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This week we look at an AI startup that wants to help people get more creative using video, Kudos, which raised $3 million to eliminate diaper rash, and VCs backing other VCs.
This week's most interesting startup stories
Image credit: Helsing
Investors continue to pour dollars and euros into startups that help defend the world from aggressive nation states. Hellsing, a defense startup that uses AI to improve battlefield decision-making, has raised 450 million euros ($487 million). Part of the money will go to a newly formed organization in Estonia to defend the Baltic states from dangerous neighbor Russia. Hellsing's valuation has jumped to $5.4 billion from $1.85 billion last year, Bloomberg's sources said. Meanwhile, some U.S. venture funds with defense technology strategies are attracting new types of investors, such as military veterans and former Pentagon officials.
Speaking of soaring valuations, the latest data from PitchBook shows that startup prices will hit an all-time high in 2024. Is it time to celebrate the end of the recession? Not really. It turns out that only the best companies are seeing prices rise. Others are still struggling to raise capital or looking for ways to fudge their low valuations.
Turning AI's enemy into a friend: While Hollywood artists may be worried that AI technology will take away their livelihoods, DreamFlare, a startup founded by a documentary filmmaker and ex-Googler, hopes that creators can use AI to make more content and earn better income. The studio helps animation artists develop stories in collaboration with experienced creative teams and distributes the videos through an online platform.
Release your anxiety: Fears of war and the possibility of AI taking over human jobs will only exacerbate the existing mental health crisis. Scribble Journey has created an app to help users explore their emotions through art therapy.
Most interesting fundraising this week
Image credit: Alma / Alma co-founders, from left, Shuo Chen, Assel Tuleubayeva, and Aizada Marat
The United States is facing a shortage of technical and other highly skilled professionals. Importing them from overseas is one solution. But limited availability may not be enough to get a work visa approved by the U.S. Department of State. Immigration lawyers sometimes give wrong advice to individuals looking to work in the U.S. Kyrgyzstan-born Harvard graduate Aizada Marat founded Alma, an AI-powered legal tech startup that speeds up and simplifies the visa process for technologists, founders, and researchers.
Cross-border remittances: African payments startup Nala raised $40 million in a Series A round led by Acrew Capital. The hefty funding suggests that cross-border remittances could be big business.
Data-driven diagnosis: Busy doctors don't always have time to review all the data points in a patient's medical record, which can lead to missed diagnoses. Regard, a startup that just raised $61 million at a $350 million valuation, does this for doctors with the help of AI.
Say goodbye to diaper rash: Is your baby having trouble sleeping? He might not like the feeling of plastic in the diaper's curves. Try Kudos, a $3 million startup that uses 100% cotton for its diaper lining.
The most interesting fund news this week
Image credit: Index Ventures
Index Ventures Raises Again: Big-name funds seem to have no problem raising big amounts of money these days. Index Ventures announced $2.3 billion in new capital. The firm has raised a bit less than its last round, but Index says the amount is appropriate for the current market.
Look up to the stars: Germany-based Alpine Space Ventures has raised $184 million (€170 million) to invest in companies involved in the space industry in the U.S. and Europe.
VC-backed: Kearny Jackson raised its third fund of $65 million in pre-seed and seed B2B SaaS and fintech infrastructure startups. The firm's LPs include Sequoia, Bain Capital Ventures, Menlo Ventures, and Marc Andreessen.
Last but not least
Arianna Huffington has teamed up with Sam Altman to launch a new health coaching startup, Thrive AI Health, which is backed by Huffington's health company Thrive and the OpenAI Startup Fund. The startup offers an AI-powered assistant that encourages people to live a healthier lifestyle. The question, of course, is whether the assistant will be as successful as a human coach in encouraging people to exercise and eat their vegetables. Another question is how much funding Thrive AI Health received to develop its capabilities.