Even in uncertain times, some startups continue to attract significant funding, particularly in the areas of security and sovereignty. This week’s roundup of startup news highlights the resilience of these sectors, with several notable funding rounds and acquisitions.
Counterintuitively, AI startups have seen a surge in investment, raising $110 billion in 2024, a 62% increase compared to the previous year. This is despite an overall 12% decline in startup funding. Additionally, European startups in the defense, security, and resilience tech space raised a record $5.2 billion last year, accounting for 10% of all venture capital funding in the region.
French champion Mistral AI has garnered attention for its AI assistant, Le Chat, which has become the most downloaded iOS app in France. In the security realm, compliance firm Data has acquired SafeBase, a software security review startup, for $250 million. CyberArk, an identity security company, has also made a $165 million cash purchase of Zilla Security, with an additional $10 million contingent on milestones.
Beyond security, several startups across various industries have announced funding rounds. Zeta, a provider of banking software, has raised $50 million, increasing its valuation to $2 billion. QuEra, a Boston quantum startup backed by Google, has secured $230 million in debt financing. Chestnut Carbon has closed a $160 million round to pursue its mission of afforesting former agricultural land.
Harrison.ai, an Australian health tech startup, has raised $112 million for its AI-enabled medical diagnostic software. Candid Health has secured $52.5 million to simplify medical billing. Latent Labs, a biotech startup founded by a former DeepMind researcher, has emerged from stealth mode with $50 million in funding. Israeli startup Voyantis has raised $41 million to develop AI for predicting customer lifetime value.
Additionally, Peter Thiel’s Founders Fund is reportedly raising its third growth fund, targeting $3 billion. This is a testament to the continued appetite for investment in promising startups, even in a challenging macroeconomic environment.
In conclusion, the startup ecosystem remains vibrant, with AI and security startups demonstrating resilience and attracting significant funding. These technologies have the potential to shape the future of various industries and address critical societal challenges.
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