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This week proved once again that the startup world is not uniform when it comes to taking risks.
This week's most interesting startup stories
Image credit: Neurode
While post-acquisition layoffs and controversy following risky decisions aren't entirely surprising, there's more encouraging news on the innovation front.
Team downsizing: Italy-based app company Bending Spoons is set to lay off 75% of the staff at WeTransfer, the Dutch file-transfer startup it acquired in July. This follows job cuts made at other companies it has acquired, including Evernote, Filmic and Meetup.
A twisted view: YC-ed payroll startup Warp was embroiled in controversy and ultimately disavowed one of its X-affiliated accounts, where the company appeared to employ unconventional (and risky) marketing tactics.
Stay calm: Sydney-based Neurode has developed a headband that delivers mild electrical stimulation to the prefrontal cortex to treat ADHD symptoms such as lack of focus. Currently in private beta, the company hopes the wearable device can become an FDA-approved medical device.
Most interesting fundraisers this week
Image credit: Formo
Despite the market being what it is, fundraising is still happening, even if in some cases it is actually a combination of equity and debt.
Fauxmage: Berlin-based food tech startup Formo has raised $61 million in a Series B round to continue expanding its dairy-free cheese production.
REDUCE PAPER: Frankfurt-based startup Qualifyze has raised $54 million in a Series B round that it plans to use to grow, particularly in the U.S., and to add more analytics and AI to its products that help pharmaceutical companies manage their supply chains.
Insurtech: Paris-based embedded insurance startup Neat raised €50 million in debt and equity funding. The Series A round was led by Hedosophia.
Smart cat: Smartcat, a vendor of automated translation tools for enterprises, has raised $43 million in Series C led by Left Lane Capital, which will enable the startup to expand its team and invest in product, marketing, and sales.
Another round: Finally, a Miami-based AI-enabled bookkeeping, accounting and finance startup targeting small and medium-sized businesses has raised $50 million in Series B funding and secured a $150 million credit facility.
This week's most interesting VC and fund news
Image credit: Getty Images
Optionality: London-based venture capital firm Atomico has raised $1.24 billion across two funds: Atomico Venture VI, which invests primarily in Series A rounds, and Atomico Growth VI, which invests in pre-IPO Series B rounds, presumably aimed at more risk-averse limited partners.
UPDATE: Alpha Partners has announced a $153 million third fund that doubles down on a once-novel idea: helping seed investors write $5 million to $10 million checks alongside them, giving them the ability to exercise pro rata rights in later rounds.
Last but not least
Image credit: Bryce Durbin
The US legal environment is more fragmented than it may seem. Startups are learning this the hard way as they find themselves fined or even banned in different states. As TechCrunch's Rebecca Szkutak points out, “Ultimately, state-level regulations need to be factored into founders' business plans as soon as possible, whether that's through investing in compliance software or hiring legal professionals.”