OpenAI Launches SearchGPT To Rival Google, Perplexity & Musk To Discuss $5 Billion xAI Investment with Tesla Board

☕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

OpenAI unveiled Google’s Competitor SearchGPT, a new search feature designed to provide timely answers from web sources. The prototype, powered by OpenAI's models, is launching for a small group of users and publishers. SearchGPT aims to enhance conversational capabilities with real-time web information, making searches faster and easier.

The tool prominently cites and links to publishers, with OpenAI working to design the experience alongside them. However, the launch comes amid concerns about AI-powered search tools' accuracy and potential impact on publisher traffic. OpenAI positions SearchGPT as a responsible deployment, separate from training their AI foundation models.

Other Major News

• Venture Curator Hub: We’ve updated the investors email contact database and added more investors emails. (Scroll Down)

• Musk To Discuss $5 Billion xAI Investment with Tesla Board. (Scroll To Tech News)

• Meta may be facing its first EU antitrust fine. Reuters reports that Meta could be slapped with fines as high as $13.4 billion for tying classified advertisements service. (Scroll To Tech News)

• Y-Combinator: These are signs of Fake Product Market Fit... (Scroll To Featured Article)

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Startup Funding Updates

Archera, a Seattle, WA-based provider of cloud purchasing and management solutions, raised $17M in Series B funding. The round was led by HighSage Ventures with participation from Ridge Ventures, Amplify Partners, and PSL Ventures. More Here

Applied Intuition, a Mountain View, CA-based vehicle software supplier, raised over $300M in Secondary round. The company added Fidelity Management & Research Company as a new investor as existing investors General Catalyst, BOND, Lux Capital and Elad Gil also participated. More Here

DocketAI, a virtual customer support platform, in August 2022 in San Francisco. The company recently announced a $25 million Series B round led by Sequoia Capital and Andreessen Horowitz. More Here

VoiceFlow, a speech recognition startup based in Nairobi, Kenya, is developing AI technology to improve customer service interactions in African call centers. The company recently raised $5 million in seed funding led by Sequoia Capital and Y Combinator. More Here

The Floorr, a digital platform for personal shoppers and stylists, launched earlier this year, it offers tools for sales, styling sessions, mood boards, and client communication. The company raised $1.7 million in pre-seed funding from investors including Carmen Busquets and Nigora Tokhtabayeva. More Here

Chainguard, a Kirkland, WA-based software security company, raised $140M in Series C funding, at $1.12 Billion valuation. The round, which brought the total amount to $256M, was led by Redpoint Ventures, Lightspeed Venture Partners, and IVP. Existing investors, including Amplify, Mantis VC, Sequoia Capital, and Spark Capital also participated. More Here

Scopio Labs, a Tel Aviv, Israel-based developer of full-field digital cell morphology imaging and analysis platforms, raised $42M in funding. The round, which brought the total amount to $130M, was led by Fortissimo Capital, with participation from existing investors. More Here

Addionics, a London, UK-based battery technology company, raised $39M in Series B funding. The round was led by GM Ventures and Deep Insight, with participation from Scania, along with new and returning strategic investors. More Here

Navigantis, a Miami, FL-based provider of an interventional robotic platform, raised $12M in Series A funding. The round was led by Puma Venture Capital, with participation from Cormorant Asset Management and Mirae Asset Capital. More Here

IntelePeer, a Dania Beach, FL-based AI-powered Communications Automation provider, received $140M in Growth funding. The round was led by Savant Growth and VantagePoint Capital Partners with participation from Savant limited partners including Coller Capital, Hollyport Capital, Manulife Investment Management and Achmea. More Here

Grazzy, an Austin, TX-based provider of a digital payments platform for hospitality and service-focused businesses, raised $4M in Seed funding. Backers included AZ-VC, In Revenue Capital, Iron Skillet Partners, Tuesday Capital, and Next Coast Ventures. More Here

Imperative Care, a Campbell, CA-based medical technology company, announced the initial close of its Series E funding for up to $150M. The round was led by Ally Bridge Group with participation from other existing investors, including D1 Capital Partners, AMED Ventures, Bain Capital Life Sciences, Rock Springs Capital Management LP, Innovatus Capital Partners, LLC and Pura Vida Investments. More Here

GeoWealth, a Chicago, IL-based provider of a proprietary technology and turnkey asset management platform (TAMP), raised a USD18M growth investment led by BlackRock (NYSE: BLK). More Here

SirenOpt, an Oakland, CA-based manufacturing intelligence company, raised $6.6M in Seed funding. The round was led by Voyager Ventures and TOMORROW (part of Visionaries Club), with participation from Climate Club, Union Labs, Berkeley Skydeck Fund, Wireframe Ventures, Impact Science Ventures, Access Industries, Courtyard Ventures, and Climate Capital. More Here

Hash AI, a London, UK-based cryptocurrency mining company which specializes in AI-optimized operations, sustainable practices, raised $10M in funding. The round was led by Bolt’s Capital. More Here

GEOH, an Indianapolis, IN-based provider of end-to-end software solutions for home care, raised $3M in Seed Plus funding. The round was led by Boomerang Ventures, contributing $2M, with participation from VisionTech Partners, First Leaf Capital, Digital Venture Partners, and individual investors. More Here

Jarvis, a London, UK-based pension fintech company that empowers employees to plan for their ideal retirement actively, raised £1.8M in funding. The round was led by Ascension VC and Cornerstone VC, with participation from Tokio Marine Future Fund. More Here

4D Medicine, a Nottingham, UK-based company developing biomaterials for 3D printed implants and surgical devices, raised $3.4M in Series A funding. The round was led by Oshen Holdings and backed by DSW Ventures, SFC Capital, Boundary Capital and private investors including scientists and surgeons. More Here

Micropep, a Boston, MA-based company which specializes in micropeptide technology, raised $29M in Series B funding. The round was led by Zebra Impact Ventures, and BPI Green Tech Investment. Existing investors, Fall Line Capital, FMC Ventures, Sofinnova Partners, Supernova Invest, and IRDI Capital Investissement also participated. More Here

TRiCares, a Paris, France- and Munich, Germany-based company which specializes in the field of minimally invasive treatment of tricuspid regurgitation, raised $50m in Series D funding. The round was led by a single, strategic investor. More Here

Autobahn Therapeutics, a San Diego, CA-based biotechnology company developing restorative treatments for people affected by neuropsychiatric and neuroimmunologic disorders, raised $100M in Series C funding. The round was led by Newpath Partners with participation from new investors Canaan Partners, Monograph Capital, Insight Partners, and existing investors. More Here

Mamo, a Dubai, UAE-based fintech startup on a mission to help small and medium-sized businesses consolidate their payment collection, corporate cards and expense management needs, raised $3.4M in funding. The round was led by 4DX Ventures and the Dubai Future District Fund. Other investors included Cyfr Capital. More Here

Venture Capital Updates

Bregal Sagemount, a NYC-based growth-focused private equity firm, closed its inaugural small-cap fund, Bregal Sagemount Basecamp I, at $500M. The Fund closed at its target and hard cap, inclusive of support from existing Limited Partners, a handful of new institutional investors, and a significant GP commitment. More Here

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Featured Article

Y-Combinator: These are signs of Fake Product Market Fit.

Nowadays - It's pretty common for companies to claim they've nailed product-market fit when, in reality, they're quite far from it. I'd argue this is a major cause of downfall, especially for post-seed companies.

Many founders often face a dilemma where they believe that they have achieved product-market fit based on some factor, but honestly, it’s just a "Fake Product-Market Fit." What are those factors?

1. Firstly, some founders believe they've hit the jackpot when they secure funding from impressive individuals or renowned funds. The thought is that if these influential people or funds chose their company, it must mean they have product-market fit. This belief is surprisingly widespread.

2. Secondly, there's a trend where companies manage to raise substantial amounts, even before having a product that people truly love. Interestingly, instead of focusing on users and improving the product, founders often shift their focus to building the company, which is usually not the best move.

3. Thirdly, there's this phenomenon we call "magical thinking". It involves ignoring obvious facts or not bothering to measure crucial metrics that would reveal whether product-market fit exists. For instance, not understanding churn or the payback period after acquiring a customer. If you're not aware of these numbers, it's easy to convince yourself that you've achieved product-market fit when you haven't.

4. Lastly, there's a tendency for people to delude themselves into thinking they've achieved product-market fit simply because they don't want to face the idea that they might need better engineering or product improvement. Admitting that improving the product is challenging, they find it easier to just believe their product is already good.

Most of the founders fell into this trap of ‘Fake Product Market Fit’. Not only this - one of the most common misconceptions is that

“Product-Market Fit Means Only You've To Build A Product That Your Users Want.

In reality - Product-market fit typically feels like your product is gaining traction with profitable usage.

You might be thinking what’s this profitable usage about?

“It means these users are the ones you want, and economically, they make sense. You're not spending a lot for a user who only brings in a fraction of that cost. There's no crazy three-year payback period or anything like that.

To achieve genuine product-market fit, founders need to determine if they have a real connection between their product and the market, instead of a fake one.

Read more in our recent Venture Curator Newsletter.

Startup’s Latest Buzz

Acquisition & Going Public

Envera Systems, a Tampa, FL-based provider of automated and software-enabled security systems, acquired Applications by Design, Inc. (ABDi), a Boca Raton, FL-based software development company.

Layoffs & Bankruptcy

Byju's, once India's biggest startup, faces insolvency proceedings over a $19 million debt to the cricket board. CEO Raveendran warns of potential service shutdown and mass employee exits in a court filing. The ed-tech giant, valued at $22 billion at its peak, has suffered recent setbacks including job cuts and investor accusations of governance lapses. More Here

Startups & People

WhatsApp has reached 100 million monthly active users in the U.S., with over 50% using iPhones. This milestone comes after Meta's increased marketing efforts in the country, including ad campaigns emphasizing privacy and end-to-end encryption.

Latest In Emerging Tech

Elon Musk announced plans to discuss a potential $5 billion investment from Tesla into his AI startup xAI with the Tesla board. This proposal follows a public poll on X where over two-thirds of respondents supported the idea. The potential investment has raised concerns about conflicts of interest, given Musk's involvement in both companies and Tesla's recent financial performance.

Revolut has received a UK banking licence with restrictions after a three-year wait, marking a significant milestone for the fintech firm. The company enters a 12-month "mobilisation" stage to complete building its UK banking operations.

Meta may be facing its first EU antitrust fine.Reuters reports that Meta could be slapped with fines as high as $13.4 billion for tying classified advertisements service Marketplace with its Facebook social network. The ruling, which is expected in the coming weeks, would come over 18 months since the European Commission accused Meta of “abusive practices” that enabled it to distort competition in the online classified ads market.

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