Summary:
Figma filed for an IPO amid a challenging market.
U.K. founders are frustrated with funding disparities compared to the U.S.
Smashing app shut down due to poor growth.
Marshmallow raised $90 million to support underserved customers.
Founders Fund closed a $4.6 billion fund, signaling bullish market trends.
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This week delivered a mix of signals from the startup ecosystem. While we saw a fresh IPO filing, the overall outlook for exits remains bleak. Founders are expressing frustration over capital availability, even as some venture capitalists (VCs) manage to create liquidity and raise funds for more optimistic times.
Most Interesting Startup Stories from the Week
Fearless or not: Design software company Figma has filed its confidential paperwork for an IPO, defying the fears that halted IPO plans for both Klarna and StubHub this month due to a stock market crash.
Frustrated: Founders in the U.K. are increasingly frustrated by the widening funding gap compared to their Silicon Valley counterparts. Last year, British startups raised only £16.2 billion (approx. $21.5 billion), while U.S. startups secured about $73.8 billion.
Smashed: The AI-powered reading curation app Smashing, launched by Goodreads' founder, has shut down due to disappointing growth metrics.
Suspended: BluSmart, an Indian electric vehicle ride-hailing service, has seemingly suspended operations following an investigation into its co-founders.
Back: After a month away, Ryan Breslow resumed his role as Bolt’s CEO and unveiled a new “super app” aimed at redefining the fintech landscape.
Investigating: Rippling is facing challenges in its lawsuit against Deel's CEO, who is now in the UAE, complicating their efforts.
Tailwinds: OpenAI is reportedly in talks to acquire Windsurf for $3 billion, indicating continued interest in AI advancements.
Most Interesting VC and Funding News This Week
This week saw promising funding news, suggesting a potential shift towards better days with increased valuations and larger funds.
Growing: Marshmallow, a British insurance startup, raised $90 million at a valuation exceeding $2 billion, focusing on underserved customers and boasting a profitable annual revenue run rate of $500 million.
Hammered win: Hammerspace, which aids companies like Meta in managing unstructured data, raised $100 million at a valuation over $500 million.
New chapter: Chapter, a Medicare advisory startup, secured $75 million at a $1.5 billion valuation.
Phantom limbs: Phantom Neuro raised $19 million to develop a device helping amputees control prosthetic limbs.
Resilient: Conifer, a startup focusing on electric hub motors, secured a $20 million seed round.
Sunny days: Arnergy, a clean tech startup, raised an additional $15 million to expand solar access in Nigeria.
Bullish: Peter Thiel’s Founders Fund closed their third growth fund at $4.6 billion, indicating a potential shift from bearish to bullish market sentiments.
Last but Not Least
With IPOs scarce, VCs are finding ways to maintain liquidity. In the latest episode of StrictlyVC Download, Industry Ventures CEO Hans Swildens discussed how firms are navigating these challenges.
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