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There won't be any stories about Founder Mode in this week's newsletter, but the memes will still be there. Instead, we'll bring you the usual startup news, from mega rounds to pivots to new product launches.
This week's most interesting startup stories
Image credit: Bryce Durbin / TechCrunch
When facing bigger rivals, startups often have to think smartly about how they compete, and since there's no right answer, it's no surprise that many less fortunate companies change their minds along the way.
Bright spot: X's closure in Brazil has benefited rival social network Bluesky, which has seen a huge influx of new users since last weekend, especially since it's still far smaller than Meta's Threads and its 200 million monthly active users.
Chat Battles: Anthropic has launched Claude Enterprise, a subscription plan with enhanced management tools and security protections for businesses interested in using its AI chatbot, competing with OpenAI's ChatGPT Enterprise.
Giving up: Shortly after raising $500 million in a Series B round, German AI startup Aleph Alpha is stepping out of the LLM fray and pivoting to AI support with a new product called PhariaAI.
Still going strong: NightCafe doesn't have the name recognition of rival Midjourney, but its AI-powered art-making tool has more than 25 million users, and that's reflected in revenue, with one source telling TechCrunch that NightCafe does $4 million in annual revenue.
Piggyback: HR and payroll software company Paylocity has agreed to acquire corporate spending startup Airbase for $325 million, roughly half of the company's $600 million valuation in 2021. Founder Thejo Kote said Paylocity's size and scale will help Airbase reach a wider audience.
Most interesting fundraisers this week
Image credit: JACK GUEZ/AFP / Getty Images
Raising more capital is another way to stay ahead of the competition, but differentiation, innovation and expansion into new markets are just as important.
Three months later: Safe Superintelligence (SSI), a months-old startup co-founded by Ilya Sutskever of OpenAI fame, has reportedly raised over $1 billion in funding and is valued at $5 billion.
AI Agent: With $50 million in fresh funding, You.com is narrowing its focus: it wants to use AI as a productivity engine to solve complex search queries.
Hospital at home: Doccla, a UK virtual ward startup that helps hospitals manage patients remotely, has raised $46 million to expand into Europe.
Microcapsules: French B Corp cleantech startup Calyxia has raised $35 million in a Series B round to produce an alternative to microplastics, a growing pollution problem.
MENA Fintech: Dubai-based YC alum Ziina raised $22 million in a Series A round to further grow its P2P payments app, which already has 50,000 retail and business customers.
This week's most interesting VC and fund news
Image credit: PruVen Capital
Track record: PruVen Capital, the fintech and insurtech venture firm founded by former Battery Ventures and Citi Ventures VC Ramneek Gupta, has closed its second fund at $378.5 million. Unlike its first fund, which had Prudential Financial as its lead LP, the new fund is backed by others.
Climate mainstreaming: The fourth climate-focused fund raised by Dutch SET Ventures closed at €200 million, double the size of its previous fund. The fund will invest in 20-25 early-stage European startups to make renewable energy more mainstream.
AI Incubator: Venture capital firm Mayfield Fund has allocated $100 million to the newly launched AI Garage, an incubator for ideation-stage founders interested in building “AI teammate” companies.
Last but not least
Image credit: Palantir
Palantir CTO Shyam Sankar has become “Silicon Valley's secret weapon for defense tech startups,” TechCrunch reporter Margaux McCall reported. Sankar was one of the company's first employees, and in 2023 launched a program called First Breakfast. The program doesn't serve breakfast, but it does offer a suite of software tools to help defense tech startups get started.