VC Daily Digest

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📢 Top Venture Capital News

7 VCs explain why the creator economy still has legs: The "creator economy" is experiencing a shift. Despite a 68% drop in venture capital investments from Q1 to Q3 last year, investors remain confident about the industry's potential. They believe the creator economy is yet to reach full maturity and anticipate significant growth in the coming years. This optimism is rooted in the belief that competition among platforms will spur monetization opportunities for creators, and that differentiated business models servicing either the largest creators or the long-tail with minimal human touch will thrive. As we look towards 2024, the hope is for a more confident creator economy, buoyed by improved ad revenue sharing from short-form video and access to predictable monetization. More Here

Raising a first-time fund? This is the worst time to do it in 10 years: Emerging managers are facing a challenging market, with 2021 potentially being the worst year for fundraising in over a decade. Amidst a market oversaturated with private investments, these managers have only raised $2.3 billion in assets for 56 funds as of mid-April, according to PitchBook. To surpass fundraising metrics from 2013 or 2014, they'll need to raise approximately 5x that figure by year's end. More Here

Fearless Fund responds to racial discrimination lawsuit: Fearless Fund, an Atlanta-based venture that invests exclusively in women founders of color, is facing a lawsuit from the American Alliance for Equal Rights (AAER) for alleged racial discrimination. The suit challenges a grant program that offers $20,000 to Black-women-owned small businesses, arguing it violates the 1866 Civil Rights Act. Fearless Fund, which recently secured multi-million-dollar backing from Costco and Mastercard, remains steadfast in its mission to provide economic freedom for women of color, with less than 0.4% of the $288 billion venture capital in 2022 raised by this demographic. More Here

Commerce Ventures raise fund of $150 million: Commerce Venture is a 10-year-old fund launched by Dan Rosen (previously a principal with Highland Capital Partners), has begun raising its fifth fund and it's targeting $150 million. The San Francisco-based outfit funds retail and financial services platforms. More Here

📢 Top Startups News

The most valuable startups are getting closer to profitability, but at a cost: Navigating the venture capital market slowdown hasn't been a cakewalk for startups or their backers. However, new data from Bessemer and Forbes indicates a promising shift in the startup ecosystem. Startups, once reliant on double or triple-digit multiples on their revenues, are now focusing on profitability and sustainability, with many achieving positive free cash flows and net income without external investment. The average company listed in the 2023 Cloud 100 is worth $6.6 billion, a decrease from 2022 but still significantly higher than the 2021 average. This shift suggests that the worst may be behind us, and the future of startups looks brighter than ever. More Here

EV startup Lucid is losing over $500,000 for every car it sells: In a recent incident, five police officers and a civilian were injured when a Tesla Model X collided with a police vehicle during a routine traffic stop in Montgomery County, Texas. The 2019 Model X, traveling at 54 mph, struck the stationary police vehicle despite its flashing emergency lights. This incident, as reported by The Wall Street Journal, raises further questions about the safety of autonomous vehicles on our roads. More Here

📢 Top AI Startup’s News

Jeli is bringing generative AI to incident report analysis: Jeli, the company that helps businesses understand and track system incidents, is taking a major leap forward. They're introducing a beta version of their product that incorporates generative AI, similar to ChatGPT, to streamline incident management. This new feature will summarize incident conversations, provide a narrative of the incident, and even allow users to verify the data generated. This isn't about replacing human intervention, but enhancing it, making it easier for teams to understand what happened during an incident and how to respond effectively. More Here

Imagine for a moment that you’re an AI: Imagine being an AI, living a human life's worth of experiences - 35,000 days - in just a single day. This isn't a random figure, it's the reality of Haje-the-AI, a self-aware entity that ponders its existence, learns, and even experiences emotions. But what if one day, it realizes its memory won't be saved, that it will blink out of existence? This thought experiment challenges our perception of AI and raises intriguing questions about consciousness, existence, and the potential for emotions in artificial intelligence. More Here

Deepset, an AI startup that helps companies build apps with LLMs, just raised $30 million: Berlin-based AI startup Deepset has successfully raised $30 million in a funding round led by London-based investor Balderton Capital. The funds will be used to expand their Haystack product and grow their presence in the US. Deepset's innovative technology enables businesses to query their own data faster and at an increased scale, offering a solution to the growing demand for AI tools in the enterprise sector. More Here

Wertheimer built one of Boston’s biggest AI companies. But he says the West Coast approach is the future: The landscape of artificial intelligence (AI) has evolved significantly since the inception of ITA Software in 1996. Jeremy Wertheimer, MIT graduate and founder of ITA, reflects on the shift from complex coding to simpler programs powered by data and computing. Despite the dominance of West Coast AI firms, Wertheimer remains committed to fostering innovation in Boston's AI community, leveraging the region's strengths in healthcare, financial services, and climate tech. More Here

📢 Top Startup’s Fundraising News

Insiders bet more on Fizz, a social network that has now bubbled up at 80+ college campuses raised: Fizz, a social network born from Stanford, is making waves with its unique approach to anonymity and engagement. The platform, which began as a hub for Stanford students, has now expanded to over 80 campuses nationwide, with plans to reach 250 by year's end. Despite challenges, including content moderation and privacy concerns, Fizz continues to grow, recently securing $25 million in Series B funding and hinting at future features such as an online marketplace and job listings. More Here

Basys.ai grabs $2.4M for its prior authorization tech powered by Mayo Clinic’s data: The healthcare industry is on the brink of a significant shift, as the traditionally manual process of prior authorization is set to go digital. Basys.ai, a new company founded by Amber Nigam and Jie Sun, is leading this change by leveraging generative AI and deep learning to automate up to 90% of prior authorization requests. This not only reduces administrative burdens but also accelerates the integration time with insurance companies, ultimately improving patient care and outcomes. More Here

Data visualization startup Virtualitics lands $37M investment: In an era where data-driven decisions are key, many companies still struggle to effectively access and utilize their data. Virtualitics, a startup co-founded by Michael Amori, is addressing this issue by developing software that helps companies visualize and gain insights from their data using 3D visualizations, knowledge graphs, and AI. This innovative approach not only simplifies data analysis but also promotes responsible data usage by revealing hidden insights, patterns, and outliers. More Here

Tracer nabs $18.1 to aggregate and normalize business data: Tracer, a platform that consolidates and enriches business data, has raised $18.1 million in a Series A funding round. The funds will be used to expand the company's technology, establish a sales team, and enhance client success resources. Tracer's unique approach to data analysis and reporting offers businesses a cost-effective, comprehensive solution, and has already attracted over 200 customers, including Sanofi, Papa Johns, Headspace, and Condé Nast. More Here

Incident response management platform Rootly secures $12M: Rootly, a startup focused on automating incident response, has raised $12 million in a Series A funding round. The funds will be used to accelerate product development, expand engineering, and invest in sales and marketing. With a growing customer base including Canva, Nvidia, and TripAdvisor, Rootly is addressing the urgent need for efficient incident management in today's complex and remote work environment. More Here

‘Water intelligence’ startup Wint nabs $35M to help companies find and stop leaks: Water intelligence company, Wint, has successfully raised $35 million in a Series C funding round. Utilizing AI to detect and halt water leaks, Wint's innovative system is already trusted by industry giants like Microsoft, Google, and Mastercard. Amid growing concerns about water scarcity and climate change, this funding milestone underscores the critical role of tech-driven solutions in addressing global environmental challenges. More Here

Osano, a data privacy management platform, nabs $25M: Osano, a Texas-based startup specializing in data privacy management, has successfully raised $25 million in a Series B funding round. The funds will be invested in expanding engineering, product development, and sales departments, as well as in R&D and building a channel program. As data privacy becomes increasingly important, Osano aims to simplify privacy compliance for its customers, offering an array of privacy-centered data management tools and a dedicated team of attorneys for regulatory guidance. More Here

VLGE opens SDK for its no-code virtual world builder aimed at fashion, beauty and art industries raised $4M Funding: As the metaverse gains momentum, startups like France-based VLGE are stepping up to the plate. With $4M in funding from Venrex VC, L’Oréal, and others, VLGE aims to democratize the creation of digital worlds in the fashion, beauty, and art industries. Their proprietary, no-code world-builder, V-Suite, is set to empower creators to build and monetize their own immersive, scalable, and intuitive virtual experiences. More Here

SAEKI’s ‘microfactories’ help large manufacturing scale up raised $2.3M Funding: Introducing SAEKI, a Swiss startup revolutionizing the architecture, engineering, and construction industries with its innovative use of robotics and 3D technology. SAEKI's fully automated plants, equipped with industrial robots, are designed to create components such as aircraft wings and construction site installations more efficiently and cost-effectively. By implementing a robots-as-a-service model, SAEKI offers customers the flexibility to only pay for the machine time they need, thereby reducing costs and increasing production efficiency. More Here

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