VC Daily Digest - 23/08/2023

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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 !

📢 Top Venture Capital News

How VCs evaluates generative AI startups?: The advent of ChatGPT in November 2022 marked a new era in AI, transforming the tech industry forever. As venture capitalists, we've had to swiftly devise strategies to distinguish high-potential startups from those that are mostly hype. We see immense opportunity in the accuracy and reliability of generative AI's information, and believe that specialized models using proprietary data will be the future. We're particularly bullish on infrastructure and tooling companies that ensure safety, accuracy, and privacy across model outputs, orchestrate inference across multiple models, and optimize incorporating proprietary data into large language models. More Here

Bankrupt SVB Financial Seeks to Rebuild Venture Capital Business: SVB Financial Group, the bankrupt former parent of Silicon Valley Bank, is close to rebuilding a venture capital business it lost when federal regulators took over during a meltdown and transferred the bank to First-Citizens Bank & Trust, a lawyer said in court Tuesday. The business, SVB Capital, is worth about $427 million and is a key part of SVB Financial’s remaining portfolio, according to court papers. The bankrupt holding company still owns the assets of the venture capital business, but the nine key employees that managed those investments now work for First Citizens, according to court documents. More Here

How Firms Can Prepare For The Rise Of AI In Venture Capital?: Venture capitalism, the lifeblood of innovation, is on the cusp of a significant transformation. The integration of AI, data analysis, and machine learning could radically alter the traditional VC landscape. With the potential to reshape decision-making processes, speed up funding approvals, and introduce new forms of equity distribution, AI's emergence in venture capitalism is more than a technological shift; it's a paradigm alteration. However, this shift also brings challenges such as bias in data and algorithms, the need for early victories to build trust, and changes in power dynamics within the industry. More Here

VC-backed startups are in a 'difficult position' in 2023: Analyst: Startup funding in the second quarter of 2023 declined by over half its value since last year, falling to $10 billion. Pitchbook Lead VC Analyst Kyle Stanford sits down with Yahoo Finance Live to discuss the environment for companies seeking venture capitalist support funding. "There's 51,000 private VC-backed companies right now and then there's also... maybe about half as much capital, and so these companies are trying to find a way to move forward," Stanford says on the struggle to access capital funds. More Here

Ben Stokes and Chris Smalling back new tech and sports-led £40m VC fund: Renowned cricketer Ben Stokes, along with other prominent sports figures, is launching a new £40m VC fund, The Players Fund, aimed at uniting successful sportspeople with a history of investing in startups and experienced venture capitalists. The fund will focus on technologies that power human performance, media, digital communities, and smart commerce. Stokes believes that by pooling resources, networks, and experience, athletes can achieve more collectively than individually. This initiative provides a structured way for athletes to confidently step into early-stage investing alongside their peers. More Here

📢 Top Startups News

Friend.tech hype is skyrocketing, but will it actually reach the stars?: Friend.tech, a decentralized social-focused app, has seen rapid user growth and significant transaction volume since its beta launch, despite concerns about its viability and security. The platform, which allows users to tokenize their likeness, has generated considerable revenue, but faces skepticism due to a lack of privacy policy and clarity on its operations. Its model echoes that of the controversial DeSo, a crypto social network that faced legal issues. More Here

Europe's Startups Stretched as VC Funding Falls 61% in First Half of '23: The European tech sector is facing a significant funding deficit, with venture capital investment falling by 61% in the first half of 2023, according to Pitchbook data. This situation has led to cost-cutting measures and layoffs in startups like Glovo and Getir, and has forced entrepreneurs to work harder for less funding. More Here

Sidus Space acquires Exo-Space: Sidus Space is thrilled to announce our acquisition of Exo-Space, a startup specializing in space-based edge processing and artificial intelligence. This strategic move allows us to expand our talent, technology, and total addressable market, enhancing our Earth and space observation capabilities. More Here

Fungi-based meat alternative startup Enough, founded by a former Quorn boss, just raised $43.5 million with this 16-slide pitch deck: Scottish startup Enough, a fungi-based food company, has secured $43.5 million in growth funding. Leveraging the power of fermentation, Enough produces a high-protein, fiber-rich mycoprotein that offers a sustainable and efficient alternative to animal-based meat. With a commitment to zero-waste production and significantly lower CO2 emissions, Enough is poised to revolutionize the plant-based meat industry. The funding will be used to double production capacity and team size, further solidifying the company's position in the market. More Here

Salesforce Leads Financing of AI Startup, hugging face at More Than $4 Billion Valuation: Exciting news in the AI industry: Salesforce is leading a financing round in Hugging Face, a startup that's making waves by helping businesses utilize artificial intelligence. This move more than doubles the share price and private valuation of the New York–based company, pushing it north of $4 billion. More Here

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📢 Top AI News

YouTube and Universal Music Group join forces to explore the future of AI music: YouTube and Universal Music Group (UMG) are joining forces to explore the potential of artificial intelligence (AI) in music creation and distribution. The Music AI Incubator initiative will serve as a hub for musicians, songwriters, and producers to experiment with AI technology. This partnership could redefine our understanding of music and technology, while also addressing the ethical and legal implications of AI-generated music. As YouTube's CEO Neal Mohan puts it, the company is "incredibly excited about the opportunity of AI to supercharge creativity around the world." More Here

Google Announces First AI Accelerator Program for African Startups: Google has officially launched a new program, "Google for Startups Accelerator: AI First", aimed at supporting African startups that integrate AI into their processes. The 10-week equity-free accelerator offers access to Google’s AI expertise, technical resources, mentorship, and networking opportunities. Since 2018, Google's accelerator programs have supported 106 startups from 17 African countries, raising over $263 million in funding and creating over 2,800 jobs. Applications are open until September 6, 2023. More Here

How Not to Become Just Another Gen AI Platform: The AI landscape is rapidly evolving, and businesses are faced with the challenge of integrating generative AI into their workflows to unlock real value. As the market becomes crowded, it's up to firms to identify the right AI offerings and large language model (LLM) platforms for their needs. However, not all applications require the most advanced LLMs. It's crucial for firms to establish a business need or strategic goal before deciding which AI bundle will perform best for them. More Here

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📢 Top Startup’s Fundraising News

ScribeUp’s ‘fully-automated’ approach to managing subscriptions raised $3M: ScribeUp, a proactive subscription management company, has raised $3 million in seed funding from Mucker Capital. Their unique approach combines the find-and-cancel method with a virtual payment card, protecting users from unwanted charges and offering easy subscription cancellation. Since its July launch, ScribeUp has gained over 10,000 active users, saving them an average of $700 annually on unwanted subscriptions. The new funding will support further innovation and new features, including price hike defense and personalized ways to save on subscription services. More Here

Arkifi raises over $9 million for AI-powered financial analyst tools: Arkifi, an artificial-intelligence startup that provides workflow automation tools for financial institutions including hedge funds and investment banks, said on Monday the company had raised over $9 million in seed financing. The financing was co-led by Khosla Ventures and Nyca Partners, with participation from Soma Capital, MVP Ventures, Valiant Capital Employee Fund, Correlation VC and G&H Partners. More Here

Dallas-based startup raises $3.3M seed round led by Boston venture capital firm: The round of funding, led by Boston-based Underscore VC, will allow Aircon to invest in expanding partnerships across the air cargo and freight markets, global gateway expansion, growing its AI tech infrastructure and growing its team. More Here

Fintech startup Ramp raises $300M at a 28% lower valuation of $5.8B: Fintech startup Ramp has successfully raised $300 million in a funding round, co-led by Thrive Capital and Sands Capital, bringing its post-money valuation to $5.8 billion. The funds will be used to accelerate product development, expand into new categories, and significantly increase hiring in the second half of this year. Despite a challenging environment for fintech funding, Ramp continues to grow, with its annualized revenue surpassing $300 million and its user base expanding from 5,000 to over 15,000 businesses since March 2022. More Here

Grip Security raises $41M to help enterprises manage their SaaS identity risk: Grip Security, a pioneer in SaaS security solutions, has successfully raised $41 million in a Series B funding round, bringing their total funding to $66 million. This funding will fuel their mission to reduce SaaS identity risk, a growing concern for many enterprises, by providing visibility and control over user access to SaaS tools. With a 400% growth in bookings and a tripling of their team, Grip is poised to expand their product offerings and reach new markets, reinforcing their commitment to being an integral part of the SaaS security landscape. More Here

Cascade Biocatalysts Secures $2.6 M to Scale Enzymes for Biomanufacturing: Cascade Biocatalysts, a pioneer in green chemistry, has successfully raised an oversubscribed $2.6M pre-seed round led by Ten VC. The funds will be used to scale the impact of their proprietary technology, Body Armor for Enzymes™, from lab to pilot scale, and support their initial customer base. More Here

Aircon Raises $3.3 Million in Seed Funding Led By Underscore to Transform Air Freight: Aircon, a trailblazer in the air cargo industry, has secured $3.3M in seed funding led by Underscore VC. This funding will fuel global expansion, AI tech growth, and deeper industry partnerships. By leveraging AI and machine learning, Aircon is revolutionizing the air freight market, offering forwarders of all sizes access to efficient consolidation options. This is a significant stride towards digital transformation in an industry that has been lagging behind. More Here

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Read The Venture Crew’s VC Newsletter 🗞️

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✍️Written By The Venture Crew Team

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