Yahoo Acquired Instagram's Co-founders Startup & Intel Chip Making Business Faced $7 Billion Losses

👋 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 President Garry Tan criticizes proposed "right to disconnect" bill, calling it "nonsense" on Twitter.

• Yahoo acquires Artifact, an AI-powered news app by Instagram co-founders Systrom and Krieger.

• 200 musicians, including Billie Eilish, Jonas Brothers, and Pearl Jam, urge tech firms to respect artists' creativity, opposing AI tools using artists' works without permission.

• Intel's chip-making division faced $7 billion in operating losses in 2023.

• Meta denies giving Netflix access to private Facebook messages, clarifying Netflix only had access for sharing what users were watching. Concerns arise over data privacy practices and potential abuse.

• Featured Article : Are You Working On A 'Tarpit Idea?'

• Today’s Poll: Importance of including financial model in deck for raising pre-seed funding?

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Startup Funding Updates

Modal, a San Mateo, CA-based skills development platform for data and analytics professionals, raised $25m in Series A funding. The round was led by Left Lane Capital and Ensemble VC with participation from Signalfire and Learn Capital. More Here

Warwick Acoustics, a Nuneaton, UK-based developer of in-car electrostatic speakers, raised £7M in funding. The round was led by Mercia Ventures with participation from NFU Mutual and a range of private investors. More Here

Quadratic Growth, a Boulder, CO-based data science spreadsheet solution provider, raised $5.6m in seed funding. The round was led by GV with participation from Catapult Ventures, Betaworks, The Fund Rockies, and angel investors. More Here

HealthArc, a Hackensack, NJ-based company which specializes in virtual healthcare, raised $5M in Growth funding. The round was led by ScOp Venture Capital, with participation from Original Capital, Dream Capital, and Correlation Ventures. More Here

Onego Bio, a Finnish startup, has developed a patented fungal fermentation technology to produce an egg white protein called Bioalbumen at competitive prices and with a 90% smaller environmental footprint compared to chicken eggs. It has secured $40 million in Series A, Japanese-Nordic venture capital firm NordicNinja led the investment with participation from equity investors Tesi and EIT Food, existing investors Agronomics, Maki.vc, Holdix and Turret and a group of strategic partners. More Here

Ailytics, a Singapore-based B2B heavy industry software startup which utilises scenario-based AI-powered video analytics solutions, raised US$2.7M in Pre-A funding. The round was led by Tin Men Capital, with participation from Aurum Investments, AngelCentral, and other strategic investors. More Here

TechGrid (aka SecurEdge Networks), a Charlotte, NC-based company offering a business platform for technology service providers (TSPs), raised $9.2M in Series A funding. The round was led by Bellini Capital. More Here

BurnBot, a San Francisco, CA-based company providing mechanized vegetation management and fuel treatment solutions, raised $20M in Series A funding. The round was led by ReGen Ventures, with participation from Toyota Ventures, AmFam Ventures, Convective Capital, Blue Forest Asset Management, Skip Capital, Overture Ventures, Lowercarbon Capital and Pathbreaker Ventures, along other investors. More Here

Supersimple, a Tallinn, Estonia-based provider of an AI-native data analytics platform, raised $2.2M in Pre-Seed funding. The round was led by Tera Ventures with participation from Specialist VC, Tiny VC and angel investors. More Here

Facewhite Co., Ltd., a Tokyo, Japan-based company involved in planning and production of Chinese-Japanese coproduction film projects, raised an undisclosed Pre-A financing round from Hanabara. More Here

Proxima AI, a NYC-based data intelligence software company, closed a $12m Series A funding. The round was led by Mucker Capital with participation from Aglae Ventures (family office of LVMH founder), Great Oaks Venture Partners, Data Point Capital, Broadway Venture Partners, FirstLook Partners and Connexa Capital. More Here

Hailo, a Tel Aviv, Israel-based chipmaker of edge artificial intelligence (AI) processors, raised $120m in extended series C funding. The new funding was led by current and new investors including the Zisapel family, Gil Agmon, Delek Motors, Alfred Akirov, DCLBA, Vasuki, OurCrowd, Talcar, Comasco, Automotive Equipment (AEV), and Poalim Equity. More Here

Melt Pharmaceuticals, a Nashville, TN-based clinical‑stage pharmaceutical company, raised $24M in Series B Preferred Stock financing. The company intends to use the funds to support the further development of MELT-300, including the MELT-300 Phase 3 program. More Here

Juniper Biomedical, a Worcester, MA-based medical device company, received $3m in funding. The company completed a $2M Seed financing led by Auroral Holdings, with participation from Atma Capital, Hub Angels, Beacon Angels and other private investors. More Here

EarliTec Diagnostics, a Decatur, GA-based medical device company, raised $21.5M in Series B funding. The round was led by Nexus NeuroTech Ventures and Venture Investors Health Fund. More Here

Seso, a San Francisco, CA-based provider of a workforce management platform for agriculture, raised $26M in funding. The round was led by BOND with participation from Index Ventures, NFX, SV Angel, and other investors. More Here

Praia Health, a Seattle, WA-based digital health company, raised $20M in Series A funding. The round was led by Frist Cressey Ventures and backed by SignalFire, Epsilon Health Investors and Providence Ventures. More Here

Aidium, a Boulder, CO-based provider of mortgage technology solutions, raised $19M in Series A funding. The round was led by PeakSpan Capital. More Here

PrismaStake, a Melbourne, Australia-based decentralized finance company, raised $6M in Seed funding. The backers were not disclosed. More Here

Sparxell, a Cambridge, UK-based developer of sustainable, plant-based pigments, raised $3.2M in funding. Backers included Circular Innovation Fund, L’Oréal, Future Communities Capital, PDS Ventures, Katapult, Joyance Partners and SNØCAP VC. More Here

Tonic App, a Porto, Portugal-based digital health startup, raised €10.85m in Series A funding. The round was co-led by BlueCrow Capital and Iberis Capital with participation from Vesalius Biocapital III, Armilar Venture Partners, Portugal Ventures, Shilling VC, and FSNB Health & Care. More Here

Newsletter might be interesting to you….

Venture Capital Updates

Y Combinator President Garry Tan has taken to Twitter to criticize a California lawmaker's proposed "right to disconnect" bill, accusing him of "spreading nonsense." This latest clash between Tan and Assembly member Matt Haney reflects the tension between worker rights efforts and the intense hustle culture of the tech startup world. Tan's combative rhetoric towards San Francisco officials has raised concerns about harming democratic discourse. More Here

Paradigm, a crypto fund founded by Coinbase co-founder Fred Ehrsam and former Sequoia partner Matt Huang, is looking to raise $750 million-$800 million fund. The outfit most recently closed a $2.5 billion fund back in Nov. 2021, before the crypto landscape turned bleak. More Here

The Autism Impact Fund (AIF), the first VC fund focused on autism solutions, recently closed its inaugural $60 million fund to invest in startups addressing various aspects of autism spectrum disorder. With a diverse portfolio spanning life sciences, tech-enabled services, and now expanding into broader mental health solutions, AIF aims to drive innovation and returns in this underserved space. More Here

Grafine Partners, a NYC-based private investment firm that invests in new firms led by private equity investors, closed its inaugural strategy, Grafine Capital I and parallel vehicles, with approximately $600m in total capital commitments. More Here

Featured Article

Are You Working On A 'Tarpit Idea?'

(These ideas are deceptive in appearance and present themselves with a disconcerting ease as obvious, until one wonders why no one has solved them before…)

In the search for startup ideas, it often happens that founders come across some seemingly obvious and simple ideas. These are ideas that seem great at first, but end up being a major drain on your time and resources. You might be thinking what’s the difference between a bad idea and a Tarpit idea?

The only difference between a bad idea and a Tarpish idea is that you would know when to stop pursuing a bad idea. A Tarpit Idea is identified a little bit too late - when money is already spent on developing it. Looks scary, right?

Most founders fall under the Tarpish Ideas trap - assuming it to be a good idea. . In our yesterday’s newsletter, we have shared about the common "tar pit" ideas that founders often pivot into and away from, and provide some tips on how to avoid them..…Read More Here

Startup’s Latest Buzz

Acquisition & Exits

Yahoo has acquired Artifact, the AI-powered news app created by Instagram's co-founders Kevin Systrom and Mike Krieger, with plans to integrate Artifact's personalization technology into Yahoo's products, including the Yahoo News app. Artifact will cease operating as a standalone app, while Systrom and Krieger will work with Yahoo in an advisory capacity during the transition. More Here

Accenture (NYSE: ACN) is to acquire Intellera Consulting, a Rome and Milan, Italy based consultancy firm operating in the public administration and healthcare sectors. More Here

Remote, a San Francisco, CA-based leader in building, managing, and supporting globally distributed workforces, completed the acquisition of Easop, a NYC-based compliance solution for businesses with international talent to grant and manage equity to their teams across 70+ countries. More Here

SunFireMatrix, Inc., a NYC-based software and tech-enabled services platform serving the insurance distribution and health plan markets, has been acquired by funds managed by KKR. More Here

Layoffs & Banktuptcy

Citigroup will lay off 430 employees across different divisions in New York, The layoffs will impact 363 employees of the lender's primary banking unit, Citibank. Workers in the technology and broker-dealer arm will also be affected, the filings showed. More Here

Identiq, a six-year-old Israeli cybersecurity startup, is laying off 20 of its 45-member staff. More Here

The Boca Raton, Fla., telecommunications company files for Chapter 11 bankruptcy after several telecom firms filed in 2023. More Here

Eiger BioPharmaceuticals, Inc. (Nasdaq:EIGR) announced that it and its direct subsidiaries have filed voluntary petitions for chapter 11 protection under the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas. More Here

Startups & People

Rubrik, a data cybersecurity company, filed for an IPO after raising over $500 million as a private company. The company has transitioned from perpetual licenses to a subscription model, boosting recurring revenue and gross margins but facing high losses. Rubrik's IPO could signal a warming IPO market for tech companies. More Here

X appoints Kylie McRoberts as Head of Safety and Yale Cohen as Head of Brand Safety and Advertiser Solutions, aiming to bolster safety efforts amidst concerns over hate speech and terrorist content. McRoberts becomes the third person to hold the position in under two years, tasked with addressing challenges since Elon Musk's tenure at the company, formerly known as Twitter. More Here

A group of 200 renowned musicians, including Billie Eilish, the Jonas Brothers, and Pearl Jam, signed an open letter urging tech companies to not undermine human creativity with AI music generation tools that train on artists' works without permission. The letter expresses concern over the potential catastrophic impact on musicians' livelihoods and the music ecosystem, calling for protection against the predatory use of AI to mimic and replicate artists' voices and styles. More Here

Latest In Emerging Tech

Anthropic researchers have discovered a new "jailbreak" technique called "many-shot jailbreaking" that can convince large language models (LLMs) to provide inappropriate responses, such as instructions on bomb-making, by priming them with dozens of less-harmful questions first. This vulnerability arises from the increased context window of modern LLMs, allowing them to learn from multiple examples within the prompt. Anthropic has shared their findings with the AI community and is working on mitigation strategies, highlighting the ongoing challenge of AI security in the face of evolving exploits. More Here

Meta is denying claims that it gave Netflix access to users' private Facebook messages, stating that Netflix only had access to allow users to share what they were watching through the Netflix app directly to friends' inboxes. However, the level of access granted to Netflix through APIs raises questions about data privacy practices and the potential for abuse, even if unintended. The court filing also reveals Meta's close relationship with Netflix, including cutting Facebook Watch's budget to avoid competing with the streaming giant. More Here

TikTok is expanding its dedicated STEM feed curating educational content to Europe amidst scrutiny over harmful effects on minors. The move aims to position TikTok as an educational platform, countering criticisms with partnerships ensuring appropriate and reliable STEM content for young users. More Here

Intel's chip-making division faced $7 billion in operating losses in 2023, exacerbated by revenue decline and outsourcing to competitors like TSMC. With investments in ASML's EUV technology and plans to spend $100 billion on chip foundries, Intel aims to break even by 2027, securing government funding and securing Microsoft as a foundry customer. More Here

Venture Daily Digest Picks

• How to build and lead a world-class startup team by BVP Venture. Read

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

• Who cares about tech regulation? Read

• ​AI in the Hands of Software Buyers By Tomasz Tunguz. Read

• Five founder lessons on building resilience and bouncing back from rejection. Read

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✍️Written By Sahil R - The Venture Crew