Startup Monday: Latest tech trends & news happening in the global startup ecosystem (Issue 134- June 29)
Narine Emdjian, MBA
Federal Funding Expert Helping Startups & Nonprofits To Raise Non-Dilutive Capital
Welcome to Startup Monday, my weekly newsletter that recaps the week in the global startup ecosystem. To have this newsletter emailed to you, you can sign up here.
Top startup news to follow this week:
1. Robotics Startups On The Rise In 2024
So far, 2024 is shaping up as a not-so-shabby year for robotics startup funding.
Developers of workplace robots, robotic surgery technologies, and even humanoid models have all raised large rounds in the past six months. The artificial intelligence funding boom has also helped boost the space, with investors backing big deals at the intersection of AI and robotics.
Altogether, robotics startups have pulled in over $4.2 billion in seed through growth-stage financing this year, per Crunchbase data . That puts funding on track to exceed last year’s muted levels, albeit still below its cyclical peak, as illustrated below.
Funding To Robotics Startups, Seed Through Growth Stage*
Workplace robots
Where’s the money going? Per Crunchbase data, workplace robotics still accounts for the largest number of rounds, with startups looking to offset the need for human labor for tasks like delivering meals, pulling weeds and moving stuff in warehouses.
Among the largest recipients in this vein is San Francisco-based Bright Machines , a developer of software and robotics technology for factory manufacturing. The company raised $106 million in Series C funding, plus $20 million in debt, in a BlackRock -led financing announced Tuesday.
Among the largest recipients in this vein is San Francisco-based Bright Machines , a developer of software and robotics technology for factory manufacturing. The company raised $106 million in Series C funding, plus $20 million in debt, in a BlackRock -led financing announced Tuesday.
Another big round went to Silicon Valley-based Collaborative Robotics , which landed a $100 million General Catalyst -led Series B this spring. Its business model centers on building “cobots” or robots that can work alongside humans doing tasks like carrying boxes and moving industrial carts.
On the agtech front, Seattle-based Carbon Robotics has harvested a total of $85 million to date, with its latest funding raised in a May Series C. Its primary offering is an AI-enabled weeding robot that provides farmers a less labor-intensive way to reduce reliance on herbicides.
Redwood City, California-based Bear Robotics , meanwhile, snagged $60 million in an LG Electronics -led financing in March. The company makes a mobile robot capable of carrying trays or packages, which it markets to customers in hospitality, assisted living, warehouse operations and other industries.
2. AI chip startup Axelera raises $68M to broaden offerings from edge to cloud
Edge artificial intelligence chip startup Axelera AI B.V. , a Netherlands-based company that makes purpose-built silicon for generative AI and computer vision, today announced it has raised $68 million in new funding .
The company’s Series B funding round is Europe’s largest oversubscribed Series B round in the fabless semiconductor industry and brings Axelera’s total funding to date to $120 million.
Major institutional investors joining in the oversubscribed round included Invest-NL Deep Tech Fund, the European Innovation Council Fund, the Innovation Industries Strategic Partners Fund and the Samsung Catalyst Fund. Existing investors also participating included Verve Ventures, Innovation Industries, Fractionelera and the Italian sovereign fund CDP Venture Capital SGR.
Founded in 2021, Axelera AI is the developer of specialized computer chip hardware optimized to run AI software at the network edge, outside data centers. Its compute platform hardware accelerates AI inference, the processing that chatbots and computer vision do,?more efficiently and closer to the point where the data is produced.
The startup believes that by putting its technology closer to the point where the AI processing needs to happen, it can speed up AI interactions. This will allow AI to have greater impact and control when run across connected devices such as internet of things systems and industrial robots.
“There’s no denying that the AI industry has the potential to transform a multitude of sectors,” said Fabrizio Del Maffeo, co-founder and chief executive at Axelera AI. “However, to truly harness the value of AI, organizations need a solution that delivers high performance and efficiency while balancing cost.”
3. Alexis Borisy-founded VC raises $380M for early-stage biotechs
Venture capital firm Curie.Bio has fueled up, raising $380 million for biotech founders and promising to stretch the runway of seed money for?better long-term results. ????
The latest haul follows a $520 million initial fund and brings Curie.Bio ’s total to nearly $1 billion, according to a June 26 release . The funds are expected to go toward series A rounds that support clinical proof-of-concept studies.
The Cambridge, Massachusetts-based VC took flight in February 2023 and includes two entities: an investing vehicle that provides seed-stage money and a unit that provides various services to help companies move their science forward. ?
The company was co-founded by Zach Weinberg, founder of Flatiron Health (acquired by Roche in 2018), who pilots the VC. Former Third Rock Ventures Partner Alexis Borisy also helped the company take off and serves as operating chair, working alongside third co-founder Christoph Lengauer, Ph.D., also formerly of Third Rock, who serves as Curie.Bio ’s chief scientific officer.??
The VC offers the functions of a large biotech to early-stage companies via its “Curie co-pilots.” The 50-person team includes drug hunters and biotech leaders that help develop a seed work plan with budget planning, vendor selection, expert recruiting and a road map to critical scientific milestones. The firm also touts a network of more than 200 CRO partnerships that is used as “an on-demand R&D service” for portfolio companies.
4. Paradigm Raises $850 Million for Early-Stage Crypto Venture Fund
Venture capital firm Paradigm said it has raised $850 million for its third fund, which will focus on early-stage crypto projects.
Paradigm was previously an early investor and contributor for projects like crypto exchange Uniswap and Optimism, a way to scale the Ethereum blockchain. Paradigm — founded in 2018 by Coinbase Global Inc. co-founder Fred Ehrsam and ex-Sequoia Capital partner Matt Huang — is one of the largest VC investors in the industry. This is Paradigm’s first fund since Ehrsam stepped out of a leadership role with the San Francisco-based firm in October.
5. Hebbia raises nearly $100M Series B for AI-powered document search led by Andreessen Horowitz
Hebbia , a startup using generative AI to search large documents and return answers, has raised a nearly $100 million Series B led by Andreessen Horowitz, according to three people with knowledge of the matter.?
The round valued the company between $700 million and $800 million, although TechCrunch couldn’t verify whether that valuation is pre- or post-money. (One possible scenario is $700 million pre/$800 million post.) Hebbia disclosed in an SEC filing in May that it had by then raised $93 million out of a hoped-for $100 million, but we understand from two of the people that the round hit a near $100 million mark and has closed.
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Hebbia and Andreessen Horowitz didn’t respond to a request for comment.
Hebbia was founded in 2020 by George Sivulka, who launched the company while working on his PhD in electrical engineering at Stanford. Sivulka was inspired by his friends working in the financial industry who told him that part of their long work weeks was spent searching for information in SEC filings and other dense documents. Sivulka thought that AI could help them save hours at the office and give them more time for rest and sleep.
Hebbia’s AI can look over billions of documents at once, including PDFs, PowerPoints, spreadsheets and transcripts and return specific answers, the company says.
The startup sells primarily to financial service firms, including hedge funds and investment banks. But its product could also be used by law firms and other professional domains.
6. Austin-based Ironspring Ventures raised $100M to invest in the industrial revolution
When Ironspring Ventures launched in 2020 to back startups in industrial sectors like construction and manufacturing, it was one of very few early-stage venture firms paying attention to those capital-intensive sectors. Now, the firm is doubling down.
The Austin, Texas-based firm raised $100 million for its second fund to focus on industrial startups. This is a noticeable increase from the firm’s $61 million debut fund that closed in 2021. This latest raise enabled the firm to hire its first principal, Colleen Konetzke, and a head of platform, Stephanie Volk. The firm plans to invest Fund II into 20 startups, backing four to five companies a year.
“What we saw back then was as true as we see today,” Ironspring co-founder and general partner, Ty Findley told TechCrunch. “There is a big gap in the venture industry that deeply studies and has genuine GP market fit with these industrial markets and can help them navigate a pretty challenging go-to-market [process]. When you really roll [these industries] up they are over half of the U.S. GDP. My strong opinion is, we as a country simply can not afford to let the U.S. get left behind.”
The industries Findley is referring to include: manufacturing, construction, transportation and energy. The firm backed 16 companies in its first fund, including Solvento, a payments infrastructure startup for trucking companies in Mexico; OneRail, a last-mile logistics startup; and Prokeep, a communications platform for distributors, among others.
7. Synthflow picks up $7.4M for no-code voice assistance for SMEs
What is AI good for? Automating repetitive tasks for the very busy people running small businesses, reckons Berlin-based startup Synthflow , which is announcing a $7.4 million seed round for its SME-focused no-code platform for AI voice assistance.
Since being founded around spring last year, the startup has now banked a total of $9.1 million, underscoring ongoing investor enthusiasm for accelerating applications of generative AI.
The startup also claims to be approaching 1,000 customers — touting “double-digit” monthly growth rates since it stepped out of stealthy development to launch its browser-based “no code” tool in December 2023. That suggests there’s a healthy appetite among SMEs to adopt — or at least experiment with — generative AI tools that promise easy-to-reach productivity gains.
The new funding will be plowed into R&D, according to Synthflow CEO and co-founder Hakob Astabatsyan, who says the team is keen to keep stoking its early momentum by increasing product utility and broadening the scope of SMEs to which it’s appealing.
“We have very many ideas. We know exactly what the customers need,” he tells TechCrunch.
Astabatsyan, a serial entrepreneur with a business background, is ex-Rocket Internet. Joining him in his latest venture are his brother, Albert, who also worked with him on a prior no-code startup; and Sassun Mirzakhan-Saky, who brings a software engineering background and CTO expertise to the team.
8. Prague-based Rohlik Group secures €160 million to expand its food retail tech in DACH and CEE markets
Rohlik Group , an European food retail technology and online grocery leader, announced it has successfully raised €160 million in fresh growth capital. The investment was led by the European Bank for Reconstruction and Development (EBRD), alongside existing investors Sofina, Index Ventures, Quadrille, and TCF Capital and complemented by growth capital funding from the European Investment Bank (EIB) under its Scale-Up Initiative. The investment will be used to fuel Rohlik’s ambitious expansion plans in DACH and CEE, where the company aims to establish its presence in more than 10 additional cities by 2030.
Founded to meet the growing demand for online grocery services that offer superior quality and better customer experience, Rohlik has achieved rapid and sustainable growth across the DACH and CEE regions. The company now delivers over a million orders per month, and served over 800,000 customers in 2023. It has now reached profitability in Munich, having already done so in the Czech Republic and Hungary, validating its economic model in Germany and proving its ability to scale efficiently and sustainably. In September 2023, Rohlik acquired Bringmeister, further strengthening its footprint in Germany.
Tomá? ?upr, founder and CEO of Rohlik Group, said: “There is huge demand across Europe for online groceries delivered quickly and reliably without any compromise on quality. We don’t see that as a short-term phenomenon, but as a long-term opportunity around which to build a market-leading proposition. At Rohlik, we have built the technology to deliver on that promise in a sustainable and profitable way, leveraging AI, ML and robotics technology with our obsession with customer service to drive maximum efficiency and high productivity. This funding will allow us to accelerate our growth, opening facilities in more than 10 new cities, and set the standard in online grocery delivery across Europe.”
Despite the challenging macroeconomic environment and a period of turbulence in the industry, Rohlik has grown by 40% post-COVID. Rohlik’s ability to drive sustained growth and achieve profitability in key markets is a testament to its robust performance and compelling value proposition. The company’s success is driven by a best-in-class local assortment of goods, which ranges from fresh food from local farmers and artisans to supermarket goods, pharmacy items and private label brands, alongside competitive prices, high levels of customer service and fast, reliable delivery, powered by an innovative proprietary technology infrastructure.?
Rohlik operates fully automated fulfillment centers, leveraging a host of AI, ML and robotics technologies to drive efficiency and high productivity without compromising on quality. These technologies are implemented across the business to provide customers with high-quality service at every step of the journey. Rohlik offers highly reliable 15-minute delivery windows and same-day deliveries available as soon as 1 hour after booking. Ninety-seven percent of Rohlik’s deliveries are on time.
By combining its advanced technology with a customer-centric approach, Rohlik has created a business model that is both efficient and replicable. This has helped the company near break-even in all its existing markets – meaning the new funds can be used purely for growth and market penetration rather than operational needs. Rohlik is currently targeting revenues of over €1 billion with positive cash flow for the 2024 financial year.
9. Zurich-based Libattion a leader in upcycled energy storage raises €14 million aiding industry decarbonisation
Libattion , a fast-growing, leading-edge company offering stationary energy storage solutions from upcycled electric vehicle batteries based in Zurich, has secured a total of €14 million . The round was led by A&G Energy Transition Tech Fund and Spanish automotive components manufacturer Teknia, the Portuguese fund HCapital New Ideas II and Swiss energy utility company EBL.
This significant investment reflects the increasing demand for green battery storage systems across Europe. Libattion aims to provide the market with sustainable and cost-effective battery technology, reducing the import of critical resources and contributing to the decarbonisation of various industries.
The company is known for its unique algorithms and power control systems that extend the service life of upcycled batteries, ensuring their performance matches that of new batteries. Libattion’s innovative energy storage systems, called “e-Racks,” cover a wide range of capacities, from 97 kWh to 60 MWh, offering modular and versatile solutions. These systems provide energy flexibility services such as frequency control, peak demand reduction, and fast EV charging. They are also ideal for supporting critical infrastructure and hybridising renewable assets to store surplus energy.
Stefan Bahamonde, Libattion’s CEO and co-founder stated: “We strongly believe in the transition from electric car batteries to stationary systems as an alternative energy storage system. We are very pleased to have strong partners on board who will help us achieve the next milestones. The successful investment round is a clear indicator of Libattion’s strength and resilience, as well as our enormous potential for future growth. The arrival of new partners will allow us to significantly increase our global presence, expanding our operations both in Europe and globally. We are determined to revolutionize the way in which the efficient use and reuse of batteries is managed, thus driving the transition to a more sustainable and energy-efficient future.”
Juan Diego Bernal, Managing Director of A&G Energy Transition Tech Fund, highlighted: “Libattion has all the key ingredients to become the European benchmark in its market. Its technology is on the right path to solving two major problems of the energy transition: providing an economic alternative to the growing problem of waste from electric vehicle batteries and offering an optimal supply alternative for stationary energy storage.”
Alejandro Deleyto, Director of Strategy at Teknia, said: “This investment fits perfectly with Teknia’s strategic plan, which is firmly committed to sustainability as a key pillar in our business as a manufacturer of mobility components.”
10. UK-based PortSwigger raises €104.7 million to double down in the web security space
Cheshire-based PortSwigger , an application security software provider, announced it has raised €104.7 million from Brighton Park Capital, an investment firm focused on entrepreneur-led, growth-stage companies within the software, healthcare, and tech-enabled services businesses space. The fresh capital will serve to fuel the growth of the company.??
PortSwigger’s first-ever external investment marks a significant milestone, enabling the company to accelerate product development, expand its research and community-focused initiatives, strengthen its international footprint, and continue its trajectory of innovation.
PortSwigger was founded in 2008 by Dafydd Stuttard (“Daf”), a renowned thought-leader in application security, former ethical-hacker and author of “Web Application Hacker’s Handbook” – a leading textbook on web application security.?
“We are entering an exciting new chapter at PortSwigger, and our partnership with Brighton Park is a pivotal part of this journey,” said Stuttard, Founder, CEO, and “Chief Swig” at PortSwigger. “This investment will allow us to enhance our offerings with features that meet the sophisticated, cross-functional needs of large enterprises while maintaining the agility and precision that individual security professionals require. Moreover, this investment will allow us to deepen our commitment to the community through increased investment in research and free-to-use tooling, leading to more robust community support and contributions to drive the entire application security ecosystem forward.”
The company is best known for its flagship product Burp Suite Professional, a premium toolkit for web application penetration testing, and its newer product, Burp Suite Enterprise, a dynamic application security testing solution that enables automated security testing of applications and APIs. Today, PortSwigger serves nearly 20,000 customers of all sizes, including Microsoft, Amazon, FedEx, Salesforce, among others.
Beyond its commercial products, the company also makes an extensive commitment to the cyber security ecosystem by making versions of its tools, extensive learning resources, and research freely available. PortSwigger’s free tools and “Web Security Academy” have been used by millions of individuals and teams globally.?
Stuttard continued: “We sought a partner who brought a deep understanding of the domain and market and was aligned with our vision for innovation and growth – and Brighton Park is just that. The firm brings deep market knowledge, proven expertise in go-to-market strategies, and a track record of scaling businesses both in the US and globally. Beyond this expertise, Brighton Park shares our ethos and ambition around contribution to the broader cyber security community – a crucial element of our culture and mission. With Brighton Park’s support, we’re poised to expand our reach and impact, delivering unparalleled solutions to the cybersecurity challenges of today and tomorrow.”