This week in startups saw various acquisitions, layoffs, and notable funding rounds across industries, despite a lack of IPOs. Companies like Mainstreet.com and General Fusion made headlines for their contrasting outcomes. Datadog’s acquisition strategy continues to expand its capabilities, while innovative ventures raise significant capital in longevity and AI sectors.
This week’s edition of Startups Weekly highlights significant movements in the startup ecosystem, packed with mergers and acquisitions, as well as funding rounds of various sizes and stages. These developments come as the system weaves through challenges like customer retention and funding difficulties, though IPOs were notably scarce this week.
In a notable acquisition, Mainstreet.com, a budding fintech from San Jose, has caught the eye of Employer.com, a workforce management powerhouse, which now boasts a valuation exceeding $700 million. This merger might offer hope to founders amid the unsettled market. On a less encouraging note, General Fusion, a Canadian fusion power company, had to lay off a quarter of its workforce despite recent milestones. CEO Greg Twinney indicated funding issues are driving these distressing decisions.
In another shift, Datadog acquired Eppo, a platform specializing in feature-flagging and experimentation. This buy follows closely after they nabbed Metaplane, which focuses on AI-powered observability. Meanwhile, the AI startup 11x experienced a shake-up as co-founder and CEO Hasan Sukkar stepped aside. This change came just as questions about customer retention sprang up earlier this year.
On the business development front, Carta made headlines with their acquisition of SimpleClosure, a startup that aims to simplify the process of winding down businesses—an endeavor that echoes a quest for efficiency in the startup realm. ServiceNow made another strategic move by acquiring Data.World, just a pair of months after their Moveworks purchase, showcasing a focus on enhancing data governance capabilities.
Some potential lifelines are emerging too. Investors could be poised to inject $30 million into the struggling Indian ride-hailing enterprise, BluSmart, with a catch—co-founder Anmol Singh Jaggi’s resignation.
In a somewhat bold liquidity move, Clay, a sales automation startup, has opted to let employees, after a year of tenure, sell shares to existing backer Sequoia, valuing the firm at a hefty $1.5 billion.
Now, shifting gears to the VC and funding space, it’s clear that life-extension technologies are making waves. NewLimit, founded by Coinbase CEO Brian Armstrong, secured a whopping $130 million in Series B funding, all aimed at developing age-reversing therapies.
Finom, a neobank rivaling Qonto, netted around $105 million in funding to support its growth across various European markets. Orca AI, specializing in autonomous navigation for shipping, amassed $72.5 million in its Series A round, reflecting the increasing intertwining of tech and defense sectors.
In cybersecurity, Ox Security added $60 million to its Series B, gearing up for further expansion. Recraft, which recently topped performance benchmarks against DALL-E and Midjourney, raised $30 million—marking a strong presence in the competitive AI landscape.
Meanwhile, the Australian startup Blinq is on a mission to render business cards obsolete, having raised $25 million to pioneer digital alternatives infused with CRM capabilities. WisdomAI, an AI newcomer focusing on enhancing business insights, just wrapped up an unusually large seed round worth $23 million, pointing to the appetite for AI solutions.
Breathe Battery Technologies raised $21 million to bolster software targeting battery performance, and Unblocked garnered $20 million for its AI-powered coding assistant. Finally, Bosch Ventures is channeling its focus to North American deep tech startups through a new $270 million fund.
It looks like the Athens-based VC firm Marathon Venture Capital wrapped things up well by closing its fund with about $84 million in commitments. Partner Panos Papadopoulos hinted at the potential of Greek startups making their mark in global markets as TechCrunch conversed with him about future plans.
In summary, the startup landscape is bustling with activity—amidst acquisitions, layoffs, and funding rounds of various sizes. Companies are trying innovative approaches to navigate through economic challenges, be it through M&As, unique liquidity events, or securing significant venture capital. The trends highlighted this week suggest resilience and creativity in the face of adversity, as startups continue pushing the envelope on technology and business models.
Original Source: techcrunch.com