VC Daily Digest

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📢 Top Venture Capital News

SoftBank May Turn Profit After $48 Billion in Vision Fund Losses: Analyst predict a return to profit for SoftBank Group as it prepares to announce its Q1 earnings, following a rebound in its Vision Fund's tech stocks. This could alleviate pressure on CEO Masayoshi Son, whose aggressive bets on late-stage startups have recently underperformed. Investors are also keenly awaiting updates on the potential listing of portfolio chip designer Arm, which could provide a significant cash boost for the group and further establish Son's reputation as a visionary tech investor. More Here

Dan Gwak of Point72 Ventures on why defense tech is becoming the next big thing for investors: Dan Gwak's unique journey from a Cornell graduate to a U.S. Marine Corps machine gunner, and now a leading figure in the intersection of national security and technology, is a testament to his adaptability and resilience. Having invested over $1 billion into approximately 130 companies across deep tech, fintech, enterprise, and defense tech, Gwak's focus has shifted towards defense tech, recognizing its growing importance to the government and its potential to shift the global superpower balance. More Here

Current Venture Debt Funding: Venture debt, despite its high interest rates, offers a unique advantage to startups - it doesn't require equity dilution. This method of borrowing, ranging from $1M to $100M, is secured against intangible assets like future revenue, IP, and VC backing. It's a strategic tool for growth-stage companies on the brink of profitability, needing an extra boost to reach their goals. As David Spreng, CEO of Runway Growth Capital, suggests, understanding the nuances of venture debt can help startups navigate their financial journey more effectively. More Here

SoftBank launches an OpenAI for Japan: SoftBank is making a significant move in the AI space with the launch of SB Intuitions, a company dedicated to developing homegrown Large Language Models (LLMs) specialized for the Japanese language. The venture, 100% owned by SoftBank, aims to build and sell generative AI services based on Japanese, leveraging data housed in Japan-based data centers. Hironobu Tamba, a long-time SoftBank employee, will lead the new business, which is expected to tap into SoftBank's extensive consumer and enterprise operations in Japan. More Here

📢 Top Startups News

Will we see any IPOs happening this year at all?: In the midst of technological advancements and economic shifts, the tech industry is showing promising signs of growth and stability. With inflation easing off in the U.S. for the 12th consecutive month, tech valuations are experiencing relief, and the venture capital market is performing better than anticipated. While the timeline for a new wave of IPOs remains uncertain, the overall market conditions continue to improve, fostering optimism for the future of the tech industry. More Here

EventMobi acquires a16z-backed virtual events platform Run The World: EventMobi, a leading event management software provider, has announced its acquisition of Run The World, an online events platform backed by Andreessen Horowitz. This strategic move allows EventMobi to expand its reach, diversify event formats, and solidify its position as an industry leader. As we transition into a new era of blended in-person and virtual experiences, EventMobi is committed to enabling customers to choose the best format for their attendees to learn, connect, and exchange ideas year-round. More Here

EdgeIn hopes to be a faster, community-driven, ‘CrunchBase for web3’: The web3 space has long been criticized for its lack of transparency, especially when compared to the traditional tech industry. However, a new startup called EdgeIn is aiming to change this by providing a database platform that offers accessible and affordable web3 data. For just $14.99/month, users can get real-time updates on companies, deals, and events, with the platform pulling in datasets from various sources. The goal is to level the playing field for builders in web3 and erode the advantage held by big venture firms and hedge funds. Co-founder and CEO Redg Snodgrass says the idea came from a desire for reliable data for discovery, due diligence, and competitive analysis. More Here

Coinbase Q2 earnings exceed estimates, signaling potential market recovery: Coinbase, the second largest crypto exchange by trading volume, reported a robust Q2 performance, surpassing market estimates. Despite a slight dip in total revenues to $707.9 million from $772.5 million in the previous quarter, Coinbase's strategic cost-cutting measures have proven effective, reducing quarterly recurring operating expenses by nearly 50% Y/Y. With $92 billion in quarterly volume traded and $128 billion assets on its platform, the company's shares rose 7% in after-hours trading, reflecting the market's positive response to these results. More Here

📢 Top AI Startup’s News

AI Is Going To 4-dimensional: In the ever-evolving world of technology, AI is making significant strides, enabling the creation of "deepfake" videos that are increasingly convincing. While this raises questions about responsibility and misuse, it also democratizes special effects, previously a domain exclusive to Hollywood, and educates the public about the possibilities of technology. Meanwhile, in the startup scene, fundraising remains a critical focus, with a need for founders to effectively communicate how they've mitigated risk in their business, and recent activity includes Reed Jobs unveiling a $200 million venture fund for new cancer treatments. More Here

Microsoft kills Cortana in Windows as it focuses on next-gen AI: Microsoft is bidding farewell to its digital assistant app, Cortana, as it shifts focus towards modern AI advancements like Bing Chat and other AI-powered productivity tools across Windows and Edge. This move signifies Microsoft's vision of a smarter AI future, leveraging their partnership with OpenAI to build a GPT-4 powered chatbot. While Cortana will continue to be available in select Microsoft platforms, the company is preparing users for a smooth transition to alternatives like Windows 11 voice access, AI-powered Bing, and Microsoft 365 Copilot. This shift towards more advanced AI tools may set a trend for other tech giants to follow. More Here

📢 Top Startup’s Fundraising News

How a frugal approach helped land Lula more runway amid a market downturn and raised $35.5M: In the ever-evolving world of fintech startups, the past week has seen significant developments. Lula, a startup aiming to be the "Stripe for insurance," announced a $35.5 million Series B co-led by NextView Ventures and Khosla Ventures, marking a 5x increase in valuation within two years. Meanwhile, Bloom, a venture-backed company offering a zero-commission stock investing tool for teenage investors, surpassed 1 million downloads and over 10 million games played in the app, indicating a growing interest in financial literacy among younger demographics. More Here

AI chip startup Tenstorrent lands $100M investment from Hyundai and Samsung: The AI hardware market is booming, with AI chips predicted to make up 20% of the $450 billion total semiconductor market by 2025, according to McKinsey. This week, AI hardware startup Tenstorrent, led by engineering luminary Jim Keller, announced a $100 million funding round co-led by Hyundai Motor Group and Samsung Catalyst Fund. This funding will be used for product development, AI chiplet design, and advancing Tenstorrent's machine learning software roadmap, as the company continues to innovate in the AI processor and software solutions space. More Here

Revolutionizing architecture: Acelab raises $5.3M to fuel supply search innovation: a four-year-old New York startup that has built a searchable product database for architects and builders, raised a $5.3 million in round co-led by Pillar VC, PJC, and Draper Associates, with Alpaca, Transcend Partners, Branagh Construction, Klingenstein Fields, and Westview PE Fund also joining in. The company has raised a total of $8.8 million. More Here

Jericho Security secures $3M to counter AI-powered phishing attacks: A New York startup that says it assists enterprises in defending against social engineering attacks by leveraging AI to create sophisticated simulations and educational content for employees, raised a $3 million pre-seed round led by Era, with Lux Capital, FoundersXFund, MetaLabs, Alcove, Textbook, Alumni Venture Group, Thorntree Capital Partners, and Contrary Capital also piling on. More Here

London-based Orbital raises €5.8 million to help enterprises adopt blockchain and fiat payments rails in one single platform: A six-year-old London startup whose mission is to help enterprises adopt blockchain and fiat payments rails in one single platform, raised a $6.35 million round led by Golden Record Ventures, with New Form Capital, GSRV, Psalion, and Luminous Futures also pitching in. More Here

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Read The Venture Crew’s VC Newsletter 🗞️

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

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