OpenAI Acquires Video Collaboration Platform & Telegram Faces Security Concerns Over Small 30-Engineer Team

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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, VC funds, and some cool tech – all in just 5 minutes ☕! Today’s major updates include -

• OpenAI has acquired Multi, a startup developing an enterprise-focused, video-first collaboration platform, in what is reportedly an acqui-hire deal.

• The RIAA and major music labels have filed lawsuits against AI music companies Suno and Udio, alleging massive copyright infringement.

• Telegram founder Pavel Durov's recent claim of employing only 30 engineers has raised concerns among security experts.

• The European Commission has shared preliminary findings indicating that Apple's current App Store rules violate the Digital Markets Act (DMA).

• Featured Article : How to Sell Your Business Model to VCs?

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Startup Funding Updates

TechWolf, a startup based in Ghent, Belgium, has developed an AI engine that analyzes internal workflow data to help organizations better manage their employees' skills and talents. The company has raised $42.75 million in a Series B funding round led by Felix Capital, with participation from SAP, ServiceNow, Workday, and other investors. More Here

Inventive, a San Francisco, CA-based startup building embedded AI for SaaS products, closed a $6.5m seed funding round. The round was led by Wing VC, with participation from Tokyo Black and an angel investors group led by founders and former Google and Meta executives. More Here

Zyod, an Indian startup based in Gurugram, offers a tech platform to help global fashion brands streamline their design-to-delivery process and assists Indian factories in manufacturing fashion wear. The company has raised $18 million in a Series A funding round led by RTP Global, with participation from Lightspeed, Alteria Capital, Stride Ventures, Stride One, and Trifecta Capital. More Here

Emergence, a generative AI startup based in the U.S., is developing an "agent-based" system to automate tasks typically handled by knowledge workers, including an orchestrator agent for workflow automation. The company has emerged from stealth with $97.2 million in funding from Learn Capital, plus credit lines totaling more than $100 million. More Here

EpilepsyGTx, a London, UK-based biotechnology company focused on research and development of gene therapies to treat focal refractory epilepsy, raised $10M in Seed funding. The round was led by UCL Technology Fund, with participation from Health Technology Holding. More Here

Curve, a London, UK-based provider of a digital wallet, received an investment from Samsung Next. The amount of the deal was not disclosed. This new investment takes Curve’s total raised funds to over $250m. More Here

Rapafusyn Pharmaceuticals, a Baltimore, MD-based company which specializes in the discovery and development of therapeutic drugs based on non-degrading molecular glues, raised $28M in Series A funding. The round was led by 3E Bioventures Capital and Proxima Ventures Ltd. with participation from Lapam Capital. More Here

TrackLight, an El Dorado Hills, CA-based company which specializes in AI-assisted fraud detection and prevention, raised $3M in Seed funding. The round was led by BarronKent and Growth Factory. More Here

Wilya, formerly known as Gig and Take, a NYC-based B2B SaaS company providing a skills operating system for HR practices in the manufacturing and supply chain sectors, raised $4M in Seed funding. The round was led by Ironspring Ventures, with participation from Schematic Ventures, Plug & Play Ventures, Iron Prairie Ventures, Motivate Ventures, and 25Madison. More Here

Ocon Therapeutics, a Modiin, Israel-based health company which specialised in drug delivery systems, raised $10M in funding. The round was led by RH Capital, with participation from Features Capital, Astia Angels, and Exerte Partners. More Here

Zlich, a London, UK-based provider of an ad-subsidised payments network (ASPN), raised £100M in a securitisation debt deal. The deal was led by Deutsche Bank (DB). More Here

SoSoValue, a Singapore-based crypto financial research startup, raised $4.15M in Seed funding. The round was led by HongShan, GSR Markets, Alumni Ventures, CoinSummer Labs, and One Piece Labs. Gitcoin Co-founder, Ethereum early investor, and founders of top Web3 and AI tech firms also participated. More Here

Vico Therapeutics, a Leiden, The Netherlands-based clinical-stage genetic medicines company, raised EUR11.5M in the second closing of its Series B funding. Backers included Seroba, and Kurma Partners, via the Kurma Growth Opportunities Fund. More Here

Net Zero Company, a Stockholm, Sweden-based company providing carbon removal solutions, raised $5.5M in Seed funding. The rund was led by Oilinvest, VARO Energy, and SilviCarbon. More Here

VoltR, an Angers, France-based manufacturer of lithium batteries, raised €4M in funding. Backers included C4 Ventures, Exergon, Pays de la Loire Participations and Anjou Amorçage, among others. More Here

Tandem Health, a Stockholm, Sweden-based startup that develops AI-powered software to reduce administration in healthcare, raised $9.5m in seed funding. The round was led by Northzone with participation from OpenAI, Google DeepMind, the founder of Capio Sverige, and healthcare VC Amino Collective. More Here

Venture Capital Updates

Columna Capital, a lower mid-market private equity firm investing in Western Europe, closed Columna Capital Fund III, at €290M. Columna Fund III attracted institutional and family office, endowment and high-net-worth investors based in the US, UK, France, Switzerland, Italy and South Africa. More Here

Featured Article

How to Sell Your Business Model to VCs?

When it comes to the business model, it’s not enough to simply describe your pricing. To convince investors, your slide must explain the following:

- how you will make money
- why that engine will be efficient
- how it will turn into a competitive advantage in the long run

And that’s where things get tricky. Many believe the best course of action is stripping the business model slide to the bones and avoiding burdening it with unnecessary metrics and information. The problems begin when some of those metrics and information you leave out turn out to be pretty darn necessary for selling your model to investors.

So here are the 4 mistakes that I see founders make, and ways to fix them:

1. Mistake #1: Treating Your Business Model as a Pricing Slide

Instead of just listing pricing tiers, explain the overall mechanics of your business model, including primary revenue streams (subscriptions, transaction fees, etc.), and the logic/key drivers behind them.

2. Mistake #2: Having Too Many Revenue Streams

Early-stage companies should focus on a maximum of 3 core revenue streams, with 1-2 being the primary focus. Differentiate between current and future revenue sources.

3. Mistake #3: Not Showing Your Competitive Advantage

Highlight the unique competitive edge or "moat" that makes your business model sustainable and de-risks it for investors (e.g., low costs, high margins, effective land and expand motion, scalability).

4. Mistake #4: Not Discussing Business Model Economics

Illustrate the attractive aspects of your unit economics to support your claims, such as low Customer Acquisition Cost (CAC), high Customer Lifetime Value (LTV), favourable LTV: CAC ratio, short payback cycles, and high profit margins.

Bonus Tip

The Ultimate Business Model Slide Investors love a slide that concisely presents the key business model drivers, the path to $100M+ revenue, and verification against the overall market size.

So, keep your business model slide clean, focus on the primary model and key revenue streams, and include a few crucial unit economics metrics to justify your strategy.

Read detailed article in our Venture Curator newsletter.

Startup’s Latest Buzz

Acquisition & Going Public

OpenAI has acquired Multi, a startup developing an enterprise-focused, video-first collaboration platform, in what is reportedly an acqui-hire deal. 

This acquisition follows OpenAI's recent purchase of database tech firm Rockset, indicating a strategic focus on expanding its enterprise solutions. Multi, which raised $13 million from investors like Greylock and First Round Capital, will shut down after July 24, with most of its team joining OpenAI. This move aligns with OpenAI's broader strategy of investing in enterprise solutions, as evidenced by the growing adoption of its corporate ChatGPT tier and other business-oriented initiatives. More Here

RXO, a Charlotte, NC-based provider of asset-light transportation solutions, acquired Coyote Logistics, an asset-light freight brokerage business, for $1.025 billion, from UPS. More Here

Layoffs & Bankruptcy

Startups & People

Prosus, Byju's largest external investor with a 9.6% stake, has declared its once-$2.1 billion investment in the Indian edtech startup is now worth nothing.

This valuation drop comes after Byju's faced financial and governance challenges, including missed reporting deadlines and board member departures. Despite writing off its stake, Prosus remains hopeful about Byju's future, emphasizing that improved governance will be crucial. The development follows BlackRock's similar write-off and reflects the broader struggles of the formerly most valuable Indian startup, which recently raised funds at a drastically reduced valuation amid legal disputes with major backers. More Here

Telegram founder Pavel Durov's recent claim of employing only 30 engineers has raised concerns among security experts. They argue that such a small team is inadequate to handle the security needs of a platform with nearly a billion users, especially given Telegram's lack of default end-to-end encryption and its popularity among high-risk users. This revelation has led experts to warn that Telegram may be more vulnerable to cyber threats and legal requests than previously thought, potentially compromising user data and privacy. More Here

Nvidia Corp. Vice President Simona Jankowski, who runs investor relations and strategic finance at the chipmaker, is leaving to become chief financial officer at a startup. Jankowski, a veteran Goldman Sachs Group Inc. analyst who joined Nvidia in 2017, made the announcement in a LinkedIn post on Monday.

Latest In Emerging Tech

The European Commission has shared preliminary findings indicating that Apple's current App Store rules violate the Digital Markets Act (DMA), particularly regarding restrictions on third-party developers informing customers about alternative purchasing options. Additionally, the Commission is opening a new investigation into Apple's controversial Core Technology Fee and the user experience of installing alternative app stores. Apple now has the opportunity to respond to these findings and potentially adjust its business terms to avoid significant fines, which could reach up to 10% of its global annual turnover.

Apple reportedly held brief talks with Meta about AI model integration in March but abandoned the idea due to privacy concerns and potential image issues. The iPhone maker recently launched its own AI features under the Apple Intelligence brand and announced partnerships with OpenAI and Google for AI integration. Meanwhile, Meta is focusing on deploying its AI chatbot across its own apps, which have billions of users worldwide. More Here

The RIAA and major music labels have filed lawsuits against AI music companies Suno and Udio, alleging massive copyright infringement through unauthorized use of copyrighted recordings to train their AI models. The labels argue that these AI-generated songs could compete with and devalue genuine recordings, seeking injunctions and damages.

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