VC Daily Digest - 01/09/2023

👋 Welcome to Today’s VC Daily Digest!

Your Monday to Saturday Daily Dose of Venture Insights, Funding Updates and Startup Stories Delivered Straight to Your Inbox. Stay Informed, Stay Inspired and Stay Ahead In the World of Venture Capital !

📢 Sponsored By: Poised

Don't settle for mediocre meetings. With Poised’ AI support, you’ll have your most efficient meetings yet.

• 📝 AI suggestions to help you reach your goal for each meeting

• 🔮 A crystal ball into the questions you may be asked during your meeting so you can prepare in advance

• ✨ Auto-magically shows your notes during your meeting and crosses off each point as your speak, like karaoke for your meetings.

Let Poised work its magic in your next call. Get Poised for free.

🤝 Interested In Sponsoring This Newsletter?: Apply to Partner With Us! Click To get In Touch

📢 Top Venture Capital News

Y Combinator removes Indian startup from batch over ‘irregularities’: In an unusual move, renowned venture firm Y Combinator has severed ties with Indian startup Medobed, citing "irregularities" that violated the firm's ethics policy. Medobed, a promising medicine delivery service, was initially part of YC's S23 batch, but has now been advised against by YC to prospective investors. The startup's claims of "$1 million of monthly GMV and EBITDA profitability" and inconsistencies in the founder's educational history raised suspicions. This is a rare occurrence for Y Combinator, which meticulously selects startups from tens of thousands of applications, with India being a key market in recent years. More Here

Photon Ventures has launched a €60 million VC fund: Photon Ventures has launched a €60 million VC fund, primarily targeting early-stage photonic chip startups and scale-ups. The fund, backed by lead investor PhotonDelta and several private investors, aims to raise between €100 to €150 million by 2024. PhotonVentures' investment strategy capitalizes on the Dutch PhotonDelta ecosystem to accelerate European startups and scale-ups. "The integrated photonics industry is growing quickly but is short of investors with the knowledge and funding to back the sector’s ambitions," says PhotonDelta Chairman René Penning de Vries. PhotonVentures plans to initially invest in 15 European deep-tech companies with potential to become international leaders in their sectors. More Here

Why VCs are suddenly flocking to mining deals: Mining is a quintessential legacy industry, controlled by a small cohort of entrenched, highly emitting companies like Rio Tinto and BHP. Fledgling companies have struggled to overcome the high costs required to disrupt traditional extractive technologies. It's no wonder that venture investors have historically steered clear of the industry. But, enticed by new innovations, VCs are recognizing the widely acknowledged need for more critical minerals to power the energy transition, from the lithium in electric vehicle batteries to the copper needed to upgrade the electric grid. More Here

D.C.'s Recast Capital, with backing from Melinda Gates, commits $3.6 million to support women- and nonbinary-led VC firms: Recast Capital, a female-led venture fund that supports budding venture capitalists, has received at least $3.6 million from Melinda Gates' Pivotal Ventures to help women and nonbinary fund managers raise money of their own. Recast, which has dual offices in D.C. and San Francisco, recently selected a cohort of 36 women and nonbinary fund leaders to participate in its 12-week accelerator program and it intends to use the funds from Pivotal Ventures to cover up to $100,000 in expenses for each participant. More Here

How to pitch me: 15 investors talk about what they’re looking for in August 2023: As summer 2023 wraps up, early-stage founders are encouraged to ramp up their outreach efforts, especially as August is one of the slowest months in venture capital. Investors are seeking uniquely qualified founders with diverse experiences, particularly in the healthcare and techbio sectors. They value deep domain expertise, especially in the AI sector, and are open to various methods of approach, including cold emails and warm introductions. Founders are advised to ask pertinent questions about investors' expectations and strategies for growth and profitability, while avoiding outdated pitch tactics and focusing on presenting a compelling narrative of their company. More Here

Satgana appoints Anil Maguru, as one of the youngest partner to back climate-tech startups in Europe, Africa: Satgana, a Europe-based climate-tech VC, has promoted Anil Maguru, previously an investment director, to partner. At 28, Maguru is one of the youngest VC partners in Europe and among the less than 10% of Black fund managers globally. Satgana, which focuses on climate startups in Europe and Africa, plans to allocate up to 40% of its €10 million fund to "planet-positive" startups in Africa. Maguru, who joined Satgana at its inception, is set to have a strong presence in Africa, as the firm plans two larger funds for the continent and Europe. More Here

📢 Top Startups News

Will the power of data in the AI era leave startups at a disadvantage?: AI is making waves in the tech world, becoming the latest focus for growth and innovation. Despite the uncertainty of how these AI-related tools will be monetized, there's a shared optimism about its potential impact. In fact, in the first half of 2023 alone, venture capitalists invested over $40 billion into AI startups, nearly a quarter of the $173.9 billion total investments. As we navigate this new frontier, it's crucial to consider not just the opportunities, but also who stands to profit from this technological revolution. More Here

📢 Featured: Today’s Featured Tweet

Why Your Startup Idea Isn’t Big Enough for Some VCs?

VC functions with a power law, the majority of a fund’s returns come from a small percentage of investments.

Because of this, venture investors need to know if a single investment can return the entire fund. Let's understand this. 👇

📢 Top AI News

China’s Baidu rolls out ChatGPT rival ERNIE to public: In a significant move towards regulating AI technology, China has approved its first batch of large language model (LLM)-empowered services for public use, including applications from tech giants like Baidu and ByteDance. This comes as part of China's recent shift towards tighter control over its tech industry, with a focus on overseeing the vast data influencing public opinion. The approval of these LLM chatbots could potentially trigger a period of rapid growth and mass adoption in the country. Interestingly, Baidu's Ernie Bot saw a surge in popularity following the announcement, even giving the company's share price a modest boost. More Here

AI Start-Up Investments Bucking Venture Capital Decline Trends: AI startups in the US are experiencing a surge in investments, capturing over a quarter of total funding in 2023, a significant leap from the average 12% between 2018 and 2022, according to Crunchbase. Despite a 50% decline in North American VC funding in Q1 2023, the AI sector has bucked the trend, with AI-related funding surpassing $23B. This shift underscores the growing recognition across industries that AI must be a cornerstone in their technology stacks. As AI continues to mature rapidly, it's clear that it's not just a buzzword, but a critical component in the evolution of technology. More Here

AI-powered BeFake is a real app, not a BeReal parody…and it has $3M in funding: Alias Technologies, the creators behind BeFake, a unique social networking app, have successfully raised $3 million in seed funding. The app, which combines AI technology with the concept of real-time photo sharing, allows users to customize their photos and express their authentic creativity. The founders, Kristen Garcia Dumont and Tracy Lane, both former executives at gaming giant Machine Zone, are leveraging their experience with AI and player matching to create a social network that fosters connection and creativity. Despite the app's name, BeFake aims to reject the inauthenticity of current social media trends and instead encourages users to create and share their own AI-augmented visuals. More Here

Join 2500+ Avid Readers For Daily Venture Insights, Funding Updates And Startup Stories In Your Inbox. 🚀!

📢 Top Startup’s Fundraising News

Rent Butter startup wants to help landlords rethink risk when screening potential tenants raised $3M: The traditional reliance on credit scores for evaluating rental applications is being challenged by proptech startup, Rent Butter. Co-founded by Tom Raleigh and Chris Rankin, the company offers an innovative screening tool that provides a more equitable assessment of rental applicants. By connecting to an applicant's bank account, Rent Butter provides insights into banking behavior, rent payment history, and credit behavior, offering a more comprehensive picture of an applicant's financial health. More Here

Veterinary software company TeleVet rebrands as Otto amid $43M in fresh funding: Veterinary software company Otto, formerly known as TeleVet, is revolutionizing pet care by offering an integrated system for clinics to manage operations, from scheduling to payments. With a surge in pet population and a decline in veterinary clinics, Otto's CEO, Zeynep Young, believes technology is the key to solving these challenges. Otto's approach focuses on partnering with clinics to streamline their processes, reducing staff burnout and improving patient care. The company's success is evident with a 600% growth in its customer base, and it's set to break even by the end of 2025, backed by $43 million in new Series B capital. More Here

Floworks is building an AI assistant to change how workers interact with software raised $1.5M: Floworks, an AI assistant designed to streamline mundane enterprise tasks, is making strides in the tech world. Co-founded by Sudipta Biswas and Sarthak Shrivastava, the platform interacts with popular software products like Gmail, Google Calendar, and Salesforce, allowing users to instruct these applications in plain language. Currently focusing on sales use cases, Floworks aims to expand its integrations and support workers across various sectors. With a working beta and an ARR close to $250,000, the company is set to redefine how we interact with software, championing diversity and interoperability as their key differentiators. More Here

OpenAI-backed language learning app Speak raises $16M to expand to the US: Speak, an AI-backed English language learning platform, has raised $16 million in a Series B-2 funding round, bringing its total raised to $63 million. With support from OpenAI's Startup Fund and co-founders of Dropbox, Speak plans to expand its reach globally, including a launch in the U.S. by year's end. The platform, which uses AI to provide interactive speaking experiences and personalized feedback, has already made a significant impact in South Korea, helping nearly 6% of the population learn English. As we continue to leverage AI technology for enhanced learning capabilities, we remain committed to our mission of providing low-cost language education to learners worldwide. More Here

Martian Lawyers Club raises $2.2M for AI-based game personalization tech: The Martian Lawyers Club (MLC) is revolutionizing game personalization with generative AI, focusing on the core systems rather than content. Co-founded by Kamen Brestnichki and Levi Fussell, MLC aims to create games that feel like a conversation, with player input and game response not pre-defined by the developer. They've raised a $2.2 million pre-seed round and are developing an SDK for a sandbox experience, allowing developers to design without creating every game interaction from scratch. MLC's first project is a collectible card game, testing the potential of their innovative technology. More Here

🗞️ Interesting Weekday Reading On: Startups, Technology & VC

• 📮 Venture Capital Fund Modelling III: Masterclass Read More

• 📰 Why it's Better To Raise Less Capital In The First Round? Read More

• 📪Why Do VC Firms Want an Option Pool Before the VC Round? Read More

• 🗃️ YC Startup Index Gives 176% Return Read Here

• 📜 How VCs Evaluate & Make High-Quality Investment Decisions? Read More

• 📑 Decoding Sequoia Capital: How Do They Dominate the VC Landscape? Read Here

• 📑 How To Convince Investors That Your Startup Can Give Maximum Return To Them? Read Here

🦄 Weekly Updates: Inside The Founders & Investors Community

👉 Join the community of Verified 1500+ Investors & Founders Backed By Y-Combinators, a16z and others ? Join Here

What did you think of today's newsletter?

• ⭐️ ⭐️ ⭐️ ⭐️ ⭐️ Amazing piece

• ⭐️ ⭐️ ⭐️ ⭐️ This was really good

• ⭐️ ⭐️ ⭐️ It was okay

• ⭐️ ⭐️ Not your best

• ⭐️ Waste of time

✍️Written By The Venture Crew Team

🤗Join Community 🗈 Want to Feature 📢 Sponsor Us 👉 Follow Us