### Benchmark's Strategic Investment  
**Benchmark**, the renowned U.S. venture capital firm, has made headlines by leading a significant funding round for the Chinese startup **Butterfly Effect**, which is the driving force behind the **Manus AI agent**. This AI agent recently gained immense popularity on social media, drawing attention and interest from various sectors.  

### The Valuation  
The funding round has reportedly valued **Butterfly Effect** at approximately **$500 million**, marking a notable achievement for the startup in the competitive landscape of artificial intelligence.  

This investment highlights Benchmark's ongoing strategy to support innovative technology companies, capitalizing on trends in AI and social media engagement.

 Benchmark, the U.S. venture capital firm known for early investments in Uber and Snap, has led a funding round for the Chinese startup that operates Manus, an artificial intelligence agent that went viral on social media last month, according to a person with knowledge of the deal. 

 The deal valued the startup, Butterfly Effect, at about $500 million, the person said. The Information  reported 

Benchmark Backs Chinese AI Startup Behind Viral Manus Agent

### Elon Musk’s Ambitious Venture

Elon Musk’s **XAI Holdings** is currently in discussions with investors to secure approximately **$20 billion** in funding. This funding is intended for his newly merged **artificial intelligence** startup and social media business, as reported by sources familiar with the negotiations.

### A Record-Breaking Funding Round

If this deal comes to fruition, it would mark the **second-largest startup funding round** in history, only surpassed by **OpenAI’s** remarkable **$40 billion** financing earlier this year. The anticipated transaction could potentially assign a valuation of over **$120 billion** to Musk's company, according to insiders who requested anonymity due to the private nature of the discussions.

Elon Musk’s XAI Holdings is in talks with investors to raise roughly $20 billion in funding for his newly combined artificial intelligence startup and social media business, according to people familiar with the matter.

Elon Musk's XAI Holdings Seeks to Raise a Groundbreaking $20 Billion in Funding

Slate Auto, backed by **Jeff Bezos**, is making waves with its newly launched **barebones electric truck** priced at just **$20,000**. This innovative vehicle aims to bring **affordability** back to the forefront as inflation continues to impact everyday prices.

### The Truck Specifications
The Truck features a **two-door, two-seater** design in a sleek **slate gray**. It embraces simplicity with **crank windows**, no entertainment system, and a smartphone mount for your devices. The truck is compact, measuring less than 15 feet long, akin to a **1985 Toyota pickup**.

### Affordability Redefined
Slate's CEO, **Chris Barman**, emphasizes the need to redefine what affordability means in the auto industry, stating, "**The definition of what’s affordable is broken.**" With the inclusion of a federal EV tax incentive, the Truck is set to disrupt the market.

### Customization and Features
While the design is minimalist, Slate plans to offer a variety of **customizable accessories** including wraps and bed caps. The Truck boasts a **maximum range of 150 miles** on a single charge, with an optional longer-range battery extending it to **240 miles**. Performance-wise, it can accelerate from **0 to 60 mph in eight seconds**, achieving a top speed of **90 mph** with **201 horsepower** and **295 pound-feet of torque**.

### Production Plans
Slate intends to manufacture the Truck in the **US**, although the exact factory location remains undisclosed, with reports suggesting it may be in **Indiana**. 

### Investment and Future Plans
Slate has successfully raised **$111 million** from investors including Bezos and others, paving the way for this ambitious project. While the trucks are not expected to be delivered until **late 2026**, interested customers can reserve one with a **refundable $50 fee**.

![Slate Truck](https://nypost.com/wp-content/uploads/sites/2/2025/04/000-federal-tax-incentives-evs-103309406.jpg?w=1024)
*Slate Auto's new electric truck, a step towards affordable electric vehicles.*

Jeff Bezos-backed startup Slate Auto is launching a barebones electric truck for just $20,000 as it calls for a return to affordability after years of stubborn inflation drove everyday prices up.

Introducing Slate Auto's $20K Electric Truck: A Game Changer for Affordability

Local communications coach and entrepreneur **Abbey Lovett**, alongside a group of passionate local business founders, is excited to announce the **Founders Fest 2025**, set to take place next month. This **new event** aims to celebrate **innovation and entrepreneurship** in **Baton Rouge**.

![Abbey Lovett](https://s25562.pcdn.co/wp-content/uploads/2024/11/AbbeyProof_77-1068x712.jpg.webp)

Lovett, who successfully launched **Pathos Collective** last year, was inspired to create Founders Fest after **Nexus Louisiana** revealed it would be replacing its traditional **Baton Rouge Entrepreneurship Week (BREW)** with the **Nexus Technology Cup**—a three-day competition for tech innovators. 

She emphasizes that **Founders Fest** is not a competitor to the Technology Cup but rather an opportunity to fill the void left by BREW, offering local founders a chance to connect and access invaluable resources. 

> “We just see this as an opportunity to add to what (Nexus is) doing without sacrificing the opportunity to connect and pour into one another,” Lovett shares. 

The festival will occur on **May 28-29**, featuring two parts: 
- **Day One** will showcase speakers and panelists dedicated to helping entrepreneurs gain clarity on their next business steps. 
- **Day Two** will feature **Chris Meaux**, founder of **WAITR** and now **QiMana**, who will guide attendees through his **“Napkin to Nasdaq”** framework, teaching how to take businesses from idea to exit. 

> “I want to help business owners understand what it takes,” Meaux states, promising a comprehensive understanding of business management. 

The location for **Founders Fest** will be revealed as the event date approaches. Tickets are priced at **$20** and can be purchased **online**.

Local communications coach and entrepreneur Abbey Lovett, along with a group of local business founders, is launching Founders Fest 2025 next month—a new event aimed at celebrating innovation and entrepreneurship in Baton Rouge.  Lovett, who launched Pathos Collective last year, says she was inspired to create the event after Nexus Louisiana announced it would replace […]

Founders Fest: A New Celebration of Innovation in Baton Rouge!

Welcome to **Startups Weekly** — your essential recap of the most exciting developments in the startup world. Want it delivered to your inbox every Friday? [Sign up here](https://techcrunch.com/newsletters/).

This week highlighted that **deals can still thrive** in uncertain times, but **price considerations** are becoming increasingly significant.

## Most Interesting Startup Stories from the Week

![Image of an electric scooter charging](https://techcrunch.com/wp-content/uploads/2023/09/ather-energy.jpg?w=680)
*Image Credits: Ather Energy*

Uncertain times are seldom favorable for **M&As**, raising concerns that **tariff turmoil** could jeopardize the startup exit outlook for 2025. However, recent news confirms that a **total deal drought** is unlikely.

**Price Conscious**: Anysphere, the firm behind Cursor, is experiencing rapid growth, making a rumored acquisition by OpenAI **off the table**. The rivalry between AI coding assistants Cursor and Windsurf is intensifying.

**Plane View**: Datadog has acquired **AI-powered data observability startup Metaplane**, a Y Combinator alum that has raised approximately **$22.2 million**.

**Hired**: Erik Torenberg has joined **a16z** as a partner after being **acqui-hired** along with his podcast network, Turpentine.

**Downsized**: Ather Energy, an Indian EV startup, has reduced its IPO size and target valuation due to current market conditions.

## Most Interesting VC and Funding News This Week

![Supabase co-founders](https://techcrunch.com/wp-content/uploads/2025/04/Supabase-Ant-Wilson-Paul-Copplestone.jpg?w=680)
*Image Credits: Supabase*

This week confirmed that **vibe coding** is trending, alongside startups in various sectors securing funding. There remains a healthy appetite for investments in **emerging markets**.

**Vibe Coding**: Supabase, an open-source database startup, raised **$200 million** in Series D funding, doubling its valuation from **$900 million to $2 billion** in just seven months.

**Too Many Chats**: Manychat, an AI tool for automating business conversations, secured **$140 million** in Series B funding led by Summit Partners.

**Spotting Flaws**: Endor Labs, which develops tools to identify vulnerabilities in AI-generated code, raised **$93 million** in Series B funding.

**Sovereign AI**: Formerly Xayn, Berlin-based Noxtua raised **$92.2 million** for its sovereign AI focused on legal applications.

**Shear Money**: Fintech API startup Alpaca raised **$52 million** in Series C to expand internationally.

**Virtual CISO**: Cynomi, providing AI-powered cybersecurity for SMBs, secured **$37 million** in Series B funding.

**Debt Financing**: Froda, a Swedish fintech startup, raised **$22.7 million** in Series B for its debt financing platform.

**Cheat Code**: Columbia student Chungin “Roy” Lee raised **$5.3 million** for Cluely, an AI tool designed for interview assistance.

**Copy-Paste**: Fluent Ventures is distributing **$40 million** to founders replicating successful business models in emerging markets.

## Last but Not Least

![Techstars accelerator](https://techcrunch.com/wp-content/uploads/2021/02/Techstars-Alabama-EnergyTech-Accelerator-Opening-Day-32.jpg?w=680)
*Image Credits: Techstars*

In case you missed it, Techstars has updated its standard deal to now invest **$220,000** into startups entering its three-month program, reflecting a **$100,000 increase** to align more closely with Y Combinator’s structure.

Welcome to Startups Weekly — your weekly recap of everything you can’t miss from the world of startups. Want it in your inbox every Friday? Sign up here.

Unlocking Startup Success: Tech IPOs and Game-Changing Deals You Need to Know About

### The Magic Behind Reducto

**Reducto**, an innovative startup founded in 2023, has recently raised **$24.5 million in Series A funding**, led by **Benchmark**. This brings their total funding to nearly **$33 million**. The startup specializes in **document ingestion**, transforming large and complex documents into accurate, usable data.

### Why Reducto?

The founders, **Adit Abraham** and **Raunak Chowdhuri**, drew inspiration from **Arthur C. Clarke’s** third law of technology, aiming to create **"magical tools for developers"**. The name Reducto, which is reminiscent of a spell from **Harry Potter**, reflects their mission to break down complex documents into manageable pieces. 

**Abraham** emphasizes that **accuracy** is the core reason clients choose Reducto, utilizing a **multi-pass approach** to ensure error detection alongside data extraction. Their client roster includes notable companies like **Airtable**, **Scale**, and a **Fortune 10** company.

### Market Demand

The demand for accurate document processing is growing, particularly in sectors such as **finance**, **healthcare**, and **legal**. According to **Liz Wessel**, a partner at **First Round**, these industries consistently face challenges in converting complex documents for **LLMs (Large Language Models)**.

**Benchmark's** Chetan Puttagunta highlights that many **Fortune 500 companies** still rely heavily on paper documentation, which must be accurately processed before any AI-driven solutions can be implemented.

### The Technology Behind Reducto

Reducto utilizes advanced **computer vision** techniques to interpret handwriting, checkboxes, and subtle markings, allowing their models to understand documents in a human-like manner. This capability is paving the way for a future with more intelligent systems capable of handling essential processes across various domains.

### Client Testimonials

**Ignacio Andreu**, senior manager of engineering at **Vanta**, speaks highly of Reducto's product, stating that while alternatives like **Gemini models** may be cheaper, they don’t match Reducto’s level of accuracy.

In a world where technology is rapidly evolving, Reducto stands out as a beacon of innovation, bringing a touch of **everyday magic** to document processing.

---

**Author**: Allie Garfinkle  
**Follow on X**: [@agarfinks](https://x.com/agarfinks)  
**Email**: [alexandra.garfinkle@fortune.com](mailto:alexandra.garfinkle@fortune.com)  
**Subscribe to Term Sheet**: [here](https://fortune.com/newsletters/term-sheet)

Reducto has raised a $24.5 million Series A, led by Benchmark, Fortune can exclusively report.

Reducto's $24.5 Million Series A: Transforming Document Parsing with AI Magic

**Bill Gates vs. Entrepreneurship**  
Tech billionaire **Bill Gates** famously dropped out of **Harvard** to launch **Microsoft**, but his youngest daughter, **Phoebe Gates**, reveals that he is not supportive of her plans to do the same. In a recent episode of her podcast, **"The Burnouts,"** Phoebe shared her experience and her father's concerns about her desire to leave college to start her own business.  

![Bill Gates and his daughter Phoebe Gates. Photo courtesy of Phoebe's Instagram](https://vcdn1-english.vnecdn.net/2025/04/25/286469119-586060446159529-5141-6917-5710-1745574702.jpg?w=680&h=0&q=100&dpr=2&fit=crop&s=siq8zLQhwmjWdAm51Ls5BA)  

**Cautious Parents**  
Phoebe explained that her parents were **"really cautious"** when she expressed her desire to drop out. They emphasized the importance of finishing her degree, despite Bill's own decision to leave college to pursue his ambitions. Phoebe humorously noted, **"Which is so funny because my dad literally did that, and that's, like, the reason I'm able to go to Stanford or have my tuition paid."**  

**Navigating Insecurities**  
As she began her journey at **Stanford University**, Phoebe faced insecurities stemming from her family's legacy. She admitted to feeling pressure and grappling with the label of a **"nepo baby."**  

**Academic Accomplishments**  
Graduating early with a degree in **human biology**, she expressed a desire to complete her education not just for herself but also to support her mother, **Melinda**, during the commencement ceremony.  

**Family Dynamics**  
Phoebe is the youngest of three children from Bill and Melinda Gates, who divorced in 2021 after 27 years of marriage. Interestingly, Bill revealed that each of his children will inherit **less than 1%** of his fortune, which is estimated to be over **$100 billion**. Even at this rate, each child stands to receive over **$1 billion**.  

**Key Takeaway**: The journey of **Phoebe Gates** highlights the complexities of pursuing entrepreneurship while navigating family expectations and educational commitments.

Tech billionaire Bill Gates dropped out of Harvard to launch Microsoft, but daughter Phoebe Gates says he opposed her plan to follow his path by quitting college to launch a startup. - VnExpress International

Why Bill Gates Discourages His Daughter from Dropping Out for Entrepreneurship

**The Emergence of Fintech in Mexico**  
Gerry Giacomán Colyer, with experience in start-ups and consultancy, identified a pressing issue: **controlling company spending** was a significant challenge. Along with his partner, Diego Iván García, they noticed that companies struggled with paperwork and outdated IT systems, especially across **Latin America’s borders**.  
  
**Seizing Opportunity**  
Recognizing a broader need beyond just high-growth start-ups, Giacomán Colyer states, “With the proper technology, we can achieve agility without sacrificing control.” The fintech landscape in Latin America is rapidly evolving, with **Brazil leading the way** in regulatory success, inspiring other nations like **Mexico, Colombia, and Argentina**.  
  
**Clara's Growth Journey**  
Their venture, **Clara**, which provides corporate credit cards and transaction monitoring software, experienced remarkable growth. From just 26 employees and $102,000 in revenue in its first year, Clara surged to **$28.3 million in revenue** and 340 employees by 2023, ranking as the second fastest-growing company in the Americas. Clara also became the **ninth Mexican unicorn**, joining other notable companies like Plata and Stori.  
  
![Paying with a Clara card](https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F1aa0bf84-e2e6-4d26-bc57-b4affe4f63b8.jpg?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1)  
*Paying with a Clara card © Clara*  
  
**Regulatory Hurdles**  
Despite the promising growth, the **regulatory environment** remains a challenge. A law from 2018 aimed at supporting fintech has not adapted to the rapidly changing landscape, leaving regulators struggling to keep pace. Alvaro Vértiz from DGA Group notes, “They’re trying to manage a car that is at full speed.”  
  
**Financial Inclusion Issues**  
Many Mexicans still lack bank accounts, with over one-third of the population unbanked. Historical distrust towards banks, coupled with a significant informal economy, complicates the situation. Founders from **Plata** aim to enhance financial inclusion, believing in the potential of fintechs to shift the reliance on cash to digital solutions.  
  
**The Call for Legislative Updates**  
As the fintech sector evolves, there's a strong push for Mexico to update its 2018 legislation to foster a more flexible environment. Giacomán Colyer emphasizes the need for ongoing adaptation in the market, stating, “The evolution is happening. It’s a question of how much faster can it happen?”

The much-hyped sector has produced a stream of $1bn companies but regulation has failed to keep up with growth

Benchmark Backs Chinese AI Startup Behind Viral Manus Agent

Summary:

Benchmark's Strategic Investment

The Valuation

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Other Latest News

Elon Musk's XAI Holdings Seeks to Raise a Groundbreaking $20 Billion in Funding

Introducing Slate Auto's $20K Electric Truck: A Game Changer for Affordability

Founders Fest: A New Celebration of Innovation in Baton Rouge!

Unlocking Startup Success: Tech IPOs and Game-Changing Deals You Need to Know About

Reducto's $24.5 Million Series A: Transforming Document Parsing with AI Magic

Why Bill Gates Discourages His Daughter from Dropping Out for Entrepreneurship

Unveiling Mexico's Fintech Revolution: The Rise of Unicorns and Regulatory Challenges

Other Latest News

Elon Musk's XAI Holdings Seeks to Raise a Groundbreaking $20 Billion in Funding

Introducing Slate Auto's $20K Electric Truck: A Game Changer for Affordability

Founders Fest: A New Celebration of Innovation in Baton Rouge!

Unlocking Startup Success: Tech IPOs and Game-Changing Deals You Need to Know About

Reducto's $24.5 Million Series A: Transforming Document Parsing with AI Magic

Why Bill Gates Discourages His Daughter from Dropping Out for Entrepreneurship

Unveiling Mexico's Fintech Revolution: The Rise of Unicorns and Regulatory Challenges