Sourcery (10/23-10/27)
Discover more from Sourcery
Sourcery (10/23-10/27)
OpenAI DevDay, Convoy, Techno-Optimist Review ☀️ Agentsync, Blockaid, Arteria AI, Aleph, Ternary, Prism Data, Abridge, Signs, Greater Good, Sage, Island, Censys, HqO, CentML, Quantum Systems, Oxide
Happy Halloween 🎃
What to watch for next week:
OpenAI’s first developer conference, DevDay, begins Monday Nov 6, 2023 in San Francisco.
The one-day event will bring hundreds of developers from around the world together with the team at OpenAI to preview new tools and exchange ideas. In-person attendees will also be able to join breakout sessions led by members of OpenAI’s technical staff.
I’d expect some major headlines to come out of this one!
Musings
ICYMI
The Techno-Optimist Manifesto (vlog breakdown), The Ben & Marc Show
“Technology is the glory of human ambition and achievement, the spearhead of progress, and the realization of our potential.”
AI
AI Reaccelerating Cloud Growth, Tomasz Tunguz
Watching MongoDB, Google, Microsoft +more
Is Microsoft Really Losing Money On GitHub Copilot?, & More, Ark Invest
Open (Source) Sesame: Why are open-source models gaining traction, and why might they win in the long term? Sabrina Wu & Vivek Ramaswami
The Convergence of Data and Software Engineering in the Age of AI, Tomasz Tunguz
This convergence signals how far data teams have evolved into core engineering teams. Machine learning’s demand for data has accelerated this movement because AI needs data to function.
Data / Cloud
The Postgres Renaissance: A Modern Reawakening, Zain Rizavi @ Ridge Ventures
Dissecting the recent revival of the iconic Database and the many companies building for it 👀
Cloud Giants Report Q3 ‘23, Jamin Ball
“Not a great signal for software this week from the Cloud Giants (AWS, Azure and Google Cloud)…After Q2 (3 months ago), the tone from the Cloud Giants around optimizations was largely: optimizations have started to ease, and net new workloads have picked up. You can see some quotes from Azure/AWS in my Q2 recap, and pasted below.”
Gas Gas Revolution, Tomasz Tunguz
Cost to store data on blockchain compared to cloud costs over time
HardTech
Freight brokerage bubble bursting as freight markets face long winter, FreightWaves
Convoy's recent failure illustrates the consequences of applying significant VC funding/rapid scaling to a capital-intensive & cyclical market like freight & shipping (which operates on low margins & unpredictable demand) - it might just not work.. Leading to an inflated market bubble that, when it bursts, negatively impacts both the company and the wider industry. Craig delves deeper into the financial structures for freight and market outlooks.
. . .
Last Week (10/23-10/27):
Relevant deals include the 60+ deals across stages below.
I've categorized the deals below into five categories, FinTech, Care, Enterprise & Consumer, HardTech, and Sustainability, and ordered from later-stage rounds to early-stage rounds. Highlighted deals include Agentsync, Blockaid, Arteria AI, Aleph, Ternary, Prism Data, Abridge, Signs, Greater Good, Sage, Island, Censys, HqO, CentML, Cranium, Moreh, LegalMation, Siro, Twelve Labs, Viso, Ignition, Chukka, Tofu, Credal.ai, Quantum Systems, Oxide Computer Co, Traba, Opal Camera, OnsiteIQ, Omnidian, Zordi; Databricks/Arcion, Automattic/Texts.com, EnterpriseDB/Splitgraph, PicnicHealth/AllStripes
Final numbers on US GDP Growth at the bottom.
Deals
Fintech:
- AgentSync, a Denver, Colo.-based developer of insurance infrastructure and compliance software, raised $50 million in new funding. Craft Ventures and Valor Ventures led the round and were joined by others.
- Blockaid, a Tel Aviv, Israel-based security tool provider for blockchain transactions, raised $33 million in Series A funding. Ribbit Capital and Variant led the round and were joined by Cyberstarts, Sequoia, and Greylock
- Arteria AI, a New York-based developer of documentation infrastructure for institutional finance, raised $30m in Series B funding. GGV Capital U.S. led, and was joined by insiders Illuminate Financial, Information Venture Partners, BDC Capital and Citi. www.arteria.ai
- Aleph, a New York City-based platform for pulling and managing financial data, raised $16.7 million in Series A funding. Bain Capital Ventures led the round and was joined by Khosla Ventures, Picus Capital, Y Combinator, and others.
- Ternary, a San Francisco-based platform designed to help companies manage their cloud spending, raised $12 million in Series A funding. Jump Capital led the round and was joined by Fin Capital, RiverPark Ventures, Great Oaks Venture Capital, and Gaingels.
- Upfort, an SF-based cyber insurance risk platform, raised $8m in Series A funding led by SYN Ventures, per Axios Pro. https://axios.link/3ScG8vi
- Canopy Connect, a Beaverton, Ore.-based insurance monitoring platform, raised $6.5m in Series A funding. Nevcaut Ventures led, and was joined by Elefund, Nimble Partners, LocalGlobe, 9Yards Capital and Global FinTech Venture Partners. https://axios.link/46Las4L
- Lunr, a Minneapolis-based fintech inventory financing platform for retail brands, raised $6m c0-led by Mairs and Power Venture Capital. https://axios.link/3Mfv38S
- Prism Data, a cash flow underwriting and data analytics platform spun out of credit card startup Petal, raised $5m in seed funding. Obvious Ventures led, and was joined by Citi Impact Fund and Core Innovation Capital. www.prismdata.com
- Hiive, a Canadian marketplace for startup shares, raised US$4.2m from Uncorrelated Ventures, Splash Capital, Harmony Partners, Hack VC, Agmen Capital, and Renaud Laplanche. https://axios.link/3M51ln5
. . .
Care:
- Abridge, a Pittsburgh-based clinical documentation platform, raised $30m in Series B funding led by Spark Capital. www.abridge.com
- Signos, a San Francisco-based health data and weight management platform, raised $20 million in Series B funding. Cheyenne Ventures and Google Ventures led the round and were joined by Dexcom Ventures and Samsung Next.
- Greater Good, an El Segundo, Calif.-based provider of primary care for seniors, raised $20m in Series A funding, as first reported by Axios Pro. Flare Capital Partners, and was joined by LRVHealth, Health Velocity Capital, Martin Ventures and Optum Ventures. https://axios.link/45F3yfT
- Sage, a provider of elder care hardware and software, raised $15m in Series A funding, per Axios Pro. Maveron led, and was joined by insiders Goldcrest Capital, Animo Ventures and Distributed Ventures. https://axios.link/40bAVWp
- PhaseV, a Boston, Mass. and Tel Aviv, Israel-based company developing machine learning technology designed to analyze clinical trial data, raised $15 million in new funding. Viola Ventures and Exor Ventures led the round and was joined by LionBird and angel investors.
- Rymedi, a Greenville, S.C.-based health care data exchange, raised $9m in Series A funding. RW3 Ventures and White Star Capital co-led, and were joined by Blockchange Ventures and Avalanche's Blizzard Fund. https://axios.link/499nquM
- RadiantGraph, a provider of customer engagement solutions for health plans, raised $5m in seed funding, per Axios Pro. True Ventures led, and was joined by XYZ Ventures and Remus Capital. https://axios.link/476hqkj
. . .
Enterprise & Consumer:
- Island, a Dallas, Texas-based browser designed specifically for employees, raised $100 million in Series C funding at a $1.5B valuation. Prysm Capital led the round and was joined by Canapi Ventures, Insight Partners, Stripes, Sequoia, Cyberstarts, and Georgian.
- Adlumin, a Washington, D.C.-based cybersecurity platform, raised $70 million in Series B funding. SYN Ventures led the round and was joined by First In Ventures, Washington Harbour Partners, and BankTech Ventures.
- Censys, a Ann Arbor, Mich.-based cybersecurity platform, raised $50 million in Series C funding. Decibel Partners, GV, Greylock, and Intel Capital led the round and were joined by Ascension Ventures, Four Rivers Partners V, and others.
- HqO, a Boston-based real estate experience platform, raised $50m in Series D funding. Koch Real Estate Investments led, and was joined by Accomplice, Insight Partners and Related. www.hqo.com
- CentML, a Canadian ML model deployment efficiency startup, raised US$27m in seed extension funding from Gradient Ventures, TR Ventures and Nvidia. https://axios.link/475Ml0u
- Cranium, a Short Hills, N.J.-based AI security and trust software startup spun out of KPMG, raised $25m in Series A funding. Telstra Ventures led, and was joined by KPMG and SYN Ventures. www.cranium.ai
- Moreh, a Santa Clara, Calif. And Seoul-based maker of software for creating and optimizing AI models, raised $22m in Series B funding from AMD, KT, Smilegate Investment and Forest Partners. https://axios.link/3FtvyIV
- Neon Machine, a Seattle-based developer of first-person shooter games, raised $20m in Series A funding. Polychain Capital led, and was joined by Griffin Gaming Partners, Brevan Howard Digital, Franklin Templeton, IOSG Ventures and Tess Ventures. https://axios.link/3s2LGOp
- LegalMation, an LA-based developer of generative AI solutions for high-volume litigation, raised $15m in Series A funding. Aquiline Capital Partners led, and was joined by insiders Motley Fool Ventures, REV Venture Partners, Key Venture Partners, Quick Set and Brentwood Investments. www.legalmation.com
- Eve, an SF-based developer of personalized AI legal assistants, raised $14m in seed funding co-led by Lightspeed Venture Partners and Menlo Ventures. https://axios.link/3s4KtWK
- Siro, a New York-based "AI coach for offline sales," raised $14m in Series A funding. CRV led, and was joined by seed co-leads Fika Ventures and Index Ventures. www.siro.ai
- Noodle Cat Games, a remote-based game development studio, raised $12 million in Series A funding. Hiro Capital led the round and was joined by Makers Fund, KRAFTON, and Sony Innovation Fund.
- Threedium, a New York-based provider of 3D/AR high-fidelity assets for e-commerce, raised $11m in Series A funding. Interpublic Group and Olma Partners co-led, and were joined by Mesh Consensys, Reflexive Capital, Nirvana Family Office, Lyra Ventures, Edenbase, and Kinisis Venture Fund. https://axios.link/3Fx03h6
- Luzia, a Madrid, Spain-based personal AI chatbot, raised $10 million in Series A funding. Khosla Ventures led the round and was joined by Abstract Ventures, FJ Labs, and others.
- Twelve Labs, an SF-based "video understanding" startup, raised $10m from Nvidia, Intel and Samsung. www.twlevelabs.io
- Viso, a Schaffhausen, Switzerland-based platform for building computer vision applications, like facial recognition and self-driving cars, raised $9.2 million in seed funding. Accel led the round and was joined by others.
- Ignition, a San Francisco-based operations platform designed to align product, marketing, and sales teams together for product launches, raised $8 million in seed funding. Audacious Ventures led the round and was joined by Altman Capital and angel investors.
- PopUp Bagels, a Westport, Conn.-based bagel company, raised $8 million in Series A funding. Stripes led the round and was joined by existing investors.
- Upland, a Palo Alto, Calif.-based platform for purchasing metaverse properties, raised $7 million in a Series A extension from Network Ventures, C3 Venture Capital, Animoca Brands, and angel investors.
- Nocturne, a protocol enabling on-chain private accounts, raised $6m in seed funding. Bain Capital Crypto and Polychain Capital co-led, and were joined by Bankless Ventures, HackVC and Robot Ventures. https://axios.link/3Qe3cqS
- Chkk, a Sunnyvale, Calif.-based Kubernetes availability platform, raised $5.2m in seed funding led by Sequoia Capital. https://tcrn.ch/3FxsP16
- Tofu, a San Mateo, Calif.-based AI platform for creating marketing campaigns, raised $5 million in new funding. Index Ventures led the round and was joined by SignalFire, Stage 2 Capital, and Liquid 2 Ventures.
- Credal.ai, a New York City-based add-on that directs user requests to the appropriate AI and large language model to fulfill it, raised $4.8 million in seed funding. Spark Capital led the round and was joined by others.
- Direqt, a Seattle-based AI chatbot for publishers, raised $4.5m from individuals like Dan Marino, Peter Callahan (ex-CEO of American Media) and Todd Partner (ex-Google). www.direqt.ai
- 1337, a generative AI platform for connecting niche communities, raised $4m in pre-seed funding from Credo Ventures, GFR Fund, Treble VC, Roosh Ventures. www.1337.org
- Yourco, an Indianapolis, Ind.-based SMS platform for internal company communications, raised $2 million in seed funding. Ground Game Ventures led the round and was joined by Allos Ventures, Start Something Ventures, Elevate Ventures, and Flywheel Fund.
. . .
HardTech:
- Quantum Systems, a Munich, Germany-based developer of drone technology for government and commercial clients, raised €63.6 million ($67.4 million) in Series B funding. HV Capital and DTCP led the round and were joined by Project A, Thiel Capital, ScaleUp Fonds Bayern, Omnes Capital, and Airbus Ventures.
- Oxide Computer Company, a San Francisco, CA-based creator of a commercial cloud computer (service), raised $44M in Series A funding led by Eclipse. Other investors include Intel Capital, Riot Ventures, Counterpart Ventures, and Rally Ventures.
- Traba, a Miami, Fla.-based platform that connects light industrial businesses (like warehouses, concert venues, and distribution centers) with temporary workers, raised $22 million in funding. Founders Fund led the round and was joined by Khosla Ventures.
- Opal Camera, a San Francisco, Calif.-based webcam manufacturer, raised $17 million in Series A funding. Founders Fund led the round and was joined by Kindred Ventures and others.
- OnsiteIQ, a New York-based construction intelligence platform for commercial real estate, raised $14m in Series B finding. Vertical Venture Partners led, and was joined by RET Ventures and Interplay VC. www.onsiteiq.io
- FlyGuys, a Lafayette, La.-based provider of reality data capture using drones, raised $10m from Advantage Capital and Mitchell Capital. www.flyguys.com
- Inlyte Energy, a San Francisco-based developer of energy grid batteries made of iron and salt, raised $8 million in seed funding. At One Ventures led the round and was joined by Valo Ventures, TechEnergy Ventures, Climate Capital, Anglo American, and others.
- Sidework, a San Diego, Calif.-based manufacturer of smart beverage dispensers and ingredients retailer, raised an additional $4.5 million in seed funding. Cherubic Ventures led the round and was joined by existing investors Finistere Ventures, SOSV, Outlander Labs, and Pathbreaker Ventures.
- Cyviation, a Herzeliya, Israel-based cybersecurity solutions provider for the aviation industry, raised $4 million in new funding from a group of private investors from Stonecourt Capital and Highline Capital, and others.
- Rhizome, a Washington, D.C.-based provider of utility risk management software, raised $2.5m in seed funding from Looking Glass, Intelis Capital, Jetstream, El Cap, Streetlife, Everywhere, and Stepchange. https://axios.link/40aktpv
. . .
Sustainability:
- Omnidian, a Seattle, Wash.-based developer of solar management and monitoring software, raised $25 million from Activate Capital, WIND Ventures, Avista Corporation, Evergy Ventures, National Grid Partner, and others.
- Zordi, a Boston-based autonomous greenhouse developer, raised $20m from firms like Khosla Ventures. www.zordi.com
- Palladium Energy, a Jacksonville, Fla.-based utility-scale solar and storage developer, raised $10m from Ultra Capital. www.Pd46energy.com
- Harvest Thermal, a Kensington, Calif.-based sustainable home heating and cooling systems provider, raised $4m. Earth Foundry led, and was joined by Muus Climate Partners, Starshot Capital, and Portfolia. https://axios.link/46JlV4O
- Wildfire Tech, a startup that uses jet engines to fight wildfires (yes, you read that correctly), raised $3.6m led by Cottonwood Tech Fund. https://axios.link/46MVTh8
Acquisitions & PE:
- Databricks, valued by VCs at $43.5b, paid more than $100m to acquire Arcion, a San Mateo, Calif.-based database platform that had raised around $18m from firms like Bessemer Venture Partners and Databricks. https://axios.link/4965Pnh
- Automattic, owner of WordPress.com and Tumblr, will pay $50m to acquire messaging app Texts.com. https://axios.link/45IuHP8
- Chevron agreed to acquire Hess, a New York City-based oil and natural gas company, for $53 billion.
- EnterpriseDB, backed by Bain Capital, acquired Splitgraph, a Cambridge, U.K.-based platform for querying, uploading, and sharing data. Financial terms were not disclosed.
- PicnicHealth, an SF-based patient health data startup, acquired AllStripes, a Livermore, Calif.-based drug research and tracking platform that had raised over $60m from firms like Spark Capital, Lux Capital and Jazz Venture Partners. PicnicHealth backers include B Capital Group, Felicis and Amplify Partners. https://axios.link/46FHLpz
- Apax Partners agreed to acquire a majority interest in GAN Integrity, a New York City-based risk, compliance, and ethics management platform for companies. Financial terms were not disclosed.
- Keyfactor, an Independence, Ohio-based PKI and machine identity management company, raised just under $500m in growth equity funding from Sixth Street at around a $1.3b enterprise value. www.keyfactor.com
- PSG invested in AirWorks, a Boston-based provider of geospatial data processing and analytics. www.airworks.io
- Vector Solutions, a Tampa, Fla.-based e-learning company, acquired PathwayOS, a platform that connects K-12 students with work-based learning opportunities. Vector backers include Norwest Venture Partners, Genstar Capital, Insight Partners and Bessemer Venture Partners. www.vectorsolutions.com
- AMN Healthcare (NYSE: AMN) acquired fellow health care staffing firm MSDR for $300m. https://axios.link/45F3YTv
- Ares Management is investing in Consolidated Precision Products, a Cleveland-based aerospace parts manufacturer owned by Warburg Pincus, via a preferred equity deal that will be used to reduce leverage, per Bloomberg. https://axios.link/46IXF2t
Funds:
- Garuda Ventures, a new seed and pre-seed firm that will back B2B-focused software startups, raised $31m for its debut fund. https://axios.link/3FtURdA
- The House Fund, a VC firm focused on UC Berkeley startups, raised $115m for its third fund. https://axios.link/3Fup9Nu
Final Numbers
Data: Bureau of Economic Analysis; Chart: Axios Visuals
The U.S. economy grew at its fastest pace in nearly two years, per Q3 data released this morning, defying slowdown expectations. Go deeper.
The material presented on Molly O’Shea’s website are my opinions only and are provided for informational purposes and should not be construed as investment advice. It is not a recommendation of, or an offer to sell or solicitation of an offer to buy, any particular security, strategy, or investment product. Any analysis or discussion of investments, sectors or the market generally are based on current information, including from public sources, that I consider reliable, but I do not represent that any research or the information provided is accurate or complete, and it should not be relied on as such. My views and opinions expressed in any website content are current at the time of publication and are subject to change. Past performance is not indicative of future results.