Startup Monday: Latest tech trends & news happening in the global startup ecosystem (Issue 89- May 13)
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Top startups news to follow this week:
1. Seattle VC firm Ascend raises $25M for second fund, plans to double down on AI
Ascend is ready to help more startups fly.
The Seattle-based pre-seed venture capital firm led by startup veteran Kirby Winfield on Tuesday announced a $25 million second fund.
After two decades in leadership at four startups, Winfield jumped into venture capital in 2019, raising $15 million for Ascend’s initial fund. To date, he’s backed more than 70 startups across the Pacific Northwest.
With the new fund, Ascend is placing a bigger bet on artificial intelligence, joining other venture capital firms pouring cash into the growing sector boosted by recent generative AI advancements.
“AI is having a platform-shift moment. It would be irresponsible not to double down,” said Winfield, who is an investor in residence at the Allen Institute for AI.
Winfield raised a majority of the new fund at the beginning of 2022, just before startup funding dried up amid the tech downturn.
U.S. angel and seed deal value last year still managed to eclipse 2021 levels, though deal activity hit a 10-quarter low in the first quarter of 2023, PitchBook reported.
Winfield predicts that startup fundraising will “get worse before it gets better.”
“I would imagine there’s probably another downward correction in valuations in the next year,” he said.
2. Seattle VC fund Capria raises $100M to invest in ‘Global South’ startups
Seattle-based venture capital firm Capria has raised a $100 million fund to invest in 20-to-25 tech startups in the “Global South” areas of India, Southeast Asia, Latin America, the Middle East, and Africa.
“We like to invest where the growth is,” said Will Poole, a co-founder and managing partner at Capria. He said the Global South economy is expected to represent 70% of overall GDP growth over the coming three years.
Investors in the new fund include Gates Ventures, the private investment office of Microsoft co-founder Bill Gates, as well as OIP Investment Trust, various foundations, individuals, and family offices.
The fund, Capria’s second, will target founders and startups focused on generative AI and climate technologies. Investments have already been made in startups in Mexico, Brazil, Nigeria, and Egypt, including Kueski (fintech), Agrofy (agritech), MAX (mobility), and Paymob (fintech).
“Exceptional founders are everywhere; the ones in the Global South are often less well connected to one another,” Poole said. “They gain a lot of value from the collaborating founder network we are creating.”
The average first check size will be $2 million to $3 million, Poole said, with additional capital reserved for follow-on investments.
While mainly focused abroad, Poole said Capria would consider backing a company that was based in Seattle if its primary markets were in the Global South.
Poole spent 12 years at Microsoft where he ran the Windows client business and was a corporate vice president for a program focused on bringing products to emerging markets. Capria Co-founder Dave Richards is a former vice president at Real Networks.
Capria previously raised a $57 million fund in June 2020. The firm is connected to Unitus, an early-stage, India-only VC firm. Capria and Unitus employ 18 people globally, including three in Seattle.
3. NYBC Ventures launches with $50M for blood and cell therapies
NYBC Ventures has unveiled as one of the first venture funds to focus solely on advancing new blood and cell-based therapies, with $50 million in hand from the New York Blood Center.
The fund will invest in new therapeutics, devices, and tech that tackle challenges in benign hematology, transfusion medicine, and infectious disease. The inaugural fund already touts a portfolio that includes Catena Biosciences, HealthQuest Capital, KaloCyte, Thymmune Therapeutics, StealthCo, and STRM Bio.
Alongside capital investment, NYBC Ventures provides access to researchers, cell manufacturing capacity and source materials, Christopher Hillyer, M.D., general partner for NYBC Ventures and CEO of the New York Blood Center, said in a May 11 release.
4. European biotech VC Forbion closes two funds at $1.5B total in its biggest raises to date
European life sciences venture capital firm Forbion has closed two of its funds — one early-stage and one late-stage — at €750 million (about $823 million USD) and €600 million ($658 million USD) respectively, it announced Wednesday morning.
Forbion initially closed its late-stage fund in June at €470 million before reaching the hard cap on the fund at €600 million. Known as the Forbion Growth Opportunities Fund, the raise was Forbion’s second late-stage specific fund. With the money, Forbion plans to invest up to €70 million per deal, and Forbion managing partner and co-founder Sander Slootweg said the firm plans to invest in 12 to 15 companies via that fund.
5. Swiss agritech startup Ecorobotix raises $52 million in new funding
Ecorobotix, the Swiss manufacturer of ARA, an AI-powered plant-by-plant recognition and precision smart sprayer system, has completed a $52 million (CHF 46 million) funding round.
The round was jointly led by AQTON Private Equity and Cibus Capital, with additional investments from Swisscanto Invest/Swisscanto Growth Fund I, Yara Growth Ventures, Flexstone Partners, and from existing investors including Swisscom Ventures, BASF Venture Capital, 4FOX Ventures, and Verve Ventures.
The funding will accelerate Ecorobotix’s geographic expansion across new and existing markets and accelerate new product development.
Stefan Quandt, owner of AQTON PE (co-lead investor), explained his company’s decision to invest in Ecorobotix. “I’m looking forward to helping grow businesses like Ecorobotix which are having a positive impact on agriculture and the environment. Ultra-high precision agriculture and solutions like ARA from Ecorobotix are critical to improving farmer efficiency and helping move towards an eco-friendlier future.”
With customers in 15 European markets, these investments will further accelerate Ecorobotix’s rapidly growing business. Ecorobotix will use the new capital to expedite the growth of ARA worldwide, particularly in the Americas.
6. Paris-based traveltech startup Worldia jets off with €25 million for global growth
Connected-trip operator Worldia has just secured €25 million for its platform that is making travel personal. The French startup is now planning to take off on global expansion plans.
The travel sector has been experiencing a transformational change in recent years, driven by growing customer demands for hyper-personalized, customized and connected trip experiences that stand out from the crowd. It’s something that is being facilitated by exciting new tech developments and innovations, with startups paving the way forward.
The Paris-based startup Worldia has been shaking up the travel space since 2012, bringing travellers unique custom trips. The young company has now secured €25 million to fuel its global expansion plans. The Series B funding round was led by Credit Mutuel Innovation, Banque des Territoires (Caisse des Dépôts), and FrenchFounders. Existing investors Red River West, CapHorn, and RAISE Ventures also participated in the round. Worldia began its first fundraising campaign in 2019, and this marks a major growth milestone.
Grégoire Pasquet: “Thanks to this new round of funding, we are excited to continue our mission of transforming the travel industry and unlocking new possibilities for both travel professionals and consumers. We’re ready to make our game-changing technology available on a global scale, allowing us to empower even more travel distributors with a connected trip experience. Our post-COVID growth has shown that we are offering what customers are expecting, making the whole travel experience seamless and enjoyable. We are confident that we can make a real impact in the industry and we look forward to the journey ahead.”
7. EIB backs Wingcopter with €40 million to boost its impact-led electric delivery drone service
German startup Wingcopter has secured a €40 million investment boost for its sustainable electric delivery drones and logistics services. The technology, which is currently being used for commercial and humanitarian projects, will now ramp up in development.
Electric drone delivery and logistics are a promising way to meet demands for quick delivery, sustainable transport, and get goods and products to hard=to-reach areas. Electric cargo drones can replace carbon-intensive modes of transport such as motorcycles, vans and helicopters and contribute towards the transition of a greener global economy.
It’s an area that the EU is committed to backing under its sustainability initiatives. Today, German startup Wingcopter has secured €40 million backing from the EIB as part of the e European Commission’s InvestEU programme under its sustainable infrastructure window.
EIB’s investment comes alongside existing funding from international investors that include REWE Group, ITOCHU, Xplorer Capital and Uber co-founder Garrett Camp’s investment arm Expa.
EIB Vice-President Ambroise Fayolle: “Europe is currently the global leader in cleantech, and we must work hard to maintain this lead. Backing European cleantech pioneers with global reach like Wingcopter is central to our mission. Electric cargo drones are an important vertical segment for a future of sustainable transport and logistics. This investment underlines our commitment to supporting entrepreneurs growing and building advanced green technology businesses in the European Union, strengthening our technological competitiveness, creating highly skilled jobs and opening up new markets, while preserving nature. We are proud to be supporting this European success story.”
8. Vienna-based Fermify raises €5 million to supercharge vegan cheese production
Austrian startup Fermify is leveraging precision fermentation to create sustainable and economical cheese alternatives. Based in Vienna, the team has now secured €5 million in seed funding to supercharge its role in the animal-free food transition.
Our diets have been changing in recent years. Fuelled by increased health consciousness and environmental awareness, more and more people are opting for plant-based alternatives in their diet. Getting an oat milk coffee or choosing the vegan option at a restaurant is now very much the norm. However, when it comes to beloved products like cheese, vegan and animal-free alternatives are still catching up to traditional products.
Vegan cheese alternatives have a market share of about 2%, while plant-based milk products have already hit 20%. It’s largely due to cheese alternatives lacking taste, quality, and melt-ability — as well as sustainability and scalability.
Fermify, a startup based in Vienna, has developed a solution. The biotech company leverages continuous precision fermentation to create sustainable, economical and tasty solutions for milk protein production. Now, the team has secured €5 million to grow.
The funding was led by Climentum Capital. Co-investors include Auxxo Female Catalyst Fund, Fund F, Clima Now, Satgana Ventures, and Triple Impact Ventures as well as existing investors such as Übermorgen Ventures, Backbone Ventures, Push Ventures and Simon Capital.
Founded in 2021 by Eva Sommer and Christoph Herwig, Fermify is disrupting the dairy market through a blend of bioprocess engineering, molecular biology and food science.
Eva Sommer, Co-Founder and CEO of Fermify: “We have very strong demand from various customers and will have to select carefully the first 2 or 3 pilot customers that we start working with, allowing them to be first to the market with economically viable vegan cheese.”
9. Pale Blue Dot continues investing in its climate vision, with a second $100M fund
Sweden-based VC fund Pale Blue Dot bounced onto the scene in 2020 with a €53 million fund to help climate-focused startups. This fund grew again by €34 million in April 2021, and after deploying investments into 28 climate-forward companies, the investor this week announced it has officially closed its second fund. This one is valued at €93 million (approximately $101 million at today’s valuation), with the same thesis in mind: to support climate tech-oriented startups.
Founded by general partners Joel Larsson, Heidi Lindvall and Hampus Jakobsson, Pale Blue Dot looks to make pre-seed and seed investments in European-based companies, although it is open to deals from the U.S., too.
“Climate tech is here to stay,” says Lindvall in a statement to TechCrunch. “As long as the climate crisis has not been solved, we will need to keep investing more money into tech solutions. This space will continue to see accelerated growth as individuals, corporates and governments try to figure out how to decarbonise and prepare for a new world.”
The firm prefers to lead rounds, writing checks between €500,000 and €2 million. Out of its 28 investments to date, the firm highlights some examples of what it is looking for in the form of Phytoform, a British-U.S. biotech-agritech business, climate risk data analytics firm Climate X; U.K.-based logistics company Hived, Danish EV charging platform Monta and French fintech firm Green Got. There remain a few investments to be made from the first fund before the firm officially starts deploying funds out of its second investment vehicle. The GPs are aiming to invest in 35 startups with this fund, in sectors such as food and agtech, industry, mobility and fintech, provided that they are focused on making a positive difference toward climate change.
10. Indian edtech giant Byju’s raises $250 million, on track to close another $700 million
Byju’s has raised $250 million in fresh funding and is close to securing an additional $700 million, two people familiar with the matter told TechCrunch, as the Indian edtech giant builds up its war chest ahead of the highly anticipated IPO of its subsidiary Aakash.
The New York-headquartered investment firm Davidson Kempner has invested $250 million in Byju’s via structured instruments, the people said, requesting anonymity as the information is not public.
The Bengaluru-headquartered startup, India’s most valuable, is finalizing the remainder of the capital from a sovereign fund, the people said. That capital, expected to arrive in two weeks, will come into the startup as part of a convertible note that caps the valuation at $22 billion.
Byju’s has maintained its $22 billion valuation throughout the past year even as numerous high-profile startups globally have had severe corrections in their value.
Davidson Kempner declined to comment, while Byju’s did not immediately respond. TechCrunch could not identify the sovereign fund. Indian news outlet Moneycontrol earlier reported about Byju’s plans for fresh funding.
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