VC Daily Digest - 19/08/2023

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📢 Top Venture Capital News

Why generalist investors will always win: In the rapidly evolving venture world, the rise of vertical-specific investors is undeniable. Firms like Andreessen Horowitz and Paradigm have made a name for themselves with their targeted strategies, often topping founders' fundraising lists. However, the enduring relevance of generalist investing cannot be overlooked. Despite the appeal of specialization, the unpredictable nature of revolutionary tech companies and the need for transcendent founder talent in all sectors reinforces the importance of a broad approach. While vertical-specific investors have their place, the ability to spot outliers across the entire opportunity set remains a valuable skill. Ultimately, the venture world needs both specialists and generalists to thrive. More Here

Peak XV ramps up dealmaking following Sequoia split: Despite a challenging funding climate, Peak XV Partners has been making strides since its split from Sequoia. With over 10 term sheets signed and three exits in just 10 weeks, the venture firm is demonstrating its commitment to the India and Southeast Asia region. Among the deals closed is a significant investment in Neo Group, an asset management and financial advisory firm. More Here

San Francisco 49ers family office targets $50M for first VC fund: The owners of the NFL's San Francisco 49ers are seeking to raise $50 million for a debut VC fund, according to a regulatory filing. Managing partner Jed York, CEO of the 49ers franchise, has been quietly investing in startups since 2014. His family office's VC firm, Aurum Partners, was an early backer of shoemaker Allbirds as well as fertility startup Carrot and barbershop software provider Squire. More Here

Party's over for European unicorns as valuation dips: The aggregate value of European unicorns has declined for the first time in a decade as higher financing costs and public market volatility puts pressure on valuations. In H1, the combined post-money valuation of European companies worth over €1 billion stood at €442.2 billion (about $480 billion), according to PitchBook's Q2 2023 European VC Valuations Report, down from €446.3 at the end of 2022. More Here

📢 Top Startups News

As net retention plummets, AI could be the savior software companies need: Recent data reveals a significant drop in net retention at software companies, contributing to slowed revenue growth in the tech sector. This decline, from 120% to 111%, represents a startling 45% fall over two quarters, suggesting that software companies are struggling to balance cost reduction with maintaining growth. As net retention is a key aspect of the SaaS economic model, this trend could make it more challenging for these companies to minimize losses while continuing to expand. More Here

For climate tech startups, the IRA is starting to pay off: The Inflation Reduction Act, signed by President Biden in 2022, has sparked a surge in clean energy initiatives and investment. Startups and established companies alike are leveraging the $400 billion in federal funding to drive innovation in EVs, renewable energy, and climate tech. As we strive for a 40% reduction in greenhouse gas emissions by 2030, it's inspiring to see the private sector matching and even surpassing government funding, signaling a robust and growing market for clean energy technologies. More Here

5 Ways Startups Can Increase Their Visibility: In the wake of the pandemic, it's crucial for startups to seize opportunities for visibility and momentum. This can be achieved through attending and speaking at events, competing in startup competitions, and fostering new customer or partner relationships. Leveraging these platforms not only increases visibility but also strengthens business relationships and establishes thought leadership, ultimately driving growth and success. More Here

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📢 Top AI Startup’s News

AI2 drops biggest open dataset yet for training language models: In a significant move towards transparency in AI, the Allen Institute for AI (AI2) has launched Dolma, a large, open text dataset for their upcoming open language model, OLMo. Unlike the guarded data secrets of models like GPT-4 and Claude, Dolma's sources and processes are publicly documented, aiming to foster scrutiny and improvement. This dataset, the largest of its kind with 3 billion tokens, is available for free use and modification by the AI research community, subject to certain ethical usage conditions. Access Dolma via Hugging Face and join us in this open AI revolution. More Here

AI-Created Art Isn’t Copyrightable, Judge Says In Ruling That Could Give Hollywood Studios Pause: In a landmark ruling, a federal judge upheld that AI-generated works are not eligible for copyright protection, reinforcing the stance that copyright law only extends to human creations. The decision came in response to Stephen Thaler, CEO of Imagination Engines, who argued that his AI system, the Creativity Machine, should be recognized as the sole creator of an artwork. The ruling emphasized that human creativity remains central to copyrightability, even when channeled through new technologies. More Here

Sakana AI, the new startup from a Transformer paper coauthor: In a significant shift in the generative AI landscape, Llion Jones, co-author of the influential 2017 research paper “Attention Is All You Need,” and David Ha, former Google Brain researcher, have co-founded Sakana AI. The Tokyo-based startup is pioneering a novel approach to AI, drawing inspiration from nature's collective intelligence systems like schools of fish and beehives. Their vision is to create flexible, reactive, and economically efficient AI models that can generate text, images, code, and multimedia content. This approach challenges the current trend of building extensive AI systems, offering a potential solution to issues of cost and inflexibility in contemporary AI models. More Here

📢 Top Startup’s Fundraising News

Viome, a microbiome startup, raises $86.5M, inks distribution deal with CVS: Viome, a startup specializing in assessing customers' microbiomes and providing personalized health guidance, has raised $86.5 million in a Series C funding round. The company's technology, developed from research at the Los Alamos National Laboratory, has been used to analyze over 600,000 samples from 350,000 consumers worldwide. With this new funding, Viome plans to expand its existing business and break into new areas including dental health and retail partnerships. Despite some controversy in the field, the company continues to leverage AI and machine learning technologies to interpret biological data and provide personalized health recommendations. More Here

Inworld AI Secures $30 Million, Pushing Valuation To $500 Million: While startup funding is tight in many industries, artificial intelligence (AI) is an exception. Inworld AI recently secured $30 million from Lightspeed Venture Partners, pushing its valuation to $500 million. In addition to Lightspeed, the round also includes investments from Stanford University, Samsung Next, Microsoft Corp.'s M12 fund, First Spark Ventures and LG Technology Ventures. More Here

Teamshares Raises $245 Million in Venture Capital to Scale Small Business Employee Ownership: Teamshares Inc., the market leader for small business employee ownership, announced today it raised a cumulative $245M in previously unannounced equity from leading venture capital firms, including a recent $124 million Series D financing. The Series D round was led by Frank Rotman at QED Investors, with significant participation from existing investors Inspired Capital, Khosla Ventures, Slow Ventures, Spark Capital, and Union Square Ventures. More Here

High-profile startup Wugen, with more than $200M in VC funding, begins clinical trial on cancer-fighting drug: Wugen, the St. Louis-based, clinical-stage biotechnology startup that has raised more than $200 million in venture funding, has dosed the first patient in a clinical trial for one of its cancer-fighting drug candidates. The company said this week it has started the first phase of human trials for its drug WU-NK-101 to study its safety and tolerability for patients with relapsed or refractory acute myelogenous leukemia (AML). More Here

Venteur Secures $7.6 Million Seed Round Led by GSR Ventures to Revolutionize Employer-Sponsored Health Insurance: Digital health startup Venteur, known for empowering employees with personalized health insurance options, has successfully closed a seed funding round at $7.6 million. This funding, led by GSR Ventures and featuring contributions from a range of venture partners, will aid Venteur in its mission to revolutionize healthcare decision-making control. By leveraging AI and 30 years of medical claims data, Venteur's platform offers a personalized, concierge-style ICHRA experience that has been lauded for its cost-saving benefits and potential to transform how employers provide health insurance. Here's to a future where the healthcare system serves consumers, not intermediaries. More Here

Metabase Q Announces Series A Funding Investment $3M to Make Cybersecurity Accessible: Metabase Q, a leading cybersecurity solution provider, has secured $3 million in Series A funding led by SYN Ventures, marking a significant milestone in our journey to redefine cybersecurity management. Our platform, which has seen an impressive 403% quarter-over-quarter growth in new bookings, streamlines cybersecurity processes with features from swift deployment to AI-driven insights. As we continue to serve the Latin American market, we're also expanding our reach globally, driven by our mission to make cybersecurity accessible, understandable, and manageable for all businesses. More Here

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