AI startups are attracting a growing share of U.S. venture capital, with investments jumping from 14% in 2020 to 33% in the first nine months of 2024. Q3 alone saw $38 billion in VC funding, 37% of which went to AI-focused deals, setting the stage for even more funding as the sector matures.
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The U.S. is finalizing rules that will ban American investments in China's AI, quantum tech, and semiconductor sectors starting January 2, targeting technologies with military and surveillance uses. Investors will be restricted from providing funds or expertise that could enhance China's military and intelligence capabilities, with limited exceptions for publicly traded securities.
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While swing states like Pennsylvania, Michigan, and North Carolina may not match the venture capital intensity of major hubs like California, Massachusetts, and New York, they each host prominent, sector-specific startups. Ranging from Michigan's electric vehicle tech to North Carolina's biotech, these regions reveal unique entrepreneurial strengths.
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Hummingbirds, a platform connecting local content creators with community-based brands, secured a $5.4 million seed round to expand across 20 U.S. cities by 2025. This startup, founded by Charise Flynn and Emily Steele, taps into nano-creators with under 10,000 followers, delivering high engagement rates for brands seeking authentic, word-of-mouth marketing.
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Amid escalating conflicts, Europeβs defense-tech sector has reached a record $531.6M in 2024, with new venture firms capitalizing on dual-use technologies to support the region's security needs.
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African VC Janngo Capital has closed its second fund at $78 million, surpassing its target, and will continue investing in African startups with a strong focus on supporting female founders and gender-equal opportunities.
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Flueidβs new funding, led by LiveOak Ventures, aims to drive growth and advance its VOT technology, bringing early title insights to streamline real estate transactions.
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Elon Muskβs AI startup xAI is in early talks to raise new funding at a valuation of $40 billion, following a previous round in May that valued it at $24 billion.
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Marc Andreessen and Ben Horowitz, influential Silicon Valley VCs, endorse Donald Trump, viewing him as a bulwark against proposed Biden policies they believe could threaten tech startups and innovation.
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Melio, a leading platform for small and medium business payments, raised $150 million in a funding round led by Fiserv, with participation from Shopify Ventures, Capital One Ventures, and other major investors to drive growth through strategic partnerships.
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Media is too big
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Today's data shows US startups are raising later than before, with Series D companies now averaging 8.3 years old at funding (up from 6.4 years in 2019), suggesting a trend toward more mature companies securing major investment rounds.
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October saw some major funding rounds, led by OpenAIβs $6.6 billion raise, which dwarfed all others. Pacific Fusion followed with a $900 million round, and Crusoe Energy Systems, Poolside, X-energy, and Insider each raised $500 million.
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The Accel report highlights a surge in GenAI startups across Europe and Israel, with the UK leading in both the number of startups and investment attracted, as former top executives from OpenAI venture into new entrepreneurial landscapes.
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Breaking a long-standing taboo, VCs are pouring billions into competing LLM startups like OpenAI and Anthropic, sparking debate: is this hedging a smart strategy or an ethical dilemma?
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AI dominates the unicorn landscape, with over half of newly minted unicorns in Q3 emerging from the generative AI sector. Notable new unicorns include World Labs, specializing in 3D content creation, Codeium, focused on AI-powered coding, and Harvey, an AI assistant designed to support legal professionals.
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Vanguard has cut its valuation of Indian ride-hailing startup Ola to approximately $2 billion as of August, down from $7.3 billion in late 2021, reflecting a significant decrease in its holdings in ANI Technologies, the parent company of Ola, following a series of prior valuation adjustments.
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Coatue Management is raising $1 billion to bolster its investments in AI-focused companies, aiming to attract institutional investors and high-net-worth individuals, despite a recent slowdown in startup investments.
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Physical Intelligence has secured $400 million at a $2 billion valuation to develop a generalist AI brain for robots, attracting major investors like Jeff Bezos, Lux Capital, and OpenAI as interest in AI-powered robotics continues to grow.
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