Summary:
OpenAI acquires Jony Ive's AI device startup io in a $6.5B all-equity deal
Klarna hits $1M revenue per employee with AI efficiency, presents earnings via CEO AI avatar
Brex partners with Zip to grow enterprise base and reduce cash burn for potential IPO
Builder.ai enters insolvency despite $450M funding at unicorn valuation
LM Arena raises $100M seed at $600M valuation for AI leaderboards
Affiniti's young founders secure $17M Series A for expense-management software
Startups Weekly: Cutting Through the Google I/O Noise
Despite the buzz around Google I/O, startups managed to steal the spotlight with significant announcements and deals. Here's a rundown of the most compelling stories from the startup world this week.
Most Interesting Startup Stories from the Week
Image Credits: OpenAI
- Billion-dollar hire? Jony Ive and his firm LoveFrom will lead creative and design work at OpenAI after the company acquired io, the AI device startup he co-founded with Sam Altman, in an all-equity deal valuing that startup at $6.5 billion.
- Million-dollar employees: BNPL giant Klarna is on track to reach $1 million in revenue per employee, up from $575,000 a year earlier, after its AI-driven efficiency push reduced its customer service costs. Klarna’s quarterly earnings were even presented by an AI avatar of its CEO.
- Brex for Zip: Brex is partnering with former competitor Zip, a 5-year-old procurement startup, with hopes to grow its enterprise customer base and reduce cash burn, a key step toward a potential IPO.
- Running out of money: Microsoft-backed AI software company Builder.ai entered insolvency proceedings despite having raised more than $450 million in funding at a unicorn valuation.
- New ride: Einride founder Robert Falck transitioned from CEO to executive chairman as the electric and autonomous trucking startup works toward scaling, fundraising, and a potential IPO.
- Fresh lights: Luminar, a lidar company, could secure up to $200 million through the sale of convertible preferred stock following its CEO's departure.
- Open road: The Breakaway, a Y Combinator alum, was acquired by social fitness company Strava, marking Strava's second acquisition in recent weeks.
Most Interesting VC and Funding News This Week
Image Credits: Affiniti
- Seed, not a typo: LM Arena, known for its AI leaderboards, reportedly raised a $100 million seed round at a $600 million valuation.
- Grounded: Gravitee, a platform helping companies manage their APIs, landed a $60 million Series C, bringing its total raised to over $125 million.
- Strong signal: Siro, developing AI-powered tools for sales reps, locked in a $50 million Series B led by SignalFire.
- Renewed: Subscription management startup RevenueCat raised a $50 million Series C, now valued at $500 million, aiming to expand beyond app monetization.
- Reinforced: Affiniti, founded by a 20 and 22-year-old duo, closed a $17 million Series A for its expense-management software targeted at traditional small businesses.
- More to deploy: Headline Asia raised $145 million for its fifth fund, dedicated to early-stage startups across Asia-Pacific.
- Scribble network: Scribble Ventures secured $80 million for its third fund, showcasing the importance of networks in the crowded VC landscape.
- Creative capital: Creator Ventures raised a $45 million second fund, more than double its previous $20 million fund, signaling confidence in consumer internet startups.
Last but Not Least
At a TechCrunch StrictlyVC event in London, Accel general partner Sonali De Rycker expressed optimism about Europe’s prospects in AI but cautioned against regulatory overreach, emphasizing the importance of not being leashed during this supercycle.
Comments