Surge in Startup Acquisitions: Wiz, Graphcore, and More Highlight a Busy Week
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Major Startup Developments This Week
Google Eyes Wiz Acquisition: Google is reportedly in advanced talks to acquire Wiz, a rapidly growing cloud security startup, for $23 billion.
Despite Wiz’s meteoric rise to $500 million in annual recurring revenue and a recent valuation of $12 billion, sources indicate there is only a 50% chance the deal will go through, potentially leaving Wiz’s IPO aspirations intact.
SoftBank Acquires Graphcore: In a strategic move to bolster its AI portfolio, SoftBank has purchased Graphcore, a UK-based AI chipmaker, for an undisclosed amount. Although Graphcore has not reached the prominence of Nvidia, SoftBank is banking on its potential to drive AI innovation.
Deel Continues Its Acquisition Streak: Payroll solutions provider Deel has acquired Hofy, a startup specializing in remote office equipment management, for over $100 million. This acquisition marks Deel’s third this year, as it continues to expand its service offerings.
HeadSpin’s Tumultuous Journey: Once valued at $1.1 billion, HeadSpin faced a dramatic downfall after its founder was convicted of fraud.
Recently, the company was sold to private equity firm PartnerOne for just $28 million, with most former employees receiving no compensation for their stock options.
Significant Fundraises This Week
Making Space Secures Funding: Keely Cat-Wells, a disability activist, has raised $2 million in pre-seed funding for Making Space, a talent acquisition platform for disabled workers.
Despite encountering skepticism and advice to find a non-disabled male co-founder, Cat-Wells successfully secured investment from Utah-based VC Beta Boom.
Exa’s AI Search Capabilities: Exa, a platform that facilitates large-scale internet searches for AI systems, has raised $17 million from Lightspeed, Nvidia, and YC. This funding underscores the ongoing interest in AI innovation.
Coast’s Rapid Fundraising: Coast, a financial services platform tailored for the transportation sector, has raised $40 million in a Series B round from ICONIQ Growth, just four months after securing $25 million in venture funding. This quick succession of fundraises highlights investor confidence in the startup’s potential.
Tribe AI’s Bootstrap Success: After operating as a bootstrapped business for six years, Tribe AI has raised $3.2 million to help companies hire AI strategy contractors, reflecting the high demand for AI expertise.
VC and Fund News
a16z Founders Support Trump: Marc Andreessen and Ben Horowitz, co-founders of Andreessen Horowitz, announced on a podcast their decision to support Donald Trump. They expressed concerns over the Biden administration’s AI regulation, crypto policies, and proposed taxes on unrealized capital gains as key factors in their decision.
VC Speech at RNC: David Sacks, founder of Craft Ventures and co-host of the All-In podcast, delivered a speech at the Republican National Convention. Despite his influence in Silicon Valley, his recognition among mainstream Republicans remains limited.
Menlo Ventures and Anthropic Collaboration:
Menlo Ventures has teamed up with AI firm Anthropic to launch a $100 million fund aimed at supporting early-stage AI startups. This partnership follows Menlo Ventures’ significant investment in Anthropic’s Series D round.
Final Thoughts
AI fundraising continues to thrive, with 28 companies securing rounds of $100 million or more this year alone. This trend is expected to grow, demonstrating strong investor confidence in the AI sector.
