Space for new entrants, biotech going mainstream, and more

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The most interesting startup stories of the week

Even crowded categories can see newcomers climbing the ranks. That includes social media: A new app called NoPlace shot to No. 1 on the App Store when it launched in invite-only mode.

Besides confirming user interest for new forms of social media, it also shows that it is still possible to go viral in 2024, just as French app Ten Ten did earlier this year. Both apps also show that there is value in revisiting old tech ideas – MySpace for NoSpace and walkie-talkies for Ten Ten.

It’s also a reminder that consumer tech can find VC backers. It’s an area CEO Tiffany Zhong knows well; before starting this company and raising money from investors including Alexis Ohanian’s 776 and Forerunner Ventures, she helped Binary Capital source early-stage consumer deals before creating early-stage consumer fund Pineapple Capital.

• Look up, Hebbia, a startup that uses generative AI to search and answer questions in large documents, has raised Series B funding of about $100 million led by Andreesen Horowitz, sources told TechCrunch.
• Former planetsRobinhood acquired AI-powered research platform Pluto Capital to add new tools and features like real-time portfolio optimization to its investing app.
• We don’t need edtech?Unacademy cuts 250 more jobs as Indian edtech struggles in a post-Covid world.
• New Experts: Amazon hired away Adapt’s co-founders and parts of its team as it licensed its technology. But the AI ​​startup will still exist, and will refocus on “solutions that enable agentic AI.”
• Oasis in the crypto drought?: With a valuation of $2.1 billion in a 2022 funding round, India’s leading cryptocurrency exchange CoinDCX expanded internationally through the acquisition of BitOasis, a digital asset platform in the Middle East and North Africa.

This week’s most interesting fundraising campaigns

One area of ​​tech that is particularly promising is startups fighting cancer – and getting venture funding to do so. Biotech startup Granja Bio is one of these and has raised $7 million in seed funding from Felis, Refactor and Y Combinator to advance the delivery of cancer treatments.

Granja Bio is a Winter 2024 Y Combinator graduate, and YC wants to support more startups like it. YC’s request for proposals (RFS) for startups shared in February included “a way to eliminate cancer.” The main focus of that RFS was on startups that can reduce the cost of MRIs — not a perfect answer as MRIs are known to give false positive results. So it’s notable that the accelerator is actually tackling the fight against cancer from multiple angles, including biotech.

Another interesting thing: Felicis is a typical VC firm, but invests 10% to 15% of its capital in biology-focused startups. This is also a sign that biotech is going mainstream and another reason to keep an eye on new startups emerging in this field.

• New CentaurHR technology is in demand everywhere, including Japan, where SmartHR raised $140 million in a Series E round of funding after its annual recurring revenue (ARR) reached $100 million.
• material worldFrench deep tech startup Altrov raised nearly $4 million to leverage AI models and lab automation to create new materials.
• Cart PathRobotics startup Kartken raised $10 million in a recent funding round led by 468 Capital. It also found that demand for its small autonomous robots goes beyond sidewalk deliveries and is exploring indoor use cases.
• happy DaysAPEDE has raised 10 million euros in a Series A funding round that will help it double its position in Europe, where regulatory favourable conditions are boosting its ESG (environmental, social and governance) reporting platform.

The most interesting fund news this week

• Climate changeSpanish VC firm Seaya Ventures will invest 300 million euros in climate tech with a dedicated fund Seaya Andromeda.
• Swiss made, Self-branded “near-growth” Swiss fund Forestay raised $220 million to invest in Europe and Israel, focusing on enterprise and SaaS.
• Beyond defense, J2 Ventures, a firm run primarily by U.S. military veterans, has raised a $150 million second fund that is “linked to national security” and will also invest in healthcare.
• Olympic TrailThe husband-wife duo, who are both former Olympians, are looking to raise $50 million to invest in influential consumer brands through their fund, Freedom Trail Capital.
• deep Space, Deep tech VC firm Driving Forces is shutting down after its solo general partner, Sidney Scott, concluded the environment was too challenging for small funds like his.

last but not least

The Evolve Bank data breach has caused a stir in fintech, with many startups caught up in the turmoil. Yieldstreet has confirmed that some of its customers have been affected, as has Wise. Meanwhile, Fintech Business Weekly writer Jason Mikula said he received a cease-and-desist letter from the bank, amid concerns that not all affected fintechs have yet received details about what information has been stolen in the breach.