Startup Monday: Latest tech trends & news happening in the global startup ecosystem (Issue 152- January 25)

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. Madrona raises $770M for new funds — here’s what the Seattle VC firm is betting on

Madrona’s, the largest venture firm in the Pacific Northwest, raised $770 million for two new funds as the longtime Seattle-based investor looks to back a new batch of tech startups.

The new fund, the firm’s tenth, is up from Madrona’s $690 million fund in 2022, and its $345 million fund in 2020. It is split between two investing vehicles: a traditional fund for early stage startups (about 60% of the $770 million), and an “acceleration fund” for more mature companies, including those that Madrona may have missed out on.

Madrona expects to invest in about 30 companies at the pre-seed, seed, or Series A stage from the new funds, and about 12 at the Series B stage and beyond.

Venture capital firms have slowed their pace of fundraising dramatically amid higher interest rates and muted exit activity.

After raising a whopping $188 billion across 1,625 funds in 2022, venture firms reeled in $76.1 billion across just 508 funds in 2024, according to PitchBook.

Established firms such as Madrona had an edge over newer funds and captured more LP dollars in 2024, raising 79.4% of total capital — the highest concentration in the last decade, according to PitchBook.

McIlwain said limited partners are concerned broadly about “DPI,” or distributions to paid-in capital, a measure of how much money the firm returns to its backers.

After a venture capital boom in 2021–22, fewer companies are going public or getting acquired. That’s leaving LPs wondering when they’ll be able to liquidate their investments.

But Madrona had a “great” year for DPI in 2024, McIlwain said, pointing to portfolio company exits such as pet-sitting giant Rover, which sold to private equity firms, and legal tech startup Lexion getting acquired by Docusign.

Conversations with portfolio companies are about “foot on the gas for operating plans,” McIlwain told GeekWire.

As for new investments, Madrona is making various AI bets “up the stack” in companies beyond the model layer.

“We think a lot of the value is going to be captured in the agentic and application layers,” McIlwain said. In other words, companies that develop software for a specific customer problem in a particular domain.

While the firm may be avoiding startups going up against the likes of OpenAI or Anthropic, it is keeping an eye out for companies that build underlying infrastructure for AI applications.

2. ElevenLabs has raised a new round at $3B+ valuation led by ICONIQ Growth, sources say

Companies that want to build AI voice into their products are rushing to work with ElevenLabs, the startup that develops synthetic voice technology like voice cloning and dubbing tools. Now ElevenLabs is turning up the volume on its business with a huge Series C raise, just a year after a sizable Series B.

On the back of a strong funnel of business, sources tell us that ElevenLabs was initially looking for funding at a $4 billion valuation. But a $3 billion valuation is still triple the unicorn valuation that the company landed with that year-ago Series B. One source said the company has been preparing to announce the round this month so official confirmation may come any day now.

ElevenLabs’ fundraise comes after a strong few years both for the company and the wider industry. The company was founded in 2022 by Mati Staniszewski and Piotr Dabkowski, who respectively previously worked at Palantir and Google. Childhood friends from Poland, the pair were inspired by the poor quality of dubbing in the American videos they watched growing up, and they saw an opportunity to use AI to develop something better.

Their idea was a clear example of right idea, right time. As generative AI services have become more advanced, multimedia has come to the fore, and there has been a growing interest in building applications that include sound and video alongside GenAI text services.

3. Allara lands $26M to expand women’s hormone telehealth

Growing up with an OB-GYN father, Rachel Blank assumed that most women received excellent gynecological care. She regularly witnessed her dad’s patients thanking him for delivering their child when they would bump into him around town.

But Blank realized that not all women’s health issues are treated equally when, at the age of 21, she was diagnosed with polycystic ovary syndrome, or PCOS. That’s a reproductive and hormonal condition that can cause irregular periods, infertility, and weight gain.

Although Blank had access to top-tier care, she discovered that most OB-GYNs are not trained to treat hormonal conditions. “There weren’t a lot of places for me to go, because the concept of a specialist for my condition didn’t exist,” she told TechCrunch.

Blank had to do her own research, which involved seeking help from various specialists, including dieticians and endocrinologists to find a treatment.

Allara started as a subscription service for which patients paid out of pocket. But over the last year the company formed partnerships with most major health insurance providers, including Aetna, Blue Cross Blue Shield, Cigna, Humana, and United Healthcare, which now cover Allara’s services in 10 states. Blank said that the company will use some of its Series B capital to expand its insurance coverage nationwide.

4. Everstone acquires bootstrapped Indian startup Wingify for $200M

Private equity firm Everstone is acquiring a majority stake in , one of India’s , for about first bootstrapped SaaS success stories , three sources familiar with the matter told TechCrunch.$200 million

The deal, finalized this week, marks a significant exit for Wingify’s founder Paras Chopra, who built the startup without raising any external funding since its inception in 2010.

Delhi-based Wingify has grown from a two-person startup into a profitable global software provider with over 6,000 clients. Its flagship product, Visual Website Optimizer (VWO), helps businesses improve their online conversion rates through A/B testing and customer experience optimization.

The startup’s annualized revenue recently touched $50 million.

Chopra, who will also remain on the board of the company, said in a statement a day after the publication of the report: “I am confident that Sparsh [Gupta, co-founder of Wingify] and the Everstone team possess the expertise and vision to lead the business through its next phase of success. I look forward to remaining involved as a shareholder and board member, providing guidance and support to ensure the company’s continued achievements.”

Wingify serves over 6,000 clients across 90 countries, competing with global players like Optimizely and Bloomreach. Wingify’s product suite is priced based on visitor volume, ranging from a free tier for up to 50,000 visitors to enterprise plans costing $70,000.

The acquisition adds to Everstone’s growing technology portfolio. The private equity firm has been actively investing in India’s technology sector, seeing opportunity in profitable, bootstrapped companies with global reach.

“Wingify is among a select set of highly profitable software companies emerging out of India that have carved a leading position globally,” said Sandeep Singh, managing director of Everstone Capital, in a statement on Friday.

“It is our second significant investment in the marketing technology space in the past 18 months. We congratulate the founders, Paras and Sparsh, on their journey and look forward to working with Sparsh and his team in Wingify’s next phase of growth.”

5. Trump announces private-sector $500 billion investment in AI infrastructure

• Tech leaders credit Trump win for initiative
• Stargate plans construction of 20 data centers
• Trump says project will create 100,000 jobs

These companies, along with other equity backers of Stargate, have committed $100 billion for immediate deployment, with the remaining investment expected to occur over the next four years.

SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman and Oracle Chairman Larry Ellison joined Trump at the White House for the launch.

The first of the project’s data centers are already under construction in Texas, Ellison said at the press conference. Twenty will be built, half a million square feet each, he said. The project could power AI that analyzes electronic health records and helps doctors care for their patients, Ellison said.

The executives gave Trump credit for the news. “We wouldn’t have decided to do this,” Son told Trump, “unless you won.”

“For AGI to get built here,” said Altman, referring to more powerful technology called artificial general intelligence, “we wouldn’t be able to do this without you, Mr. President.”

It was not immediately clear whether the announcement was an update to a previously reported venture.

6. Lightspeed’s $2 Billion Anthropic Megadeal Cements VC Firm’s AI Ambitions

With $25 billion under management, Lightspeed is part of a rarified strata of VC firms willing and able to back tech’s hottest, and most expensive, companies. In addition to Anthropic, Lightspeed has recently participated in a large funding round for artificial intelligence company Databricks Inc. that valued it at $62 billion, as well as an investment in Elon Musk’s xAI at a $50 billion valuation.

AI megadeals have become a staple of the top-tier VC diet despite the risks, including that firms haven’t yet proven they can profit off these investments.

“It’s high-stakes poker,” said Sierra Ventures Managing Partner Tim Guleri, an AI investor.

In the past three months alone, xAI, OpenAI and Anthropic have raised more than $20 billion to support their hefty computing costs. Those deals collectively valued the three companies at more than $250 billion. Altogether, US AI startups raised a record $97 billion in 2024, according to PitchBook data.

For venture capitalists, there is rising pressure — particularly on those that missed the chance to back the top AI companies at lower prices — to align themselves with the leading players before it’s too late, investors said. Representatives for Lightspeed and Anthropic declined to comment for this story.

“It shows you’re in the game,” said Peter Werner, co-chair of Cooley’s venture capital practice group. “What you don’t want to be is a venture fund that is trying to be in the mix, missing out or developing a reputation that you’re not nimble enough to get into the best and hottest rounds.”

Lightspeed was founded more than 20 years ago on the heels of the dot-com bust by Barry Eggers, Christopher Schaepe, Peter Nieh and Ravi Mhatre, who led the Anthropic negotiations. It’s best known for savvy investments in consumer technology, fintech and enterprise software, making early bets on companies like Snap Inc., Affirm Holdings Inc. and Rubrik Inc. Despite its track record, the firm has yet to become as much of a household name as some of the most famous tier one VC players. With its aggressive AI bets, insiders say these deals could permanently elevate its standing — if they succeed.

7. Foyer unlocks $6.2M to help people save up to buy homes

Landy Liu knows how hard it is to save for a home.

“We believe homeownership is a vital part of the American dream and first-time home buyers need all the help they can get,” he added.

On Foyer, users can create target savings goals and access personalized guidance on the best ways to save for a home, information about mortgage rates, and choosing a real estate firm. The company has a subscription model, offering memberships to users looking for more support. It can connect users with real estate professionals and also allows customers to earn rewards that can be used toward a home purchase.

“Real estate service providers spend billions annually marketing to end users and now they are able to more directly support the financial wellness of aspiring home buyers,” Liu said.

Buying a home has become quite challenging in the past few years, with many aspiring home buyers finding themselves priced out of the market completely, far away from hitting the milestones that generations previously hit at young ages. “Saving for one’s home requires better planning than ever,” he said.

“Homeownership plays a crucial role in building long-term financial security, particularly for underserved communities that have historically been shut out of wealth-building opportunities,” Amee Parbhoo, a managing partner at Accion Venture Lab, told TechCrunch.

David Goldberg, general partner at Alpaca VC, said what drew the firm to Foyer was its “reimagined approach to homeownership.”

“The combination of high-yield savings, education, and strategic partnerships makes this a compelling bet on the future of home buying,” he told TechCrunch.

Liu said he met the lead investors through mutual connections in the fintech and proptech space. For now, Liu said Foyer’s main competition is traditional savings accounts. Foyer launched last year in Michigan but has since spread throughout the country, attracting more than 10,000 users, it said.

The fresh capital will help the company expand and enhance product features.

“Home affordability is in crisis and yet homeownership remains the greatest source of wealth creation for middle-class and minority families in the United States,” Liu said. “Foyer is providing a solution for first-time home buyers, a dedicated savings account that works for the next generation of homeowners.”

8. Amplience secures €37.9 million to enhance e-commerce content solutions

Amplience, a London-based provider of headless content management solutions, has raised €37.9 million in funding in order to enhance its platform capabilities, and invest further in its product roadmap to deliver greater value to its enterprise customers across EMEA and North America.

The investment brings the company’s total funding to over €249 million.

Bart Cloyd , Co-CEO and CFO of Amplience, shared the company’s vision: “This funding will help support our growth and fuel further investment in our platform, product roadmap, and most importantly, in delivering enhanced value to our customers. By strengthening our ability to meet their evolving needs, we aim to deepen our partnerships and support their success .”

Founded in 2008 by James Brooke and Rory Dennis, Amplience was among the early players advocating for headless content management. Its solutions integrate Content Management Systems (CMS) and Digital Asset Management (DAM) within customer tech stacks, helping to enhance user experience, boost conversion rates, and reduce content production costs.

The company serves blue-chip customers across EMEA and North America, enabling seamless content creation, management, and distribution across websites, emails, apps, and social media channels.

The firm has recently embraced AI to streamline content production at scale, further solidifying its leadership position in the composable architecture space.

AshGrove Capital’s involvement builds on Amplience’s previous partnerships with Farview Equity Partners and Octopus Ventures. The financing not only enhances Amplience’s operational runway but also reflects AshGrove’s confidence in the shift towards composable architectures.

James Cunnah , Director at AshGrove Capital, stated: “ Amplience is a business we have known for a number of years. We were approached directly by the shareholders who valued the edge we bring through our understanding of the business and the sector. We are excited to support their growth journey from here and greatly look forward to working with Farview, Octopus, and the management team .”

9. StormHarvester bags €9.7 million to drive global expansion and tackle wastewater challenges

The funding round was led by YFM Equity Partners (YFM), with additional investment from Emerald Technology Ventures, a leading in CleanTech venture capital.

“ Expensive-to-replace networks, urbanization, climate change, and population growth are putting a huge strain on wastewater systems, and this has resulted in increased flooding and pollution. StormHarvester’s AI solution is solving these problems, identifying issues before they happen and facilitating proactive intervention. Our technology not only improves operational efficiency for utilities but also plays a critical role in reducing pollution, protecting vital water resources, and supporting a healthier environment ,” said Brian Moloney , CEO of StormHarvester.

Founded in 2019 by Brian Moloney and Neil Macdonald, StormHarvester has developed an automated water management software platform that leverages machine learning and rainfall prediction to help wastewater utilities optimise sewer network operations and reduce environmental pollution.

By using predictive analytics and anomaly detection, the platform identifies potential issues before they occur, enabling utilities to take proactive measures to prevent flooding and pollution events. This technology significantly contributes to the protection of natural waterways and compliance with environmental regulations.

Since its inception, StormHarvester has become a trusted partner for UK wastewater utilities, with its software adopted by 75% of UK water utility companies. Its ability to detect sewer blockages, monitor pumping station anomalies, and identify inflow and infiltration in sewer networks has resulted in tangible reductions in pollution incidents and improved operational efficiency for its customers.

According to StormHarvester, the rapid adoption of their technology reflects the growing urgency to address the pressures facing wastewater systems, such as urbanisation, climate change, and ageing infrastructure. These challenges are driving demand for smarter, data-driven solutions.

10. Startup studio 4elements raises €27.4 million to create the next flagships of the climate transition

This first round of funding has been raised from the European Investment Fund (EIF), alongside France 2030’s French Tech Acceleration 2 Fund, managed on behalf of the French government by Bpifrance, Greenpact and several family offices.

According to 4elements, the cost of inaction is far greater than the cost of adaptation, arguing that at the macroeconomic level, many studies show this. This could cost companies up to 7% of their annual revenues by 2035, according to a recent study by the Word Economic Forum (WEF) and Accenture.

“ This round of financing will enable us to provide adapted and progressive funding, up to 6 million euros per startup, depending on the different stages of maturity of the projects, throughout Europe, with priority given to the French market ,” explains Cédric Favier , Co-founder of 4elements.

Entrepreneur and investor Cédric Favier (ex Elaia) and venture building specialist Jean-Baptiste Goffart co-founded 4elements in 2023, recently taking on board deeptech entrepreneur Cédric Boisart as a partner.

The team builds and finances startups from idea to product-market validation, with operational involvement. It plays the role of Co-founder, identifying the keys to success, defining the value proposition and preparing for market access: product development, industrialisation, innovation marketing, sales, strategic positioning, etc.

Its targets are exclusively high-impact projects that meet proven or emerging market needs, and benefit from a strong technological differentiator.

🔥 Join the others and subscribe to the Startup Monday newsletter | Subscribe on LinkedIn

Follow me (Narine Emdjian, MBA ) on LinkedIn and see more tech trends and the latest federal funding opportunities