Welcome to Startups Weekly — your weekly recap of everything you can’t miss from the world of startups. This week, we are diving into acquisitions of small startups, the rise of two new unicorns, wearable AI devices, and VCs showing support for Kamala Harris. Let’s explore these exciting developments.
One of the significant trends in the startup world is the increasing number of mergers and acquisitions as an alternative to the IPO market. While not always the desired outcome, more startups are opting to sell themselves. Canva, a graphic design platform, recently acquired Leonardo.ai, an image creation startup powered by generative AI. This move is part of Canva’s strategy to enhance its AI capabilities. Airtable also joined the race for AI talent by acquiring Dopt, a startup specializing in AI-powered onboarding. This acquisition will help Airtable further develop its AI capabilities, particularly for its Airtable Cobuilder app creation tool.
In another acquisition, Clutch, a marketplace connecting creators with businesses, decided to sell itself to online social network Plaiced after facing challenges on the road to profitability. Additionally, Bending Spoons, known for acquiring struggling startups, purchased file transfer service WeTransfer, which abandoned its plans for an IPO due to market conditions.
On the fundraising front, Rapido, an Indian bike-taxi startup, achieved unicorn status with a $120 million funding round led by WestBridge Capital. Flo Health, a fertility-focused period tracking app, raised $200 million in a Series C round, highlighting the growing interest in women’s health tech. Harvard dropout Avi Schiffmann introduced Friend, an AI-powered device that provides constant companionship through SMS responses, raising $2.5 million in funding.
In the realm of wearable AI devices, Bee, a company founded by former Twitter employees, raised $7 million to develop an AI assistant that assists users with note-taking, reminders, and list-building. Knowde, a marketplace for chemicals and raw ingredients, secured $60 million in funding, valuing the company below its previous mark but still attracting significant investment.
VC news also made headlines this week, with prominent investors like Reid Hoffman, Vinod Khosla, and Mark Cuban publicly supporting Kamala Harris for the 2024 presidential election. The trio created VCsForKamala to rally venture capitalists around Harris’s campaign. In other news, Tiger Global saw another partner departure, while Moxxie Ventures exceeded its fundraising target for its third fund, raising $95 million.
Lastly, Applied Intuition, an autonomous vehicle software startup, closed a $300 million secondary sale, adding Fidelity Management & Research Company to its list of investors. This significant funding round underscores the growing interest in autonomous vehicle technology.
Overall, the startup ecosystem continues to evolve with acquisitions, fundraising milestones, and notable VC activities shaping the industry landscape. Stay tuned for more exciting developments in the world of startups.
