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This week's most interesting startup stories
Even in seemingly crowded categories, new entrants can sometimes climb the ranks, and this includes social media: A new app called “noplace” shot to number one in the App Store as soon as it came out of invite-only mode.
New social app “Noplace” hits #1 in the App Store. Image courtesy of Noplace
This not only confirms users' appetite for new forms of social media, but also shows that it could still be trending in 2024, as French app ten ten did earlier this year. Both apps also show that there's value in revisiting ideas in older technology: Myspace for nospace, walkie-talkies for ten ten.
It's also a reminder that consumer tech can find venture-capital backers. CEO Tiffany Zhong is no stranger to the space: Before launching the company and raising money from investors like Alexis Ohanian's 776 and Forerunner Ventures, she helped Binary Capital source early-stage consumer deals and then founded Pineapple Capital, an early-stage consumer fund.
Find out: Hebbia, a startup that uses generative AI to search large documents and return answers, has raised around $100 million in a Series B led by Andreessen Horowitz, sources told TechCrunch. Ex-Planet: Robinhood has acquired AI-powered research platform Pluto Capital to add new tools and features to its investment app, including real-time portfolio optimization. No Edtech?: Unacademy cuts another 250 jobs as Indian edtech continues to struggle in a post-COVID world. New Adept: Amazon hires Adept co-founder and part of team as it licenses technology. But this AI startup will survive and refocus on “solutions that enable agent AI.” Oasis in crypto drought?: CoinDCX, a leading Indian cryptocurrency exchange valued at $2.1 billion in a 2022 funding round, has expanded internationally through the acquisition of BitOasis, a Middle East and North Africa digital assets platform.
Most interesting fundraising this week
One area of tech that has been particularly promising is the number of cancer-fighting startups and venture funding they are receiving, such as biotech startup Granza Bio, which has raised $7 million in seed funding from Felicis, Refactor, and Y Combinator to advance delivery of cancer treatments.
YC alumni Granza Bio is working on a new approach to delivering immunotherapies. Image courtesy of Granza Bio
Granza Bio just graduated from Y Combinator in Winter 2024, and YC wants to back more startups like the company. YC's Call for Startups (RFS), released in February, included a call for “ways to eradicate cancer.” The main focus of that RFS was startups that could reduce the cost of MRIs, which weren't a perfect answer because MRIs are known to give false positives. So it's notable that the accelerator is actually tackling the fight against cancer from multiple angles, including biotechnology.
Another interesting thing is that even though Felicis is a generalist venture capital firm, it invests 10% to 15% of its capital in biology-specific startups, which is a sign that biotech is becoming mainstream and another reason to keep an eye on new startups emerging in this space.
New Centaur: HR technology is in high demand around the world, including in Japan, where SmartHR raised $140 million in Series E funding after hitting $100 million in annual recurring revenue (ARR). World of Materials: French deep tech startup Altrove raised nearly $4 million to create new materials using AI models and lab automation. Cartpath: Robotics startup Cartken raised $10 million in a recent funding round led by 468 Capital. It also saw demand for small, autonomous robots move beyond curbside delivery and explore indoor use cases. Happy Days: Apiday raises €10 million in Series A funding round to help it strengthen in Europe, where regulatory tailwinds are boosting ESG (environmental, social, and governance) reporting platforms.
The most interesting fund news this week
Climate change: Spanish venture capital firm Seaya Ventures will put €300 million into climate tech through dedicated fund Seaya Andromeda. Swiss made: Forestay, the Swiss fund with a “mostly growth” brand, has raised $220 million to invest in Europe and Israel, with a focus on enterprise and SaaS. Beyond defense: J2 Ventures, led primarily by US military veterans, has raised a $150 million second fund “close to national security” and will also invest in healthcare. Olympic trail: A married couple of former Olympians are looking to raise $50 million to invest in influencer-led consumer brands through their fund Freedom Trail Capital. Deep space: Deep tech venture capital firm Driving Forces is closing down after sole general partner Sidney Scott concluded the environment was too tough for a small fund like his.
Last but not least
The Evolve Bank data breach is sending ripples through the fintech industry, with multiple startups caught up in the turmoil. Yield Street confirmed that some of its clients were affected, as was Wise. Meanwhile, Jason Mikula, author of Fintech Business Weekly, said he received cease and desist letters from the bank amid concerns that affected fintechs may not yet have received details of what information was stolen in the breach.