Y Combinator Raising $2 Billion & Exec Fined For Investor Deception on EV Truck.

👋 Hey, Sahil here! Welcome to today's quick rundown in the Venture Daily Digest Newsletter. I've got the scoop on startup fundraising, fresh VC funds, and some cool tech – all in just 5 minutes!

• Y Combinator, led by CEO Garry Tan, is reportedly raising $2 billion across three new funds.

• Emad Mostaque, founder and CEO of Stability AI, steps down to pursue decentralized AI.

• AI startup Anthropic to divest 8% stake from FTX, shuns Saudi funds over security concerns.

• Ex-Lordstown CEO Steve Burns fined $175K, banned 2 years for misleading investors on electric truck demand.

• DOJ sues Apple over alleged monopoly, compromising privacy for profit.

• GameSquare Holdings, Inc., a company focused on connecting brands with Gen Z and Millennials delist its common shares.

• Featured Article : Y-Combinator Guide To Seed Fundraising.

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Startup Funding Updates

Mallard Bay, The Houston-based startup is a marketplace for consumers who hunt and fish to find and book guided tours the same way they would book a hotel online. It has raised $4.6 million Series A led by Soul Venture Partners with participation from existing investor Acadian Capital Ventures, and other angel investors. More Here

Borderless AI Toronto-based has raised $27 million in a funding round led by investment firm Susquehanna and Bernard Arnault's venture capital company, Aglaé Ventures. More Here

Nsave raises $4 Million in Seed Funding Co-Led by Sequoia Capital and TQ Ventures to Launch First-of-Its-Kind Fintech Solution. More Here

Espresso Systems, a remote startup advancing shared sequencing technology to enhance security and decentralization in verifying and processing transactions on layer-2 blockchains, raised $28m in Series B funding. The round was led by Andreessen Horowitz, with participation from Polygon Labs, StarkWare, Taiko, and Offchain Labs. More Here

Tarsal, a three-year-old San Francisco startup that raised a $6 round Tarsal, a New York security data movement startup, raised a $6 million seed round co-led by Harpoon Ventures and Mango Capital, with Y Combinator, Abstract Ventures, and Backend Capital also contributing. More Here

Ainn Layer2, Jersey City, NJ-based provider of a decentralized Bitcoin Layer2 network project supporting large-scale AI applications, raised an undisclosed amount in funding. The round saw participation from Waterdrip Capital, Satoshi Lab, Foundinals Lab, Monday Capital, AlNN Labs, Bitrise Capital, Genblock Capital, AscendEx and Bitmart’s fund – Cipholio Ventures, and others. More Here

Ascend Analytics, a Boulder, CO-based provider of energy transition analytics solutions, received an investment from Rubicon Technology Partners. Rubicon was joined by climate investment firm Galvanize Climate Solutions, and Silversmith Capital Partners. More Here

Rithmik Solutions, a Montreal, Canada-based company which specializes in AI-powered analytics for mobile equipment optimization in the mining industry, raised $2M in funding. Backers included Cycle Momentum, DevCap, angel investors from AngelOne and the Golden Triangle Angel Network and Archangel’s Adrenaline Fund, and previous investors Chrysalix Venture Capital and Ecofuel. More Here

Packback, a Chicago, IL-based provider of an AI-enabled writing and discussion platform, received an investment from PSG Equity. The amount of the deal was not disclosed. More Here

Conduce Health, a NYC-based multi-specialty value-based care marketplace providing solutions for primary care organizations and specialists, raised $3M in Seed funding. The round was led by Connecticut Innovations with participation from AlleyCorp, CityLight, and other strategic investors. More Here

Rails, a Toronto, CA-based provider of a self-custodial crypto exchange that allows users to trade perpetuals while maintaining self-custody, raised $6.2M in Seed funding. The round was led by Slow Ventures, Round13 Capital, CMCC Global, and Quantstamp. More Here

Carrieverse, a Seoul, South Korea-based Web3 company which issued CVTX, received an undisclosed investment from Alpha Token Capital. More Here

Lalo, a NYC-based baby product brand, closed a new equity round with Forecast Labs, a consumer venture group that’s a division of Comcast. More Here

OpenStamp, a Singapore-based provider of a service platform built on the STAMP Protocol, raised an undisclosed amount in Seed funding. The round was led by Animoca Ventures and also included participation from KuCoin Ventures, MH Ventures, VitalTao Capital, Lotus Capital, Brotherhood Ventures, Blue Node Capital, D64 Ventures, Luminescence Capital, Spicy Capital, Halvings Capital, SPEC Capital, and YM Capital. More Here

Blockhouse Digital, a Dallas, TX-based asset management firm specializing in the crypto markets, raised $2M in GP funding. The round saw participation from OTC partner BlockFills, with significant contributions from various angel and VC investors. More Here

Ediphi, a Boston, MA-based provider of an advanced cloud-based estimating solution, raised $12M in Series A funding. The round was led by Norwest Venture Partners. More Here

CountertopSmart, an Austin, TX-based countertop purchasing experience startup, raised $1.75M in Seed funding. The round was led by Nextfront Ventures, with participation from additional investors including its existing investors. More Here

Pandion, a four-year-old Seattle startup that connects e-commerce retailers with a network of over 500,000 final-mile drivers for package delivery across the United States, raised a $41.5 million Series B round led by Revolution Growth, with additional participation from Proof and Sentinel Global as well as previous investors Playground Global, Prologis Ventures, Bow Capital, Telstra Ventures, AME Cloud Ventures, and Schematic Ventures.  More Here

Firestorm Labs, a two-year-old San Diego startup that specializes in building customizable drones for defense and security customers, raised a $12.5 million seed round led by Lockheed Martin Ventures. More Here

Optimo Loan, an MSME (Micro, Small and Medium Enterprises) lending-tech business for rural India, has raised $10 million in seed funding from venture capital firms Blume Ventures and Omnivore. More Here

Coterie, the insurtech MGA simplifying small business insurance, has raised of $27M in new capital investment. The oversubscribed round includes new investment from Hiscox as well as existing investors Intact Ventures, Weatherford Capital, and RPM Ventures among others. More Here

Venture Capital Updates

Y Combinator, led by CEO Garry Tan, is reportedly raising $2 billion across three new funds, offering investors exposure to its startup batches and follow-on investments. The fund structure, requiring backers to invest in all three funds, reflects YC's shift under Tan towards a leaner, more streamlined approach, discontinuing its Continuity fund last year. More Here

1991 Ventures, a new UK based VC focusing on Ukrainian and Central Eastern European startups amidst the conflict with Russia. Led by the Gursky brothers, the £15 million fund aims to tap into the region's untapped talent, joining other Ukrainian-born funds like Roosh Ventures and SMRK in supporting innovative ventures. More Here

King River Capital, Australian venture capital firm blockchain gaming firm Immutable and Polygon Labs have teamed up to launch a $100 million gaming fund. More Here

DNX Ventures, a Japan and U.S.-based VC firm, announced the final close of two new Japan funds, raising a total of approximately 36.5 billion yen (U.S. $243M). Total amount raised for the Japan-focused funds including Japan Seed Fund is approximately 39.5 billion yen (U.S. $263) with a capacity to invest in seed to late stage B2B startups in Japan. More Here

Featured Article

Y-Combinator Guide To Seed Fundraising

A must-read, all-in-one guide for founders looking to raise seed funding for their startups. It answers all your questions like 👇

• Why Raise Money?

• When to Raise Money How Much to Raise?

• Financing Options Convertible Debt Safe Equity

• Valuation: What is my company worth?

• VC or angel investors: Which is the better funding option for startups and why?

• How does one meet and encourage the interest of investors?

• Is crowdfunding a viable option for startup fundraising, and why?

• What key considerations should entrepreneurs keep in mind when preparing for investor meetings?

• How can entrepreneurs negotiate valuation and terms effectively with investors?

• Which documents are crucial for entrepreneurs to provide during due diligence for securing investment?

• What Not to Do While Communicating with Investors…...Read More Here

Startup’s Latest Buzz

Acquisition & Exits

CoreWeave, a seven-year-old startup based in Roseland, NJ, that is building out data centers designed for AI-related computing, is reportedly raising a massive round of primary and secondary shares at a $16 billion valuation, more than double its last round way back in December. More Here

GameSquare Holdings, Inc., a media and technology company focused on connecting brands with Gen Z and Millennials, has announced its decision to voluntarily delist its common shares from the TSX Venture Exchange (TSXV). More Here

Layoffs & Banktuptcy

Barclays layoffs are coming to the financial services company, which reportedly plans to cut hundreds of jobs to reduce operating expenses. More Here

Stellantis, the parent company of Chrysler, laid off around 400 salaried, non-union employees in technology and engineering in the U.S. by summoning them to a mandatory remote work day and then informing them of their termination during the meeting. More Here

Startups & People

Steve Burns, the former CEO of Lordstown Motors, settled with the SEC, agreeing to pay a $175,000 fine and a two-year ban from serving as an officer or director of a public company, for misleading investors about demand for the company's electric pickup truck. Lordstown Motors itself paid $25.5 million to settle the SEC charges. The company later filed for bankruptcy and emerged as Nu Ride Inc., focused on a lawsuit against Foxconn, while Burns launched a new venture, LandX Motors. More Here

Emad Mostaque, founder and CEO of Stability AI, steps down to pursue decentralized AI, leaving interim co-CEOs Shan Shan Wong and Christian Laforte in charge. The move follows Stability AI's struggles, including failed funding attempts and departures of key talent, amid a shift towards revenue growth and focus on transparency in AI governance. More Here

Anthropic, a prominent AI startup, is set to divest an 8% stake once owned by FTX, avoiding Saudi investment due to national security concerns. The sale, valued at over $1 billion, aims to repay FTX customers amid bankruptcy proceedings. Anthropic, backed by tech giants like Amazon and Alphabet, remains open to investment from other sovereign wealth funds, including Mubadala. More Here

Latest In Emerging Tech

The U.S. Department of Justice has sued Apple over alleged monopolistic practices, accusing the tech giant of bending privacy and security measures to serve its financial interests. The complaint highlights issues with App Store restrictions, messaging limitations, and data sharing practices, challenging Apple's portrayal of user privacy as a core value. Apple has responded, defending its innovations and asserting the lawsuit's threat to technological advancement. More Here

OpenAI is making strides into Hollywood with its AI video generator, Sora, aiming to partner with studios and filmmakers. Despite industry concerns over AI's impact on creativity and jobs, OpenAI seeks collaborative dialogue to ensure safe implementation. Competing with tech giants like Meta and Google, OpenAI aims to catch up in the rapidly evolving AI entertainment space. More Here

Venture Daily Digest Picks

• Marc Andreessen's Guide to Finding Product-Market Fit! Read Here

• What Matters Most For Startup Growth? From VP of Growth at Facebook. Read Here

• The problem of AI ethics, and laws about AI By Benedict Evans. Read Here

• Don't Send All 'Your Data To Investors' Too Early In The Process: The Counter-Intuitive Fund-Raising Advice. Read Here

• The Reddits By Paul Graham. Read Here

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That’s It For Today! Will Meet You On Tuesday!
Happy Monday! 🥂

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✍️Written By Sahil R - The Venture Crew