VC Daily Digest - 16/10/2023

📮Today’s Major News

• Microsoft has closed its $69 billion acquisition of video game publisher Activision Blizzard

• VCs Investing In Defense Tech

• Meta confesses it's using what you post to train its AI

• Featured Article: Why Founders Are Afraid to Talk About MOAT?

 🤗 Access Startups 🤝 Partnership 👉 Follow Us  

🚀 Venture Capital Highlights

More funding for defense tech: Defense tech is no longer a taboo for VCs or for top tech talent. It is too early to tell how long the Israel-Hamas war that started after last weekend’s atrocities against civilians may last, but it is likely to make democracies’ need for defense tech even clearer. Capital has been flowing steadily into defense tech companies for a while. Saronic, a Texas-based defense startup building autonomous ships and headed by a former Navy Seal, raised $55 million. More Here

China And Israel Venture Funding Rebound In Q3: While venture funding in Asia is still off even last year’s pace, it has slowly crept up from earlier in the year. In the most recent third quarter, two of the countries that helped push funding higher are the pair perhaps facing the greatest geopolitical tensions in the region — China and Israel — per Crunchbase data. Total funding in Asia fell 8% from Q3 last year to $22.3 billion — however, that’s an 8% increase from the $20.6 billion in funding in the second quarter of 2023. More Here

VCs explained how startups can capture and defend marketshare in the AI era: Discussions on AI in startup culture persist, focusing on monetization challenges for AI-focused startups and concerns about high operational costs. Despite advancements, running complex AI models remains expensive, reigniting conversations about sustainability and profitability in the field. More Here

Venture Capital Founder: AI Bubble Will ‘Pop’ but Tech Will Persist: According to Yanev Suissa, founder of SineWave Ventures, the AI bubble might burst in the next year. He believes AI is the next tech revolution but anticipates a significant industry shakeup, possibly triggered by inappropriate content generated by AI. Suissa compares this potential burst to the fate of blockchain, suggesting AI could become a tool for businesses rather than a standalone entity. Despite this, he emphasizes that AI's value remains intact, even amid the anticipated industry upheaval. More Here

Stellar Ventures and Cypress Growth Capital Commit to Fueling the Future of Robotics Software: "The Unstructured Robotics Company," proudly announces a major milestone in its mission to bring robot arms out of factories and into our everyday lives. The company has just raised $2 million in a pre-seed investment round led by Stellar Ventures and Cypress Growth Capital, positioning itself as the dominant force in redefining the robotics industry through its innovative software platforms. The investment augments PickNik's existing $5M in non-dilutive SBIR funding contracts with NASA JSC, NASA Ames, and Space Force. More Here

💰 Massive Fundings Updates

Microsoft has closed its $69 billion acquisition of video game publisher Activision Blizzard , according to a regulatory filing by the company Friday. It’s Microsoft’s largest deal in its 48-year history and comes after the company quelled concerns about competition from U.K. and European regulators and gained a favorable ruling from a U.S. district judge. More Here

Ripcord, the Steve Wozniak-backed file scanning startup, is raising $20-25M that would value the company at $110 million pre-money. Alphabet’s GV, Lux Capital and MUFG are in talks to participate in the round. GV and Lux previously invested in Ripcord; MUFG, a Japanese bank chain, appears to be a new backer.

EV data startup Volteras raised $2.9M valued at $12M, it aims to be the connective tissue between electric vehicles and everything they might touch — from chargers and home batteries to energy retailers and mapping apps. The startup’s investors include Exor (a major stakeholder in Ferrari and Stellantis — convenient!), early-stage VC Long Journey Ventures and Crunchie awardee Scott Banister.

Stash, an investing app, is taking advantage of a tool that’s been around for some time – a convertible note. It just raised $40 million through one of these mechanisms, led by early and existing backer T. Rowe Price.

Bon Vivant, France-based precision fermentation startup, which is using biotech techniques to reprogram yeast microorganisms to produce animal-free milk proteins raised €15 million (~$15.9 million) seed round. This round is co-led by Sofinnova Partners and Sparkfood, with Captech Santé also participating. Other investors in Bon Vivant include Alliance for Impact, High Flyers Capital, Kima Ventures, Founders Future and Picus Capital. More Here

Didi, a smart electric car development raised up to $149 million in funding from two investors affiliated with the municipal government of Guangzhou, a southern Chinese metropolis: GAC Group’s wholly owned subsidiary GAC Capital and Guangzhou Development District Investment Group. More Here

📬 Featured: Today’s Featured Article

Why Founders Are Afraid to Talk About MOAT?

“MOAT” - seems like a new word; in recent times, founders are afraid to talk about the MOAT of their startup.

They don’t want to recall as most startups or so-called AI startups don’t have a MOAT except those 2-3, you know who I am talking about. Most of the founders were afraid because they don’t understand the real meaning of MOAT!!

What’s the MOAT for a startup? We have shared this in our recent newsletter, check it out 👇

🤖 The Latest In Emerging Tech: AI

Generative AI is creeping into EV battery development: Aionics is using AI to tackle the immense challenge of finding the ideal electrolyte material for batteries. With ten billion commercially available molecules and countless combinations, this task is incredibly complex. By employing artificial intelligence, Aionics aims to speed up the discovery process, enabling the creation of faster-charging, more energy-dense batteries for applications such as electric vehicles and airplanes. Their innovative approach promises to revolutionize battery technology by delivering superior and more efficient energy storage solutions. More Here

AMD to acquire AI software startup as it seeks to catch up with Nvidia: AMD will acquire Nod.AI, an open-source artificial intelligence software startup, AMD announced Tuesday. Nod.AI, or Nod Labs, builds open-source technologies for "future AI systems" and mainly specializes in reinforcement learning, an AI method that operates via trial and error. More Here

Meta confesses it's using what you post to train its AI: According to Nick Clegg, Meta’s president of global affairs, the tech giant is using both text and photos from public posts from people's Instagram and Facebook to train Meta AI. He says the posts are selected based on their popularity and engagement and that they are stripped of any personal details before being fed to the AI system. He also says Meta has built safeguards into Meta AI to prevent misuse and abuse, such as filtering out harmful or offensive content. More Here

Join 3000+ Avid Readers For Daily Morning Venture Insights, Funding Updates And Startup Stories In Your Inbox. 🚀!

💡 Startups Snap: The Latest Buzz

Palestine’s growing tech industry has been literally blown apart by the war between Israel and Hamas: Gaza, despite being one of the most economically challenged regions in the world, has ironically always been a tech hub — not only for Palestine and Palestinians, but for the world: International companies have, for many years, sought out a presence there to collaborate both with talented tech freelancers, and the startups which gradually emerged from the region. More Here

Israel’s startup ecosystem: Down but not out: In the aftermath of Hamas' deadly attacks on Israelis, Israel's robust technology sector stands out as a vital component of its economy. In 2022, technology contributed over 18% to the country's GDP, employing around 1.3 million people, constituting 14% of the population. With 9,000 active startups, Israel boasts the third-highest number globally after the Bay Area and NYC. Over the last five years, these startups have attracted $95 billion in venture capital, showcasing the nation's innovative prowess and economic resilience. More Here

X Communities start to look more like Facebook Groups with new member vetting feature: X is adopting a feature that’s currently used across many Facebook Groups to vet members before joining: required questions. The company formerly known as Twitter announced today that admins of private Communities on X can now require users to answer a question when they request to join, along with agreeing to the group’s rules. More Here

🤝 Advertise in The Venture Crew’s Newsletters

Want to promote your startup to my community of 14,000+ entrepreneurs and investors? Reply “advertise” and I’ll share my media kit.

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

• Centaurs & Cyborgs : The Jagged Frontier of AI Read More (AI)

• VC Don't Care About LTV/CAC Ratio ? Read More (Startups)

• How To Launch A New Product Read More (Venture Capital & Startups)

• Life is Short By Paul Graham Read More (Startups)

🚀 Join Our 100+ VC Enthusiast Community: VC Crafters

Building, Learning, Networking, & Landing on VC roles is challenging without the right direction. We're a community for learning, sharing insights, and getting help from others who know the field best.

✍️Written By Sahil R | Venture Crew Team

 🤗 Access Startups 🤝 Partnership 👉 Follow Us