Startup Monday: Latest tech trends & news happening in the global startup ecosystem (Issue 153- February 1)

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. 9 Steps To Generate Investor Interest In Your Startup Project by Forbes

Consequently, many startup projects undergo multiple rounds of fundraising in their different stages of development, especially once they successfully validate their offering but need growth capital.

Step 1: Clarify Your Idea And General Narrative

When pitching to investors, a well-defined business idea and a compelling narrative are essential. Clearly explain what your startup offers, who your target customers are, and why your solution is needed in the market. Investors need to see a clear path to success, and if you are uncertain about your direction, it will be difficult to convince them to take a risk.

For example, companies like Airbnb and Uber succeeded in their early fundraising efforts because they had simple, easy-to-understand narratives about how they improve existing services and disrupt markets. This is the reason shorthands are often used in the startup field — e.g. “the Uber for X industry”. It makes it much easier to understand what exactly you are trying to achieve.

Step 2: Build A Strong And Complete Team

Investors often invest in people more than just ideas. A competent and motivated founding team increases the chances of startup success a great deal. Ensure your team has the necessary technical and marketing expertise, a strong understanding of your industry. If you’re missing key skills in your founding team, consider bringing in experienced co-founders or early employees to strengthen your startup’s credibility.

Step 3: Validate Your Idea And Assumptions

Before seeking investment, validate your idea beyond friends and family. Early-stage investors need concrete proof that your startup has market potential. This can be achieved through customer interviews, prototype testing, or early pilot programs.

For example, Dropbox validated its concept with an explainer video that attracted thousands of signups before they even built the product. This kind of validation demonstrates market demand and reduces investor skepticism.

Step 4: Gather Traction Numbers

Traction is one of the most persuasive indicators of potential success. Investors look for data that shows your startup is making progress. Traction can be measured in various ways, including user growth, revenue, customer retention, or engagement rates.

For SaaS startups, metrics such as Monthly Recurring Revenue (MRR) and churn rate are crucial. If you can show steady customer acquisition and retention, investors will be more inclined to back your startup. Even if your startup is pre-revenue, demonstrating strong user adoption or waiting lists can be valuable evidence of demand.

Step 5: Demonstrate Product-Market Fit

Startups that have achieved product-market fit (PMF) have a significantly better chance of securing investment. PMF means your product meets a strong market demand, leading to organic growth and repeat customers. To prove PMF, showcase customer testimonials, strong engagement metrics, and positive reviews. High retention rates or increasing customer lifetime value (LTV) signal that your product resonates with your market.

Step 6: Present A Scalable Business Model

Investors are primarily interested in scalable businesses with high growth potential. They look for startups that can generate significant revenue without proportionally increasing costs. Companies with a high Customer Lifetime Value (CLV) and low Customer Acquisition Cost (CAC) are particularly attractive.

For instance, venture capital firms avoid businesses like consulting agencies, where revenue growth is directly tied to workforce expansion. Instead, they prefer technology-driven startups with scalable products, such as SaaS platforms or marketplace businesses.

Step 7: Define Your Long-Term Vision

A well-articulated long-term vision helps investors understand where your company is headed. Investors want to know your end game-whether it’s an IPO, acquisition, or becoming a dominant player in a niche market. A clear vision should outline how your startup can expand over time. Even if your business is small today, investors need to see its potential to grow into a large, valuable enterprise. Companies like Tesla and Amazon were able to attract investment early on by presenting ambitious but credible long-term roadmaps. Amazon was able to run on a loss for years thanks to the (justified) belief of investors that they were building a monopoly in online retail.

Step 8: Highlight Your Unique Selling Proposition And Defensibility

Your startup must have a defensible advantage to prevent competitors from easily replicating your business model. Investors look for startups with strong competitive moats, such as network effects, proprietary technology, or unique branding.

For example, social media platforms like Facebook benefited from network effects-once users joined, it became harder for them to leave. Similarly, companies with patents or exclusive partnerships create barriers to entry for competitors.

Step 9: Build Social Proof

Investors are more likely to trust startups that already have credibility in the industry. Social proof can come in various forms, such as media coverage, endorsements from industry experts, or backing from reputable early-stage investors. Strong testimonials from satisfied users or partnerships with well-known brands can also enhance your startup’s appeal.

2. Seattle biotech startup Tune Therapeutics lands $175M to support clinical research

Tune Therapeutics , a biotech company with headquarters in Seattle and Durham, N.C., raised $175 million in one of the largest funding rounds for a Seattle-area startup in recent years.

The startup recently launched its first clinical trials in New Zealand and Hong Kong where it’s testing an epigenetic treatment for chronic Hepatitis B. The condition afflicts more than 250 million people global and is the leading cause of liver cancer. The new funding will support these studies.

The approach addresses the fact that many diseases and conditions are not due to the absence or presence of a genetic mutation. Instead, the ailments can be caused by the misregulation of how a gene functions, making too much or too little of a protein.

Tune uses tools from targeted genetics to direct an “effector” to the misbehaving gene. The effector is able to alter the gene’s behavior for a controlled amount of time. Tune’s approach also employs lipid nanoparticle (LNP) technology that became commonly used in COVID shots to deliver the vaccine.

“We have the benefit of standing on the shoulders of a lot of the cell and genomic medicine companies that have come along the way over the last 15 years or so,” Matsuno said.

Tune launched in 2020 and has 80 employees, roughly evenly split between its labs in Seattle and Durham.

Matsuno was previously the chief financial officer and head of corporate development at Seattle area’s Lyell Immunopharma and served in vice president roles at Juno Therapeutics.

Fyodor Urnov is Tune’s third co-founder and serves on its scientific advisory board. Urnov is a professor at the University of California, Berkeley, and previously was an associate director at Seattle’s Altius Institute for Biomedical Sciences.

Tune has built a genetic tuning platform that it calls TEMPO, which can be applied to wide-ranging health conditions.

Tune will be enrolling patients in its Hepatitis B clinical trials and delivering treatment through 2025. Given the newness of the technology, Matsuno was unsure of how quickly they would expect to see results. The company also doesn’t know when it will begin testing its therapy in the U.S.

In earlier research, Tune demonstrated that its technology could repress a specific gene in non-human primates and reduce the levels of LDL cholesterol in the animals. A single treatment provided an ongoing reduction that has lasted almost two years.

The company is looking to apply its therapy to liver conditions in addition to Hepatitis B. It’s also exploring the ability to reprogram a cell’s identity, targeting an unhealthy cell and nudging it back to a healthy state through epigenetic editing.

The company has raised more than $200 million in total from investors. The latest Series B round was led by New Enterprise Associates, Yosemite, Regeneron Ventures and Hevolution Foundation.

Launching the clinical trials is “exciting, certainly, for the company,” Matsuno said. “But [I’m] more excited for the patients and the field in general. We hope it’s a step forward.”

Other large funding rounds for health-related startups in the Pacific Northwest include Kestra Medical Technologies, which $196 million, Borealis Biosciences, which $180 million; and Outpace Bio, which $144 million.

3. RNAi Biotech Atalanta Unveils $97M to Reach the Clinic in Two Rare Neuro Diseases

The structure of Atalanta Therapeutics’ RNA interference drugs enables them to distribute broadly and deeply into brain tissue. Lead programs for Huntington’s disease and a rare inherited form epilepsy are on track to enter the clinic this year.

Using RNA to interfere with a gene’s expression of disease-causing proteins is a validated therapeutic approach, but so far, the products in this drug class only address liver proteins. Reducing levels of certain proteins in the central nervous system (CNS) could offer a new way to treat neurological disorders. The challenge facing drug developers is getting these therapies deep into the brain.

4. Israeli AI startup that scans Amazon vehicles raises $191 million led by Toyota fund

UVeye, developer of an AI-driven scanner that can run full inspections on vehicles, will deploy 850 of its systems at Amazon delivery stations in the US, Canada, Germany and UK

Toyota’s Woven Capital will become a strategic partner to help UVeye install hundreds of its vehicle inspection systems in 2025 as part of a global expansion plan, the startup said.

UMC Capital and MyBerg participated in the financing round along with existing investors — insurance company W.R. Berkley and Israeli institutional investors Menora Mivtachim and More Investment House. The funding values UVeye at more than $800 million. Founded in 2016, the Israeli startup has raised a total of $380.5 million in capital to date.

UVeye has developed an artificial intelligence-powered camera-based platform described as an “MRI for vehicles,” which it says can run vehicle inspections within seconds. The inspection system — which scans a vehicle as it drives through a tunnel of cameras and sensors — is based on advanced computer-vision and machine-learning technologies. The system was originally developed for homeland security purposes to detect weapons and contraband before being expanded to the automotive industry.

UVeye said that the fresh capital will be deployed to meet “surging global demand” for its inspection systems as the company nears a million vehicles scanned every month.

5. Oregon legal tech startup raises $22M to fuel AI platform that speeds research, drafting and more

Paxton, a Bend, Ore.-based legal tech startup, raised to fuel growth of its AI-powered platform, the company Wednesday.

The Series A funding was led by Unusual Ventures, alongside Kyber Knight, 25Madison, and Wisconsin Valley Ventures. Paxton has raised $28 million to date.

Paxton’s tech is used by legal professionals to automate and expedite labor-intensive tasks. Artificial intelligence helps with real-time legal updates, multi-jurisdictional research, and rapid document drafting, according to the company.

The startup, which employs 20 people, says it has experienced 14x growth in monthly recurring revenue and an 8x increase in active customers over nine months. The new cash will help expand Paxton’s technology, grow the team, and meet demand from legal customers.

“Our mission is to make advanced legal tools accessible to firms of all sizes,” Chau said in a statement. “With this funding, we’re poised to drive innovation, enhance efficiency, and transform how legal teams operate.”

Other legal-tech startups are tapping into AI to improve efficiency, including:

• Seattle-based Predict.law , which uses AI to help attorneys and their law firms better predict the outcome of legal cases.
• , which helps legal professionals predict the likely outcome of cases.
• , which raised $25 million to supercharge a software platform designed to help lawyers quickly sort, search, and organize case-related data

6. Voice AI startup ElevenLabs closes new funding round at $3.3 billion valuation

Jan 30 (Reuters) — ElevenLabs said on Thursday it has raised $180 million in a new funding round that triples the voice cloning artificial intelligence startup’s valuation to

The Series C funding round was co-led by Andreessen Horowitz and Iconiq Growth, with participation from additional new investors NEA, World Innovation Lab, Valor, Endeavor Catalyst Fund and Lunate.

Investors are racing to fund generative AI startups after the meteoric success of OpenAI’s ChatGPT to capitalize on the commercial potential of AI-powered products.

Headquartered in London, ElevenLabs aims to use the funding to expand its research into more expressive and controllable voice AI, create new products and expand its tools for developers and businesses.

The startup, which offers tools for creating AI-generated voices with different languages, accents and emotions, has raised a total of $281 million in funding since its founding in 2022.

“This funding moves us closer to a world where digital interactions happen by voice — fluid, natural, and as effortless as a conversation,” said CEO Mati Staniszewski.

ElevenLabs added it broadened its product lineup by adding tools for speech generation, voice design, sound effects and AI-driven dubbing in 32 languages in 2024.

The startup has partnerships with publishers including The New Yorker, The Washington Post and The Atlantic, and gaming studios such as Paradox and Cloud Imperium Games, according to its website.

ElevenLabs said that existing investors Sequoia Capital, Salesforce Ventures, Smash Capital, SV Angel, NFDG, BroadLight Capital were also increasing their support.

7. OpenAI said to be in talks to raise $40B at a $340B valuation

Per The WSJ, OpenAI is in talks to secure up to $40 billion in a funding round that would value the startup at $340 billion. SoftBank would lead the round, pouring between $15 billion to $25 billion into the ChatGPT maker, according to The WSJ.

8. Controversial genetics testing startup Nucleus Genomics raises $14M Series A

Last week, Founders Fund partner Delian Asparouhov realized he hadn’t checked on his genetics in a while. He clicked open a dashboard created by Nucleus Genomics, a Founders Fund-backed startup that gets saliva samples sequenced and then compares the DNA results to extensive data linking health issues to genes. Within seconds, he concluded that he had a predisposition for schizophrenia, a sky-high IQ, and prostate cancer. “Bummer,” he shrugged.

If Asparouhov’s reaction seems nonchalant, it’s only because he and the Nucleus team he backed are dreaming much, much bigger. Imagine a world where your medical treatments are tailored to your genetics or where every couple gets their DNA sequenced before having kids together — or a world where, as Asparouhov imagines, dating apps have a “kid simulation” that meshes your genetic tests together and shows you what a child might inherit.

“DNA is actually the kind of ultimate health test,” Sadeghi said. “So one swab and you get your analysis on about 800-plus conditions. And that’s going to be rapidly growing over the next several months, until it’s effectively every common and rare disease known.”

9. Swan adds €42 million funding to further embedded finance across Europe

The investment, led by Eight Roads Ventures, includes participation from existing investors Lakestar, Accel, Creandum, Hexa, and BPI France.

“ In the future, I believe business management software will become a key distributor of banking services. Whether it’s for HR or Accounting, these tools will offer banking features seamlessly integrated into the user’s workflow. This means you’ll have access to banking services right when you need them, directly in the tool you’re using. We call this embedded banking. At Swan, we’re working hard to provide both the technology and compliance framework to make this a reality for SMEs across Europe, “ said Nicolas Benady , founder & CEO of Swan

Founded in 2019 by Mathieu Breton, Nicolas Benady, and Nicolas Saison, Swan enables companies to offer financial services without becoming regulated themselves. Swan processes over €1.5 billion in monthly transactions for more than 150 companies-like Pennylane, Factorial, Agicap, Sesame, and Lucca-and operates in 30 European countries. Swan is a principal member of Mastercard and a licensed financial institution, regulated by the French banking authority (ACPR).

For example, customers such as accounting software provider Pennylane or freelancer platform Indy, collaborate with Swan to offer accounts and payments functionalities to their end-customers — making it possible to handle payments and reconciliations in a single platform.

According to Swan, the embedded finance sector represents one of the fastest-growing opportunities in fintech, valued at €177 billion globally, including €69 billion in Europe. Embedding financial products offers a significant new revenue stream for companies through interchange fees, interest income, and subscription fees while increasing end-customer retention.

Swan also argues that the timing for embedded finance adoption has never been more favourable than it is today. Advances in technology have made it easier and more productised, while rising interest rates enhance its value.

10. WeatherTech Meteomatics raises €21.1 million to predict weather’s impact on critical enterprises

Meteomatics , a Saint Gallen-based weather intelligence and technology startup, today announces the close of its €21.1 million Series C funding round in order to scale further into the US and develop its “Meteodrones”.

The round was led by Armira Growth, a European technology investor that partners with companies that are driving technological change. Klima; the Alantra Energy Transition fund, and Fortyone also participated in the round.

“ Weather-related business risks are no longer something companies need to simply consider; a company’s ability to accurately predict and prepare for weather threats can make or break their business. This is where Meteomatics comes in, “ said Martin Fengler , CEO of Meteomatics. “ We’ve spent over 10 years bringing technology to market that offers the highest precision weather forecasting that businesses can get and sets new global standards for weather data. We’ve attracted some of the world’s most innovative companies along the way, and we look forward to meeting this demand by exponentially scaling our company and technology .”

Founded in 2012 by Martin Fengler, Meteomatics is a weather intelligence and technology company that enables precision forecasts of the weather’s impact on businesses anywhere in the world at any time. More than 600 companies, including Tesla, CVS Health, Swiss Re, McCain, NASA, Honda, Airbus, Stellantis and UK Power Networks rely on Meteomatics for weather data that can significantly impact everything from energy savings, logistics, and process automation to risk management and product design.

The company’s approach to weather data collection, modeling, visualisation, and delivery reportedly rivals the “ most sophisticated government and commercial services “. Its autonomous Meteodrone, paired with high-resolution weather models, enables granular visibility (down to a single square km) into weather phenomena. Meteomatics is headquartered in Switzerland, with local operations in the U.S., the UK, Germany, Norway and Spain.

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