Startups Weekly: It’s Buying Season for Acquisitions and Funding

This week in startups included several high-profile acquisitions and funding rounds, highlighting a busy buying season. Companies like Cellebrite, IBM, and AMD made strategic purchases, while major fundraising events saw billions raised, reflecting a booming market. However, challenges remain, including layoffs and security breaches in some startups.

Welcome to your weekly dive into the fast-paced world of startups. This week was certainly bustling, highlighted by a flurry of acquisitions and fundraising news, from stealth ventures to well-known names in the industry. It’s an exciting time as companies seize the opportunity to expand or boost their capabilities.

Several acquisitions caught the eye this week. For instance, Cellebrite, an Israeli phone unlocking firm, made waves by acquiring mobile testing startup Corellium for a hefty $170 million. This deal also included a $20 million equity conversion at closing, showcasing a smart investment in mobile technology.

Meanwhile, IBM added to its portfolio by snagging Seek AI, an AI platform that enables users to interact with enterprise data using natural language. This move is set to integrate Seek AI’s technology into IBM’s Watsonx AI Labs, which is already generating buzz in NYC’s startup scene.

Collibra, a data governance platform, got in on the action as well, acquiring Raito for an undisclosed amount. The latter had previously raised $4 million to assist businesses in managing data access effectively. Both companies hail from Brussels, underlining the continent’s growing tech scene.

AMD also made headlines, acquiring stealth AI startup Brium. The deal appears to be a strategic step to challenge Nvidia’s stronghold in AI hardware, indicating fierce competition in the tech landscape.

Looking at the data realm, Snowflake disclosed its plans to purchase Crunchy Data, which develops tools for building with Postgres. Though the cloud platform opted to keep valuation details under wraps, insiders are estimating the deal might be around $250 million.

In a more somber turn, Airtime, co-founded by Phil Libin, announced layoffs impacting dozens of workers as it prepares for a new “season.” Previously known as mmhmm, the video startup raised close to $135 million in various funding rounds—indicating potential struggles ahead.

On a security note, Indian grocery startup KiranaPro confirmed a nasty hack hit last May, resulting in the total wipe out of its data—a chilling reminder of vulnerabilities in the tech space.

Switching gears, the ongoing legal drama in the HR tech sphere continues as Deel accused rival Rippling of dubious hiring practices. Rippling, not to be outdone, hit back with its amended complaint related to corporate espionage claims against Deel.

Money move alert! This week saw plenty of cash flow into both notable and up-and-coming startups. Defense tech company Anduril raised a jaw-dropping $2.5 billion in a Series G round, marking a doubling of its valuation to $30.5 billion – a massive leap in the space.

AI startup Anysphere, known for its AI coding assistant Cursor, bagged $900 million, nudging its valuation to nearly $10 billion. Sources report that its recurring revenue has crossed the $500 million mark—definitely a company to watch.

Elon Musk’s Neuralink brought in a solid $650 million in a Series E round at a pre-money valuation of around $9 billion. Meanwhile, Singapore’s Bolttech secured $147 million in its Series C, reaching a valuation of $2.1 billion, diving deeper into embedded insurance.

Over in Israel, Speedata, a chip firm pitted against Nvidia, raised $44 million for its Series B, developing an analytics processing unit aimed at supercharging AI workloads. In other international moves, Irish fintech Nomupay locked down $40 million for expansion efforts in Asia—and acquisitions could be on the horizon for them.

Obvio, which utilizes AI to monitor unsafe driving via cameras on stop signs, raised $22 million in its Series A round.

And just to put things in perspective: between February and May, North American AI startups raked in an eye-popping $69.7 billion across nearly 1,530 deals. In contrast, Europe and Asia saw $6.4 billion and $3 billion, respectively—this data paints a vivid picture of where much of the venture capital is heading these days.

Finally, industry investor Elad Gil is casting a keen eye on businesses that he’s betting AI can help revamp, getting in on the trend before it peaked. His early investments in AI startups like Perplexity and Harvey predated the clamor that’s currently engulfing venture capital.

In summary, this week was all about acquisitions and significant funding rounds in the startup sphere. Companies are not just buying but also securing their foothold in competitive markets, with some laying off staff amid restructuring efforts. The valuation leaps from some firms reflect an exciting future for tech, especially within AI and data-focused sectors, as investments continue pouring in.

Original Source: techcrunch.com