??? VC struggles as startup exits slow

Today we dive into two of your favorite areas: venture capital and AI landscapes.

PitchBook reports a significant slowdown in startup exits, impacting VC returns and leading to a rise in insider rounds and bridge financings to keep companies afloat. And hey, we know—everyone (including startups) sometimes needs a little “you’ve got this” pep talk (and cash) to keep going.

Meanwhile, European startups like Monumo are leveraging AI models trained on physics equations to revolutionize engineering, promising more sustainable and efficient solutions. Somewhere, Isaac Newton just shed a tear of joy.

Also featured: Scope3’s $25M raise to track AI's carbon footprint, aligning economic and environmental goals.

Enjoy this Startup Club edition and have a great weekend!?

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Six bullets of updates

1. ???Scope3 raises $25M to?track AI's carbon footprint, aligning economic and environmental costs in advertising.
2. ? Why Dubai-based?VCs are looking to invest in European climate tech. Opportunities, investment, and visibility.
3. ???Is there a clear path for?women VCs to become partners? Here's how to make it to partner (for those who want to)
4. ???Swiss startup Aktiia uses AI on 11B data points?to create a phone app that?measures blood pressure without?cuffs.
5. ???A 'Cybercab,' a surprise 'Robovan,' and a bartending robot:?5 takeaways from Tesla's robotaxi launch?(in case you haven’t seen them yet).
6. ?? Billionaire Bhatt?launched Aetherflux, aiming to beam solar power from space. A?demo mission is?set for 2025/26.

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Startup exits slow, pressuring VCs and investors

PitchBook, a deal analysis firm, reports that the?slowdown in startup exits significantly affects the venture capital ecosystem. The report highlights that many current fundings are insider rounds or bridge financings to keep companies afloat. At the same time, returns to limited partners (LPs) have dropped to levels seen during the global financial crisis. This has led to a decrease in investment activity, with only 45.5% of the VCs and angel investors from 2021 still investing in startups in early 2024.

PitchBook also reveals that?VCs hold unicorns valued at $2.5 trillion, with nearly 40% of these companies being in portfolios for nine years or more. The backlog of startups awaiting exit has reached 57,674 companies, with late-stage firms making up 32.4%.

The report indicates that growing pressure in the venture ecosystem is due to the limited flow of cash back to investors and the extended holding periods for many late-stage companies.?Read the report.

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Startup Events and Deadlines

1. Financial Modeling Bootcamp?| October 14 - 18 | Course
2. From Pitch Deck to Funding?| October 17 | Webinar
3. Crash Course in Financial Modeling?| October 23 | Webinar
4. Techstars New York City Accelerator?| November 20 | New York City
5. Techstars Anywhere Accelerator?| November 20 | Remote

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These companies just raised money

1. ?? EvenUp, a legal tech startup creating artificial intelligence products for the personal injury sector,?raised a $135M Series D.
2. ??? Relyance’s solution is an engine that scans an organization’s data sources. They landed $32M to?help companies comply with data regulations.
3. ???Accounting AI startup Numeric raises $28M Series A,?boosts revenue 4x, and automates month-end closings.
4. ?? Fintech Barte?secured a $8M Series A to?expand its B2B payments platform, which simplifies?transactions for businesses.
5. ???Brazil's Intelijus?secured?$510K pre-seed to supercharge LIVIA, its AI legal agent that automates?lawyer tasks.
6. ?????Tuna, a?Brazilian fintech company, raised $360K to strengthen the team, streamline operations, and?prepare?for a Series A round.

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AI’s impact on trillion-dollar industries

European startups are?moving beyond traditional language models?(LLMs) by using AI trained on physics equations to optimize engineering tasks like designing electric motors, cars, and semiconductors. Companies like Cambridge-based Monumo are developing AI solutions that integrate components into cohesive designs, significantly improving energy efficiency. These innovations aim to tackle trillion-dollar industries, offering sustainable alternatives to traditional methods that reduce emissions and enhance product performance.

Monumo and others, like London-based PhysicsX, are?partnering with major automotive and aerospace companies?to implement these technologies. These technologies boast faster and more efficient design processes than conventional simulations. Using physics-based AI models that require less data and energy, these startups provide a more environmentally friendly and efficient approach to AI, promising significant returns while minimizing carbon impact.?Read more.?

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Budgeting a Startup Funding Round

Join our online one-hour webinar to master driver-based financial modeling and elevate your business strategy. Learn from Caya as he builds a model using Slidebean's free template, offering insights for data-driven decision-making. Perfect for founders aiming to optimize their financial skills.?Subscribe to our channel.

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