Summary:
Google is in advanced talks to buy cloud security startup Wiz for $23 billion.
SoftBank has acquired AI chipmaker Graphcore, aiming to boost its AI efforts.
Payroll provider Deel has acquired Hofy, a company that delivers and manages equipment for remote workers.
HeadSpin, a once fast-growing startup, was bought by PartnerOne for $28 million following a scandal involving its founder's fraud.
Making Space, a talent platform for disabled workers, raised $2 million despite facing skepticism from some investors.
Exa, an AI-powered internet search platform, secured $17 million in funding.
Coast, a financial services platform for transportation, has raised $40 million in back-to-back funding rounds.
Tribe AI raised $3.2 million to help companies hire AI contractors.
a16z co-founders Marc Andreessen and Ben Horowitz have switched to the Republican party due to concerns about the Biden administration's policies.
Tech Titans are on a Buying Spree: A Look at Recent M&A Activity in the Startup World
The world of startups is buzzing with activity as big tech players make major acquisitions. This week, Google is in advanced talks to purchase cloud security startup Wiz for a whopping $23 billion. Wiz, a mere four-year-old company, boasts an impressive $500 million in annual recurring revenue (ARR). While Google's offer surpasses Wiz's previous valuation of $12 billion, the startup may still choose to pursue an IPO instead.
Meanwhile, SoftBank has acquired Graphcore, a UK-based AI chipmaker, for an undisclosed amount. While Graphcore's processors haven't quite reached the popularity of Nvidia's, SoftBank is betting on the company's potential to contribute to its AI endeavors.
Payroll provider Deel is also on an M&A roll, adding Hofy to its portfolio. Hofy specializes in delivering and managing equipment for remote workers, and the deal reportedly cost Deel over $100 million. This comes after Deel's acquisition of two other companies earlier this year.
HeadSpin, a startup that once boasted rapid growth and a $1.1 billion valuation, has been acquired by private equity firm PartnerOne for a mere $28 million. This acquisition follows a scandal involving the founder's guilty plea for overstating revenue, highlighting the stark reality of rapid growth and the potential for downfall.
Beyond Acquisitions: Funding Highlights
Making Space, a talent acquisition platform for disabled workers, has secured $2 million in pre-seed funding from Beta Boom. The startup's founder, disability activist Keely Cat-Wells, faced challenges securing funding, with one investor even suggesting she find a male, non-disabled co-founder. Her success in raising funds despite these hurdles is inspiring.
Exa, which specializes in AI-powered internet searching, has raised $17 million from Lightspeed, Nvidia, and YC. AI platforms need to search the internet at scale, and Exa provides the tools to do just that.
Coast, a financial services platform for the transportation industry, has raised $40 million in Series B funding from ICONIQ Growth just four months after securing a $25 million venture round. This back-to-back funding demonstrates the continued interest in non-AI startups, particularly in innovative sectors like transportation.
Tribe AI has secured $3.2 million in funding to help companies hire contractors for AI implementation. This comes after six years of bootstrapping, highlighting the growing demand for AI talent and the need for efficient solutions to find skilled professionals.
VC and Fund News
a16z, a prominent venture capital firm, is making headlines for its political stance. The firm's co-founders, Marc Andreessen and Ben Horowitz, have publicly announced their switch to the Republican party due to concerns about the Biden administration's potential regulation of AI, lack of clarity on crypto, and proposed tax on unrealized capital gains. They believe that Trump will be more favorable to startups.
David Sacks, founder of Craft Ventures and co-host of the All-In podcast, gave a speech at the Republican National Convention. While Sacks is a well-known figure in Silicon Valley, his name recognition among average Republicans remains low.
Menlo Ventures, a leading VC firm, has teamed up with Anthropic to launch a $100 million fund for backing early-stage AI startups. Menlo Ventures was a major investor in Anthropic's Series D funding round.
With AI fundraising on the rise, the number of AI companies raising $100 million or more has already reached 28 this year. This trend is expected to continue in the coming months.
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