The Spotify layoff letter, a new AI model from Alibaba, and a Boston VC firm abruptly shuts down

Hello! According to an SEC filing, xAI, Elon Musk's artificial intelligence startup, has raised $135 million of a planned $1 billion round from four unnamed investors. 

How nations are losing a global race to tackle AI's harms.

The State of Venture Capital - a look back at Q3 2023. While Q2 saw a promising upswing in capital raised by venture funds, new data puts Q3 at a nearly decade-long low. In Juniper Square’s latest update, Eugene Tetlow, Head of Strategy for Private Equity and Venture Capital, breaks down Q3’s VC fundraising trends, surprising exit values, and average fund sizes. Get the insights.

Foretellix, a six-year-old Tel Aviv startup whose software tests driver assistance and autonomous systems in new vehicles from customers such as Volvo, Daimler, Isuzu, and Toyota, raised a $85 million Series C round led by 83North. Other participants in the round included Temasek, Woven Capital (Toyota's venture fund), Nvidia, and Artofin, as well as previous investors MoreTech, Nationwide, Volvo Group VC, Jump Capital, Next Gear Ventures, and OurCrowd. The company has raised a total of $135 million. TechCrunch has more here.

Gecko Robotics, a Pittsburgh startup that develops robots and software for inspecting the insides of large industrial assets like boilers and power plants, raised a $100 million Series C extension from US Innovative Technology and Founders Fund at a $633 million post-money valuation. Bloomberg has more here. 

Odyssey Therapeutics, a two-year-old startup based in Cambridge, Ma., that says it is using AI and machine learning to develop small-molecule and protein therapeutics, raised a $101 million Series C round led by Ascenta Capital, with OrbiMed, SR One, General Catalyst, Foresite Capital, Woodline Partners, HBM Healthcare Investments, Colt Ventures, BlackMars Capital, T. Rowe Price, Catalio Capital Management, Walleye Capital, Alexandria Venture Investments, Racing Beach Ventures, Leerink Partners, Ab Magnitude Ventures, KB Investment, and The Global BioAccess Fund also piling on. The company has raised a total of $487 million. Fierce Biotech has more here.

Banxware, a three-year-old Berlin startup that provides embedded finance capabilities to German SMBs, raised a $16.2 million Series A round led by Unicredit and Fabrik, with previous investors 13books Capital, VR Ventures, D4 Ventures, and Force Over Mass also anteing up. AltFi has more here.

Beeper, a Palo Alto-based startup whose new app, called Beeper Mini, allows Android users to send and receive end-to-end encrypted iMessage chats for just $1.99 per month, has raised $16 million in funding so far led by investor  Garry Tan. Other backers include SV Angel, Samsung Next, Liquid2 Ventures, Niv Dror from Shrug Capital, Kevin Mahaffey and others. Pebble cofounder and former Y Combinator partner Eric Migicovsky cofounded Beeper and is its CEO. TechCrunch has more here.

Dust Identity, a Newton, Ma., startup that authenticates products by marking them with invisible diamond dust, has reportedly raised $40 million in funding to enter new markets including sports memorabilia, luxury goods and art. Castle Island Ventures led the round, joined by Amex Ventures, Airbus Ventures, Kleiner Perkins and 8VC. Bloomberg has more here.

Eligo Bioscience, a nine-year-old Paris startup that aims to develop new medicines by editing the genes of microbiome bacteria, raised a $30 million Series B round led by Sanofi Ventures, with Bpifrance as well as previous investors Khosla Ventures and Seventure Partners also taking part. More here.

EnCharge AI, a one-year-old startup based in Santa Clara, Ca., that says it is developing AI-accelerating chips to make AI more accessible, affordable, and energy-efficient than traditional AI hardware, raised a $22.6 million round led by VentureTech Alliance, with RTX Ventures, ACVC Partners, Anzu Partners, and Schams Ventures also pitching in. The company has raised a total of $45 million. TechCrunch has more here.

Ketryx, a two-year-old startup based in Somerville, Ma., that claims to help medical software developers build faster and easier with automation, organization, and seamless integration, raised a $14 million Series A round led by Lightspeed Venture Partners and including previous investors MIT E14 Fund and Ubiquity Ventures. The company has raised a total of $18 million. SiliconANGLE has more here.

Kyron Learning, a one-year-old startup based in Vienna, Va., that uses "conversational AI" to create personalized learning experiences for kids, especially in math, raised a $14.6 million Series A round led by Global Silicon Valley Ventures, with Owl Ventures, ECMC Group Education Impact Fund, Common Sense Growth Fund, Charter School Growth Fund, Cambiar Education, LearnerStudio, Imagine Learning, and Array Education also chipping in. TechCrunch has more here.

Mine, a four-year-old Tel Aviv startup whose tool allows consumers to quickly run a data privacy audit, raised a $30 million round led by Battery Ventures, with PayPal Ventures and Nationwide Ventures as well as previous investors Saban Ventures, Gradient Ventures, MassMutual Ventures, and Headline Ventures also contributing. The company has raised a total of $42.5 million. TechCrunch has more here.

Nth Cycle, a six-year-old startup based in Beverly, Ma., that works with scrap recyclers, miners, and battery recyclers to recover critical metals, raised a $44 million Series B round led by VoLo Earth Ventures, with MassMutual, Caterpillar, and Equinor Ventures also participating. More here.

Rich Data Co., an seven-year-old Sydney startup that helps banks evaluate loan candidates through a type of AI that enables customers to understand the AI's decision process, raised an $18.3 million Series B round co-led by Westpac and nCino, with BMY Group and Octava Fund also investing. More here.

Asato, a Saratoga, CA, startup founded this year whose goal is to build an AI-powered "co-pilot" for corporate IT chiefs, raised a $7.5 million seed round co-led by Intel Capital and Lip-Bu Tan, with Shah Capital Partners also joining in. More here.

BioFluff, a one-year-old Paris startup that has created a plant-based fur alternative, raised a $2.4 million seed round. Astanor Ventures led the transaction. WWD has more here.

Cambium Carbon, a startup based in Washington, DC, that connects businesses needing wood with landowners willing to grow it sustainably, raised a $5.3 million seed round led by MaC Venture Capital and including Blue Pool Capital, Rise of the Rest, Alumni Ventures, Connecticut Innovations, Gaingels, and Avesta. More here.

Carbon Maps, a Paris startup that helps food companies track their carbon footprint down to the product level, raised a $3.2 million seed extension. Investors included Back Market and Daphni. The company has raised a total of $7.6 million. TechCrunch has more here.

Enveedo, a two-year-old Miami startup that provides mid-market companies with a pre-built cybersecurity "playbook" and automated workflows, raised a $3.15 million seed round led by Silverton Partners, with Runtime Ventures and Blu Ventures also investing. Refresh Miami has more here.

Farmless, a two-year-old Amsterdam startup that is developing alternative protein sources via fermentation technology in order to replace meat, dairy, and eggs, raised a $5.2 million seed round. World Fund and Vorwerk Ventures were the co-leads. TechCrunch has more here.

HomeCooks, a three-year-old London startup that has created a food delivery marketplace connecting chefs with customers, raised a $3.1 million seed round led by SpeedInvest, with additional investment from DFF and Love Ventures. Tech.eu has more here.

Machinery Partner, a startup that connects builders, contractors, and subcontractors with manufacturers and distributors of heavy machinery and provides different financing options, raised an $8 million Series A financing co-led by Armory Square Ventures and Pritzker Group, with RiverPark Ventures and Contour Venture Partners as well as previous investors Euclid Ventures, One Way Ventures, and Techstars Ventures also contributing. The company also raised $3 million in debt. More here.

Pachama, a five-year-old San Francisco startup that helps companies offset carbon by using satellites to measure forest carbon storage, raised a $9 million Series B extension round from T.Capital (the corporate venture capital arm of Deutsche Telekom) and previous investors Lowercarbon Capital and Positive Ventures. The company has raised a total of $88 million. More here.

Plum, a seven-year-old London startup whose eponymous app helps consumers manage their finances, raised a $5.4 million round. Eurobank led the transaction. FinTech Alliance has more here.

Respell, a one-year-old San Francisco startup that aims to help non-technical people create AI-powered workflows, raised a $4.75 million seed round. Craft Ventures was the lead investor. TechCrunch has more here.

Rightbot, a startup developing suction-based robots that can unload truck-transported freight in a range of sizes, has raised $6.25 million round led by Amazon’s Industrial Innovation Fund with participation from SOSV and Entrepreneur First. TechCrunch has more here. 

Shadow, a Paris startup that says it can help businesses develop crypto products faster and cheaper by creating “shadow forks,” or private testing grounds that mirror the blockchain, raised a $9 million seed round. Paradigm was the deal lead, with additional investors including Coinbase Ventures, Electric Capital, Ethereum Foundation, Uniswap, and Flashbots. The Block has more here.

Strong by Form, a Madrid startup whose mission is to create a sustainable alternative to concrete, raised a $5.2 million seed round led by CMPC Ventures, with CiRi Ventures, MAIF Avenir Ventures, Teampact Ventures, Climate Insiders, Core Angels, Savia Ventures, Symbia VC, FINSA, and VX Ventures also investing. EU-Startups has more here.

UP Catalyst, a four-year-old startup based in Tallinn, Estonia, whose goal is to make graphite from carbon dioxide for use in lithium-ion batteries, raised a $4.3 million seed round led by Extantia, with SmartCap also ponying up. The company has raised a total of $6.6 million. TechCrunch has more here.

This unexpected asset’s prices (handily) beat your favorite stocks. You’ve likely never considered investing in this market, but billionaires like Jay-Z and Ken Griffin have been clued into it for decades: paintings by artist Jean-Michel Basquiat. And now, for the first time, everyday investors are getting in on the action. Thanks to Masterworks, an award-winning platform for investing in blue-chip art. Prices for paintings by Basquiat grew at an annualized rate of 33% from 1984 to 2022 – outpacing the S&P 500. Strictly VC readers can skip the waitlist. 

* Investing involves risk and past performance is not indicative of future returns. See important Reg A disclosures and aggregate advisory performance masterworks.com/cd.

America’s Frontier Fund, a fund designed to fund tech breakthroughs that it deems to be in the national interest, has made its first startup investments through a new venture capital firm, reports Bloomberg. Backed by Peter Thiel, Eric Schmidt and former IBM CEO Sam Palmisano, among others, the organization reportedly bills itself as the first nonprofit investment platform dedicated to boosting U.S. innovation and manufacturing.

Avenir Growth Partners is seeking to raise $800 million for its fifth fund, it disclosed in a securities filing, two years after it began the paperwork to raise its IV fund, which it closed with about $780 million in capital commitments. The New York-headquartered firm is an investor in nearly four dozen startups including DuckDuckGo, Flutterwave, and India’s Zetwerk and Spinny.

Older startups dominate the IPO class of 2024, observes The Information, which notes that: "Reddit, which will be 19 years old next year, is one of the potential headliners for a 2024 tech IPO class that will likely be largely geriatric in startup years. Those could include payments firm Klarna (also 19 years old next year), ticketing giant StubHub (17 years old), car-rental marketplace Turo (15 years old), ticketing site SeatGeek (14 years old), online couponing app Ibotta (13 years old), blue-collar software firm ServiceTitan (12 years old) and fast-fashion retailer Shein (12 years old)."

Yann LeCun, Meta's top AI scientist and a professor at New York University, reportedly told Meta cofounder and CEO Mark Zuckerberg that Facebook and Instagram could become extinct if Meta didn't catch up with ChatGPT.

Binance's new CEO, Richard Teng, who replaced Changpeng Zhao after Zhao pleaded guilty to violating federal money-laundering rules, is refusing to disclose the location of Binance's global headquarters. 

Airbnb has elevated CFO Dave Stephenson to a new role overseeing its business strategy, including the home-sharing company’s overseas expansion. Stephenson, who has been the company’s finance head since 2019, will be Airbnb’s first chief business officer, the company said today.

Just nine months after closing on $570 million in new funds, Boston-based VC firm OpenView Venture Partners is laying off most of its staff and shutting down.

Expense management startup Navan has sacked 145 staff members, a full 15% of its workforce.

ZestMoney, a Bengalaru-based BNPL startup that raised money from investors liek Goldman Sachs and once boasted a $445 million valuation, is shuttering.  

In just 22 hours, the first trailer for Grand Theft Auto VI has racked up 85 million views, breaking a MrBeast video’s record for most YouTube views in 24 hours.

Stock experts think the increasing popularity of fat loss drugs like Ozempic could have a positive impact on athleisure brands.

Venture capital investment in startups in the middle of the U.S. more than tripled in a decade, reaching $55 billion by the end of 2021, according to a recent Heartland Forward report.

Does tipping actually improve ChatGPT's performance?

The Spotify layoff letter.

Saudi Arabia's plan to become a gaming superpower.

A new AI model from Alibaba could replace Tik Tok influencers.

Experts doubt Bunny "the talking dog" can really talk.

How to look better on your video calls.

All hail Krampus, the anti-Santa.

"The Beam" at Rockefeller Center.

The best all-electric boats.

A $2,000 duffel bag.

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