## Faire's Meteoric Rise and Current Challenges

In 2022, **Faire** emerged as one of the most highly priced e-commerce startups, achieving a staggering **valuation of $12.6 billion**. This surge was largely fueled by the pandemic-driven boom in internet sales, which propelled the online marketplace to new heights.

However, as **Covid-19 restrictions waned**, the e-commerce growth cooled significantly. By late 2023, Faire faced new challenges in adapting to a changing market landscape. Despite this, the company is setting ambitious targets, aiming to reach **$500 million in revenue**, showcasing its resilience and strategic planning in the volatile startup ecosystem.

This article delves into Faire's journey, highlighting the factors behind its initial success and the strategies it might employ to navigate post-pandemic uncertainties.

In 2022, Faire became one of the most highly priced e-commerce startups, with a valuation of $12.6 billion, as the online marketplace benefited from a surge in internet sales during the pandemic. But after e-commerce growth cooled with waning Covid-19 restrictions, the company in late 2023 ...

How Faire, the $12.6 Billion E-Commerce Giant, Aims for $500 Million in Revenue Amid Market Shifts

# 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

## 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 ...

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

## The Unlikely Journey to 911 Call Center AI

Aurelian, a Seattle-based software startup, has raised **$14 million** in a Series A round to revolutionize emergency response systems using **AI and voice technology**. Co-founders Max Keenan and James Liu embarked on a remarkable pivot from personal search tools to life-saving solutions, driven by a chance conversation with a frustrated salon owner.

![Aurelian co-founders James Liu and Max Keenan](https://cdn.geekwire.com/wp-content/uploads/2025/08/IMG_1108-5-1.jpeg)

### From Needl to Aurelian: A Series of Pivots

After graduating from the University of Chicago, Keenan and Liu initially founded Needl in 2022, securing pre-seed funding and joining **Y Combinator**. Their goal was to create a personal search product for digital files, but they soon realized a lack of passion for the mission. "We just didn't love our customers," Keenan admitted, prompting a deep reevaluation.

They shifted focus to **conversational AI**, experimenting with salon booking automation. However, a pivotal moment came when a salon owner shared her struggle with long wait times on non-emergency police lines. This sparked the idea to apply their tech to **911 call centers**, an industry plagued by staffing shortages and outdated systems.

### How Aurelian's Technology Works

Aurelian integrates with existing call center phone lines, using an **AI assistant** to answer calls, gather information, and handle non-emergency issues like stolen wallets or noise complaints. It can resolve calls without human intervention or route them appropriately, even interpreting nuanced language and vague locations. This frees up dispatchers for true emergencies and slashes wait times.

### Rapid Impact and Growth

Since launching in May 2024, Aurelian has been adopted by over a dozen agencies across the U.S., including seven in Washington state. During a severe storm, the system answered **500+ calls about power outages instantly**, demonstrating its reliability. The company is on track to automate **over one million calls monthly**.

### Funding and Future Outlook

The Series A round was led by **NEA**, with participation from Liquid 2 Ventures, Y Combinator, and Palm Drive Capital. Investors praised the team's perseverance in finding a high-impact AI application. Keenan emphasizes the importance of working on meaningful problems: "This was the first time we woke up every day excited to work with our customers."

Aurelian co-founders James Liu (left) and Max Keenan. (Aurelian Photo) From searching your files to scheduling haircuts to supporting emergency response —

From Salon Frustration to 911 Innovation: How a Seattle Startup Pivoted to Save Lives with AI

## Commonwealth Fusion Systems Secures Massive Funding

**Commonwealth Fusion Systems**, a startup spun out from MIT, has announced a groundbreaking $863 million funding round. This investment, led by major players like **Google**, **Nvidia**, and **Bill Gates**, marks the largest venture deal in Massachusetts this year, according to PitchBook data.

The company is on a mission to develop the world's first operational fusion energy device. This experimental technology aims to continuously generate more energy than it consumes, a feat that could transform the global energy landscape.

With this new capital, Commonwealth Fusion Systems plans to complete its demonstration machine in Devens, Massachusetts. If successful, this device could become operational within the next few years, proving the viability of fusion energy for the first time.

Fusion energy has long been hailed as a potential source of limitless, clean power, and this funding boost accelerates the race to make it a reality.

Commonwealth Fusion Systems is trying to show that its experimental device can continuously generate more energy than it consumes.

MIT Fusion Startup Raises $863M to Revolutionize Clean Energy with Breakthrough Technology

## The Underestimated Challenge of Recruiting

In 2017, Palmer Luckey stood barefoot outside Anduril's first hangar, discussing recruiting despite the company being little more than an idea. This early focus on talent acquisition highlights a critical insight: **recruiting is not a support function but a core pillar of any great company**. Many founders overlook this, facing persistent challenges once the initial launch excitement fades. Early hires shape culture, define momentum, and steer the entire trajectory of a startup.

Two key questions guide effective recruiting: Who did you need yesterday? And who will you wish you had a year from now? Balancing these is the art of building the right team.

## Who Did You Need on the Team Yesterday?

Recruiting here is about time and volume, requiring a steady pipeline and a well-structured funnel, much like sales. The principles involve:
- **Sourcing strategies**: Start with your network but expand to multiple channels.
- **Strong hiring processes**: Should be fast and rigorous to attract top talent.
- **Understanding candidate decision-making**: It's a two-way street; sell your company while assessing fit.
- **Aligning expectations**: Avoid misalignments that lead to early departures.

### Sourcing Strategies
Begin with your first-degree network—people you'd work with again. Then, leverage second-degree networks for warm introductions. Consider internal recruiters for efficiency, external recruiters for niche roles (but choose carefully), and creative channels like X, alumni from struggling companies, niche Discords, university clubs, GitHub contributors, and conference speakers.

### Strong Hiring Processes
Interview formats should reflect your culture and challenges. **The best processes are fast and hard**, signaling seriousness and setting high standards. Speed is crucial to avoid losing candidates to timing issues. After onsites, conduct reference checks not just for screening but for onboarding support. Ask open-ended questions, look for patterns, check biases, and use backchannels discreetly.

### Understanding How Candidates Make Decisions
Recruiting involves selling your company. Ask questions like why they joined or left previous roles, their five-year goals, and what makes a role meaningful. Common motivators include **mission, technology, career growth, team dynamics, and compensation**. Alignment here builds conviction on both sides.

### Aligning Expectations
Misaligned expectations are a common cause of early hire failures. Cover basics like compensation and location, but also discuss role scope and growth trajectory. A best practice: ask new hires one month in if the job meets expectations to refine your process.

## Who Will You Wish You Had a Year From Now?

Shift from reactive to strategic hiring by working backward from 12-24 month milestones. Identify future needs, like RF engineers or security leads, and start building relationships early. This proactive approach prevents last-minute scrambles.

### Becoming Fluent in "What Great Looks Like"
Avoid hiring for roles you don't understand. Tap your network, especially investors, to learn what makes someone exceptional. Ask about best people, evaluation methods, must-have skills, and common mistakes. This sharpens your judgment.

### Make Time to Recruit Even When It Feels Optional
Treat recruiting as a weekly habit, not an urgent task. Start conversations early with potential candidates, even without an open role, to build momentum. This slow-drip approach pays off when needs arise.

## Why Do Founding Team Members Join?

Despite the risks, top talent joins for three reasons: belief in the founder, feeling valued with fair rewards, and seeing long-term growth opportunities. Great early hires come in various forms—some aiming to start their own ventures, others preferring operational roles, high-agency builders, or risk-aware individuals. **The quality of early hires defines your company's slope**, attracting more talent and building inevitability.

Recruiting is integral to figuring out your company's path; it's not a side task but the essence of building a lasting venture.

![Recruiting Timeline](https://d1lamhf6l6yk6d.cloudfront.net/uploads/2025/08/Recruiting-timeline.png)

Recruiting is a founder’s most underestimated challenge, and success comes from mastering sourcing, process, and closing.

Master the Art of Building a Founding Team: Secrets from Andreessen Horowitz

## The Yardstick of Retail Success

The measure of retail success is shifting towards who can best deliver anticipatory and frictionless commerce, not in isolated channels but as orchestrated services.

**Amazon** and **Walmart** are leading this charge, with their rivalry no longer just about sales volume but about shaping the infrastructure of commerce itself.

Amazon is betting heavily on a future where **artificial intelligence** intermediates nearly every business transaction, from ordering office supplies to acquiring fleets. Walmart envisions a future where its scale, stores, and logistics form the backbone of a more open marketplace, attracting sellers with reach and reliability.

The retail wars of 2025 are less about the checkout counter and more about who controls the underlying layers, placing platform plays and marketplace innovations at the center.

## Amazon Makes B2B Moves Beyond Consumers’ Shopping Carts

Amazon's ambitions extend far beyond retail, with recent initiatives in AI and B2B commerce highlighting this trajectory. The company has established **Amazon Business** as a B2B heavyweight, now supporting over 8 million organizations across 11 countries and generating more than $35 billion in annualized gross sales. Its client list includes 97 Fortune 100 companies, 66 FTSE 100 firms, and 38 from Germany's DAX-40 index.

What sets Amazon Business apart is its **scale** combined with **infrastructure**. Unlike traditional distributors, it offers real-time availability, transparent pricing, and fast fulfillment on millions of SKUs. Strategically, the platform is becoming a testing ground for Amazon's AI ambitions, with intelligent agents that can anticipate needs, compare supplier contracts, and trigger purchases autonomously.

Beyond B2B, Amazon is expanding into durable goods, such as through a partnership with **Hertz** to sell used vehicles via **Amazon Autos**. However, challenges persist, particularly in the grocery sector, where Amazon struggles with local sourcing, spoilage, and last-mile delivery, areas where Walmart holds advantages.

## Walmart Builds Out Its Own Platform

While Amazon focuses on AI-driven enterprise solutions, Walmart is leveraging its physical and digital assets to attract third-party sellers. After being cautious about opening its shelves to outside vendors, Walmart is now experimenting with in-store displays for marketplace products, blending digital offerings with the credibility of physical stores.

Walmart is also forming financial partnerships, such as becoming **Klarna**'s largest retail partner in Canada to expand buy now, pay later options. This reflects Walmart's pragmatic approach: removing friction for sellers and buyers through faster delivery, payment flexibility, and in-store visibility.

By using its 4,600 stores as fulfillment nodes and marketing channels, Walmart positions itself as a platform, not just a retailer, offering a hybrid model where third-party sellers benefit from both e-commerce reach and brick-and-mortar presence.

Both companies face risks: Amazon must ensure its AI agents are trusted and unbiased, while Walmart needs to carefully integrate marketplace offerings to avoid cluttering its stores.

At least 12 European startups have reached “unicorn” status so far this year, meaning they achieved valuations of more than $1 billion.

Europe's 12 New Unicorns in 2025: The Rise of Billion-Dollar Startups

# Framer's Meteoric Rise to a $2 Billion Valuation

Framer, a leading **no-code website builder**, has achieved a staggering **$2 billion valuation** after securing a **$100 million Series D funding round**. This investment was led by existing backers Meritech and Atomico, highlighting strong investor confidence in the platform.

With over **half a million monthly active users**, Framer is capitalizing on the booming demand for easy-to-use website creation tools. It competes directly with giants like Figma, Squarespace, and Wix, as well as emerging platforms in the 'vibe coding' space such as Cursor and Lovable.

## From Series C to Series D: Rapid Growth Trajectory

In 2023, Framer raised a $27 million Series C round led by Meritech, though the valuation was not disclosed at that time. This latest funding round marks a significant leap, propelling the company into double-unicorn status.

CEO and co-founder Koen Bok emphasized, "With this funding, we're doubling down on **enterprise growth and AI**, so any company can confidently run their entire website on Framer."

## Beyond Static Pages: Dynamic and Enterprise-Ready Solutions

Framer distinguishes itself by supporting **dynamic websites** that teams can update quickly without developer intervention. Recent additions include analytics and enterprise security features, aiming to help companies manage their entire .com presence seamlessly.

Founded in Amsterdam by Koen Bok and Jorn van Dijk—who previously sold their design studio to Facebook—Framer brands itself as "the website builder loved by designers," promising standout websites crafted with its tools.

## Enterprise Focus Driving Revenue Growth

The company has aggressively expanded its B2B offerings, introducing business plans that have attracted major clients like Miro, Perplexity, and Scale AI. Notably, 40% of Y Combinator's most recent batch are using Framer.

This shift is paying off: Framer reached **$50 million in annual recurring revenue** this year and is on track to surpass $100 million next year. Bok revealed that the company has been break-even for the past year, underscoring its financial health.

As Framer continues to innovate with AI and enterprise solutions, it's poised to reshape how businesses build and manage their online presence.

Framer, a no-code website builder that claims over half a million monthly active users, has reached a $2 billion valuation after raising a $100 million Series D funding round led by existing investors Meritech and Atomico.

How Faire, the $12.6 Billion E-Commerce Giant, Aims for $500 Million in Revenue Amid Market Shifts

Summary:

Faire's Meteoric Rise and Current Challenges

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