Startups Weekly provides a recap of notable events and developments in the startup sector, particularly for those unable to keep up with every update. This week highlighted that amidst uncertain economic climates, certain startups, particularly those related to security and sovereignty, are successfully securing substantial funding.
### Noteworthy Startup Developments This Week
While uncertainty often deters investment, the security sector, both online and offline, continues to attract funding.
In a countertrend, AI startups garnered $110 billion in 2024, marking a 62% increase from the previous year, despite an overall 12% decline in startup funding. European startups specializing in defense, security, and resilience technologies raised $5.2 billion, amounting to 10% of all venture capital funding in the region.
European AI developments drew attention, with Mistral AI, a notable French company, gaining prominence at the Paris AI Summit. Their AI assistant, Le Chat, became the most downloaded iOS app in France.
In mergers and acquisitions within the security sector, Data, a firm specializing in security compliance, acquired software security review startup SafeBase for $250 million. CyberArk, focused on identity security, purchased Zilla Security for $165 million, with an additional $10 million contingent on performance milestones.
### Significant Venture Capital and Funding News This Week
This week saw a variety of startups announcing new funding rounds, and Founders Fund is expected to have more capital available for investment soon.
Zeta, a Bengaluru-based banking software provider, achieved a valuation of $2 billion after securing $50 million from a strategic investor. The quantum computing startup QuEra, backed by Google, raised $230 million through a convertible note, significantly increasing its previous valuation.
Chestnut Carbon, a startup dedicated to carbon removal, closed a $160 million Series B round to convert old farmland into forests. Australian health tech company Harrison.ai obtained $112 million in a Series C round for its AI-driven medical diagnostic tools, Annalise.ai and Franklin.ai.
Candid Health, an American company focusing on medical billing solutions, secured a $52.5 million Series C round just six months after raising $29 million. Latent Labs, an AI biotech startup, emerged from stealth mode with $50 million in funding.
Voyantis, an Israeli startup, raised $41 million to use AI for assessing customer lifetime value for companies. Furthermore, Founders Fund, backed by Peter Thiel, is reportedly nearing the close of another $3 billion fund, marking its third growth fund.
### Additional Insights
Notably, Sheel Mohnot, co-founder and general partner at Better Tomorrow Ventures, was interviewed by Mary Ann Azevedo. Mohnot, with a significant social media following, discussed his views on AI and fintech, expressing continued enthusiasm for fintech innovations, which remain a strong area of focus.
