The mess at Meta, Shein's IPO plans, and the perfect gift for après-tee

Welcome back.:) Quick mention: as we continue putting together our first StrictlyVC event of 2024 in San Francisco in late January at Cloudflare's airy home on Townsend Street, we're thrilled to say that we've also partnered with Lightspeed Venture Partners to begin planning a StrictlyVC evening in L.A. for the very first time. The date: Thursday evening, February 29 at NeueHouse Hollywood. We're so excited about this one (and exceedingly thankful to the entire time at Lightspeed for offering its help here). 

If you're interested in teaming up with us on either event as a sponsor, we'd love to talk with you. In the meantime, nab a seat here for our February event, and stay tuned for more announcements over the coming weeks and months!💥

Last month, the Attorneys General of 42 states alleged that Meta targeted kids under age 13, and now, a newly unredacted version of the lawsuit provides more details about what Meta has been up to.

Further on Meta, the WSJ reports on what happened when it set up test accounts on Instagram that followed only young gymnasts, cheerleaders and other teen and preteen influencers. The results were disturbing, to say the least.

According to VC firm Atomico, companies in Europe are on track to raise just $42 billion this year — less than half the $85 billion that startups in the region raised in 2022.

The U.S., Britain, and more than a dozen other nations have issued recommendations for AI systems to be built so that they are "secure by design." 

In the 2H 2023 update on M&A, Allied Advisers notes market changes since Q3 2022. Deal dynamics have shifted from the robust 2010-2021 period, creating a more normalized environment. Private equity remains a major player, new tech M&A entrants emerge, and deal volume stabilizes. Allied Advisers offers guidance for successful M&A outcomes in the current environment. They recently advised clients on exits to industry leaders like Activision Blizzard King, Walmart, Dura Software, PSG Equity, and Virtana, among others.

Oxford Quantum Circuits, a six-year-old startup based in Oxford, UK, that offers quantum computing via a SaaS-based model, raised a $100 million Series B round led by SBI Investment, with additional funds provided by Oxford Science Enterprises, University of Tokyo Edge Capital, Lansdowne Partners, and OTIF. Tech.eu has more here.

Cradle, a two-year-old, Amsterdam-based startup aiming to use AI to help scientists design and engineer proteins faster and more cost-effectively, has raised $24 million in Series A funding from Index Ventures; Kindred Capital; Chris Gibson, the co-founder of Recursion Pharmaceuticals; and Tom Glocer, the former CEO of Thomson Reuters. The company has raised $33 million altogether. TechCrunch has more here.

Crezco, a three-year-old London startup that helps companies develop workflows that speed up the collection of bill payments, raised a $12 million Series A round. Investors included MMC Ventures and 13books Capital. The company has raised a total of $18 million. TechCrunch has more here.

EMotorad, a three-year-old startup based in Pune, India, that manufactures electric bicycles, raised a $20 million Series B round led by Panthera Growth Partners, with Alteria Capital, xto10x Technologies, and previous investor Green Frontier Capital also taking part. The company has raised a total of $22.5 million. TechCrunch has more here.

Mozaic, an eight-year-old Los Angeles startup that helps creators such as musicians, YouTubers, and Twitch streamers manage payments and split revenue among collaborators for different projects, raised a $20 million Series A round. Volition Capital was the deal lead. The company has raised a total in excess of $27 million. TechCrunch has more here.

PhysicsX, a London startup founded this year that uses generative AI to create and run simulations for engineers working in the automotive and aerospace industries, raised a $32 million Series A round led by General Catalyst, with Standard Industries, NGP Energy, Radius Capital, and Henry Kravis also pitching in. TechCrunch has more here.

RepeatMD, a two-year-old Houston startup that builds customer engagement software for wellness centers and spas, raised a $40 million Series A round co-led by Centana Growth Partners and Full In Partners, with PROOF also joining in. The company has raised a total of $56 million. TechCrunch has more here.

WeRoad, a six-year-old Milan startup that is creating a marketplace for group adventure travel, raised a $19.7 million Series B round. H14 was the deal lead. The company has raised a total of $36 million. Silicon Canals has more here.

Aptus.ai, a five-year-old startup based in Pisa, Italy, that helps banks and insurance companies transform legal documents into interactive, machine-readable formats for compliance and risk management purposes, raised a $3.3 million round led by P101, with additional participation from Fin+Tech. FinTech Global has more here.

Biomel, a six-year-old London startup that produces drinks, snack bars, and powders for gut health care, raised a $6.9 million Series A round. IRIS Ventures was the deal lead. Tech.eu has more here.

CheckRewards, a Dubai startup that says it uses machine learning to offer consumers cash incentives based on promotions, cashback rewards for everyday purchases, and receipt scans, raised a $1.2 million round. Mitgo Group led the investment. Arabian Business has more here.

DoorFeed, a two-year-old UK startup that provides institutional real estate investors with tools for data management, energy performance analysis, and overall portfolio management, raised a $7.7 million seed extension round led by Motive Ventures, with Stride VC and Seedcamp also taking part. TechCrunch has more here.

QuantumDiamonds, a German startup that says its atom-size quantum sensors enable non-destructive, nano-scale imaging of magnetic fields, raised a $7.7 million seed round. IQ Capital and Earlybird co-led the deal, with Onsight Ventures, First Momentum, Creator Fund, UnternehmerTUM, the European Innovation Council Accelerator, and the German state of Bavaria also piling on. Tech.eu has more here.

Dealmakers are feeling optimistic about the year ahead, but do you have the right strategies in place to maintain your competitive edge? Download Affinity's new deal sourcing guide and get insights from firms like Fifty Years, 01 Advisors, and 8VC about how they're thinking about sourcing deals in 2024. Get your copy of the guide today.

SEVA, a new growth equity fund founded by 28-year-old former Susquehanna Growth Equity investor Shalin Mehta, has raised an $85 million debut fund to invest in customer-centric founders of fast-growing, bootstrapped companies. TechCrunch has more here. 

Newlands, a secretive family office/hedge fund led by former Sequoia Capital partner Michael Abramson and funded by WhatsApp  cofounder and former CEO Jan Koum, has accumulated nearly $10 billion in tech stocks. Now, it wants to invest in startups, reports Forbes, which has more here. 

Prefab home builder Veev is reportedly shutting down. The 15-year-old unicorn, which raised a total of $600 million ($400 million of which it collected last year), laid off 30% off its workforce in November, 2022.

EU regulators voiced their opinion today that Amazon's planned purchase of iRobot for $1.4 billion could squelch competition in the robot vacuum market. Amazon vowed to address their concerns.

Singapore-based fast fashion house Shein is going public, reports The WSJ. The company was valued at $66 billion when it last raised money in May.

Meanwhile, per Bloomberg, SenseTime Group shares plummeted their most since April after short-seller Grizzly Research released a report accusing the Chinese AI company of inflating its revenues. Grizzly cited documents and insiders describing how SenseTime engaged in "round-tripping," saying it financed companies that in turn fed business to SenseTime. Shares tumbled as much as 9.7% in Hong Kong after the report, which SenseTime said “is without merit . . ."

Elon Musk is visiting Israel in an apparent attempt to dampen charges of anti-Semitism against him. Israeli authorities have told him that he can only operate Starlink in Israel with their approval. 

Former Binance CEO Changpeng Zhao isn't going anywhere: a U.S. judge has ruled that he cannot leave the country until he has been sentenced for violating U.S. anti-money laundering laws.

The San Francisco-based venture firm SignalFire seems to be signaling its bet on a turnaround in 2024; it says it just finished a hiring spree, adding nine new members to its roster.

After launching an ambitious video games strategy two years ago, TikTok parent ByteDance has launched mass layoffs as it restructures that gaming business.

The CRISPR era is here.

Maybe OpenAI's Q* isn't the end of days algorithm we imagined after all.

The ransomware attack at Fidelity National Financial is a "catastrophe," admits the company.

The U.S. is pressuring the UAE to do something about G42, an AI startup controlled by the kingdom that is reportedly working with China.

Google Drive users have noticed files go missing, and now Google is confirming that it is looking for them.

Merriam-Webster's word of the year is a testament to the influence of AI.

"Your Amazon order of reusable metal straws is currently on its way via the most ecologically devastating route you could imagine."

Daniel Craig's new 'do is breaking the Internet.

The new Mercedes Electric G-Wagen, complete with tank turn.

Golf sandals for après-tee.

Vivek Ramaswami, Partner at Madrona Venture Group, recently told Affinity: “You can feel the shift happening of seeing more deals in series B+ stages. It's getting people excited, there’s an element that things are coming back.” He's just one contributor to Affinity's new deal sourcing guide. Get the guide to ensure your team is ready with deal sourcing strategies designed for 2024. Download now.