**Kyte**, a car rental startup based in **San Francisco**, has recently made headlines with the **layoff of half** its workforce. This dramatic move raises questions about the future of the company and the challenges faced by startups in a competitive market. As the demand for car rentals fluctuates, startups like Kyte must navigate through economic uncertainties and shifting consumer preferences. The layoffs reflect the broader trends in the **startup ecosystem**, where many companies are re-evaluating their operational strategies to survive and thrive. This situation serves as a cautionary tale for entrepreneurs looking to enter the market. Understanding the dynamics of the industry is crucial for success. Stay tuned for more updates on Kyte and the evolving landscape of car rentals.

Kyte: The Shocking Layoffs at S.F.'s Car Rental Startup You Need to Know About!

### Greentown Labs Secures Major Funding

Greentown Labs, a **Somerville-based clean-tech incubator**, has successfully secured **over $4 million** in funding, marking its first new round since becoming a nonprofit organization. This crucial financial support is aimed at propelling Greentown into its next growth phase, extending beyond its existing hubs in **Somerville** and **Houston**.

The funding comes from a diverse array of contributors, including:
- **MassDevelopment**: Over **$1 million** in grant funds.
- **City of Somerville**: A **$500,000** loan.
- **Rice University**: A **$500,000** loan plus a grant exceeding **$1 million**.
- A group of Texas energy sector investors led by **Bobby Tudor** and **David Baldwin**, contributing another **$1 million** grant.

### A Tumultuous Journey

This funding round caps a **challenging two years** for Greentown Labs, which positions itself as the **largest climate-tech incubator in North America**. The organization is set to appoint its **fifth chief executive** since the departure of **Emily Reichert** in late 2022. In early 2023, Greentown transitioned to **501c3 status** to explore new revenue streams, including **philanthropic funding** to support its **$15 million** annual budget. Despite facing scrutiny from climate activists for receiving funds from **Saudi Aramco**, Greentown has continued to attract support from various oil companies.

### Current Operations

Currently, Greentown hosts **140 clean-tech startups** in Boston and **75 in Houston**. While these startups pay rent, approximately **two-thirds** of Greentown's budget is funded by corporate partners, known as **“terawatt partners”**, who benefit from close access to innovative entrepreneurs.

Interim CEO **Kevin Dutt** emphasized that the new funds are intended to help Greentown reach climate-tech entrepreneurs beyond its physical locations, aiming to expand its impact significantly. He acknowledged the organization’s **high success rate** and the strong interest in growth beyond their traditional bases.

### Boardroom Shakeup

The funding has also led to a **shakeup in the boardroom**, with new members joining from both Boston and Houston. Notable returning members include co-founder **Jason Hanna** and **John Hitt**, while **Tudor** will chair the board. New board members with Boston connections include:
- **Bill Aulet** (MIT entrepreneurship professor)
- **Georgina Campbell Flatter** (executive director of TomorrowNow)
- **Juan Carlos Morales** (founder of Surfside Capital Advisors)
- **Pam Reeve** (former Lightbridge CEO)

### Looking Ahead

Greentown Labs has evolved significantly since **Reichert** joined as its first employee over a decade ago. Dutt, who plans to pass the leadership to a new CEO in January, expressed optimism that this recapitalization will foster further growth, stating, **“This is really about a reaffirmation of the strength and success of the organization.”**

For more insights, connect with **Jon Chesto** at [jon.chesto@globe.com](mailto:jon.chesto@globe.com) or follow him on [Twitter](https://www.twitter.com/jonchesto).

The Somerville-based clean-tech incubator has landed some much-needed financing.

Greentown Labs Secures $4 Million Funding Boost for Climate Tech Expansion

## **Plume's Innovative Blockchain**  
Plume’s blockchain is designed to **transform investments and trading** in real-world assets by offering a seamless platform for users. As traditional financial institutions explore ways to integrate **cryptocurrencies**, the interest in **tokenization** is rapidly growing, creating digital representations of tangible assets.

## **Recent Funding Success**  
Recently, Plume closed a **$20 million investment round** led by prominent firms including **Brevan Howard Digital**, **Haun Ventures**, **Lightspeed Faction**, and **Galaxy Ventures**. This brings the total funding to **$30 million**.  
The company’s co-founder and CEO **Chris Yin** stated that their goal is to build the first **real-world asset finance ecosystem**, or **RWAfi**.

## **Blockchain Features**  
Yin emphasizes that Plume will provide infrastructure for developers to offer **RWA financing**. Unlike existing blockchains like Ethereum, Plume focuses specifically on **real-world asset tokenization**, aiming to attract a community of **crypto-native users** before branching into traditional finance.  
Users will interact with Plume’s blockchain in three key ways:  
1. **Earn returns** on tokenized assets such as T-bills.  
2. Trade real-world collectibles by verifying **authenticity**.  
3. Bet on events or asset prices using real-world data.

## **Growing Ecosystem**  
With **180 projects** already in development on Plume’s infrastructure, including the decentralized credit platform **Credbull**, the company is poised for growth. Credbull is set to roll out a **fixed yield credit facility** on the Plume blockchain.  
While developers can start building now, users must wait until early next year for access.

## **Future Plans**  
Plume aims to use the latest funding to broaden its reach from **crypto-native users** to **traditional financial firms** and asset managers, facilitating easier customization for developers. Yin asserts that this ecosystem allows for extensive connectivity, enabling users to **borrow, lend, and interact globally** in ways that were previously unattainable.

Plume’s blockchain lets users invest and trade in tokenized real-world assets.

Plume Secures $20 Million to Revolutionize Real-World Asset Tokenization with Blockchain

**Sam Altman**, known for his leadership in tech innovation, is making waves in the energy sector. His nuclear startup has recently **signed a significant deal** for an **AI-powered energy supply**. This partnership highlights the growing trend of collaboration between **energy developers** and the **technology industry**, particularly amid the increasing demand for sustainable energy solutions. The implications of this contract could reshape how energy is produced and consumed, paving the way for a new era of **clean energy technology**.

Contract is the latest between energy developers and technology industry amid soaring demand

Nuclear Startup's Game-Changing AI Power Supply Deal Led by Sam Altman

### The Rise of SpaceX

Last week, **Elon Musk’s SpaceX** made headlines as it skyrocketed in value, reaching a new high of **$350 billion**. With **Donald Trump** preparing to return to the White House, Musk’s proximity to the incoming president has kept his companies in the spotlight, driving significant growth for **Tesla stock** (TSLA).

And while SpaceX is still a privately held company, its value has surged **67%** since June 2024, dominating the space exploration field.

### A New Opportunity for Retail Investors

Until recently, retail investors haven’t had the chance to gain exposure to private companies like SpaceX and **OpenAI**, the maker of ChatGPT, which remains one of the trendiest names in tech. However, a fintech company is now offering individuals the opportunity to invest in these popular tech names before they go public.

### Retail Investor Interest

Recent data shows that retail investors are eager to invest in private companies. A survey by **SoFi Technologies** (SOFI) of **5,000 retail investors** revealed that over **87%** expressed interest in investing in privately held companies. When asked which private companies they most want to invest in, respondents ranked **SpaceX**, **OpenAI**, and **Epic Games** as the top three.

### SoFi's New Investment Opportunities

On December 4, 2024, SoFi announced that through its relationship with investment firm **Templum**, it is offering accredited investors access to **The Cosmos Fund**, a special purpose vehicle that provides exposure to SpaceX. They also expanded access to the **Pomona Investment Fund** and **StepStone Private Markets Fund**, which offer access to high-profile alternative assets, although not specifically to SpaceX.

Investors can access these funds via **Templum One**, Templum’s global ecosystem that connects private and alternative market issuers with investors. However, to invest in these funds, including the Cosmos Fund, individuals must meet specific criteria set by SoFi.

### Understanding Private Investments

A spokesperson from Templum provided insight into private market investing, stating, “**Private investments are usually illiquid**, meaning they can’t be easily sold or traded. Investors often hold these assets for years, targeting higher returns in exchange for reduced liquidity.”

Retail investor access to popular private companies is increasing.

Investing in the Stars: How a Fintech Startup is Opening Doors to SpaceX and More

### Space One's Setback in Satellite Launch

Tokyo-based startup **Space One** faced another setback in its quest to become the first private Japanese company to successfully place a satellite into orbit, as their **Kairos No. 2 rocket** launch ended in failure on Wednesday. This launch was critical for Japan's aspirations in space development.

The **18-meter**, **23-ton solid-fuel rocket** was launched from a newly established space facility in **Kushimoto, Wakayama Prefecture** at around 11 a.m. Unfortunately, a malfunction occurred during ascent, leading to the launch's failure. Space One is currently investigating the details surrounding this incident.

### Previous Delays and Failures

This failure follows a series of challenges, including two postponements due to strong winds. The initial launch was scheduled for Saturday, but weather conditions forced delays. The rocket was designed to carry five small satellites, including payloads from **Taiwan's space agency**, a **Kyoto-based startup**, and even **high school students** from **Hiroo Gakuen in Tokyo**.

![The rocket trail of Space One's Kairos No. 2 rocket](https://www.japantimes.co.jp/japantimes/uploads/images/2024/12/18/440962.jpg)

### Features of the Kairos Rocket

A standout feature of the **Kairos rocket** is its **"autonomous flight safety system"**, which tracks the flight path, speed, and rocket condition. If any abnormalities are detected, the system can interrupt the flight and initiate a self-destruction mechanism to prevent deviations from the planned range. This marks it as the first Japanese rocket to incorporate such a feature.

Despite being smaller than Japan's next-generation flagship **Epsilon S rocket**, the Kairos is designed for **lower costs** and **quicker launch preparations**.

### Previous Launch Failure

In March, the **Kairos No. 1 rocket** also failed, exploding just five seconds after liftoff due to issues with its first stage, which led to the activation of the autonomous safety system. The startup had aimed to conduct its first launch in April 2021 but faced multiple delays due to supply chain issues exacerbated by the **COVID-19 pandemic** and **Russia's invasion of Ukraine**.

Space One was again bidding to become the first private Japanese company to place a satellite into orbit.

Space One's Ambitious Satellite Launch Attempt Fails Again: What's Next for Japan's Private Space Sector?

### Basis Raises $34 Million for AI-Powered Accounting Automation

Artificial intelligence **startup Basis** has successfully raised **$34 million** in a **Series A funding round** for its innovative AI-driven accounting automation solution. This funding round was led by **Khosla Ventures**, with notable participation from **NFDG**, the AI-focused fund managed by former GitHub CEO **Nat Friedman**, and other prestigious investors, including **OpenAI board members** **Larry Summers** and **Adam D'Angelo**, alongside **Google's chief scientist** **Jeff Dean**.

### What Does Basis Offer?

Based in **New York**, Basis is at the forefront of a new wave of **AI startups** focused on creating **autonomous agents**—systems that utilize AI to perform tasks independently. According to industry experts, such systems are expected to dominate the AI landscape in the upcoming year, as recent advancements allow these models to engage in **long-term planning**.

Basis specifically targets **accounting firms** with its product, which can handle various workflows including:
- **Entering transactions**
- **Double-checking data accuracy**

The platform seamlessly integrates with popular ledger systems like **Intuit's QuickBooks** and **Xero**. As a testament to its effectiveness, large accounting firms such as **Wiss**, which employs 450 accountants, have reported up to **30% time savings** when using Basis.

### Addressing the Accountant Shortage

The product functions like a **junior accountant**, enabling staff accountants to focus on **reviewing** the AI agent's outputs rather than performing repetitive tasks manually. This innovation is particularly crucial in light of the current **critical shortage of accountants**, exacerbated by the retirement of baby boomers and a declining interest among younger generations in pursuing accounting careers, as noted by **Khosla Ventures** managing director **Keith Rabois**.

In the U.S., the accounting sector employs over **3 million** professionals, but the number of candidates taking the **CPA exam** has dropped by **33%** from 2016 to 2021. Historically, firms have mitigated this shortage by outsourcing to locations like **India**.

### The Impact of AI on Accounting

Accounting is particularly susceptible to **AI disruption**, with a recent **2023 OpenAI paper** suggesting that automation driven by large language models could potentially affect **100% of accountants' and auditors' tasks**. This illustrates the urgency for firms to adapt to the evolving landscape of the accounting profession.

*Reporting by Anna Tong in San Francisco; Editing by Bill Berkrot*

Artificial intelligence startup Basis has raised $34 million in a Series A funding round for its AI-powered accounting automation product, the company said on Tuesday.  The round was led by Khosla Ventures.  Other investors included NFDG, the AI-focused fund run by former GitHub CEO Nat Friedman and former Apple executive Daniel Gross, OpenAI board members Larry Summers and Adam D'Angelo, and Google's chief scientist Jeff Dean.

Revolutionizing Accounting: How Basis Secured $34 Million for AI Automation

### Grammarly Acquires Coda

Grammarly has announced its strategic acquisition of **Coda**, a productivity startup, marking a significant shift in the AI productivity landscape. Coda’s co-founder and CEO, **Shishir Mehrotra**, will step in as the new CEO of Grammarly, succeeding **Rahul Roy-Chowdhury**, who will continue as an adviser.

### Enhancing AI Capabilities

The acquisition aims to transform Grammarly’s AI assistant into an **“AI productivity platform.”** With Coda’s innovative AI tools, Grammarly plans to introduce new features like **generative AI chat** and a comprehensive productivity suite, enabling users to work more efficiently.

Mehrotra, a seasoned tech veteran with a history as YouTube's chief product officer and chief technology officer, envisions a smarter assistant that integrates seamlessly with various systems, enhancing user experience across platforms.

### Future Developments

Coda’s flagship product, **Coda Docs**, will also be integrated with the Grammarly Assistant, allowing for an enriched user interaction. Mehrotra expressed ambitions to merge the best features of both companies, creating a platform that combines company knowledge, generative AI chat, and numerous productivity tools to redefine how we work in the AI age.

### Company Background

Founded in **2009**, Grammarly boasts **40 million active users** and is currently valued at **$13 billion**. Coda, valued at **$1.4 billion**, previously raised funds through a successful **Series D round**. This acquisition positions Grammarly to enhance its competitive edge against other AI-driven writing and productivity tools in the market.

Grammarly is acquiring productivity startup Coda, the company announced on Tuesday.

Kyte: The Shocking Layoffs at S.F.'s Car Rental Startup You Need to Know About!

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