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At Newnex, we are constantly focused on finding ways to support startups and investors in scaling both businesses and investments successfully. To help with this, we’ve created a comprehensive checklist designed to guide startup founders through the various stages of growth: pre-seed, seed, Series A, and Series B. Each stage comes with its own unique set of priorities, and this checklist offers a clear, structured roadmap to help founders and investors stay focused on the specific goals that matter most at each stage of scaling. It's a practical tool to ensure a single-minded focus on driving growth and achieving sustainable success. Pre-Seed Stage (Idea Validation &amp; Early Traction) 1. Foundational Setup&nbsp;&nbsp;- Establish the core founding team (complementary skills, shared vision).&nbsp;&nbsp;- Validate problem-solution fit with potential customers.&nbsp;&nbsp;- Create a minimum viable product (MVP) to test market demand.&nbsp;&nbsp;- Legal structure: Incorporate the company, set up equity distribution (cap table). 2. Customer Discovery&nbsp;&nbsp;- Identify the target market and early adopters.&nbsp;&nbsp;- Conduct user interviews and surveys to validate the core assumptions.&nbsp;&nbsp;- Define key value proposition and core product features.&nbsp;&nbsp;3. Market Research &amp; Product Testing&nbsp;&nbsp;- Research competitors and market dynamics.&nbsp;&nbsp;- Gather feedback through MVP iterations.&nbsp;&nbsp;- Develop a go-to-market strategy (initial channels, messaging). 4. Financial Planning&nbsp;&nbsp;- Set up basic accounting and financial tracking.&nbsp;&nbsp;- Establish a low burn rate; bootstrap as much as possible.&nbsp;&nbsp;- Secure pre-seed funding through friends, family, and angels. 5. Hiring &amp; Culture&nbsp;&nbsp;- Hire the initial core team (keep it lean).&nbsp;&nbsp;- Set the foundation of your company culture, values, and mission.&nbsp;&nbsp;6. Metrics to Focus On&nbsp;&nbsp;- Customer validation metrics (number of early users, feedback).&nbsp;&nbsp;- Product-market fit signals (high engagement, repeat users).&nbsp;&nbsp;- Basic financial metrics (burn rate, runway). Seed Stage (Product-Market Fit &amp; Early Growth) 1. Product-Market Fit&nbsp;&nbsp;- Continue iterating on the product based on customer feedback.&nbsp;&nbsp;- Refine your value proposition and product to fit the market’s needs.&nbsp;&nbsp;- Increase product adoption and retention with your target users. 2. Revenue &amp; Monetization&nbsp;&nbsp;- Develop early revenue models and pricing strategy.&nbsp;&nbsp;- Test your monetization channels (paid subscriptions, freemium, etc.).&nbsp;&nbsp;- Start tracking your customer acquisition cost (CAC) and lifetime value (LTV). 3. Team Expansion&nbsp;&nbsp;- Begin hiring additional team members (marketing, sales, product, engineering).&nbsp;&nbsp;- Solidify company culture and onboarding processes.&nbsp;&nbsp;- Build a core leadership team to delegate key functions (marketing, product, sales). 4. Marketing &amp; Distribution&nbsp;&nbsp;- Scale go-to-market strategies that are working (ads, SEO, content marketing, partnerships).&nbsp;&nbsp;- Focus on customer acquisition and building brand awareness.&nbsp;&nbsp;- Build out early marketing and sales teams. 5. Investor Relations&nbsp;&nbsp;- Develop and maintain relationships with potential investors for future rounds.&nbsp;&nbsp;- Prepare your pitch and fundraising materials (deck, financials, roadmap).&nbsp;&nbsp;- Raise seed funding, ensuring you have enough runway (12–18 months). 6. Metrics to Focus On&nbsp;&nbsp;- User growth and engagement (acquisition, activation, retention).&nbsp;&nbsp;- Key financial metrics (runway, CAC, LTV).&nbsp;&nbsp;- Product stickiness (user retention, daily/weekly/monthly active users). Series A Stage (Scaling Product &amp; Expanding Market) 1. Scaling Operations&nbsp;&nbsp;- Focus on scaling product development and operational processes.&nbsp;&nbsp;- Invest in backend infrastructure to handle increased customer demand.&nbsp;&nbsp;- Refine and improve the core product based on deeper customer data insights. 2. Customer Acquisition &amp; Growth&nbsp;&nbsp;- Expand your customer acquisition channels (ads, partnerships, outbound sales).&nbsp;&nbsp;- Focus on automating and optimizing the sales process.&nbsp;&nbsp;- Develop sophisticated user onboarding and customer success strategies. 3. Revenue Growth &amp; Unit Economics&nbsp;&nbsp;- Double down on monetization strategies and optimize revenue streams.&nbsp;&nbsp;- Focus on improving unit economics (reduce CAC, improve LTV).&nbsp;&nbsp;- Expand pricing strategies to capture more value from different customer segments. 4. Team &amp; Culture Expansion&nbsp;&nbsp;- Hire for scaling teams: operations, engineering, marketing, customer support.&nbsp;&nbsp;- Develop clear organizational structures and management hierarchies.&nbsp;&nbsp;- Focus on leadership development and building middle management layers. 5. Brand Building &amp; Market Positioning&nbsp;&nbsp;- Invest in brand development (PR, content marketing, social proof).&nbsp;&nbsp;- Build a strong narrative around your brand and mission.&nbsp;&nbsp;- Penetrate new markets or expand offerings to new geographies. 6. Fundraising &amp; Investor Communication&nbsp;&nbsp;- Raise Series A funding (target 18–24 months runway).&nbsp;&nbsp;- Keep communication clear and regular with current and prospective investors.&nbsp;&nbsp;- Align funding with clear scaling goals (new hires, product growth, market expansion). 7. Metrics to Focus On&nbsp;&nbsp;- Revenue growth (MRR, ARR).&nbsp;&nbsp;- Customer acquisition efficiency (CAC payback period).&nbsp;&nbsp;- Churn rate and user retention.&nbsp;&nbsp;- Profitability (gross margins, burn multiple). Series B Stage (Rapid Growth &amp; Market Leadership) 1. Aggressive Scaling&nbsp;&nbsp;- Focus on high growth by scaling product development, customer acquisition, and sales teams.&nbsp;&nbsp;- Build infrastructure for large-scale operations (systems, security, compliance).&nbsp;&nbsp;- Prepare for international expansion or diversification of product offerings. 2. Operational Efficiency&nbsp;&nbsp;- Streamline processes and increase operational efficiency (automation, tooling, data-driven processes).&nbsp;&nbsp;- Build out leadership and management teams to manage growing headcount.&nbsp;&nbsp;- Optimize supply chains, manufacturing (if applicable), and backend scalability. 3. Revenue Expansion&nbsp;&nbsp;- Explore additional revenue streams, upsell/cross-sell opportunities.&nbsp;&nbsp;- Implement advanced sales and marketing strategies (ABM, influencer marketing, partnerships).&nbsp;&nbsp;- Focus on increasing gross margins and scaling customer success. 4. Product Differentiation &amp; Innovation&nbsp;&nbsp;- Invest in research and development to maintain product leadership.&nbsp;&nbsp;- Innovate with new features or complementary products that expand market share.&nbsp;&nbsp;- Expand product-market fit in secondary markets. 5. Fundraising &amp; Financial Strategy&nbsp;&nbsp;- Raise Series B funding (with a focus on fueling rapid growth).&nbsp;&nbsp;- Strengthen financial reporting, forecasting, and compliance (move towards audits, potential exit/IPO preparation).&nbsp;&nbsp;- Build relationships with growth-stage investors. 6. Metrics to Focus On&nbsp;&nbsp;- Revenue growth (high double-digit or triple-digit year-on-year growth).&nbsp;&nbsp;- Profitability and path to breakeven.&nbsp;&nbsp;- Expansion of LTV (new product features, cross-sell/upsell).&nbsp;&nbsp;- Reduction of churn rate.&nbsp;&nbsp;- Team productivity and engagement (scaling culture). Each checklist emphasizes the key focus areas for every stage of funding, helping founders prioritize product-market fit, growth, and operational efficiency as they navigate the startup journey. If you think we've overlooked anything important, we welcome your comment and feedback!

The Startup Scaling Checklist: A Framework for Founders from Founding to Series-B stages

Press Release: cspaar.erp Expands European Presence with Strategic Partnerships and Tailored ERP Solutions for Small and Medium-Sized Businesses Aarhus, Denmark – 2024 – Scandinavian IT company cspaar continues to push boundaries in ERP solutions, delivering customized systems to small and medium-sized businesses (SMBs) in Denmark and the Netherlands. With a strong focus on growth and innovation, cspaar has entered into key partnerships that further enhance its market reach. cspaar has partnered with the Dutch consulting company Keep ERP Simple, which will handle the sales and distribution of cspaar.erp in the Netherlands. This collaboration marks a significant step in cspaar’s European expansion strategy, making it easier for Dutch businesses to access and benefit from their comprehensive ERP solution. Since its founding in 2021, cspaar.erp has provided customized ERP systems covering order management, point-of-sale (POS) systems, inventory management, and accounting. The key advantage of cspaar.erp is that clients only need to rely on **one** supplier for all their business infrastructure, reducing complexity and increasing operational efficiency. “We are excited about the opportunities this partnership brings,” said Caspar Christophe Ejsing, CEO of cspaar. “Our goal has always been to help small and medium-sized businesses streamline their workflows by offering a comprehensive ERP solution that meets their unique needs. This new collaboration will allow us to provide even better solutions and services.” cspaar.erp stands out in a competitive landscape that includes companies like Flatpay, C1ST, and iZettle, by offering an all-in-one ERP solution that combines various functions on a single platform. This eliminates the need for multiple systems and suppliers, simplifying both setup and daily operations for businesses. As part of its growth strategy, cspaar is focused on expanding further into Europe while continuing to invest in product development and customer support. The company also offers prospective clients a 25% discount on the first 6 months of using the software, allowing them to explore the system’s capabilities and see how it can enhance their operations. With a strong commitment to customer satisfaction and a broad range of services, cspaar.erp is on track to become the preferred ERP solution provider for small and medium-sized businesses across Scandinavia and Europe

cspaar.erp Expands European Presence

GP-led transactions have emerged as a transformative force in the venture capital and private equity secondary market, offering innovative liquidity solutions for fund managers and investors alike. These transactions, initiated by general partners (GPs), have grown from a niche approach to a mainstream practice, accounting for nearly half of all secondary transactions in recent years. Understanding GP-Led Transactions GP-led transactions typically involve the transfer of assets from an existing fund to a new vehicle managed by the same GP. This process allows GPs to retain control of high-potential assets while offering liquidity options to existing limited partners (LPs). Market Growth and Trends The GP-led segment has experienced remarkable growth, expanding from just $5 billion in volume in 2013 to $48 billion in 2022. This growth has continued, with GP-led deals accounting for approximately half of all secondary deal volume since 2020. The market's transformation suggests further acceleration in the near to medium term, as these transactions have effectively transferred secondary portfolio management responsibility from LPs to GPs. Economics for GPs GP-led transactions offer several economic benefits for general partners: 1. Extended Asset Management: GPs can retain control of high-potential assets beyond the original fund's lifespan, potentially increasing overall returns. 2. Fee Structure Reset: GPs can negotiate new fee structures for the continuation vehicle, often including:&nbsp;&nbsp;- Management fees typically ranging from 0.50% to 1.25%, lower than traditional primary funds.&nbsp;&nbsp;- Tiered carried interest structures, where full carry (usually 20%) is achieved only after certain performance hurdles are met. 3. Carried Interest Crystallization: GPs often roll over 100% of their crystallized carry from the existing fund into the new structure, aligning their interests with new investors. 4. Additional Capital Commitment: GPs frequently make new commitments to the continuation vehicle, typically 3-5% of the purchase price, further demonstrating alignment. 5. Ratchet Mechanisms: Many continuation funds implement ratchet mechanisms with different hurdles before the GP can begin to realize carry, enhancing alignment and potential upside. 6. Market Timing Flexibility: GPs gain the ability to maximize value by choosing the optimal time to exit investments. The Economics for New LPs New LPs investing in GP-led transactions often find attractive opportunities: 1. Access to High-Quality Assets: These deals frequently involve "trophy assets" that GPs want to retain, offering new LPs exposure to premium investments. 2. Potential Pricing Advantage: While pricing varies, new LPs may invest at a slight discount to the fund's fair market value (FMV) or Total Value to Paid-In (TVPI) multiple. This discount, typically ranging from 0-10%, reflects the concentrated nature of the investment and the need to incentivize new capital. 3. Attractive Risk-Reward Profile: New investors benefit from the GP's existing knowledge of the asset, potentially reducing risk while maintaining upside potential. 4. Immediate Exposure: Unlike primary fund investments, GP-led deals offer immediate and concentrated exposure to specific assets or portfolios. 5. Favorable Terms: New LPs often negotiate more investor-friendly terms compared to the original fund, including lower management fees and performance-based carry structures. Some investor-friendly benefits for New LPs include: 1. Lower Management Fees: Management fees in continuation funds are generally lower than in primary funds, typically ranging from 0.50% to 1.25%. 2. Performance-Based Carry Structures: Instead of the standard 20% carry, GP-led transactions often use tiered carry structures where the GP doesn't achieve full carry unless certain performance hurdles are met. 3. GP Commitment: GPs often roll over 100% of their crystallized carry from the existing fund into the new structure and make significant new commitments (typically 3-5% of the purchase price), demonstrating alignment with new investors. 4. Ratchet Mechanisms: Many continuation funds implement ratchet mechanisms with different hurdles before the GP can begin to realize carry, further enhancing alignment. 5. Enhanced Transparency: New LPs gain access to in-depth portfolio information beyond a fund's regular reporting, allowing for deep direct-style diligence of the assets. 6. Immediate Exposure: Unlike primary fund investments, GP-led deals offer immediate and concentrated exposure to specific assets or portfolios. 7. Governance Rights: New lead investors may negotiate for enhanced governance rights or input on key decisions related to the portfolio companies. 8. Deferral Options: In some cases, buyers may negotiate delayed payment methods, typically spreading payments over 6-12 months, which can enhance IRR. 9. Status Quo Option: Some deals offer a status quo option, enabling existing LPs to retain their legacy distribution waterfall without committing to new arrangements. These are some investor-friendly terms that are designed to align interests between the GP and new investors, provide enhanced economics for new LPs, and ensure continued focus on value creation in the underlying assets. Challenges for Existing LPs While GP-led transactions offer benefits, they also present challenges for existing LPs: 1. Liquidity vs. Upside Potential: LPs must decide whether to cash out or roll over their investment. This decision can be complex, potentially constraining their ability to fully realize anticipated returns. 2. Valuation Concerns: Ensuring fair valuation is crucial. LPs may worry about whether the transaction price truly reflects the asset's value. 3. Alignment of Interests: There's a potential conflict of interest as GPs act as both buyers and sellers. LPs must scrutinize the GP's motivations and commitment to the new vehicle. 4. Fee Structure Changes: Rolling over into the new vehicle may involve new fee arrangements, potentially impacting long-term returns. 5. Due Diligence Burden: LPs choosing to roll over may need to conduct additional due diligence on the new vehicle, incurring extra costs and time. 6. Limited Negotiation Power: Individual LPs may have limited ability to influence transaction terms, especially in larger funds. Market Dynamics and Trends 1. Growing Popularity: GP-led transactions have become a key liquidity management tool, driven by innovation and slowdowns in traditional exit routes like IPOs and M&amp;A. 2. Dry Powder Imbalance: The market currently faces a supply-demand disparity, with more GP-led opportunities than available capital, allowing buyers to be highly selective. 3. Focus on Quality: High-quality assets and well-structured deals attract significant attention, while challenging transactions struggle to close. 4. Importance of GP Commitment: Successful deals often involve GPs rolling over 100% of their crystallized carry and making substantial new commitments, typically 3-5% of the purchase price. 5.Regulatory Scrutiny: Increasing transaction volumes have led to calls for greater transparency and potential regulatory oversight, including proposals for fairness opinions and prompt notification of deals. Recent Examples 1. Lexington Capital Partners and Lightspeed Venture Partners: Lexington participated in a multi-asset transaction involving Lightspeed Venture Partners, acquiring stakes in multiple Lightspeed funds. 2. Coller Capital and Abry Partners: In August 2024, Coller Capital led a $1.6 billion GP-led credit transaction with Abry Partners, creating the largest credit continuation vehicle to date. Industry Focus and Preferences Buyers in the GP-led market show a preference for mature business models and industries with limited cyclical exposure. Buyouts compose 86% of GP-led market share, with healthcare, business services, industrials, and tech dominating interest. Capital-intensive industries have generally struggled to gain traction in these transactions. GP-led transactions have revolutionized the private equity secondary market, offering new avenues for liquidity and investment. While they present attractive opportunities for GPs to extend asset management and for new LPs to access high-quality assets, existing LPs face complex decisions that can impact their investment outcomes. As the market evolves, balancing the interests of all parties involved will be crucial for the continued growth and acceptance of these innovative structures. For both new and existing LPs, careful due diligence, a clear understanding of the underlying assets, and a thorough evaluation of the GP's track record and alignment are essential when considering participation in GP-led transactions. As these deals continue to reshape the private equity landscape, they offer both opportunities and challenges that investors must navigate with care and expertise. The future of GP-led transactions looks promising, with continued growth expected as they become an established part of the private equity ecosystem. However, success in this market will depend on maintaining high standards of transparency, alignment, and value creation for all stakeholders involved.

The Rise of GP-Led Transactions: Revolutionizing Private Equity Liquidity

The investment landscape is evolving with the introduction of new fund structures designed to channel more capital into long-term, illiquid assets. In the UK, the Long-Term Asset Fund (LTAF) and in the EU, the European Long-Term Investment Fund (ELTIF) are paving the way for broader investor access to private markets and infrastructure investments. These innovative structures aim to democratize access to alternative investments while supporting economic growth and development. The UK's Long-Term Asset Fund (LTAF)Introduced in 2021 by the UK's Financial Conduct Authority (FCA), the LTAF is a new category of open-ended authorised fund designed to invest efficiently in long-term, illiquid assets.&nbsp; Key features of LTAFs include:- Structure: Can be structured as an authorised contractual scheme (ACS), authorised unit trust (AUT), or open-ended investment company (OEIC)- Eligible investors: Professional investors, DC pension schemes, sophisticated investors, and high net worth individuals- Investment focus: At least 50% of assets must be invested in long-term illiquid assets- Investment flexibility: Can make direct investments and invest in other funds, including unregulated collective investment schemes- Borrowing limit: Up to 30% of net assets- Redemptions: No more frequent than monthly with a minimum 90-day notice period- Valuation: Requires appointment of an external valuer Recent developments:- Schroders Capital received approval for the UK's first venture capital-focused LTAF- LTAFs can be held within Innovative Finance ISAs from April 2024- Retail access has been broadened, including to self-select DC pension schemes and SIPPs The EU's European Long-Term Investment Fund (ELTIF)Originally introduced in 2015, the ELTIF framework was recently updated with "ELTIF 2.0" coming into effect in January 2024. This revision aims to make ELTIFs more attractive to both investors and fund managers. Key features of ELTIF 2.0 include:- Structure: Closed-ended fund regulated under EU legislation- Eligible investors: Both retail and professional investors across the EU- Investment focus: Long-term investments in the EU economy, with broadened scope under ELTIF 2.0- Investment flexibility: Can make direct investments and invest in other EU Alternative Investment Funds- Borrowing limit: Up to 50% of NAV for retail-marketed ELTIFs, 100% for professional-only ELTIFs- Redemptions: New provisions for optional liquidity windows and secondary market trading- Valuation: Aligned with AIFMD requirements Recent developments:- Expanded eligible assets including green bonds, fintechs, and global investments- Removal of minimum investment amounts for retail investors- Introduction of master-feeder and fund-of-funds structures Investment StrategiesBoth LTAFs and ELTIFs offer flexibility in their investment approaches: 1. Direct Investments: These funds can invest directly in long-term, illiquid assets such as private equity, venture capital, real estate, and infrastructure projects. 2. Fund of Funds: They can also invest in other funds, allowing for diversified exposure to multiple strategies or sectors. This dual approach allows fund managers to create diverse portfolios tailored to specific investment objectives while providing investors with access to a broad range of long-term investment opportunities. Shared Objectives and BenefitsBoth LTAFs and ELTIFs aim to:1. Provide investors with access to potentially higher returns from illiquid assets2. Offer portfolio diversification opportunities3. Channel capital into long-term projects and the real economy4. Align with long-term investment horizons, particularly for pension funds5. Provide a regulated structure with investor protections EconomicsWhile specific fee structures may vary, both LTAFs and ELTIFs typically involve:- Management fees: Usually around 1-2% of assets under management- Performance fees: May be included, subject to regulatory guidelines and disclosure requirements- Carried interest: Common in private equity-style investments, typically around 20% of profits above a hurdle rate Investors should carefully consider the total cost of ownership, including all fees and expenses, in the context of potential long-term returns and diversification benefits. Looking AheadThe success of LTAFs and ELTIFs will depend on how well they balance investor protection with flexibility for fund managers. As these structures evolve, they have the potential to play a significant role in democratizing access to private markets and supporting long-term economic development. For investors, these funds offer new opportunities to diversify portfolios and potentially enhance long-term returns. However, it's crucial to understand the risks associated with illiquid investments and the specific terms of each fund. For fund managers, LTAFs and ELTIFs present opportunities to tap into new sources of capital and offer innovative products to a broader investor base. The ability to employ both direct investment and fund of funds strategies provides additional flexibility in portfolio construction and risk management. As the investment landscape continues to evolve, LTAFs and ELTIFs represent important innovations in connecting diverse pools of capital with long-term investment opportunities. Their development and adoption will be closely watched by investors, fund managers, and policymakers alike, potentially reshaping how capital is allocated to long-term, illiquid assets across the UK and EU.

LTAFs and ELTIFs: Unlocking Long-Term Investments in the UK and EU

Newnex’s latest edition of Top Tech and Venture Capital News provides a comprehensive overview of significant events in the technology and investment space. <ul><li>Venture Capital has an exit problem <a href="https://techcrunch.com/2024/07/04/spains-exposure-to-climate-change-helps-madrid-based-vc-seaya-close-e300m-climate-tech-fund/" rel="noopener noreferrer" target="_blank">Read more</a></li><li>OpenAI Launches Advanced Voice Mode for ChatGPT: OpenAI has begun rolling out its Advanced Voice Mode, offering hyper-realistic audio responses to a select group of ChatGPT Plus users, with a wider release planned for fall 2024. <a href="https://www.newnex.io/feed/openai-launches-advanced-voice-mode-for-chatgpt-a-new-era-of-hyper-realistic-audio-responses" rel="noopener noreferrer" target="_blank">Read more</a></li><li>Tech Giants Face AI Investment Challenges: Despite stock market penalties, tech companies argue that the risks of underinvesting in AI are greater than overinvesting. <a href="https://www.newnex.io/feed/ai-this-sums-it-up-the-risk-of-underinvesting-is-dramatically-greater-than-the-risk-of-overinvesting" rel="noopener noreferrer" target="_blank">Read more</a></li><li>OpenAI's Valuation Hits $80 Billion: OpenAI has reached an $80 billion valuation following a strategic share sale led by Thrive Capital, reflecting significant interest in AI technologies. <a href="https://www.newnex.io/feed/openai-turns-to-strategic-investments-as-it-reportedly-reaches-80-billion-valuation" rel="noopener noreferrer" target="_blank">Read more</a></li><li>Web3 Startups Secure $1.1 Billion in July: Venture capitalists invested over $1.1 billion across 118 deals in Web3-based startups in July. <a href="https://www.newnex.io/feed/web3-based-startups-raised-more-than-11-billion-from-venture-capitalists-across-118-deals-in-july" rel="noopener noreferrer" target="_blank">Read more</a></li><li>BNP Paribas to Acquire AXA IM: BNP Paribas is set to acquire AXA Investment Managers, including a management buyout of AXA VP. <a href="https://www.newnex.io/feed/bnp-paribas-to-acquire-axa-im-axa-vps-management-buyout" rel="noopener noreferrer" target="_blank">Read more</a></li><li>BendingSpoons Acquires WeTransfer: Italian company BendingSpoons has acquired the file transfer service WeTransfer. <a href="https://www.newnex.io/feed/italys-bendingspoons-acquires-file-transfer-service-wetransfer" rel="noopener noreferrer" target="_blank">Read more</a></li><li>Advancements in Solid-State Battery Technology: New solid-state battery technology promises up to 600 miles on a single charge. <a href="https://www.newnex.io/feed/solid-state-battery-tech-for-600-miles-on-single-charge" rel="noopener noreferrer" target="_blank">Read more</a></li><li>Satellite Milestone: Humanity has launched 10,000 satellites, with Starlink accounting for over 6,500. <a href="https://www.newnex.io/feed/humanity-reached-10k-satellites-of-which-starlink-accounts-for-approximately-two-thirds" rel="noopener noreferrer" target="_blank">Read more</a></li><li>Google Abandons Third-Party Cookie Phase-Out: Google has decided to abandon its plan to phase out third-party cookies in Chrome. <a href="https://www.newnex.io/feed/google-abandons-plan-to-phase-out-third-party-cookies-in-chromegoogle-has-decided-not-to-cancel-and-replace-third-party-cookies-in-its-chrome-browser-" rel="noopener noreferrer" target="_blank">Read more</a></li><li>UK Boosts Quantum Technology Funding: The UK has allocated £100 million to establish five quantum technology hubs across England and Scotland. <a href="https://www.newnex.io/feed/britains-quantum-technology-ambitions-have-received-a-100m-boost-to-establish-five-quantum-technology-hubs-across-england-and-scotland-these-hubs-anno" rel="noopener noreferrer" target="_blank">Read more</a></li><li>India's Private Capital Exits: India saw $25 billion in private capital-backed exits in 2023 and $11.5 billion in the first half of 2024. <a href="https://www.newnex.io/feed/india-saw-25-billion-in-private-capital-backed-exits-in-2023-and-115-billion-in-the-first-half-of-2024-according-to-new-data-from-the-global-private-c" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> Startups fundraising track - we tracked $2.4billion funding rounds between Asia, Israel, Europe and the US. Total $450 million raised by Startups in Asia and Israel:<ul><li>Rapido (India): Ride-hailing startup raised $120 million, entering unicorn club, led by WestBridge.</li><li>Matter Motor (India): EV maker raised $35 million in Series B funding.</li><li>Meragi (India): Wedding services startup raised $9.1 million in Series A led by Accel.</li><li>DeepC (Germany): Radiology AI startup raised €30 million (approximately $33 million).</li><li>Mayhem Studios (India): Mobile gaming studio raised an undisclosed amount from Lumikai.</li><li>DruCare (India): Healthtech startup raised $1.2 million in pre-Series A funding.</li><li>Dezerv (India): Wealthtech startup raised ₹265 crore (approximately $32 million) in Series B funding.</li><li>Immuneel Therapeutics (India): Raised ₹100 crore (around $12 million).</li><li>Timbuckdo (India): On-demand talent platform raised ₹2 crore (approximately $240,000).</li><li>AryaAg (India): Agritech startup raised $29 million.</li><li>Lakera AI (Switzerland): AI safety startup raised $20 million.</li><li>Caldera (Israel): "Rollup-in-a-box" platform raised $15 million from Peter Thiel's venture fund.</li><li>CytoReason (Israel): AI healthcare startup raised $80 million.</li><li>Partior (Singapore): Blockchain settlement startup raised $60 million.</li><li>IVP Semi (India): Chip company raised $5 million.</li></ul> Europe - Total startup funding $387.7 million<ul><li>Flo Health (UK): Women's health app raised over $200 million, achieving unicorn status.</li><li>4D Medicine (UK): Biomaterial startup raised £1.1 million (around $1.4 million).</li><li>Ocula (UK): E-commerce analytics platform raised an undisclosed amount in Series A funding.</li><li>Cognisyc (Romania): Received investment from Early Game Ventures, amount undisclosed.</li><li>Plum (UK): Financial wellness platform raised $10 million.</li><li>Maurten (Sweden): Sports nutrition company raised €20 million (approximately $22 million).</li><li>Kolum (Germany): Raised €21 million (around $23 million) in pre-seed funding.</li><li>LegalFly (Turkey): Legal services AI startup raised $15 million.</li><li>Hero Software (UK): SaaS platform for tradespeople raised $40 million in Series B funding.</li><li>Adam (Czech Republic): Home improvement platform raised €3 million (approximately $3.3 million).</li><li>Soda (Belgium): AI data quality startup raised $14 million.</li><li>Planqc (Germany): Quantum startup raised $54 million.</li><li>Helsing (Germany): Defense startup valued at $5 billion following its latest funding round.</li><li>Switchee (UK): Smart home technology startup raised $5 million.</li></ul> USA startups raised c. $1.6 billion<ul><li>Q Bio (USA): Preventative health scan startup raised an undisclosed amount for new MRI machine development.</li><li>Runway (USA): AI video startup reportedly seeking to raise $450 million.</li><li>Magic (USA): AI coding startup seeking $1.5 billion valuation in new funding round.</li><li>Posh (USA): Event startup raised $22 million.</li><li>Vanta (USA): Internet security startup raised $150 million in Series C funding.</li><li>Monarch Tractor (USA): Autonomous electric tractor company raised $133 million.</li><li>Third Arc (USA): Oncology and immunology startup launched with Series A funding, amount undisclosed.</li><li>Harvey (USA): OpenAI-backed legaltech startup raised $100 million.</li><li>Heeler (USA): Application security company raised $8.5 million.</li><li>Cohere (Canada): AI startup raised $500 million.</li><li>Sentient Labs (USA): AI and crypto startup raised $85 million, led by Peter Thiel.</li><li>Hebbia (USA): AI document search tool raised $130 million.</li></ul> Founders' Speak:An interview with Eleven Labs founder about raising $101 million in 2 years - <a href="https://www.newnex.io/feed/elevenlabs-on-raising-101m-in-two-years" rel="noopener noreferrer" target="_blank">Read more</a> Venture Capital funds launched with $3.6 billion dry-powder <ul><li>Tenzing Fund III has successfully closed with a substantial fund size of £900 million, equivalent to approximately $1.15 billion USD. This fund, based in the UK, focuses on technology investments and marks a significant milestone for Tenzing as it aims to support innovative tech companies. <a href="https://www.insidermedia.com/news/national/tenzing-closes-third-fund-at-900m" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Trill Impact has launched its inaugural venture fund, raising €90 million (around $98 million USD). This fund targets early-stage companies in Europe that are driven by impact, particularly those addressing global challenges aligned with the UN Sustainable Development Goals. <a href="https://impact-investor.com/trill-impact-closes-venture-fund-after-raising-e90m/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Forestay Capital has closed its fifth fund with a total of $220 million, specifically focusing on early-stage technology startups in Israel and Europe <a href="https://www.timesofisrael.com/european-venture-capital-firm-closes-220m-fund-with-focus-on-israeli-startups" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>13books Capital has raised £95 million, which is approximately $121 million USD, to establish a venture capital fund that concentrates on fintech investments. This fund seeks to capitalize on the growing fintech sector. <a href="https://www.cityam.com/13books-capital-raises-121m-for-fintech-venture-capital-fund/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>venBio has raised $528 million for its fourth fund, focusing on investments in life sciences, which aims to support innovative healthcare solutions. <a href="https://www.fiercebiotech.com/biotech/venture-capital-veteran-venbio-raises-528-million-life-sciences-investment" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>ICONIQ Growth has wrapped up its seventh fund with a remarkable size of $5.75 billion, targeting growth investments in technology across a global landscape. <a href="https://www.iconiqcapital.com/growth/insights/iconiq-growth-raises-5-75b-to-support-the-next-generation-of-exceptional-founders" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Index Ventures has successfully raised $2.3 billion, which will be allocated to both venture and growth investments in technology startups globally. <a href="https://techcrunch.com/2024/07/09/index-ventures-raises-23-billion-for-new-venture-and-growth-funds/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Sovereign's Capital has announced its largest fund ever, closing at $400 million, with a focus on early to growth-stage investments in technology and healthcare sectors across the US and Southeast Asia. <a href="https://www.businesswire.com/news/home/20240710348091/en/Sovereign%E2%80%99s-Capital-Closes-its-Largest-Ever-Venture-Capital-Fund" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Industry Ventures has raised $900 million to invest in small early-stage VCs and their breakout startups, emphasizing the importance of nurturing emerging talent in the venture capital landscape. <a href="https://techcrunch.com/2024/07/02/industry-ventures-raises-a-900m-fund-for-investing-in-small-early-stage-vcs-and-their-breakout-startups" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Frumtak Ventures has closed its fourth fund at $87 million, focusing on supporting startups in Iceland. <a href="https://tech.eu/2024/07/10/icelandic-frumtak-ventures-closes-fourth-fund-at-87m/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Alpine Space Ventures has raised €170 million (approximately $185 million USD) to target Series A rounds in the space tech sector. <a href="https://www.eu-startups.com/2024/07/alpine-space-ventures-closes-e170-million-fund-to-target-series-a-space-tech-rounds/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Carbon Equity has launched a new climate tech fund, raising €60 million (around $65 million USD) to invest in sustainable technologies. <a href=" https://impact-investor.com/carbon-equity-raises-e60m-for-new-climate-tech-fund/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>J2 Ventures has secured $150 million to propel technology startups that cater to both civilian and government applications. <a href="https://techcrunch.com/2024/07/04/j2-ventures-focused-on-military-healthcare-grabs-150m-for-its-second-fund/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Seaya Andromeda has closed a climate tech fund with a total of €300 million (approximately $327 million USD), focusing on investments in environmentally sustainable technologies. <a href="https://techcrunch.com/2024/07/04/spains-exposure-to-climate-change-helps-madrid-based-vc-seaya-close-e300m-climate-tech-fund/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> Learning: <ul><li>16 Leadership Lessons from Amazon - <a href="https://www.newnex.io/feed/16-leadership-lessons-from-amazon-" rel="noopener noreferrer" target="_blank">Read more</a></li></ul>----<a href="https://newnex.io" rel="noopener noreferrer" target="_blank">Newnex is an exclusive platform</a> designed for institutional investors for private venture capital syndications (GP-GP) and co-investments (GP-LP). Join the exclusive global network of VCs, Family Offices, LPs, and Asset Owners for confidential deal-making.

Newnex Venture Insights - Latest tech and venture capital news

Namma Yatri, the open-source ridesharing app, has reportedly secured $11 million in pre-Series A funding! 💰Google joins as an investor, part of its $10 billion India commitment<ul><li>Round co-led by Blume Ventures and Antler</li><li>Operates on ONDC, India's initiative to democratize e-commerce</li><li>Completed 46 million+ rides across multiple Indian cities</li><li>What sets Namma Yatri apart? 🤔</li><li>No commission fees, unlike Uber and Ola. </li><li>Small monthly fee from driver partners</li></ul>Founded by Magizhan Selvan and Shan M S to address driver frustrations, Namma Yatri is an innovative open-source ride-sharing startup based in Bengaluru, India. Launched in 2022, the app connects customers with auto-rickshaw and cab drivers without charging any commission fees. Instead, it sustains itself through a small monthly fee paid by its driver partners, making it a unique player in the ride-sharing market dominated by Uber and Ola, which charge drivers 25-30% commission per ride.The startup was incubated by Juspay, a SoftBank-backed financial services company, and later spun off into a separate entity called Moving Tech.Namma Yatri operates on the Open Network for Digital Commerce (ONDC), an interoperable platform backed by the Indian government to democratize e-commerce.The app has facilitated over 46 million rides across more than half a dozen Indian cities, including Bengaluru and Hyderabad. Recently, Namma Yatri raised $11 million in a pre-Series A funding round co-led by Blume Ventures and Antler, with participation from Google, which aligns with Google's broader $10 billion investment commitment in India.Moving Tech’s co-founders, Magizhan Selvan and Shan M S, have emphasized empathy and a differentiated approach in their business model, focusing on addressing the frustrations of drivers within the existing ride-sharing ecosystem. The new funding will be used to expand Namma Yatri's engineering and R&amp;D teams and to explore additional transportation options, including buses. Namma Yatri is a testament to the potential of open-source solutions in transforming traditional business models and improving livelihoods in the gig economy.

Google invests in Indian open source Uber competitor - Namma Yatri

OpenAI has launched GPT-4o mini, a cost-efficient small language model designed to enhance accessibility and affordability for various applications.&nbsp; ﻿Key Highlights and Features of GPT-4o Mini 1. Performance<ul><li>GPT-4o mini outperforms GPT-4 in chat preferences, as reflected in the LMSYS leaderboard.</li><li>It achieves an impressive score of 82% on the MMLU benchmark.</li></ul> 2. Cost-Efficiency<ul><li>The model is priced at 15 cents per million input tokens and 60 cents per million output tokens.</li><li>This pricing makes it significantly cheaper than previous models, including being 60% less expensive than GPT-3.5 Turbo.</li></ul> 3. Capabilities<ul><li>GPT-4o mini supports both text and vision in its API.</li><li>It features a large context window of 128K tokens and includes knowledge up to October 2023.</li></ul> 4. Benchmark Performance<ul><li>The model surpasses GPT-3.5 Turbo and other small models on various academic benchmarks, excelling in textual intelligence and multimodal reasoning.</li></ul> 5. Safety Measures<ul><li>Built-in safety features help filter out undesirable content.</li><li>The model uses reinforcement learning with human feedback (RLHF) to align with OpenAI's safety policies.</li></ul> 6. Availability<ul><li>GPT-4o mini is available through the Assistants API, Chat Completions API, and Batch API.</li><li>It is accessible to ChatGPT Free, Plus, and Team users, replacing GPT-3.5.</li></ul> 7. Future Developments<ul><li>OpenAI plans to continue enhancing model capabilities while further reducing costs, aiming for seamless integration of AI into applications and websites.</li></ul> This launch marks a significant advancement in making powerful AI models more accessible and affordable for developers and users. Read more: <a href="https://openai.com/index/gpt-4o-mini-advancing-cost-efficient-intelligence" rel="noopener noreferrer" target="_blank">https://openai.com/index/gpt-4o-mini-advancing-cost-efficient-intelligence/</a>

GPT-4o mini launched, cheaper access for startups and small businesses

Pension funds, the silent guardians of people's retirements, manage a staggering $76 trillion globally, with a whopping $4.6 trillion entrusted to them in the UK alone. How these vast sums are invested impacts the comfort and security of retirees. In this context, we drive into two key questions that shape pension investment strategies:<ol><li>Should pension funds prioritize local economic growth, or focus solely on maximizing returns?</li><li>And how do alternative investments like private equity stack up against traditional investment options?</li></ol> Balancing Returns and Local ImpactLet's start with the basics. The fiduciary duty of a pension fund is to generate the best possible returns to ensure retirees can maintain a comfortable standard of living after they stop working. Governments may advocate for investing in local economies, citing tax breaks offered to pension funds. However, when it comes to investment decisions, maximizing returns for pensioners must be the top priority. Without delving into the politics of it, local investments are attractive if they deliver strong growth potential. There are arguments put-forward by entrepreneurs that pension funds must invest locally, <a href="https://www.theguardian.com/business/article/2024/jul/12/british-chipmaker-graphcore-bought-by-japans-softbank" rel="noopener noreferrer" target="_blank">most recently by the founder of Graphcore</a>. This distills down to: Should the responsibility of driving economic growth fall on the shoulders of pensioners through their investments, or should retirees simply benefit from the economic growth generated by the broader economy? Exploring Alternatives UK FTSE 100 has historically delivered around 7% nominal returns compared that of 16.5% 5-year annualized returns of S&amp;P 500. UK Equities barely keeps pace with inflation, essentially eroding the purchasing power of retirees' savings. Pension funds are said to have averaged under<a href="https://getpenfold.com/news/pension-interest-rates" rel="noopener noreferrer" target="_blank"> 7%</a>. Alternative investments such as private equity (PE) has traditionally been generating<a href="https://www.klarphos.com/news-insights/a-simple-case-for-alternative-investments-to-enhance-portfolio-returns#:~:text=The%20study%20found%20that%20private,funds%20had%20an%20approximate%20historical" rel="noopener noreferrer" target="_blank"> 15-24% annualized returns</a> historically. Added to that the tailwind behind alternative investing makes it almost mandatory to have strong alternatives exposure. A breakdown of key advantages to add alternatives exposure:<ul><li>Diversification: Traditional equity markets are consolidating, meaning there are fewer publicly traded companies to invest in (listed equities have come down from 8000 in 1990s to less than 3700 today). Alternatives offer diversification, spreading risk and providing access to value creation in the private sector. Companies are staying private for longer periods, and a lot of the value creation is happening in private markets.</li></ul> <ul><li>Riding the Digital Wave: Many industries are undergoing a digital transformation, and a significant portion of the value generated from this shift resides in private markets. By incorporating alternatives, pension funds can gain exposure to these high-growth areas.</li></ul> <ul><li>Non-Correlation: Studies suggest that alternative asset classes have a low correlation with traditional investments.. This means that when traditional markets experience a downturn, alternatives may hold steady, further enhancing the overall resilience of a pension fund's portfolio. There is an alternative argument however that the private markets simply delay downsizing their valuations. But what matters ultimately is the returns upon exit, something to watch out for.</li></ul> Learning from the Pack:North American pension funds have been at the forefront of incorporating alternatives into their investment strategies. European funds are slowly opening up and developing expertise in selecting skilled fund managers and accessing the most promising markets for alternative investments. While maximizing returns remains paramount, strategically incorporating alternatives offers pension funds a powerful tool to fulfill their core mission: securing a comfortable future for retirees. However, navigating the alternatives industry is no easy task. There is much work to be done both from pensions funds and the alternatives industry overall. Alternative industry is famously complex, lacks transparency, has high fees, boasts of limited liquidity, and is ridden with regulatory restrictions. In addition, market timing is crucial as performance can vary significantly with economic conditions. By carefully selecting managers and diversifying with alternatives, pension funds can unlock higher returns, achieve better portfolio balance, and tap into the growth potential of the private sector. This, in turn, can translate to a better financial future for generations of retirees. References:<a href="https://www.theguardian.com/business/article/2024/jul/12/british-chipmaker-graphcore-bought-by-japans-softbank" rel="noopener noreferrer" target="_blank">Talent drain in the UK if pension funds don't invest locally</a><a href="https://getpenfold.com/news/pension-interest-rates" rel="noopener noreferrer" target="_blank">How pension interest rates work?</a><a href="https://www.klarphos.com/news-insights/a-simple-case-for-alternative-investments-to-enhance-portfolio-returns#:~:text=The%20study%20found%20that%20private,funds%20had%20an%20approximate%20historical" rel="noopener noreferrer" target="_blank">An aerial view of major alternative asset classes</a><a href="https://ifs.org.uk/publications/challenges-uk-pension-system-case-pensions-review" rel="noopener noreferrer" target="_blank">The case for UK pensions review</a><a href="https://ifs.org.uk/publications/challenges-uk-pension-system-case-pensions-review" rel="noopener noreferrer" target="_blank">Should pension funds invest in UK growth?</a><a href="https://www.hamiltonlane.com/en-us/insight/staying-private-longer#:~:text=There%20is%20growing%20evidence%20that,the%20sphere%20of%20public%20markets." rel="noopener noreferrer" target="_blank">Staying private longer leads to opportunity</a><a href="https://www.hamiltonlane.com/en-us/insight/staying-private-longer#:~:text=There%20is%20growing%20evidence%20that,the%20sphere%20of%20public%20markets." rel="noopener noreferrer" target="_blank">2024 pension updates from UK Spring budget</a>

Should pension funds invest in PE/VC?

At Newnex, we have compiled a list of essential startup events to help you plan effectively: February<ul><li><a href="https://www.4yfn.com/" rel="noopener noreferrer" target="_blank">4YFN - MWC</a>: Barcelona, Spain (26-29 Feb)</li></ul> March<ul><li><a href="https://hello-tomorrow.org/global-summit/" rel="noopener noreferrer" target="_blank">Hello Tomorrow Global Summit</a>: Paris, France (21-22 Mar)</li></ul> May<ul><li><a href="https://www.eu-startups.com/eu-startups-summit-2024/" rel="noopener noreferrer" target="_blank">EU Startup Summit</a>: Malta (9-10 May)</li><li><a href="https://tech.eu/event/2024/summit-london/" rel="noopener noreferrer" target="_blank">Tech EU Summit</a>: London, UK (16-17 May)</li><li><a href="https://www.gitex-europe.com/" rel="noopener noreferrer" target="_blank">GITEX Europe</a>: Berlin, Germany (21-23 May)</li><li><a href="https://latitude59.ee/" rel="noopener noreferrer" target="_blank">Latitude 59</a>: Tallinn, Estonia (22-24 May)</li><li><a href="https://vivatechnology.com/" rel="noopener noreferrer" target="_blank">Viva Tech</a>: Paris, France (23-24 May)</li></ul> June<ul><li><a href="https://viennaup.com/" rel="noopener noreferrer" target="_blank">Vienna Startup Festival</a>: Vienna, Austria (3-9 Jun)</li><li><a href="https://www.southsummit.io/" rel="noopener noreferrer" target="_blank">South Summit</a>: Madrid, Spain (5-7 Jun)</li><li><a href="https://londontechweek.com/" rel="noopener noreferrer" target="_blank">London Tech Week</a>: London, UK (10-14 Jun)</li><li><a href="https://thenextweb.com/conference" rel="noopener noreferrer" target="_blank">TNW Conference</a>: Amsterdam, Netherlands (20-21 Jun)</li></ul> September<ul><li><a href="https://techbbq.dk/" rel="noopener noreferrer" target="_blank">TECHBBQ</a>: Copenhagen, Denmark (11-12 Sep)</li></ul> November<ul><li><a href="https://websummit.com/" rel="noopener noreferrer" target="_blank">Web Summit:</a> Lisbon, Portugal (11-14 Nov)</li><li><a href="https://slush.org/" rel="noopener noreferrer" target="_blank">Slush</a>: Helsinki, Finland (20-21 Nov)</li></ul> Contact: <a href="mailto:events@newnex.io" rel="noopener noreferrer" target="_blank">events@newnex.io</a> to be included in the list.

Startup Events to attend in Europe, Asia and the US in 2024

Assaf Rappaport, CEO of Wiz, recently emphasized the fragmented nature of the cybersecurity market at the Fortune Brainstorm Tech conference, predicting significant consolidation in the near future. He highlighted that the current landscape, with numerous niche players and specialized solutions, is unsustainable. Rappaport foresees a wave of mergers and acquisitions aimed at integrating these diverse offerings into more comprehensive platforms. Let's delve deeper into understanding what makes Wiz an acquisition play for Google's cloud business. Wiz’s Growth and Market Position Wiz is positioning itself at the forefront of this anticipated consolidation. The company has reached $350 million in annual recurring revenue (ARR) and boasts a $12 billion valuation. Wiz is actively pursuing acquisitions, such as the recent purchase of Gem Security for $350 million, and is gearing up for a future IPO. Serving over 40% of the Fortune 100 companies, Wiz’s extensive client base underscores its competitive strength and market leadership. Comprehensive Security Platform Wiz offers a comprehensive cloud security platform that differentiates itself from competitors through several key features:<ol><li>Cloud Security Posture Management (CSPM): Provides visibility into cloud environments, detects misconfigurations, and offers remediation recommendations.</li><li>Cloud Workload Protection (CWP): Secures cloud workloads by detecting vulnerabilities, malware, and ensuring compliance with security policies.</li><li>Wiz Runtime Sensor: Provides real-time monitoring and protection for cloud environments.</li><li>AI Security Posture Management (AI-SPM): Uses artificial intelligence to analyze security data and automate responses to potential threats.</li></ol> Pricing Model Wiz’s pricing model is designed to be flexible and scalable, catering to the needs of various enterprise customers. It typically includes:<ul><li>Subscription-Based Model: Customers pay for access to the platform's features and services on an ongoing basis.</li><li>Usage-Based Pricing: Costs can vary based on the number of cloud assets monitored, data volume processed, or specific features utilized.</li><li>Enterprise Agreements: Customized agreements for large organizations, potentially including discounts for long-term commitments or higher usage volumes.</li><li>Value-Added Services: Additional services such as advanced security features, premium support, and professional services for deployment and integration.</li></ul> Competitors Wiz faces competition from several prominent players in the cybersecurity market, each offering various strengths and specializations:<ol><li>Palo Alto Networks: Known for its comprehensive suite of cybersecurity solutions, including network security, cloud security, and endpoint protection. Palo Alto Networks is a leader in integrating AI and machine learning to enhance threat detection and response capabilities.</li><li>CrowdStrike: Specializes in endpoint security, threat intelligence, and cyberattack response. CrowdStrike's Falcon platform is renowned for its real-time threat detection and cloud-native architecture.</li><li>Zscaler: Focuses on cloud security and secure internet access, offering solutions that protect users and applications regardless of their location. Zscaler’s Zero Trust Exchange is a standout product in securing internet and SaaS applications.</li><li>Microsoft Azure Security Center: Provides integrated security monitoring and policy management across Azure environments. It offers robust threat protection and compliance management tools for Azure cloud services.</li><li>McAfee: Offers a range of security solutions for endpoints, networks, and cloud environments. McAfee’s MVISION platform integrates multiple security functions to provide comprehensive protection.</li></ol> Strategic Growth and Future OutlookWiz is focused on rapid innovation and customer-centric growth. The company plans to add 400 employees globally in 2024, enhancing its ability to serve a growing customer base. With a goal of reaching a billion dollars in sales, Wiz is set to continue its aggressive expansion and innovation strategy. Rappaport’s vision of consolidation in the cybersecurity market aligns with Wiz’s strategic moves, positioning the company to lead the integration of diverse security solutions into a unified platform. This approach aims to simplify security management for enterprises and provide a more robust defense against evolving cyber threats. Being positioned as a single unified platform for providing security is making it an attractive integration opportunity for data center providers and it is complementary to Google Cloud's offerings.

Amidst Google acquisition rumours, Wiz CEO Assaf Rappaport Foresees Consolidation in the Cybersecurity Market

The European Union's Artificial Intelligence Act (AI Act) is a comprehensive regulation designed to ensure the ethical and safe development and use of AI technologies across the EU. The AI Act is now published by the EU. Here is a summary of its key points and practical information: Objectives and Scope<ol><li>Ensuring Trustworthy AI: The primary goal of the AI Act is to foster the development and use of AI systems that are safe, transparent, and respectful of fundamental rights. It aims to create a regulatory framework that balances innovation with the protection of public interests and fundamental rights.</li><li>Risk-Based Approach: The AI Act categorizes AI systems into different risk levels:</li></ol><ul><li class="ql-indent-1">Unacceptable Risk: Practices that pose a clear threat to safety, livelihoods, and rights are banned. These include social scoring by governments and certain uses of real-time biometric identification.</li><li class="ql-indent-1">High Risk: AI systems that significantly impact people's lives (e.g., those used in critical infrastructure, employment, and law enforcement) are subject to strict requirements. These include robust risk management systems, high-quality data sets, and detailed documentation.</li><li class="ql-indent-1">Limited and Minimal Risk: These AI systems have fewer requirements but must still adhere to transparency obligations, such as informing users they are interacting with AI.</li></ul> <ol><li>Conformity Assessments: High-risk AI systems must undergo rigorous conformity assessments before being marketed. This ensures they meet the necessary standards for safety and performance.</li><li>National Authorities and European Artificial Intelligence Board: Each EU member state will appoint national authorities to oversee the implementation and enforcement of the AI Act. The European Artificial Intelligence Board will coordinate these efforts to ensure consistency across the EU.</li></ol>Supporting Innovation<ol><li>Regulatory Sandboxes: To encourage innovation, the AI Act includes provisions for regulatory sandboxes, allowing developers to test AI systems in a controlled environment under regulatory supervision.</li><li>Support for SMEs: Recognizing the challenges faced by small and medium-sized enterprises (SMEs), the AI Act provides measures to support their compliance, such as reduced fees for conformity assessments.</li></ol> Fundamental Rights and Ethical Considerations<ol><li>Protection of Fundamental Rights: The AI Act is designed to safeguard fundamental rights, including privacy, non-discrimination, and the right to a fair trial. It ensures that AI systems are developed and used in ways that do not infringe on these rights.</li><li>Ethical AI Development: The Act promotes the development of AI technologies that contribute positively to society and the environment. It encourages the use of AI to enhance human well-being and societal good.</li></ol> Practical Implications<ol><li>Compliance Costs: For businesses and public authorities developing or using high-risk AI systems, compliance costs are estimated between €6,000 and €7,000 per system, with additional annual costs for human oversight ranging from €5,000 to €8,000. Verification costs could add another €3,000 to €7,500.</li><li>Transparency and Accountability: AI systems interacting with humans, such as chatbots, must clearly inform users they are interacting with AI. Systems generating deep fakes must disclose their artificial nature.</li></ol> Legal Basis and Harmonization<ol><li>Legal Framework: The AI Act is based on Article 114 of the Treaty on the Functioning of the European Union (TFEU), ensuring the establishment and functioning of the internal market by harmonizing rules for AI systems.</li><li>Avoiding Fragmentation: By setting harmonized rules, the AI Act aims to prevent the fragmentation of the internal market, ensuring legal certainty and a level playing field for AI developers and users across the EU.</li></ol> The AI Act sets a global standard for AI governance, promoting innovation while safeguarding ethical standards and public trust. It ensures that AI technologies are developed and used in ways that are safe, transparent, and respectful of fundamental rights, fostering a trustworthy AI ecosystem within the EU. Visit the official document on <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=OJ:L_202401689" rel="noopener noreferrer" target="_blank">EUR-Lex</a><a href="https://www.deloitte.com/lu/en/Industries/investment-management/perspectives/eu-ai-act-is-finally-here-requirements-overview.html" rel="noopener noreferrer" target="_blank">Deloitte summary</a> #ArtificialIntelligence #EU #AI #Regulation

EU's AI Act Explained 

Newnex tracks European startup funding in the past month. We tracked $2 billion of capital raise, however the interesting bit, $1.5 billion taken-up by the top-5 startups including Mistral AI ($660m), Black Semiconductor ($279 million including $248 million grants), Volocopter ($220 million), H ($220 million) and CLoover ($125 million). AI Startups: 1. H (France): Raised $220M seed round to build foundational models, competing with Mistral AI and OpenAI.&nbsp;&nbsp;- Investors: Accel (lead), Amazon, UiPath, Eurazeo, Elaia Partners, BpiFrance, Aglaé Ventures, Eric Schmidt, Xavier Niel, FirstMark, Creandum. 2. Mistral AI (France): Raised €600M at €5.8B valuation.&nbsp;&nbsp;- Investors: General Catalyst (lead), Lightspeed, Andreessen Horowitz, Bpifrance, BNP Paribas. 3. Cube AI (France): Raised $2.5M in pre-seed funding to automate back-office tasks in logistics.&nbsp;&nbsp;- Investors: VentureFriends (lead), Eric Schmidt, Xavier Niel, K5 Global, Rodolphe Saadé, Olivier Pomel, Florian Douetteau. 4. Human Native AI (UK): Raised £2.8M seed funding for legal and ethical data for training large language models.&nbsp;&nbsp;- Investors: LocalGlobe (lead), Mercuri. 5. Omi (France): Raised €13M in Series A funding for AI-powered visual generation.&nbsp;&nbsp;- Investors: Dawn Capital (lead). 6. Zeliq (France): Raised €9.2M seed round for AI sales solutions.&nbsp;&nbsp;- Investors: Exor Ventures (lead), Resonance VC. 7. Plancraft (Germany): Raised €12M Series A funding for AI-based video creation solutions.&nbsp;&nbsp;- Investors: Creandum (lead). 8. mika (Germany): Raised €800K in pre-seed funding for generative AI for automated accounting.&nbsp;&nbsp;- Investors: Samen Slimmer (lead). 9. StoryBox (Germany): Raised €5.5M in Series A funding for AI-based video creation.&nbsp;&nbsp;- Investors: Wille Finance (lead), BayBG, High-Tech Gründerfonds (HTGF), CK Ventures, G8 Way Ventures. 10. NcodiN (France): Raised €3.5M for optical interposer technology.&nbsp;&nbsp;- Investors: Elaia, Earlybird Venture Capital, OVNI Capital. 11. Iris.ai (France): Raised €7.64M to enhance its AI engine for scientific research.&nbsp;&nbsp;- Investors: Silverline Capital (lead), European Innovation Council (EIC) Accelerator Fund. Cybersecurity: 1. <a href="https://www.onsecurity.io/" rel="noopener noreferrer" target="_blank">OnSecurity</a> (UK): Raised £5.5M to develop software for testing vulnerable computer systems.&nbsp;&nbsp;- Investors: Gresham House Ventures (lead). Health and Wellness: 1. Voda (UK): Raised £270K pre-seed funding for LGBTQIA+ mental health services.&nbsp;&nbsp;- Investors: Freiraum Ventures (lead), Lightbulb Trust, ULTRA VC. 2. Amber Therapeutics (UK): Raised $100M (£78M) in Series A funding for medical technology.&nbsp;&nbsp;- Investors: New Enterprise Associates (lead), F-Prime Capital, Lightstone Ventures, Intuitive Ventures, Oxford Science Enterprises, 8VC. 3. Natural Cycles (Sweden): Raised $55M in Series C funding for the first contraceptive app.&nbsp;&nbsp;- Investors: Lauxera Capital Partners (lead), Point72 Private Investments, J.P. Morgan (debt facility). 4. CARÁ Health (Estonia): Raised €620K early seed funding for maternity health and wellness.&nbsp;&nbsp;- Investors: Tera Ventures (lead), Startup Istanbul founder Burak Büyükdemir via StartupIst Ventures. Tech &amp; SaaS: 1. Ittybit (UK): Raised £1.5M for software simplifying large file uploads.&nbsp;&nbsp;- Investors: Mercuri (lead), Sure Valley Ventures, Oxford Capital, Baltic Ventures. 2. Slip (UK): Raised €2.9M seed funding for software solutions.&nbsp;&nbsp;- Investors: Adjuvo (lead), Haatch Ventures, Unbundled VC, Side by Side Partnership, angels Dan Elton, Julian Burnett. 3. StructureFlow (UK): Raised £4.7M Series A funding for visual modeling of corporate data.&nbsp;&nbsp;- Investors: Not specified. 4. Swiipr (UK): Raised £6M (€7M) in Series A funding for travel paytech.&nbsp;&nbsp;- Investors: Octopus Ventures (lead), TX Ventures, Solano Partners. 5. Vizcab (France): Extended Series A funding to €9M for LCA software for construction.&nbsp;&nbsp;- Investors: KOMPAS VC (lead), Global Brain, Brick and Mortar Ventures. 6. Zefi.ai (Italy): Raised €1.6M in pre-seed funding for AI analyzing company interactions.&nbsp;&nbsp;- Investors: 360 Capital (lead), 14Peaks Capital, B-Heroes, BIT, Secways, Aticco Ventures, Growth Engine, Vento, Exor Ventures, Halo. 7. Banktrack (Spain): Raised €2M seed round for treasury management software.&nbsp;&nbsp;- Investors: Kfund, 4 Founders Capital, LifeX, ENISA. 8. Resilience (France): Raised $25M for patient remote monitoring.&nbsp;&nbsp;- Investors: Picus Capital (lead), Red River West, existing investors. 9. Faircado (Germany): Raised €3M pre-seed funding for AI-powered second-hand shopping.&nbsp;&nbsp;- Investors: World Fund (lead), Accel, General Catalyst, Lightspeed Venture Partners, NEA, Northzone. 10. Restate (Germany): Raised $7M seed funding for distributed applications.&nbsp;&nbsp;- Investors: Not specified. 11. Claimlane (Denmark): Raised €1.8M seed funding for returns and claims management.&nbsp;&nbsp;- Investors: Vendep Capital. 12. Rows (Germany): Raised €8M for cloud platform-based spreadsheet app.&nbsp;&nbsp;- Investors: Indico Capital Partners (lead), Cherry Ventures, Accel, Lakestar, Armilar Venture Partners. Energy &amp; Mobility: 1. Fuuse (UK): Raised £8.7M for EV charge point management.&nbsp;&nbsp;- Investors: YFM Equity Partners (lead), Par Equity, angel investors. 2. Gireve (France): Raised €20M for European EV charging expansion.&nbsp;&nbsp;- Investors: Partech. 3. Qargo (Belgium): Raised £11M ($14M) Series A for digitizing and decarbonizing trucking.&nbsp;&nbsp;- Investors: Balderton Capital. 4. Volocopter (Germany): Raised €200M Series D for air taxi certification.&nbsp;&nbsp;- Investors: Avala Capital, Atlantia, Continental, NTT, Tokyo Century. 5. Cloover (Germany): Raised $114M seed funding for renewable energy platform.&nbsp;&nbsp;- Investors: Lowercarbon Capital (lead), 9900 Capital, QED. 6. Delta Green (Czech Republic): Raised €2.2M for grid balancing with renewables.&nbsp;&nbsp;- Investors: Tilia Impact Ventures (lead), Credo Ventures, Purple Ventures. Quantum Computing &amp; Advanced Tech: 1. C12 (France): Raised €18M ($19.4M) for quantum computing.&nbsp;&nbsp;- Investors: Varsity Capital, EIC Fund, Verve Ventures, 360 Capital, Bpifrance’s Digital Venture fund, BNP Paribas Développement. 2. Q*Bird (Netherlands): Raised €2.5M for quantum security technology.&nbsp;&nbsp;- Investors: QDNL Participations, Cottonwood Technology Fund, InnovationQuarter. 3. Black Semiconductor (Germany): Raised €254M for graphene-based chip technology.&nbsp;&nbsp;- Investors: Porsche Ventures, Project A Ventures, Scania Growth, Capnamic, TechVision Fonds, German Ministry of Economic Affairs, North Rhine-Westphalia. 4. NcodiN (France): Raised €3.5M for optical interposer technology.&nbsp;&nbsp;- Investors: Elaia, Earlybird Venture Capital, OVNI Capital. 5. Neural Concept (Switzerland): Raised $27M Series B to apply AI for design optimization.&nbsp;&nbsp;- Investors: Forestay Capital (lead), D.E. Shaw group, Alven, Constantia New Business, HTGF, Aster Group. Others: 1. Uprent (Netherlands): Raised €200K pre-seed funding to transform the rental search process with AI.&nbsp;&nbsp;- Investors: Not specified. 2. THIS (UK): Raised £20M Series C for plant-based meat alternatives.&nbsp;&nbsp;- Investors: Planet First Partners. 3. Qargo (Belgium): Raised £11M ($14M) Series A for digitizing and decarbonizing trucking.&nbsp;&nbsp;- Investors: Balderton Capital. 4. Rohlik (Czech Republic): Raised €100M ($118M) for online grocery delivery expansion.&nbsp;&nbsp;- Investors: Index Ventures (lead). 5. Karri (Estonia): Raised £775K pre-seed funding for smart walkie-talkies for kids.&nbsp;&nbsp;- Investors: 468 Capital.---Connect with the global VCs and LPs and privately syndicate and co-invest in venture capital at scale <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

European Startups Raise $2 Billion, with Top 5 Securing $1.5 Billion

Newnex Venture Insights: Trends, Fundings & Investments

Newnex Venture Insights' roundup of venture capital trends delving into the latest disruptive technologies, investments, and thought-provoking discussions shaping the entrepreneurial landscape. Top Stories <a href="https://www.newnex.io/feed/520" rel="noopener noreferrer" target="_blank">AI Revolution Unveiled</a>: Discover how ChatGPT 4o is reshaping the AI landscape and challenging industry giants. <a href="https://www.newnex.io/feed/519" rel="noopener noreferrer" target="_blank">Navigating Uncertainty</a>: Gain insights from Bain &amp; Company's India Venture Capital Report 2024, illuminating strategies amidst market turbulence. <a href="https://www.newnex.io/feed/512" rel="noopener noreferrer" target="_blank">The 'Eat What You Kill' Debate</a>: Join Wall Street's discourse on financial incentives and their implications for market dynamics. Featured Stories <a href="https://www.bloomberg.com/graphics/2023-wall-street-speeds-california-groundwater-depletion/?srnd=homepage-uk" rel="noopener noreferrer" target="_blank">Wall Street's Water Crisis</a>: Investigate the role of financial investors in California's water sustainability, probing the impact on farmland and groundwater reserves. <a href="https://www.newnex.io/feed/506" rel="noopener noreferrer" target="_blank">PremjiInvest's Tech Odyssey</a>: Discover how PremjiInvest is bolstering AI investments and harnessing technological advancements for future growth. <a href="https://www.newnex.io/feed/500" rel="noopener noreferrer" target="_blank">Climate Warriors:</a> Journey with Startup Vaulted Deep securing a $58.3 million deal to combat climate change through underground waste sequestration. Spotlight on Ethics and Innovation <a href="https://www.newnex.io/feed/499" rel="noopener noreferrer" target="_blank">AI Avatars and Ethical Quandaries</a>: Explore the ethical implications raised by Reid Hoffman's AI avatar experiment, sparking crucial conversations about technology and humanity. <a href="https://www.newnex.io/feed/497" rel="noopener noreferrer" target="_blank">Navigating AI Regulation</a>: Gain insights from business leaders and experts as they navigate the complex terrain of AI regulation. Europe's $2.98 billion startup funding Glaut: An Italian startup scaling qualitative research secured $1.4million funding. Investors included Italian Founders Fund, Brainstorm Ventures, Alecla7, Ithaca, BHeroes, Club degli Investitori, Eden Ventures, Delirus Capital, David Clarke, and Pietro Cesati. Carbonfact: A French startup specializing in carbon footprint measurement tools secured $15 million in funding for further development. Investors included Alven, Headline, and Y Combinator. CroBio: An agtech startup based in Cheshire, aiming to revolutionize agriculture through advanced microbial solutions. Investors in its seed round included The Grantham Foundation for the Protection of the Environment, SOSV, Ponderosa Ventures, and Catapult Ventures Group. Vivalyx: A biotech company focused on developing a preservation liquid for organ viability in transplantation raised €5.4 million in seed funding. Investors included Luc Starmans, Bernhard Kugel, Arve Capital, Ashok Rao, and numerous distinguished angel investors. Nusku: A climate technology company headquartered in Bristol secured £1 million in funding for its sustainability efforts, backed by the UK government. Urban Jungle: An insurtech startup raised £11.2 million to revolutionize insurance services with its innovative solutions. Investors included Intact Ventures, Ingka Investments, Mundi Ventures, Eka Ventures, Sony Innovation Fund, and Rob Devey. Birdwingo: A fintech firm based in Prague secured €1.2 million in funding for its financial services platform. Investors included Bienville Capital, company founders, and bank executives. Tuza: A payment processing startup for SMBs, formerly known as Statement, raised £4 million in seed funding. Investors included Connect Ventures, Northzone, Triple Point, and Entrepreneur First. SumUp: A London-based fintech company secured €1.5 billion for its payment solutions from private credit lenders. Investors included Goldman Sachs, AllianceBernstein, Apollo Global Management, Arini, Deutsche Bank AG, Fortress Investment Group, SilverRock Financial Services, Vista Credit Partners, BlackRock, Crestline Investors, Liquidity Capital, Oaktree Capital Management, Sentinel Dome, and Temasek. Made With Intent: A Manchester-based company enhancing e-commerce experiences secured £1.5 million for its personalized shopping platform, with investors including Mercuri, Portfolio Ventures, and Haatch. Ikerian AG: A Swiss developer of healthcare workflow solutions raised $6.18 million in Series A extension funding. Investors included Topcon Healthcare, Inc., Zürcher Kantonalbank, btov Industrial Technologies, Verve Ventures, and private investors. VoltR: A French startup specializing in the second life of lithium batteries secured €4 million in funding from investors including C4 Ventures, Exergon, Pays de la Loire Participations, Anjou Amorçage, and the Chamber of Commerce and Industry. Wayve: A UK-based startup pioneering self-learning approaches for autonomous driving secured $1.05 billion in Series C funding. Investors included SoftBank Group, Nvidia, Microsoft, and Yann LeCun. Stonal: A real estate data management platform secured a strategic investment of up to €100 million from Aareon. CoreWeave: A cloud infrastructure firm for AI secured $1.1 billion in Series C funding from investors including Coatue, Magnetar, Altimeter Capital, Fidelity Management &amp; Research Company, and Lykos Global Management. Futura: An AI education company based in Milan raised €14 million in Series A funding for its educational platform, with investors including Eurazeo, United Ventures, and Axon Partners Group. SLAM Orthopedic: A Dutch startup focused on advanced sensor systems for surgical applications raised €2 million in seed funding from investors including Rising Star Venture Partners, individual investors, and Zeeuws Participatiefonds. everyone energy: A Berlin-based greentech startup secured a seven-figure seed financing round for undisclosed purposes, with investment from High-Tech Gründerfonds and neoteq ventures. Eleos: An insurtech startup secured €3.75 million in a Seed round for its insurance management solutions, with investment from Fuel Ventures and Indico Capital. Insempra: A German biotech firm secured $20 million in Series A financing for its innovative solutions, with investment from EQT Ventures, BlueYard Capital, Possible Ventures, Henkel dx Ventures, Bayern Kapital, and Alante Capital. Cetasol: A Swedish company specializing in maritime sustainability secured €2 million in seed funding from investors including Sarsia, ShipsFocus, and Impact X Capital. Phished: A cybersecurity startup headquartered in Belgium received an additional €7.5 million via a convertible bond from Flemish investment fund Welvaartsfonds. mimic: A Swiss startup challenging US firms in robotics secured a pre-seed round of €2.3 million from investors including Founderful, another.vc, Tiny.vc, and specialized angel investors. Kubos Semiconductor: A UK-based semiconductor firm secured $2 million in funding for its semiconductor solutions from investors including Martin Lamb, Drew Nelson, Geoff Haynes, Development Bank of Wales, FOV Ventures, and S4C Digital Media Limited. Magic Lane: A mapping and location platform secured €3 million for navigation purposes from investor No Such Ventures. 2i: An Edinburgh-based company specializing in testing and quality assurance secured eight-figure funding from Rockpool Investments. Sesame: A Valencia-based startup secured €23 million in fresh funding for its human resources management solutions, with investment from GP Bullhound funds and PSG. Nivoda: A London-based online jewelry marketplace secured $30 million in its Series B funding round from investors including Avenir Growth Capital, Headline, Abstract Ventures, and Canaan Ventures. India's $449 million startup funding Niqo Robotics: Agritech robotics firm Niqo Robotics, previously known as TartanSense, has raised $9 million in a new funding round. Brida Innovation Ventures led the round, with existing investor Omnivore Partners also participating in the funding. Charge Zone: The electric vehicle (EV) charging network Charge Zone has secured a $19 million commitment from British International Investment (BII), the UK’s development finance institution (DFI) and impact investor. DaMENSCH: D2C men’s lifestyle brand DaMENSCH has secured $2.5 million in its extended Series B round from existing investors. Notably, Matrix Partners, Saama Capital, Whiteboard Capital, and A91 Emerging Fund continued their participation in the round. TalkEsport: Mumbai-based esports media platform TalkEsport has recently concluded its pre-Series A funding round, securing $1 million from Saswat Ventures. Dexif: fintech startup, has recently secured $4 million in seed funding, with RTP Global leading the investment round. GO DESi: a startup in the packaged foods sector headquartered in Bengaluru, revealed that it secured $4.9 million in equity investment from Aavishkaar Capital. Poshn: a full-stack foodtech supply chain startup, has announced raising $4 million in equity and $2 million in debt in its pre-Series A funding round. The investment was led by existing investors Prime Venture Partners and Zephyr Peacock India. Knit: SaaS (Software-as-a-Service) startup Knit has announced securing funding of USD 1 million from Endiya Partners, Axilor Ventures, and angel investors. Other investors include JITO Incubation and Innovation Foundation (JIIF), We Founder Circle, Prataap Snacks, Apricot Foods, Workie, and IVY League Ventures. Superplum: Agritech startup Superplum has successfully raised $15 million in its Series A financing round, led by Erik Ragatz, former partner and current senior advisor of private equity firm Hellman &amp; Friedman. Ragatz joins a group of Superplum’s current investors, including Mark Siegel, Dan Rose, Steve Jurvetson, Rick Kimball, Binny Bansal, and Kabir Misra. BharatRohan: a startup specializing in drone-based hyperspectral remote sensing, has secured $2.3 million in funding from investors including Villgro Innovation Foundation, Caspian, RevX, Venture Garage, and other ultra-high-net-worth individuals. Parseable: a cloud-native log analytics platform, has successfully raised $2.75 million in a seed funding round. The round was led by Surge, the venture capital firm Peak XV's scale-up program for early-stage startups, with participation from Amsterdam-based venture capital fund NP-Hard Ventures. Atlan: Data and AI governance company Atlan has secured $105 million in its Series C funding round. The round was led by GIC, Singapore’s sovereign wealth fund, and Meritech Capital. Additionally, existing investors Salesforce Ventures and Peak XV Partners participated in the round. Treacle: a cybersecurity startup, has secured ₹4 crore in a pre-seed round led by Inflection Point Ventures. The company plans to utilize the funds for enhancing technical and business developments, marketing and office expenses, partnerships, and expansion in the Indian market. Meesho: Social commerce platform Meesho has raised $275 million in funding as part of an ongoing round. The investment comes from existing investors such as SoftBank, Prosus, Elevation Capital, and Peak XV Partners. Plotline: headquartered in San Francisco and Bengaluru, is instrumental in facilitating consumer app companies to swiftly and seamlessly customize their applications. Recently, the company secured $2.6 million in funding from Elevation Capital.----- <a href="https://newnex.io/" rel="noopener noreferrer" target="_blank">Newnex - the Global VC Co-Investor Platform</a> - join the global institutional VCs worldwide and co-invest in current and future rounds privately. Free and invite-only.

Newnex's roundup of venture capital and growth-equity insights, fundraisings and investments.

Mastering liquidation preference is crucial for entrepreneurs seeking investment. It safeguards investors' interests, ensuring a fair return in a sale or liquidation. Yet, understanding the nuances between participating and non-participating preferred stock is pivotal, as each carries distinct implications for investor compensation. While a company may boast a unicorn valuation and headline-grabbing exit figures, the reality can be starkly different. In some cases, even with a sale price of $2 billion, founders and early investors may walk away with zero returns. Let's understand how that could be possible. Founder Shares vs. Preference Shares: Founder Shares:Founder shares, usually common shares, are positioned at the bottom of the priority list in terms of receiving proceeds. In a liquidation event, common shareholders are entitled to the remaining proceeds after all preference shareholders have been compensated. Preference Shares:Preference shares are held by investors, typically from the latest funding round, and have the top priority in receiving proceeds. For instance, if the last funding round was Series E, Series E investors are first in line to receive their proceeds upon a company's liquidation. Liquidation Preference: Understanding liquidation preference is crucial for investors and entrepreneurs as it determines: - Whether they will recoup their initial investment.- Whether they stand to make a profit on their investment. Liquidation preference outlines the order in which shareholders are paid out during a company's liquidation, ensuring that preference shareholders are compensated before common shareholders. Non-Participating Preferred Shares: With non-participating preferred shares, investors have the option to choose between receiving either their liquidation preference amount or their share of the remaining proceeds, whichever is greater, but not both. If the liquidation proceeds are sufficient to cover the investors' liquidation preference, they will opt to take that amount and forego any further participation in the distribution of remaining proceeds. However, if the liquidation proceeds exceed the liquidation preference, investors may convert their preferred shares into common shares and receive their proportionate share of the remaining proceeds alongside common shareholders. Example: Let's say Investor A invested $1 million and owns 40% of the company with a 1x non-participating liquidation preference. If the company is sold for $5 million, Investor A can choose to either: - Take their $1 million back (their liquidation preference), leaving $4 million to be distributed among other stakeholders.- Opt to convert their preferred shares to common shares and receive their proportional share (40%) of the remaining proceeds alongside common shareholders. Participating Preferred Stock: Participating preferred stock entitles investors to both their liquidation preference and their share of the remaining proceeds, even if that results in receiving more than the liquidation preference amount. This feature allows investors to potentially achieve a higher return on their investment, particularly if the company is sold at a valuation significantly above the initial investment amount. Example: Now, consider the same scenario with Investor B, who invested $1 million and owns 40% of the same company but with a 1x participating liquidation preference. If the company is sold for $5 million: - Investor B first receives their $1 million liquidation preference.- Then, they further participate in the distribution of the remaining proceeds alongside common shareholders, based on their ownership percentage. IPO Exit: Understanding the Dynamics An Initial Public Offering (IPO) represents a significant liquidity event for a company, but it differs substantially from other forms of liquidation events, such as a company sale. The key distinction lies in the treatment of shareholdings and the timing of liquidity for investors. Conversion to Common Shares:Before a company goes public and its shares are listed on the stock market, all existing share classes, including preference shares held by investors, are typically converted into common shares. This conversion equalizes the footing between founders and investors, as all shareholders hold common shares. Lock-Up Period:However, one critical aspect of IPOs is the lock-up period. After the IPO, shareholders, including founders and pre-IPO investors, are typically subject to a lock-up period, usually lasting around six months. During this time, they are prohibited from selling their shares in the public markets. Importance of Post-Lock-Up Price:As a result, the immediate "pop" in share price on the first day of trading following the IPO matters less to founders and pre-IPO investors. What becomes more significant is the price of the stock once the lock-up period expires. After the six-month lock-up period, shareholders are free to sell their shares in the public markets, and the stock's performance during this period becomes crucial. Understanding the nuances of liquidation preference, including the distinction between participating and non-participating preferred stock, is essential for all parties involved in venture capital transactions. It shapes the distribution of proceeds in a liquidation event and influences the dynamics of investor-founder relationships. By comprehensively grasping these concepts, stakeholders can navigate venture capital deals with clarity and confidence.

Mastering Liquidation Preference: Key Considerations for Entrepreneurs and Investors

European and Indian Startups Fundraising News

European Startups funded recently - Newnex Fortnight

12 March 2024 We are delighted to bring the Newnex Fortnight India fundraising tracker for the thriving Indian venture capital ecosystem, produced in partnership with the <a href="https://www.startupeuropeindia.net/" rel="noopener noreferrer" target="_blank" style="color: windowtext;">Startup Europe India Network</a>. In the past two weeks, Newnex Co-Investor Network has counted a total of over $340+ million in fundraising and deal-making activities in India. <a href="https://mokobara.com/" rel="noopener noreferrer" target="_blank">Mokobara</a>, the direct-to-consumer (D2C) luggage brand, has secured $12 million in its Series B funding round. Peak XV Partners, formerly known as Sequoia Capital India, led the funding, with participation from existing investors Sauce VC and Saama Capital.&nbsp;<a href="https://shadowfax.in/" rel="noopener noreferrer" target="_blank">Shadowfax</a>, a leading logistics service provider catering to hyper-local and on-demand delivery businesses in India, has successfully raised $100 million in a recent funding round. TPG NewQuest took the lead in Shadowfax's Series E financing round, incorporating some secondary transactions. Notable existing supporters such as Flipkart, Mirae Asset Venture Investments, IFC, Nokia Growth Partners, Qualcomm, Eight Roads Ventures, and Trifecta Capital also joined in the latest funding initiative.&nbsp;<a href="https://www.mswipe.com/" rel="noopener noreferrer" target="_blank">Mswipe Technologies</a> has concluded a $20 million growth equity round, with Alpha Wave Global leading the investment and the involvement of existing investors. Having recently obtained a payment aggregator (PA) license from the Reserve Bank of India (RBI), the digital payments company has amassed over $125 million in funding from prominent investors like Matrix Partners, B Capital, DSG Consumer Partners, Epiq Capital, UC-RNT, and Ola. The newly secured funds will play a crucial role in Mswipe's plans to enhance its merchant payment network, as well as bolster product development and technological infrastructure.&nbsp;<a href="https://digantara.co.in/" rel="noopener noreferrer" target="_blank">Digantara</a>, a startup in the space technology sector, has secured $1.88 million in additional funding as part of an extended Series A round. The funding was led by Naman Finance And Investment Private Limited (NFAI), with participation from SIDBI Venture Capital.&nbsp;<a href="https://intrcity.com/" rel="noopener noreferrer" target="_blank">IntrCity</a>, the mobility platform that operates SmartBus and RailYatri, has secured an additional around $4.5 million in its Series C funding round. Mirabilis Investment Trust led this investment round, and it included contributions from existing investors such as Nandan Nilekani's family trust, Omidyar Network India, and Ujamaa Ventures based in the United States. The funds raised will be utilized by IntrCity to improve its product offerings, expand user acquisition efforts, and further develop services along its hub routes to cater to its expanding travellers base.&nbsp;<a href="https://zvolv.com/" rel="noopener noreferrer" target="_blank">Zvolv</a>, a prominent global hyper-automation company operating in India, the US, MEA, Australia, and New Zealand, has successfully raised ₹16 crore in funding. The funding round was led by Silverneedle Ventures, with participation from existing investors including JSW Ventures and others. Zvolv intends to utilize the newly acquired funds to expand and reinforce its extensive LCNC (Low Code No Code) Hyper-automation capabilities. The focus will involve integrating a trust-based generative AI layer into the next generation of enterprise AI applications.&nbsp;<a href="https://www.credable.in/get-in-touch" rel="noopener noreferrer" target="_blank">CredAble</a>, a fintech startup, has secured $10 million in a recent funding round from Equentia Natural Resources, based in Singapore.&nbsp;<a href="https://ei.study/" rel="noopener noreferrer" target="_blank">Educational Initiatives (Ei)</a>, an education software company, has successfully raised approximately $20 million in a secondary funding round from the HCL Group. Additionally, as part of the transaction, the IT company will acquire a minority stake in the Bengaluru-based Educational Initiatives from the private equity firm Gaja Capital.&nbsp;<a href="https://exlyapp.com/" rel="noopener noreferrer" target="_blank">Exly</a>, formerly known as MyScoot and a provider of business tools, has secured $6.2 million in a new funding round led by Chiratae Ventures. The round also saw participation from existing investors Mayfield India and Venture Highway. Exly's suite of offerings encompasses course builders, appointment schedulers, a marketing suite, as well as customer relationship management (CRM) and lead capturing conversion tools tailored for creators and solo-entrepreneurs.&nbsp;<a href="https://cardiotrack.io/" rel="noopener noreferrer" target="_blank">Cardiotrack</a>, a company specializing in data-centric healthcare screening technology and services delivered through health and life insurance providers, has successfully raised $2 million in a pre-series-A funding round. The funding was led by Girish Narasimhan and co-investor Y S Shashidhar. Notably, Cardiotrack had previously secured an angel investment of $1.6 million from a group of Ultra High Net Worth Individuals (UHNIs).&nbsp;AI startup <a href="https://dubpro.ai/" rel="noopener noreferrer" target="_blank">Dubpro.ai</a> has secured $500,000 in its seed funding round, with Venture Catalysts leading the investment. Other participants in the round include Anicut Capital, 9Unicorns, JJFO, and FirstCheque.&nbsp;<a href="https://www.zactortech.com/" rel="noopener noreferrer" target="_blank">Zactor Tech</a>, a brand specializing in financial wellness and literacy, has successfully raised an undisclosed amount in its pre-seed funding round. The funding, co-led by High-Net-Worth Individuals (HNIs), places the company's valuation at $3 million. The raised funds are earmarked for product development, user acquisition, and initiatives related to financial literacy.&nbsp;Proptech firm <a href="https://www.bandhoo.com/" rel="noopener noreferrer" target="_blank">Bandhoo</a> has secured $0.9 million in a pre-Series A funding round led by Venture Catalysts. The funding round also saw participation from Neeraj Aggarwal, Manish Gupta, S Srinivasan, Amit Khera, and Abhishek Kumar. Notably, Bandhoo had previously raised $1.5 million in its seed round in June 2021, with contributions from Unitus, InfoEdge Ventures, and Bharat Innovation Fund. Generative AI startup <a href="https://ema.co/" rel="noopener noreferrer" target="_blank">Ema</a> has successfully raised $25 million in its inaugural funding round. The round was led by Accel, Section 32, and Prosus Ventures. Additional participants include Wipro Ventures, Venture Highway, AME Cloud Ventures, Frontier Ventures, Maum Group, and Firebolt Ventures. Noteworthy high-profile angels who joined the round comprise Meta COO Sheryl Sandberg, Yahoo co-founder Jerry Yang, and Snowflake chief executive Sridhar Ramaswamy.&nbsp;Identity verification startup <a href="https://idfy.com/" rel="noopener noreferrer" target="_blank">IDfy</a> has secured $27 million in a combination of primary and secondary fundraising. Elev8, KB Investment, and Tenacity Ventures are among the contributors to this funding round.&nbsp;<a href="https://louisa.ai/" rel="noopener noreferrer" target="_blank">Louisa AI</a>, an AI-powered platform, has raised $5 million in seed funding to further develop its technology focused on systematizing "serendipity" in professional settings. Born from a concept at Goldman Sachs in 2018, Louisa AI utilizes network effects to facilitate business connections for sales and deal-making. The seed funding round garnered support from various investors, including Oxford University’s investment arms, early-stage venture capitalists such as Palm Drive VC, Evolution VC, Nucleus VC, Gaingels, and former Goldman Sachs partners, colleagues, clients, friends, and family offices.&nbsp;Social media startup <a href="https://join.hunch.in/43MnmhO" rel="noopener noreferrer" target="_blank">Hunch</a> has successfully raised $23 million in a Series A funding round. The round was led by Alpha Wave and Hashed Emergent, based in South Korea.&nbsp;Edtech start-up <a href="https://www.mycaptain.in/" rel="noopener noreferrer" target="_blank">MyCaptain</a> has secured ₹14 crore in funding from investors including Inflection Point Ventures, MyNavi, Piper Serica, Super Capital, and Ankur Capital. The company aims to expand its hybrid programs into various cities, establishing over four regional sales centres. Additionally, MyCaptain is planning to introduce new programs with a target of reaching a portfolio milestone of approximately 50 beginner courses and five placement readiness programs.&nbsp;Contract manufacturing startup <a href="http://www.zetwerk.com/" rel="noopener noreferrer" target="_blank">Zetwerk</a> has secured $20 million in fresh investments from venture debt and private equity firm Wheelhouse Venture Capital. Notably, Rakesh Gangwal, the co-founder of Indigo Airlines, made the investment through the venture firm, Zetwerk.&nbsp;<a href="https://www.theayurvedaexperience.com/" rel="noopener noreferrer" target="_blank">The Ayurveda Experience (TAE)</a>, a direct-to-consumer company specializing in Ayurvedic beauty and health products, has raised $27 million in a funding round led by Singapore-based venture investment firm Jungle Ventures. The round also witnessed the participation of investors such as SIDBI Ventures, Anicut Capital, and Sharrp Ventures (a part of the Mariwala Family Office associated with consumer goods major Marico). In this funding, approximately $15 million was allocated as primary funding for the company, while the remaining funds were directed towards secondary share sales by existing shareholders.&nbsp;Direct-to-consumer (D2C) skincare firm <a href="https://foxtale.in/" rel="noopener noreferrer" target="_blank">Foxtale</a> Consumer has secured approximately $14 million in fresh equity funding. The funding round was led by Singapore-based Panthera Growth Partners, with participation from the company's existing investors, Matrix Partners India, and Kae Capital.&nbsp;<a href="https://www.planetspark.in/" rel="noopener noreferrer" target="_blank">PlanetSpark</a>, an edtech platform based in Gurugram, has secured $17 million in an extended Series B funding round led by Prime Venture Partners through Seabright. Other participants in the round include InnoVen Capital, Alteria Capital, myPat, GGT3 Ventures, Ashish Gupta, and IAN Investors. The company's co-founders, Maneesh Dhooper and Kunal Malik, also made investments.&nbsp; <a href="https://abcoffee.in/" rel="noopener noreferrer" target="_blank">abCoffee</a>, a speciality coffee company with tech-enabled grab-and-go services, has successfully raised $3.4 million in its Series A funding round. Nexus Venture Partners led the investment, with additional participation from Tanglin Venture Partners, the company's existing investor. This funding follows a $2 million seed funding round secured in September of the previous year, with contributions from Tanglin, 100X VC, Panthera Peak, OTP Venture Partners, and various angel investors.&nbsp;<a href="http://www.bummer.in/" rel="noopener noreferrer" target="_blank">Bummer</a>, a direct-to-consumer apparel company, has secured Rs 9.25 crore in a funding round, with leading participation from Gruhas' Collective Consumer Fund, backed by Nikhil Kamath. Fluid Ventures, a D2C-focused venture firm and an existing investor in Bummer, also took part in this funding round. The investment, made through fresh shares, will be entirely allocated to the company's growth and development.&nbsp;---&nbsp;<a href="https://www.newnex.io/discussions" rel="noopener noreferrer" target="_blank">Join Newnex - the global LP, VC and startup co-investor Network and Platform. </a>Bring together co-investors at scale.&nbsp;The future is digital: go beyond your immediate network and get your investments and fundraisings closed rapidly.&nbsp;&nbsp;<a href="https://www.startupeuropeindia.net/" rel="noopener noreferrer" target="_blank">Join Startup Europe India Network:</a> Are you a startup, investor, corporate, expert active in Europe and India Tech or Climate? Join Startup Europe India Network to connect, engage and collaborate&nbsp;with the fast-growing Indian ecosystem&nbsp;<a href="http://www.startupeuropeindia.net/" rel="noopener noreferrer" target="_blank">www.startupeuropeindia.net</a>

Indian Startups Funded Recently

Are you building or scaling a startup? Are you managing a small firm? We are listing the tools and resources that can come in-handy for your startup or firm development, management and marketing. CRMs Monday.com. <a href="https://monday.com" rel="noopener noreferrer" target="_blank">https://monday.com/</a>Pipedrive <a href="https://www.pipedrive.com" rel="noopener noreferrer" target="_blank">https://www.pipedrive.com/</a>Zoho CRM <a href="https://www.zoho.com/crm" rel="noopener noreferrer" target="_blank">https://www.zoho.com/crm/</a> Sending Newsletters Beehiv <a href="https://www.beehiiv.com" rel="noopener noreferrer" target="_blank">https://www.beehiiv.com/</a>Email Octopus <a href="https://emailoctopus.com" rel="noopener noreferrer" target="_blank">https://emailoctopus.com/</a>Brevo <a href="https://www.brevo.com" rel="noopener noreferrer" target="_blank">https://www.brevo.com/</a> Business Email Platforms: Google Mail <a href="http://www.gmail.com" rel="noopener noreferrer" target="_blank">www.gmail.com</a>Zoho Mail <a href="https://www.zoho.com/mail?zsrc=fromproduct" rel="noopener noreferrer" target="_blank">https://www.zoho.com/mail/</a> Mail Sending Providers: Mailgun <a href="https://www.mailgun.com" rel="noopener noreferrer" target="_blank">https://www.mailgun.com/</a>Sendgrid <a href="https://sendgrid.com" rel="noopener noreferrer" target="_blank">https://sendgrid.com/</a>Brevo <a href="https://www.brevo.com/" rel="noopener noreferrer" target="_blank">https://www.brevo.com/</a> Push notifications:Firebase <a href="https://firebase.google.com" rel="noopener noreferrer" target="_blank">https://firebase.google.com/</a> Mobile app development: Expo Go for React Native dev: <a href="https://expo.dev/client" rel="noopener noreferrer" target="_blank">https://expo.dev/client</a> Code Management: Github <a href="https://github.com" rel="noopener noreferrer" target="_blank">https://github.com/</a>Gitlab <a href="https://about.gitlab.com" rel="noopener noreferrer" target="_blank">https://about.gitlab.com/</a> We are just getting started. Would you like to add your favourite tool to the list? Leave a comment or tweet (X) us on @newnexhq

Startup Management, Marketing, Sales and Development Platforms and Resources

We tracked $100 million in fundraising and deal-making in the past fortnight. Newnex Fortnight India is the fundraising track of the flourishing Indian venture capital ecosystem. Published in collaboration with the <a href="https://www.newnex.io/blogs/venture-capital/www.startupeuropeindia.net" rel="noopener noreferrer" target="_blank">Startup Europe India Network</a> <a href="http://www.larkai.in/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 112, 192);">Larkai Healthcare</a>, an innovative medical technology company, has successfully raised $500,000 in its seed funding round. The funding was co-led by FAAD Network, QI Ventures, RTAF, and supplemented by additional government grants. The raised capital will be utilized to enhance the company's technological capabilities and expand its sales channels through strategic investments. Larkai Healthcare specializes in groundbreaking biomedical innovations with a focus on early detection of heart impulse and valvular diseases within 15 seconds. They also offer a smart inhaler cap to minimize drug wastage in asthma or pulmonary tract disorder treatments, along with a lightweight and cost-effective disinfection tunnel among their diverse range of solutions.&nbsp;<a href="about:blank" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 112, 192);">Settl</a>, a co-living operator, has successfully raised Rs 10 crore in its pre-Series A funding round from Gruhas and We Founder Circle. The capital infusion is intended to fuel the expansion of Settl's business. The funding round also saw participation from Anthill Ventures, Inflection Point Ventures, Ah! Ventures, Nila Spaces Limited, Soonicorn Ventures, Awficacy Capital, Pai Ventures LLP, and Ekyum.&nbsp;Gurugram-based startup, <a href="about:blank" rel="noopener noreferrer" target="_blank">Slurrp Farm</a>, specializing in children's snacks and meals, has recently secured a fresh investment of Rs 59.9 crore in a funding round featuring a mix of new and existing investors. This marks a return to capital acquisition for the company after a hiatus of nearly two years. Among the investors, existing backers Fireside Venture and Raed Capital contributed Rs 12.4 crore and Rs 5.48 crore, respectively. New investors Alkemi Ventures and Madhurima International each invested Rs 17.5 crore, while Sharrp Ventures, the investment office of the Harsh Mariwala family, also participated with an investment of Rs 7 crore.&nbsp;In a recent funding round, Chennai-based health-tech platform <a href="https://www.curebay.com/" rel="noopener noreferrer" target="_blank">Curebay</a> has successfully raised Rs 61.8 crore, with existing investor Elevar Equity taking the lead. Following the additional funding, Elevar Equity now holds the largest external stake in the company at 34.08%, followed by Hemani Industries and InCred Wealth.&nbsp;<a href="https://countrydelight.in/" rel="noopener noreferrer" target="_blank">Country Delight</a>, the dairy brand, has successfully raised Rs 164.4 crore in a Series E funding round, attracting support from both new and existing investors. This funding marks a return to capital acquisition for the Gurugram-based startup after a hiatus of over 20 months. Temasek took the lead in the round, contributing Rs 78.16 crore, while Seviora Capital, a new investor, injected Rs 57.77 crore into the Series E round. Additionally, existing investor Venturi Partners participated by contributing Rs 28.55 crore in this investment round.&nbsp;In an extended Series A round, mental health startup <a href="https://www.amahahealth.com/" rel="noopener noreferrer" target="_blank">Amaha</a> (formerly InnerHour) has secured $4.4 million in funding from Fireside Ventures. This marks the first fundraising effort for the Mumbai-based company in the last two years. Amaha, developed by therapists and psychiatrists with global experience, is dedicated to delivering quality mental health care and addressing the treatment gap in India. The startup has been valued at approximately Rs 177.2 crore or $21.35 million. To date, Amaha has raised around $10 million from investors such as Lightbox Ventures, Capricorn Partners, Pankaj Sahni, Hitesh Oberoi, and Ashish Bhargava, among others.&nbsp;In a Series B funding round, supply chain startup <a href="about:blank" rel="noopener noreferrer" target="_blank">Wiz Freight</a> has secured&nbsp;$11.24 million, with Japan-based venture capital firm SBI Investments leading the investment. This funding marks the first capital infusion for the Chennai-based startup in over 20 months.&nbsp;<a href="https://www.getonecard.app/" rel="noopener noreferrer" target="_blank">OneCard</a>, a mobile-first credit card startup, has successfully raised $11.44 million in debt from Alteria Capital. This marks the second round of debt funding for the company within the past few months. According to regulatory filings with the Registrar of Companies, the board at OneCard passed a special resolution to issue 9,500 Series B debentures at an issue price of Rs 1,00,000 each, resulting in a total funding of Rs 95 crore.&nbsp;In the Series C funding round, <a href="https://www.akshayakalpa.org/" rel="noopener noreferrer" target="_blank">Akshayakalpa Organic</a>, the organic dairy startup, has successfully raised $12 million. A91 Partners took the lead in the round with an investment of Rs 64.8 crore, and existing investors Rainmatter Capital and British International Investment, the UK’s development financial division, contributed Rs 18.6 crore and Rs 16.6 crore, respectively.Top of Form&nbsp;<a href="https://toothsi.makeo.app/473GOaC" rel="noopener noreferrer" target="_blank">MakeO</a>, the parent company of dental tech startup Toothsi and skincare brand Skinnsi, has successfully raised $16 million in a funding round led by 360 ONE Asset and the investment office of Ashish Kacholia. Existing investors Eight Roads Ventures, Paramark Ventures, IIFL, and the family office of Medlife’s co-founders also participated in the round. With the recent funding, MakeO has raised a total of $90 million across equity and debt rounds. The company plans to utilize the fresh funds to expand its geographic footprint and scale its experience centers throughout the country.&nbsp;In a pre-Series A funding round, B2B-focused SaaS start-up <a href="https://glamplus.in/" rel="noopener noreferrer" target="_blank">Glamplus</a> has secured ₹16.5 crore from investors including Upsparks, Eagle10 Ventures, ITI Growth Opportunities Fund, and Inflection Point Ventures. Notable participation also came from Kube VC and prominent investors like Gopal Krishna Varshney and IR Capital Partners. The company has announced that the funds will be utilized for B2B expansion in Tier I and Tier II cities, as well as to facilitate entry into international markets.&nbsp;In its Series A funding round, custom manufacturing platform <a href="https://app.karkhana.io/login" rel="noopener noreferrer" target="_blank">Karkhana.io</a>, which serves manufacturing MSMEs, has successfully raised $6.3 million. The round was led by Arkam Ventures and Susquehanna Asia Venture Capital, with participation from existing investor Vertex Ventures Southeast Asia and India. The funds raised will be utilized by Karkhana.io to expand its supplier base, improve its electronics supply chain, and support its expansion plans across the United States and Europe. Karkhana.io specializes in providing sourcing and contract manufacturing solutions to original equipment manufacturers (OEMs) and technology companies. The platform collaborates with manufacturing MSMEs in India, delivering customized manufacturing solutions across various product categories such as electric vehicles, medical equipment, consumer electronics, aerospace, and more, addressing small batch to mass production requirements.&nbsp;Bengaluru-based wealthtech startup <a href="http://www.fisdom.com/" rel="noopener noreferrer" target="_blank">Fisdom</a> is in the process of raising approximately $5 million from its existing investor PayU as part of its ongoing Series C round. In the previous year, Fisdom secured close to $14 million from existing investors like PayU and Quona Capital at a valuation of around $145 million. ----VCs, LPs, Family Offices, Asset Managers and Startups - get access to Newnex - <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a> Join the global LP and VC&nbsp;co-investment platform&nbsp;for managing and collaborating co-investors at scale. The future is digital: go beyond your immediate network and get your investments and fundraisings closed rapidly.&nbsp;

09 January 2024&nbsp;Newnex team wishes you a Happy New Year 2024. Good times on the horizon. The past few weeks fundraising in Europe has been rather slow given the holiday period. We tracked $145m in European VC fundings. Gaining expertise in creating hybrid bikes designed for extended journeys, <a href="http://www.ginebikes.com/" rel="noopener noreferrer" target="_blank">GIN E-Bikes</a> has secured a funding of £510,000 from Toloka.vc, a Ukrainian investment firm. The arrangement includes a debt component, with quarterly interest payments to the investors.&nbsp;In its inaugural funding round, <a href="about:blank" rel="noopener noreferrer" target="_blank">Lumian</a>, an energy platform operating in Turkey and Germany, has successfully raised $3.2 million. With support from DOMiNO Ventures and energy sector expert İsmail Ferhat Özlü, Lumian seeks to enhance its sales volume in global markets through this new investment.&nbsp;<a href="http://www.apollotherapeutics.com/" rel="noopener noreferrer" target="_blank">Apollo Therapeutics</a>, a biopharmaceutical company, has completed its Series C financing with a second close, securing an additional $33.5 million in December 2023. This brings the total funds raised by the company in 2023 to $260 million, furthering its commitment to translating medical research into groundbreaking medicines. Patient Square Capital spearheaded the round, with participation from new investors, including M&amp;G plc and two significant US public pension plans, along with continued support from existing investor Rock Springs Capital.&nbsp;<a href="https://maninamedtech.com/" rel="noopener noreferrer" target="_blank">Manina Medtech</a>, a startup based in Catalonia, has successfully raised €1.75 million in funding to enhance the efficacy of IVF embryo implantation. Medex Partners spearheaded the funding round, accompanied by investments from a consortium of business angels, and backing from the Ministerio de Ciencia e Innovación through its national scientific research and transfer program.&nbsp;<a href="http://robinai.com/" rel="noopener noreferrer" target="_blank">Robin AI</a>, an AI-powered legal copilot, has disclosed the successful completion of its Series B funding round, raising $26 million. The funding, led by Temasek, a global investment company based in Singapore, brings the total funding for the company to $43.6 million. Notable participation in the Series B round comes from investors such as QuantumLight, Plural led by Taavet Hinrikus, and AFG Partners.&nbsp;<a href="https://melp.com/" rel="noopener noreferrer" target="_blank">MELP</a> (Medical services, Employee benefits, Lifestyle &amp; Longevity, and Protection), a Vilnius, Lithuania-based startup focusing on digital employee well-being management, has successfully raised €635,000 in an early seed stage funding round led by Coinvest Capital. The round also saw participation from business angels based in Lithuania and the UK. The newly acquired funds will be utilized to expedite the startup's international expansion.&nbsp;<a href="https://www.bumper.co/" rel="noopener noreferrer" target="_blank">Bumper</a>, a fintech startup based in London, specializing in facilitating flexible payments for car repairs, has successfully concluded a €46 million Series B fundraising to fuel its growth. The funding structure includes €17.25 million in equity and €28.75 million in debt. This round brings Bumper's total funding to €61 million to date. Autotech Ventures spearheaded the investment, and notable participants include Shell Ventures, JLR’s InMotion Ventures, Porsche Ventures, and Revo Capital.&nbsp;Dutch startup <a href="https://nuwapen.com/" rel="noopener noreferrer" target="_blank">Nuwa</a>, creator of the world's most advanced pen that digitizes handwriting on paper, has successfully secured €1.5 million in funding. The investment was provided by a prominent US consumer goods company, bringing Nuwa's total seed funding for the previous year to €2.5 million.&nbsp;<a href="https://theselfspace.com/" rel="noopener noreferrer" target="_blank">Self Space</a>, a pioneer in on-demand mental health services on the high street, has successfully secured €2.6 million in seed funding, with Redrice Ventures, a purpose-driven venture capital firm, leading the investment. This fresh capital injection will enable Self Space to address growing demand by expanding its same-day mental health support services throughout the UK and across a comprehensive spectrum of mental health needs. Paris-based startup <a href="http://www.nabla.com/" rel="noopener noreferrer" target="_blank">Nabla</a>, specializing in an AI-powered tool that creates clinical notes from patient consultations, has secured $24 million in a Series B funding round, bringing the total funding to $43 million. The investment was led by global VC Cathay Innovation, with participation from French investor Zebox Ventures, founded by tech investor Rodolphe Saadé. In 2021, Nabla had raised €17 million from UK VC firstminute capital, French billionaire Xavier Niel, and Sweep CEO Rachel Delacour. The funds will support the company's expansion in the US. --- Get access to Newnex - <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>Join the global VC LP and GP network. Scale VC fund and direct co-investments.&nbsp;

The Indian market is on a rapid growth trajectory. In collaboration with <a href="https://www.newnex.io/blogs/venture-capital/www.startupeuropeindia.net" rel="noopener noreferrer" target="_blank">Startup Europe India Network</a>, we're expanding our fundraising track, Newnex Fortnight India, to India's rapidly booming venture capital ecosystem. We tracked $670 million+ in fundraising and deal making in the past weeks. <a href="https://www.ayefin.com/" rel="noopener noreferrer" target="_blank">Aye Finance</a>, an Indian startup specializing in digital lending services for small businesses, has secured $37.18 million in a recent funding round led by British International Investment. The company aims to use the funds to further support the growth of micro-enterprises and help employees increase their incomes. This Series F funding brings Aye Finance's total fundraising to almost $200 million and includes contributions from Waterfield Fund of Funds, along with continued support from existing investor A91 Partners. Notably, in 2020, the startup raised $27.5 million in its Series E funding round with CapitalG, an investment arm of Alphabet, leading the way.&nbsp;In a recent funding round, <a href="about:blank" rel="noopener noreferrer" target="_blank">Vegrow</a>, a B2B marketplace specializing in fruits, secured $46 million in primary and secondary funding. The round was spearheaded by GIC, with participation from current investor Prosus Ventures, as well as Matrix Partners India, Elevation Capital, and Lightspeed.&nbsp;The distribution-as-a-service platform <a href="https://www.ofscale.in/" rel="noopener noreferrer" target="_blank">ofScale</a> has successfully raised $375,000 in a pre-seed funding round. First Cheque led the round, and there was participation from Matrix Partners India DeVC, Relentless VC, and other angel investors such as Abhishek Goyal, Mekin Maheshwari, and Revant Bhate.&nbsp;<a href="about:blank" rel="noopener noreferrer" target="_blank">Aliste Technologies</a>, a startup focused on smart home automation, has secured $1 million in a recent funding round, with YourNest Venture Capital and Artha Venture Fund leading the investment. The funding round also included contributions from Dholakia Ventures, KRS Jamwal, Anikarth Ventures, and others. Among the existing backers is 100X.VC. Currently establishing a significant presence in the Delhi-NCR region and recently entering the Bangalore market, Aliste Technologies intends to utilize the newly acquired capital to expand its reach across India and enhance brand awareness initiatives. <a href="about:blank" rel="noopener noreferrer" target="_blank">Agilitas Sports</a>, the sporting equipment startup, has successfully raised Rs 100 crore in a funding round led by Nexus Venture Partners. This additional capital infusion comes a few months after Agilitas secured Rs 430 crore in its inaugural funding round from Convergent Finance LLP, an investment management and advisory partnership led by Harsha Raghavan.&nbsp;<a href="https://linktr.ee/betterspace.care" rel="noopener noreferrer" target="_blank">BetterSpace</a>, a mental health-tech startup based in Raipur, Chhattisgarh, has secured ₹4.5 million in its first pre-seed funding round, with prominent startup community-builder and accelerator PedalStart leading the investment. Previously relying on bootstrap funding, this capital injection will be utilized by the company to enhance its existing offline and online services, develop a new product range including games and toolkits, improve marketing and brand visibility, optimize technology and the app for broader accessibility across various devices, and attract and acquire talent, among other strategic initiatives.&nbsp;The investment division of the UK retail bank M&amp;G has taken the lead in a funding round of $340 million for <a href="about:blank" rel="noopener noreferrer" target="_blank">Udaan</a>, a business-to-business e-commerce startup. This marks one of the largest financing rounds secured by an Indian startup in 2023. Udaan, headquartered in Bengaluru, assists merchants in smaller Indian cities and towns in obtaining inventories from major brands and gaining access to working capital. The new funds, including some convertible debt, were also contributed by existing investors Lightspeed Venture Partners and DST Global. The Series E funding, subject to regulatory approval, is a significant boost for Udaan, which has focused on cost reduction and efficiency improvements over the past two years. Despite competition from various players, including Mukesh Ambani's $100 billion Reliance Retail, the largest retail chain in India, Udaan continues to make strides in the business-to-business e-commerce space. In a Series B funding round, Exponent Energy, a rapid-charging startup focused on electric vehicles, <a href="about:blank" rel="noopener noreferrer" target="_blank">exponent.energy</a> has successfully raised $ 26.4 million. The round was led by Eight Roads Ventures, with a strategic investment from TDK Ventures. Additionally, all existing investors, including Lightspeed, YourNest VC, 3one4 Capital, AdvantEdge VC, and the family office of Pawan Munjal, participated in this funding round.&nbsp;<a href="https://farmley.com/" rel="noopener noreferrer" target="_blank">Farmley</a>, a healthy snacking brand, has secured $6.7 million in a pre-Series B funding round. The funding was led by BC Jindal Group, with participation from existing investors DSG Consumer Partners, Omnivore, and Alkemi Partners. DSG and Alkemi were also leaders in a $6 million Series A round for Farmley in August of the previous year, and the company had previously raised $2 million in a seed round in 2020 from Omnivore and Insitor. The new funding will be utilized by Farmley to expand its presence across offline retail touchpoints and enhance brand-building initiatives. Notably, the brand recently enlisted former Indian cricketer Rahul Dravid as its brand ambassador.&nbsp;<a href="https://www.peptris.com/" rel="noopener noreferrer" target="_blank">Peptris</a>, an AI drug discovery startup, has successfully raised $1 million in its pre-seed funding round, with Speciale Invest leading the investment. The funds obtained will be directed towards intensifying the company's initiatives in drug research and discovery, with a particular emphasis on advancing AI-driven solutions. Peptris aims to use the funding to focus on creating new treatments for challenging targets, particularly in the fields of rare diseases, inflammation, and oncology.&nbsp;<a href="http://houseeazy.com/" rel="noopener noreferrer" target="_blank">HouseEazy</a>, an online marketplace for pre-owned homes, has secured $1 million in a seed funding round led by Antler, with participation from India Accelerator, AC Ventures, Agility Ventures, Finvolve Ventures, Pirojsha Godrej, and Sandeep Aggarwal, the founder of Droom. The proptech firm had previously raised $375,000 in a pre-seed round in June of the previous year. The newly acquired funds will be utilized by HouseEazy to enhance its distribution channels and strengthen its technological capabilities, according to a press release from the company.&nbsp;Fintech firm <a href="https://bit.ly/2MYK5i5" rel="noopener noreferrer" target="_blank">InCred</a> has achieved unicorn status, having raised $60 million in a Series D funding round from both new and existing investors. InCred Wealth, the wealth management entity of InCred, spearheaded the funding with an investment of $36.76 million, followed by MEMG Family Office contributing $9 million. Notable individual investors include Ravi Pillai, Chairman at RP Group of Companies, with a contribution of $5.4 million, and Ram Nayak, Co-Head of Deutsche Bank, who invested $1.2 million. Additionally, InCred Special Opportunities Fund VCC, a Singapore-registered entity of InCred, participated with $5.3 million. Varanium Capital Advisors and NABS Vriddhii also joined the round, contributing $1.22 million and $1.2 million, respectively. InCred is the second company, following Zepto, to achieve unicorn status in the current year.&nbsp;<a href="about:blank" rel="noopener noreferrer" target="_blank">Kitchens@</a>, a cloud kitchen startup, has secured $65 million in Series C funding from Finnest, a London-based growth investment firm. Founded by Dr. Biswanath Patnaik and Mr. Arun Kar, the latter being an ex-military officer, Finnest has previously invested in various sectors, including renewable energy, electric and hydrogen-powered automotive, sports and entertainment, smart cities, hotels and hospitality, and aerospace technologies.&nbsp;<a href="http://batxenergies.com/" rel="noopener noreferrer" target="_blank">BatX Energies</a>, a lithium-ion (Li-ion) battery recycling company, has secured $5 million in its pre-Series A funding round, with investment support from Zephyr Peacock and LetsVenture. The startup's current backers, including JITO Angel Network, family offices associated with Mankind Pharma, Excel Industries, BluSmart, and others, also took part in the funding round.&nbsp;In its Series A funding round, agritech startup <a href="about:blank" rel="noopener noreferrer" target="_blank">Fasal</a> has secured INR 100 crores. The funding was led by TDK Ventures and British International Investment (BII), the United Kingdom's development finance institution and impact investor. Additional contributions came from ITI Growth Opportunities Fund, Navam Capital, and Aureolis Ventures. Notably, all existing investors, including 3one4 Capital, Omnivore, Wavemaker Partners, Genting Ventures, and The Yield Labs Asia Pacific, also participated in the round.&nbsp;<a href="https://www.snitch.co.in/" rel="noopener noreferrer" target="_blank">Snitch</a>‎, a men's apparel fashion brand, has raised Rs 110 crore in its Series A funding round, with co-leadership from SWC Global and IvyCap Ventures Advisors Private Limited, along with backing from key angel investors. The newly acquired capital will be utilized to drive Snitch's expansion efforts, focusing on talent acquisition, technology enhancements, and the implementation of an offline retail strategy to strengthen its market presence.&nbsp;<a href="http://www.enricoeyewear.com/" rel="noopener noreferrer" target="_blank">Enrico Eyewear</a>, a prominent eyewear brand, has secured Rs 2.1 crore in a pre-seed funding round, with 100X.VC leading the investment. The company intends to deploy the raised funds to broaden its market presence through various distribution initiatives, educate customers on the significance of high-quality eyewear, and uphold eye health.&nbsp;<a href="http://www.oxyzenexpress.com/" rel="noopener noreferrer" target="_blank">Oxyzen Express</a>, a startup specializing in express logistics and supply chain solutions, has successfully concluded its second round of seed capital fundraising, securing $3 million to invest in next-generation logistic technology. The funding, which took place during the current fiscal year, saw lead investments from the Tamil Nadu Emerging Sector Seed Fund and the SNAM group of companies. A variety of other angel investors also participated in the round, and Lion Hill Capital served as the financial advisors facilitating the fundraising process for the Chennai-based company.&nbsp;<a href="https://altcarbon.in/" rel="noopener noreferrer" target="_blank">Alt Carbon</a>, a climate action startup based in India, has raised $550,000 in a pre-seed funding round led by Shastra VC (formerly Veda VC) and a consortium of strategic angel investors. The funds raised will be deployed to assemble a skilled team, including geologists, geochemists, and geospatial scientists based in India. Alt Carbon aims to leverage this talent pool to conduct a pilot project in early 2024, with a focus on developing robust and high-quality carbon removal credits for the voluntary carbon offset market.&nbsp;<a href="http://www.revfin.in/" rel="noopener noreferrer" target="_blank">Revfin</a>, an electric vehicle financing startup, has successfully raised $14 million in its Series B round, with Omidyar Network leading the investment. The funds will play a crucial role in furthering Revfin's dedicated efforts to strengthen the electric vehicle (EV) ecosystem, as mentioned in the company's press release. Furthermore, the funding will be allocated to support various elements of the EV ecosystem, including charging stations and batteries. ----Get access to Newnex - <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a> Join the global LP and VC&nbsp;co-investment platform&nbsp;for managing and collaborating with co-investors at scale. The future is digital: go beyond your immediate network and get your deals done privately and fundraisings closed rapidly.&nbsp; Invite VCs privately to co-invest&nbsp;in startups' current and future round.&nbsp;Invite LPs privately to co-invest&nbsp;in funds.

18 December This week has not been carrying too many block buster events, nonetheless there are some important news you need to be informed about. Newnex is bringing the AI top-news and discussions on AI happening every week. Here is last week's top developments. <ol><li>The UK high court rules that AI invention is patentable. Previously UK IPO had refused to recognise AI patent considering it to be a computer program. <a href="https://www.osborneclarke.com/insights/uk-high-court-finds-ai-invention-patentable#:~:text=In%20a%20positive%20move%20for,and%20therefore%20was%20not%20patentable." rel="noopener noreferrer" target="_blank">Read more</a> and <a href="https://www.juve-patent.com/cases/uk-ipo-suspended-its-guidelines-on-ai-patents-after-high-court-judgment/#:~:text=The%20UK%20High%20Court%20handed,its%20guidelines%20on%20AI%20patents.&amp;text=Experts%20around%20the%20world%20have,AI%20inventions%20can%20be%20patented." rel="noopener noreferrer" target="_blank">Read other news</a> (did not happen last week but important)</li></ol> The gist:The High Court has overturned a UK Intellectual Property Office (UKIPO) decision, ruling that an AI invention for media-file recommendations based on artificial neural networks (ANNs) is patentable. The judge found the invention did not fall within the computer program patentability exclusion, signaling a positive move for AI innovators. The decision is the first to consider the exclusion in the context of AI, potentially opening the door to patent protection for many AI inventions. The UKIPO has temporarily suspended its examination guidelines on AI-related patent applications while reviewing the judgment, highlighting the decision's significant impact on patent protection for AI in the UK. The ruling positions the UK as an AI-friendly jurisdiction and aligns with the government's push for AI development and innovation. 	2. EU's AI act is moving ahead - <a href="https://www.insideprivacy.com/artificial-intelligence/eu-artificial-intelligence-act-nearing-the-finish-line/" rel="noopener noreferrer" target="_blank">Read here</a> 	The gist:The European Parliament, Council of the European Union, and European Commission have reached a political agreement on the EU Artificial Intelligence Act (AI Act) on December 9, 2023. The agreement covers key aspects, including the scope of the AI Act, classification of AI systems as "high-risk," and law enforcement exemptions. The AI Act aims to regulate the development, import, deployment, and use of AI systems in the EU. The agreement includes prohibitions on certain AI practices, obligations for high-risk AI systems, the right for citizens to lodge complaints, rules for general-purpose AI models, the establishment of a European AI Office and AI Board for oversight, and sanctions for non-compliance. The AI Act is expected to enter into force 20 days after publication in the EU Official Journal, with organizations required to comply two years after its entry into force. During the transitional period, the Commission will launch an AI Pact for developers to voluntarily commit to key obligations outlined in the Act. 	3. SEC probes investment advisors use of AI - <a href="https://www.wsj.com/articles/sec-probes-investment-advisers-use-of-ai-48485279" rel="noopener noreferrer" target="_blank">Read more</a> 	The gist:	The U.S. Securities and Exchange Commission (SEC) is conducting a targeted 				examination, or "sweep," to gather information from investment advisers on their use and oversight of artificial intelligence (AI). The SEC's examinations division has sent requests for information to multiple investment advisers, seeking details on AI-related marketing documents, algorithmic models for managing client portfolios, third-party providers, and compliance training. While the SEC's scrutiny does not imply suspicion of misconduct, it aligns with SEC Chairman Gary Gensler's expressed skepticism about the potential risks associated with the financial industry's increasing reliance on AI. The examination is part of the SEC's broader rule-making agenda, which includes proposed rules around the use of data analytics, including AI, with a focus on addressing conflicts of interest. The sweep targets specific concerns such as managing AI-related conflicts of interest, contingency plans for system failure, and the impact of AI systems on regulatory or legal issues. Despite ongoing evaluations of AI policies by many firms, the SEC's examination faces challenges due to the widespread adoption of AI technologies in the industry. 	4. SEC faces fierce pushback on plan to police AI investment advice - <a href="https://on.ft.com/472aHHV" rel="noopener noreferrer" target="_blank">Read </a>	<a href="https://on.ft.com/472aHHV" rel="noopener noreferrer" target="_blank">more</a> 	The gist:	Brokers, hedge funds, and investment advisers are strongly opposing the Securities and Exchange Commission's (SEC) proposed rules on the use of artificial intelligence (AI) in providing financial advice to investors. The SEC's July proposals, known as "Reg PDA," aim to eliminate conflicts of interest involving technology when advising clients. Critics argue that existing rules on investor protection are sufficient and that the SEC's definition of "technology" is too broad. Industry groups, including Sifma and the Investment Company Institute, have called for the withdrawal of Reg PDA, citing concerns about arbitrary rulemaking. The SEC, under Chair Gary Gensler, has faced significant opposition, and critics argue that the cumulative effect of numerous rule changes is straining the industry. Consumer groups support Reg PDA, emphasizing the need for stronger investor protections in the rapidly evolving landscape of AI-driven financial advice. Other news: - Swiss to use artificial intelligence post tests for passenger counting<a href="https://www.flightglobal.com/airlines/swiss-to-adopt-artificial-intelligence-passenger-counting-next-year-following-tests/156222.article" rel="noopener noreferrer" target="_blank">Read more</a> - Agencies Have Begun Implementation but Need to Complete Key requirements <a href="https://www.gao.gov/products/gao-24-105980" rel="noopener noreferrer" target="_blank">Read more</a> - EU policymakers reached a political agreement on Thursday (14 December) on legislation to bring the bloc’s product liability regime in line with technological developments, notably covering digital products like software, which includes Artificial Intelligence. <a href="https://www.euractiv.com/section/digital/news/eu-updates-product-liability-regime-to-include-software-artificial-intelligence/" rel="noopener noreferrer" target="_blank" style="color: rgb(51, 51, 51);">Read more</a> -- Join Newnex - scale your VC fund, direct and co-investments <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>