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Private markets continued to generate the most funding news in the startup world this week, for both companies and funds. But it would be a mistake to forget the public sector. While startups rallied with lawmakers, others gained and lost licenses.
This week's most interesting startup stories
Image credit: Bryce Durbin / TechCrunch
This week was a reminder that, for better or worse, startups need to maintain their licenses and interact with regulators to stay out of trouble.
Bumpy road: Fisker's bankruptcy process hasn't gone smoothly. The bankrupt EV maker is under investigation by the SEC, and American Lease, which is purchasing the remaining vehicles, announced earlier this week that the purchase may not be completed.
Snap: LoanSnap has lost its license to operate in Connecticut, four months after TechCrunch exclusively reported that the AI-powered mortgage startup was facing multiple lawsuits.
Claims Authorization: French unicorn Alain has expanded into Canada, a country that hasn't had a new health insurance company since 1957. The startup plans to employ 50 people in the country.
This week's most interesting fundraisers
Image credit: RiverRockPhotos / Getty Images
Some of the rounds we learned about this week were very large, but they may not be that large considering the problems these startups are tackling and the competitors they face.
Impressive gold: Mineral discovery startup KoBold Metals has raised $491 million of its $527 million target, according to an SEC filing. The company uses AI to uncover data that helps locate cobalt, copper, lithium, and nickel.
Well-supplied: Auger, a company developing AI-powered supply chain tools, has raised a massive $100 million in a seed round. Such a big pay raise can be attributed to Dave Clark, former prominent CEO of Amazon and Flexport. But Auger also has to compete with better-funded rivals.
ProteinGPT: Basecamp Research, a London-based startup unrelated to product management platform Basecamp, has raised $60 million in Series B funding to build “GPT for biology” . The company claims that its base model, BaseFold, outperforms DeepMind's AlphaFold 2 at predicting large, complex proteins.
AMD vs. Nvidia: Cloud infrastructure startup TensorWave wants to provide an alternative to Nvidia hardware for AI computing and has secured a $43 million round with participation from AMD Ventures. The company is based in Las Vegas, where energy costs are lower than many major U.S. cities.
Lifeline: Qantev, a Paris-based startup that sells enterprise software that helps health and life insurance companies process claims using AI, raises €30 million in Series B round led by Blossom Capital has raised funds.
This week's most interesting VC and fund news
Image credit: Diagram
Climate change incubation: Montreal-based venture studio Diagram has expanded into the climate tech space with the launch of its fourth studio fund, Diagram Climate Tech. The fund was oversubscribed and closed at $58 million.
More news: General Catalyst is working on raising up to $1 billion worth of “retention” funding, sources tell TechCrunch.
Balance: NFX laid off four employees (one product lead and three engineers) in September. General partner Pete Flint told TechCrunch that the firm is looking to “reallocate” resources to its investment team.
Last but not least
Image credit: Shield AI. Photo by Rod Lamkey Jr.
Brandon Tseng, co-founder of Shield AI, announced his defense of defense, a week after he and other startup executives huddled with members of the U.S. House Armed Services Committee in an unprecedented hearing in Silicon Valley. He spoke to TechCrunch about technology and the war in Ukraine. Tseng, a former Navy SEAL, is adamantly opposed to fully autonomous weapons.