Necessary Ventures

The deepest part of the ocean lies 35,000 feet below the surface, and we know very little about it. Similarly, creating content that clicks with mass audiences can feel like a wild guess. These startups are transforming these challenges into opportunities: Orpheus Ocean – They’re revolutionizing deep-sea exploration with autonomous vehicles that capture high-res data from the most remote parts of the ocean. With a $2.8M raise from Propeller, Orpheus is unlocking the ocean’s mysteries and reshaping the future of underwater research. Copley – Content strategies built on science, not guesswork. Copley uses advanced analytics and AI to help brands optimize their content across every channel. With $4.8M in funding from Asymmetric Capital Partners, Copley is transforming how businesses engage and convert their audiences. More groundbreaking pre-seed startups in our newsletter: https://lnkd.in/gk7-aHkS

Is experience overrated? Some of the most successful founders built billion-dollar companies before the world thought they were ready. On this episode of Money Moves, Danielle Strachman of 1517 Fund shares how she went from launching a charter school to backing nontraditional founders through the Thiel Fellowship and beyond. She and her team bet early on ambitious dropouts and students, before anyone else would. Hear how Danielle spots raw talent, navigates the challenges of raising venture capital, and helps unconventional founders turn big ideas into even bigger outcomes. Listen now: https://lnkd.in/gVcffWuY

What’s fueling the surge in pre-seed valuations in the hardware sector? In 2024, pre-seed valuations in hardware surged, with caps exceeding $40M at the 75th percentile for rounds over $1M—nearly 15% higher than medical devices. At the median, hardware, along with crypto and biotech, led with valuation caps of $20M. As deep tech innovations like AI, robotics, and sustainability gain momentum, hardware startups are increasingly viewed as high-growth opportunities. While they require more upfront investment than software, they offer significant long-term upside. This shift in pre-seed valuations signals a major change in investor behavior: bigger bets are being placed earlier. Are we entering a new era of high-stakes, high-reward investing? Read more inside our latest newsletter: https://lnkd.in/gk7-aHkS

What happens when you combine innovation with millions in funding? With $11.7 million in pre-seed funding, Tandem and WilsonAI are about to show us. Tandem is reinventing pet care with an AI-powered operating system that brings together telehealth, mobile clinics, wellness visits, and pharmacy services. Their $10M raise, the second largest pre-seed round this year, is set to change how veterinary services are delivered. WilsonAI is building the world’s first AI paralegal, designed to seamlessly integrate with legal teams. Their $1.7M round led by Nomad Ventures signals a future where AI assists in legal workflows with speed and precision. More pre-seed insights in our newsletter: https://lnkd.in/gk7-aHkS

Seed might be the new Series A, but what does that mean for pre-seed? Since 2020, median seed round sizes have grown by 53% (30% adjusted for inflation), while later-stage rounds have either stagnated or even shrunk. What is driving this shift? 1\ AI is shaking up the game: Startup costs are dropping, but competition is skyrocketing. Capital is now more essential than ever to scale quickly and stay ahead. 2\ The rise of "seed-strapping": Startups are opting to raise one big round instead of multiple smaller ones, streamlining their path to growth. Dive deeper on market trends in our newsletter: https://lnkd.in/gk7-aHkS

Complexity doesn’t always mean the death of innovation. These startups are cutting through the red tape: Everstar is tackling nuclear energy’s biggest bottleneck—regulations. With a team from MIT and the CIA, they’re developing an AI-powered platform to streamline nuclear licensing and compliance. Their $4M round, led by Third Prime, is set to accelerate the clean energy transition. AltiusLabs is making blockchain more efficient. Their $11M round, led by Founders Fund and Pantera Capital, backs a modular execution stack designed to enhance interoperability across Layer-1 and Layer-2 chains.

The East Coast vs. West Coast startup rivalry is as strong as ever, but California remains dominant. In 2024, the state secured nearly 50% of all VC funding, while New York captured just over 10%. While NYC is gaining momentum, the Bay Area’s well-established ecosystem continues to give it an edge. However, emerging hubs like Austin, Boston, and Los Angeles are on the rise, attracting more investment and talent. Will California's lead endure, or are we seeing the beginning of a more distributed startup ecosystem? More insights inside our newsletter: https://lnkd.in/gk7-aHkS

Early-stage valuations are dispersing. What does that mean? The top decile of early-stage startup valuations surged by over $50M from 2023 to 2024, reaching record highs. However, median valuations are climbing slowly and steadily, widening the gap between the best-funded startups and the rest. Are we entering a market where only a few startups get sky-high valuations while others struggle to keep up? More insights inside our newsletter, sign up at the bottom: https://lnkd.in/gk7-aHkS

There were 66 pre-seed financings in January 2025 compared to 214 in January 2024. What’s going on? What you need to know: ??January 2025: $49.9M raised in 66 deals, averaging $1.13M per round ??Round sizes: YoY increase of >25% ??Market shift: Fewer deals, lower funding vs. late 2024—are investors getting more cautious? In January, pre-seed startups raised ~$49.9M across 66 deals—averaging $1.13M per round, with estimated valuations ranging from $295K to $16.3M. To compare, January 2024 saw $71.7M raised across 81 deals, averaging $885K per round, based on the same Crunchbase data reported at this time last year. Crunchbase data for January 2024 now shows $121M raised across 214 deals, with an average round size of $878K. So, while January 2025 is at 66 deals, there is likely a reporting lag, and the final number may rise as more data rolls in. Everyone loves pre-seed secrets, right? One thing’s clear: round sizes are growing. YoY, January’s average round size increased by more than 25%. With so much growth, someone might accuse them of getting Botox. Compared to late 2024, the market seems cautious—fewer deals, lower total funding. Is this just a January dip, or are early-stage investors tightening their belts?

January’s biggest pre-seed raise wasn’t in AI. It was in climatetech. According to Crunchbase data, Addis Energy took the crown for the largest pre-seed round of the month, raising $4.25M to revolutionize clean ammonia production through underground drilling. Other notable raises include: RyboDyn Inc. – A healthtech startup advancing immunotherapy innovations Rena Labs – An AI startup developing the first TEE (Trusted Execution Environment) for AI applications