VC Daily Digest - 21/08/2023

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📢 Top Venture Capital News

VCs should give up on the winner-takes-all approach to investing: Venture capital is often seen as a game of home runs, but is capturing the majority of market share always necessary for a startup to succeed? Thumbtack's co-founder and CEO, Marco Zappacosta, offers a different perspective. Some markets may not be large enough to support multiple winners, most can. So, perhaps the venture capital game isn't always about hitting home runs, but rather about recognizing the potential in sectors where even a small market share can lead to significant success. More Here

Are Small, Early-Stage Venture Capital Funds The Next Big Thing?: Navigating the venture capital landscape is particularly challenging for emerging managers in the current market, as limited partner (LP) dollars are increasingly concentrated in established "brand name" funds. Despite this trend, Michael Cardamone, CEO and Managing Partner at Forum Ventures, argues that small, early-stage funds offer significant potential for outsized returns, particularly in a post-recession environment. However, overcoming LP hesitations and structural barriers requires a shift in mindset, a robust underwriting process for smaller funds, and a focus on sourcing and making good investment decisions. More Here

Venture capital group secures $76M for mobility fund from Dan Gilbert, Stellantis, others: Assembly Ventures, a venture capital group founded by Detroit and Berlin investors, has successfully raised $76 million in its inaugural fund, aimed at investing in mobility sector innovations. The group, with a total of $94 million assets under management, is focused on early-stage investments in the United States and Europe, particularly in battery technology, clean energy, climate tech, supply chain optimization, and automotive production. More Here

How Index Ventures jumped to the front of the AI GPU line?: The global investor Index Ventures has partnered with Oracle to help its portfolio companies overcome the GPU shortage, a major hurdle for AI startups. This unique arrangement allows early-stage companies to access Nvidia's H100 and A100 chips, enabling them to focus on their core business from day one. The goal is to help these companies eventually secure their own GPU clusters, leveling the playing field in a market dominated by large players. More Here

📢 Top Startups News

IP for startups: When (not) to patent your inventions: Navigating the world of patents can be complex, but it's crucial for startups to understand their importance in securing a competitive edge. As Michele Moreland, a leading figure in IP strategy, suggests, understanding the difference between provisional and full patents, the costs involved, and the strategic role patents play in your business is key. With the shift from a "first to invent" to a "first to file" system in the U.S., the race is on to secure your intellectual property rights. More Here

A tale of two payments companies: Uruguayan company dLocal saw a significant stock surge following the appointment of a new co-CEO and impressive Q2 financials. Meanwhile, Dutch payments processor Adyen experienced a drop in shares after reporting lower-than-expected sales and profit for the first half of the year. In other news, Checkout.com has ceased services for Binance, PayPal announced a new CEO, and Mastercard is investing in MTN Group's fintech division. More Here

NFT Platform Recur Shuts Down Despite $50M Raise and Big Name Partnerships: NFT startup Recur has declared the winding down of its Web3 platform, attributing its decision to the challenges of the crypto winter, despite hosting major brand IPs like Hello Kitty and Nickelodeon. Over the coming months, the core features of Recur's platform, including NFT withdrawals, stablecoin cash-outs, and collectible trading on their marketplaces, will gradually phase out. The company acknowledged these difficulties were unexpected and mentioned shifts in the business landscape. More Here

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📢 Top AI Startup’s News

Consulting giant McKinsey unveils its own generative AI tool for employees: Lilli: McKinsey & Company has launched Lilli, a generative AI tool designed to streamline internal processes by providing insights, data, and expert recommendations. Named after the firm's first female professional hire, Lilli has already proven to reduce research and planning time from weeks to hours, answering over 50,000 questions in just two weeks. The tool, which leverages large language models like OpenAI, is expected to be used throughout all stages of client work, from initial research to project implementation. More Here

How businesses can measure the success of AI applications: Artificial Intelligence, especially generative AI, is transforming how we work and interact with technology. However, measuring the success of AI applications is complex due to their non-deterministic nature, reliance on data quality, and the influence of human bias. To navigate this, we need new metrics capturing probabilistic outcomes, rigorous validation frameworks, and user-centric evaluations. More Here

Why AI Won’t Be Replacing Teachers Anytime Soon: Artificial Intelligence (AI) is often viewed with apprehension in the realm of higher education, but it's crucial to shift our focus from fear to potential benefits. AI can offer personalized learning experiences, instant feedback, and accessibility, yet it's essential to remember that education is fundamentally a human activity, centered on character formation and human development. As we navigate this new era, let's not shy away from AI but rather interrogate it closely, adapt, and use it as a tool to enhance our teaching methods and better serve our students. More Here

UK to spend $130M on AI chips amid scramble to buy up computing power: In a bid to become an AI tech hub, the UK government, led by Prime Minister Rishi Sunak, is investing £100 million ($130 million) to purchase thousands of computer chips to power artificial intelligence. Amid a global chip shortage, the country aims to build an "AI Research Resource" by 2024, sourcing chips from NVIDIA, Intel, and AMD. Despite this significant investment, it's suggested that more funding may be needed to truly realize Sunak's AI hub vision, a topic likely to be discussed at an upcoming AI safety summit in November. More Here

Arthur unveils Bench, an open-source AI model evaluator: New York-based AI startup Arthur has launched Arthur Bench, an open-source tool for evaluating and comparing the performance of large language models (LLMs). The tool allows companies to test and compare models on various criteria, including accuracy and readability, and is designed to help businesses make informed decisions when adopting AI. Arthur is also hosting a hackathon with Amazon Web Services and Cohere to encourage the development of new metrics for Arthur Bench. More Here

📢 Top Startup’s Fundraising News

Mycoprotein producer Enough raises €40M toward doubling its production capacity: Scotland-based company, Enough, has secured €40 million in growth funding to double its production capacity, aiming to set itself apart in the mushroom protein market. Utilizing proprietary technology, Enough creates a sustainable mycoprotein, Abunda, which is high in protein and fiber, and can be used in plant-based meat, fish, and dairy products. With plans to scale up to over 60,000 tonnes per year starting in 2024, Enough is poised to meet the growing global demand for sustainable protein alternatives. More Here

The scientist behind IBM Watson has raised $60 million for his AI startup in New York: David Ferrucci, a prominent artificial intelligence researcher who led the team that created IBM Watson , has raised nearly $60 million for his AI startup called Elemental Cognition, according to a regulatory filing. The filing on Thursday says the company sold $59.95 million worth of equity to 17 investors and plans to raise another $5.75 million. More Here

Battery materials startup Mitra Chem Inc. partners with GM, raises $40M: Executives with a Mountain View-based battery materials startup just couldn't wait to finish raising their $60 million Series B to announce a partnership with the largest automotive maker in the United States. Even though the executives with Mitra Chem Inc. were only two-thirds of the way to reaching their funding target, they said they needed to get a crucial piece of news out — they had secured the General Motors Company (NYSE: GM) as the lead investor of the Series B. More Here

German Startup Raises Millions to Robotize Clothing Returns: A German robotics startup wants to bring automated textile handling to e-commerce returns. The Munich-based firm Sewts announced the closing of a 7-million-euro ($7.6 million) Series A financing round last week. The funding will go toward accelerating the roll out of its existing Sewts.VELUM product, as well as entering new markets, such as the processing of clothing returns in e-commerce. More Here

Berlusconi Office Backing $100 Million Pharma Startup Qualifyze: Frankfurt-based Qualifyze will secure $12 million in fresh equity from investors including H14 SpA, an Italian family office linked to the country’s late Primer Minister Silvio Berlusconi, according to the people. Private equity firm HarbourVest Partners and German venture investor HV Capital, an existing backer of Qualifyze, also participated in the round, they said, asking not to be identified discussing confidential information. More Here

Arlington EV data startup ElectroTempo raises $4M in seed round: ElectroTempo, an Arlington company that uses analytics to project electric vehicle use and demand for charging stations, has raised $4 million in a seed round to expand its team, refine its software and move into slightly larger space. The round, announced Wednesday, was led by Buoyant Ventures, a Chicago investment firm focused on startups combating climate change, with participation from Zebox, a French accelerator and incubator for logistics startups whose U.S. headquarters is in Crystal City. More Here

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