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Seed funding valuations sprout a bubble
  + stars: | 2023-07-13 | by ( Anita Ramaswamy | ) www.reuters.com   time to read: +3 min
Their need for new cash was nearly three times higher than the available supply last quarter, according to the report. Companies raising seed rounds in today’s market might command higher prices in part because they are better prepared. But it’s unlikely that today’s cohort of seed-stage startups is so markedly superior to predecessors that it warrants record high prices. A newfound focus on seed companies could just be VCs’ latest justification for keeping the tech bubble afloat. Median valuations for venture rounds in startups at all other stages captured by the report have fallen this year relative to their 2022 levels.
Persons: PitchBook, Lauren Silva Laughlin, Sharon Lam Organizations: YORK, Reuters, Venture, National Venture Capital Association, Carta, Tiger Global, Thomson
Recruitbot is a startup that uses AI to analyze and match potential job candidates to open roles. The team has just raised $8.2 million in new seed funding led by Slow Ventures. Some of the features include using AI for automating the search for qualified candidates by scraping data from LinkedIn and with other talent databases. The team got in touch with Sam Lessin, the general partner at Slow Ventures, after many of Lessin's portfolio companies started using RecruitBot for their hiring. Check out the 19-slide pitch deck that Recruitbot used to raise $8.2 million in seed funding: Note: certain proprietary information has been redacted.)
Persons: Jeremy Schiff, Schiff, Recruitbot, Kevin Mahaffey, Sam Lessin Organizations: Slow Ventures, OCA, Freestyle Capital, Parade Ventures Locations: OpenTable
July 7 (Reuters) - AI4Bharat, a start-up backed by Microsoft (MSFT.O), is raising $12 million from venture capital firms Peak XV and Lightspeed Venture to develop artificial intelligence-powered chatbots for Indian languages, according to three people familiar with the matter. Most seed rounds are usually up to $1 million to $2 million. AI4Bharat, Peak XV and Lightspeed did not immediately respond to Reuters' requests for comment. The investment is among the first from Peak XV Partners after rebranding from Sequoia Capital India and SEA following a split with its U.S.-based parent fund last month. Indian AI start-ups have raised $583 million this year, as of June, according to data from Venture Intelligence.
Persons: OpenAI's ChatGPT, Nandan Nilekani, Rudder, Yuvraj Malik Organizations: Microsoft, Lightspeed Venture, Indian Institute of Technology, Infosys, National Payments Corp, XV Partners, Sequoia Capital, SEA, Venture Intelligence, Thomson Locations: Madras, India, Sequoia Capital India, Bengaluru
Alfie Health built an algorithm to create personalized treatment plans for obesity. Alfie Health is jumping in the ring with perhaps the only selling point in healthcare right now that's hotter than weight-loss medications — artificial intelligence. Alfie Health runs as a virtual obesity-care clinic to provide video visits with doctors and health coaches, with individual treatment plans developed using ObesityRx. In June, Alfie Health raised $2.1 million in pre-seed funding led by Y Combinator and Nina Capital. Here's the presentation Alfie Health used to raise $2.1 million.
Persons: Alfie Health, Combinator, Alfie Health's, Alexander Singh, Y Combinator, Nina Capital, Alfie, Singh, Wegovy Organizations: Nina, Goodwater, Phoenix Investment Club Locations: GLP
Reproductive health startup Fertifa has raised $6.3 million in seed funding. A reproductive healthcare startup run by prominent VC investor Eileen Burbidge has raised $6.3 million in seed funding. London-based Fertifa, founded in 2019, provides companies with reproductive health and well-being support for employees facing fertility or sexual health challenges. Burbidge, who was an early backer of fintech bank Monzo as a partner at Passion Capital, took over as CEO at the startup late last year. Other backers include Tiny.vc, EQT Foundation, previous investors Passion Capital and Speedinvest, along with prominent angels like Onfido cofounder Eamon Jubbawy and former Monzo CEO Tom Blomfield.
Persons: Eileen Burbidge, Burbidge, Fertifa, Eamon Jubbawy, Tom Blomfield Organizations: Passion Capital, Meta, Bain Capital, DE, Notion Capital, Triple Point Ventures, EQT Foundation Locations: London, Europe
There are thousands of firms out there, each with their own specialties and varied track records. We've narrowed it down to the best 75 based on data from Crunchbase and the firms themselves. Given that, Insider created the Seed 75 list as a new member to our Seed 100 and Seed 30 lists of the best individual seed investors. Some companies verified the Crunchbase data, some didn't respond but most others supplied us with updated data. What follows is the top 75 seed firms who scored at the top of our weighted scale.
Persons: We've Organizations: Crunchbase Locations: Crunchbase
Silicon Valley is bracing for what it fears will be an "extinction event" threatening the survival of hundreds of startups. Tom Loverro, a investor at 40-year-old Bay Area venture capital firm IVP, has been loudly warning for months on Twitter and in media interviews about a coming "mass extinction event" for startups. The total volume of venture capital investment into US startups has slumped for six consecutive quarters, according to data firm Pitchbook. Even a last-ditch slashing of the startup's prospective valuation — a "down-round," in Silicon Valley parlance — didn't whet investors' appetites. Over the past year, many startups that rely on Silicon Valley funding have been steeling themselves for the slowdown to avoid similar fates.
Persons: , they're, Jennifer Neundorfer, That's, Tom Loverro, Loverro, Consuelo Vanderbilt, Vanderbilt, Cameron Lester, I've, Lester, Linda Ahrens, Ahrens, Unown, " Ahrens, Anna Dittrich, Plastiq, Vincent Harrison, Elad Gil, Steve Brotman, Brotman, Will Hawthorne, VC's, Mike Ryan, Pitchbook's Harrison, Sell, Hawthorne Organizations: Ventures, Sequoia Capital, , Venture, Twitter, United States Federal Reserve, Jefferies, January Ventures, Alpha Partners, Avid Capital, Sugar, Menlo, BulletPoint Network Locations: Silicon, Sequoia, IVP, Valley, Instacart, Navan, Boston, Snowflake, America
www.fractalsoftware.comOf the dozens of Fractal startups that have raised a seed round of funding, about half had Bienville Capital lead the deal, according to people familiar with the matter. Others say they knew what they were getting into with a venture studio, where a large ownership position is standard. Brendan Smialowski/AFP via Getty ImagesThe biggest draw for some Fractal founders was its plug-and-play approach. The founder of one Fractal startup remembered a time when his company was struggling to grow its customer base. That firm is raising a new $325 million fund to provide additional funding to Fractal companies exclusively, according to a person familiar with the effort.
Persons: Fractal's, he'd, they'd, Andreessen Horowitz, Mike Furlong, Nate Baker, Bienville, , Brendan Smialowski, Founders, Angela Lee, Furlong, Baker, Ezra Shaw, who'd, who's, It's, Lee, She's, 8VC, Bain, Jeff Greenberg, Omri Bloch, who've, didn't, Stephanie Palazzolo, Melia Russell Organizations: Flatiron Health, Bienville, Insight Partners, Bienville Capital, Getty, Columbia Business School, Alpha, Midwest, Science, Olympic Club, Tiger Global, Craft Ventures, Founders, Vertical Venture Partners, Zag, Crew Capital, Bain Capital, Universal, Foundation, Fifth Locations: Bienville Capital, New York, Bienville, Indio, AFP, Santa Monica , California, Miami, San Francisco, GreenSpark, Columbia, Barti, Aktos, Bessemer, 8VC
Now, Maza has just raised $8 million in seed funding from investors like Andreessen Horowitz. A year and a half later, and Maza has raised $8 million in seed funding led by Andreessen Horowitz. Customers will have access to Maza's banking services, which include card services, check deposit, and tax services. Down the road, however, the cofounders envision Maza as an "identity" company rather than a banking company, akin to CLEAR in airports, said Arango. Check out the 14-slide pitch deck that Maza used to raise $8 million in seed funding: (Note: certain proprietary information has been redacted.)
Persons: Maza, Andreessen Horowitz, Maza cofounders Luciano Arango, Robbie Figueroa, Siggy, Arango, Anré Williams, Figueroa, Wells Fargo, Seema Amble Organizations: Maza's, LinkedIn, SV Angel, Restive Ventures, Global Founders Capital, American Express National Bank, William Hockey, Plaid Locations: United States, Bilstein, Maza, Wells, Colombia
"I decided where the business is, is in space," Mueller said in an interview with CNBC's "Manifest Space" podcast. Mueller started Impulse Space in 2021 and is building space tugs that can move with cargo to different orbits. So far, Impulse Space has raised $30 million in seed funding from investors such as Peter Thiel's Founders Fund and Lux Capital. But that pedigree doesn't mean Impulse is closed off to other startups in the space space – including rocket makers. Earlier this month Vast Space, which is building a commercial space habitat, selected Impulse to develop the Haven-1 Space Station's propulsion system.
Persons: Elon Musk, Tom Mueller, Mueller, Peter Thiel's, Mira, Morgan Brennan, Merlin, Musk Organizations: SpaceX, Fund, Lux Capital, Tesla, PayPal, TRW, CNBC Locations: Haven
Insider is compiling our 4th annual list of the top VCs funding startups in the creator economy. While the once-on-fire creator economy funding landscape has cooled, many startups are still out raising capital and growing their companies. As the creator economy sheds weight as some startups shut down or consolidate, there is a new wave of startups launching and building in a tighter economy. What names should every founder in the creator economy know? Insider is putting together our fourth annual list of the top VCs who are funding innovative creator economy startups in 2023.
Persons: Goldman Sachs, Alexis Ohanian's Seven Organizations: Morning
London CNN —Prince William believes you can have zero homelessness and he’s using Finland as a case study. Over the next two days, William will travel to each of the six locations to formally kickstart the program. Over the next two days, William will travel to each of the six locations to formally kickstart the program. William has long used his platform to spotlight homelessness, ever since his mother, Princess Diana, first took him to homeless shelters as a child. Last year, William attempted to go undercover on the streets of London and sell The Big Issue to “experience the other side and see what it was like to be a Big Issue vendor,” he wrote in the magazine afterwards.
Persons: London CNN — Prince William, Prince, , , Wales, ” Matt Downie, Princess of Wales, William, ’ ” William, Andrew Parsons, Princess Diana, Diana’s Organizations: London CNN, , Crisis, Royal Foundation, British, Sunday Times, CNN’s Royal Locations: Finland, Wales, Kensington, London
AI startups raised $60 billion last year and investors have continued to pile in on the tech in 2023. Below are 20 pitch decks used by European startups deploying AI in everything from health to property. V7Generative AI, media, and designThis startup uses generative AI to speed up the property-buying process. This AI startup helps Big Tech firms compress videos while maintaining quality. This AI startup helps firms like TrueLayer and CurrencyCloud meet their revenue targets.
Persons: Sam Altman, Elon Musk, Andreessen Horowitz, Nat Friedman, Alberto Rizzoli, Simon Edwardsson, Iris Organizations: Morning, Investment, Venture, Insight Partners, Ventures, Google, Creative Fabrica, Big Tech, Health, Microsoft, Enterprise, Ikea, Twitter, CurrencyCloud Locations: Temasek
Trezy, a fintech startup that helps small businesses manage cash flow, has raised $3.3 million. Trezy, a fintech startup that uses AI to help small businesses manage cash flow, has raised $3.3 million. Trezy also automatically identifies and categorizes payments while also tracking cash position in real-time as well as monitoring unpaid invoices. In effect, Trezy's offering is designed to remedy the often opaque world of accounting and financial planning for small business owners. The startup has raised $3.3 million in seed funding in a round led by Seedcamp and Playfair Capital, with participation from Kima Ventures.
Persons: Trezy, Quentin Lacointa, Seedcamp, Lacointa Organizations: Playfair, Kima Ventures, SME Locations: Seedcamp, Paris, Amsterdam, Netherlands
STAT Health sells an in-ear wearable that patients can use 24/7 to track blood flow. So when Lee's elderly father began having repeated fainting sessions, Lee turned to in-ear technology to help solve the problem. His brainchild is STAT Health, an 24/7 in-ear wearable that measures blood flow to the head to better understand symptoms such as dizziness, brain fog, headaches, fainting, and fatigue that occur while standing. STAT Health's in-ear wearable. The wearable was clinically tested at Johns Hopkins University and was shown to predict fainting in users minutes before it happens.
Persons: Long, Daniel Lee, Lee, Paul Jin Organizations: Health, J2 Ventures, BonAngels Venture Partners, STAT Health, Johns Hopkins University Locations: Bose
U.K. banking titan HSBC unveiled a new HSBC Innovation Banking unit Monday, as it seeks to push into the technology sector following its eleventh-hour rescue of the U.K. subsidiary of failed Silicon Valley Bank (SVB) in March. HSBC acquired the London-based SVB unit for £1 after its parent company suffered a run on its assets fueled by customer fears over the bank's solvency. SVB was one of several U.S. and European lenders that met their downfall earlier this year as broader turmoil rattled the global banking sector. The U.K. government and Bank of England facilitated the purchase in a bid to protect deposits, as Britain separately struggles to retain its position as an international tech capital. Some have questioned whether traditional financial institution HSBC is well placed to take over the legacy of SVB and finance tech-focused startups and small businesses.
Persons: SVB, Ian Stuart, CNBC's Arjun Kharpal Organizations: HSBC, HSBC Innovation Banking, Bank, Bank of England Locations: London, Britain
Its research, company officials hope, could lead to better, more effective drugs — and hefty profits. Varda Space industriesHow it worksVarda’s vision is straightforward: The company’s capsule will launch with an experiment already on board. Varda Space IndustriesDrugs in spaceMuch of the legwork for Varda’s drug experimentation can be done on the ground. The exorbitant price tag of drug research is often passed on to consumers in the form of eye-popping prices, which frequently draws critical headlines. “You’ll see like this entire ecosystem coming up to create this fertile ground for commercialization of space,” Bruey said.
Persons: El, Varda, “ It’s, , Will Bruey, ” Varda, what’s, Merck, Keytruda, Varda’s, Covid, that’s, Gabe Ramirez, ” Bruey, Elon Musk, Peter Thiel, “ I’ve, ” Asparouhov, Asparouhov, , who’s, You’re, Nicholas Cialdella, Bruey, Jon Barr, Mark Herbert, there’s, Eric Lasker, ” Lasker, Varda isn’t, It’s, Paul Reichert, Merck hasn’t, Reichert, Herbert Organizations: El Segundo , California CNN, Citigroup, Varda Space Industries, SpaceX, Vandenberg Space Force, Big pharma, Merck, Bristol Myers Squibb, ISS, Laboratory, Space Station, Rocket, CNN, NASA, Company, Founders Fund, PayPal, Pharmaceuticals, Fortune, Space Industries, US Air Force, Utah Test, pharma, , Congressional, International Locations: El Segundo , California, California, Los Angeles, Delian, Salt Lake City,
George Clinical declined to comment. The private equity firm has entered a deal to buy most of George Clinical, the clinical research organisation said in December, adding the transaction was subject to FIRB approval. George Clinical did not disclose a sale price but said its parent, the George Institute, a medical research group, would retain an undefined stake. The George Clinical deal would involve the holding of healthcare and patient data which is considered sensitive in Australia. Hillhouse has offered to ensure data remains onshore and not be shared overseas, the people said.
Persons: George Clinical, Hillhouse, Zhang Lei, George, George Clinical's, Scott Murdoch, Kane Wu, Sumeet Chatterjee, Christopher Cushing Organizations: Hillhouse Capital, Foreign Investment, Board, of, Treasury, George Institute, Yale University, Tencent Holdings, HK, JD.com Inc, Baidu Inc, Koninklijke Philips NV, Thomson, & $ Locations: HONG KONG, Beijing, Hong Kong, Singapore, London, United States, Australia, China, Refinitiv, Netherlands, Asia, Pacific, Sydney
Yuvo wants to help the 1,400 Federally Qualified Health Centers in the US grow revenue and capacity. His startup, Yuvo, helps community health centers participate in value-based programs from insurance companies, which rewards health care providers with incentive payments for the quality of care they give people. As a middle man between the insurance providers and the health centers, Yuvo opens up access for these health centers to participate in the programs by assuming the risk involved in some of these contracts. From the success of the program, Yuvo added five other health centers in New York and Ohio, said Herrera. "We can double the revenue of health centers for many patients and that's game changing for an organization," said Herrera.
Persons: Yuvo, Cesar Herrera didn't, Herrera Organizations: Health Centers, Mastry Ventures, Federally, Health Center, AV8 Ventures, New York Ventures, HLM Venture Partners, VamosVentures, Social Innovation Fund Locations: NY, Detroit, New York, Ohio
Silicon Valley Bank UK will continue to serve startup businesses from "seed funding to IPO," the chief executive of its new owner, HSBC UK, said Tuesday. "We're going to protect what we've got," Ian Stuart told CNBC's Arjun Kharpal at the Money20/20 fintech conference in Amsterdam. "We are going to keep it ringfenced within our own ringfenced bank, it will have its own board, it will have its own risk policies, we are going to protect what it's got today." HSBC UK bought the London-headquartered subsidiary of Silicon Valley Bank for £1 ($1.21) in March after its U.S. parent company collapsed. Despite not having a major customer base in the U.K., hundreds of founders and VCs said the bank's failure would be highly damaging to the tech sector, and the government stepped in to facilitate a deal over the course of a weekend.
Persons: we've, Ian Stuart, CNBC's Arjun Kharpal, it's, VCs Organizations: Valley Bank, HSBC, HSBC UK, London, Silicon Valley Bank Locations: Amsterdam, Silicon
Cross-border payments startup Keeta has raised $17 million in fresh funds. The seed round was backed by an array of investors including ex-Google CEO Eric Schmidt. Cross-border payments startup Keeta has raised $17 million in a seed funding round backed by an array of investors including former Google CEO Eric Schmidt. We want to make it just as easy for a manufacturer in Indiana to send $200,000 to a vendor in Germany," Keeta CEO and founder Ty Schenk told Insider. The company's $17 million in funding partially comes from former Google CEO Schmidt alongside other, unnamed investors.
Persons: Eric Schmidt, Ty Schenk, Wise, Schmidt, Schenk, We've Organizations: European Union Locations: The California, Indiana, Germany, Canada, Mexico, Brazil, United Kingdom
The couple behind Crumbs Bake Shop said they don't regret selling it even though it eventually failed. The couple bought the Crumbs brand back again seven years after it went bankrupt. Gus Lubin / Business Insider"We watched from the sidelines as the business suffered," Jason told Insider. After Crumb's collapse, Jason started a real estate brokerage that he operated for three years. Jason said he enjoyed his WeWork stint, but their cupcake business was always at the back of the couple's minds.
Persons: , Jason, Mia Bauer, Gus Lubin, Mia, WeWork Organizations: Service, New, Girls Scouts, Fischer Enterprises Locations: New York, WeWork
The state of New Jersey offers a unique program that allows startups in the state to sell those losses for cash. To date, TrueFort has pulled in $20 million through a New Jersey program for startups. Those companies can then deduct those losses from their taxable income, cutting the amount of money they pay in taxes. The NOL program is especially popular among biotech businesses like Lisata, which are characterized by large R&D expenses and unpredictable paths to profitability. The NOL program is part of a suite of programs designed to support New Jersey startups.
Persons: Sameer Mahorta, TrueFort, Malhorta, David Mazzo, Mazzo, Lisata, Mahorta Organizations: Partners, Shasta Ventures, New, New Jersey Economic Development Authority, state's Technology, Bank of America, NOL, Garden State Locations: New Jersey, Weehawken, Silicon, Garden
A former Louisiana secretary of health is building a startup to get families primary care at home. Nest Health landed $15 million in seed funding in May from 8VC and Blue Venture Fund. Check out the pitch deck that Nest used to get funds for its expansion in New Orleans and beyond. For four years, Dr. Rebekah Gee served as the secretary of the Louisiana health department. Here's the pitch deck Nest Health used to land $15 million.
Persons: Rebekah Gee, Gee, 8VC, Annie E, she's Organizations: Health, Blue Venture, Blue Venture Fund, Casey Foundation Locations: Louisiana, 8VC, New Orleans, Gee
BlackRock CEO Larry Fink said the firm is spending a lot of time analyzing artificial intelligence. The firm's experts believe AI will increase productivity by 30%, Fink said on Wednesday. A BlackRock team called AI Labs that works on natural language processing and other areas. If AI can meaningfully increase productivity, Fink said, then "you don't have to own just these AI companies. Bank of America research analysts have called AI a "baby bubble" for the investment mania around the tech.
Persons: Larry Fink, Fink, " Fink, He's, Deutsche Bank CEO Christian Sewing, OpenAI's ChatGPT, ChatGPT, Catalyst, Andreessen Horowitz Organizations: BlackRock, Deutsche Bank, Deutsche Bank CEO Christian, of America Locations: BlackRock, New York, Palo Alto , California, Edinburgh, Scotland
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