VC Daily Digest - 14/11/2023

📮Today’s Major News

• VC firm thinks that AI automation could resurrect startup valuation

• After six quarters of falling venture interest, crypto investors see recent price gains

• Featured Article: Hidden Trap Of Convertible Note and Liquidation Preference Multiples

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💰 Massive Fundings Updates

Etaily, three year old ecommerce startup based in Philippines which act as “one stop solution” for consumer brands that want to enter Southeast Asia, it has raised $17.8 million in Series A funding. The round was led by SKS Capital, a Chinese and Taiwanese private equity firm, and Singapore’s Pavilion Capital. SBI ICCP, a joint venture between ICCP Venture Partners in the Philippines and Japan’s SBI Holdings (formerly SoftBank Investments) and Kaya Founders. More Here

Shekel Mobility, a B2B marketplace for auto dealers in Africa secured over $7 million in funding, comprising $3.2 million in equity and over $4 million in debt led by Ventures Platform and MaC VC. More Here

Davinci Micro Fulfillment, a two-year-old New York startup that helps brands optimize their sales channels and inventory, raised a $3 million seed round co-led by Las Olas Venture Capital, Venture 53 Fund and Accelerator, and Silicon Road Ventures. The company has raised a total of $10 million. More Here

Fnality International, a four-year-old London startup that is developing a blockchain-based wholesale payment system, raised a $95.2 million round. Goldman Sachs and BNP Paribas were the co-leads, while the Depository Trust & Clearing Corp., Euroclear, Nomura Holdings, and Wisdom Tree also chipped in. More Here

VectorY Therapeutics, a Dutch biotech looking to advance its preclinical lead program in amyotrophic lateral sclerosis, has raised $138 million in Series A funding co-led by EQT Life Sciences and Forbion Growth Opportunities Fund. More Here

SpinDrive, an eight-year-old Finnish startup that provides active magnetic bearings for original equipment manufacturers, raised a $4.1 million Series A round. Rhapsody Venture Partners led the transaction, with previous investors Innovestor and Born2Grow also participating. More Here

Raus, a two-year-old Berlin startup that specializes in renting cabins located in rustic settings near German cities, raised a $9.1 million round led by Roch Ventures, with additional participation from Rockaway Ventures and Dupuis Investment. The company has raised a total of $15+ million. More Here

Galactic Holdings, a three-year-old Mexico City startup cryptocurrency platform that facilitates the conversion of fiat currencies, raised a $6.25 million Series A round. Galaxy Interactive and DragonFly were the co-leads, with SHK also participating. More Here

Nema Health, a startup based in New Haven, Ct., whose virtual platform provides support to trauma victims, raised a $4.1 million seed round co-led by Optum Ventures and .406 Ventures, with GreyMatter Capital also pitching in. More Here

Singaporean VC firm Foresight Ventures acquires an 80% majority stake in crypto media company The Block for $60 million, valuing the outlet at $70 million. The deal frees The Block from financial ties to the FTX scandal, where former CEO Mike McCaffrey took loans from FTX founder Sam Bankman-Fried. Foresight plans to expand The Block's presence in the U.S. and Asia, seeing opportunities for growth in the crypto media sector amid market challenges. More Here

Tabnine, AI powered platform to generate the code it raised $25 million in a Series B funding round led by Telstra Ventures with participation from Atlassian Ventures, Elaia, Headline, Hetz Ventures, Khosla Ventures and TPY Capital. More Here

EduFi, a fintech startup that enables financially strapped students to secure loans for their education, has raised $6.1 million in a pre-seed round led by Zayn VC with participation from Palm Drive Capital, Deem Ventures, Q Business and angel investors. More Here

Diesta, a one-year-old London startup whose platform is designed to automate the reconciliation and distribution of insurance payments, raised a $2 million seed round from Restive, SixThirty, Antler, SystemaNova, and Westerly Ventures. More Here

EyeTell, a five-month-old startup by YouTube cofounder Chad Hurley that uses AI to generate short-form video scripts and content, has raised an unknown amount of seed funding led by Kevin Hartz’s A-Star Capital with an investment from Ron Conway’s SV Angel. More Here

🚀 Venture Capital Highlights

VC firm thinks that AI automation could resurrect startup valuations: Battery Ventures predicts that AI-powered automation will enable startups to reduce operating expenses by 20%, particularly in sales, marketing, R&D, and G&A, leading to a potential 24% decrease in overall operating expenses. This cost efficiency could help startups maintain growth while burning less cash, making them more appealing to investors and potentially increasing their valuations. The goal is to create a future where each dollar of revenue generated by startups is worth more, enhancing their venture-backability and overall value. More Here

Interplay, a New York-based venture capital firm, closed on its third fund with $45 million in capital commitments. The firm, focused on investments at the Series A stage, deploys capital into software, including B2B marketplace and vertical software. More Here

Melinda French Gates looking to change the face of power in VC: Melinda French Gates, founder of Pivotal Ventures, advocates for increased venture capital funding for women-led companies, citing the underrepresentation of women, particularly Black women, in receiving such investments. Pivotal Ventures invests in women-led funds and early-stage companies, aiming to transform the venture capital industry's approach and encourage market-based solutions. More Here

📬 Featured: Today’s Featured Article

Hidden Trap Of Convertible Note and Liquidation Preference Multiples

If you are raising the pre-seed, seed or bridge round - a convertible note could be the best option for you! But most of the founders not aware of this trap in the convertible note and even it’s in the liquidation preference multiple which led to loosing lots of equity later time.

So what’s that trap? & how can founder avoid this. Let’s deep dive into it. Read More Here 👇

💡 Startups Snap: The Latest Buzz

Former President Donald Trump's Truth Social, launched in early 2022, reported $3.7 million in net sales but incurred a significant loss of $73 million, according to a financial disclosure by Trump Media & Technology Group's SPAC merger partner, Digital World Acquisition Corp. The filing revealed ongoing financial challenges, stating substantial doubt about TMTG's ability to continue as a going concern. More Here

Rising Deep Tech Investments in Europe Face 'Deepwashing' Challenge: Deep tech startups in Europe are experiencing increased attention and funding, with a 60% rise in the last 24 months, but there's a concern about "deepwashing." Some climate-focused startups are falsely positioning themselves as deep tech, diverting funding from truly transformative technologies. Investors are urged to adopt science-based metrics, like the "Climate Performance Potential," to identify genuine deep tech propositions and ensure investments contribute meaningfully to climate solutions. More Here

After six quarters of falling venture interest, crypto investors see recent price gains: After a sluggish period, the crypto venture capital scene is showing signs of revival with $1.8 billion invested in Q3 across 309 deals, signaling renewed interest in real-world use cases and infrastructure. While a recent downturn prompted a more thoughtful approach, industry insiders anticipate increased deal activity and optimism in the coming quarters, driven by the maturation of the crypto space and potential recovery in major crypto asset values. More Here

Amazon cuts more than 180 jobs in gaming division: Amazon Games will cut over 180 jobs, closing down parts of its business focused on streaming and third-party games. The restructuring aims to prioritize developing Amazon's own titles, including upcoming launches such as "Throne and Liberty" and "Blue Protocol." CEO Andy Jassy's cost-cutting measures have included significant layoffs, with the company reporting positive results in its recent third-quarter earnings. More Here

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🤖 The Latest In Emerging Tech: AI

OpenAI CEO Sam Altman plans to secure additional financial backing from Microsoft, its major investor, to support the development of artificial general intelligence (AGI). Altman highlighted the successful partnership with Microsoft and the need for substantial funding to cover the costs of building sophisticated AI models. OpenAI aims to monetize ChatGPT through a business model that includes custom versions, a GPT Store, and revenue-sharing with creators, while also working on the next-generation GPT-5 model. More Here

Biden and Xi will sign a deal to keep AI out of control systems for nuclear weapons: US President Joe Biden and Chinese President Xi Jinping are expected to sign a deal limiting the use of artificial intelligence (AI) in nuclear weapon control systems during their meeting at the Asia-Pacific Economic Cooperation summit. The agreement aims to restrict AI in autonomous weaponry, such as drones, and the systems for nuclear warhead control and deployment, amid rising tensions between the two nations. More Here

🗞️ Today’s Must Read On: Startup, Technology & VC

• The Software Industry's Productivity Boom: Analyzing Revenue per Employee Trends Read More (Startups & Tech)

• Fundraising prowess is no longer a startup success metric Read More (startups & venture capital)

• What do VCs look for? 10X return or 10X fund size outcome? Read More (Startups & Venture Capital)

• Idea generation by Sam Altman Read More (Startups)

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✍️Written By Sahil R | Venture Crew Team

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