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Stripe's latest valuation of $159bn reflects a deeper shift in how private markets are functioning, how capital is being deployed, and how a small group of companies are increasingly capturing disproportionate investor attention.To understand the significance of this figure, context matters. Stripe was valued at $95bn at its peak in 2021, before being marked down sharply to around $50bn in 2023 as rising interest rates, declining growth multiples, and a broader private market correction hit late-stage technology companies hard. The recovery to $159bn is therefore not a simple continuation of growth. It represents a substantial rerating, one that reflects both improved business fundamentals and a shift in how investors are thinking about capital allocation at scale.The valuation was established through a secondary share sale rather than a primary funding round. This means the capital did not go into the company's balance sheet but instead provided liquidity to employees and early investors. This structure is becoming more common among large private technology companies that are choosing to stay private longer while still enabling internal liquidity. It is worth being precise here though: the secondary route is a deferral rather than a permanent solution. Stripe has been expected to pursue a public listing for several years, and while secondary transactions manage the pressure for now, employee tenure and early investor timelines will eventually make an IPO or direct listing necessary. The question is one of timing, not if.What makes the current valuation significant is that it is grounded in operating scale and strategic positioning rather than speculative growth expectations. The company has reached a level where it sits at the core of global digital commerce infrastructure. Its payments platform is deeply embedded across large enterprises as well as high-growth technology companies, particularly those building in AI, SaaS, and internet services.One of the key drivers behind the valuation is the sheer volume of payments flowing through Stripe's systems. The company is estimated to process close to $2 trillion annually, a figure cited widely in industry reporting though not officially confirmed by Stripe itself. If accurate, this places it among the largest financial infrastructure providers globally. This level of throughput creates strong network effects, recurring revenue streams, and a high degree of customer lock-in. As more businesses build directly on Stripe's APIs, switching costs increase and market position strengthens.Critically, Stripe is no longer just a payments company. Over the past several years it has built out a broader financial operating stack that now includes billing and subscription management, tax calculation and compliance, fraud prevention through Radar, embedded finance tools, and more recently expanded into stablecoin-based payment rails. This product expansion is central to the lock-in argument. Customers are not simply using Stripe to process card transactions. They are running significant portions of their financial operations on Stripe's infrastructure, which makes displacement increasingly difficult and expensive.There is also a structural tailwind that the valuation reflects but rarely gets named directly. A disproportionate share of new AI companies building commercial products are Stripe customers. As AI-native businesses scale their monetisation, transaction volumes flow through Stripe without Stripe needing to build or bet on AI itself. It is exposure to one of the fastest growing segments of the technology economy through an infrastructure layer, which is precisely the kind of compounding dynamic that late-stage investors pay a premium for.Another important factor is the shift in Stripe's financial profile. Over the past two years the company has moved from prioritising aggressive expansion to focusing on efficiency and profitability. Cost controls, improved margins, and more disciplined growth have aligned the business with what investors are now rewarding. In the current environment, valuation premiums are increasingly tied to resilience and cash flow visibility rather than pure top-line growth.The demand side of the equation is equally important. The investors participating in the share sale are not broadly distributed. They represent a concentrated group of large, sophisticated capital providers including global asset managers, sovereign wealth funds, and existing major backers who are increasing their positions rather than new entrants broadly reshaping the cap table. Long-term holders such as Sequoia and Andreessen Horowitz carry significant signalling weight here. Their continued participation, and the absence of pressure selling from early institutional investors, communicates a level of conviction that itself influences how other capital allocators interpret the opportunity. General Atlantic has also been active in secondary transactions at this valuation range.This reflects a wider trend in private markets where capital is concentrating into a small number of perceived category winners. Rather than spreading capital across a wide range of companies, investors are allocating larger amounts into fewer high-conviction opportunities. Stripe benefits from this dynamic because it is widely viewed as critical infrastructure rather than a discretionary or experimental technology play.At the same time, the structure of the transaction highlights the growing importance of secondary markets. In previous cycles, companies of this scale would have likely pursued an IPO to provide liquidity. Today, secondary transactions are fulfilling that role, allowing companies to control timing, avoid public market volatility, and continue operating with long-term strategic flexibility. This shift has broader implications for how private markets function. The traditional lifecycle of venture-backed companies moving from early-stage funding to IPO is breaking down. Companies are remaining private for longer periods, reaching very large valuations, and creating internal liquidity mechanisms. As a result, private markets are becoming more self-sustaining and less dependent on public market exits.However, this also introduces a different kind of risk. Price discovery in private markets is less transparent, and valuations are often set through negotiated transactions rather than continuous market trading. While Stripe's valuation is supported by strong fundamentals, the lack of frequent market-based pricing means that sentiment shifts can still have sharp effects when liquidity events do occur.There is also a regulatory dimension that sophisticated investors price into high-conviction positions even if it rarely features in valuation narratives. Stripe operates across dozens of jurisdictions and is subject to increasing scrutiny on interchange economics, financial services licensing, and embedded finance regulation particularly in the EU and UK. As Stripe's product suite expands deeper into financial services, its regulatory surface area expands with it. This is not an existential risk but it is a real operational and compliance overhead that scales with ambition.The most important takeaway from Stripe's $159bn valuation is what it signals about the state of capital allocation in private markets. A small number of companies are now absorbing a significant share of available capital at the late stage. These companies tend to share common characteristics: large addressable markets, infrastructure-like positioning, strong and improving margins, and deep integration into customer workflows that makes displacement costly.For investors, this changes the strategy. Access to top-tier companies becomes more important than broad diversification. Secondary markets are no longer optional but central to liquidity planning and portfolio construction. For founders, it reinforces the idea that building a durable, long-term private company is not only viable but increasingly the preferred path, provided the business can generate the kind of cash flow visibility and structural positioning that justifies staying private through multiple market cycles.Stripe's $159bn valuation is therefore not simply a recovery from previous markdowns. It is a signal of a more mature, more selective private market where capital is flowing with greater discipline. Growth still matters, but it is no longer sufficient on its own. What investors are ultimately paying for is scale, resilience, regulatory durability, and the ability to remain indispensable within the infrastructure of the global economy.---Newnex is the invite-only platform for institutional VCs to syndicate deals, co-invest, and source deal flow directly and privately. The network layer for global VC deal-making. 60+ VCs from Europe, US and India and growing. Get Access - <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Stripe’s $159bn valuation: what is driving it, who is backing it, and why capital is concentrating

President Donald Trump signed an executive order on February 3, 2025, to establish the first United States sovereign wealth fund. This decision marks a change in the country's approach to managing national assets and investing in its future. What is a Sovereign Wealth Fund? A sovereign wealth fund (SWF) is a state-owned investment fund that invests in various financial assets, including stocks, bonds, real estate, and other financial instruments. These funds are established to manage a country's excess reserves, stabilize the national economy, and generate wealth for future generations. The U.S. Sovereign Wealth Fund Initiative The executive order instructs the Secretary of the Treasury and the Secretary of Commerce to develop a plan for creating the fund within 90 days. The fund aims to: - Promote fiscal sustainability- Reduce the tax burden on American families and small businesses- Establish long-term economic security- Enhance U.S. economic and strategic leadership internationally The fund is expected to be operational within 12 months, focusing on monetizing government assets. Specific funding mechanisms are yet to be determined, with tariffs being considered as a potential source. The U.S. sovereign wealth fund may invest in various sectors: 1. Infrastructure projects2. Manufacturing hubs3. Advanced defense capabilities4. Cutting-edge medical research5. Strategic assets like TikTok The fund's creation may reshape America's approach to government investment and provide a new tool for competing in the global technological landscape. The creation of a U.S. sovereign wealth fund faces several challenges: 1. Funding sources: The U.S. has been running deficits for years, unlike oil-rich countries with budget surpluses.2. Political hurdles: The fund's establishment requires Congressional approval.3. Economic concerns: Some experts question the appropriateness of such a fund for a country with trade and budget deficits. The United States would join a list of countries with sovereign wealth funds. Notable examples include: - Norway's Government Pension Fund Global: $1.4 trillion- China Investment Corporation: $1.2 trillion- Abu Dhabi Investment Authority: $829 billion Several U.S. states already have their own funds: - Alaska Permanent Fund: $77.8 billion- Texas Permanent School Fund: $46.5 billion- New Mexico State Investment Council These state-level funds have shown benefits in supporting education and providing dividends to residents. As the Treasury and Commerce Departments develop the plan for the U.S. sovereign wealth fund, questions remain about its structure, governance, and investment strategies. The coming months will be crucial in shaping this initiative that may transform the United States' approach to national investment and economic strategy. The creation of a U.S. sovereign wealth fund represents a shift in economic policy, with implications for the country's financial future and global economic standing. As the plan unfolds, it will likely generate debate and scrutiny from policymakers, economists, and the public.--Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and inveting through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; Bringing together 5000 VC/LP firms and 100k+ startups in one unified platform. We are making institutional VC investing as seamless as public markets investing.

USA Launches Sovereign Wealth Fund: A New Era of National Investment

Cherry Ventures has unveiled its latest initiative: a $500 million fund aimed at propelling Europe's first trillion-dollar company. This announcement, made on February 4, 2025, marks a significant milestone in the venture capital firm's commitment to fostering innovation and growth in the European tech sector. The newly launched Cherry V fund comprises two key components:1. A flagship Early Stage fund2. An opportunity fund for promising portfolio companies at Series B and beyond This strategic split allows Cherry Ventures to support startups at various stages of growth, from inception to maturity. The fund's success is evident in its rapid formation and oversubscription. Raised in just a few months, the fund was 2x oversubscribed and includes a global LP base. It features investments from renowned entrepreneurs such as Ilkka Paananen (Supercell), Miki Kusi (Wolt), and Jochan Enghert (Flix). Despite prevailing pessimism in the European tech narrative, Cherry Ventures maintains an optimistic outlook. The firm challenges the notion that Europe is falling behind in the global tech race, citing several encouraging statistics: - 35,000 early-stage startups in Europe, surpassing other regions- 7x growth in the tech workforce since 2015- Presence of world-class talent, research capabilities, and thriving tech hubs Cherry Ventures emphasizes the need for a shift in Europe's innovation culture. The firm advocates for bold action from startups, collaboration among policymakers, entrepreneurs, researchers, and investors, and leveraging Europe's strengths to become a global tech leader. Cherry Ventures' confidence is rooted in its impressive track record. The firm has backed over 130 companies, with over 80% of seed-funded startups progressing to Series A. With this new fund, Cherry Ventures aims to catalyze the growth of European tech companies, potentially leading to the continent's first trillion-dollar valuation. By fostering a collaborative ecosystem and providing substantial financial support, the firm is positioning itself as a key player in shaping Europe's tech future.--Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and inveting through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; Bringing together 5000 VC/LP firms and 100k+ startups in one unified platform. We are making institutional VC investing as seamless as public markets investing.

Cherry Ventures Launches $500M Fund to Boost European Tech

In a significant corporate decision, Dropbox has announced plans to reincorporate from Delaware to Nevada. This move, set to be finalized in early 2025, marks a notable shift in the company's legal strategy and reflects a growing trend among tech companies to reconsider their corporate domiciles. The Reincorporation Process Dropbox filed a preliminary information statement with the Securities and Exchange Commission, revealing that majority shareholders had approved the reincorporation through written consent. This process is part of Dropbox's broader business transformation strategy, aimed at aligning its legal structure with its evolving business needs. Reasons Behind the Move Dropbox's decision to leave Delaware, long considered the gold standard for corporate incorporation, stems from several factors: 1. Seeking a more predictable legal environment2. Concerns about Delaware's increasingly litigious atmosphere3. Preference for Nevada's statute-focused approach to corporate law4. Desire for stability and certainty in corporate decision-making The company believes that Nevada's legal framework, which codifies the fiduciary duties of directors and officers, will provide a more suitable environment for its ongoing business transformation. The "Dexit" Trend Dropbox's reincorporation is part of a larger trend dubbed "Dexit," referring to the exodus of companies from Delaware. Other tech giants, including Meta (formerly Facebook), are reportedly considering similar moves. This shift challenges Delaware's long-standing dominance as the preferred state for corporate incorporation. Implications for Corporate Governance While Dropbox's operational headquarters will remain in California, the reincorporation to Nevada will have significant legal implications. Future corporate disputes involving Dropbox will likely be adjudicated under Nevada law, potentially offering different protections and obligations compared to Delaware's system. This trend could prompt other states to enhance their corporate governance frameworks to attract businesses, potentially reshaping the landscape of corporate domiciles in the United States. The Broader Impact As more tech companies reconsider their legal homes, it signals a broader transformation in how businesses approach corporate governance and legal strategy. This shift reflects companies' increasing desire for predictable legal environments and reduced litigation risks as they navigate complex business transformations and evolving market conditions. Dropbox's move to Nevada represents a strategic decision aimed at optimizing its legal framework and supporting its ongoing business transformation. As other tech companies follow suit, this trend could lead to significant changes in the corporate governance landscape, challenging Delaware's long-standing dominance and potentially reshaping how companies approach their legal strategies in the future. --Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making.

Dropbox does a Dexit - joins Delaware exodus

State governments across the United States are exploring innovative ways to manage public funds, with cryptocurrencies emerging as a potential investment avenue. This trend reflects a growing interest in digital assets and blockchain technology at the state level. Utah's Blockchain Investment Initiative Utah has taken a significant step with House Bill 230, the "Blockchain and Digital Innovation Amendments." This legislation, if passed, would allow the state treasurer to invest up to 5% of certain public funds in qualifying digital assets. The bill includes provisions for secure storage and sets parameters for eligible cryptocurrencies. Massachusetts Considers Bitcoin Strategic Reserve In Massachusetts, a Republican senator has proposed establishing a "Commonwealth Bitcoin Strategic Reserve." This initiative would permit the state to invest up to 10% of its stabilization fund in Bitcoin and other digital assets. Concurrently, Massachusetts has implemented regulations to protect consumers using cryptocurrency trading platforms. Arizona's Bold Move with the Strategic Bitcoin Reserve Act Arizona's Senate Finance Committee has approved Senate Bill 1025, the "Arizona Strategic Bitcoin Reserve Act." This legislation would allow up to 10% of Arizona's public funds to be invested in Bitcoin and other digital assets. The bill includes provisions for secure storage and positions Arizona as a potential pioneer in state-level cryptocurrency investment. These state-level initiatives are part of a larger trend, with several states considering similar legislation. This movement reflects a growing interest in diversifying public funds and exploring the potential of digital assets as a hedge against inflation. As states venture into cryptocurrency investments, they must navigate complex regulatory landscapes and market volatility. These initiatives raise important questions about the role of digital assets in public finance and the potential risks and rewards associated with such investments. The exploration of cryptocurrency investments by state treasuries represents a significant shift in public fund management. As more states consider similar measures, the landscape of state finance could be poised for transformation. However, the success and impact of these initiatives remain to be seen, and they will likely be closely watched by policymakers and financial experts alike. --Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making.

Cryptocurrency Investments: A New Frontier for State Treasuries

Keyless Secures $2M in Additional Funding to Expand North American Presence Keyless, a London-based biometric authentication startup, has raised $2 million in additional funding, bringing its total funding to $10 million. The funding round was led by existing investors Rialto Ventures and Experian Ventures and aims to support the company’s expansion in North America while driving innovations to combat deepfake technology in the financial services sector. Founded by CEO Andrea Carmignani, Keyless specializes in privacy-preserving facial biometrics, offering a cutting-edge solution for secure user authentication. Its Zero-Knowledge Biometrics™ technology provides multi-factor authentication in just 300 milliseconds without storing biometric data anywhere, ensuring user privacy. The platform is utilized by banks, fintechs, cryptocurrency platforms, and gaming companies to reduce account takeovers, secure high-risk actions, and enhance operational efficiency. The service is accessible via app and web and holds key certifications, including ISO 27001, ISO 30107, FIDO Biometrics, and FIDO2. The company has seen rapid growth over the past year, gaining customers across the UK, EU, North America, and South America. Keyless also expanded its U.S. presence by hiring North American Sales and Technical Services Directors and bringing on industry experts Sarah Clark and Charles Walton—both former senior vice presidents at MasterCard—as advisors. Currently employing 50 people across offices in the UK, U.S., and EU, Keyless plans to use the new funding to accelerate its North American operations and further develop solutions to tackle emerging threats like deepfake technology. With its innovative approach to biometric authentication and strong backing from investors, Keyless is poised to continue its growth trajectory in the global cybersecurity market. Kraaft Raises €13 Million to Digitize Construction Operations with AI-Powered Platform Kraaft, a Paris-based startup revolutionizing the construction industry, has secured €13 million in Series A funding to expand its AI-powered collaboration platform. The investment round was led by Dawn Capital, with participation from Brick &amp; Mortar Ventures, Chalfen Ventures, Stride VC, and OSS Ventures. Founded in 2020 by Marc Nègre, Cédric Boidin, and Thomas Reygagne, Kraaft addresses inefficiencies in construction through its intuitive platform that bridges the gap between field and office operations. The app integrates features such as real-time communication, photo geolocation, document management, and AI-driven workflows. Key highlights of Kraaft's growth and impact: 1. User base has tripled since its €3.2 million Seed round in 20232. Now serves over 1,000 companies3. Facilitates more than one million messages monthly4. Supports five languages: English, Spanish, German, Italian, and French5. Partnered with major European construction firms like SAUR, NGE, and SPIE CityNetworks6. Reported 15% improvement in handling change orders, boosting project margins The construction sector, which generated €12.5 trillion in global output in 2023, has been slow to adopt new technologies. Kraaft aims to change this by offering an easy-to-use platform inspired by popular messaging apps like WhatsApp. Thomas Reygagne, Co-founder and CEO at Kraaft, emphasized the company's mission to empower frontline construction workers and transform productivity in the sector. The new funding will be used to fuel product development and expand into key markets, including the UK and Germany. Kraaft plans to introduce new features in 2025, such as planning and timesheets for project management, API integrations with platforms like Procore, and AI-driven automation tools to further enhance productivity. London-based Fintech Aslan Raises €4.7 Million to Revolutionize Employee Pay and Benefits Aslan, a financial wellbeing platform founded in 2022, has secured €4.7 million in seed funding to expand its innovative solution for employee compensation and rewards. The London-based startup aims to transform how employees are paid and how companies approach workforce engagement and financial wellbeing. The oversubscribed funding round was led by Notion Capital, with participation from Redstone and various angel investors. Aslan's platform offers a mobile app and reward card that provides instant cashback on purchases, flexible pay options, budgeting tools, and financial education for employees. With this investment, Aslan plans to launch new features, expand its team, and further develop its technology to address the challenges of employee compensation and financial stress in the UK workforce. The company has already onboarded clients from various industries and achieved strong employee uptake since its launch in April 2024. As Aslan continues to grow, it seeks to fundamentally change the way people are paid and how companies reward their employees, potentially reshaping the landscape of workforce financial wellbeing in the UK and beyond. --Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making.

Keyless, Kraaft, Aslan announces new fundraising rounds 

Recfindr, a London startup developing an innovative recruitment management system, has successfully raised £300,000 in a pre-seed funding round. The company, founded in 2024, aims to revolutionize the hiring process by providing an all-in-one platform that gives hiring managers complete control over recruitment. 1. Platform Features:&nbsp;&nbsp;- Designed to reduce hiring time for urgent roles by 50%&nbsp;&nbsp;- Provides hiring managers with access to specialist recruiters&nbsp;&nbsp;- Streamlines the entire recruitment process in one platform 2. Market Impact:&nbsp;&nbsp;- Addresses the "deeply fragmented" UK recruitment agency market&nbsp;&nbsp;- Over 160 recruitment agencies have already joined the platform 3. Funding Details:&nbsp;&nbsp;- Led by SFC Capital, the UK's leading SEIS fund for innovative companies&nbsp;&nbsp;- Participation from high-profile angel investors, including Ezequiel Canestrari, European COO of Clearbank 4. Fund Utilization:&nbsp;&nbsp;- Primary focus on hiring engineering talent&nbsp;&nbsp;- Further development and enhancement of the platform Alexandra Chirica, the founder of Recfindr, emphasizes the importance of specialized recruitment, stating, "You wouldn't hire a generalist to perform complex surgery, or defend you in court or build the software for your company. And yet we continue to hire generalist recruiters." She believes Recfindr will empower hiring managers by connecting them with the right specialists for their needs. The successful funding round and the rapid adoption by recruitment agencies signal a promising future for Recfindr in the evolving landscape of recruitment technology. --Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making.

London-based Recruitment Tech Startup Secures £300k Pre-Seed Funding

A UK-based startup, Domna, has raised £70 million in a funding round led by Leon Capital. This investment marks one of the largest first-time raises for a female-founded team in Europe and aims to address the pressing issue of energy inefficiency in UK homes. The Energy Efficiency Crisis Over 18 million homes in the UK, representing more than half of the country's housing stock, suffer from poor energy efficiency. These properties are more susceptible to cold, damp, and mould, highlighting the urgent need for improvement. Domna's Comprehensive Approach Formerly known as Hestia, Domna offers a range of services to improve home energy efficiency: - Assisting landlords in decarbonizing rental properties- Providing property assessment and purchase advice- Managing retrofit delivery processes- Offering on-site improvements such as insulation, glazing, draft proofing, and renewable energy system installations- Utilizing proprietary software for energy efficiency assessments The company aims to increase home valuations by 20% after retrofitting and help homeowners reduce energy bills by 40%. A New Trend in European Startups Domna's strategy aligns with a growing trend among European startups, which involves: - Acquiring and consolidating smaller businesses in various industries- Deploying proprietary software across acquired companies to scale operations and expand customer base Strategic Acquisitions and Future Plans With the new funding, Domna has acquired two retrofit surveying and contracting businesses: The Warmfront Team and Osmosis ACD. These acquisitions strengthen Domna's position in the market and expand its service offerings. The company plans to use the investment to: - Pursue further acquisitions in the sector- Enhance its predictive machine-learning stock assessment tool Impact and Scale The combined Domna group now delivers approximately 15,000 domestic retrofits annually, achieving significant carbon abatement and fuel poverty reduction while adding substantial value to residential properties. This investment in Domna represents a major step towards addressing the UK's housing energy efficiency challenges and reducing carbon emissions in the residential sector.--Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making.

UK Startup, Domna, Secures £70m Funding to Tackle Home Energy Efficiency

<blockquote>Anthropic, the AI startup behind the Claude chatbot, is reportedly close to securing a $2 billion funding round that would value the company at $60 billion. This significant funding boost is being led by venture capital firm Lightspeed Venture Partners.</blockquote> 1. Valuation increase: The $60 billion valuation marks a substantial jump from Anthropic's previous valuation of around $18 billion less than a year ago. 2. Funding details: The new $2 billion investment would bring Anthropic's total recent funding to $6 billion, following a $4 billion investment from Amazon in November 2024. 3. Investor interest: The oversubscribed funding round indicates strong investor confidence in Anthropic's potential in the competitive AI market. 4. Revenue growth: Anthropic's annualized revenue has reportedly reached approximately $875 million, driven by enterprise sales of its AI models. 5. Strategic partnerships: The company has secured significant backing from major tech players, including Amazon and Google, highlighting its strategic importance in the AI landscape. 6. Market position: This funding round would solidify Anthropic's position as a key competitor to OpenAI in the foundation model space. 7. AI industry trends: The substantial investment in Anthropic reflects the broader trend of massive funding rounds in the AI sector, with startups accounting for nearly half of all venture capital raised in the U.S. last year. This potential funding round underscores the intense competition and rapid growth in the AI industry, as well as the significant resources being poured into developing advanced AI technologies.--Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making. Disclaimer: The information presented in this article is based on available sources and may not be entirely accurate or up-to-date. We do not guarantee the accuracy of the content, and readers should conduct their own research and consult with financial professionals before making any decisions.

Anthropic raising $2billion at $60billion valuation

<blockquote>Infinite Reality, an AI-powered metaverse company, has successfully raised $3 billion in a funding round, resulting in a significant valuation of $12.25 billion. Here are the key details of this fundraising event:</blockquote> - Infinite Reality is a metaverse technology company- Focuses on creating immersive digital experiences and virtual worlds- Utilizes AI and other advanced technologies - Amount raised: $3 billion- Post-money valuation: $12.25 billion- Lead investor: Fortress Investment Group Use of Funds:- Expand operations globally- Further develop its AI and metaverse technologies- Potential acquisitions to enhance capabilities Market Context:- This fundraise comes amid growing interest in metaverse and AI technologies- Reflects investor confidence in the future of immersive digital experiences Infinite Reality's Platform:- Offers tools for creating and monetizing virtual experiences- Targets various industries including entertainment, education, and e-commerce This substantial funding round and high valuation underscore the growing importance of AI and metaverse technologies in shaping future digital interactions and experiences. --Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making. Disclaimer: The information presented in this article is based on available sources and may not be entirely accurate or up-to-date. We do not guarantee the accuracy of the content, and readers should conduct their own research and consult with financial professionals before making any decisions.

Infinite Reality, an AI-powered metaverse company, raised $3billion at $12.25 billion valuation

<blockquote>Innovaccer, a healthcare data platform company, has raised $275 million in a Series F funding round to expand its AI capabilities in healthcare. Here are the key details:</blockquote> Funding and Valuation:- $275 million raised in Series F round- Led by B Capital Group, with participation from Banner Health, Danaher Ventures, Generation IM, Kaiser Permanente, and M12- Post-money valuation of approximately $3.45 billion for the primary funding component- Total capital raised to date is now over $675 million - Founded in 2014, initially focused on unifying data for enterprises- Shifted focus exclusively to healthcare in 2017- Currently serves 6 of the top 10 U.S. healthcare systems as customers- On track to hit $250 million in annual recurring revenue in 2025 Use of Funds:- Expand collaboration with existing customers- Introduce new AI and cloud capabilities&nbsp;- Scale developer ecosystem on the platform- Develop AI co-pilots and agents for medical scribing, prior authorizations, and claims processing Growth and Strategy:- Revenue has increased by 50% annually for the past five years- Plans to introduce multiple AI co-pilots and agents for healthcare tasks- Aims to become a "one-stop shop for healthcare AI solutions"- Considering IPO once reaching $400-500 million in annual recurring revenue Innovaccer's focus on unifying healthcare data and leveraging AI for improved efficiency and patient outcomes has resonated with investors and customers in the rapidly growing healthcare AI market.--Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making. Disclaimer: The information presented in this article is based on available sources and may not be entirely accurate or up-to-date. We do not guarantee the accuracy of the content, and readers should conduct their own research and consult with financial professionals before making any decisions.

Innovaccer, a healthcare data platform company, raised $275 million in a Series F funding 

Finn Mallery, the founder of <a href="https://www.origamiagents.com/" rel="noopener noreferrer" target="_blank">Origami Agents</a>, delivers a must-read post packed with actionable insights for startups looking to supercharge their growth. If you're aiming to build meaningful Monthly Recurring Revenue (MRR) and scale effectively, this practical guide will arm you with the tools to get there. From nailing your product-market fit to streamlining your onboarding process, Finn breaks it down into clear, actionable steps that any startup—no matter the stage—can implement today. Don’t just dream about scaling; take charge with these proven strategies. Have a read, take notes, and start executing to see your MRR grow. Your future self will thank you! STEP 1: Creating a customer profileSTEP 2: Build your listSTEP 3: Writing a killer emailSTEP 4: The callSTEP 5: How to closeSTEP 6: AfterFinal Thought ---Now that we’re done with YC, we're going to be revealing all of the growth hacks we used: Here’s a full guide (step by step) for how we used a single channel to go from 0 -&gt; $10k MRR in our first 30 days.We spent less than $100 and didn’t have any paid ads, SEO, waitlist, or content marketing. The only channel we used was cold email. We sent 50-75 highly targeted cold emails a day, and this was more than enough.Cold email is the most underrated channel because it's hard to get right, but if you figure it out you can build and sell ANY B2B product. Here's what we did from start to finish: STEP 1: Creating a customer profile First, you need to figure out who you're selling to. If you do this right, you can mess everything else up and still succeed.To do this, we started by creating an ideal customer profile. It's okay if this is completely wrong, most startups have changing targets.It just needs to be good enough to eventually iterate to get to the people with the biggest pain point in the next weeks.For us, we wrote out this exact profile, first at the company level. Then, person level. This is where the magic happens. The more specific you can be about your dream customer (even if wrong initially) the better. Here is who we wanted to target on day 1:Company Size:-5-10 employees(has a sales budget + process, small enough to try our MVP) Industry:-B2B software Type:-US based-sales-led motion (no public product),&nbsp;-selling large contracts ($100k+ ACV),&nbsp;-sales driven by cold outbound-recently founded and high growth Persona:-Founder The goal here is to create such a perfect customer, that if they heard about your solution they would have no choice but to say "tell me more".Think about everything that would need to be true about the problems the company faces for your product to be the magic fix.For us, we build AI agents that do sales research. So the best customers for us are those that spend a LOT of time doing research for their outbound sales.So we'd email them saying "we can give you AI agents that will do all this research for you better than humans"Even if they don’t trust us yet, the 1% chance we're legit is enough for them to hop on a call to hear more. STEP 2: BUILD YOUR LIST After you create this customer profile, get on LinkedIn and find the companies that meet this criteria.Create as long a list of the key people at each of these companies as you can. Ideally you can find 30-50 to get started.After this, you can use an email finder like Apollo or anymailfinder to get their email address. STEP 3: WRITING A KILLER EMAIL Now, comes the fun part. You need to convince the person you're emailing that you're worth talking to.If this person is senior enough to make a purchasing decision, they are already receiving literally 100+ cold emails from people like you every day. And they probably ignore 99.9% of them.So how can you stand out from all these people? I used to run a cold email agency and we'd send 50k+ emails/month to book b2b sales calls via cold email.Here are the basic principles of cold email writing that I always use1. Keep it 5-8 sentences. 70%+ of emails are read on mobile, so make sure they can get most of it from that screen view.2. Never write more than 2 sentences without breaking up the lines. People skim, and that’s the best way to keep their attention3. DO NOT talk about your product’s features. Founders talk too much about what they’re building, and not enough about how it can help the customer. Like I said before, you’re the 500th email in their inbox that day and they do not care. If you must, at most a reference to “we do X”4. Instead, talk about the person, their company, and their pain points. People care about themselves and their own problems. Your product solves a problem, talk about that problem and twist the knife in it to get them interested.5. Call to action: If your cold email is working well, you can go straight for the ‘let’s hop on a call’ in the first email. If you’re struggling to get replies though, it’s much easier to get people to answer by having a less strong CTA.&nbsp; For example “Can I send you my thoughts on how you can solve this problem” or “cool if I send a personalized loom on how you could do X?” or “got an awesome outbound growth strategy, lmk if that would be of interest” Above all, the most important thing I learned is BE DIRECT. There are many ways to 'trick someone' into getting on a call with you. This is a waste of both your time, you only want people that may actually buy your product.When we applied these principles, we got up to a 4.7% response rate, which is considered great in cold email.That still means 19 of 20 of our custom, well tested emails directly to our ICP were never responded to.So don't be discouraged, even if you do this perfectly you may need to send 50/day for a few days before you see a single reply. STEP 4: THE CALL Okay, you've convinced a decision maker to agree to get on a call with you, now what? I've taken 493 sales calls since we launched Origami Agents 3 months ago. Here's what I've learned:The 2 biggest goals for this call are1. Figuring out the customer’s problems2. Getting the customer excited about your solutionUnless you already have PMF, it doesn't matter if you have a full built product/demo. You still need to spend 90%+ of your time figuring out what the customer actually needs.You have literally 0 idea what problems are top of mind for this person, even if you think you do.So, you can open the call up by briefly talking about your solution. But transition the conversation to asking them questions.Your biggest goal is to HELP the customer, so you need to figure out what part of your solution caught their attention.The good news is that they already took time out their busy day to hop on a call with a random person, so there is a good chance they already want some version of your product.Your job is to figure out what version that is, and how your product can be most helpful to them.Once you've gathered enough information through targeted questions, walk them through exactly how your product solves their problems and what outcomes they’ll get by using it.You can use a demo here, but you don't need one. We typically only do a demo on the second call after we know exactly how we can make it amazing for the customer. STEP 5: HOW TO CLOSE At the end of the call ask them: “if we could deliver [solution to your problem], would you be willing to pay X for it?”If they respond positively, schedule a follow up call. Tell them you'll show them a full demo of how you can help them. If you already showed a demo on this call, then you can ask directly what else they need to see to be confident in the sale.Once you've addressed their remaining questions and concerns, you're ready to close the deal. At this point, many customers will naturally move toward a decision, especially if you've effectively demonstrated your value throughout the process.In the early stages, you can even offer a full refund if they aren’t satisfied to give them maximum confidence and get your first few deals over the line. STEP 6: AFTER Congrats! You've closed your first customer. The next 10 will be much easier.You've sent hundreds of emails and narrowed down on the person you were able to help most. Now, you can iterate on who you target, your email messaging, and sales pitch to cater to this demographic.You should keep adjusting this with every positive email response, call, and sale. This is your iteration loop to keep getting better.And, more importantly: You cracked cold email. There's a reason we don't use other cold outbound channels. If you can figure out cold email you win.It costs $0, you can now get your message read by literally whoever you want in the world, whenever you want, and you have unlimited scale.Even though we now get many inbound sales calls, I personally still send 10-20 personalized cold emails a day to senior RevOps at larger companies, and it's 100% paid off. FINAL THOUGHTS This was the exact approach we used at Origami Agents to get our first $10k MRR, and the highest converting outbound approach I’ve seen when I ran my agency.I posted the stats in a prev tweet, but in our first 40 days we sent 3119 emails (~77 per day) and got a 5.3% response rate, resulting in demos with 64 founders at companies within our ICP. This resulted in ~$22k new MRR by the time our sales for all of these calls had closed. The best part is that once you nail this process, you can automate it. We've got our agents running this 24/7, which frees us up to explore new channels and focus on scaling. If you can crack cold email, everything else in your startup becomes 10x easier. We’re now at $50k+ MRR 3 months in, and everything we’ve done was built off this initial process. If you made it this far, I'm going to keep posting about the best growth hacks we've used to scale with detailed breakdowns of exactly how we execute them.---This post was originally published by Finn Mallery on X<a href="https://x.com/fin465/status/1876038438698520743" rel="noopener noreferrer" target="_blank">https://x.com/fin465/status/1876038438698520743</a> Check out Origami agents: <a href="https://www.origamiagents.com" rel="noopener noreferrer" target="_blank">https://www.origamiagents.com/</a>-----Join the Future of Venture Capital Investing with Newnex Newnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a> Our vision: Digitalize institutional investing to make VC as accessible as public markets. We're democratizing access to institutional VCs with a mission to bring together 5,000+ VC/LP firms with 100,000 startups on a trusted, reference-only platform for seamless private deal-making.

Growth Hacks from a YC Founder hitting $10k MRR in 30 days

Starting and scaling a consumer-focused startup requires a deep understanding of user behavior, retention, and monetization strategies. Whether you're running a freemium model, leveraging newsletters, or optimizing ad spending, tracking the right metrics is essential. In this guide, we’ll explore the most important metrics, best practices, and actionable insights to help your startup grow. Top Metrics Every Consumer-Focused Startup Should Track1. User Acquisition Metrics<ul><li>Customer Acquisition Cost (CAC): Measures how much it costs to acquire a new customer. Lower CAC means more efficient marketing.</li><li>Organic vs Paid Growth: Tracks the percentage of users coming through unpaid channels (SEO, referrals) versus paid channels (ads). Strong organic growth is a sign of product-market fit.</li><li>Virality Coefficient: Shows how many new users are brought in by existing users. A viral coefficient above 1 indicates exponential growth potential.</li></ul> 2. User Engagement and Retention Metrics<ul><li>Monthly Active Users (MAU) / Daily Active Users (DAU): These metrics show how frequently users engage with your product.</li><li>Retention Rates: Tracks how many users come back after their first interaction (e.g., Day-1, Day-7, and Day-30 retention rates).</li><li>Churn Rate: Percentage of users leaving your platform. Lower churn equals better long-term growth.</li></ul> 3. Revenue and Monetization Metrics<ul><li>Lifetime Value (LTV): Total revenue generated by a user over their lifecycle. A higher LTV indicates strong customer value.</li><li>LTV:CAC Ratio: Ideally, your LTV should be at least 3x your CAC to ensure profitability.</li><li>Average Revenue Per User (ARPU): Tracks the average revenue generated per user, helping you understand monetization efficiency.</li></ul> Freemium Model Metrics for SuccessIf your startup uses a freemium model, here are the metrics that matter: <ul><li>Free-to-Premium Conversion Rate</li><li class="ql-indent-1">Percentage of free users upgrading to premium plans.</li><li class="ql-indent-1">Benchmark: 2-5% is typical; higher rates indicate a strong value proposition.</li><li>Premium User Churn Rate</li><li class="ql-indent-1">Tracks the percentage of paying users who cancel their subscription.</li><li class="ql-indent-1">Benchmark: Monthly churn should be below 5%.</li><li>Activation Rate</li><li class="ql-indent-1">Measures the percentage of users who complete key onboarding steps or use core features. Higher activation rates lead to better conversions.</li><li>Upsell Revenue</li><li class="ql-indent-1">Revenue from free users upgrading or purchasing premium add-ons. This reflects your ability to monetize effectively.</li></ul> Newsletter Metrics for Consumer StartupsNewsletters are a powerful tool for engaging users and driving conversions. Track these metrics for success:<ul><li>Open Rate</li><li class="ql-indent-1">Percentage of recipients who open your email.</li><li class="ql-indent-1">Benchmark: 20-30% for most industries; exceptional newsletters achieve 40%+.</li><li>Click-Through Rate (CTR)</li><li class="ql-indent-1">Percentage of recipients clicking on links in the newsletter.</li><li class="ql-indent-1">Benchmark: 2-5%, with higher rates signaling strong engagement.</li><li>Unsubscribe Rate</li><li class="ql-indent-1">Percentage of recipients opting out after an email.</li><li class="ql-indent-1">Benchmark: Keep this below 0.5% to maintain list health.</li><li>Conversion Rate</li><li class="ql-indent-1">Measures how many recipients complete a desired action, like upgrading to premium or making a purchase.</li><li class="ql-indent-1">Benchmark: 1-3%, depending on your goals.</li></ul> Ad Spending and Growth MetricsEfficient ad spending is crucial for scaling consumer-focused startups. Focus on these metrics:<ul><li>Return on Ad Spend (ROAS)</li><li class="ql-indent-1">Formula: Revenue generated from ads ÷ Total ad spend.</li><li class="ql-indent-1">Benchmark: ROAS &gt; 3-4x ensures profitability.</li><li>Payback Period</li><li class="ql-indent-1">Tracks how long it takes to recover CAC from customer revenue.</li><li class="ql-indent-1">Benchmark: A payback period under 12 months is ideal for fast-growing startups.</li><li>CAC by Tier</li><li class="ql-indent-1">Differentiate CAC for free and premium users to better allocate ad budgets.</li><li class="ql-indent-1">Premium CAC is typically higher but delivers a greater ROI over time.</li></ul> Best Practices for Scaling Consumer Startups<ul><li>Prioritize Retention Over Acquisition</li><li class="ql-indent-1">Acquiring new users is costly; focus on keeping existing users engaged to reduce churn.</li><li>Optimize Your Freemium Model</li><li class="ql-indent-1">Showcase premium features in the free version to encourage upgrades without overwhelming free users.</li><li>Leverage Newsletters Effectively</li><li class="ql-indent-1">Personalize content, test subject lines, and optimize send times to improve open rates and CTR.</li><li>Build Organic Growth Channels</li><li class="ql-indent-1">Invest in SEO, referral programs, and community-building to reduce reliance on paid ads.</li><li>Experiment with Pricing</li><li class="ql-indent-1">Test different tiers, free trial lengths, and offers to find what resonates with users.</li><li>A/B Test Continuously</li><li class="ql-indent-1">Test everything from features to marketing campaigns to refine what works best.</li><li>Focus on Scalability</li><li class="ql-indent-1">Build infrastructure and processes that can handle rapid growth without proportional cost increases.</li></ul> Case Study: Metrics in ActionLet's have a look at an example: Freemium Fitness App<ul><li>Free-to-Premium Conversion Rate: 3% of users upgrade.</li><li>CAC (Free Users): $5 via ads.</li><li>CAC (Premium Users): $50 via ads and referrals.</li><li>LTV (Premium Users): $200 over two years, yielding a healthy LTV:CAC ratio of 4:1.</li><li>Newsletter Open Rate: 35%, with an 8% CTR and 2% conversion rate.</li></ul>Insights:<ol><li>Improving free-to-premium conversions by 1% would significantly boost revenue.</li><li>High newsletter open and click rates indicate strong user interest, making it a reliable channel for upselling.</li><li>Efficient ad spending and a clear focus on premium users ensure profitability.</li></ol> Scaling a consumer-focused startup requires a data-driven approach and a clear understanding of key metrics. From tracking CAC and LTV to leveraging newsletters and optimizing freemium models, every decision should be backed by insights. By focusing on retention, monetization, and efficient growth strategies, you can build a scalable and sustainable business. --Join the Future of Venture Capital Investing with Newnex Newnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a> Our vision: Digitalize institutional investing to make VC as accessible as public markets. We're democratizing access to institutional VCs with a mission to bring together 5,000+ VC/LP firms with 100,000 startups on a trusted, reference-only platform for seamless private deal-making.

B2C Startups: Metrics and Best Practice for Scaling Consumer-Focused Startups

How to?1. How to build and scale a product company?Building a company is a straightforward science, and we've laid it all out for you here. The real power lies in flawless execution. Dive in, master it, and execute relentlessly.<a href="https://www.newnex.io/blogs/startups/building-and-scaling-a-product-company-insights-from-top-founders-and-investors" rel="noopener noreferrer" target="_blank">Read here</a>2. Please don't take venture capital. This is a thought-provoking and beautifully crafted piece that challenges startups to reflect on their suitability for venture capital. If achieving $100 million in revenue or 100 million users within five years isn't within reach, it's worth reconsidering whether pursuing venture capital funding aligns with your goals.<a href="https://ehandbook.com/please-dont-take-venture-capital-7d0cc9b473ed" rel="noopener noreferrer" target="_blank">Read here</a> Pitch Decks:1. Sequoia Capital's pitch-deck template <a href="https://www.slideshare.net/slideshow/sequoia-capital-pitchdecktemplate/46231251" rel="noopener noreferrer" target="_blank">Click here</a>2. Airbnb: Airbnb's early pitch deck is renowned for its clarity and effectiveness, helping the company raise $600,000 in 2008. <a href="https://www.slideshare.net/PitchDeckExamples/original-airbnb-pitch-deck-2008" rel="noopener noreferrer" target="_blank">Click here</a>3. Uber: Uber's initial pitch deck, presented under the name "UberCab," was instrumental in raising $200,000 in 2009.&nbsp;<a href="https://www.slideshare.net/slideshow/uber-pitch-deck/79089661" rel="noopener noreferrer" target="_blank">Click here</a> Reports:1. <a href="https://www.investeurope.eu/media/g3yobbcs/soet2024_report.pdf" rel="noopener noreferrer" target="_blank">State of European Tech, 2024, by Atomico</a> Relevant Books:1. <a href="https://www.amazon.co.uk/Zero-One-Notes-Startups-Future/dp/0804139296" rel="noopener noreferrer" target="_blank">Zero to One, Peter Thiel </a>2. <a href="https://www.amazon.co.uk/Hard-Thing-About-Things-Building/dp/0062273205" rel="noopener noreferrer" target="_blank">Hard Things About Hard Things, Ben Horowitz</a> ----Want to recommend relevant resources? leave us a comment here or send us a message on X - <a href="http://www.x.com/newnexhq" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 204);">www.x.com/newnexhq</a>---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is the exclusive network designed for startups, venture capitalists (VCs), and limited partners (LPs) to fundraise and invest through trusted references. Our mission is to democratize access to institutional venture capital while maintaining quality. We aim to bring together 5,000+ VC and LP firms and 100,000 venture-scale startups on a trusted, reference-only platform for seamless private deal-making.

Startups and Venture Capital resources and sane advise

Building a successful product company and scaling it effectively is a challenging journey that requires strategic thinking, adaptability, and relentless execution. Drawing from the wisdom of renowned startup founders, investors, and thought leaders like Peter Thiel, here's a comprehensive guide on how to build and scale a product company. <ol><li>Start with a unique vision</li><li>Build something people want</li><li>Focus on Product-Market Fit</li><li>Launch early and iterate</li><li>Build a strong team</li><li>Embrace "Doing things that don't scale"</li><li>Develop a clear business vision</li><li>Focus on Growth</li><li>Build scalable systems and processes</li><li>Master distribution</li><li>Sequence markets correctly</li><li>Maintain financial discipline</li><li>Foster a culture of innovation</li><li>Stay focused</li></ol> Start with a Unique VisionPeter Thiel emphasizes the importance of starting with a contrarian truth. Ask yourself, "What important truth do very few people agree with you on?" This unique insight should form the foundation of your product company. Aim to create something truly innovative rather than making incremental improvements to existing products. Build Something People WantSam Altman's first piece of advice is simple yet crucial: make something people want. This involves talking to potential customers, identifying real pain points, and developing a solution that addresses these needs effectively. Focus on Product-Market FitBefore scaling, ensure you've achieved product-market fit. This means your product solves a real problem, customers are willing to pay for it, and there's a large enough market to support growth. Launch Early and IterateMichael Seibel of Y Combinator advises founders to launch their products as soon as possible. Don't wait for perfection; instead, release a minimum viable product (MVP), gather user feedback, and iterate rapidly based on this feedback. Build a Strong TeamA great team is critical for success. When building your team, hire smart, effective people committed to your vision, look for individuals who can grow with the company, and create a culture that rewards output and innovation. Embrace "Doing Things That Don't Scale"In the early stages, focus on activities that don't scale but provide valuable insights. Personally engage with customers, provide exceptional customer service, and manually perform tasks that you'll automate later. Develop a Clear Business VisionArticulate a clear, compelling vision for your company. This will guide decision-making, attract talent and investors, and keep the team aligned and motivated. Focus on GrowthSam Altman notes that "growth solves (nearly) all problems." To drive growth, set aggressive but achievable growth targets, monitor key metrics closely, and experiment with different growth strategies. Build Scalable Systems and ProcessesAs you grow, invest in scalable systems and processes. Standardize procedures across departments, invest in the right tools and technologies, and automate repeatable tasks. Master DistributionPeter Thiel emphasizes the importance of distribution. Don't fall into the "Field of Dreams" trap of thinking a great product will sell itself. Develop a robust sales and marketing strategy, focus on customer lifetime value (CLV) exceeding customer acquisition cost (CAC), and experiment with different distribution channels. Sequence Markets CorrectlyStart by dominating a small, specific market before expanding. Identify a niche market with few competitors, become the go-to solution in that market, and gradually expand to adjacent markets. Maintain Financial DisciplineAs you scale, maintain financial discipline. Keep burn rate low until you're sure everything is working, raise slightly more money than you think you need, and be frugal and focus on sustainable growth. Foster a Culture of InnovationEncourage ongoing innovation within your company. Create an environment where new ideas are welcomed, allow time for experimentation, and learn from failures and iterate quickly. Stay FocusedAvoid the temptation to pursue too many opportunities at once. Set clear priorities, say no to distractions, and execute relentlessly on your core mission. Case Study: Superhuman's Engine for Product-Market FitSuperhuman, a popular email client, provides an excellent case study on how to systematically achieve product-market fit (PMF). Here's how they approached it: The ProblemSuperhuman needed a way to measure and improve their product-market fit. They wanted to move beyond gut feelings and create a data-driven approach to product development. The SolutionRahul Vohra, Superhuman's founder and CEO, developed a framework to quantify and systematically increase product-market fit. Here's how they did it: 1. Measure PMF Score: Used Sean Ellis' question: "How would you feel if you could no longer use the product?" Calculated the percentage of users who answered "very disappointed" and aimed for the 40% benchmark Ellis identified as indicating PMF. 2. Segment Users: Divided users into "very disappointed," "somewhat disappointed," and "not disappointed" groups. Focused on understanding and expanding the "very disappointed" group. 3. Analyze Feedback: Asked follow-up questions to understand what users loved and what could be improved. Identified the product's main benefit and who it served best. 4. Build a Roadmap: Prioritized features and improvements based on user feedback. Focused on enhancing the core benefit for the target audience. 5. Repeat and Refine: Continuously measured PMF score and iterated on the product. Gradually improved the score from 22% to 58%. ResultsSuperhuman's systematic approach led to significant improvements: - PMF score increased from 22% to 58%- Clearer understanding of target users and core benefits- More focused product development efforts- Strong foundation for sustainable growth Key Takeaways1. Quantify product-market fit using a consistent metric2. Segment users and focus on your most enthusiastic cohort3. Continuously gather and analyze user feedback4. Build a roadmap that enhances core benefits for target users5. Iterate and measure progress regularly Building and scaling a product company is a challenging but rewarding journey. By following these insights from successful founders and investors, and learning from case studies like Superhuman, you'll be better equipped to navigate the complexities of startup growth and increase your chances of building a thriving, innovative company. Remember, the key is to start with a unique vision, build something people want, focus relentlessly on product-market fit, and continuously iterate based on user feedback and market demands.---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Building and Scaling a Product Company: Insights from Top Founders and Investors

Loadar Raises $4M to Streamline Freight ManagementBelfast startup Loadar has secured $4 million in seed funding to expand its freight procurement and management platform. Founded in 2022 by Ciaran Doherty, Loadar aims to reduce transport costs by 15% for large enterprises. - Funding: $4 million (€3.8 million) seed round- Lead investor: Frontline Ventures- Participating investor: Techstart Ventures- Founder: Ciaran Doherty (CEO) Loadar's platform offers multi-modal logistics solutions covering road, sea, air, and rail. The funding will support US market expansion and doubling the team size within a year. Will Prendergast of Frontline Ventures noted the platform's potential to manage transport costs and reduce carbon footprint simultaneously. Loadar plans to capitalize on the growing need for efficient logistics management in an increasingly disrupted global supply chain landscape. Corsmed Raises €3.3M to Revolutionize MRI ScanningStockholm-based MedTech startup Corsmed has secured €3.3 million in funding to advance its MRI simulator software. The investment round was co-led by Luminar Ventures and Big Pi Ventures, bringing Corsmed's total funding to €9.5 million. - Founded in 2019 by Erik Jacobsson (CEO), Christos Xanthis (CTO), and Athanasios Polimeridis (CSO)- Aims to reduce MRI scan times from 45 minutes to 2-3 minutes- Software can generate high-resolution 3D brain contrasts 10 times faster than current norms- Already used by institutions like The Christie NHS Foundation Trust, CNI College, and Gurnick Academy- Has saved over 80,000 hours of traditional scanner usage The funding will support FDA approval, commercialization, and global distribution efforts. Corsmed's technology aims to democratize MRI scans, potentially saving thousands of lives daily by enabling earlier detection of life-threatening conditions at a fraction of the current cost.Investments is led by:- Magnus Bergman, co-founding Partner at Luminar Ventures- Nick Kalliagkopoulos, Partner at Big Pi Ventures AI Cloud Startup Vultr Secures $333M in Landmark Funding RoundVultr, a West Palm Beach-based cloud infrastructure startup, has raised $333 million in its first external funding round, achieving a valuation of $3.5 billion. Founded in 2014 by David Aninowsky, Vultr offers AI infrastructure and cloud computing services across 32 global data center locations. - Funding: $333 million- Valuation: $3.5 billion- Founded: 2014- Headquarters: West Palm Beach, Florida The investment round was co-led by LuminArx Capital Management and AMD Ventures. This marks Vultr's first equity financing since its inception, following a $150 million credit facility secured in 2021 from Bank of America and JPMorgan Chase. Vultr plans to use the funding to expand its GPU fleet, particularly focusing on AMD's MI300X accelerators, and enhance its global data center network. The company aims to support enterprise customers and AI innovators in building, deploying, and scaling AI worldwide. - David Aninowsky: Founder and Executive Chairman of Vultr- J.J. Kardwell: CEO of Vultr- Tanisha Keshava Bellur: Partner at LuminArx- Mathew Hein: Senior VP and Chief Strategy Officer at AMD This investment highlights the growing demand for AI infrastructure and positions Vultr as a significant player in the rapidly expanding AI chip market, competing with major cloud providers by offering more affordable and flexible infrastructure options. Agave Games Secures $18M Series A for Hit Mobile Game "Find the Cat"Turkish startup Agave Games has raised $18 million in a Series A funding round for its popular mobile game "Find the Cat." The puzzle game, which challenges players to locate cats in complex illustrations, has amassed over 10 million downloads since its August launch.- Total funding: $25.5 million- Post-money valuation: Approximately $100 million- Revenue: $10 million on Android alone (per SensorTower estimates) Investors:- Felix Capital (co-lead)- Balderton Capital (co-lead)- E2VC - Alper Oner: CEO and co-founder- Ali Baran Terzioglu: Co-founder- Burak Kar: Co-founder- Oguzhan Merdivenli: Co-founder- Rob Moffat: Partner at Balderton Capital Agave Games plans to use the funding to expand its team and develop at least two new titles in the coming year. The company leverages AI in its creative process, using it to generate initial game images before human artists refine them. This investment highlights Turkey's growing prominence in the mobile gaming industry, following successful ventures like Peak Games and Dream Games. Agave aims to capitalize on the booming casual mobile game market, with investors seeing potential for it to become a $100 million revenue company. SleepCogni Secures £300,000 in Bridging Round for Insomnia CareSheffield-based medtech startup SleepCogni has raised £300,000 in a pre-approved Enterprise Investment Scheme bridging round, bringing its total funding to £3.9 million. The company, which focuses on insomnia care, received support from existing investors and grants for this latest funding round. 1. Funding: £300,000 raised, total funding now at £3.9 million2. Investors: Existing investors and grants (specific names not disclosed)3. Future plans: Larger funding round planned for 20254. Goals: Achieve CE and FCC approvals, commercialize in the global sleep tech market The leadership team:- Richard Mills: Chief Executive Officer- Mark Milton-Edwards: Newly joined (former head of product and health solutions at Teva Pharmaceuticals)- Joseph Hawkins: Appointed as Chief Operating Officer The company's therapy has shown significant improvements compared to sham control in randomized clinical trials. SleepCogni is also involved in a project with Sheffield Children's NHS Foundation Trust to address insomnia in children, supported by over £340,000 from Innovate UK. Bureau Raises $30M in Series B to Combat Identity FraudCybersecurity startup Bureau has secured $30 million in a Series B funding round led by Sorenson Capital. This investment values the company at $150 million and will fuel its efforts to tackle user identity fraud. - Funding: $30 million Series B- Valuation: $150 million- Lead investor: Sorenson Capital- Other investors: PayPal Ventures, Commerce Ventures Bureau's AI-driven tools, including the Money Mule Score, have attracted clients such as Rapido and IDFC First Bank. The company plans to use the funds for: 1. Geographical expansion into Saudi Arabia, North America, and Mexico2. Workforce growth, aiming for a 41% increase by 20253. Advancement of AI-driven innovations This funding round reflects the growing demand for cybersecurity services, especially as high-profile cyberattacks on companies like Microsoft and Walt Disney continue to rise. Bureau's expansion into emerging markets aligns with the global trend of businesses strengthening their defenses against cyber risks, potentially influencing future investment strategies and national security frameworks. Perplexity AI Secures $500M Funding, Acquires CarbonPerplexity AI, creator of an AI-powered search engine, has raised $500 million in a new funding round, valuing the company at $9 billion. This significant investment, led by Institutional Venture Partners, marks Perplexity's fourth funding round in 2024, dramatically increasing its valuation from $520 million at the start of the year 1. Funding: $500 million raised2. Valuation: $9 billion3. Lead investor: Institutional Venture Partners4. User base: Over 15 million active users (as of March) Alongside this funding news, Perplexity announced its acquisition of Carbon (JDCT Inc.), a startup specializing in retrieval-augmented generation (RAG) technology. This acquisition aims to enhance Perplexity's premium features, allowing users to search through personal files and work messages Perplexity's AI search engine differentiates itself by providing real-time information in a conversational format, similar to ChatGPT but with up-to-date web searches. The company offers both free and subscription-based services, with premium features including internal file search and enhanced finance-related tools The acquisition of Carbon and the substantial funding indicate Perplexity's potential move towards enterprise search solutions, positioning it to compete with other major players in the AI industry such as OpenAI, Google, and Microsoft ---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Perplexity, Loadar, Corsmed, Vultr, Agave Games, SleepCogni, Bureau announces $889 million fundraising

<blockquote>Ayar Labs, a silicon photonics startup valued at $1 billion, has completed a $155 million Series D funding round with investments from major tech players including AMD Ventures, Intel Capital, and Nvidia. The company's optical interconnect technology aims to replace traditional copper-based electrical I/O in chip connectivity, addressing the growing demands of AI infrastructure.</blockquote> Founded in 2015, Ayar Labs has developed in-package optical interconnects that promise to overcome the limitations of copper and pluggable optics. The company's TeraPHY optics transport and SuperNova laser source technologies are designed to eliminate interconnect bottlenecks by enabling faster data movement required for large-scale AI workloads. This innovation is expected to reduce latency, power consumption, and operational costs, ultimately optimizing AI infrastructure efficiency. With AI infrastructure projected to attract over $1 trillion in investment in the next decade, Ayar Labs is positioning itself as a key player in shaping its future. The company has already shipped around 15,000 units to select customers and anticipates growing this number to over 100 million units annually by 2028. The recent funding will be used to expand manufacturing capabilities and increase customer engagements. While the investments from major tech companies like Nvidia, AMD, and Intel suggest potential future deployments of Ayar Labs' technology, industry experts caution against jumping to conclusions. These investments may also serve as a means for these companies to gain insight into Ayar Labs' developments and secure priority access to the technology if they choose to implement it in the future.---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Optical Interconnect Startup Ayar Labs Secures $155 Million in Funding to Revolutionize AI Infrastructure

SandboxAQ, an enterprise SaaS company at the forefront of AI and quantum technology, has recently secured over $300 million in funding, propelling its valuation to an impressive $5.6 billion. This significant investment underscores the growing interest in quantum-inspired AI solutions across various industries and positions SandboxAQ as a leader in the emerging field of AI and quantum technologies. Founded by serial entrepreneur Jack D. Hidary in 2016 while at Alphabet Inc., SandboxAQ emerged as an independent entity in March 2022. The company's core focus lies in developing Large Quantitative Models (LQMs), which differ from traditional Large Language Models by using equations to generate data, offering a more efficient and accurate method for solving complex scientific and business problems. SandboxAQ's technology stack addresses critical challenges across multiple sectors, including healthcare, energy, chemicals, aerospace, defense, and cybersecurity. The company's key focus areas include: 1. AQBioSim: Accelerating drug discovery for neurodegenerative diseases.2. AQChemSim: Advancing materials science, particularly in battery design and chemical manufacturing.3. CardiAQ: A magnetocardiography (MCG) device for more precise cardiac diagnostics.4. AQNav: A real-time AI magnetic navigation system providing an alternative to GPS in denied environments. The recent funding round attracted a mix of prominent investment firms and individual investors, including Fred Alger Management, LLC, T. Rowe Price Associates, Inc., Mumtalakat, Parkway Venture Capital, Breyer Capital, Rizvi Traverse, S32, US Innovative Technology Fund, Guggenheim Investments, and Section 32. Notable individual investors include Eric Schmidt (former Google CEO), Marc Benioff (Salesforce CEO), David Siegel (Two Sigma co-founder), and Yann LeCun (AI scientist and Turing Award winner). Eric Schmidt, who serves as the chairman of SandboxAQ's board, emphasized the importance of LQMs in maximizing the return on investment from AI for leading global enterprises. Jim Breyer of Breyer Capital highlighted the significant growth potential and opportunity for LQMs across various industries, describing SandboxAQ as a "generation-defining company." SandboxAQ has established partnerships with several high-profile organizations, including Accenture, Deloitte, Vodafone Business, Softbank Mobile, Mount Sinai Health System, and the US Air Force. These collaborations aim to expand the company's customer base and drive innovation in quantum-inspired AI solutions. The company's team consists of 55 engineers, scientists, and technologists from diverse fields such as physics, chemistry, AI, neuroscience, cryptography, and mathematics. This multidisciplinary approach allows SandboxAQ to develop practical solutions for a broad range of use cases, including post-quantum cryptography modules to enable global companies to transition to a more secure cyber architecture. As the world enters what SandboxAQ calls the "third quantum revolution," the company is positioning itself at the forefront of AI and quantum software development. By addressing significant business and scientific challenges, SandboxAQ aims to transform industries and drive innovation in critical areas such as drug discovery, clean energy, and data security. With its recent funding and strong backing from industry leaders, SandboxAQ is well-positioned to accelerate the development of its LQMs and AI applications, recruit top talent, and expand its impact across various sectors. As the company continues to grow and innovate, it is poised to play a crucial role in shaping the future of AI and quantum technologies, potentially revolutionizing how businesses and governments approach complex computational challenges.

SandboxAQ: Pioneering the Next Era of AI and Quantum Technologies

In a stunning display of investor confidence, Databricks has secured a record-breaking $10 billion funding round, valuing the company at an impressive $62 billion. This unprecedented raise not only cements Databricks' position as a leader in the data analytics and AI space but also signals a significant shift in the tech investment landscape. Founded in 2013 by a team of data scientists and engineers from the University of California, Berkeley, Databricks has developed a unified data analytics platform that simplifies data engineering, collaborative data science, and machine learning. The company’s Lakehouse architecture combines the best features of data lakes and data warehouses, enabling organizations to process and analyze large datasets efficiently. With a customer base exceeding 10,000, including industry giants like Block and Shell, Databricks has demonstrated substantial growth and influence in the AI and data analytics sectors. The Funding RoundThe recent funding round, led by Thrive Capital with participation from Andreessen Horowitz, Insight Partners, and Iconiq Growth, is notable not only for its size but also for its strategic timing. The $10 billion investment is the largest U.S. venture capital deal of 2024 and second largest ever, only after SpaceX's, reflecting robust investor confidence in Databricks’ business model and growth trajectory. The capital is earmarked for several key initiatives: •	Employee Stock Option Liquidity: A portion of the funds will provide liquidity for employee stock options, enhancing talent retention and attraction by offering financial rewards to existing and prospective employees.•	Product Development: Investment in new AI products will enable Databricks to expand its offerings and maintain a competitive edge in the fast-paced AI industry.•	Acquisitions: The funding provides the financial flexibility to pursue strategic acquisitions, further broadening Databricks’ technological capabilities and market reach.•	International Expansion: With plans to extend its global footprint, Databricks aims to tap into emerging markets and diversify its revenue streams. Databricks is on track to achieve $3 billion in annual revenue by January and anticipates positive free cash flow, indicating a sustainable and profitable business model. Databricks' Market PositionIn the competitive landscape of data analytics and AI, Databricks faces formidable rivals, including Snowflake, Amazon Web Services (AWS), Google Cloud BigQuery, Microsoft, and MongoDB. Each competitor offers distinct solutions in data storage, processing, and analysis: •	Snowflake: Specializes in cloud-based data warehousing, providing scalable storage and analytics services.•	AWS: Offers a comprehensive suite of cloud services, including data storage and machine learning tools.•	Google Cloud BigQuery: Focuses on large-scale data analysis with a fully managed, serverless data warehouse.•	Microsoft: Provides integrated cloud services and AI solutions through its Azure platform.•	MongoDB: Delivers a general-purpose, document-based, distributed database built for modern application developers. Databricks differentiates itself through its Lakehouse architecture, which seamlessly integrates data engineering, data science, and machine learning into a single platform. This unified approach simplifies workflows and accelerates innovation, offering a compelling value proposition to enterprises seeking comprehensive AI solutions. The AI-Driven Market LandscapeThe AI market is experiencing explosive growth, with projections suggesting it will reach $1.81 trillion by 2030, growing at a CAGR of 37.3%. This growth is driven by increasing practical applications of AI technology across industries. Databricks is well-positioned to capitalize on this trend. As George Mathew notes, "Where is this high-quality data coming from? For the enterprise, it's going to come from a place like Databricks". The company's ability to provide high-quality data for AI and machine learning applications gives it a significant advantage in the evolving market. The FutureThe massive funding round provides Databricks with substantial resources to fuel its growth and innovation. The company can now accelerate its product development, expand its global presence, and potentially make strategic acquisitions to strengthen its market position. This funding also validates Databricks' strategy of focusing on AI-driven data analytics. As businesses increasingly rely on AI for decision-making and operations, Databricks is poised to play a crucial role in providing the necessary data infrastructure and tools.The substantial funding and strategic investments position Databricks favorably to capitalize on several emerging trends in the AI and data analytics markets: •	Generative AI: With the acquisition of MosaicML, Databricks has enhanced its capabilities in generative AI, enabling customers to build and deploy sophisticated AI models.•	Data Democratization: By simplifying data access and analysis, Databricks empowers a broader range of users within organizations to leverage data-driven insights, fostering a culture of innovation.•	Industry-Specific Solutions: Tailoring AI applications to specific industries allows Databricks to address unique challenges and opportunities across various sectors, enhancing its market appeal.•	Global Expansion: Entering new international markets diversifies revenue streams and mitigates risks associated with regional economic fluctuations. The raise may also accelerate Databricks' path to an IPO. While the company has the financial flexibility to choose its timing, the strong investor interest could push it towards going public sooner rather than later. Databricks' $10 billion funding round is more than just a financial milestone; it's a testament to the growing importance of AI-driven data analytics in the business world. As companies across industries seek to harness the power of their data through AI and machine learning, Databricks is positioning itself as the go-to platform for these critical needs. The company's journey from a big data tool provider to an AI-powered analytics leader showcases its ability to innovate and adapt. With this substantial funding, Databricks is well-equipped to shape the future of enterprise AI and data analytics, potentially redefining how businesses leverage their data in the AI era. As the AI market continues its rapid expansion, Databricks' success story serves as a beacon for the transformative potential of AI in enterprise technology. The coming years will likely see Databricks playing an increasingly central role in driving AI adoption and innovation across the business landscape. ---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

DataBricks - generational AI company raised $10billion, second largest VC round ever

United States Cala Health, a San Mateo-based bioelectronic medicine company providing medical devices for managing chronic health conditions, raised $50 million. Founded by Kate Rosenbluth, Scott Delp, and Serena Wong, the company is backed by investors including Action Potential Venture Capital, Google Ventures, and Lux Capital. The funding was announced on December 16, 2024. LambdaTest, a San Francisco-based provider of cloud-based tools for cross-browser testing, secured $38 million. Founded by Asad Khan, Jay Singh, and Mayank Bhola, the company's investors include Avataar Venture Partners and Qualcomm Ventures. The announcement was made on December 16, 2024. RapidCanvas, an Austin-based no-code auto AI platform, raised $16 million. Founded by Kedar Samant, Rahul Pangam, and Uttam Phalnikar, the company is backed by Accel, Peak XV Partners, and Valley Capital Partners. The funding was disclosed on December 16, 2024. Silent Push, a Reston-based threat intelligence solution, secured $10 million. Founded by Ken Bagnall, the company's investors include StepStone Group and Ten Eleven Ventures. The announcement was made on December 16, 2024. Sublime Security, a Washington-based AI-powered email security platform, raised $60 million. Founded by Ian Thiel and Joshua Kamdjou, the company is backed by Citi Ventures, Index Ventures, and IVP. The funding was announced on December 16, 2024. Twelve Labs, a San Francisco-based multimodal AI platform for video foundation models, secured $30 million. Founded by Aiden Lee, Dave Chung, Jae Lee, SJ Kim, and Soyoung Lee, the company's investors include Databricks Ventures and Snowflake Ventures. The announcement was made on December 16, 2024. Vapi, a San Francisco-based AI services provider for group meetings, raised $20 million. Founded by John Dearsley and Nikhil Gupta, the company is backed by Abstract, Bessemer Venture Partners, and Y Combinator. The funding was disclosed on December 16, 2024. Ask Sage, a Bentonville-based GPT-driven AI assistant for government teams and corporations, secured $17 million. Founded by Nicolas Chaillan, the company's investors include Mucker Capital and Sapphire Ventures. The announcement was made on December 16, 2024. Aampe, a San Francisco-based mobile app engagement and personalization infrastructure provider, raised $18 million. Founded by Paul Meinshausen, the company is backed by Theory Ventures and Z47. The funding was announced on December 16, 2024. Electrified Thermal Solutions, a Medford-based company focused on decarbonizing industry through renewable heat solutions, secured $19 million. Founded by Daniel Stack and Joey Kabel, the company's investors include Clean Energy Ventures and EDP Ventures. The announcement was made on December 16, 2024. Azimuth AI, a Folsom-based embedded silicon product company for edge computing applications, raised $11.5 million. Founded by Praveen Yasarapu and Sridevi Badiga, the company is backed by AUM Ventures, Cyient, and Moneta Ventures. The funding was disclosed on December 16, 2024. United Kingdom Embeddable, a London-based startup, secured €6 million from OpenOcean. The funding announcement was made on December 16, 2024. Europe Perciv AI, a Dutch startup transforming radar perception for autonomous systems, raised €2.5 million. The funding announcement was made on December 16, 2024. Askel.ai, a Tallinn-based startup, secured €380,000 in a pre-seed funding round led by Superangel. The announcement was made on December 16, 2024.

$299 million Startup Funding Announcements 

India has emerged as a standout performer in the global landscape of tech initial public offerings (IPOs) in 2024, defying the broader trend of subdued listing activity worldwide. As the world’s most populous nation, India is now gearing up for a significant surge in startup IPOs in 2025, with over 20 companies readying to go public. According to TechCrunch, 12 startups, including seven tech-focused firms, debuted on Indian stock exchanges in 2024. This robust performance starkly contrasts with major markets like the United States, China, Europe, and the United Kingdom, where tech IPO activity has remained stagnant or declined. India’s distinct position in the global IPO landscape can be attributed to several factors: robust economic growth, a rise in domestic capital, and political stability. The country’s capital markets have experienced remarkable progress, with market capitalization doubling and daily trading volumes tripling between 2019 and 2024. A diverse lineup of companies is preparing for public listings in 2025, including business-to-business platforms like Infra.Market and Zetwerk, quick-commerce startup Zepto, e-commerce giant Meesho, and investment app Groww. Swiggy, the food delivery platform, has already made headlines with its $1.35 billion IPO in 2025, marking the largest global tech listing of the year. This flurry of IPO activity comes against the backdrop of a slowdown in private market dealmaking, prompting startups to focus on financial discipline and accelerate their IPO readiness. This shift represents a turning point for the Indian market, which has traditionally grappled with limited exit options and skepticism toward loss-making firms entering public markets. Currently, tech and healthcare firms make up less than 20% of India’s Nifty 50 index, compared to over 50% in the S&amp;P 500. This underscores the untapped potential for growth in India’s tech sector. With a wave of IPOs on the horizon, India is poised to cement its status as a leading destination for tech listings, propelled by a dynamic capital market and a flourishing innovation ecosystem.

India's Tech IPO Boom: 20 companies preparing for IPO

Business transactions are now so fast that the selection of a suitable B2B payment platform can help to smooth transactions and cash flow. There are now so many options presented that it is hard to decide which best meets the needs of the business. This article gives an overview of key factors and how one may go about choosing a suitable <a href="https://eximpe.com/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">B2B payments platform</a> for the company. Understanding B2B Payments B2B payments are business-to-business transactions, which also involve the purchase of both goods and services. The frequency of transactions can be quite infrequent, and the amount can greatly vary. This means that it is prudent to have a strong payment solution that caters to your needs. A good B2B payments platform will help you automate processes, provide cost-cutting benefits, and efficiency while strictly keeping within the bottom line. Common Types of B2B Payment Methods <ol><li>ACH Transfers: Commercial businesses also use Automated Clearing House (ACH) transfers so that they can electronically <a href="https://eximpe.com/use-cases-for-importers/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">send payments</a> and <a href="https://eximpe.com/use-cases-for-exporters/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">receive payments</a>. Periodic payments may be transferred at a relatively low cost using ACH.</li><li>Credit Cards: Several companies can accept credit card payments for their services or products. This payment method is more convenient but comes with even higher processing fees.</li><li>Wire Transfers: This method is considered very secure and rather prompt. However, the transfer usually comes with huge fees. International wire transfers are normally much slower than domestic wire transfers.</li><li>Checks: Though conventional, checks are very rare today because the processing times are longer, and they are prone to fraudulent acts.</li><li>Digital Wallets: Increasingly used, digital wallets provide easy and quick online payment methods.</li></ol> Key Features to Look for in a B2B Payments Platform <ol><li>Versatile Payment Options: A good B2B payment platform should offer a variety of payment methods to accommodate your business's needs. This flexibility ensures that you can cater to the preferences of your suppliers and clients, whether they prefer ACH transfers, credit cards, or digital wallets.</li><li>Integration Capabilities: Ensure that the B2B payments platform you choose can seamlessly integrate with your existing accounting software and enterprise resource planning (ERP) systems. This integration will streamline your financial operations and reduce manual data entry errors.</li><li>Cost Efficiency: Cost is a significant factor when selecting a payment solution. Evaluate the transaction fees associated with each platform and consider how these costs will impact your overall budget. Some platforms may offer lower fees for high-volume transactions or provide cashback incentives through virtual cards.</li><li>Security Features: Given the sensitive nature of financial data, security should be a top priority when choosing a B2B payments platform. Look for features such as encryption, fraud detection tools, and compliance with industry regulations like PCI DSS to protect your business from potential threats.</li><li>Real-Time Reporting and Analytics: A robust payment solution should provide real-time visibility into your payment workflows. This feature allows you to track invoices, monitor cash flow, and analyze payment trends effectively—essential for making informed business decisions.</li><li>User-Friendly Interface: An intuitive user interface is vital for ensuring that both your team and your clients can navigate the platform easily. A complicated system can lead to frustration and errors, so prioritize platforms that offer straightforward navigation and clear instructions.</li><li>Customer Support: Reliable customer support is crucial when dealing with financial transactions. Choose a B2B payments platform that offers responsive customer service through multiple channels—such as phone, email, or chat—to resolve any issues quickly.</li><li>Scalability: As your business grows, so will your payment needs. Select a platform that can scale with you, accommodating increased transaction volumes or additional features as required without compromising performance.</li></ol> Evaluating Your Options Once you have identified the key features you need in a platform, it's time to evaluate potential providers:<ul><li>Research Reviews: Look for customer reviews and case studies to understand how different platforms perform in real-world scenarios.</li><li>Request Demos: Many providers offer free trials or demos of their platforms. Take advantage of these opportunities to assess usability and functionality firsthand.</li><li>Compare Pricing Models: Different platforms have varying pricing structures—some charge per transaction while others may have monthly fees or tiered pricing based on usage.</li></ul> Final Thoughts Now that you understand the essential features of a B2B payments platform, you can begin evaluating options that align with your business needs. Ensure that you thoroughly assess each provider's offerings regarding versatility, integration capabilities, security measures, and cost efficiency. By selecting the right payment solution tailored to your organization's requirements, you'll not only streamline operations but also enhance relationships with suppliers and clients alike. Stay proactive in monitoring trends in B2B payment technology to ensure that your chosen solution continues to meet your evolving business demands. For more insights on optimizing your financial operations, follow us as we explore the latest trends in B2B payment solutions!

How to Choose the Right B2B Payment Solution for Your Business

Uber, the tech giant known for revolutionizing transportation, is making waves in the artificial intelligence industry with its new division, Scaled Solutions. This innovative venture transforms Uber's internal data labeling team into a powerhouse serving both in-house needs and external clients, marking a significant leap into the AI services market. Scaled Solutions: A Game-Changer in AI Data AnnotationUber's Scaled Solutions is rapidly emerging as a formidable player in the AI data labeling arena. With a global workforce spanning the United States, Canada, India, Poland, and Nicaragua, this division offers a comprehensive suite of services including:Image and video annotation<ul><li>Text labeling</li><li>Map validation</li><li>AI-generated code evaluation</li></ul> The team's expertise stems from Uber's vast experience in managing gig economy workers, giving them a unique edge in the market. High-Profile Partnerships and Market ImpactScaled Solutions has already caught the attention of industry leaders. Partnerships with Aurora Innovation, a self-driving vehicle company, and Niantic, the creator of Pokémon Go, showcase the division's capabilities and market appeal. These collaborations not only validate Uber's approach but also position the company as a serious contender in the AI services sector. Competing in a Growing MarketThe launch of Scaled Solutions puts Uber in direct competition with established players like Scale AI and challenges traditional BPO providers such as TaskUs and Telus International. Uber's entry is poised to disrupt the market dynamics, leveraging its unique position at the intersection of gig economy management and AI technology. Strategic Advantages of Scaled SolutionsBy separating Scaled Solutions from its core business, Uber gains several strategic advantages:1. Revenue Diversification: Expanding beyond ride-hailing and delivery services.<ol><li>Expertise Utilization: Applying gig economy management skills to a new, high-growth sector.</li><li>Market Expansion: Tapping into the rapidly growing AI data labeling market.</li><li>Specialized Development: Creating tools and processes tailored for AI data annotation.</li><li>External Client Focus: Effectively marketing and providing services to a broader client base.</li></ol> The Future of AI ServicesUber's bold move into AI data labeling through Scaled Solutions represents a significant shift in the company's strategy. It positions Uber not just as a transportation and delivery company, but as a potential leader in AI services. As the demand for high-quality data annotation continues to grow in the AI industry, Uber's Scaled Solutions is well-positioned to play a crucial role in shaping the future of artificial intelligence development. ﻿This strategic expansion showcases Uber's adaptability and foresight, potentially transforming the company into a major player in the AI services industry while maintaining its stronghold in the transportation sector. As Scaled Solutions continues to evolve and attract more high-profile clients, it may well become a cornerstone of Uber's future growth and innovation strategy. ---Join the Future of Venture Investing with Newnex<a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering seamless collaboration between General Partners (GPs), Limited Partners (LPs), and startups. Designed for institutional investors, our platform streamlines syndication and co-investment across both direct and LP deals. With a mission to unite over 5,000 VC and LP firms on a single, unified platform, Newnex enables effortless private deal-making based on reference-only transactions.

Uber Revolutionizes AI Data Labeling with Scaled Solutions

In the world of startups, venture capital often seems like the holy grail. However, a growing number of entrepreneurs are choosing a different path: bootstrapping. This approach, which involves building a business without external funding, offers unique advantages and challenges. The Power of Self-Funding Bootstrapping allows entrepreneurs to maintain complete control over their company's direction, culture, and values. This autonomy can be invaluable, especially when the founder's vision doesn't align with typical investor expectations. Many successful companies have bootstrapped their way to significant acquisitions, retaining 100% ownership until the exit. Strategies for Success Focus on Revenue: Successful bootstrapped businesses often generate revenue quickly and solve immediate, painful problems for customers willing to pay. Some platforms build their business models around immediate monetization by taking a small cut of each transaction. Niche Domination: Start by focusing on a specific, underserved segment of your target market. Many successful companies began with a narrow focus before expanding to serve a broader audience. Creative Problem-Solving: Limited resources force bootstrapped startups to find innovative solutions. Some companies have found success by focusing on doing a few things exceptionally well, resulting in products known for their simplicity and ease of use. Building a Strong Team Attracting talent without high salaries can be challenging, but many bootstrapped companies have found success by offering non-monetary benefits. Some startups attract talent by openly sharing the company's revenue, salaries, and equity distribution. Defining Your Own Success Bootstrapping allows entrepreneurs to define success on their own terms. Whether it's building a profitable lifestyle business, creating a company with positive impact, or eventually selling for a significant sum, the bootstrap path offers flexibility and control. In conclusion, while bootstrapping may not be suitable for every business, it offers a viable alternative to the venture capital route, allowing entrepreneurs to build resilient, profitable companies while maintaining their vision and independence.

Bootstrapping: The Path to Business Success Without Venture Capital

Atomico published <a href="https://www.stateofeuropeantech.com/keynote" rel="noopener noreferrer" target="_blank">The State of European Tech 2024</a> report, a comprehensive overview of the European tech ecosystem's growth, challenges, and future prospects over the past decade. Europe's tech ecosystem has experienced remarkable growth over the past decade, according to the State of European Tech 2024 report. Since 2015, the continent's tech talent pool has expanded sevenfold, while total investment volume has increased tenfold, reaching approximately $45 billion in 2024. The number of companies valued at over $1 billion has grown from 72 in early 2015 to 358 in 2024, demonstrating Europe's ability to nurture startups from inception to IPO. The report highlights significant improvements in the entrepreneurial culture. A majority of experienced founders note positive changes in various aspects of the tech landscape, with 79% seeing improvement in access to capital and 77% noting better availability of talent. However, challenges remain. The report identifies a $375 billion growth stage funding gap compared to the US. There's also a concerning trend of European founders considering starting their companies in the US, with 23% indicating they would do so today, although 72% would still choose to stay in Europe. The report outlines six key areas for improvement, including addressing the low 0.007% share of European pension funds invested in European VCs. Initiatives such as the Tibi initiative, WIN-Initiative, and Mansion House Compact are emerging to tackle these challenges. The European tech ecosystem is increasingly focused on solving major global challenges. Notably, 11% of US tech companies have European founders, while only 6% of European tech companies have US founders, indicating a flow of talent from Europe to the US. Looking ahead, the report sets ambitious goals for the next decade, including the creation of over 15 million new tech jobs, the emergence of trillion-dollar companies, and an added ecosystem value exceeding $5 trillion. These projections underscore the potential for continued growth and innovation in European tech, provided the identified challenges are effectively addressed. As the ecosystem matures, the emphasis on sustainable growth, equal access to opportunities, and strategic policy initiatives will be crucial in realizing the full potential of European tech. The next decade promises to be transformative, with the potential to reshape Europe's economic landscape and its role in global innovation. In summary: • Europe's tech talent pool has grown 7x since 2015 • Total investment volume increased 10x in 10 years, reaching ~$45B in 2024 • Number of $1B+ valued companies in Europe grew from 72 in 2015 to 358 in 2024 • 79% of experienced founders see improvement in access to capital • 77% note better availability of talent • $375B growth stage funding gap compared to the US • 23% of European founders would start their company in the US today • 72% of European founders would still choose to stay in Europe • Only 0.007% of European pension funds are invested in European VCs • 11% of US tech companies have European founders, while 6% of European tech companies have US founders • Key initiatives addressing challenges: Tibi initiative, WIN-Initiative, Mansion House Compact • Goals for the next decade:&nbsp;- Creation of 15M+ new tech jobs&nbsp;- Emergence of trillion-dollar companies&nbsp;- Added ecosystem value of $5T+ • Focus on solving major global challenges and creating role models across sectors and countries

The State of European Tech 2024: A Decade of Growth and Future Potential

The European Union’s ambition to lead in green tech and innovation has hit a wall with the troubles facing two of its most prominent startups: Northvolt, the battery manufacturing giant, and Lilium, the electric vertical take-off and landing (eVTOL) pioneer. Both companies have been hailed as symbols of Europe's technological progress, receiving substantial public funding and private investments. Yet, they are now grappling with financial crises that expose the fragile foundation of Europe’s tech ambitions. What Went Wrong at Northvolt?Northvolt, once poised to challenge China's dominance in battery production, has stumbled under the weight of its own aspirations. Despite raising over $15 billion from investors including Volkswagen and JPMorgan, the company is struggling to deliver commercially viable results. Commercial Failures:1. Unrealistic Scaling Goals:&nbsp;&nbsp;&nbsp;Northvolt aimed to rapidly scale up production at its flagship gigafactory in Skellefteå, Sweden. However, the company underestimated the complexities of ramping up manufacturing at scale, leading to production delays and quality issues.&nbsp; 2. Missed Market Expectations:&nbsp;&nbsp;Automotive giants like BMW and Volvo expected high-quality, cost-competitive batteries. Northvolt’s inability to deliver on time forced customers to cancel contracts, such as BMW’s $2 billion order, which significantly impacted the company’s financial stability.a 3. Cost Challenges:&nbsp;&nbsp;&nbsp;Competing with cheaper Asian manufacturers, particularly those in China, proved a daunting challenge. Northvolt's batteries were more expensive to produce due to high labor costs, energy costs in Europe, and inefficiencies in scaling production. 4. Lack of Diversified Revenue Streams:&nbsp;&nbsp;Unlike competitors that serve multiple sectors, Northvolt remained overly reliant on the automotive industry, making it vulnerable to fluctuations in demand or customer pullouts. What Went Wrong at Lilium?Lilium’s ambitious vision of eVTOL air taxis captivated investors and governments alike, but its commercial strategy fell short in several critical areas. The company’s failure to secure funding and its decision to file for insolvency have highlighted deeper issues in its business model. Commercial Failures:1. Unrealistic Product Timelines:&nbsp;&nbsp;Lilium promised to bring its eVTOL aircraft to market quickly, but the complexities of certification and technological hurdles slowed progress. This delay eroded investor confidence and put the company at odds with its funding needs. 2. High Development Costs:The development of eVTOL aircraft is extraordinarily capital-intensive, requiring billions of euros in funding. Despite raising a total of approximately $375 million from eight funding rounds, including significant investments from Tencent, Atomico, and Earlybird, Lilium faced mounting operational and development costs that far outpaced its available resources. 3. Limited Market Demand:&nbsp;&nbsp;The concept of urban air mobility remains speculative. Despite initial hype, practical challenges—such as infrastructure requirements, air traffic control integration, and regulatory hurdles—cast doubt on the market’s near-term viability. This uncertainty discouraged potential customers and investors. 4. Unproven Technology:&nbsp;&nbsp;Lilium’s reliance on a unique ducted fan design for its aircraft raised technical and efficiency questions. Many industry observers were skeptical about whether the technology could meet the range, speed, and payload requirements to make the business commercially viable. Public Funding ReceivedBoth companies were bolstered by substantial public funds intended to drive innovation and sustain Europe’s technological edge: Northvolt:&nbsp;- $1 billion from the European Investment Bank.&nbsp;- €902 million approved by the European Commission for a German battery plant.&nbsp;- SEK 625 million (€55 million) in Swedish government grants.&nbsp;- Investments from Swedish pension funds, totaling SEK 5.8 billion (€513 million). Lilium:&nbsp;- Initially approved for a €220 million funding commitment from the French government, contingent on production facilities in France.&nbsp;- The company’s German funding request for €100 million was ultimately denied. Key Private InvestorsBoth startups attracted significant venture capital investments, often from funds backed by public money:- Northvolt: Backed by Volkswagen, Goldman Sachs, and EIT InnoEnergy, the EU-backed energy innovation fund.- Lilium: Received funding from Atomico, which itself benefits from support by the European Investment Fund (EIF). The Broader European ContextThe struggles of Northvolt and Lilium highlight systemic issues in Europe’s ability to support its tech sector: 1. Funding Gaps: Europe lags significantly behind the U.S. in venture capital funding. In 2023, European startups attracted $45 billion, compared to $120 billion in the U.S. 2. Policy Deficiencies: Unlike the U.S.’s Inflation Reduction Act, which provides robust incentives for clean energy, Europe’s support systems lack clarity and scale. Bureaucratic hurdles and slow approval processes hinder the ability to respond quickly to market needs.﻿The crises at Northvolt and Lilium underscore the need for Europe to rethink its tech funding strategies. While public money has flowed into promising ventures, it has not been matched by sustained private investment or a supportive ecosystem for growth. Both companies' failures point to larger structural issues, including the difficulty of scaling complex technologies, the high costs of operating in Europe, and limited market readiness for futuristic products.

European Tech Dream Stumbles: What Went Wrong with Northvolt and Lilium, Their Public Funding, and the Broader Context

We've all heard the classic advice on founding and scaling a startup: find the right co-founders, raise venture capital, and build key relationships early to ease fundraising, recruitment, and growth. But the truth is that scaling a startup often means confronting the hard realities of life. Not everyone has a co-founder—or a good one. For every productive co-founder relationship, there are plenty that don’t work out. Some co-founders may lack motivation, some may struggle to execute, and others face personal challenges that impact their work. The fact is, startups are built by people, and people are complex. So, instead of viewing scaling purely as a growth exercise, think of it as a process of stakeholder risk mitigation. Anticipate potential risks: the impact of a mismatched co-founder, the fallout from a poor hire, or a venture capitalist's hesitation to invest. Think from their perspectives. Identify what each stakeholder risks in joining your journey, then actively propose strategies to mitigate those risks. Make it easy for them to say "yes" by demonstrating that you've considered and addressed the challenges. In other words, scale by thinking for others. When thinking about risk mitigation in practical terms, especially when scaling a startup, it’s essential to recognize the motivations and risk tolerance of each stakeholder. Here’s how this approach can work across different areas: 1. Hiring: Startups often lack the brand prestige, competitive salaries, and stability of established companies. But by understanding a candidate’s motivations—whether they’re seeking autonomy, creative input, rapid growth, or financial gain—you can tailor a compelling offer that aligns with these drivers. For instance, if they’re motivated by independence, offer a clear pathway to lead initiatives. If it’s monetary, structure a competitive equity package or performance-based incentives. Once you secure the hire, document what persuaded them to join. This ensures you stay aligned with their motivations over time, promoting longevity and satisfaction in the role. 2. Selecting or Compensating for a Co-Founder: Many entrepreneurs partner with friends or acquaintances as co-founders, often due to shared interests or life circumstances. But the reality is that not all co-founders are equally invested in the startup's risks and rewards, and not everyone will handle the journey’s inevitable challenges. If you don’t have a co-founder, it doesn’t mean scaling is off the table; it means building additional layers of support. Start by hiring a strong second-in-command, someone like a “Sheryl Sandberg” to your “Mark Zuckerberg,” who can bring stability and help balance the load. This structure reduces reliance on a single person, making the company more resilient and attractive to investors. 3. Securing Venture Capital: Venture capitalists face a high degree of risk, particularly with team-related uncertainties. Their biggest concern is often not just the product or market risk but the risk within the founding team itself. This is why VCs tend to prefer companies with co-founders, as it provides continuity if something happens to one founder. If you're a solo founder, address this by demonstrating a well-rounded, capable team that can maintain momentum if you’re unavailable. Offer solutions that de-risk their investment: show a reliable operational plan, clarify succession strategies, and present a capable, diversified team. Doing so not only increases your chances of fundraising success but reassures VCs that you’ve anticipated and mitigated key risks, making you a stronger investment choice. <blockquote>Adopting a mindset of risk mitigation —thinking from others’ perspectives and addressing their potential concerns—can take you far in building a successful, resilient company. This approach doesn’t just apply to hiring or securing investment; it’s invaluable for securing clients, expanding into new markets, and ultimately planning for a successful exit.&nbsp;</blockquote> Exit strategy, in particular, deserves a separate conversation. But the essence is this: by creating pathways for various exit opportunities, you increase the company’s value and flexibility. Sometimes, you can position your company as an asset to potential acquirers by showing them that acquiring you will make them stronger than going it alone. When this value is evident, an exit becomes not just possible but almost inevitable. In short, by focusing on risk mitigation and strategically aligning with others’ goals, you can build a foundation for growth, resilience, and the eventual realization of the company’s full potential.

For Resilient Startup Scaling, Embrace Stakeholder Risk Mitigation

Venture capital (VC) is a powerful funding source for startups with high growth potential. As a founder, understanding how VC works and how decisions are made is crucial for navigating the fundraising landscape and scaling your business. How Venture Capital WorksVenture capital firms invest money into promising startups in exchange for equity. These firms raise funds from limited partners (LPs), such as wealthy individuals, pension funds, and institutions. The VC firm then deploys this capital across a portfolio of startups, aiming to generate significant returns. The Investment Process1. Pitch and Due Diligence: Founders present their business to VC firms, often through warm introductions. If interested, the VC conducts thorough due diligence on the startup.2. Term Sheet: Upon deciding to invest, the VC presents a term sheet outlining investment terms, including valuation and equity stake.3. Funding Rounds: Startups typically go through multiple funding rounds (Seed, Series A, B, C, etc.) as they grow, with each round involving larger investments.4. Board Seats: VCs often take board seats to actively guide the company's strategic direction.5. Exit: VCs target a profitable exit, often through acquisition or IPO, ideally within 5 to 10 years. However, many companies take longer to reach this stage, which is accepted (tolerated) as long as the startup maintains strong growth. A clear path to exit is a critical factor in deal assessment, helping VCs gain the confidence needed to invest. What VCs Look For- Large market opportunity- Scalable business model- Strong founding team- Traction and growth metrics- Competitive advantage Pros and Cons for FoundersPros:- Access to significant capital- Expertise and networks- Credibility boostCons:- Dilution of ownership- Pressure to grow rapidly- Loss of some control Stages of VC Funding- Pre-seed: Very early stage, often for product development- Seed: Initial funding to get operations off the ground- Series A, B, C: Progressive rounds for scaling and expansion Venture Capital Decision-Making ProcessThe VC decision-making process is a structured approach that firms use to evaluate potential investments. Understanding this process can help founders better prepare and navigate their fundraising journey. Discovery PhaseIn this initial stage, VCs become aware of potential investment opportunities through various channels:- Warm introductions from trusted sources- Attending startup events and pitch competitions- Inbound applications or cold outreach from founders- Proactive research and tracking of promising startupsVCs often use tools and databases to monitor startups' growth metrics and industry trends. As a founder, making yourself visible in the startup ecosystem and building relationships early can be beneficial. Capture PhaseOnce a startup is on a VC's radar, it enters their tracking system:- The startup's information is added to the VC firm's Customer Relationship Management (CRM) system- Associates or analysts gather initial data about the company- Some firms may begin engaging with the startup by sharing relevant research or insightsFounders should ensure that the information they share is accurate and consistent across various platforms. Shameless Plug for Newnex:Newnex is an all-in-one platform where VCs can efficiently receive deals, engage with founders, and seamlessly refer opportunities to other VCs. By moving beyond traditional, siloed CRM systems, Newnex fosters a truly collaborative and connected experience. Our ambition is to shape the future of institutional investing, empowering VCs, LPs, and founders with a streamlined, future-ready approach to deal-making. Initial ReviewAt this stage, junior members of the VC firm (often associates or analysts) conduct a preliminary assessment:- They review the startup's pitch deck and available information- They may have initial conversations with the founding team- The goal is to determine if the opportunity aligns with the firm's investment thesis and warrants further investigationIt's important for founders to engage professionally with all team members, as these junior staff often play a crucial role in championing deals internally. Deep DiveIf a startup passes the initial review, the VC firm conducts a more thorough analysis:- A partner or senior team member typically leads this phase- They examine the startup's metrics, competitive landscape, and key areas of interest in detail- The team may conduct customer references, market research, and financial analysis- This process often results in an internal investment memo summarizing all findingsFounders should be prepared to provide detailed information and facilitate any due diligence requests during this phase. Investment Committee PresentationThe final decision-making stage involves presenting the investment opportunity to the firm's investment committee:- The lead partner or deal team presents the startup to the committee- They discuss the opportunity, potential risks, and expected returns- The committee may ask for additional information or clarificationThe exact decision-making process varies among firms. Some use a voting system, while others rely on consensus or give certain partners veto power. Decision and Term SheetBased on the investment committee's decision, the VC firm will:- Decline to invest and communicate their reasons to the founder- Express interest in investing and issue a term sheet outlining proposed investment terms- Request additional information or time to make a decisionIf a term sheet is issued, this initiates the negotiation phase, leading to the final investment agreement if both parties reach mutually acceptable terms. Post-Investment InvolvementAfter investing, VCs typically:- Take a board seat or observer rights- Provide ongoing support and guidance to the startup- Monitor the company's progress and help with future fundraising rounds Timeline:The timeline for deal-making can range widely, from as short as 3-4 weeks to over a year. For highly sought-after startup deals, where multiple investors are actively aligning to make it happen, deals might close in as little as four weeks. However, the typical timeline for a solid deal is usually around 4-6 months. For deals that may not be a perfect fit or lack clear growth indicators, the process could extend beyond a year. Founders should begin engaging with potential investors early—well before officially launching their fundraising efforts—to keep them informed and foster interest ahead of the formal process. Understanding these basics and the decision-making process can help founders approach VC funding strategically, aligning it with their startup's growth trajectory and long-term vision. It's important to note that while this outlines a typical process, each VC firm may have its own unique variations and criteria for decision-making. By being well-prepared and informed, founders can increase their chances of securing venture capital funding and building successful partnerships with investors.---<a href="https://newnex.io/praveen" rel="noopener noreferrer" target="_blank">Praveen Paranjothi </a>founded Newnex after&nbsp;investing over $500 million in LP and direct venture capital across top-tier firms such as the European Investment Fund, Siemens Pensions, and serving on 15+ boards across Europe, Israel, the US, and India. His vision: to bring greater efficiency to institutional venture capital investing. If public markets can operate seamlessly, so can private markets—and that’s the mission behind Newnex. We invite startups, VCs, LPs, CVCs, and family offices to join us in shaping the future of institutional investing: <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a> Read more about <a href="https://www.newnex.io/blogs/venture-capital/what-is-philanthropic-venture-capital-aka-venture-philanthropy" rel="noopener noreferrer" target="_blank">Venture Philanthropy</a>, maybe that's an interesting instrument for your startup.

Venture Capital: An Essential Guide for Startup Founders Raising from VCs

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