# The Surge in Tech IPOs is a Game-Changer for Venture Capital

September is on track for six venture-backed tech listings, marking the highest number since November 2021. This **IPO wave** is providing a much-needed **lifeline** for venture funds, enabling them to start returning more cash to the **limited partners** that back them.

For years, the venture capital industry has faced strains that hindered fundraising. The inability to return capital to investors created a cycle of uncertainty. Now, with the rising number of IPOs, this pressure is easing. **Limited partners**, who are the backbone of venture funds, are finally seeing returns, which could revitalize the entire ecosystem.

This trend is not just a temporary spike; it signals a broader recovery in the tech market. As more companies go public, it opens up opportunities for new investments and growth, making it an exciting time for startups and entrepreneurs.

September is on track for six venture-backed tech listings, the most since November 2021. The rising number of IPOs means venture funds can start returning more cash to the limited partners that back them, relieving one of the strains that had held back VC fundraising over the last few years. ...

IPO Boom Rescues Venture Capital: Limited Partners Finally See Cash Returns After Years of Drought

## Colossal Biosciences Inc. Secures Major Funding for De-Extinction

**Colossal Biosciences Inc.**, a pioneering biotechnology startup focused on **resurrecting extinct animals**, has successfully raised **$120 million** in a recent funding round. This investment includes backing from high-profile figures like filmmaker **Peter Jackson**, underscoring the growing interest and confidence in de-extinction technologies.

The CEO of Colossal has announced an ambitious timeline, expecting to **bring back the dodo bird in less than seven years**. This latest funding is an extension of a $200 million round disclosed earlier, catapulting the company's valuation to an impressive **$10.3 billion**.

In a significant scientific breakthrough, Colossal reported on Wednesday that they have **grown pigeon cells in a laboratory setting**. This advancement marks a pivotal moment in avian science, potentially enabling new methods to **protect endangered birds** and even **revive extinct species** like the dodo. The progress opens doors to innovative conservation efforts and could reshape our approach to biodiversity loss.

Colossal Biosciences Inc., a biotechnology startup working to resurrect extinct animals, has raised $120 million from investors including filmmaker Peter Jackson — and its chief executive officer says the company expects to resurrect the dodo in less than seven years.

Scientists Are Bringing the Dodo Back to Life: $120M Raised to Resurrect Extinct Species in Just 7 Years!

## Speed as the New Currency in AI-Driven Software

In an era where speed defines success, **Blacksmith**, a Y Combinator alum, has secured a $10 million Series A round led by Google Ventures—just four months after its seed funding. This rapid investment underscores the growing demand for tools that accelerate code deployment.

### The Funding Frenzy

The Series A closed in a mere 14 days, with Google Ventures doubling down after initially backing Blacksmith's $3.5 million seed round in May. This move wasn't just based on market potential; it was driven by tangible results. Since its inception, Blacksmith has attracted hundreds of customers, capitalizing on the boom in AI coding agents that are reshaping the development landscape.

### Impressive Growth Metrics

Founded in January 2024 by Aditya Jayaprakash, Aayush Shah, and Aditya Maru—veterans from Cockroach Labs and Faire—Blacksmith hit $1 million in annual recurring revenue (ARR) with just a four-person team by February. Fast forward to today, and the company boasts over 700 customers, $3.5 million ARR, and a team of 11, with ambitions to double revenue by year's end.

### Solving Costly CI/CD Challenges

Blacksmith addresses the pain points of continuous integration and continuous delivery (CI/CD), stages in software development known for their high costs and unpredictability. Traditional cloud services from providers like AWS, Google Cloud, and Azure often fall short in speed and affordability. Blacksmith's solution leverages **high-performance, gaming-grade CPUs** on bare-metal infrastructure, offering up to double the processing speed and reducing compute costs by as much as 75%. Teams can integrate it with a single line of code, enabling faster deployments within minutes.

### Unique Competitive Edge

By avoiding generic cloud servers and opting for bare-metal setups, Blacksmith gains superior control over economics and margins. This approach is particularly beneficial for compute-intensive companies, allowing for scalable growth without the overhead of hyperscalers. Additionally, the platform provides test analytics and observability features, enhancing GitHub Actions for deeper insights into software testing and deployment.

### Target Market and Clientele

Focused on enterprises with 500 or more engineers, Blacksmith's customer roster includes notable names like Ashby, Chroma, Clerk, Devsisters, Mintlify, Pylon, Slope, Supabase, and VEED. The recent funding round also saw participation from existing investors and angels, such as Spencer Kimball of Cockroach Labs and David Cramer of Sentry, further validating the startup's trajectory.

With its rapid ascent and innovative approach, Blacksmith is poised to redefine how developers build and ship software in an AI-centric world.

Blacksmith, a Y Combinator alum, raised $10M Series A led by Google Ventures to cut costs and speed up software builds.

Google Ventures Doubles Down on Blacksmith: How This Dev Tool Startup Is Revolutionizing Software Builds in Just 4 Months

# Israel's Tech Sector: Resilience Meets Stagnation

Israeli tech continues to show **resilience** despite a challenging two-year war period, with startup fundraising recovering and 2025 poised to be a record year for tech exits, including mega deals like Google's $32 billion acquisition of Wiz.

However, the Israel Innovation Authority's 2025 High-Tech report raises serious concerns. After a decade of accelerated growth, the sector faces **stagnation in employment growth and output**. The recovery in startup investment hasn't translated into increased recruitment, and there's a decline in new startup formation and a sharp drop in fundraising by Israeli venture capital funds.

![Dror Bin, CEO of the Israel Innovation Authority](https://static-cdn.toi-media.com/www/uploads/2022/11/Dror-Bin-1_-Credit-Hanna-Teib-1-e1669754284358-300x480.jpg)
*Dror Bin, CEO of the Israel Innovation Authority. (Courtesy/Hanna Teib)*

Key findings include:
- Tech output, accounting for about 17% of GDP and over half of exports, has remained unchanged for two years.
- Employment growth has slowed to less than 2% annually since 2023, down from over 5% in the previous decade.
- In the first half of 2025, about 403,000 people (11.5% of the workforce) were employed in tech, with R&D jobs declining by 6.5% year-over-year.
- Tech employees pay more than a third of all tax income, highlighting the sector's vital role in Israel's war-battered economy.

The report notes that AI adoption has had no measurable impact on labor productivity yet, and factors like high interest rates, global conflicts, and the ongoing war in Israel are influencing output.

Israel ranks as the fifth-largest hub for startup fundraising globally, but investments are concentrated in cybersecurity and enterprise software, indicating a lack of innovation diversity. The number of new startups has halved compared to a decade ago, with only about 500 founded in 2024 versus over 1,000 previously.

![An employee works in the tech sector](https://static-cdn.toi-media.com/www/uploads/2024/08/F190221HP45-1024x640-1-640x400.jpg)
*Illustrative. An employee works in the tech sector. (Hadas Porush/ Flash90)*

Dror Bin emphasized the urgency for government investment and a strategic public-private partnership to secure Israel's position as a global Deep-Tech center, second only to the US in the Western world, with over 1,500 active companies.

Israel Innovation Authority raises serious concerns about stagnation in tech output, emphasizes urgency of government investment to secure one of the main sources of tax revenue

Is Israel's Tech Boom Hitting a Wall? New Report Reveals Shocking Slowdown in Startup Growth and Jobs

## The Rise of AI-Powered Code Review

Harjot Gill, a seasoned entrepreneur who previously sold Netsil to Nutanix in 2018, was running FluxNinja, an observability startup, when he noticed a significant trend. His team of remote engineers began adopting **AI code generation tools like GitHub Copilot**, leading to a clear prediction: this adoption would create **bottlenecks in code review processes**.

In early 2023, Gill founded **CodeRabbit**, an AI-powered code review platform, and acquired FlexNinja. His foresight proved accurate—developers now frequently use AI coding assistants, but the output is often buggy, forcing engineers to spend excessive time on corrections.

CodeRabbit steps in to catch these errors, acting like a coworker by understanding a company's codebase to identify bugs and provide feedback. According to Gill, companies using CodeRabbit can **reduce the number of human code reviewers by half**, saving valuable time on this traditionally frustrating task.

## Impressive Growth and Funding

The business has been growing at a rate of **20% per month** and now boasts over **$15 million in annual recurring revenue (ARR)**. This rapid expansion caught the attention of investors, leading to a **$60 million Series B funding round** led by Scale Venture Partners, with participation from NVentures (Nvidia's venture arm) and returning investors like CRV. This round values the two-year-old startup at **$550 million** and brings total funding to $88 million.

CodeRabbit serves over 8,000 businesses, including notable names like Chegg, Groupon, and Mercury, helping them streamline code reviews exacerbated by the rise of AI-generated code.

## Competitive Landscape and Future Outlook

In the competitive AI code review space, CodeRabbit faces rivals such as **Graphite**, which raised a $52 million Series B led by Accel, and Greptile, reportedly in talks for a $30 million Series A. While AI coding assistants like Anthropic's Claude Code and Cursor also offer review capabilities, Gill believes customers will prefer standalone solutions for their depth and technical breadth.

Despite the growth of tools like CodeRabbit, AI-generated code remains unreliable, leading to the emergence of new roles like the **vibe code cleanup specialist**. For now, thousands of developers are willing to pay $30 per month for CodeRabbit's services, highlighting the ongoing demand for effective AI-driven code review solutions.

The round, which brought the two-year-old startup’s total funding to $88 million, was led by Scale Venture Partners.

CodeRabbit's $60M Series B Fuels AI Code Review Revolution, Valuing Startup at $550M

# Figure AI's Funding Triumph

AI robotics company **Figure** announced on Tuesday that it has secured over **$1 billion** in committed capital in its latest Series C funding round, valuing the firm at a staggering **$39 billion** post-money. This round was led by **Parkway Venture Capital** and included participation from industry leaders such as **Nvidia**, **Intel Capital**, **LG Technology Ventures**, **Salesforce**, **T-Mobile Ventures**, and **Qualcomm Ventures**.

Venture capital firms are increasingly investing heavily in companies leveraging **artificial intelligence**, enabling them to remain private for extended periods. According to a report by PitchBook, U.S. startup funding is on track to reach its second-highest total on record, with a 75.6% increase in the first half of 2025, driven by the ongoing AI boom.

Figure's valuation has skyrocketed from $2.6 billion last year, when it raised $675 million from investors including **Microsoft** and **Amazon.com** founder Jeff Bezos. Ali Javaheri, an emerging technology analyst at PitchBook, noted, "Investors increasingly view humanoids in the same league as foundational AI models or EVs. The surge in VC interest in humanoids is being driven by structural demand-side factors like aging workforces and geopolitical competition, paired with supply-side advances in AI software and hardware breakthroughs."

Startups and major tech companies, including **Nvidia**, **Meta Platforms**, and **Tesla**, are competing to develop humanoid robots to address labor shortages and handle repetitive, hazardous tasks in logistics, manufacturing, and household chores.

Based in San Jose, California, Figure plans to use the new capital to scale its humanoid robots into homes and commercial operations, enhance its infrastructure for accelerated training and simulation, and intensify data collection efforts. Brett Adcock, founder and CEO of Figure, stated, "This milestone is critical to unlocking the next stage of growth for humanoid robots, scaling out our AI platform Helix and BotQ manufacturing."

Additional investors in this round include **Brookfield Asset Management**, **Macquarie Capital**, **Align Ventures**, and **Tamarack Global**.

AI robotics company Figure said on Tuesday it had received over $1 billion in committed capital in its latest funding round that valued the firm at $39 billion post money.

Figure AI Soars to $39 Billion Valuation in Massive Funding Round Fueled by Tech Giants

## Workday Acquires AI Startup Sana in Major $1.1 Billion Deal

**Workday (WDAY)** has announced a significant move in the AI space, agreeing to purchase artificial intelligence startup **Sana** for $1.1 billion. This acquisition comes as Workday prepares for its analyst day, coinciding with the annual Workday Rising customer conference, where updates on guidance and long-term strategy are expected.

Sana specializes in an **AI-native platform for learning and knowledge management**, which aligns with the growing trend of autonomous, goal-driven AI agents that can perform tasks independently. This deal is part of a broader pattern where established software companies like Workday, **ServiceNow (NOW)**, and **Salesforce (CRM)** are actively acquiring AI startups to bolster their capabilities. Workday has previously made acquisitions including Evisort, Flowise, Paradox, HiredMind, and Plex.

Workday is primarily known for its **human resources management software**, such as payroll tools, with about 70% of its revenue derived from human capital management products. The company has also expanded into financial software, but has faced challenges with slowing subscription revenue growth, putting pressure on its stock performance.

In recent financial results, Workday reported second-quarter earnings that exceeded Wall Street estimates, with earnings up 71% to 84 cents per share and revenue climbing nearly 13% to $2.348 billion. However, the stock has seen a decline, dipping slightly in morning trading to 221.31 and retreating about 12% in 2025.

From a technical perspective, Workday stock holds a Composite Rating of 71 out of 99, indicating room for improvement compared to top growth stocks, and an Accumulation/Distribution Rating of D+, reflecting recent price and volume trends.

This acquisition highlights the intense competition and innovation in the AI sector, with other events like Salesforce's upcoming Dreamforce conference expected to feature more AI announcements.

Workday agreed to buy AI startup Sana in a $1.1 billion deal. The software maker hosts an analyst day for Workday stock late Tuesday.

Workday's $1.1 Billion AI Acquisition: How Sana Deal Could Revolutionize Enterprise Learning

# Major Studios Accuse MiniMax of Intellectual Property Piracy

**Walt Disney Co.**, **Comcast Corp.**'s **Universal Studios**, and **Warner Bros. Discovery Inc.** have filed a lawsuit against Chinese artificial intelligence startup **MiniMax**, alleging the company has pirated their intellectual property. The complaint, filed in the US District Court for the Central District of California, claims MiniMax 'completely disregards US copyright law' by using copyrighted characters without permission.

## MiniMax: A Rising AI Powerhouse

Founded in 2021 and based in Shanghai, MiniMax has developed several generative AI models that power apps like **Hailuo AI** (a video and image editor) and **Talkie** (a chatbot competing with Character.AI). Valued at approximately **$3 billion**, MiniMax is considered one of China's 'AI Dragons' and is reportedly planning a public listing as early as this year.

## Details of the Allegations

The lawsuit highlights that MiniMax markets Hailuo AI as a 'Hollywood studio in your pocket,' which the plaintiffs call 'audacious' given the alleged use of stolen intellectual property. Subscribers can generate high-quality images and videos featuring iconic characters such as **Spider-Man**, **Superman**, **Darth Vader**, **Shrek**, **Buzz Lightyear**, and **Bugs Bunny** through text prompts. These outputs often include MiniMax and Hailuo branding, and the company uses these copyrighted elements to advertise its services to US customers.

## Broader Context in the AI Industry

This legal action is part of a larger trend where Hollywood studios are aggressively targeting AI companies for copyright infringement. In June, Disney and Universal sued **Midjourney Inc.**, and earlier this month, Warner Bros. filed a separate suit against Midjourney. The studios argue that such practices not only seek compensation but also represent a cultural attack on the creative community and a threat to the American motion picture industry, which contributes over **$260 billion** to the economy and supports millions of jobs.

## MiniMax's Response and Legal Proceedings

A representative for MiniMax did not immediately respond to requests for comment. The plaintiffs claim they have asked MiniMax to cease using their works without permission and to implement protective measures, but to no avail. The case is officially listed as Disney v. MiniMax, 25-cv-08768, in the US District Court, Central District of California (Los Angeles).

Walt Disney Co., Comcast Corp.’s Universal Studios and Warner Bros. Discovery Inc. are suing Chinese artificial intelligence startup MiniMax, accusing the company of pirating the studios’ intellectual property.

IPO Boom Rescues Venture Capital: Limited Partners Finally See Cash Returns After Years of Drought

Summary:

The Surge in Tech IPOs is a Game-Changer for Venture Capital

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Other Latest News

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Is Israel's Tech Boom Hitting a Wall? New Report Reveals Shocking Slowdown in Startup Growth and Jobs

CodeRabbit's $60M Series B Fuels AI Code Review Revolution, Valuing Startup at $550M

Figure AI Soars to $39 Billion Valuation in Massive Funding Round Fueled by Tech Giants

Workday's $1.1 Billion AI Acquisition: How Sana Deal Could Revolutionize Enterprise Learning

Hollywood Giants Sue Chinese AI Unicorn MiniMax Over Alleged Copyright Theft