Startup Funding and Acquisitions Persist Amidst Market Adjustments
Despite current market uncertainties, tech IPOs and startup acquisitions are still happening, although valuations and deal sizes are being reevaluated. This week's news highlights a mix of acquisitions, funding rounds, and IPO adjustments.
Acquisitions and IPOs
OpenAI's potential acquisition of Cursor, the company behind the rapidly growing AI coding assistant, is reportedly off the table. Competition is heating up between Cursor and its rival, Windsurf. Datadog acquired AI-powered data observability startup Metaplane, a Y Combinator alum. Meanwhile, Indian EV startup Ather Energy reduced its IPO size and target valuation due to market conditions.
Funding Rounds Across Multiple Sectors
Several startups secured funding this week. Supabase, an open-source database startup, raised a $200 million Series D round, boosting its valuation to $2 billion. Adaptive Computer, focusing on no-code AI tools, secured a $7 million seed round. Manychat, an AI-powered business messaging platform, raised a $140 million Series B. Endor Labs, which develops tools to scan AI-generated code for vulnerabilities, landed a $93 million Series B. Noxtua, a legal AI startup, raised a $92.2 million Series B. Alpaca, a fintech API brokerage startup, secured a $52 million Series C. Cynomi, offering an AI-powered "virtual CISO" for SMBs, raised a $37 million Series B. Superpower, a health tech startup, launched publicly with a $30 million Series A. Froda, a Swedish fintech focusing on SMB debt financing, secured a $22.7 million Series B. Cluely, an AI tool designed to "cheat on everything," raised $5.3 million in seed funding. Fluent Ventures is investing $40 million in startups replicating proven business models in emerging markets.
Techstars Increases Startup Funding
Techstars recently increased its standard investment to $220,000 for startups in its three-month program, matching Y Combinator's deal structure.
