03Jul

Sequoia Leads Startup Investment Activity in June as Meta Tops Spending Charts

July 3, 2025 Amol Ajabe 2

Sequoia Leads Startup Investment Activity in June as Meta Tops Spending Charts

Sequoia stood out as the most active startup investor last month, while Meta claimed the highest-dollar investment with a $14.3 billion deal.Venture capital activity remained strong in June, with Sequoia emerging as the most active investor and Meta making headlines with the biggest investment.

Most of the top investors were familiar names, including Sequoia, Andreessen Horowitz, and Founders Fund. However, Meta joined the spotlight by leading one of the largest single investments of the year.

Sequoia Leads in Deal Volume

Sequoia ranked first among U.S. venture firms by number of deals. The firm completed 15 investments last month, including some of the largest rounds in the market. Notable deals included a $540 million Series E for cybersecurity startup Cyera and a $300 million Series E for legaltech company Harvey.

Other active investors included Y Combinator, which closed 14 deals, followed by Khosla Ventures and General Catalyst with 12 each.

Y Combinator, typically known for seed-stage investing, is increasingly active in later rounds. In June, it participated in a $125 million Series D for Gecko Robotics and an $80 million Series D for Canary Technologies.

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Top Lead Investors and Big Spenders

Andreessen Horowitz led or co-led five post-seed rounds, including a $300 million Series E for Abridge and a $131 million Series C for Decagon, making it the most active lead investor in June.

Kleiner Perkins and Founders Fund each led four deals. Kleiner’s largest was a $600 million Series F for Applied Intuition, while Founders Fund made a bold move with a $2.5 billion Series G for Anduril, pushing it into second place among the biggest spenders.

Meta’s Massive Move

Meta made headlines by investing $14.3 billion in Scale AI. The deal reportedly gives Meta a 49% stake in the company and involves the transition of Scale’s founder Alexandr Wang and several employees to Meta.

Notable Seed Activity

While high-dollar deals dominated the headlines, seed investors remained active. Rebel Fund, Y Combinator, and Alumni Ventures led in number of seed investments.

03Jul

How to Keep Your Company Team Motivated After an Exit

July 3, 2025 Amol Ajabe 2

How to Keep Your Company Team Motivated After an Exit

After selling your company, maintaining team morale is key. Here’s how to balance what the buyer wants with what your employees need.When preparing your company for a sale, it’s not just about getting the best price. It’s also about making sure the business keeps running smoothly after the deal closes. Buyers aren’t just buying your products or profits—they’re investing in your team.

If your team loses motivation after the sale, it can quickly lower the value of the deal. This risk is real, but as the founder or CEO, it’s something you can manage.

Buyers Focus on Reducing Risk

Buyers often evaluate your company based on how well the team will perform after the transition. They see key employees as essential to the success of the acquisition. To protect their investment, they may delay equity payouts for executives and technical staff.

From the buyer’s side, this makes sense—it keeps the business steady. But for your team, it can feel unfair. The people who worked hardest might wait the longest to get paid, while others could walk away with their full share.

This mismatch can lead to tension.

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Employees Want Recognition, Not Just Rewards

To your team, equity means more than money. It represents their contribution and value to the company. A recent hire who played a major role in getting the deal done may feel ignored if their equity remains locked. Long-time employees may feel they’ve earned the full reward.

It’s not just about how much people get—it’s about how fair it feels. If your team doesn’t understand how decisions are made, frustration grows, and people may start to leave.

A Clear Equity Plan Can Make the Difference

The way you set up your equity plan before the sale shapes how the team reacts afterward. For example:

No acceleration benefits long-term employees but may discourage newer ones.
Full acceleration gives everyone a payout but removes the incentive to stay.
A hybrid plan, where part of the equity vests at the exit and the rest after a change in control, often works best. It balances fairness and motivation.

But the structure alone isn’t enough. How you explain it matters more. People stay motivated when they know what to expect and see their place in the future of the company.

Keep Your Company Stable After the Sale

Buyers want a team that’s committed, not just capable. If your employees feel respected and fairly treated, they’re more likely to stick around under new ownership.

The way you handle equity and communicate with your team sends a message. It tells the buyer whether they’re acquiring a strong, stable company or one facing internal issues.

Clarity, fairness, and good planning help preserve value and show that you lead with vision—not just during the deal, but beyond it.

02Jul

Elon Musk’s xAI Raises $10 Billion as AI Competition Grows

July 2, 2025 Amol Ajabe 2

Elon Musk’s xAI Raises $10 Billion as AI Competition Grows

xAI secures $10 billion in new funding, combining debt and equity, to fuel its AI ambitions.Elon Musk’s AI startup, xAI, has raised $10 billion in a mix of debt and equity, according to a report from CNBC.

The funding includes a $5 billion strategic equity investment, arranged by Morgan Stanley. The rest came from term loans and secured notes.

This latest round follows xAI’s $6 billion Series C funding just over six months ago, which valued the company at $50 billion. Investors in that round included major firms like Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity, and Kingdom Holding Co. Another $6 billion was raised in a May 2024 Series B round, valuing the company at $24 billion.

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xAI hasn’t disclosed its current valuation after this new $10 billion raise. However, the fresh capital gives it more resources to grow Grok, its AI chatbot built using data from Musk’s social platform, X. xAI acquired X in March. At the time, xAI was reportedly valued at $80 billion, while X was valued at $33 billion.

The AI industry is growing fast, with strong competition. xAI goes head-to-head with companies like OpenAI, Anthropic, and Mistral AI. In March, OpenAI raised $40 billion, pushing its valuation to $300 billion—one of the largest private funding rounds ever. Around the same time, Anthropic was valued at $61.5 billion after securing $3.5 billion in Series E funding.

With this latest funding, xAI is firmly positioned to compete in the rapidly expanding AI space.

02Jul

California Startup Funding Hits Record High in 2025

July 2, 2025 Amol Ajabe 2

California Startup Funding Hits Record High in 2025

California continues to dominate the U.S. startup scene, drawing the majority of venture capital in the first half of 2025.For over 60 years, California has been the heart of the tech world. From semiconductors and personal computers to online search and artificial intelligence, the most influential tech companies have been born and grown in the state—especially in and around Silicon Valley.

This concentration of innovation creates a powerful network where talent, ideas, and funding collide. While it can drive up housing costs and traffic, it also fuels the creation of groundbreaking businesses and attracts major investment.

And the numbers show that California remains the top destination for startup capital. In the first half of 2025, about 68% of all U.S. startup funding went to companies based in California—a record-high share. Historically, California companies have received closer to 50% of national funding.

In dollar terms, California startups raised around $94.5 billion during this period, even more than the first half of 2021, when startup investment was at an all-time high.

One Huge Deal, But Not an Outlier

A major reason for this year’s surge is the massive $40 billion investment in OpenAI, announced in March. This deal alone represents over 40% of all California startup funding so far this year, making it the largest single startup investment round ever—four times bigger than any prior deal.

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Still, calling this year’s funding spike a one-off misses the bigger picture. California has a long track record of producing game-changing companies. Apple and Nvidia, now the two most valuable public companies, are based in the state. So are all five of the most valuable U.S. private companies: SpaceX, OpenAI, Stripe, Databricks, and Anthropic.

Other Major California Deals in 2025

Besides OpenAI, several other California-based startups have landed multibillion-dollar funding rounds this year:

Scale AI (San Francisco): Raised $14.3 billion in June from Meta, with its founder joining Meta’s AI team.
xAI: Elon Musk’s AI venture raised $10 billion through a mix of equity and debt financing.
Anduril Industries: The defense tech company secured $2.5 billion in Series G funding in June, boosting its valuation to $30.5 billion.
Thinking Machines Lab (San Francisco): Founded by former OpenAI CTO Mira Murati, the startup raised $2 billion in seed funding at a $10 billion valuation.

These massive rounds show California’s continued strength in attracting capital—especially in AI, where the region remains a global leader.

30Jun

Ultra-Unicorns Are Dominating Private Markets in 2025

June 30, 2025 Amol Ajabe 2

Ultra-Unicorns Are Dominating Private Markets in 2025

Despite a slow funding climate for early-stage startups, ultra-unicorns—private companies valued at $5 billion or more—are expanding in size, influence, and investor appeal.

Ultra-Unicorns Are Redefining the Private Market Landscape

In 2025, a small but powerful group of startups known as ultra-unicorns—private companies valued at $5 billion or more—are becoming the dominant force in the market. While many startups face tough fundraising conditions, ultra-unicorns are growing rapidly in both value and deal flow.

This exclusive club represents only 13% of private unicorns by count, but holds more than half of the total valuation—$3.5 trillion out of $6 trillion. These companies also received half of the $1 trillion in total funding raised across the unicorn landscape.

Rapid Growth in 2025

So far in 2025, 17 new ultra-unicorns have joined the ranks. Notable additions include:

Thinking Machines Lab – Raised a record-setting $2 billion seed round at a $10 billion valuation.
Glean – An AI enterprise search company.
Abridge – Specializes in AI-driven note-taking.
Colossal Biosciences – Focused on genetic engineering.
Shield AI, Harvey, Cyera, Groww, and Anysphere – Representing a wide range of industries, from defense tech to finance.

At the current pace, 2025 is set to surpass the 19 new ultra-unicorns added in 2024.

Funding Trends and Market Dynamics

Funding to ultra-unicorns peaked in 2021 at $102 billion, dropped to $41 billion in 2022, and has rebounded to nearly $79 billion so far this year.

However, two companies dominate 2025’s funding totals:

OpenAI: $40 billion led by SoftBank
Scale AI: $14.3 billion from Meta

These two investments account for 73% of this year’s total ultra-unicorn funding.

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Who Are These Companies?

Most ultra-unicorns were founded between 2011 and 2018, putting their average age between 7 and 14 years. By country:

United States leads with 101
China, India, and the United Kingdom follow with 36, 19, and 11

Valuations for many were last set in 2021 or 2022, the peak of private market pricing. However, more recent valuations show continued strength:

2024: 27 companies valued at $831 billion
2025 so far: 34 companies valued at $699 billion

Top valuations this year include OpenAI ($300B), Anthropic ($61.5B), and Safe Superintelligence ($32B).

Exits and What’s Next for Ultra-Unicorns

Nine ultra-unicorns exited in 2024 through IPOs or acquisitions. In the first half of 2025, five more have exited, including:

Chime
CoreWeave
Wiz

Despite a sluggish exit market, the ultra-unicorn cohort continues to grow across key metrics. Strong valuations and large capital raises suggest this group will remain a dominant force in the private sector.

Ultra-unicorns are proving resilient in a volatile market. While early-stage startups struggle to raise capital, these high-value companies are pulling in record funding and growing their share of the market. As we move into the second half of 2025, all signs point to continued momentum for the world’s top private tech leaders.

30Jun

How to Secure Debt Financing in a Challenging Market: 5 Proven Tips for CFOs

June 30, 2025 Amol Ajabe 2

How to Secure Debt Financing in a Challenging Market: 5 Proven Tips for CFOs

With capital harder to access and lenders more selective, business leaders must act strategically. These five tips will help you navigate a challenging market and improve your chances of securing financing.In Today’s Challenging Market, Preparation Is Everything

While many lenders still claim to be actively lending, the reality tells a more complicated story. Private credit loan volumes may be up, but those dollars are going to fewer companies — mostly top performers.

According to a recent analysis from Hamilton Lane, there’s a $1.4 trillion gap between available private equity capital and credit origination capital. Combine that with over $600 billion in maturing loans through 2028, and businesses are facing a $2 trillion funding shortfall in a challenging market. This means lenders are now far more selective than in past years.

So, what does that mean for companies not on the Fortune 500 list? There’s still a path to debt financing — but only if you’re well-prepared. Here are five key tips for CFOs looking to secure funding in today’s tight credit environment.

1. Start When You Don’t Need the Money

One of the biggest mistakes companies make in a challenging market is waiting too long. The best time to secure debt is when your business is performing well and doesn’t urgently need it. Lenders are more comfortable working with companies that are growing steadily and have financial runway.

If you’ve recently added a strong equity partner, are showing consistent growth, or are planning an acquisition — start the debt process now. Waiting until you’re under pressure limits your options and weakens your negotiating position.

2. Pick the Right Lender

Debt is a long-term relationship. Picking the wrong lender can cost you both time and money. Make sure your lender is a good fit by:

Checking References: Talk to other companies they’ve financed recently.
Understanding Their Goals: Can they support your business over the next five years?
Working with an Adviser: A knowledgeable adviser can help identify lenders aligned with your growth plan — and steer you away from dead ends.

In a challenging market, the right lender relationship can make all the difference.

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3. Be Prepared — But Keep It Simple

Different lenders will ask for different information, but there are some common basics you should always have ready:

Last two years of financial statements
Forecasts for the next three to five years
Cap table and corporate documents
A short, clear pitch deck (no more than 20 minutes) that covers your business, team, financials, and loan purpose

Avoid over-preparing with unnecessary detail. Focus instead on presenting a strong, clear case that shows how your company can repay the loan — not why it will be the next unicorn.

4. Know Your Numbers Inside Out

Be ready to explain every line of your financials — past and future. What’s driving your growth? How have recent economic or political shifts affected performance?

Show lenders exactly how this loan will be used and what growth it will unlock. Your forecasts should be realistic — not too conservative, not overly ambitious. Most importantly, prove that you can repay the loan without relying on future equity funding or refinancing.

In a challenging market, lenders care more about your fundamentals than big promises.

5. Expect a Tougher Process

Even under ideal conditions, securing debt can be a slow, unpredictable journey. You’ll hear “no” when you expected a “yes.” Offers might not match your expectations. And due diligence can drag on.

Stay focused, responsive, and professional. The more you engage proactively, the more confidence you’ll build with lenders. The process may be tough, but in a challenging market, those who prepare well and move smartly stand the best chance of securing the right deal at the right time.

27Jun

Gaming Startup Funding Drops Sharply in 2025

June 27, 2025 Amol Ajabe 2

Gaming Startup Funding Drops Sharply in 2025

Despite strong industry demand and major acquisitions, 2025 is on track to be the weakest year for gaming startup investment.2025 is proving to be a tough year for the gaming startup sector. So far, global venture funding for companies in the gaming space has reached only around $627 million. If this trend continues, it could mark the lowest annual total in years.

Funding has been steadily declining over recent quarters. As the second quarter wraps up, it looks like this may be the weakest period for gaming startup investment in a long time.

Strong Demand, Weak Funding

Despite the drop in funding, the gaming industry remains strong in terms of user engagement and spending. In 2024, over 190 million Americans played video games, and total spending on games, consoles, and accessories topped $57 billion.

Publicly traded gaming giants are also thriving. Companies like Roblox, Nintendo, and Take-Two Interactive have seen their stock prices rise in 2025, showing continued market interest and confidence in the industry.

Major Acquisitions Continue

The merger and acquisition space tells a more positive story. In March, Scopely acquired Niantic’s gaming division—the studio behind Pokémon GO—for $3.5 billion. In May, CVC Capital Partners made a $2.5 billion investment in Turkey’s Dream Games, the maker of Royal Match and Royal Kingdom. The deal involved both debt and equity, and existing venture investors exited the company.

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Few Big Rounds for Startups

While major companies are thriving, actual gaming startup funding has been limited. There have been no funding rounds of $100 million or more so far this year, a significant change from previous years.

Still, a few notable deals have taken place. Brooklyn-based Underdog Fantasy, a fantasy sports platform, raised $70 million in a Series C round led by Spark Capital—the largest gaming startup funding round so far in 2025.

Istanbul has emerged as a key hub for mobile game development. Grand Games raised $30 million in a Series A round for its animated mobile titles, while Bigger Games secured $25 million for its puzzle game, Kitchen Masters. Together, these deals highlight Turkey’s growing importance in the global gaming ecosystem.

Challenges Facing the Industry

The slow pace of gaming startup funding comes at a difficult time for workers in the industry. A recent survey from the Game Developers Conference showed that 1 in 11 game developers lost their jobs over the past year. Major companies such as Microsoft, Sony, and Electronic Arts have all implemented significant layoffs and canceled several high-profile projects.

One reason for the funding slowdown may be the flood of investment into generative AI companies. While these firms aren’t classified as part of the gaming sector, their tools are increasingly used by developers for creating content, dialogue, and visual design.

Looking Ahead

With so many skilled developers affected by layoffs, there is an opportunity for the gaming startup scene to absorb this talent. Increased investment in new ventures could help unlock fresh ideas and create jobs in a still-growing market.

While 2025 has been slow so far, the demand for games remains strong. A rebound in gaming startup funding could help bridge the gap between industry talent and new innovation.

27Jun

What Should a VC Focus On: The Founder or the Business?

June 27, 2025 Amol Ajabe 2

What Should a VC Focus On: The Founder or the Business?

Leading VCs debate whether people or ideas matter more—research shows success may depend on both.One of the most important questions in venture capital is this: Should a VC invest based on the founder (the “jockey”) or the business idea (the “horse”)?

This debate has been around since the early days of venture investing. Some of the most respected early VCs had different views. Tom Perkins of Kleiner Perkins focused on technology. Don Valentine of Sequoia Capital prioritized markets. Arthur Rock of Davis & Rock believed the team was everything.

Today, most VCs lean heavily toward a founder-first approach. In fact, 53% of early-stage VCs say the team is their top consideration, while only 10% point to the business model, and just 6% emphasize market opportunity.

On the surface, this focus makes sense. High-profile founders like Elon Musk and Mark Zuckerberg have shown how much impact a strong founder can make. That’s why many firms now say “venture is a game of jockeys, not horses.” As a result, VCs often chase charismatic founders with impressive backgrounds.

But there’s a problem: research shows this strategy doesn’t always work.

Why Founder-First Can Go Wrong

Studies tracking startups from the beginning through IPO show that the quality of the business—not just the founder—better predicts success. In fact, many VCs make consistently poor decisions by placing too much weight on founder traits.

This often leads to pattern-matching. Instead of digging into the substance of a startup, some investors focus on surface-level qualities like the founder’s education or past jobs. They look for people who remind them of previous success stories, rather than seeking out fresh, unconventional talent.

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What the Best VCs Do Differently

Top investors see the full picture. As Peter Thiel once said, the team, product, strategy, and technology are all linked—it’s never just one or the other.

Nabeel Hyatt of Spark Capital agrees. He says great VCs study the product to understand the people behind it. This approach goes deeper than resume-checking or 10-minute interviews.

That’s also how firms like Y Combinator make fast, smart decisions. Their process focuses not only on the person, but also on the clarity of the idea and its hidden brilliance. Determination and communication skills matter—but they’re part of a larger story.

By evaluating the business and the founder together, VCs get more useful data and reduce the risk of biased thinking. This leads to smarter, more grounded decisions.

The Real Answer: It’s Not One or the Other

Founder-focused investing isn’t wrong—great founders are crucial. But focusing only on personality or background misses the bigger picture.

The best VCs don’t pick between the jockey or the horse. They invest in both. Or as one investor put it, the goal is to find “centaurs”—startups where the founder and business are inseparable and equally strong.

26Jun

How AI Is Transforming Wall Street and Creating High-Value Bankers

June 26, 2025 Amol Ajabe 2

How AI Is Transforming Wall Street and Creating High-Value Bankers

AI is reshaping investment banking, boosting productivity, and raising the stakes for top financial talent.Wall Street is being transformed, and it’s not about cutting jobs — it’s about AI making top bankers even more valuable. With smarter tools and faster workflows, AI is changing how deals are made and who’s winning them.

AI Is Supercharging Banker Productivity

AI is giving investment bankers a major performance boost. By 2026, AI-powered bankers could each bring in an extra $3.5 million in revenue, according to some forecasts. This isn’t just about working faster — it’s about doing higher-value work with better tools.

As AI tools become more common in front-office roles, banks are seeing big gains in efficiency. Those who adopt early are already pulling ahead, creating a gap between tech-savvy bankers and those still using outdated processes.

A New Talent Race on Wall Street

The competition for bankers who understand and use AI is heating up. Financial firms are updating how they hire, train, and reward their teams. Bonuses are increasingly tied to results generated with help from AI tools, pushing firms to rethink their compensation strategies.

This shift is creating a new kind of financial professional — one who combines dealmaking skills with a strong grasp of technology.

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Tech-Driven Banks Take the Lead

Some investment banks are adopting AI at two to three times the rate of others. These firms are using AI for sourcing deals, analyzing data, and automating document work — and they’re closing deals faster as a result.

AI is helping these firms spot opportunities quicker, manage client relationships more effectively, and reshape how deals get done. It’s no longer just about having experience — it’s about having the right tools and using them well.

Human Skills Still Matter

Despite the rise of AI, human judgment is still essential. Banks must manage data privacy, ensure accuracy, and integrate AI thoughtfully into daily operations. Success depends on combining AI capabilities with the deep expertise that experienced bankers bring.

Training programs are evolving to teach both finance and technology. The next generation of bankers needs to be just as comfortable working with AI as they are negotiating deals.

The Future of Banking: Human + AI

The role of a banker is changing. With AI taking over routine tasks, professionals can spend more time on strategic thinking, creative deal structuring, and client trust — areas where human skills are irreplaceable.

This is not just a tech upgrade — it’s a full transformation of the industry. Banks that embrace AI will unlock new value, while those that don’t risk falling behind.

The $3.5 million banker isn’t just a symbol of growth — it’s a sign of how AI is reshaping financial services. The firms that act now will define the future of Wall Street.

26Jun

VC Interest in Sleep Startups Remains Strong

June 26, 2025 Amol Ajabe 2

VC Interest in Sleep Startups Remains Strong

Startups focused on sleep health and technology continue to attract VC funding, tackling a widespread and growing problem.Getting enough quality sleep isn’t just about feeling rested — it’s closely linked to happiness, productivity, and overall well-being. According to the National Sleep Foundation, adults with poor sleep health are four times more likely to be unhappy. Yet, over half of Americans don’t sleep enough.

This widespread issue hasn’t gone unnoticed by startups — or by VCs. In recent years, hundreds of millions of dollars in venture capital have flowed into companies focused on sleep-related products and treatments. These startups aim to improve sleep through better technology, therapeutic solutions, and wellness innovations.

Sleep as a Wellness Priority

Many of the top-funded sleep startups are part of the broader wellness movement. Investors recognize that sleep is a core part of health, and good sleep is essential for fitness, mental clarity, and disease prevention.

One of the most notable players is Oura, known for its biometric-tracking wearable ring. With $348 million raised — including a $200 million Series D — Oura helps users monitor sleep stages and oxygen levels, generating a personalized “Sleep Score.”

The Sleep Co., based in Mumbai, has raised $43 million for products like orthopedic mattresses that promote cooler, more supportive sleep. In Boston, Embr Labs has attracted over $16 million for a wearable that regulates body temperature, offering relief from heat disruptions like hot flashes.

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Tackling Sleep Apnea with Innovation

Sleep apnea — a condition that may affect nearly 1 billion people globally — is another major area drawing VC funding.

Mosanna Therapeutics recently secured $80 million in Series A funding for a nasal spray designed to treat obstructive sleep apnea. Another startup, XII Medical, raised $45 million for neuromodulation therapy to manage apnea symptoms. Meanwhile, Invicta Medical has raised at least $29.5 million for a neurostimulation system aimed at apnea treatment.

This sector is expected to grow rapidly. Global spending on sleep apnea diagnostics and treatments is projected to exceed $7 billion by next year, with consistent growth ahead.

Mixed Results, but Growing Potential

Despite the momentum, sleep startups have had a mixed track record. Brands like Purple and Casper once excited the VC world but struggled after going public. Casper eventually sold to a private equity firm, and Purple’s stock now trades under $1.

Eight Sleep, a company behind temperature-adjusting smart bed covers, raised over $160 million. However, it hasn’t announced new funding since 2021.

Still, the latest wave of startups appears more focused and better aligned with current wellness and health trends. And as long as sleep remains a key issue for millions, VCs seem likely to keep investing in the technologies promising to solve it.

25Jun

Abridge Raises $300M to Help Doctors Cut Down on Paperwork

June 25, 2025 Amol Ajabe 2

Abridge Raises $300M to Help Doctors Cut Down on Paperwork

Abridge’s note-taking technology is gaining momentum as healthcare looks for solutions to reduce physician burnout.Abridge Secures $300 Million to Ease Doctor Workloads
Abridge, a healthcare startup focused on reducing paperwork for doctors, has raised $300 million in new funding. The company is now valued at $5.3 billion, according to The Wall Street Journal.

The Series E round was led by Andreessen Horowitz, with support from Khosla Ventures. Abridge, based in Pittsburgh and San Francisco, has now raised a total of $757.5 million.

Abridge Helps Doctors Save Time on Notes
Abridge’s core product helps doctors by automatically transcribing conversations with patients. This tool reduces the time physicians spend after hours completing notes and other administrative work.

CEO and co-founder Dr. Shiv Rao says healthcare is adopting this type of technology faster than any other industry. Abridge’s system listens in on patient visits and creates detailed notes in real time, allowing doctors to focus more on care and less on paperwork.

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Other Startups Join the Push to Support Doctors
Abridge is not alone in this space. Other startups are also developing tools to help doctors manage documentation:

Nabla: Raised $70 million recently for its note-taking assistant for medical professionals, with total funding now at $114.7 million.
CodaMetrix: Specializes in medical coding using automation, with $95 million raised.
Regard: Another physician note-taking platform with over $81 million in funding.
Freed: Offers a virtual assistant for doctors and has raised $30 million.

Growing Investment in AI-Powered Healthcare Tools
Investor interest in healthcare and automation continues to grow. In 2024 alone, startups combining healthcare and automation raised $7.5 billion. This year is expected to surpass that, with $5.6 billion already invested by late June.

Abridge Leads a Growing Market
With its latest $300 million funding round, Abridge stands out as a leader in easing physician workloads. As more healthcare providers seek efficient ways to handle documentation, Abridge is well positioned to meet rising demand.

25Jun

The Rise of the Super Banker: How AI Is Transforming Financial Services

June 25, 2025 Amol Ajabe 2

The Rise of the Super Banker: How AI Is Transforming Financial Services

AI is changing the face of finance, helping top bankers become more productive, better paid, and more in demand than ever before.AI Is Boosting the Value of the Modern Banker
Artificial intelligence is changing the game on Wall Street—not by replacing jobs, but by making the best bankers more powerful than ever. AI is driving a major boost in productivity, helping high-performing bankers close deals faster and more efficiently. Estimates suggest that by 2026, a banker using AI could bring in an extra $3.5 million in revenue annually.

This shift is not just about working faster. It’s reshaping the definition of what it means to be a top banker today. Those who quickly learn to use AI tools are pulling ahead, gaining a real edge over peers. The gap is widening between bankers who embrace these tools and those who don’t.

Competition for AI-Savvy Bankers Is Heating Up
Banks are now in a race to find and reward the most tech-skilled talent. Compensation models are changing to reflect the value that AI-powered bankers bring. Bonuses are increasingly tied to results generated through AI tools, meaning pay is being aligned with output in a more direct way than ever before.

Banks are also rethinking how they manage talent. They’re not just looking for traditional skills—they want professionals who can combine financial expertise with a solid understanding of AI-driven insights.

Fast-Moving Firms Are Leading the Charge
Some forward-thinking banks are adopting AI twice as fast as others. These firms are gaining a clear advantage in areas like sourcing deals, generating content, and executing transactions. They’re using AI to streamline work, improve decision-making, and move more quickly than traditional firms.

This isn’t just about saving time. It’s about winning more deals and capturing more market share. Banks using AI effectively are breaking ahead, forcing others to keep up—or risk falling behind.

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Why Human Skills Still Matter in Banking
Despite the rise of AI, human judgment and experience remain critical. Issues like data privacy, security, and accuracy still need careful attention. Successful banks are combining AI with deep institutional knowledge to build reliable, tailored systems.

Training is also evolving. Today’s banker must be both financially skilled and tech-savvy. Teams are blending old-school expertise with new tech fluency. The most successful professionals will be those who can analyze data, manage relationships, and think strategically—all at the same time.

The Future Banker Is a Hybrid Expert
As AI handles repetitive tasks and highlights key insights, bankers will have more time to focus on what they do best—structuring creative deals, negotiating with nuance, and building long-term trust with clients. These are the human skills that machines can’t replace.

The financial world is changing fast. The firms and bankers who adapt now will shape the future of the industry. The banker of tomorrow won’t just be smarter—they’ll be supercharged by technology.

The Banker’s Role Is Being Redefined
AI is not just a tool—it’s a catalyst for change. The $3.5 million banker isn’t a fantasy; it’s a sign of what’s already happening. For investment banks, the challenge now is clear: adapt quickly or fall behind. The future belongs to those who can combine human intelligence with smart technology to lead in a new era of banking.

24Jun

Why Lead Edge Capital Sees Big Potential in Secondary Markets

June 24, 2025 Amol Ajabe 2

Why Lead Edge Capital Sees Big Potential in Secondary Markets

Lead Edge Capital shares its investment strategy and explains why it’s focused on secondary markets while holding back on AI investments—for now.Lead Edge Capital, a growth investment firm based in Santa Barbara and New York, focuses on private software and tech-enabled companies. Its strategy includes direct investments, buyouts, and deals in secondary markets, adjusting based on market shifts.

A Changing Investment Landscape

Over the last decade, private equity investment in venture-backed startups has grown, with a surge in capital deployment in 2021. Even as the market cooled, growth firms like Lead Edge continued to lead large funding rounds and provide returns through secondary markets and acquisitions.

Venture capital firms have also evolved, with many now investing in crypto, public markets, and secondaries. These changes reflect a broader shift in how investors seek liquidity and long-term gains.

Why Secondary Markets Matter

Partner Brian Neider, who joined Lead Edge in 2012, sees growing interest in secondary markets as a solution to misaligned investor expectations. In cases where early and late-stage investors disagree on a company’s future, secondary sales can provide a middle ground.

“If someone bought in at a $3 billion valuation in 2021, they’re unlikely to sell at a lower price now. But earlier investors may want to exit,” Neider explained. Secondary markets allow these differences to be resolved without stalling company progress.

There’s also an increase in limited partners selling fund stakes, and more buyers are entering the market. According to Neider, the turbulence from 2020 to 2022 left a lot of unfinished business. “That’s why secondary markets are seeing so much activity,” he said.

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Lead Edge’s Investment Criteria

Lead Edge’s latest fund—its largest—was $2 billion, announced in 2022. Since launching in 2011, the firm has raised $5 billion across six funds. It evaluates companies using a clear framework called the “Lead Edge 8,” which includes:

$10M+ in revenue
25%+ annual growth
70%+ gross margins
Profitability or breakeven
Recurring revenue
High customer retention
A broad customer base
Capital efficiency with a 1:1 burn-to-revenue ratio

The firm targets companies meeting at least six of these eight. Out of 9,000 reviewed annually, only 150–200 are seriously considered for investment.

Neider admits that very few companies meet all eight standards. “It’s tough to grow fast, be profitable, and keep costs low,” he said.

A Cautious Approach to AI

Unlike many firms, Lead Edge is not rushing into AI. Neider says customer adoption is still early and often experimental.

“You might see a company with $30 million in revenue, but that revenue may not be reliable,” he noted. Companies are testing AI tools with good intentions, but not all users stick around. Lead Edge looks for strong retention—proof that customers are committed long-term.

“There will be huge winners in AI,” Neider said, “but many others won’t last if their product doesn’t stick.”

For Lead Edge, the key is timing. They prefer to invest when tools are proven, customer usage is consistent, and revenue is dependable. As Neider put it, “The first sale is about the pitch. The next sale is about the product. We invest when customers are buying the product.”

Secondary Markets as a Strategic Focus

While other firms chase emerging trends, Lead Edge is staying grounded. Secondary markets give them a way to support liquidity, resolve cap table tensions, and find value in mature companies.

The firm believes that well-structured secondary deals will continue to play a major role in growth investing—and provide new paths to strong returns.

24Jun

Founders Can Sell a Share of Their Equity Without Stepping Away

June 24, 2025 Amol Ajabe 2

Founders Can Sell a Share of Their Equity Without Stepping Away

Secondary share sales offer startup founders a way to gain some liquidity without leaving their company or waiting for an IPO.Starting a company is exciting, but it’s also a long and uncertain journey. Founders often spend years building a business, taking on personal and financial risks—usually without seeing financial returns unless the company is sold or goes public.

But big exits are taking longer. IPOs are rare. Acquisitions can take more than a decade. Meanwhile, life doesn’t pause—mortgages, family expenses, and day-to-day costs continue, and founder salaries are often below market rates.

That’s why more founders are now exploring secondary share sales. These allow founders to sell a share of their personal stock before a full exit. It usually happens alongside a new funding round and can give founders some financial relief without stepping away from their role.

Why Secondary Share Sales Make Sense

Selling a share of personal equity doesn’t mean a founder is giving up. It’s a way to access part of the value they’ve built while staying focused on growing the company. It reduces financial pressure and allows them to continue leading with clarity and motivation.

When done right, a secondary sale is a smart move that supports both personal and business goals. But there are risks and rules to consider.

What Founders Should Know

Founders usually can’t sell shares freely. Legal agreements often include rules that limit when and how a share can be sold. Board approval is typically required, and investors may have rights to buy those shares first.

Buyers—whether new or existing investors—will also want detailed information about the company. Founders need to be careful not to disclose confidential details that could create legal or competitive issues.

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Think About Taxes

There are important tax rules around selling equity. If a founder is selling qualified small business stock or exercising options, it may trigger taxes for both the seller and the company. Rules like IRS 409A and SEC Rule 701 also apply. That’s why it’s essential to get legal and tax advice before moving forward with any share sale.

Timing and Communication Matter

Secondary sales should be planned around key milestones—like a new product launch or a strong funding round. Selling 5% to 10% of a founder’s share of equity is usually seen as reasonable. Selling much more can raise concerns among investors or employees.

Clear communication is critical. If the sale isn’t explained properly, it could send the wrong message and affect morale or investor confidence. Founders must also retain enough equity to show they’re still committed.

A Strategic Tool for Long-Term Success

Used thoughtfully, a secondary share sale is not a cash-out. It’s a way to stay in the game. Relieving financial stress can help founders focus, make better decisions, and build with a long-term vision.

Legal advisors play a key role in ensuring these deals are done correctly and align with the company’s goals.

A secondary sale isn’t a shortcut—it’s a tool for sustainability. It helps founders manage risk and keep pushing forward to build something lasting.

24Jun

Thinking Machines Secures $2B Seed Round in Historic Funding Milestone

June 24, 2025 Amol Ajabe 2

Thinking Machines Secures $2B Seed Round in Historic Funding Milestone

AI startup Thinking Machines raises a record-breaking $2 billion in seed funding at a $10 billion valuation—setting a new benchmark in early-stage investments.Thinking Machines has officially raised the largest seed funding round in history—$2 billion—marking a major moment in the world of artificial intelligence and startup financing.

Led by former OpenAI CTO Mira Murati, Thinking Machines is based in San Francisco and backed by a powerhouse team with experience from top AI firms including Meta, Google, OpenAI, and Mistral AI. The recent $2 billion funding, led by Andreessen Horowitz, values the company at $10 billion—an extraordinary figure for a seed-stage venture.

This round isn’t just large—it’s unprecedented. Previous high-profile seed investments in the U.S. have ranged from $200 million to $450 million, including:

Yuga Labs raised $450 million in 2022, known for the Bored Ape Yacht Club NFTs.
Lila Sciences, focused on AI-driven lab automation, secured $200 million in a Flagship Pioneering-backed round.
US, a crypto platform, closed over $200 million at a $4.5 billion valuation.
Chestnut Carbon obtained $200 million for its carbon credit projects in forestry.
Aptos Labs, specializing in blockchain and Web3, raised $200 million in a seed round also led by Andreessen Horowitz.

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Compared to these, Thinking Machines’ $2 billion round is in a league of its own.

What sets Thinking Machines apart isn’t just the funding—it’s the vision. Founded in 2024, the company aims to create AI systems that are more understandable, adaptable, and human-friendly. Its mission includes building multimodal systems that can work alongside people, not just for them.

Given the talent behind Thinking Machines and the growing influence of AI, investor confidence is no surprise. If the team helped shape OpenAI’s success, there’s reason to believe they can drive innovation with Thinking Machines as well.

This historic funding round reinforces one key point: Thinking Machines is poised to play a major role in the future of artificial intelligence.

23Jun

AI Is Changing More Than News—It’s Set to Transform Legal Services

June 23, 2025 Amol Ajabe 2

AI Is Changing More Than News—It’s Set to Transform Legal Services

As AI becomes a trusted source for information, it’s quickly evolving into a tool people may use to find and interact with lawyers and other professionals.A growing number of people—especially younger generations—are turning to AI tools not just for entertainment or tech updates, but for their news. According to a recent global survey, nearly 15% of Gen Z already gets daily news from tools like ChatGPT.

This shift signals more than just a change in how people consume headlines. It shows that AI is becoming a trusted source for answers. And that trust is about to reshape how people access professional services—starting with legal help.

From Search Engines to Answer Engines

Instead of using traditional search engines, more users now turn to AI assistants to ask direct, complex questions. This growing habit shows a shift in how people seek advice. A 22-year-old who gets in a car accident might skip Google entirely and type a natural question into an AI app:
“What should I do if the other driver doesn’t have insurance in Florida?”

They’re not looking for legal jargon. They want clear steps, helpful answers, and fast solutions. If the AI provides that, it becomes the first step in their legal journey.

AI as the New Front Door for Law Firms

When AI delivers answers clearly, it becomes a powerful tool for connecting users to the right services. A chatbot can suggest a law firm, link to a contact form, or even schedule a consultation—streamlining the process from question to action.

This represents a major change for the legal industry, which has traditionally relied on referrals, SEO, and local ads. AI tools don’t follow those rules. They surface answers based on how well firms structure and present their information in formats that AI can process.

Some law firms are adapting by building their own chatbots trained on legal FAQs and jurisdiction-specific information. Others are embedding AI-driven tools into their websites to improve client intake and offer faster, clearer guidance.

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The Pressure Is On for Professional Services

This isn’t just about law. The rise of AI in healthcare—where users already trust bots for symptom checking and medical advice—shows how fast consumer behavior can shift. Legal services are next.

And while some still worry about AI giving incorrect answers or showing bias, most users continue to rely on it. People already accept trade-offs for speed and convenience in other areas. They’ll do the same when it comes to legal help.

A New Role for AI: Industry-Specific Copilots

The next big opportunity is in building AI copilots tailored to specific fields. These tools will go beyond general information and provide expert-level guidance in areas like law, finance, and medicine. The best of them will be trained on verified data and built for real-world use.

For law firms, this means AI won’t just be another tool—it will be the first impression many clients get. Being included in AI results will matter more than being at the top of a Google search.

Attention Is Everything

AI isn’t replacing lawyers. But it’s capturing the attention of the people lawyers want to reach. And in any client-based business, attention is the first—and most important—step in building trust.

Firms that ignore this shift risk falling behind. Those who embrace it now will be the ones users find first, trust most, and choose when it matters.

23Jun

Active Capital Launches $28M Fund to Back Early-Stage AI Startups

June 23, 2025 Amol Ajabe 2

Active Capital Launches $28M Fund to Back Early-Stage AI Startups

The Texas-based venture firm continues to bet on AI and cloud infrastructure startups at the pre-seed stage, despite a cooling funding climate.Active Capital, a venture firm based in San Antonio, has closed a new $28 million fund to support early-stage startups focused on AI and cloud infrastructure. This marks the firm’s third fund, bringing its total assets under management to over $100 million.

Founded by Pat Matthews, an experienced entrepreneur who previously sold Webmail.us to Rackspace for $50 million, Active Capital targets the pre-seed stage. Matthews believes early capital is best provided by those who have built companies themselves, and he operates on the idea that founders value backing from peers who’ve shared similar journeys.

So far, Active Capital has invested in over 50 startups across the U.S., including ProsperOps, Teleport, Super Dispatch, ConductorOne, and Schematic. Some of these companies have been acquired, such as RemoteTeam (by Gusto) and VidGrid (by Paylocity). The firm typically leads or co-leads rounds between $500,000 and $3 million, writing checks of $500,000 to $1 million.

The latest fund arrives during a slowdown in pre-seed funding, which has dropped significantly compared to the previous year. Despite this, Matthews says the early stage remains the most critical and rewarding part of a company’s journey — where the foundation and culture are built.

According to Matthews, there’s a strong opportunity in pre-seed investing, especially for AI startups beyond major tech hubs. He’s seen firsthand how some companies raise only once at this stage and go on to thrive independently.

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Matthews points to a wave of AI-driven innovation that’s changing how software is built. From legal tech firms in Texas to modern data platforms in San Francisco, many new startups wouldn’t exist without AI. The firm is also investing in AI-powered tools for developers, cloud security, and infrastructure reshaped by machine learning.

Another trend Matthews sees is a return to lean startup thinking. Founders are more focused on profitability, efficient growth, and sustainable business models — a shift he credits in part to both market conditions and the capabilities AI brings to early-stage companies.

Though based in Texas, Active Capital invests nationwide, with a presence in cities like Austin, Kansas City, Atlanta, New York, and San Francisco. Matthews emphasizes that the firm backs founders, not locations, and sees innovation happening everywhere.

Fundraising wasn’t easy in today’s climate, but Active Capital stuck to its approach: raising directly from founders, operators, and entrepreneurial families. Matthews chose not to grow the fund size dramatically, staying committed to a strategy he believes produces better outcomes — staying small, disciplined, and focused on the pre-seed stage.

He says this consistency, along with proven returns and patient timing, helped build trust with investors. And for Matthews, the goal isn’t to scale for the sake of it — it’s to stay true to the mission of helping bold founders build the future of AI.

19Jun

Nabla Raises $70M to Expand Clinical Tools for Healthcare Professionals

June 19, 2025 Amol Ajabe 2

Nabla Raises $70M to Expand Clinical Tools for Healthcare Professionals

The Paris-based company plans to grow its AI-powered platform to support doctors, nurses, and medical teams more effectively.Nabla, a health technology company creating digital assistants for medical professionals, has raised $70 million in Series C funding. The round was led by Germany’s HV Capital, with support from Highland Europe, DST Global, Cathay Innovation, and Build Collective, founded by Tony Fadell.

Since its founding in 2018, Nabla has raised a total of $120 million. The company, based in Paris with an office in New York, did not share its latest valuation but was estimated to be worth around $180 million during its last funding round in early 2024.

What Nabla Does

Nabla builds tools that help doctors and healthcare workers save time on paperwork. Its main product is a digital assistant that automatically writes notes and medical reports. This tool is already in use across more than 130 healthcare organizations and serves over 85,000 clinicians.

According to Nabla, its assistant helps reduce the time spent on clinical documentation by more than 50%. The company says this leads to lower burnout among healthcare workers and improves patient satisfaction.

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What’s Next for Nabla

With this new funding, Nabla plans to build a broader platform that goes beyond documentation. It is developing:

A real-time coding assistant to identify billing issues during patient visits
A context-aware tool that pulls historical data and performs actions within electronic health records
Expanded features for nurses and inpatient care teams

These tools aim to improve workflow, reduce errors, and support medical staff in delivering better care.

Funding Trends

Investment in health-related technology companies like Nabla continues to grow. In the past year, nearly half of U.S. venture funding has gone to AI-focused startups, with the healthcare sector being a key area of interest. Globally, AI companies received over $59 billion in the first quarter of the year, marking a record high for the sector.

As demand increases for smart, efficient healthcare tools, Nabla is positioning itself as a major player in the evolving clinical technology landscape.

19Jun

Nuclear Energy Startup Backed by Bill Gates Raises $650M From Nvidia, HD Hyundai, and Others

June 19, 2025 Amol Ajabe 2

Nuclear Energy Startup Backed by Bill Gates Raises $650M From Nvidia, HD Hyundai, and Others

TerraPower’s latest funding round boosts its efforts to build next-generation nuclear energy solutions as demand surges from AI and data centers.TerraPower, the nuclear energy company founded by Bill Gates, has secured $650 million in fresh funding. The investment comes from Nvidia’s venture arm, HD Hyundai, and other existing backers, underscoring growing interest in nuclear energy as industries seek cleaner and more reliable power sources.

Based in Bellevue, Washington, TerraPower has now raised a total of $1.4 billion. The company is currently building a 345-megawatt nuclear power plant in Kemmerer, Wyoming, on the site of a former coal plant. Regulatory approval for the project is expected next year.

Founded in 2006 by Gates and other climate-conscious investors, TerraPower is advancing nuclear energy technology to help meet the rising power needs of modern infrastructure—especially those driven by artificial intelligence and high-performance computing.

“As AI continues to grow, nuclear energy will play a critical role in supporting the infrastructure behind it,” said Mohamed “Sid” Siddeek, vice president at NVentures, Nvidia’s investment arm. “TerraPower’s reactor designs provide a clean, sustainable solution for global energy challenges.”

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The funding comes amid a renewed push for alternative energy solutions, even as 2024 saw a slowdown in clean tech venture capital.

Other companies in the nuclear energy and fusion sector have also attracted major investment:

Commonwealth Fusion Systems in Massachusetts has raised $2 billion to develop fusion-based power.
Helion Energy, based in Everett, Washington, has secured $1 billion.
Pacific Fusion in California has raised $900 million.
Shine Technologies from Wisconsin has attracted $774.2 million.
NuScale Power in Oregon has raised nearly $470 million for its small modular reactor technology.
General Fusion, located in British Columbia, has secured $370 million.
Zap Energy, also in Everett, has raised $337.8 million for its compact fusion systems.
Nano Nuclear Energy, a New York company developing small modular and advanced reactors, has raised $229.1 million.

These investments highlight a growing belief that nuclear energy—whether fission or fusion—will be essential in delivering stable, carbon-free power for the future.

18Jun

When Strategic Warrants Turn Into Roadblocks

June 18, 2025 Amol Ajabe 2

When Strategic Warrants Turn Into Roadblocks

Three Important Lessons for Founders Navigating Strategic Partnership DealsDaniel, the CEO of a SaaS startup focused on ESG compliance automation, had just landed the biggest deal of his company’s life. After years of effort, a major global player agreed to a commercial partnership. The agreement included a side letter giving the partner a warrant — a right to future equity based on the value they would help generate. It also required a 90-day advance notice before any acquisition or new funding round.

It wasn’t a Right of First Refusal (ROFR), just a notice clause. At the time, it seemed like a small price for growth. But two years later, that clause became a serious obstacle.

Here are three critical lessons for founders:

1. Long Notice Periods Can Scare Off Buyers

Daniel’s early investors were looking for an exit after five years. Several potential acquirers showed interest — until they saw the 90-day notice requirement. Although it wasn’t a ROFR, buyers didn’t want to commit and then wait three months while another party had early access to their offer.

Worse, the clause didn’t clearly define when the 90 days began. Was it after a verbal agreement, a board vote, or a signed letter of intent (LOI)? This uncertainty alone made the company less attractive.

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2. Strategic Partners Can Limit Growth — Even Without Trying

Other large companies — not competitors, but industry players — backed off from potential partnerships. They worried that any sensitive commercial information could reach the strategic partner. Even if no formal information-sharing clause existed, the perception of bias was enough to block new opportunities.

3. A Founder’s Control Can Erode Over Time

Years after that first deal, Daniel found himself unable to make big decisions — from fundraising to acquisition talks — without looping in the strategic partner. What once seemed like a standard agreement had turned into a de facto veto power over the company’s direction.

How Founders Can Protect Their Flexibility

Founders should have an open, detailed conversation before finalizing any strategic deal. Agree on clear, short-term processes for decision-making.

For example:

Notify the partner within two business days of receiving an LOI.
Give them 14 days to submit a competing offer — not a ROFR, just a fair chance to participate.
Limit any competitive restrictions to specific markets or use cases.

Clauses meant to align incentives can become serious barriers if not carefully structured. Founders must build agreements that support long-term growth — not stall it.

18Jun

Unicorn Buildup: A Decade of Growth with Fewer Exits

June 18, 2025 Amol Ajabe 2

Unicorn Buildup: A Decade of Growth with Fewer Exits

How a Decade of Startup Growth Has Led to a Massive Private-Market BuildupOver the past 10 years, the number of unicorn startups — private companies valued at $1 billion or more — has surged. What started slowly in the early 2010s exploded in 2021, when valuations soared and startups hit the billion-dollar mark at a record pace. That year alone saw the number of unicorns triple compared to the previous year.

However, while unicorn creation skyrocketed, exits haven’t kept up. Today, the unicorn board includes nearly 1,600 companies worth a combined $6 trillion. Most haven’t raised new funding at a disclosed valuation in more than three years, highlighting a growing buildup of private companies waiting for a liquidity event.

2020 and Earlier: Strongest Exit Record

Startups that became unicorns before 2021 account for a major portion of the board’s value. These companies had more time to mature and take advantage of favorable market conditions in 2021, when many went public.

Of the 953 unicorns formed before 2021, around 46% have exited. Public offerings were three times more common than mergers or acquisitions. Still, over 470 unicorns from this period remain private, but they represent more than half of the board’s current value — roughly $3.2 trillion.

These include some of the most valuable startups in the world, such as SpaceX, Stripe, ByteDance, Shein, Databricks, and OpenAI. While OpenAI is nearing its 10-year mark with a $60 billion valuation, SpaceX has been growing for 25 years and remains one of the top-valued companies.

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2021–2022: Rapid Unicorn Buildup

The most dramatic buildup occurred in 2021 and 2022. During this period, 854 unicorns joined the board — more than half of the current total. These companies now represent $2 trillion in value.

Among them, nine rank in the top 50 most valuable startups. Leading this group is Anthropic, which joined in 2022 and is now valued at $61.5 billion.

2023 to 2025: Slower Growth, Focus on AI

Since 2023, 257 new unicorns have been added, contributing another $500 billion in value. AI-focused companies like xAI ($50 billion) and Safe Superintelligence ($32 billion) are at the top of this cohort. Despite the smaller numbers, the buildup continues, especially driven by interest in artificial intelligence.

Recent unicorn additions mirror the slower pace of 2015 to 2017, with just over 100 new companies per year.

Private-Market Buildup Continues

As of June 2025, the unicorn board is approaching 1,600 companies with nearly $6 trillion in combined value and $1 trillion in total funding. Only around 40 companies have left the board due to valuation drops or closures since 2022.

Yet, more than 60% of current unicorns haven’t raised new funding at a disclosed valuation in over three years. This signals a continued buildup of private-market value, with investors waiting for a better exit environment in a slower global economy.

17Jun

Fintech Startup Ramp Reportedly Raising $200M at $16B Valuation

June 17, 2025 Amol Ajabe 2

Fintech Startup Ramp Reportedly Raising $200M at $16B Valuation

Fintech company Ramp is reportedly in talks to raise $200 million in new funding, which would boost its valuation to around $16 billion.

Major Investors Backing Ramp

The funding round is expected to be led by Founders Fund, an early investor in the company. Other existing backers like Sands Capital and Khosla Ventures are also likely to participate.

Based in New York, Ramp has grown rapidly since its launch in 2019. Originally offering a corporate card, the fintech startup has expanded into areas like travel management, bill payments, and a new treasury product. As of January, Ramp had reportedly reached $700 million in annualized revenue.

Rapid Valuation Growth

This new round comes just months after Ramp completed a $150 million secondary share sale in March, which nearly doubled its valuation to $13 billion. If the $16 billion valuation is confirmed, it would represent another significant leap in a short period.

Ramp has so far raised $1.2 billion in equity and secured $700 million in debt funding. Its list of investors includes General Catalyst, Stripe, Citi, and Sequoia Capital.

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Competing in a Crowded Fintech Market

Ramp operates in a competitive fintech space, going head-to-head with companies like Brex, Navan, Mercury, Rho, and Mesh Payments.

The company generates most of its revenue through interchange fees on card transactions. It also earns money from bill payment fees, SaaS subscriptions, currency exchange, and affiliate partnerships linked to its travel services.

A Strong Year for Fintech

If finalized, Ramp’s upcoming round would mark another major deal in what’s shaping up to be a rebound year for the fintech sector. Just last week, digital bank Chime went public on Nasdaq, with its stock jumping 37% on its first day of trading.

17Jun

AI Autonomous Agents Lead 2025 Seed Investment Trends

June 17, 2025 Amol Ajabe 2

AI Autonomous Agents Lead 2025 Seed Investment Trends

AI startups focused on autonomous agents are attracting major seed-stage funding in 2025. Investor interest is surging as these tools move beyond support roles to handle real tasks, especially in the workplace.Earlier this week, we explored general seed investment trends. However, the sheer volume of funding for AI agents and assistants deserves a closer look.

Surge in Seed Funding for AI Agents

Startups building AI-driven agents, assistants, and companions—particularly for enterprise use—have drawn nearly $700 million in seed funding so far this year. These startups aim to build software that not only supports work but actually performs it.

Terrence Rohan, managing director at Otherwise Fund and a former Figma board member, said this trend represents a shift from traditional software tools to applications that can take over tasks. “It’s the next evolution of doing work,” he said.

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Biggest Funding Rounds in AI

Several early-stage AI companies have raised unusually large seed rounds, signaling strong investor confidence. Here are some of the top recipients:

Lila Sciences: A life sciences startup in Cambridge, MA, that uses AI to run automated lab experiments. It launched in March with a $200 million seed round led by Flagship Pioneering.
Augment: Developer of Augie, an “AI teammate” for shipping and logistics workers.
Yutori: Building an “AI chief-of-staff” for general workplace use.

Other startups are developing tools to support the AI agent ecosystem. For example:

Jozu: Raised $4 million to build infrastructure for managing AI models and agents.
Phonic: Secured $4 million to develop a platform for creating and testing voice-based AI

Where AI Works Best

According to Rohan, AI startups with a focus on clear, logic-based tasks—like coding or legal research—are likely to succeed early. These areas offer structured data and well-defined rules, which make them ideal for automation.

However, not all tasks are purely logical. Many decisions blend logic with subjective judgment, which can challenge current AI systems. Still, that hasn’t slowed the momentum, as more companies test how far these tools can go.

17Jun

PostHog Raises $70M in Series D Led by Stripe After a Simple Tweet

June 17, 2025 Amol Ajabe 2

PostHog Raises $70M in Series D Led by Stripe After a Simple Tweet

PostHog, a developer-focused platform for customer data and product analytics, has raised $70 million in a Series D funding round. The round was led by payments giant Stripe, pushing PostHog’s valuation to $920 million.Other investors included Y Combinator, GV, and Formus Capital. This latest raise brings PostHog’s total funding to $107 million since its launch in 2020.

From Analytics Tool to All-in-One Developer Platform

PostHog started as a simple product analytics tool. Today, it’s evolved into a complete platform designed to give companies full control over customer data. Its open-source model lets developers access and manage data without relying on third-party integrations.

Co-founders James Hawkins and Tim Glaser launched PostHog during Y Combinator’s Winter 2020 batch. For the first 18 months, they focused solely on building open-source tools before shifting toward revenue.

Now, the platform offers 14 integrated tools that help product and engineering teams better understand and support their users. Hawkins refers to this as providing “customer infrastructure” — meaning all customer-related tools are built into one unified system.

A Tweet That Sparked a Deal

What makes this funding round unique isn’t just the amount — it’s how it started.

In November 2023, Stripe CEO Patrick Collison unexpectedly tweeted praise about PostHog’s website. That tweet opened the door for a meeting between the teams. According to Hawkins, the conversation quickly turned into something more.

Stripe later confirmed its investment, although it declined to share further details.

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AI-Powered Tools and Continued Growth

PostHog is also tapping into AI. Its new open beta platform, Max AI, is designed to automate many of its tools — making it easier for developers to manage large volumes of data and accelerate product development.

The company currently serves customers like Y Combinator, Airbus, 1Password, Eleven Labs, and Mistral AI. Although not yet profitable, PostHog has seen consistent revenue growth, with annual recurring revenue in the tens of millions and tripling year over year.

The Bigger Vision

Hawkins says PostHog aims to become the go-to platform for anything involving customer data — from sales and marketing to support. The goal is to offer a complete stack and automate it all using AI.

With around 80 employees and a fully remote team, PostHog continues to expand its offerings while staying focused on developers. Its modular tools and simple pricing have helped it stand out in a crowded market.

Stripe’s Growing Investment Strategy

Stripe, now valued at over $91 billion, has been actively investing in high-potential startups. Along with PostHog, it recently joined Ramp’s $150 million secondary share sale and acquired crypto wallet provider Privy.

16Jun

Seed Trends Reveal the Future: Longer Lives, Less Waste, Stronger Defense, and More Satellites

June 16, 2025 Amol Ajabe 2

Seed Trends Reveal the Future: Longer Lives, Less Waste, Stronger Defense, and More Satellites

Each year, reviewing hundreds of early-stage investments helps us understand where innovation is headed. This year, seed trends are pointing to a future shaped by longer lifespans, improved waste solutions, stronger defense systems, and rapid growth in space technology.Four key areas gaining traction among seed-stage startups in 2025. These trends reflect the challenges and ambitions shaping tomorrow’s world—and the kinds of companies investors believe are worth betting on.

1. Longevity: Extending Lifespan and Health

Startups are tackling aging with cutting-edge solutions. From ultrasound-based Alzheimer’s treatments to gene therapies and regenerative medicine, many are focused on helping people live longer, healthier lives.

Some companies are even exploring cryopreservation—offering the option to freeze the body or brain after death, in hopes of future revival. These efforts show how seed trends are leaning into life sciences and advanced health tech with long-term impact in mind.

2. Defense Tech: Rapid Growth and Major Backing

Defense technology is another major area of investment. This year, several seed-stage companies secured large funding rounds to develop high-tech tools for national security.

One notable example is Amca, a California-based aerospace and defense startup that raised $76.5 million. Another, Union Technologies in Texas, raised $50 million to focus on fast, tech-driven manufacturing for defense applications. These deals show that seed trends are increasingly driven by national and global security concerns.

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3. Recycling and Waste Reduction: A Global Focus

Although cleantech funding overall is slower this year, seed-stage deals in recycling and waste management are still active—especially outside the U.S.

Startups in Europe, Canada, and the U.K. are working on innovative ways to reduce food waste, treat wastewater, and recycle plastics. U.S. companies like OnePlanet Solar Recycling and MacroCycle are also making strides, focusing on sustainable solutions for solar panel and textile waste. This trend highlights a growing global interest in environmental responsibility.

4. Spacetech: Expanding Beyond Earth

Space technology remains a fast-moving sector. Since 2021, spacetech startups have raised over $35 billion, and early-stage deals continue to climb.

While major headlines tend to focus on established companies, many seed-funded startups are working on satellite systems, launch technology, and advanced propulsion. This shows that seed trends in spacetech are supporting both long-term exploration and practical applications in Earth’s orbit.

High Expertise, High Ambition

What these areas have in common is their complexity. Launching a startup in biotech, defense, recycling, or spacetech typically requires deep technical expertise and significant resources.

This marks a shift from earlier startup eras, when some of the biggest companies began in college dorm rooms. Today’s seed trends show that investors are backing ambitious, expert-led teams tackling serious global problems—from aging and national defense to environmental protection and space.

16Jun

Want to Keep High-Performers? Use Incentive Compensation Beyond Just Sales

June 16, 2025 Amol Ajabe 2

Want to Keep High-Performers? Use Incentive Compensation Beyond Just Sales

As businesses face rising costs, economic uncertainty, and rapid changes driven by AI, keeping high-performers motivated and engaged is more important than ever. Traditional salary models alone may no longer be enough to attract and retain top talent. That’s why more companies are turning to performance-based compensation—and not just for sales teams.According to the 2025 State of Incentive Compensation Management Report, 72% of organizations plan to extend incentive compensation to departments beyond sales. It’s a smart shift that aligns pay with results and encourages a culture of accountability, innovation, and achievement across the business.

Here’s how different teams outside of sales can benefit from customized incentive plans:

1. Finance and Operations

Finance and operations play a critical role in company performance. Rewarding these teams for accurate budget forecasts, cost control, and financial planning can increase ownership and sharpen focus on efficiency. For example, tying bonuses to forecast accuracy or operational savings can push teams to go beyond the basics.

2. HR and Talent Acquisition

High-performing HR teams directly impact company culture and growth. Incentives tied to faster hiring times, improved retention, or higher employee satisfaction can motivate HR professionals to find and keep top talent. Make sure to balance quantity with quality—using metrics like candidate experience ensures high-performers are brought in, not just more people.

3. Customer Success

Customer success teams are no longer just about retention—they’re key to driving revenue growth. Linking compensation to metrics like net revenue retention, customer satisfaction scores, or account expansion encourages these teams to build long-term value. This keeps them focused on what matters most: happy, loyal customers.

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4. Marketing and Demand Generation

Marketing’s impact on revenue is often hard to measure. But by rewarding teams based on qualified leads, pipeline growth, or marketing-sourced revenue, businesses can better connect marketing efforts to sales results. Incentives create alignment and drive results that support the company’s growth goals.

5. Product and Engineering

These teams fuel innovation. Tie rewards to successful product launches, meeting deadlines, reducing system downtime, or other performance indicators. For instance, bonuses could be linked to launching a product on time and within budget, helping to grow market share and retain users. This approach ensures product and engineering teams are directly contributing to business success.

Motivating High-Performers Across the Business

Expanding incentive compensation beyond sales can unlock untapped potential across all departments. But for it to work, transparency is crucial. Roll out changes gradually, keep communication open, and ask for feedback. Done right, a thoughtful incentive program can help businesses keep their high-performers, drive stronger results, and build a more motivated, high-achieving workforce.

14Jun

Chime Stock Surges on First Day of Trading

June 14, 2025 Amol Ajabe 2

Chime Stock Surges on First Day of Trading

Chime’s IPO Marks Strong Debut as Fintech Market Heats UpChime, the online banking company, saw its shares jump 37% during its first day of trading on the Nasdaq Thursday. The stock closed at $37, up from its IPO price of $27.

The San Francisco-based company raised about $700 million through the IPO, while existing investors sold an additional $165 million worth of shares. The offering exceeded expectations, with shares priced above the original $24 to $26 range.

This strong debut puts Chime in line with other recent standout IPOs. On the same day, Voyager Technologies, a space and defense startup, also launched its IPO with high demand. Just a week earlier, Circle, a stablecoin provider, enjoyed a similar surge in early trading.

Unlike many startups, Chime is already profitable. In the first quarter of the year, the company posted a net income of $12.9 million. Revenue for the quarter reached $519 million, marking a 33% increase from the previous year.

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Founded in 2012, Chime raised $2.3 billion in funding between 2013 and 2021 from major investors like DST Global, Crosslink Capital, and Menlo Ventures.

Fintech IPO Activity on the Rise

The broader IPO market is showing signs of renewed energy, with fintech companies like Chime leading the way.

Another fintech firm to watch is Klarna, the Swedish buy-now, pay-later provider. Klarna had filed to go public earlier this year but delayed due to market uncertainty. With conditions improving, it may move forward with its IPO soon.

Chime’s successful debut could signal growing investor confidence in fintech and encourage more companies to enter the market in the coming months.

13Jun

Startups Fuel the Rise of Nonalcoholic Drinks

June 13, 2025 Amol Ajabe 2

Startups Fuel the Rise of Nonalcoholic Drinks

As demand grows for zero-proof options, startup brands are leading innovation in the nonalcoholic beverage market.Summer is here, and while people are still reaching for a cold drink, more are choosing options without alcohol. Sales data shows this shift is more than a trend—it’s a lasting change, and startups are playing a big role in making it happen.

According to industry group IWSR, global sales of nonalcoholic beer rose 9% by volume last year. The group predicts that by 2025, these alcohol-free brews will become the second-largest beer category, surpassing ale.

This shift isn’t limited to beer. Grocery stores now stock alcohol-free wines, spirits, and mixers. Bars feature full mocktail menus. In places like Napa Valley, visitors can even book alcohol-free wine tasting experiences.

Startups Driving the Booze-Free Boom

The surge in nonalcoholic beverage sales has opened doors for startup companies. In the past few years, investors have poured hundreds of millions of dollars into startups making alcohol-free beer, wine, cocktails, and spirits.

One standout is Athletic Brewing, a Connecticut-based startup known for its craft-style nonalcoholic beers. Sold in stores, bars, and restaurants across the U.S., their offerings have become so popular that they reportedly outsell some regular beers at Whole Foods.

Backed by major investors like General Atlantic and Keurig Dr Pepper, Athletic Brewing has raised close to $250 million and was valued at around $800 million last year.

These startups are not just targeting people who avoid alcohol entirely. Many customers are casual drinkers who want the flavor and experience without the downsides—like hangovers, drowsiness, or the inability to drive.

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Quality and Experience Matter

Modern alcohol-free drinks aren’t bland substitutes. Today’s startup brands focus on flavor, quality, and premium ingredients. Their products are often priced similarly to traditional alcoholic beverages.

Lyre’s Spirit Co, another fast-growing startup, produces alcohol-free spirits and ready-to-drink mocktails. The company has raised at least $68 million and promotes its use of high-quality extracts, distillates, and natural ingredients to deliver a full-flavor experience. A bottle of its gin alternative sells for around $38—on par with alcoholic versions.

In the wine space, French Bloom, a Paris-based startup, offers sparkling wines made from dealcoholized chardonnay and pinot noir. Co-founded by a former Michelin Guide director and a model, the brand markets itself for celebrations and upscale events.

Why the Trend Is Sticking

Despite a cultural focus on party scenes—like chart-topping songs about getting tipsy—nonalcoholic drinks are finding their place. The appeal of a good drink often lies in the moment: a barbecue, a beach day, or dinner with friends. That experience doesn’t need alcohol to be enjoyable.

More people are also choosing zero-proof options so they can enjoy social events and still wake up clear-headed for work or other responsibilities.

Looking Ahead

Startups have transformed the nonalcoholic beverage market, making it more appealing and accessible than ever. With continued investment and growing consumer demand, the space is set for even more innovation in the years to come.

13Jun

How Angel Investors Are Powering Startup Growth in Emerging Markets

June 13, 2025 Amol Ajabe 2

How Angel Investors Are Powering Startup Growth in Emerging Markets

Syndicates are helping angel investors support early-stage startups and build stronger local ecosystems.Angel investors are playing a growing role in supporting startups, especially in emerging markets. By joining syndicates—groups that pool money and knowledge—these investors help young startups grow while making investing easier for newcomers.

As an active angel investor for the past decade, I’ve supported startups around the world and in Kazakhstan, my home country. Here’s how angel investors and syndicates are changing startup ecosystems.

Why Angel Investors Matter for Startups

The global startup market took a hit in 2023 when venture capital funding dropped to $285 billion—the lowest since 2017. While full recovery hasn’t happened yet, the first quarter of 2025 showed signs of improvement with $113 billion raised, including a $40 billion deal for OpenAI.

Early-stage startups were hardest hit by the downturn. But in emerging markets, local angel investors helped keep the ecosystem alive. In Turkey, nearly 60% of venture funding in 2023 came from domestic investors. In Kazakhstan, local backers took part in 80% of deals, with more than half going to very early-stage startups.

Angel investors typically provide smaller checks—starting around $10,000—but they fund startups when few others will. In Kazakhstan, business angels made up 50% of all venture deals in 2023, outpacing traditional venture funds.

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The Power of Angel Syndicates

Most angel investors are experienced entrepreneurs who invest part-time. But many don’t have the time or expertise to vet deals on their own. Syndicates solve this problem. These groups are led by experienced investors who find promising startups and invite others to join with a minimum investment.

At MA7 Angels Club, the syndicate I launched in Kazakhstan in 2024, we require a minimum check of $10,000. As the lead, I personally evaluate each startup and invest my own money—between 30% to 50% per deal. This approach builds trust and attracts more angel investors.

One well-known example is Israel’s OurCrowd. Despite tough market conditions in 2022, it remained one of the top investors in the country and has facilitated over $250 million in startup funding since it launched a decade ago.

The COVID-19 pandemic also sped up the rise of syndicates. With digital tools making it easier to invest, angel investors are now joining syndicates faster than ever.

What Makes a Strong Syndicate?

In Central Asia, syndicates like MA7 Angels Club are growing quickly. In just six months, our group grew to 100 members and invested over $2 million in startups like Pioneers, Zeely, Zibra.AI, and Hero’s Journey. Here are three key lessons:

Trusted leadership: Every deal is carefully reviewed and led by someone the group trusts.
Personal commitment: When the lead investor puts in significant personal funds, it boosts confidence.
Easy investing: We use platforms like Sydecar to simplify the process. Investors sign up once and can join future deals without extra steps.

The Future of Angel Investing

Angel investors aren’t a complete solution to funding challenges in emerging markets, but they are a vital part of the startup journey. By supporting early-stage companies and building syndicates, angel investors help create more opportunities and drive faster ecosystem growth.

13Jun

Automattic Acquires Relationship Management Startup Clay

June 13, 2025 Amol Ajabe 2

Automattic Acquires Relationship Management Startup Clay

The WordPress parent company continues its expansion by bringing on New York-based startup Clay.Automattic, the company behind WordPress, has acquired relationship management startup Clay for an undisclosed amount.

Founded in 2019 by Matthew Achariam and Zachary Hamed, the New York-based startup created a tool designed to help users manage their personal and professional relationships. Often described as a personal CRM, Clay automatically organizes contacts and makes it easier to search through a user’s network.

Clay raised $8 million in a 2021 seed funding round, with support from investors including Forerunner Ventures, General Catalyst, Slow Ventures, Caffeinated Capital, and Notation Capital.

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Automattic said the startup’s technology aligns with its mission to improve online experiences. According to the company, Clay stands out for its AI-powered insights, smart search features, and tools for taking quick notes—features aimed at simplifying how people build and manage relationships.

With this acquisition, Clay’s co-founders will join Automattic’s Other Bets division, which includes other startup ventures like Beeper and Gravatar.

Automattic has made over two dozen acquisitions in recent years, strengthening its ecosystem through innovative startup integrations.

Meanwhile, mergers and acquisitions across the tech industry appear to be gaining momentum. On June 11, Stripe announced its acquisition of crypto wallet startup Privy, which had secured more than $40 million in funding since its launch four years ago.

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