Coinbase has announced a major move in the crypto space, confirming plans to acquire derivatives exchange Deribit in a $2.9 billion deal. This marks the biggest acquisition in the history of the cryptocurrency industry.

The agreement includes $700 million in cash and 11 million Coinbase shares. With this purchase, Coinbase is aiming to expand its reach into the crypto options and derivatives market—a growing sector in digital finance.

In a statement, Coinbase described the acquisition as “foundational,” saying it would help the company build a world-class, compliant, and easy-to-use derivatives platform. “We’re thrilled to bring Deribit into the Coinbase family as we shape the future of the crypto market,” the company said.

Deribit, known for its crypto options trading services, previously secured a $40 million funding round in 2022 with backing from major investors including QCP Capital and Polybius Capital.

Crypto M&A on the Rise

Coinbase’s deal follows a string of high-value acquisitions in the crypto industry. Just last month, Ripple announced its $1.25 billion acquisition of brokerage firm Hidden Road. Meanwhile, Kraken revealed its $1.5 billion purchase of the retail trading platform NinjaTrader in March.

The crypto market has seen renewed momentum recently, partly driven by the reelection of President Donald Trump, which some believe could lead to looser regulations.

Venture capital is also flowing back into the space. In the first quarter of this year, startups in crypto and blockchain raised $3.8 billion across 220 deals—a 138% increase from the previous quarter. A significant portion of this funding came from a $2 billion investment into Binance by Abu Dhabi-based MGX, the largest single investment in a crypto company to date.

Coinbase’s acquisition of Deribit positions it to take full advantage of this renewed growth and investor interest in crypto derivatives.

Startup funding in April showed signs of a slowdown, with many UV investors stepping back. Despite the overall drop, Andreessen Horowitz and Khosla Ventures were the only firms to close more than ten deals during the month.

Andreessen Horowitz Leads as Top UV Investor

Andreessen Horowitz led the way with 13 deals — its highest monthly total since January. The Menlo Park-based UV investor participated in several major rounds, including Base Power’s $200 million Series B. The Austin startup provides backup power systems that charge batteries when electricity prices are low. Other investors in the round included Addition, Lightspeed Venture Partners, and Valor Equity.

The firm also led a significant funding round for Flow, a residential real estate company founded by WeWork’s Adam Neumann. That round exceeded $100 million and valued Flow at $2.5 billion, according to Bloomberg.

Khosla Ventures Follows with Strong Momentum

Khosla Ventures made 10 investments in April, its highest count since April 2024. The UV investor led Science’s $104 million round. Science, a biotech startup based in Alameda, is developing brain and retina implants and was co-founded by a former Neuralink team member.

Khosla also took part in Cyberhaven’s $100 million Series D, valuing the data security firm at $1 billion, and joined Mainspring Energy’s $258 million Series F. Mainspring makes power generators, a business attracting UV investors as AI drives up energy demand.

General Catalyst Sees Slower Month

General Catalyst completed 9 deals, a drop from its previous pace of 26 over February and March. Still, the UV investor led Mainspring Energy’s large Series F and co-led smaller rounds for Vivere Partners, a specialty insurance startup, and Fourier, a hydrogen energy company.

Other Notable UV Investor Activity

• BoxGroup and Index Ventures followed closely with 8 deals each.
• Ocampo Capital led or co-led 7 deals — the highest among UV investors for leadership involvement.
• Greenoaks Capital Partners led the largest round of the month, heading Safe Superintelligence’s $2 billion raise at a $32 billion valuation.
• Y Combinator remained the most active accelerator, backing 22 startups in April.

Venture capitalists are showing growing interest in startups that combine advanced AI systems with strong human collaboration. In just the first six weeks of 2025, European investors poured $548 million into companies building agentic AI solutions.

These AI agents go beyond basic automation. They analyze, plan, and act on tasks — often without human input. But while the technology is advancing fast, funding doesn’t just go to teams with great ideas. Investors are looking for proof that AI tools are delivering real business value — and that starts with well-managed collaboration between humans and AI.

Show the Value of Human-AI Collaboration

Founders need to demonstrate how AI agents are improving business operations. How much time and money are they saving? Are they strengthening customer relationships or increasing revenue? These measurable results can make or break a startup’s case for funding.

It’s not just about having a powerful algorithm — it’s about using it in the right way. Investors want to see teams who integrate AI into business workflows while ensuring people still play a central role.

Strong Data Management Is Essential

Behind every effective AI system is solid data. Without it, even the most advanced AI won’t perform well. Startups must prove that their data is clean, accurate, and well-managed. Issues like poor-quality inputs or disconnected systems can hurt AI outcomes — and investor trust.

Top companies are already investing in frameworks that support agentic AI, but they know that human oversight in data quality and system design is non-negotiable. Collaboration between technical teams, domain experts, and leadership is what makes these systems successful.

Human Oversight Adds Trust and Accountability

Despite their autonomy, AI agents still need guidance. The most successful companies are those that combine the speed of AI with human judgment. Humans are needed to validate outputs, guide decisions, and step in when systems fail.

According to a March 2025 McKinsey report, organizations are increasing their focus on AI-related risks — from data inaccuracies to cybersecurity threats. To attract funding, startups must show that they are managing these risks through clear roles and ongoing training.

Strategic collaboration between people and AI also helps ensure that automated decisions support a company’s goals. This kind of partnership not only builds safer systems — it builds investor confidence.

Invest in People to Strengthen Collaboration

Studies like the BCG AI Radar report recommend the 10-20-70 rule: spend 70% of your AI investment on people, processes, and company culture. This approach highlights how human input is key to getting real results from AI systems.

Startups that embrace this model — where collaboration drives innovation and risk management — are standing out to investors. Senior leaders must ensure that AI decisions align with business strategy and values. After all, even the most advanced technology can’t replace thoughtful human leadership.

To raise your next funding round, it’s not enough to build cutting-edge AI tools. You need to prove that your team is using them wisely — through strong human-AI collaboration, reliable data practices, and clear oversight. These are the signals investors look for in startups ready to scale.

Uber made headlines this week by announcing a $100 million investment in Chinese autonomous vehicle company WeRide. The move strengthens their partnership and aims to expand WeRide’s robotaxi services to 15 more cities over the next five years.

This isn’t their first collaboration. Late last year, Uber and WeRide launched a commercial robotaxi service in Abu Dhabi, signaling growing interest from established transport companies in the autonomous vehicles sector.

The timing is notable. Just weeks ago, Tesla CEO Elon Musk promised to start commercial robotaxi operations soon, despite ongoing questions about cost and timeline.

Drop in Venture Capital for Autonomous Vehicles

While large companies ramp up their efforts, venture capital firms are stepping back. So far this year, funding for autonomous vehicle startups has reached just $1.1 billion — a steep decline from $12.1 billion the previous year and $5.9 billion the year before that.

Interestingly, the largest funding round in this space so far hasn’t gone to a traditional self-driving car developer. Instead, drone company Shield AI secured $240 million in strategic funding, valuing the startup at $5.3 billion.

By contrast, the biggest round in 2024 went to Waymo, which raised $5.6 billion from Alphabet, pushing its valuation past $45 billion. That marked its first major funding since 2021.

Industry Shifts Toward Corporate Investment

After years of heavy spending, many venture capitalists seem to be stepping back from autonomous vehicles. Instead, public companies with deeper pockets are leading the charge. Based on the uncertain returns from earlier investments, that may be a strategic shift in the right direction.

Every day brings another hot take about how venture is broken. Online posts declare the end of venture, fintech, or entire cities like San Francisco. What used to be honest debate has turned into viral content — more focused on likes than solutions.

It’s not that critique is wrong. It’s that much of it now feels performative — more about showing off than building up.

The Shift in Venture Culture

Venture capital has always lived at the intersection of money and narrative. Pitch decks, founder stories, bold ideas — this is how the industry grows. For years, tough conversations and sharp feedback were signs of a healthy ecosystem.

But lately, the tone has changed. Instead of questioning to improve, people criticize to stand out. Online, calling something “dead” now spreads faster than thoughtful discussion. And even when critiques sound measured, there’s often a quiet message underneath: “We were smart. Others failed.”

This mindset may generate attention, but it doesn’t move venture forward.

Controversy Isn’t the Same as Insight

We’ve started to mistake drama for thought leadership. Headlines exaggerate. Social media rewards negativity. The louder the message, the more traction it gets.

But this has real consequences. These same messages end up in investor meetings, boardrooms, and founder pitches. People notice. The criticism, even when masked as commentary, creates mistrust. It lowers the bar for dialogue and raises walls where collaboration should happen.

Venture Needs Rebuilding, Not Burning

Yes, the venture world made mistakes — especially during the 2020–2021 boom. Some deals were rushed. Some bets didn’t work. But that doesn’t mean the entire model is broken.

What it means is that we need to reflect, improve, and grow. Real ecosystems evolve. Real investors learn and adapt.

The path forward isn’t more finger-pointing. It’s honest, respectful discussion. It’s highlighting what worked, fixing what didn’t, and building smarter systems.

Let’s Raise the Standard

Venture capital funds innovation. It supports bold ideas and early risks. It helps shape the technologies and companies that define the future. That kind of impact deserves better than shallow headlines and quick takedowns.

Being critical is fine — but it should lead somewhere. It should help founders, support teams, and guide the industry forward.

We don’t need to pretend everything is perfect. We just need to stop tearing things down for effect. Thoughtful doesn’t mean weak. Honest doesn’t mean harsh. And being constructive doesn’t mean we stop pushing for better.

Let’s bring back meaningful conversations in venture. Let’s value ideas, support smart risks, and raise the quality of our discourse.

Because venture matters — now more than ever.

In early 2020, I was on a 3 a.m. call with a supplier in another time zone, searching for a lost shipment of face masks. It wasn’t ideal — but it taught me a lot. That moment changed how I thought about the supply chain, and it showed how critical it is to stay ready for anything.

At Copper Compression, we don’t just ship products — we deliver recovery and pain relief to our customers. When the supply chain is unstable, it doesn’t just affect profits; it impacts the people we serve.

Here are four key lessons we’ve learned that helped us navigate supply chain volatility.

1. Communicate Early and Often

Clear, frequent communication with suppliers and partners has been essential. Whether it’s dealing with customs delays or tracking shipments, staying silent leads to confusion and missed opportunities.

We make it a habit to check in regularly, share demand forecasts, and raise issues early. This proactive approach has helped us avoid surprises and build stronger relationships — both with partners and with customers.

2. Diversify Your Supply Chain

Relying on one supplier almost cost us a major product line. A single manufacturing delay left us stuck. After that, we focused on building a more diverse supply chain.

Having multiple suppliers may take more time and resources upfront, but it has saved us from major disruptions. Diversification is no longer optional — it’s essential for business stability.

3. Rethink Inventory Strategy

We used to run on a just-in-time inventory model. It worked — until it didn’t. After several close calls and one major stockout, we changed our approach.

Now we keep a buffer of our most popular products. It may not be the leanest method, but it has helped us serve over 1 million direct customers and more than 12,000 retail stores without delays. In today’s uncertain supply chain environment, holding extra stock can protect customer trust.

4. Balance Data with Experience

We rely on data for forecasting, shipping analysis, and lead times — but we also trust our instincts. Sometimes, problems surface before they show up in reports. That’s when experience and teamwork matter.

We’ve created a culture where team members are encouraged to speak up, even if they don’t have hard numbers yet. This flexibility gives us a head start when the supply chain starts to shift.

Global startup investment has more than doubled in the last decade, now reaching about $300 billion a year. As artificial intelligence (AI) continues to grow, many are asking: Could investment double again in the next ten years?

Three major trends have fueled this rise: the spread of investment beyond the U.S., the rise of $100 million-plus “megarounds,” and a surge in funding to AI startups.

1. AI Leads the Way in Startup Investment

AI-related startups received over $100 billion in funding in 2024, making up nearly one-third of total global investment. This marks a massive increase from $57 billion in 2023. U.S.-based AI startups captured 45% of that funding, highlighting America’s continued dominance in this sector.

AI companies include those building foundational AI systems, infrastructure, and applied tools across industries. Experts expect this trend to reshape industries like healthcare, manufacturing, robotics, defense, and software over the next 10 to 20 years.

2. Megarounds Dominate the Venture Capital Landscape

Megarounds—funding deals of $100 million or more—have become the new norm in startup investment. In 2024, these large deals made up more than half of all funding, continuing a trend seen in previous years like 2018 and 2020.

This shift means fewer smaller deals are being made. Back in 2010, investment rounds under $50 million made up 72% of the market. By 2024, that share had dropped to just 38%.

3. Investment Expands Beyond U.S. Borders—Then Swings Back

While investment outside the U.S. grew strongly after 2014, the recent AI surge has reversed that trend. In 2016, international startups received more than half of all global investment, but in 2024, U.S. companies received 56% of the total—largely due to major AI-related deals.

4. 2021: A Record-Breaking Year for Investment

Venture investment hit an all-time high in 2021, more than doubling compared to the previous year. This spike was short-lived, with activity slowing in 2022 as tech stock values dropped and IPOs stalled. Still, the growth from 2014 to 2024 marked a solid doubling of the venture market.

For perspective, between 2010 and 2020, startup investment grew sevenfold, though it started from a smaller base.

5. The Future of Investment in a World Powered by AI

Industry leaders believe AI will expand the software market by up to three times, creating new investment opportunities and larger companies. Dharmesh Thakker of Battery Ventures predicts that successful startups could be valued at $100 billion to $500 billion—far larger than the $2 billion to $10 billion IPOs of past years.

As AI transforms labor and increases efficiency, investment is expected to flow into companies that can scale fast and compete globally. This could lead to a new wave of “decacorns”—startups valued at over $10 billion—hitting the public markets.

What’s Next for Startup Investment?

With AI still in its early stages and funding cycles lasting decades, the next ten years hold big questions: Will startup investment keep growing? Can new technologies spark another wave of global investment? And will venture capital keep supporting companies from their earliest stages?

One thing is clear: The landscape of global startup investment has changed—and the AI revolution is just beginning.

Global startup funding hit $23 billion in April 2025 — unchanged from April last year but down significantly from March’s $68 billion. This made April one of the slowest months for startup investment in the past year.

The drop followed a record-setting March, which saw a $40 billion investment in OpenAI, the largest private funding deal to date. That massive deal had temporarily boosted global totals.

April’s largest funding round also went to an AI company. Safe Superintelligence, an AI research lab co-founded by former OpenAI chief scientist Ilya Sutskever, raised $2 billion at a $32 billion valuation. The company has gained $27 billion in value in just seven months.

AI Leads Funding, Followed by Healthcare and Fintech

Artificial intelligence continued to attract the most investor interest. AI startups raised about $7 billion in April — roughly 30% of global funding for the month.

Healthcare and biotech followed with $4.1 billion, while financial services startups secured $3.8 billion. Other sectors that saw strong funding rounds included security, energy, transportation, solar, and space technology.

U.S. Startups Gained the Most Funding

Startups based in the United States attracted $14 billion in funding, making up about 62% of the global total — a rise from the 56% share seen in 2024.

In comparison, China-based startups raised $1.7 billion. The UK and India were close behind, each with just over $800 million in funding during April.

Top Investors and Funding Stages

Several major investment firms remained active in April. Insight Partners, Accel, Andreessen Horowitz, and Khosla Ventures led many post-seed deals. Large late-stage rounds were driven by investors such as Greenoaks, Franklin Templeton, General Atlantic, and Accel.

Of the total funding in April:

• 10% went to seed-stage companies,
• 37% went to early-stage startups,
• 53% supported late-stage ventures.

Funding Faces Headwinds

Despite strong interest in sectors like AI, overall funding reflects ongoing caution in the market. Concerns about economic instability, rising tariffs, and global trade tensions are making investors more careful.

Without another mega-deal like OpenAI’s in March, April’s slowdown may be a sign of more sluggish months ahead as the second quarter unfolds.

Investor interest in identity security is heating up fast. In recent weeks alone, two startups in the space raised over $300 million, and a new biometric identity initiative launched in the U.S., showing how serious the market is getting about online protection.

The biggest deal came from Persona, a San Francisco-based company that builds identity verification tools. It secured $200 million in a Series D funding round led by Founders Fund and Ribbit Capital. The company plans to use the new capital to improve its products for a digital world where bots are starting to outnumber real users.

Just days earlier, another startup, Veza, also announced a major Series D round of $108 million led by New Enterprise Associates. Veza focuses on identity security and says its tools are built for the era of AI-powered systems.

Biometric Security Goes Mainstream

The investment activity isn’t limited to traditional startups. World, a project co-founded by Sam Altman, recently launched its identity verification platform in the U.S. It uses iris scans to confirm users are human. The company opened locations in cities like Los Angeles and Nashville to capture encrypted images of people’s eyes and faces. So far, World has raised $244 million from major investors. Its goal is to create secure identity systems that distinguish between people and machines.

Strong Year for Identity Security Funding

Over the past year, more than a dozen identity-focused startups have raised significant funding rounds. Here are a few notable examples:

• Aura, a Boston-based company offering consumer security subscriptions, has raised over $660 million since its launch in 2017. That includes a $140 million Series G round in March.
• Semperis, headquartered in Hoboken, New Jersey, has raised close to $500 million. It provides threat detection and response tools to protect identity systems.
• Reality Defender, a newer company based in New York, specializes in detecting deepfakes. It recently secured a funding round from strategic investors.

Public companies in the identity security space are also seeing a lift. Okta, which provides identity verification services, has seen its market value climb to $20 billion after a strong stock performance. CyberArk, another leader in identity security, recently reached a $17 billion valuation.

Demand for Security Keeps Growing

According to the Identity Management Institute, global spending on identity and access management is expected to exceed $24 billion this year — a 13% jump from the previous year. Several trends are fueling this growth, including the rise of remote work, growing cloud adoption, and the shift toward biometric security to replace passwords.

AI is another major driver. Companies like Persona estimate that bots and AI agents will account for nearly 90% of online activity by 2030. These systems are becoming more advanced — capable of mimicking real users, generating fake content, and solving CAPTCHA tests.

While this raises concerns, it also creates a strong market for companies focused on identity protection and online security. As bots get smarter, the need for tools that can tell real users apart from machines becomes more critical — and more valuable.

The RSA Conference in San Francisco wrapped up with a clear takeaway: optimism is high among cybersecurity investors. Conversations throughout the week centered around dealmaking, the IPO landscape, and the growing influence of AI.

Thousands gathered in SoMa, reviving the city’s pre-pandemic energy. Bars and restaurants were filled, and the positive atmosphere mirrored the outlook of venture capitalists attending RSA.

Notable deals fueled that optimism. The announcement of a $32 billion acquisition involving cloud security company Wiz and Google’s parent company Alphabet, as well as activity from Palo Alto Networks, underscored the momentum. Investors hope this signals real returns, with more capital being returned to limited partners through exits.

So far this year, 32 cybersecurity startups backed by venture capital have been acquired — just behind last year’s pace of 105, which was the best year since 2021. Recent deals include Vulcan Cyber and real-time threat detection firm Oosto. Mastercard also agreed to acquire threat intelligence firm Recorded Future for $2.65 billion.

Despite encouraging numbers, global uncertainties remain. Ongoing conflicts, trade tensions, and recession fears pose potential risks. Still, most investors at RSA expressed confidence in the sector’s resilience.

“We’re optimists,” said Dave Zilberman, general partner at Norwest Venture Partners. “But with tariffs and international dynamics, there’s some instability we can’t ignore.”

David Palmer of Ten Eleven Ventures noted a rise in unsolicited interest for deals and expects exit activity to improve. While the IPO window remains mostly shut, many firms are preparing for when conditions shift.

Although public markets haven’t bounced back as hoped, investors see strength in cybersecurity. M&A activity and fundraising continue to signal a healthy market.

“There will always be global conflict,” said Alberto Yépez, co-founder of Forgepoint Capital. “But investors are still making deals. That won’t change unless broader conditions deteriorate.”

Key Trends from RSA:

• AI in Cybersecurity:
  AI remained a major topic, especially its dual role as a tool for defense and a target for protection. Some see AI as a way to automate routine security tasks, especially in SOCs. Others believe it will become commoditized, particularly in identity and fraud detection.
• Securing AI Systems:
  There’s growing awareness around the need for security in AI development — particularly around data integrity and misuse. But the field is still young, with few mature startups tackling these challenges. “Security for AI is still in the early stages,” Zilberman noted.
• IPO Outlook:
  While some investors are hopeful about future IPOs, most agree it won’t happen this year. Many firms are still preparing for eventual listings, but expectations have shifted.

Big Startup Funding Now Focuses on Fewer, Larger Deals

Startup funding was once known for backing small, early-stage companies with big ideas. But today, the landscape is shifting. While smaller rounds still exist, the majority of startup funding now flows into a few companies already seen as major players.

The most extreme example came in early 2025, when a single $40 billion round for OpenAI accounted for nearly half of all U.S. startup funding for the quarter.

This trend isn’t new—it’s been growing steadily over the past few years. The largest 10 funding rounds now account for a rising percentage of all venture dollars, pointing to a clear concentration of capital.

AI Companies Dominate the Biggest Startup Funding Rounds

Artificial intelligence startups are leading the pack when it comes to raising huge rounds. Companies like OpenAI, xAI, and Anthropic have all secured multibillion-dollar investments in recent years.

Others, such as Databricks, Waymo, and Anduril, also raised large amounts, even though their focus isn’t solely on building language models. Their work still heavily involves AI technology, which continues to attract the most capital.

By contrast, health and life sciences startups are less represented among the biggest deals. In fact, none of the top 20 funding rounds over the past two years came from this sector—though there have been notable exceptions, such as a $1 billion investment in Xaira, a biotech firm focused on AI-driven drug discovery.

Non-AI Companies Still Attracting Large Investments

While AI remains dominant, several non-AI companies have also landed major startup funding this year. Saronic, which makes autonomous surface vessels, raised $600 million in a Series C round.

Remote IT management firm Nerdio and cybersecurity company NinjaOne each closed $500 million Series C rounds, showing that interest in large-scale funding extends beyond AI.

Why Startup Funding Is Shifting Toward Fewer, Bigger Bets

This growing focus on large rounds reflects a shift in investor strategy. Rather than placing lots of small bets on early-stage startups, many investors now prefer to fund more mature companies that have already gained traction.

Historically, early-stage investments have delivered the highest returns—like the early investments in Facebook and Google. But these success stories are rare. Many seed-stage startups never scale, and the risk of failure remains high.

For venture capital firms, especially those backed by limited partners, consistent returns are essential. Backing a startup that’s already proven its value (though not always profitability) feels safer, even if it means investing at a much higher valuation.

Valuations Are High, and Risks Remain

The downside? These mega-deals often come with sky-high valuations. OpenAI’s recent $300 billion post-money valuation, for example, surpasses that of major global companies like Toyota, Samsung, and McDonald’s.

There’s always the risk that these valuations won’t hold, but investors believe the payoff justifies the price. In the case of OpenAI, demand for its products shows no signs of slowing.

The New Face of Startup Funding

Startup funding is no longer just about finding the next big thing at the seed stage. Today, it’s just as much about backing known winners with massive checks. As mega-rounds continue to shape the landscape, early-stage startups may find it harder to stand out—but the potential rewards for those who do remain as high as ever.

April Marks One of the Slowest Months for Venture Funding

Venture funding around the world totaled $23 billion in April 2025. While this matches the amount raised in April 2024, it’s a major drop from the $68 billion invested in March. The sharp decline marks one of the slowest months for startup funding over the past year.

The strong numbers in March were largely driven by a record-breaking $40 billion investment in OpenAI, the largest private deal ever recorded.

AI Leads the Way in Venture Funding

Artificial intelligence continues to dominate venture funding trends. In April, AI companies raised roughly $7 billion, accounting for 30% of all global funding.

The largest individual deal also went to an AI company—Safe Superintelligence, an AI research firm co-founded by former OpenAI scientist Ilya Sutskever. It secured $2 billion at a $32 billion valuation, gaining $27 billion in value in just seven months.

Other well-funded sectors in April included:

• Healthcare and Biotech: $4.1 billion
• Financial Services: $3.8 billion
• Security, Solar, Transportation, Energy, and Space: Several notable rounds

U.S. Startups Secure Most Venture Funding

Startups based in the United States led globally, attracting $14 billion in venture funding—about 62% of the total. That’s up from 56% in 2024, showing continued investor preference for U.S.-based startups.

Other top countries included:

• China: $1.7 billion
• United Kingdom & India: Just over $800 million each

Active Investors and Funding Stages

Several major investors were active in April. Firms like Insight Partners, Accel, Andreessen Horowitz, and Khosla Ventures led numerous venture rounds.

The biggest private deals involved large investments from Greenoaks, Franklin Templeton, General Atlantic, and Accel.

Breakdown by funding stage:

• Seed Stage: 10% of total venture funding
• Early Stage (Series A & B): 37%
• Late Stage (Series C and beyond): 53%

Market Uncertainty Clouds Outlook

Despite some standout deals, the broader venture funding market remains uncertain. Economic instability, rising U.S. tariffs, and growing trade tensions are making investors more cautious.

Without another mega-deal like OpenAI’s March funding, the April slowdown could signal more caution ahead as the second quarter progresses.

Funding Data Notes

All funding values are in U.S. dollars. Foreign investments are converted using the exchange rate on the date the funding occurred. Data reflects activity reported as of May 2, 2025.

Early-stage data may increase over time, as seed and pre-seed rounds are often reported with delays.

Why Partnerships Matter for Startups

When investors evaluate startups, one critical but often overlooked factor is the partnership potential. A strong partnership with a larger company can help a startup move beyond one-on-one sales and reach more customers faster. It also builds trust and adds credibility, especially in industries like finance or healthcare.

Working with established companies can provide access to broader customer networks, expert support, and proven infrastructure. This leads to faster innovation, better risk management, and more opportunities to grow.

A Real Example: How BILL Got Partnerships Right

BILL set the standard for B2B2B growth. It first proved its product worked through direct sales. Once it had product-market fit and steady revenue, it started forming partnerships with accounting firms and banks.

Today, companies like HighRadius, Gusto, and Melio are following a similar path, and many financial platforms now offer built-in partnership channels for startups to grow through.

Why Your Startup Should Consider a Partnership

Startups targeting small and midsize businesses (SMBs) often don’t have massive upfront contracts. That’s why a partnership strategy is one of the most effective ways to grow. It’s cost-effective and gives you access to the partner’s customer base and trust.

How to Build a Successful Partnership Strategy

1. Prove Your Value First

Start by building a solid product. Find product-market fit, achieve strong customer satisfaction (high NPS), and generate early revenue on your own. Big companies won’t partner with a startup that hasn’t shown real value.

If your product needs technical integration, use APIs or simple tools to make adoption easy. Enterprises want a partnership that scales—make sure you’re ready.

2. Identify the Right Partners

Ask yourself: Who do your customers already trust? These are your ideal partnership targets. You can start small by working with regional banks or niche platforms. Offer them a good deal in return for their support and feedback.

Keep testing and refining. Over time, this becomes your go-to-market partnership playbook.

Founders Should Lead Early Partnerships

In the early stages, founders should lead the partnership conversations. Senior executives at banks or large firms expect to talk to decision-makers. Once early deals are in place, a product or go-to-market team member can help with follow-ups.

Set Clear Goals with Your Partners

From the beginning, align on success metrics. Define what success looks like, how to measure it, and what happens next if the test goes well.

Start with Low-Risk Outreach

An email campaign is a simple, low-cost way to test a partnership idea. Ask your target partner to reach out to a few hundred ideal customers. Craft the message together. You’ll get valuable feedback early—without needing to build anything complex.

Don’t stress about referral fees at this stage. If you’re doing the heavy lifting, many partners are open to testing without upfront costs.

Pay close attention to how people respond. Click rates are key. Optimize constantly.

Be Patient—Partnerships Take Time

Landing a major partnership often takes two years. And making it successful can take one to three years.

You need someone senior on the partner’s side to stay involved. Without that internal champion, the effort can stall.

That said, don’t fully walk away if a partnership doesn’t close right away. Stay in touch. Timing changes, and you want to be the first they call when they’re ready.

A confident founder walks into a pitch meeting. The presentation looks sharp. The story is strong. Then comes the big moment—the numbers.

“The market is worth $4 billion,” they say. “If we capture just 2.5%, we’ll hit $100 million in revenue in four years.”

The room goes quiet. Investors nod, ask a few questions, and end the meeting with, “We’ll be in touch.” But as the founder leaves, they feel something went wrong. It wasn’t the ambition or the product. The mistake was in how the forecast was presented.

The Common Forecasting Mistake

The founder used a top-down forecast—starting with total market size and working backward to estimate revenue. On paper, it sounds logical. In reality, experienced investors see it as a red flag.

Forecasting shouldn’t be based on big dreams. It should reflect what your business can actually achieve. That’s where bottom-up forecasting makes the difference.

Why Bottom-Up Forecasting Works

A top-down forecast begins with the entire market and guesses what share a startup might get. But it skips the hard questions: How will you get customers? How much will you charge? What resources do you have?

Bottom-up forecasting starts with what’s real. It asks:

• How many customers can we sign?
• At what price?
• With our current team and budget?

Then it builds the numbers from there. This isn’t just more practical—it’s more credible.

The Mistake Investors Notice Right Away

Saying “we’ll get just 1% of a $10 billion market” isn’t impressive. It shows a lack of understanding. Investors want to see that you know your customer acquisition cost, lifetime value, churn rate, margins, and how fast your team can grow.

A bottom-up model gives them that. It shows you’ve thought through your business operations, not just your potential.

Why Bottom-Up Forecasting Is Smarter

Top-down models are often rigid. They assume growth will follow a straight path. But business rarely works that way. Things change—your budget, your sales team, your conversion rates.

A bottom-up forecast can adapt. It lets you test different scenarios. What if you raise more money? What if churn improves? A solid bottom-up model can answer those questions on the spot.

The Only Time to Use Top-Down

If you include a top-down forecast at all, let it serve one purpose: a quick check to make sure your bottom-up numbers don’t exceed your total market size. That’s it. Anything more, and you risk making a mistake that could turn off serious investors.

Two weeks ago, the Secretary of Education stood before the country and called AI “A1.” What should have been a serious conversation about education quickly became a joke online. Now, the Trump administration has signed an executive order promoting artificial intelligence in K-12 schools, telling federal agencies to boost AI research and funding.

This move might sound like innovation, but it misses the point. Our schools are in crisis — and AI isn’t the fix they need.

The Real Issues Behind Our Education Crises

Let’s be clear: AI has potential in education. Tools like personalized learning systems and data analytics can help — when used wisely. But right now, the core problems in our schools have nothing to do with technology.

We have underpaid teachers, overcrowded classrooms, broken buildings, and outdated materials. Instead of addressing these long-standing crises, the government is pushing tech as a silver bullet. It’s not leadership — it’s avoidance.

Funding Cuts Make Things Worse

The Trump administration is cutting critical education programs and shifting focus toward privatization. In that context, introducing AI into classrooms doesn’t solve anything. A fancy algorithm can’t help when a school has no heat, no internet, or not enough staff. Teachers struggling with 30+ students can’t suddenly become tech experts — they barely have time to plan one lesson per week.

If the basics aren’t in place, no amount of AI will make a difference.

The Innovation Myth

This executive order assumes our biggest issue is a lack of innovation. But we don’t have an innovation gap — we have a funding and policy gap. Students are falling behind not because of outdated tech, but because we’ve neglected education as a public good for decades.

Our schools operate with broken facilities, old textbooks, and staff who are stretched thin. Teachers often buy supplies with their own money. Students go without meals or mental health support. These are the real education crises — and AI won’t fix them.

More Tech, More Inequality

Let’s also talk about equity. Implementing AI in classrooms requires devices, internet access, and trained staff — things wealthier districts already have. Poorer schools don’t. This kind of policy risks widening the digital divide, leaving the most vulnerable students even further behind.

What’s being sold as progress is really just another way to deepen inequality — under the banner of modernization.

What Teachers, Students, and Parents Actually Need

Teachers aren’t asking for AI. They want smaller class sizes, better pay, and real support. Students need safe schools, stability, and people who care about them — not more screen time and standardized testing. Parents aren’t looking for the next tech trend. They want to know their kids are getting a solid, human-centered education.

AI is a tool, not a solution. It can help, but it can’t replace public investment, committed teachers, or strong communities.

A Serious Crisis Needs Serious Action

If the administration truly cared about fixing the education crises, it would invest in schools, support teachers, and close opportunity gaps — not slash budgets and push technology as a distraction.

Until we treat education as a priority and fund it like one, all the artificial intelligence in the world won’t help.

Major tech companies like Mastercard, Nvidia, and AMD made headlines last year by acquiring AI-focused startups. Now, newer and privately held players may be stepping into the spotlight.

Last week, reports surfaced that OpenAI is in talks to acquire Windsurf, a code-generation tool formerly known as Codeium, in a deal valued at around $3 billion. If completed, it would be OpenAI’s largest acquisition to date.

This potential deal follows a $40 billion investment OpenAI received in March, with support from backers such as SoftBank. OpenAI reportedly also considered buying Anysphere, the maker of the AI coding assistant Cursor, but those talks didn’t lead to a deal. Anysphere’s valuation is said to be nearing $10 billion.

Despite high operating costs, OpenAI has the funding needed to pursue major deals—and it’s not alone.

More AI Investment Activity

OpenAI isn’t the only company spending big in the AI space. Last week, Anthropic joined a $50 million Series A funding round for Goodfire, a startup that helps businesses develop AI models. This marks Anthropic’s first direct investment in a startup outside its ties to Menlo Ventures.

Given that Anthropic has raised $4.5 billion this year, more acquisitions or investments are likely on the horizon.

Meanwhile, Elon Musk’s AI company, xAI, recently acquired X—the social platform he also owns—in an all-stock transaction valued at $33 billion. xAI has already raised $12 billion in 2024 and is reportedly seeking another $20 billion, suggesting more AI-related deals could follow.

Big Tech Still in the Game

Traditional tech giants aren’t stepping back. Just this week, Palo Alto Networks announced plans to acquire Protect AI, a company that focuses on securing AI applications. Though the purchase price wasn’t disclosed, Protect AI was last valued at $400 million in 2023.

These moves show that the race to build and control the future of AI isn’t just for public companies. Private firms like OpenAI, Anthropic, and xAI are becoming aggressive buyers, signaling a shift in how acquisitions are shaping the AI landscape.

Interest in AI across enterprises is booming, especially with the rise of AI agents—smart, autonomous tools designed to carry out complex tasks. According to Meta’s head of business AI, Clara Shih, AI agents will soon be as common in business as websites and email addresses.

But for this vision to become a reality, companies need more than just smart agents—they need the right infrastructure for AI. And the most critical piece of that infrastructure is orchestration.

What Is Orchestration?

Orchestration connects your entire operation—technology, people, and processes—into a unified system. It allows AI agents to function within your existing workflows by creating a structured environment where both humans and machines can collaborate effectively.

AI, like human workers, performs best with clear direction. Orchestration brings that structure. Without it, even the most advanced AI agents can become inefficient or even counterproductive.

Why Orchestration Matters in the AI Ecosystem

Imagine putting 130 musicians in a room without a conductor. Despite their individual talent, they produce chaos, not harmony. The same goes for AI in a business. Without orchestration, your AI tools operate in silos and fail to deliver their full potential.

Here are three key ways orchestration strengthens the infrastructure for AI:

1. Seamless Connectivity

For AI to create real impact, it needs to work across all your systems—not just one app or interface. Orchestration platforms connect your tools and data, enabling agents to move freely through your tech stack. This ensures that AI agents aren’t locked into single-use cases but can support tasks across departments.

2. On-Demand Accessibility

AI should meet employees where they work—inside Slack, Teams, or internal dashboards. Orchestration makes this possible by allowing AI-powered workflows to be deployed exactly when and where they’re needed.

With tools like agent builders, internal teams can design custom processes that automatically deliver the right AI support at the right time. Employees simply ask a question, and the orchestration layer activates the right agent—or multiple agents—to solve the problem efficiently.

3. Strong Governance and Control

Security and trust are critical when deploying AI in the enterprise. Orchestration gives organizations the ability to set strict rules around what AI agents can access and what actions they can perform.

It ensures that sensitive data stays protected, and that humans remain part of the decision-making loop when necessary. You can even program when agents should defer to a human—ensuring safe, compliant AI operations.

Building the Right Infrastructure for AI

Many companies focus on developing smarter AI models. But long-term success will depend more on how intelligently AI is used—not just how smart it is. That’s why the real infrastructure for AI starts with orchestration.

Companies that win in the AI era won’t just have the best tools—they’ll have the best systems in place to manage them. And orchestration is the foundation that brings it all together.

The rise of embedded finance is reshaping the digital economy. Consumers now expect fast, seamless access to financial services directly within the apps they already use. Startups are leading the way by integrating payments, loans, insurance, and investing features into their platforms — creating new business models and unlocking revenue that traditional financial products couldn’t offer.

Why Embedded Finance Is Growing Fast

At its core, embedded finance thrives on one key driver: convenience. In the past, managing finances meant long lines, paper forms, and physical bank visits. Today, users expect to pay, borrow, and invest in just a few taps — all within a familiar app.

The market potential is massive. Revenue from embedded finance platforms is projected to grow from $21 billion in 2021 to $51 billion by 2026. Transaction volume is expected to hit $7 trillion, or about 10% of all U.S. financial transactions.

Technology is also fueling growth. What once required large IT teams and months of work can now be done in days using Open APIs. Platforms like Stripe and Revolut allow startups to integrate financial services quickly and affordably.

But beyond convenience and speed, embedded finance is a strong revenue driver. Startups can earn a percentage from every transaction while increasing customer loyalty. For example, nearly half of Shopify’s revenue now comes from financial services, not subscriptions — a clear signal of how powerful embedded finance can be.

Traditional Banks Are Struggling to Keep Up

Most traditional banks rely on outdated systems that make innovation difficult. Moving from decades-old infrastructure to modern, API-compatible systems is costly and time-consuming. Larger banks are investing heavily in digital upgrades, but many mid-sized or long-established banks are falling behind.

These institutions often face challenges like rigid regulations, outdated technology, and internal resistance to change. Some still require in-person visits for simple services or operate core systems with outdated tools. This puts them at a disadvantage compared to digital-first startups that deliver faster, more transparent financial services.

Consumer Expectations Are Changing

Today’s users want more than just basic banking. They expect all-in-one “super apps” that offer full visibility into their finances — from real-time balances to live exchange rates — all without leaving the platform.

Modern digital banks offer these features by default. Meanwhile, traditional banks may take days to provide the same information, often through email or manual processes. This disconnect pushes users toward tech-forward platforms that offer a better experience.

To stay competitive, banks don’t need to build every solution themselves. Strategic partnerships with embedded finance providers can help. What matters most is creating a seamless experience within one platform. Those that succeed will grow. Those that don’t risk losing customers and revenue.

Los Angeles-based space tech startup Apex has raised $200 million in a Series C funding round, less than a year after closing a $95 million Series B. The latest round was led by 8VC and Point72 Ventures, with participation from Andreessen Horowitz, Washington Harbour Partners, and StepStone Group.

Apex specializes in producing satellite buses — the central structure of a spacecraft — at scale. Its goal is to meet growing demand from both government and commercial clients, including the U.S. Department of Defense.

Scaling Up for National Security and Commercial Growth

“Apex’s way of building spacecraft is essential to achieving U.S. goals in both national defense and the commercial space industry,” said CEO Ian Cinnamon. “This funding allows us to grow production in advance of demand, supporting missions for key customers such as defense contractors, government agencies, and leading private companies.”

The company plans to expand its manufacturing capabilities and increase inventory to shorten delivery times for satellite components — a critical need in today’s rapidly evolving space tech sector.

Investor Interest Grows in Space Tech

Investor interest in defense-related technology has been climbing. While broader space tech funding remains cautious — with $1.7 billion invested in venture-backed space startups in Q1 2025 — some companies are securing major rounds.

Other recent high-profile investments include:

• Stoke Space, a reusable rocket startup, raised $260 million in its Series C.
• Epirus, focused on directed energy defense systems, raised $250 million in a Series D.

Though total space tech investment last year reached $12.5 billion, 2025 is already seeing significant activity among companies positioned at the intersection of defense and space innovation.

With IPO markets still slow and startup valuations down from their 2021 highs, acquisitions are becoming a preferred exit route. Q1 2025 marked a major rebound for startup M&A, driven by more deals from private equity firms, strategic buyers, and even startups acquiring other startups.

1. Startup M&A Deal Value Hits $71 Billion in Q1 2025

The first quarter of 2025 was the strongest for startup M&A since 2021, reaching $71 billion in global exit value. A total of 550 acquisitions involving venture-backed startups were recorded — a 26% increase compared to the same period last year, though slightly down from 563 deals in Q4 2024.

Notable transactions included Google’s proposed $32 billion acquisition of cybersecurity company Wiz — potentially the largest private company acquisition on record. Other billion-dollar deals involved companies like Ampere Computing (acquired by SoftBank), Modernizing Medicine (by Clearlake Capital), Moveworks (by ServiceNow), and Weights & Biases (by CoreWeave).

The AI sector was particularly active, with 81 M&A deals involving AI-focused startups in Q1 — a 33% increase from both Q1 and Q4 of 2024.

2. Private Equity Firms Expand Their Role in Startup M&A

Private equity activity in startup M&A remains strong. In 2024, PE firms disclosed over $56 billion in acquisitions of venture-backed companies — and that figure only includes deals where pricing was made public.

That momentum carried into Q1 2025, with 22 announced acquisitions of seed- or venture-funded startups by PE firms. Among the largest:

• Clearlake Capital acquired a majority stake in ModMed for $5.3 billion.
• Bain Capital purchased HealthEdge for $2.6 billion.
• CBRE bought flex workspace provider Industrious for $400 million.

These deals underscore PE firms’ growing appetite for scaling up through acquisition, especially in healthcare and enterprise software sectors.

3. Startups Are Buying Other Startups

An increasing number of venture-backed startups are becoming acquirers themselves. Over the past year, 423 U.S.-based seed or venture-funded companies were acquired by other private startups.

While many of these deals don’t disclose pricing, some notable ones stand out:

• Stripe acquired fintech peer Bridge for $1.1 billion — the largest startup-to-startup deal of the past year.
• AlphaSense bought Tegus for $930 million.
• LetsGetChecked acquired Truepill for $525 million.

These acquisitions reflect a growing trend where mature startups use M&A to expand offerings, acquire talent, or consolidate markets.

What’s Ahead for Startup M&A in 2025?

At the start of the year, many expected startup M&A activity to keep rising, driven by hopes of a more business-friendly environment under the new U.S. administration. However, shifting economic policies — especially unpredictable tariff changes — have introduced new uncertainty.

According to Ofer Schreiber, senior partner at YL Ventures, large strategic buyers are proceeding more cautiously due to market instability and changing valuations. “Macroeconomic conditions heavily influence M&A decisions, particularly for public companies,” he noted.

Every year, around 50 million new startups launch globally, yet nearly 90% of them fail. One of the biggest mistakes? Expanding into the global market too early — before the business is truly prepared.

As the founder of a company based in Estonia, I’ve led successful expansions into Armenia and Spain. But global growth doesn’t happen by chance. It requires careful planning, the right team, and a clear strategy.

Global Market Expansion Isn’t for Every Business

Not every startup needs to go international. Growing revenue can come from improving customer retention, expanding your product line, or adjusting pricing. Entering the global market is just one path — and it’s a challenging one.

Even if you’re ready as a founder, your business might not be. Early wins can create pressure to grow fast, especially if investors are expecting results. But rushing into the global market without the right foundation often leads to failure.

Before you expand, make sure your team and systems can handle the change. Otherwise, you risk weakening your core operations.

3 Signs Your Business Is Ready for the Global Market

Here’s how to know if you’re truly prepared to scale internationally:

• Proven Product-Market Fit: You’ve built a product that consistently meets customer needs and generates real demand in your current market.
• Strong Internal Processes: Your operations should run smoothly and be automated enough to allow your team to focus on expansion without disrupting daily business.
• Financial Stability: Global market expansion is costly and often slower than expected. You’ll need a financial cushion to cover unexpected expenses and give your new market time to grow.

If you’re missing any of these, it’s smarter to pause and strengthen your foundation before entering the global market.

Tips for Successfully Entering the Global Market

If your business checks all the boxes, here are key strategies that helped us expand effectively:

• Hire Local Talent or Advisors: Local knowledge is essential. Experts who understand regional business practices and cultural habits can shape pricing, communication, and overall market entry strategy.
• Test the Market First: What works in one country may not work elsewhere. Talk to local users, test demand, and adjust your offer based on feedback.
• Build a Dedicated Expansion Team: Don’t overburden your current team. Expansion requires focus. Assign people whose only job is to build the new market.
• Evaluate Market Viability: Look at market size, competitive landscape, and regulatory barriers. Make sure the opportunity justifies the investment and that your business can navigate local laws and compliance requirements.

Final Thought

Expanding into the global market can fuel long-term growth — but only if your business is ready. Success depends on strong systems, a solid team, and realistic expectations.

Before taking the leap, ask yourself: Are we prepared to commit time, money, and people to this effort? If the answer is yes, the global market could be your next big opportunity.

As the IPO market remains sluggish, many startups are turning to mergers and acquisitions for exits. While sales to strategic buyers are still common, private equity (PE) firms are increasingly becoming major acquirers—especially in the face of ongoing market turbulence.

In the past five years, PE firms have spent over $56 billion buying private, venture-backed companies with publicly disclosed prices. Since most deals don’t report a price, the actual total is likely far higher.

PE Deals Hold Steady in 2025

So far in 2025, there’s been no slowdown. PE firms have announced 22 acquisitions of venture-funded private companies this year. Of those, three deals alone totaled $8.3 billion in disclosed value.

This includes the largest reported deal in over five years: Clearlake Capital’s majority stake in healthcare software firm ModMed for $5.3 billion. Founded in 2010, ModMed had raised over $385 million in funding and recently focused on using AI to improve its services for medical practices.

The second-largest deal was Bain Capital’s $2.6 billion acquisition of HealthEdge in April. Though HealthEdge was founded in 2004, it raised nearly $100 million in venture funding before being acquired by Blackstone in 2020.

Late-Stage Startups Attract PE Buyers

Private equity typically targets companies with strong revenue and mature operations. As a result, most acquisitions involve startups that are later-stage rather than early-stage.

Recent examples include:

• AuditBoard, an auditing automation platform founded in 2014, acquired by Hg for $3 billion.
• Nasuni, a cloud storage company founded in 2009, bought by Vista Equity Partners for $1.2 billion.

Younger startups, especially those in seed stages, are less likely to be acquired by PE firms. These companies are more often bought by strategic players within the same industry who are interested in the technology rather than immediate revenue.

Market Turbulence Brings Mixed Signals

Looking ahead, there are reasons both for optimism and caution regarding future PE activity amid ongoing market turbulence.

On the downside, publicly traded PE firms like Blackstone, KKR, and Apollo have seen their stock prices drop significantly—around one-third off their recent highs. This reflects growing investor skepticism about the profitability of large-scale acquisitions.

However, there’s no shortage of acquisition targets. In the U.S. alone, there are over 700 private, venture-backed companies valued at $1 billion or more at their last reported funding round. Many of these businesses raised large amounts during the market peak four years ago, and while valuations have since declined, many remain strong candidates for acquisition—particularly outside overheated sectors like generative AI.

In today’s fast-moving startup environment, the Founder’s Office is quickly becoming essential. For any high-growth startup, this team bridges the gap between founders and the rest of the company, keeping strategy on track and momentum strong.

Leading companies like Stripe, Revolut, Notion, Ramp, Brex, Checkout.com, and OpenAI have adopted this model to manage the demands of rapid scaling. The Founder’s Office acts as a direct extension of the founders, handling critical tasks, removing obstacles, and preserving the founders’ time for big-picture decisions around vision, product, and culture.

Here are four key reasons why every high-growth startup should build a Founder’s Office:

1. It Extends the Founders’ Reach Without Spreading Them Thin

Most startups hire one chief of staff—but that often isn’t enough. A full Founder’s Office brings together a team of strategic thinkers with diverse skills who keep the founders focused on what matters most.

As a high-growth startup scales, speed and smart delegation become crucial. The Founder’s Office handles complex projects and steps into high-impact conversations, freeing up founders to lead, fundraise, hire, and shape the company’s future.

2. It Builds Scalable Systems from Day One

Everyone in the Founder’s Office brings operational excellence and the ability to create structure in chaos—both must-haves in a high-growth startup.

This team works across departments, identifying inefficiencies and fixing them before they become major problems. At Abacum, for example, the Founder’s Office team members focus on sales, operations, and growth—each contributing deep expertise to keep the company moving forward.

3. It Grooms Future Leaders from Within

The Founder’s Office is a launchpad for leadership. Team members gain exposure to every corner of the business and develop a strong understanding of how it runs.

Over time, they grow into senior roles. At Abacum, the heads of product marketing and growth both came from the Founder’s Office, showing how it supports a high-growth startup in developing leaders who already understand the culture and strategy.

4. It Keeps Execution on Track and Everyone Accountable

As the team grows, it’s harder for founders to track everything themselves. The Founder’s Office solves this by keeping an eye on key metrics, project deadlines, and cross-functional initiatives.

With a broad view of the business, this team ensures clear communication, smooth execution, and alignment on priorities—everything a high-growth startup needs to succeed at scale.

1. Airvet Brings Telehealth to Pet Care

Telehealth isn’t just for people anymore. With pet ownership on the rise and the pet economy expected to grow to over $500 billion by 2030, startups are tapping into new ways to care for furry companions.

Airvet, based in Beverly Hills, raised $11 million in a Series B-2 round led by HighlandX. The company offers a pet telehealth platform that employers can offer as a benefit. Through the platform, pet owners connect with a network of over 2,000 licensed veterinarians via video or chat.

Airvet has seen its revenue grow 4x in the last year and tripled its client base—showing clear demand for virtual vet care.

2. Daymark Health Supports Cancer Patients Beyond the Clinic

Daymark Health, a Philadelphia startup, raised $11.5 million in seed funding co-led by Maverick Ventures and Yosemite.

The company focuses on improving cancer care by addressing clinical, emotional, and social needs. Its platform works with insurers to provide nurse practitioners, social workers, and other professionals who coordinate care virtually and at home in partnership with oncologists and primary care doctors.

With nearly 2 million cancer diagnoses in the U.S. annually, Daymark aims to fill a major gap between office visits and everyday challenges patients face.

3. SeafoodAI Uses Biometrics to Modernize the Crab Industry

SeafoodAI, based in Palo Alto, landed investment from NEC X in April to bring automation and traceability to the seafood industry.

Starting with crab, the company’s CrabScan360 system uses AI-powered biometric scanning to automate sorting, measurement, and data collection. The goal is to replace outdated manual processes, ensure regulatory compliance, and help fisheries achieve sustainability certifications faster.

SeafoodAI plans to expand to other markets like tuna, salmon, and shrimp.

4. Remedy Scientific Tackles Contaminated Land with Smarter Cleanup Tech

Environmental cleanup isn’t a typical startup focus, but Remedy Scientific is changing that.

The Oakland-based company emerged from stealth this month with $11 million in seed funding from Eclipse Ventures, Refactor, and others. Remedy’s tech platform uses sensors and algorithm-driven processes to detect and eliminate tough contaminants like PFAS—also known as “forever chemicals.”

With over 450,000 brownfield sites in the U.S. and cleanup timelines often exceeding a decade, Remedy aims to cut those timelines significantly and lower remediation costs.

5. Doctronic Combines AI and Human Care for Affordable Health Access

Doctronic, based in New York, raised $5 million in seed funding from Union Square Ventures and Tusk Venture Partners.

The startup offers an AI-powered health assistant that gives users personalized, anonymous health insights. What makes Doctronic unique is its integration with a network of licensed providers offering video visits for just $39—no insurance required.

As healthcare costs continue to rise, Doctronic is betting that combining AI with affordable telehealth can deliver smarter, cheaper care.

Final Thoughts

From pet care to pollution cleanup, these April startup deals show how innovation is solving problems in unexpected places. Whether it’s automating seafood tracking or improving cancer support, these companies reflect a broader trend in startup funding news: practical solutions with real-world impact.

Tariffs Disrupting the Venture Value Chain

The venture value chain—from raising capital to startup funding and exits—is facing real pressure from growing tariff tensions. What once seemed like distant trade policy is now affecting day-to-day decisions across the startup and venture capital world.

Tariff uncertainty is being called one of the biggest global trade shake-ups since 1947. With governments rethinking alliances and tightening trade policies, startups and investors are forced to respond.

VC Fundraising Feels the Pressure

Even before tariffs entered the picture, venture capital was seeing a slowdown. Now, tariffs are creating more hurdles:

• Capital Pullback: Market volatility tied to tariffs is causing some investors to reduce their exposure to venture funds. Many are rebalancing after recent stock market declines.
• Shift to Safer Investments: Limited partners (LPs) are moving money into asset classes like private credit or infrastructure, which feel safer in today’s uncertain economy.
• Favoring the Familiar: LPs are sticking with established VC firms, making it harder for newer funds to raise capital.

The venture value chain starts with capital, and that flow is already under pressure.

Tariffs Make Startup Fundraising Tougher

While Q1 showed signs of a startup funding recovery, the momentum may not last. Tariffs create a more cautious environment:

• Increased Risk Aversion: Even with plenty of capital on hand, investors are pulling back. Only startups with proven metrics and resilience are seeing strong interest.
• Sector Impact Varies: Startups in hardware or consumer goods face higher costs and supply chain delays. Global expansion plans are now more difficult due to trade restrictions.
• Geographic Fallout: Chinese startups were already struggling, but if U.S.-EU trade tensions grow, fundraising timelines could stretch and valuations may stall.

The venture value chain relies on steady funding. Tariffs are causing that chain to tighten.

Exits Are the Weakest Link

Tariffs may be hitting the exit stage hardest—impacting IPOs, mergers, and secondaries.

• IPO Uncertainty: Public offerings are rare but essential for major returns. Early 2025 brought hope, but renewed tariff fears spooked markets. Firms like Klarna and StubHub hit pause on IPO plans.
• M&A Activity Rising Slowly: Big players are cautious, but startup-to-startup deals are growing. These smaller mergers, driven by team hires or product synergy, may increase as funding stays tight.
• Secondaries Gaining Ground: Selling stakes in private companies is becoming a key way to get liquidity. However, tariffs complicate pricing, and discounts may deepen—especially for newer or underperforming funds.

This stage of the venture value chain is crucial. Without strong exits, the whole system slows.

What’s Next for the Venture Value Chain?

Tariffs are no longer background noise. They’re directly influencing hiring, investing, and exit strategies across the venture value chain. As global trade remains uncertain, founders and investors must rethink how they operate.

The coming months, especially Q2, will be critical. If trade tensions cool, the disruption may be short-lived. If not, the venture world will need to evolve—fast.

Unlocking the Value of the R&D Tax Credit

Startups are built on innovation—but funding research and development (R&D) can be expensive. The R&D tax credit is a powerful tool that helps offset these costs. Established in 1981 and made permanent in 2015, this credit can provide up to $500,000 in annual savings for qualifying startups.

Yet many founders overlook this opportunity. Understanding how the R&D tax credit works—and how to claim it—can unlock major benefits.

What Is the R&D Tax Credit?

The R&D tax credit reduces your federal tax liability based on eligible research activities. It applies to a wide range of R&D work—not just cutting-edge breakthroughs. If your team is improving products, processes, or technology through experimentation, your startup may qualify.

Key points to know:

• Not just for profitable startups: If your startup makes under $5 million in gross receipts, you may apply the credit to offset payroll taxes—even if you’re not yet profitable.
• U.S.-based only: The credit only covers research done within the United States. Keep clear records of where your R&D activities take place.
• Timing matters: You’ll need to file the proper forms with your tax return. Start tracking R&D expenses early to speed up the process.

Steps to Maximize the R&D Tax Credit

To get the most from the R&D tax credit, follow these essential steps:

1. Track Everything

Keep detailed records of all R&D-related activities and expenses. This includes:

• Employee wages tied to R&D
• Supplies used in experiments
• Contractor fees
• Cloud hosting or server costs tied to development

2. Understand What Qualifies

The IRS uses a four-part test to decide if your research qualifies:

• Is the research based on technology?
• Does it aim to improve a product, process, or software?
• Does it involve uncertainty?
• Was a process of experimentation used?

If you can say yes to these, your work likely qualifies.

3. Stay Updated

Tax laws change. The 2017 Tax Cuts and Jobs Act, for example, now requires R&D expenses to be amortized over several years. Ongoing changes could impact how you claim the credit—so stay informed.

4. Work with a Specialist

R&D tax credits are complex. A tax expert can help ensure you meet all requirements, avoid mistakes, and get the largest possible benefit.

Why It Matters

Taking full advantage of the R&D tax credit offers more than just savings:

• Improved cash flow: Reducing tax bills frees up funds for growth.
• Stronger positioning: Startups with more R&D funding can move faster and stay ahead.
• Investor appeal: Showing that you’re taking advantage of all available financial tools helps build credibility.

Final Takeaway

The R&D tax credit is one of the most valuable tax tools available to startups. It rewards your investment in innovation and can fuel your company’s growth.

Don’t leave money on the table. Stay proactive, keep detailed records, and consult a tax expert to make sure your startup gets the savings it deserves.

Startups Are Spending Big on Acquisitions

It used to be that when one startup bought another, it was a small deal. That’s no longer true.

With many startups now holding massive funding rounds, they’re more willing—and able—to make large acquisitions. Some of these deals are worth hundreds of millions of dollars, showing how startup-to-startup buying has become a serious part of the market.

In the past year, more than 400 U.S. venture- and seed-backed startups have been acquired by other private, VC-backed companies. Of the deals with disclosed prices, the total value exceeds $6.3 billion.

Biggest Startup Acquisitions This Year

One of the biggest deals came from Stripe, a major player in payments tech. In October, Stripe acquired fintech startup Bridge for $1.1 billion.

Infinite Reality, a unicorn in spatial computing and AI, recently bought Touchcast for $500 million in a cash-and-stock deal. Earlier this year, Rokt, an e-commerce tech startup, purchased mParticle for $300 million.

These acquirers aren’t just spending big—they’re extremely well-funded. Stripe has raised $9.4 billion to date, while Infinite Reality has brought in $3.4 billion.

Startups Making the Most Acquisitions

Some startups don’t just spend big—they buy often. Several are serial acquirers with 10 or more deals to date. Key examples include:

• Databricks: Acquired at least 11 companies in five years, including MosaicML for $1.3 billion.
• Automattic: Owner of WordPress.com, has 29 acquisitions, including chat app Beeper for $125 million.
• Stripe: 16 acquisitions over 13 years, with Bridge and Paystack (acquired for $200 million) being the most notable.
• Infinite Reality: Completed 10 acquisitions, with five deals above $100 million just in the past year.
• GrubMarket: With 54 acquisitions, this food supply chain startup is one of the busiest, including its purchase of Good Eggs.
• Scopely: A game publisher that recently acquired Niantic’s game business for $3.5 billion.
• Epic Games: While less active lately, Epic has made 20 acquisitions, including its April purchase of 3D content startup Loci.

Why More Startups Are Turning to M&A

Many high-valuation startups are choosing to stay private rather than go public in today’s volatile market. With plenty of capital on hand, they’re using mergers and acquisitions as a growth strategy.

Even though most startups don’t reveal how much they spend, their buying patterns make it clear that private company M&A is heating up—and could play an even bigger role in the tech economy moving forward.

Startup Layoffs: Why Responsibility Matters

Jack Dorsey’s recent decision to cut 931 jobs at Block is a sharp reminder that poorly handled workforce changes can quickly escalate into legal and public relations problems.

Startups, often focused on growth and funding, sometimes overlook critical employment law obligations. But even early-stage companies need to build strong HR foundations. Responsible handling of startup layoffs protects both the business and its people.

Plan Ahead for Workforce Reductions

Market shifts often force startups to make tough staffing decisions. But careless layoffs can lead to lawsuits and compliance issues. Large job cuts may trigger federal or state WARN Act rules, while even small layoffs require attention to anti-discrimination laws and proper documentation.

Startups should handle layoffs fairly and transparently, with clear processes that are well-documented. This not only reduces legal risks but also maintains trust with employees and investors.

Get Equity Agreements Right

Equity is a common tool for attracting talent when cash is tight. But unclear or poorly written agreements can lead to disputes. Startups should define vesting schedules, exit terms, and repurchase rights clearly.

Including “bad leaver” clauses helps protect equity structure when employees leave under negative circumstances. Without clear terms, founders may face legal fights over equity during mergers or acquisitions.

Avoid Compensation and Classification Pitfalls

Creative pay models—like equity or deferred payments—can cause problems. Employees must meet wage thresholds under labor laws, and equity alone doesn’t meet these standards.

Misclassifying full-time employees as contractors is another common issue. To avoid penalties and audits, startups must follow proper classification rules based on job duties and responsibilities.

Use Restrictive Covenants Carefully

Noncompete and nonsolicitation clauses can protect business interests, but their enforcement varies by state. In places like California, most noncompetes are unenforceable.

Startups, especially those with remote teams, must ensure these agreements are narrowly focused and legally valid. Vague or overly broad terms are often thrown out in court.

Take Workplace Allegations Seriously

Startup layoffs and internal changes can trigger complaints. Ignoring issues like harassment, misconduct, or compliance violations can hurt a company fast. Quick, detailed internal investigations show leadership and reduce risk.

Also, reinforcing confidentiality with exiting employees helps protect sensitive information. Regular reminders of nondisclosure obligations protect your competitive edge.

Prevent Founder Disputes

Conflicts between co-founders can derail a startup. Equal ownership often leads to decision deadlock. Setting up clear dispute-resolution steps—like buy-sell agreements or arbitration—helps keep the business moving forward, even during disagreements.

Legal Help Early On Pays Off

Many startups skip legal advice early to save money. But investing in basic legal support—like contracts, equity plans, and termination policies—can prevent costly issues later. Solid legal foundations support long-term success.

Build Smart from the Start

Handling startup layoffs the right way is about more than compliance—it’s about building a stable, trustworthy company. Founders who take legal responsibilities seriously protect their teams, their vision, and their future.

Chainguard, a leader in software supply chain security, has secured $356 million in a Series D funding round, pushing its valuation to $3.5 billion. This significant investment highlights the growing demand for safer software development practices.

The round was co-led by Kleiner Perkins, a new investor, and IVP, an existing backer. Other participants included Salesforce Ventures, Datadog Ventures, and all prior investors.

This new valuation is over three times higher than Chainguard’s previous $1.12 billion mark following its $140 million Series C.

Chainguard helps businesses build and maintain secure software by offering trusted open-source tools and preventing vulnerabilities in the development pipeline. The company reports $40 million in annual recurring revenue (ARR) and aims to surpass $100 million by the end of fiscal year 2026.

“Chainguard was founded on the belief that security shouldn’t slow innovation,” said CEO and co-founder Dan Lorenc. “We’re committed to making secure, reliable open-source software the industry standard.”

Founded in 2021, Chainguard has now raised a total of $612 million.

Cybersecurity Funding on the Rise
Chainguard’s growth reflects a broader trend in the cybersecurity sector. Just last week, Exaforce announced a $75 million Series A round led by Khosla Ventures, Mayfield Fund, and Thomvest Ventures.

In the first quarter of 2025, venture-backed cybersecurity startups raised over $2.7 billion—up 29% from the previous quarter.

Canada’s relationship with the U.S. is under pressure as new trade tariffs take effect. While public markets brace for the impact, there’s growing concern about how this could affect the Canada venture market.

Despite global challenges, 2024 was a rebound year for Canadian startups. Venture-backed companies raised $6.9 billion — a 17% jump from 2023, when only $5.9 billion was raised. It marked a return to form after a slow year, even though Canada still represented just about 2% of the global venture market.

Fewer Deals, Bigger Checks
Though the total funding increased, the number of deals fell sharply. Fewer than 700 deals closed in 2024, compared to nearly 1,000 in 2023. The higher funding total was driven by several major rounds — particularly in the artificial intelligence space:

• In July, Vancouver-based Clio secured $900 million in Series F funding at a $3 billion valuation. Its legal AI tool, Clio Duo, helps lawyers automate routine work and improve efficiency.
• In December, Toronto chip company Tenstorrent raised over $693 million in Series D funding, reaching a $2 billion valuation.
• Also in July, Toronto-based Cohere raised $500 million in Series D funding at a $5.5 billion valuation. Cohere develops AI models used in custom applications for chat and content generation.

These large investments helped Q3 and Q4 2024 each surpass $2 billion in funding.

Slower Start in 2025
The new year has started slower in terms of total dollars. In Q1 2025, Canada venture funding reached $1.6 billion across 128 deals. That’s a drop from Q4 2024’s $2.4 billion across 118 rounds — but still nearly double the amount raised in Q1 2024.

Notable Q1 deals include:

• StackAdapt, a programmatic advertising company in Toronto, raised $235 million in February.
• Cybersecurity startup Tailscale secured $160 million in Series C funding, valuing the business at $1.5 billion.

Trade War Adds New Risks
The new tariffs between Canada and the U.S. took effect after Q1 ended, so their full impact is still unclear. While hardware is the obvious target, software companies could also feel the pressure. Uncertainty often leads to cautious spending — and software budgets are usually the first to be cut.

After a solid 2024, the Canada venture market now faces fresh challenges. With the global economy still unsettled, the next few quarters will reveal whether Canadian startups can maintain momentum or will need to adjust to a tougher environment.