transcriptions, and creative tools. Apple aims to incorporate AI while prioritizing data privacy and on-device processing. More Here

Microsoft is investing 33.7 billion Swedish crowns ($3.2 billion) to expand its cloud and artificial intelligence infrastructure in Sweden over a two-year period. The investment will include deploying 20,000 advanced graphics processing units and training 250,000 Swedes with AI skills across various sectors. More Here

Arm Holdings aims to gain more than 50% of the Windows PC market within five years, as Microsoft and its hardware partners prepare to launch a new batch of computers based on the British chip designer's technology. Arm's CEO, Rene Haas, stated that Microsoft has made a significant commitment to ensure the adoption of Arm-based chips, providing a suite of software developer tools to enable the production of programs that function on these chips. More Here

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

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