Summary:
Deals can still thrive in uncertain times, despite price considerations becoming significant.
Anysphere's Cursor rumored acquisition by OpenAI is off the table as competition heats up.
Datadog acquires Metaplane, an AI startup, while Ather Energy downsizes its IPO due to market conditions.
Supabase raises $200 million, doubling its valuation in seven months amid the vibe coding trend.
Fluent Ventures distributes $40 million to replicate successful business models in emerging markets.
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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 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
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
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.
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