Summary:
Mercury raised $300 million, doubling its valuation to $3.5 billion.
Vertical farming company Plenty filed for bankruptcy after nearly $1 billion in funding.
Cerebras Systems IPO is delayed again due to ongoing security review.
Nvidia is reportedly nearing a deal to acquire Lepton AI.
Emergence Capital closed a $1 billion fund focused on B2B companies and AI.
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.
This week reminded us that creative accounting doesn’t only happen in Hollywood. Some hopes were dashed, but startups are delivering on all sorts of promises, from nuclear reactors to small EVs.
Most Interesting Startup Stories from the Week
Image Credits: Courtesy of Hasan Sukkar
The startup news this week was a mixed bag, with one public exit finalized and another delayed alongside a flurry of other developments, both promising and disappointing.
Churn concerns: TechCrunch learned that several companies with logos on 11x’s website were not actual customers of the a16z- and Benchmark-backed startup. Sources also said 11x used creative ways to calculate annual recurring revenue.
Further delays: Cerebras Systems saw its IPO delayed again, with a national security review dragging on.
Nuclear: Terrestrial Energy, a U.S. nuclear startup developing small modular reactors, went public via SPAC, expecting to net $280 million.
Not enough: Vertical farming company Plenty filed for bankruptcy after raising nearly $1 billion in funding.
Layoffs: Block, co-founded by Jack Dorsey, laid off 931 people, as per a leaked email.
Rumors: Nvidia is reportedly nearing a deal to acquire Lepton AI, while FuriosaAI turned down an $800 million acquisition offer from Meta.
Most Interesting VC and Funding News This Week
Image Credits: Mercury / Left to right: Max Tagher (co-founder and CTO), Jason Zhang (co-founder and COO), and Immad Akhund (co-founder and CEO)
From pre-seed to a Series E, here are some rounds that caught our attention this week.
Hot thermometer: Digital banking startup Mercury raised $300 million in funding, more than doubling its valuation to $3.5 billion post-money.
Valuation bump: Island, an enterprise browser company, secured $250 million, valuing it at $4.85 billion.
Also: Rivian spun out a new micromobility startup called Also with $105 million in funding.
Automated: Berlin-based workflow automation startup n8n raised $60 million, close to a valuation of $270 million.
Ramp for LatAm: Mexico City-based Mendel raised $35 million and anticipates profitability by late 2025.
Rugs to riches: Arcade, a generative AI marketplace for jewelry, announced $25 million in Series A funding and its expansion into home goods.
No free labor: Former Outreach CEO Manny Medina launched Paid, raising $11 million to ensure AI agents get paid.
More AI: Emergence Capital closed a $1 billion fund to back B2B companies with a focus on AI.
Blue checks: French VC firm Daphni announced the first closing of its fund, securing $215 million out of a $270 million target.
Beyond voice: Amazon’s Alexa Fund expanded its scope, planning to invest more into AI solutions.
Last but not least
A new report showcased the world’s 20 hottest open source startups. More than half have AI at their core. Find the full listing and more details here.
Comments