VC Daily Digest

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📢 Top Venture Capital News

Kraken Ventures to raise $100M in second fund, with focus on ‘early stage founders’: Kraken Ventures, known for its extensive experience in early-stage investments, is setting its sights on a $100 million fund, a significant increase from its previous $65 million fund raised in December 2021. The focus remains on supporting early-stage founders and investing in numerous projects, with a "significant portion" dedicated to follow-up investments. Despite being an independent entity, Kraken Ventures aligns with the mission of cryptocurrency exchange Kraken, backing founders who are building blockchain-based products to create a more open and transparent financial system. More Here

Bitcoin Frontier Fund launches accelerator program for Ordinals startups: The Bitcoin Frontier Fund has announced the launch of the first Bitcoin Ordinals accelerator program, a 4-month initiative led by VC @TO. This program aims to provide startups with seed funding, mentorship, and industry insights, focusing on those innovating in the Ordinals space - a new development in blockchain and cryptocurrency created by Bitcoin developer Casey Rodarmor. Despite the controversy in the community, supporters like Ethereum creator Vitalik Buterin believe Ordinals have revived the 'builder culture' on Bitcoin, marking an innovative evolution of existing technology. More Here

Fundraising For Tech Companies In A Recession: Navigating the challenging landscape of tech startup fundraising in 2023, Michael Szalontay, Co-founder and General Partner at Flashpoint, shares his insights. With a 40% drop in capital raised, mirroring the impact of the 2008 financial crisis, he suggests three approaches for companies: continue fundraising, explore other sources of financing, or minimize the need for financing. Amidst the gloom, he emphasizes the importance of storytelling in business, reminding us that "Humans think in stories, and we try to make sense of the world by telling stories." More Here

Why More Startups Are Dying—And Few Are Coming to the Rescue: Startups are facing a funding drought as venture capitalists become more selective due to higher interest rates, with funding to young startups dropping by half compared to last year. Meanwhile, homelessness in the US has seen an 11% increase this year, driven by factors including the pandemic, high housing costs, and the expiration of COVID relief funding. On a positive note, drugs like Ozempic are revolutionizing our understanding of obesity, demonstrating that weight gain and loss is more about biology than willpower. More Here

Angel and seed funding remain insulated from startup market volatility: Report: Despite a challenging startup market, angel and seed funding in Europe have shown resilience, with median angel deal values up by 28.8% in H1 2021, according to Pitchbook. This resilience is attributed to the long-term nature of returns in these rounds and supportive government initiatives. However, the venture-growth stage faces a tougher climate, with median valuations and deal values down by 18.5% and 16.7% respectively, and unicorn activity has slowed significantly. More Here

📢 Top Startups News

Monday.com shows it’s possible to post great results even in a slow market: Despite a general slowdown in net retention growth across the SaaS sector, Monday.com continues to impress with a 42% rise in Q2 2023 revenue and a significant reduction in operating and net losses. The cloud-based platform, which allows users to create apps, has also seen its stock rise by nearly 15%. The company's ability to delight investors in challenging times is a testament to its robust business strategy and commitment to continuous improvement. More Here

Enterprise spending on cybersecurity has changed, and vendors must adapt: In the ever-evolving landscape of cybersecurity, a recent report by YL Ventures provides some much-needed clarity on the impact of the down market on enterprise security budgets. Surveying Fortune 1000 CISOs and cybersecurity decision-makers, the report reveals that despite economic challenges, 45% of cybersecurity budgets have remained unchanged or even increased. More Here

Web3 gaming adoption is skewing toward Asia, and the rest of the world may have to play catch-up: Culture and entertainment are closely intertwined, and this relationship extends into the gaming industry. The cultural differences between Asia and the Western world are shaping the development of the web3 gaming market, with Asian companies leading the charge due to a "very strong genre-fit" with popular games in the region, according to Robbie Ferguson, president and co-founder of web3 gaming company Immutable. More Here

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📢 Top AI Startup’s News

Global investment in AI could near $200 billion by 2025: Goldman Sachs: A recent economic analysis by Goldman Sachs predicts a significant surge in global businesses' investment in AI technologies, potentially reaching $200 billion by 2025. This represents a 72% increase from the estimated $91.9 billion in 2022, with the U.S. accounting for over half of this global investment. Despite the rapid growth, the near-term GDP impact is expected to be modest, as AI-related investment currently accounts for a very low share of U.S. and global GDP. More Here

Forget SEO: Why ‘AI Engine Optimization’ may be the future: The future of marketing is set to be disrupted by the rise of personal AI, according to industry analyst Jeremiah Owyang. As AI becomes increasingly influential, marketers will need to shift from traditional SEO optimization to AI Engine Optimization, ensuring their content is discoverable within AI itself. This shift may involve creating APIs that feed real-time information to foundational models and training branded AI to interact with consumers, a strategy that companies are already exploring. More Here

AI isn’t science fiction anymore. Will it turn into a horror story for workers?: Artificial Intelligence (AI) is no longer a future concept, it's here, and it's causing a stir in industries from Hollywood to lumber mills. While concerns about job loss are valid, it's important to remember that with every technological advancement, new opportunities arise. The key to navigating this shift is not to replace humans with AI, but to use AI as a tool to automate repetitive tasks, freeing up time for creative and strategic thinking. More Here

📢 Top Startup’s Fundraising News

Open AI’s Rival, AI startup Anthropic raises $100M from Korean telco giant SK Telecom: Exciting news in the AI space as South Korean mobile carrier, SK Telecom (SKT), announces a $100 million investment in Anthropic, an AI startup co-founded by former OpenAI leaders. This strategic move signifies SKT's entry into the generative AI race, with plans to co-develop a multilingual large language model (LLM) customized for global telco firms. Anthropic, known for its AI system Claude, will leverage its AI expertise and SKT's industry knowledge to provide AI services to global telco firms, aiming to transform the industry with AI-powered solutions. More Here

Auradine, crypto startup raised $81 million with no product, no customers, and just a pitch deck: The historical trend of the stock market experiencing its most profitable spell in the nine months following a midterm election year, a period coined as the 'midterm miracle' by billionaire Ken Fisher, has once again proven true. This period, which began last October, has seen consistent gains, reinforcing this pattern. Fisher also notes that this 'miracle' period is typically followed by another strong, albeit slightly less fruitful, phase in the market. More Here

Mixlab adds to veterinary pharmacy footprint following $10M Series A extension: The global pet care industry, expected to reach $368 billion by 2030, is seeing a surge in tech-infused services. Mixlab, a pet prescription and wellness solution provider, recently secured an additional $10 million in funding led by Vanterra Ventures, bringing their total raised to $40 million. This investment will support Mixlab's expansion into new locations and product offerings, as well as enhance their proprietary technology that helps veterinarians manage prescriptions and provides pet owners with proactive communication. More Here

SA’s MedTech Startup VitruvianMD Secures R23 Million In Funding To Accelerate Growth: South Africa's medtech startup, VitruvianMD, has successfully raised $1.25 million in their Seed Extension II funding round, led by 27four’s social impact venture capital fund, The Nebula Fund. This funding will be used to accelerate growth, upscale their team, gain international regulatory approvals, and drive growth into new applications of their revolutionary technology. VitruvianMD's innovative approach combines biomedical engineering with advanced AI to revolutionize diagnostics accessibility, addressing the global challenge of diagnostician shortages and setting new standards for laboratory access. More Here

Haveli Investments Leads $100 Million Investment into Candivore, Developer of Hit Mobile Game Match Masters: Haveli Investments, a tech and gaming-focused private equity firm, has acquired a minority stake in Candivore, the creators of the popular multiplayer match-3 puzzle game, Match Masters. This $100 million investment, funded by Haveli VC Gaming Fund I, marks Haveli's first foray into the mobile gaming space, and will support Candivore's growth in the U.S. and beyond. With over 50 million downloads and $300 million in revenue, Match Masters is a testament to Candivore's innovative approach to mobile gaming, and this partnership promises to take the business to new heights. More Here

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