### Higashiizu's Innovative Approach to Tourism

**Higashiizu**, a quaint town located along a picturesque peninsula southwest of Tokyo, is taking a bold step to **attract tourists** with a unique concept: **unstaffed souvenir shops**. These shops, provided by the Tokyo-based startup **Newpeace**, are designed to look like traditional vending machines adorned with **Japanese tiled roofs**.

![Higashiizu Souvenir Shop](https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fcms-image-bucket-production-ap-northeast-1-a7d2.s3.ap-northeast-1.amazonaws.com%2Fimages%2F9%2F4%2F9%2F3%2F49343949-1-eng-GB%2Fphoto_SXM2025040700014903.jpg?width=780&fit=cover&gravity=faces&dpr=2&quality=medium&source=nar-cms&format=auto)
*This unstaffed souvenir shop was set up at Hinanoyakata Park in Higashiizu, Shizuoka prefecture. The automated shop requires buyers to use their smartphones' QR code readers. (Photo by Taro Saeki)*

### How It Works

To purchase souvenirs from one of these **Dozo shops**, visitors simply use their **smartphones** to scan **QR codes** displayed on the products. This seamless integration of technology not only enhances the shopping experience but also reflects **Higashiizu's commitment** to innovation in tourism.

With its focus on **edible specialties**, Higashiizu is banking on the hope that these delightful offerings will entice tourists to visit and explore all that the town has to offer. 


SHIZUOKA, Japan -- The town office of Higashiizu, along a peninsula southwest of Tokyo well known for its hot springs, has come up with a novel approa

How a Hidden Japanese Town is Revolutionizing Souvenir Shopping with Smart Technology

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

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

### Major Funding for Manus AI
The **Chinese startup** behind **Manus AI** has successfully secured a **$75 million** funding round led by the **US venture firm Benchmark**. This significant investment has quintupled Manus AI's valuation to nearly **$500 million**. The company, known as **Butterfly Effect**, plans to use this capital to expand its services into **new markets** including the **US**, **Japan**, and the **Middle East**.

### Innovative AI Solutions
In March, Manus AI showcased a **general AI agent** capable of performing various tasks such as **screening resumes**, **creating travel itineraries**, and **analyzing stocks** based on simple commands. Notably, they claimed that their service outperformed **OpenAI's Deep Research** in several areas. This has attracted attention as numerous companies, including **ByteDance** and **Baidu**, are now developing their own competing AI platforms.

### Autonomous Technology
Manus co-founder and chief scientist **Ji Yichao** asserts that their product is **“truly autonomous.”** A viral video demonstration has generated significant interest, similar to the buzz created by **DeepSeek**, another Chinese startup that made headlines with its innovative yet affordable AI model. However, initial user feedback has been mixed, with some praising it as **groundbreaking**, while others feel it’s still **half-finished**.

### Competitive Pricing
To attract users, Manus has introduced a **subscription model** priced at **$39 per month**, with a premium option at **$199**. This pricing strategy aligns with offerings from **OpenAI’s ChatGPT Pro**, but is viewed as aggressive given that the service is still in its **testing phase**.

### Previous Investments
Before this funding round, Manus AI raised over **$10 million** from various investors, including **Tencent Holdings Ltd.** and notable venture capital firms like **ZhenFund** and **HSG**, previously known as **Sequoia China**.

The Chinese startup behind Manus AI secured a round of financing led by US venture firm Benchmark, scoring capital to explore the use of artificial intelligence agents to replace everyday tasks.

Manus AI: The $500 Million Startup Revolutionizing Everyday Tasks with AI Technology

### Liven Up Your Video Meetings with Airtime

**Evernote founder Phil Libin** is shaking up the world of video communications with his latest venture, **Airtime**. Originally launched as **mmhmm** during the pandemic in 2020, this innovative video toolkit has been redesigned to enhance your online meeting experience.

#### Introducing Airtime's New Tools

On Thursday, Airtime introduced two exciting tools:
- **Airtime Creator**: This presentation tool allows you to engage your audience by presenting slides while appearing on screen alongside them. Up to **10 people** can join you on screen, making meetings more interactive and memorable.
- **Airtime Camera**: This virtual camera helps you look polished during video calls, letting you customize your background, add logos, and even react with visuals or GIFs to stand out in meetings.

![Airtime Creator](https://techcrunch.com/wp-content/uploads/2025/04/Airtime-Creator1_Presentation.jpg?w=680)

With Airtime Creator, you can customize your presentations, focusing on your presence rather than just the slides. This tool is designed to make online meetings more engaging and professional, addressing common issues like casual attire and unappealing backgrounds.

![Airtime Camera](https://techcrunch.com/wp-content/uploads/2025/04/Airtime-Camera_Looks-Gallery_No-Logo.jpg?w=680)

#### A Fresh Brand Identity

Alongside the launch of these tools, mmhmm has officially rebranded to **Airtime**. Existing users will notice the app's name and icon change during their next update, with both new tools included at no extra charge initially.

#### Pricing and Availability

The **Airtime Camera** will be free until **August 1**, after which it will be available for a **one-time fee of $20**. The **Airtime Creator** tool comes with a **$10 monthly subscription**, complete with a free trial.

Airtime is backed by notable investors including **Sequoia Capital** and **SoftBank Vision Fund**, having previously raised **$100 million** to fuel its growth. 

Start transforming your online meetings with Airtime and experience the difference in engagement and professionalism!

Evernote founder Phil Libin is ready to liven up your video meetings. The entrepreneur's video startup, mmhmm, launched in 2020 amid the pandemic, on

Transform Your Video Meetings with Airtime: The New Era from Evernote's Founder

### Adam Neumann’s Flow Secures Major Funding

Former WeWork CEO **Adam Neumann** has successfully raised **over $100 million** for his proptech startup, **Flow**, boosting its valuation to approximately **$2.5 billion**. This significant funding round was reported by Bloomberg, citing anonymous sources familiar with the deal. Notably, existing investor **Andreessen Horowitz (a16z)** participated in this financing round.

### Future IPO Aspirations

In an interview, Neumann expressed confidence that **Flow** could potentially go public in the future, stating he was “sure” of the company’s prospects.

### Growth and Previous Funding

Flow, which specializes in **residential real estate** focused on rentals and co-living, had previously raised **$350 million from a16z** at a valuation of **$1 billion** back in 2022. This trajectory of growth has raised eyebrows, especially considering Neumann’s controversial history with WeWork, which once boasted a valuation of **$47 billion** before filing for **bankruptcy protection** in 2023. WeWork was ultimately acquired for **$450 million** by Yardi, a real estate group.

### Awaiting Comments

TechCrunch has reached out to both **Andreessen Horowitz** and **Flow** for further comments on this recent funding round.

Former WeWork CEO Adam Neumann has raised over $100 million in capital for his proptech startup, Flow, in a round that values that company at about $2.5

How a Hidden Japanese Town is Revolutionizing Souvenir Shopping with Smart Technology

Summary:

Higashiizu's Innovative Approach to Tourism

How It Works

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Other Latest News

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

Manus AI: The $500 Million Startup Revolutionizing Everyday Tasks with AI Technology

Transform Your Video Meetings with Airtime: The New Era from Evernote's Founder

Adam Neumann's Flow Surges: $100M Raised, Valuation Doubles to $2.5B! What’s Next?

Other Latest News

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

Manus AI: The $500 Million Startup Revolutionizing Everyday Tasks with AI Technology

Transform Your Video Meetings with Airtime: The New Era from Evernote's Founder

Adam Neumann's Flow Surges: $100M Raised, Valuation Doubles to $2.5B! What’s Next?