**Clay**, the AI sales automation startup, has officially closed a **$100 million Series C funding round** at a staggering **$3.1 billion valuation**, led by **CapitalG**. This announcement confirms earlier reports by TechCrunch in June.

![Clay team photo](https://techcrunch.com/wp-content/uploads/2025/05/clay-retreat-group-photos-2.jpg?w=1024)
*Image Credits: Luis Nieto Dickens*

### Funding Journey
- This latest round follows a **$1.25 billion Series B** just six months prior and a **$1.5 billion Sequoia-led tender offer** a few months ago, enabling employees to sell some shares.
- Total funding now stands at **$204 million**, with participation from existing investors like **Meritech Capital, Sequoia Capital, First Round Capital, BoxGroup, and Boldstart**, plus new backer **Sapphire Ventures**.

### What Clay Does
Clay provides **AI-powered tools** for salespeople and marketers, boasting clients such as **OpenAI, Anthropic, Canva, Intercom, and Rippling**. The 8-year-old startup is on a rapid growth trajectory, with CEO **Kareem Amin** projecting **$100 million in revenue by year-end**, tripling last year's figures.

The AI sales automation startup raised fresh funds, led by CapitalG, just months after its last round.

Clay's AI Sales Automation Soars: $100M Series C at $3.1B Valuation

# The Rise and Fall of Flip: A Cautionary Tale in Tech

Flip, a California-based tech startup, recently shut down after achieving a **$1 billion valuation** in 2024. The company, operating under the name Humans Inc. in El Segundo, gained fame for its e-commerce app that mimicked TikTok's short-form video style, allowing users to shop, watch videos, and earn rewards.

![Flip App Image](https://s.hdnux.com/photos/01/54/32/47/28420593/5/ratio3x2_960.webp)
*File: Young people use smartphones in a circle. In recent years, short-form video has merged with e-commerce on some popular apps. Xavier Lorenzo/Getty Images*

## How Flip Operated and Its Sudden Demise

The app blended features from major platforms: a **TikTok-style video feed**, Amazon-like shopping carts, and a rewards system where users and creators earned money and discounts for engagement. At its peak, Flip boasted **16.5 million users**, **5 billion video views**, **$13.4 million paid to creators**, and **$375 million in sales for brands**.

However, the company's website was scrubbed clean after August 16, 2025, replaced with a message titled "Thank you for making Flip real," announcing the shutdown. Its social media accounts and app listings vanished, leaving many questions unanswered.

## The Underlying Issues

Flip's business model relied heavily on **discounting products**, which raised concerns as early as 2023. Despite a **$144 million funding round** in April 2024 that cemented its unicorn status, the company couldn't sustain operations. The competitive landscape, dominated by giants like TikTok and Instagram, proved too challenging for this upstart.

Employees have since updated their LinkedIn profiles with "#OpenToWork," highlighting the human impact of the shutdown. This event underscores the difficulties faced by startups trying to disrupt established social video and e-commerce markets.

Flip, a California tech startup that won a $1 billion valuation in 2024 for its e-commerce-focused and TikTok-style app, is shutting down.

The Shocking Shutdown of a $1 Billion TikTok Rival: What Went Wrong with Flip?

# The Brief Life of the Fisker Foundation

Henrik Fisker, founder of the failed EV startup **Fisker Inc.**, and his wife Geeta quietly dissolved their private charitable foundation in late 2024, just months after the company declared bankruptcy. Established in late 2021, the **Geeta & Henrik Fisker Foundation** was intended to incubate innovation in healthcare, education, sustainability, mobility, and other causes supporting the planet and improving lives.

## A Foundation Built on Shaky Ground

IRS filings reveal that the foundation received an initial donation of **229,000 shares of Fisker Inc. stock** in December 2021, valued at approximately **$4 million** at the time. The couple also contributed around **$5,000 in cash** that year. However, by the time the foundation was publicly announced in February 2022, the stock's value had already plummeted to about **$2.7 million**.

Over its three-year existence, the foundation made only around **$100,000 in grants**, with minimal cash contributions from the Fiskers. In its final fiscal year, it issued just one grant of **$1,988** to a JP Morgan Charitable Gift Fund before filing its 'final return' with the IRS.

## The Broader Context of EV Startup Optimism

This story exemplifies the **wide-eyed optimism** that fueled the electric vehicle startup boom in the 2020s, particularly through **SPAC mergers**. For comparison, Rivian—which went public via a traditional IPO—established its own foundation with 1% of company equity, once worth over **$600 million**. Despite fluctuations, the Rivian Foundation remains active, having distributed millions in grants.

In contrast, the Fisker Foundation's assets dwindled as Fisker Inc.'s stock price collapsed amid production struggles and flawed EV releases. The foundation's limited scope and eventual closure highlight the risks of tying philanthropy to volatile startup success.

## Other Philanthropic Efforts

The Fiskers had additional charitable activities, including a **$1.9 million stock donation** to a donor-advised fund (DAF) in December 2021 from their personal trust. DAFs allow for tax deductions and private grant-making, but their lack of transparency makes it impossible to track the ultimate use of funds, especially as stock values decline.

This case underscores how the fortunes of startups can directly impact associated philanthropic initiatives, leaving good intentions unfulfilled.

The brief existence of the Fiskers' foundation is another example of how the boom of electric vehicle startups in the 2020s helped fuel a rush of wide-eyed optimism.

The Rise and Fall of Fisker's Charitable Dream: How EV Startup Bankruptcy Buried a $4M Foundation

## The Painful Reality of Sending Money Home

Khalid Ashmawy recalls his first experience wiring money while studying in Europe. After receiving his monthly stipend in Stuttgart, he wanted to send part of it to his family in Cairo. The process was slow and expensive—a $400 transfer could cost $40 in fees and take three business days to arrive.

Years later, while working at **Microsoft** and **Uber** in the U.S., and even after founding a startup, the issue persisted. This ongoing frustration inspired Ashmawy to launch **Munify**, a cross-border neobank designed to provide Egyptians abroad with a faster, cheaper way to send money home, and offer residents in Egypt access to U.S. banking services.

## Joining Y Combinator and Securing Funding

Earlier this year, Munify was accepted into **Y Combinator's Summer 2025 batch**, standing out as a rare non-U.S. entrant and one of the few without a core AI focus in a class dominated by generative AI startups. The company also raised **$3 million in seed funding** from Y Combinator and other regional investors, including BYLD and DCG.

Ashmawy explained, "Banking wasn't built for people like me. It's very costly, takes a long time, and is fragmented. It's a problem I have personally experienced and one that resonates with a lot of people who want to send money back home quickly and efficiently."

## From Egypt to Global Tech Hubs

Growing up in Egypt, Ashmawy developed a passion for software and computer science. A scholarship took him to Europe, where he earned two master's degrees in Germany and Switzerland. He then spent seven years as an engineer and team leader at Microsoft and Uber, gaining insights into disruptive technologies and startups.

In 2019, he left Uber to launch **Huspy**, a proptech platform focused on mortgages in the Middle East, backed by Founders Fund, and served as its chief technology officer until 2022. After leaving Huspy, he reflected on his immigrant journey, and the remittance problem came back into focus.

## The Growing Remittance Market

Egypt is one of the world's largest remittance markets, receiving nearly **$30 billion in inflows annually**. While traditional options like bank wires, Western Union, and MoneyGram dominate, Munify aims to be a top choice among digital banks offering cheaper and faster transfers. Similar platforms, such as Nigeria's **LemFi** and India's **Aspora**, are already gaining traction in other markets.

![Khalid Ashmawy](https://s.yimg.com/ny/api/res/1.2/.1qm5FYumFa3T5t9ndRfgw--/YXBwaWQ9aGlnaGxhbmRlcjt3PTY0MDtoPTQyNztjZj13ZWJw/https://media.zenfs.com/en/techcrunch_finance_785/6ecb9e03d05cb74027785a6f6e2e88ed)
*Image Credits: Munify*

Khalid Ashmawy found it hard to send money home while studying in Europe. Now, he’s launched a startup to help other Egyptians with the same problem.

From Microsoft to Munify: How a Frustrated Expat Raised $3M to Revolutionize Remittances for Egyptians Abroad

## Massachusetts Clean Energy Center Launches New Grant Programs

While the federal government is making significant cuts to climate-tech subsidies, the Massachusetts Clean Energy Center (MassCEC) is taking action to bridge the gap. The state agency has recently opened applications for two innovative grant programs designed to **boost the clean-tech sector** and encourage startups to remain and expand in Massachusetts.

### Climatetech Testing and Demonstration Assets Program (TDA)

Funded with **$20 million annually** from the state's 2024 economic development legislation, this program aims to subsidize equipment purchases for organizations that support clean-tech startups. It focuses on enhancing testing and demonstration capabilities, which are crucial for innovation and growth in this high-potential industry.

### CriticalMass Program

This initiative provides **$3 million per year** in grants and additional support to startups. It is tailored to help early-stage companies overcome financial hurdles and accelerate their development, making Massachusetts a more attractive hub for entrepreneurial ventures in the climate-tech space.

Although these state funds are modest compared to federal losses—for instance, a recent federal bill eliminated a solar program that would have sent **$156 million to Massachusetts**—advocates believe that MassCEC's efforts will significantly enhance the state's appeal to fast-growing startups. By fostering a supportive environment, these programs could play a key role in driving **economic growth and sustainability** in the region.

The state agency is accepting applications for new grant programs aimed at stoking the state’s climate-tech sector.

Massachusetts Steps Up with $23M in Climate-Tech Grants as Federal Support Fades

# The Sharp Decline in Korean Startup Funding

South Korea's startup community is grappling with its most severe funding squeeze in over a decade, as venture capital (VC) firms pull back from new investments. Cash-strapped founders are sounding the alarm, warning that these fundraising challenges could lead to the collapse of the country's entire startup ecosystem.

According to the [Korean Venture Capital Association](https://www.kedglobal.com/venture-capital/newsView/ked202012150011) (KVCA), one in five registered venture firms made no investments in the first half of this year. Out of 355 licensed VC firms in the country, approximately 17%—or 61 firms—reported zero investments in the first six months. This marks a significant increase from 43 in all of 2024, 41 in 2023, and 32 in 2022.

Analysts point to a vicious cycle driven by the scarcity of initial public offerings (IPOs) and mergers and acquisitions (M&As), which are essential for VC firms to recoup their investments. This lack of exit opportunities limits the capital returned to investors, known as limited partners (LPs), who provide funds to venture capital firms. As a result, VCs have little appetite or capacity to back new companies.

![Graphics by Daeun Lee](https://www.kedglobal.com/data/ked/image/2025/08/27/ked202508270014.700x.0.jpg)

## State-Backed Funds Fall Short

In contrast to the US, which saw a 75.6% year-on-year surge in venture funding to $162.8 billion in the first half, Korea's venture capital market has contracted. Government efforts to mitigate the freeze through expanded contributions from state-backed "funds of funds" have done little to reassure founders. A Seoul-based venture capitalist noted, "Short-term liquidity injections cannot break the negative chain reaction in the market."

![Graphics by Daeun Lee](https://www.kedglobal.com/data/ked/image/2025/08/27/ked202508270015.700x.0.jpg)

## The Disappearance of Venture Capitalists

The contraction has already taken its toll. A venture house in Andong, North Gyeongsang Province, established in 2018 to support seed-stage companies, lost its license this month after failing to make any new investments in the first half. Sources revealed that the firm's capital impairment ratio soared above 50%, and repeated government warnings rendered it unable to continue operations, even with minimal staffing.

Other funds face similar fates as exits become increasingly difficult. Applications for IPO reviews at the Korea Exchange plummeted nearly 40% year-on-year to 53 in the first six months. High-profile companies like K Bank, DN Solutions, and Lotte Global Logistics have all postponed their listing plans, deepening despair in the venture capital industry.

![Courtesy of Getty Images](https://www.kedglobal.com/data/ked/image/2025/08/27/ked202508270013.700x.0.jpg)

A VC partner in Seoul emphasized, "There are simply no exits. Without liquidity events, we cannot recycle capital, and without capital, we cannot invest." The retreat of limited partners has exacerbated the issue, with pension funds and securities houses shifting focus to safer assets, stalling new fund creation. One venture capital manager, who launched a firm two years ago, recounted visiting 35 potential LPs this spring, with only three willing to commit.

## Startups in Peril

The brunt of this crisis is borne by Korea's youngest startups, which rely heavily on early-stage investors. According to The VC, a domestic venture funding platform, seed-to-Series A deals plunged nearly 43% year-on-year to 338 in the first half. Investors are increasingly crowding into more mature, revenue-generating companies, offering them final-stage funding rounds.

The founder of an AI startup in Gangnam, southern Seoul, shared, "In the past, you could secure funding with just a strong idea and a good team. Now you need to prove revenue and profit and have a track record just to get a meeting. I worry that innovation itself is being snuffed out."

![Courtesy of Getty Images](https://www.kedglobal.com/data/ked/image/2025/08/27/ked202508270017.700x.0.jpg)

Industry observers warn that this freeze could undermine the long-term competitiveness of the Korean startup industry. The ecosystem has grown increasingly dependent on government-engineered public money. The Ministry of SMEs and Startups reported that [state-backed policy capital](https://www.kedglobal.com/venture-capital/newsView/ked202307240021) accounted for 16.7% of newly raised venture funds in 2023, rising to 23% last year. When including pension funds and mutual aid associations—technically private but public in character—more than a quarter of the market now relies on state-related capital.

A venture capital analyst in Seoul cautioned, "Without a healthier balance of private capital and functioning exit channels, the Korean venture landscape could face lasting damage."

 South Korea’s startup community is facing its sharpest funding squeeze in over a decade, as venture capital (VC) firms retreat from new investments. Cash

Why Korean Startups Are Facing a Devastating Funding Crisis: The Shocking Truth Behind Vanishing VCs

# Unlock Your Happiest Life: 5 Game-Changing Insights from a Harvard Happiness Expert

Arthur Brooks, a professor at Harvard Business School and a leading expert on the science of happiness, shares transformative strategies from his new book, *The Happiness Files: Insights on Work and Life*. He argues that **your life is like a startup business**, and by applying entrepreneurial principles, you can achieve greater success and fulfillment.

## Manage Yourself
In the startup of your life, you are the most important employee. **Self-management** is crucial for both success and happiness. This section explores why personal management differs from professional management and offers insights from neuroscience and behavioral science to help you overcome challenges like burnout. Understand what happens in your brain during burnout and learn to prioritize self-care to enhance your job and life performance.

## How to Build Your Career
Career building is an ongoing process, not just for your twenties. Discover if you have a linear or spiral career path and learn when it's the right time to switch jobs. **Trust your instincts** with a practical rubric provided in the book to guide your decisions and find courage in career changes.

## How to Communicate and Connect with Others
Effective communication is key to managing your life's enterprise. This section covers giving and receiving criticism, offering compliments, and interacting as an introvert. Importantly, it advises **avoiding unnecessary meetings** to boost happiness, backed by data on productivity and well-being.

## How to Balance Work, Life, and Relationships
Forget work-life balance; focus on **work-life integration**. Your work and personal life should complement each other, like iron sharpening iron. Learn from successful and happy individuals on setting boundaries and handling colleagues who may negatively impact your life.

## How to Define Success
Define success beyond money, power, or fame. **Choose meaningful metrics** like love, satisfaction, or faith to avoid misery. This clarity motivates you to excel in both work and home life, ensuring continuous progress in your personal startup journey.

*This content is adapted from insights in *The Happiness Files*.*

Arthur Brooks shares five key insights from his new book, ‘The Happiness Files: Insights on Work and Life.’

Unlock Your Happiest Life: 5 Game-Changing Insights from a Harvard Happiness Expert

## The Rise of Vector Databases in the AI Era

When the artificial intelligence boom began a few years ago, investors flocked to startups that helped businesses transform and store proprietary data in a format AI could understand, known as a **vector database**. This technology allowed businesses to use a customized AI chatbot to search or analyze data more efficiently, fueling rapid growth in the sector.

## Pinecone: A Top-Funded Contender

Pinecone emerged as a key player in this space, attracting significant funding and attention for its innovative approach to vector databases. As a **top-funded AI database startup**, it has been at the forefront of enabling companies to leverage AI for enhanced data management and insights.

## Potential Sale Considerations

Recent reports suggest that Pinecone is considering a sale, a move that could have major implications for the AI and database markets. This potential sale highlights the intense competition and consolidation trends in the tech industry, where **strategic acquisitions** are common as companies seek to bolster their AI capabilities.

## Impact on the Startup Ecosystem

If Pinecone proceeds with a sale, it could set a precedent for other AI-focused startups, influencing investment patterns and innovation in the field. The story underscores the importance of **scalable technology** and market timing in the high-stakes world of entrepreneurship.

When the artificial intelligence boom began a few years ago, investors flocked to startups that helped businesses transform and store proprietary data in a format AI could understand, known as a vector database. The technology allowed businesses to use a customized AI chatbot to search or ...

Clay's AI Sales Automation Soars: $100M Series C at $3.1B Valuation

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From Microsoft to Munify: How a Frustrated Expat Raised $3M to Revolutionize Remittances for Egyptians Abroad

Massachusetts Steps Up with $23M in Climate-Tech Grants as Federal Support Fades

Why Korean Startups Are Facing a Devastating Funding Crisis: The Shocking Truth Behind Vanishing VCs

Unlock Your Happiest Life: 5 Game-Changing Insights from a Harvard Happiness Expert

Is Pinecone AI Database on the Block? Inside the Potential Sale Shaking Up the Tech World