Highlights of Startup Stories This Week
Let’s begin with some challenging news before shifting to the brighter side. However, there’s plenty of good news to celebrate too.
Setbacks and Challenges:
Swedish unicorn Northvolt, a key player in Europe’s battery manufacturing ambitions, has filed for bankruptcy in the U.S., marking a setback in Europe’s hopes of leading the battery industry.
Positive Momentum:
German fintech unicorn N26 posted its first profitable quarter, generating €2.8 million ($2.9 million) in net operating income during Q3 2024, signaling progress in achieving long-term financial stability.
Major Mergers & Acquisitions:
Cybersecurity giant Wiz acquired Dazz, a specialist in security remediation and risk management, in a cash-and-stock deal valued at $450 million—slightly surpassing Dazz’s $400 million post-money valuation. Additionally, cloud company Snowflake announced its acquisition of data pipeline management company Datavolo for an undisclosed sum as part of its Q3 earnings.
Noteworthy Fundraising Events This Week
Several significant funding rounds have been announced, highlighting startups addressing major challenges and driving innovation forward.
Quick-Commerce Boom:
Indian startup Zepto secured $350 million in a third funding round within just six months, positioning itself for a planned IPO next year as quick-commerce continues to gain traction.
Big Investments in Innovation:
Finnish smart ring maker Oura raised $75 million in a Series D funding round led by glucose device maker Dexcom, increasing its valuation to over $5 billion.
New Unicorn Status:
Lighthouse, a data analytics platform for the hospitality industry, raised a $370 million Series C round led by KKR, reaching a $1 billion valuation.
Fusion Technology:
U.K.-based Tokamak Energy secured $125 million to advance its fusion reactor design, a key step toward achieving commercial nuclear fusion.
Global Expansion:
Portuguese drone startup Tekever raised €70 million ($74 million) in a Series B round led by Baillie Gifford & Co. and NATO Innovation Fund to expand into U.S. markets.
AI Growth:
Lightning AI, which adapts PyTorch Lightning for enterprise AI needs, secured $50 million from Cisco Investments, J.P. Morgan, Nvidia, and K5 Global, aiming to broaden its platform and customer base.
Cancer Research & Diagnostics:
OneCell Diagnostics raised $16 million in an oversubscribed Series A round to support its AI-driven cancer recurrence prevention efforts, aiming to expand into the U.S. and grow in India.
Key Developments in VC & Fund News
Blue Bear Fund:
Blue Bear closed a $160 million third fund, focusing on AI startups in climate, energy, and industrial sectors, continuing its software-driven investment thesis.
Bling Capital:
Bling Capital, led by former Khosla Ventures general partner Ben Ling, raised $270 million for its fourth fund, with half earmarked for follow-on investments.
Final Insights
Defense tech startups raised nearly $3 billion in 2024, surpassing the $2.6 billion record set in 2022. The surge in funding is driven by 85 deals so far, compared to 113 in 2022, reflecting growing interest in national security and defense innovation.
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