VC Daily Digest - 29/08/2023

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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

Geek Ventures targets immigrant founders with its first fund $23M: Geek Ventures, a new venture capital firm founded by Ihar Mahaniok, has launched its first fund with $23 million to invest in immigrant tech founders at pre-seed and seed stages. Mahaniok, an immigrant himself, has a rich background in software engineering with experience at Google, Facebook, WeWork, and Lightning AI. He's also been an active angel investor, backing companies like Instacart and PandaDoc. More Here

Why this new VC fund is using drones and steel to tackle the housing crisis: After cofounding the innovative housing nonprofit New Story, where she pioneered new technology like 3D printing for homes, Alexandria Lafci has now launched Hometeam Ventures, a new VC fund focused on finding startups that can make construction more affordable and sustainable. Backed by investors like Alexis Ohanian, the fund raised $18 million, one of the largest raises for a Black female general partner. We talked to her about her journey and how she thinks better technology can help tackle the housing crisis. More Here

A mysterious Tiger Global memo that’s making its way around Wall Street: finance circles were abuzz over an anonymously-written and damning memo that’s being sent around. The document, which extensively cites anonymous sources, details some pretty aggressive, and unsubstantiated, accusations against mega hedge fund and startup investor Tiger Global regarding its performance and personnel. While we reviewed the memo ourselves, we’ve decided not to print any of the specific accusations and details, as we have been unable to verify them by press time. More Here

Scottsdale edtech company uses its own assets to launch venture fund aimed at AI startups: Scottsdale-based Imagine Learning is launching a new venture fund to back startups leveraging artificial intelligence in the education sector. The education technology company announced Wednesday that it created Imagine Learning Ventures to compliment its AI development initiatives by “investing in startups at the forefront of innovative products” for educators and students. More Here

📢 Top Startups News

Klaviyo could break the unicorn IPO logjam: Last week, two venture-backed companies, Instacart and Klaviyo, announced their plans to go public. Amidst a stagnant IPO market and declining tech valuations, Klaviyo's move is particularly noteworthy. As a profitable and rapidly growing software business, Klaviyo could be the "torch bearer" that tech startups have been waiting for, potentially inspiring a resurgence in the IPO market. Let's delve into their IPO filing to understand their growth trajectory and what this could mean for the tech industry as a whole. More Here

Solana-Based Automation Startup Clockwork to Shut Down: Solana-based automation tooling startup Clockwork’s time is up. The Multicoin Capital-backed project’s founder Nick Garfield said Sunday that he and his team were “stepping away from active development of the protocol” and will shut off its infrastructure on Oct. 31. Clockwork built tech to facilitate payroll payments and other regularly-occurring transactions that smart contracts – the backbone for building economies on blockchains – could conceivably improve. More Here

The tech world is being dividing into 'GPU rich' and 'GPU poor.' Here are the companies in each group: Nvidia makes the GPUs that are needed to train the most powerful AI models. If you can get lots of these chips, you've got a head start on most other companies. If you don't have serious supply, you're behind from the beginning. It's no longer about saying "AI" as many times as possible on an earning conference call. You now actually have to have the tech components, other infrastructure, and a smart plan to deploy this incredibly expensive gear. Being at the front of the line for Nvidia GPUs and in the good graces of that company are table stakes now. More Here

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📢 Top AI News

Survey finds relatively few Americans actually use (or fear) ChatGPT: While AI technologies like ChatGPT are gaining prominence, recent Pew Research polling suggests that only about 18% of Americans have actually used it. The technology is more popular among men, those aged 18-29, and the college-educated, with usage rates between 30-40%. Interestingly, more people reported using AI for entertainment or learning rather than for work. Despite this, those aware of ChatGPT believe it could have a significant impact on professions like software engineering, graphic design, and journalism. However, only 19% of employed individuals who'd heard of the model thought it would majorly affect their job, and 27% expect no impact at all. More Here

We don’t have to reinvent the wheel to regulate AI responsibly: We are in the midst of a transformative tech revolution, with AI at the forefront, disrupting societal functions and attracting significant venture capital investment. However, this disruptive technology has also drawn regulatory attention due to the potential societal risks it poses. While there is consensus on the need for regulation, the scope remains a point of contention. Drawing from past experiences with internet regulation, a balanced approach that protects consumer interests while fostering innovation is suggested. More Here

Yahoo Mail introduces new AI-powered capabilities, including a ‘Shopping Saver’ tool: Yahoo is stepping up its game with new AI tools for Yahoo Mail, designed to help users save both time and money. The highlight of the rollout is the Shopping Saver tool, which uncovers forgotten gift cards, discount codes, and store credits, and even drafts messages to vendors for applying these savings. Considering nearly half of U.S. adults have at least one unused gift card or store credit, this tool could be a game-changer for online shopping. More Here

ConverSight raises $9M to accelerate data analytics with generative AI: Indianapolis-based startup, ConverSight, has secured a $9 million series A round to fuel its mission of leveraging generative AI for faster, more effective data analytics. The funding, led by Surface Ventures with participation from Techstars, Augment Ventures, Elevate Ventures, and other returning investors, will be used to expand its product offerings and go-to-market efforts. ConverSight's platform, which has been in development for over 5 years, offers a self-service, end-to-end solution for enterprise customers, covering everything from data integration and storage to data transformation, analysis, and reporting. More Here

Denver-based startup raises $2.4M for AI tools that save K-12 teachers' time: Teachers are frequently asked to take on an abundance of tasks — from teaching new topics and problem-solving skills to grading assignments and communicating with students, parents and other teachers. Now a new startup wants to provide artificial intelligence to cut down on those late hours and weekend work. As a former teacher and principal, Adeel Khan was more than aware of this juggling act. When generative artificial intelligence tools like ChatGPT rolled out, he saw an opportunity to give teachers more of their time back. More Here

AI ‘gold rush’ boosts Silicon Valley: Despite a general downturn in venture capital funding and startup valuations, largely due to interest rate hikes and liquidity crunch, generative AI has emerged as a resilient sector, attracting significant investment. As Ali Javaheri, an associate analyst at PitchBook, notes, generative AI has become "a sort of oasis of funding activity compared to the broader tech sector." More Here

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📢 Top Startup’s Fundraising News

Devolut leverages e-commerce growth in Latin America to develop reverse logistics tool raised $600k: The global pandemic has accelerated e-commerce growth, making efficient return logistics crucial for businesses. Devolut, a Mexico-based startup founded by Agustin Shutte and Emiliano Monge, is addressing this need in Latin America, where the return process is often unreliable and costly. Devolut provides an end-to-end returns solution for e-commerce sellers, including a network of "city points" for easy return drop-offs, automated process software, and technology for assessing item conditions upon receipt. More Here

Moxie raises $15.7M to make opening med spas easier: In the rapidly growing medspa industry, Moxie is making waves with its innovative "business-in-a-box" model. By offering providers coaching, discounted supplies, and an EHR/POS software suite, Moxie has already helped launch over 100 medspa locations. The startup, which recently raised $15.7 million in funding led by SignalFire and Boulton & Watt, aims to simplify the traditionally lengthy and costly process of opening a medspa. More Here

Leadsales targets LatAm businesses with conversational commerce tool for WhatsApp raised $3.7 M: As mobile commerce continues to surge in Latin America, Mexican startup Leadsales is stepping up to help small and medium businesses manage potential sales via WhatsApp and social media. With Meta as a business partner, Leadsales has developed a unique customer relationship management tool that centralizes customer chats into customizable columns for efficient sales funnel automation. More Here

Lightspeed backs Markato, a marketplace that helps independent brands break into Asia raised $5M: The pandemic has accelerated the digital shift in Asia's retail sector, but sourcing remains a challenge. Enter Markato, a cross-border marketplace founded by Uber and Deliveroo alumni Brian Lo and Martin Li, aiming to streamline this process. Launching in Hong Kong with a $5 million seed funding led by Lightspeed, Markato focuses on independent brands, providing a platform for managing their Asia wholesale operations. More Here

Friend.tech gets unfriended: Daily transactions drop 95% as hyped decentralized social app loses steam: The decentralized social network, friend.tech, which allowed users to tokenize themselves and sell "shares" to followers, has seen a significant drop in activity and inflow of funds. Despite initial enthusiasm, with big-name crypto influencers, NBA players, and OnlyFans creators joining the platform, the lack of a clear privacy policy and a vague roadmap led to skepticism. The number of daily transactions fell 95% from nearly 39,000 to about 1,400, and the inflow of funds dropped from $1.98 million to around $8,300. However, the platform has still recorded a total inflow of about $81 million. This decline mirrors the trend seen in other social media platforms like Bluesky and Threads, which also saw early traction fade after launch. More Here

Subletting app Kiki raises $6M by using dating app concepts to match listings and renters: Subletting startup Kiki, formerly known as EasyRent, has successfully closed a $6 million seed round, led by Blackbird Ventures with a $4.5 million contribution. This funding will be instrumental in the company's relaunch in New York City this fall. Kiki, which matches listers with renters for up to six-month periods, has attracted an impressive roster of backers from the tech industry, including former executives from Airbnb, Facebook, Bumble, Canva, and Uber. More Here

Free dating app Cosmic uses personality quizzes to make a profile for you raised $3M: Introducing Cosmic, a new dating app that aims to revolutionize the online dating scene by offering basic features for free and using a unique approach to profile creation. Founded by Michael Sayman, a seasoned engineer and product designer, Cosmic uses a combination of personality quizzes and machine learning technology to create user profiles that truly reflect their personalities. More Here

🗞️ Interesting Weekday Reading On: Startups, Technology & VC

• 📰 Why it's Better To Raise Less Capital In The First Round? Read More

• 📪 What Venture Capital Investors Look for in Early-Stage Startups Read More

• 📜 Do Things That Don’t Scale By Paul Graham Read More

• 🗃️ YC Startup Index Gives 176% Return Read Here

• 📑 Hidden Trap Of Convertible Note and Liquidation Preference Multiples Read Here

• 🗞️ How to Start A Startup By Paul Graham? Read Here

• 📪The Secrets Behind Market Sizing! Read Here

• ✉️ How a Convertible Note Converts During Priced Round (e.g- Series A, B) ? Read Here

• 📑 How To Convince Investors That Your Startup Can Give Maximum Return To Them? Read Here

• 📮Why Brand Building Is So Important For Startups? Read Here

🦄 Weekly Updates: Inside The Founders & Investors Community

• 😃 Weekly Discussion on : How To Convince Investors That Your Startup Can Give Maximum Return To Them?

• 🥳 Startup Demo Day: AI Startup founders: Devit & Sully backed by Y-Combinator pitched in front of 20 investors.

• 🤝 Leading Investors Joined The Community: Cici Bellis. Former Tennis Player launched a sports and health focused VC firm.

• 💼 Shared Job Opportunity: Shared this weeks top 10 remote VC jobs at various funds.

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✍️Written By The Venture Crew Team

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