Sourcery → USA

(7/1-7/5) 'Merica 🇺🇸 Sentient, ZerEyes, K Health, Tembo

Musings

AI

• Coatue’s Laffont on AI Darlings and Opportunities in Today’s Markets [David Rubenstein]

• Applications Over AI Models...Scott Belsky's Copyright Concerns...a New Technological Cold War. Here’s What You Missed from Cerebral Valley New York [Newcomer]

• The New Ideas Needed for AGI [Sonya Huang & Pat Grady, Sequoia]

• AI startups have thrived amid the broader startup downturn, with investors pouring $27.1B into them from April to June, nearly half of all US startup funding, contributing to a total of $56B raised by US startups, a 57% increase from the previous year. [Economic Times]

• Apple will gain an observer role on OpenAI's board as part of a recent AI agreement, with the head of Apple's App Store Phil Schiller selected for the position. [Economic Times]

• AI-enhanced diagnostic tests are detecting diseases much earlier by analyzing vast amounts of data, surpassing traditional methods limited by known biological markers. [Axios]

  • This is evidenced by recent breakthroughs in identifying chronic illnesses, endometrial cancer, and early-stage Parkinson's disease.

HardTech

• Deep Dive: Defense 2.0 - Protecting America [Chamath]

  • How much does the U.S. spend on defense? How does the defense industry work? What will the future of defense look like tomorrow?

• American Airlines has agreed to purchase 100 hydrogen-electric engines from ZeroAvia to power regional jets with zero in-flight emissions and is also investing additional funds in the company. [Axios]

• SLB and TotalEnergies have announced a 10-year partnership to co-develop scalable digital solutions, including AI, to enhance energy resource access, performance, and efficiency, focusing on challenges like carbon capture, and utilizing SLB’s Delfi digital platform. [World Oil]

• The Semiconductor Industry Association announced that global semiconductor sales reached $49.1 billion in May 2024, up 19.3% from May 2023 and 4.1% from April 2024, based on World Semiconductor Trade Statistics.

America

• America [Kyle Harrison]

• The American Millennium, A Fourth of July Tribute to a Nation on the Rise [Not Boring]

• ​​"America Is About To Crash Into A Brick Wall"- Wealth, Rising War, AI & Elon Musk | David Friedberg [Impact Theory]

X/Twitter

Other

• Google's emissions increased by nearly 50% since 2019, according to its 2024 environmental report, marking a setback in its net-zero emissions goal by 2030. [CNBC]

  • The rise is attributed to higher energy consumption in data centers and supply chain emissions due to the rapid advancements and demand for AI. 

• Amazon (AMZN) shares tested an all-time high on Tuesday, briefly surpassing 200 and marking a milestone after a 20-for-1 stock split in June 2022. This surge follows an analyst's statement about Amazon's cloud business nearing an AI "inflection point" and the company's market cap surpassing $2 trillion last week. [Investors]

  • Despite slightly easing, the shares were at 200.06, up 1.4% for the day

• Threads, Meta's alternative to Twitter, has reached over 175 million monthly active users since its launch a year ago. [Axios]

  • Despite its steady growth, Threads still lags behind Twitter's scale and influence, which reports 250 million daily users and 550 million monthly users, while Elon Musk's involvement with Twitter has driven some users to alternatives like Threads.

---

Last Week (7/1-7/5):

Relevant deals include the 35+ deals across stages below. 

I've categorized the deals below into eight categories, Fintech, Care, Enterprise / Consumer, HardTech, Sustainability, Acquisition/PE, and Fund Announcements, and ordered from later-stage rounds to early-stage rounds.

Highlighted VC Deals include: 

Sentient, ZerEyes, K Health, Tembo

Acquisitions & PE

BlackRock/Preqin, Desktop Metal/Nano Dimension

Funds

New Mountain Capital, Lee Equity Partners, Iron Path Capital, Westly Group

Final Numbers

Performance of the major US stock indices in the first half of 2024; Youth unemployment rate in the U.S. at the bottom.

---

VC Deals 

This roundup was customized & powered by Wonder. Start your free trial here.

Fintech:

- Pi Squared, a Chicago, IL-based blockchain startup developing a universal ZK circuit powered by Proof of Proof, raised $12.5M in Seed funding, led by Polychain Capital and joined by ABCDE, Bloccelerate, Generative Ventures, Robot Ventures, Samsung Next, and other angel investors.

- Nycrypto Labs, an NYC-based blockchain development platform accelerating the transition from Web2 to Web3, closed $800K in Pre-Seed funding, led by DNA Fund and joined by Michael Terpin’s Transform Ventures and other angel investors.

Care:

- K Health, an NYC-based AI primary care platform, secured $50M in funding, led by Claure Group and joined by Pablo Legorreta (founder and CEO of Royalty Pharma), Mangrove Capital Partners, Valor Equity Partners, and Atreides Management, LP.

- BoldHue, a Boise, ID-based beauty-tech company, raised approximately $3.4M in Seed funding, led by Lucas Venture Group and joined by Capital Eleven, Backstage Capital, Tacoma Ventures, Mark Cuban, and Kevin Huvane.

Enterprise/Consumer:

- Sentient, a San Francisco-based AI research and development platform, secured $85M in seed funding, led by Founders Fund, Pantera Capital, and Framework Ventures, with support from Ethereal, Robot Ventures, Symbolic Capital, Dao5, Delphi, Primitive Ventures, Nomad, and others.

- ZeroEyes, a Philadelphia, PA-based AI-based gun detection video analytics platform, secured $53M in Series B funding, led by Sorenson Capital, with support from Intel Capital, BroadLight Capital, and existing investors.

- Tembo, a Cincinnati, OH-based provider of a Postgres-managed service for handling transactional, analytical, and AI workloads, closed a $14M Series A funding round, led by GreatPoint Ventures alongside Venrock, Grand Ventures, Wireframe Ventures, Defined Capital, Cintrifuse Capital, and other angel investors.

- Pieces, a Cincinnati, OH-based developer productivity tech startup, secured $13.5M in Series A funding, led by Drive Capital and joined by Cincinnati’s Cintrifuse Capital, Miami University’s RedHawk Ventures, and other local high-net-worth investors.

- Phaidra, a Seattle, WA-based AI-powered virtual operator of plants and other industrial systems, secured $12M in funding from Index Ventures.

- Uncaged Innovations, a New York-based developer of leather from grains, closed $5.6M in Seed funding, co-led by Green Circle Foodtech Ventures and Fall Line Capital, with participation from Ponderosa Ventures, Golden Seeds, and InMotion Ventures.

- Vida, an Austin, TX-based carrier-grade AI voice agent solutions provider for SMBs, completed a $3M Seed funding round, led by Stillmark.

HardTech:

- Eve Air Mobility, a Melbourne, FL-based eVTOL developer, secured $20M in funding from Japanese motor maker Nidec.

- Prodia, an Atlanta, GA-based distributed network provider of GPUs for AI inference solutions, closed $15M in Seed funding, led by Dragonfly Capital, and joined by HashKey, Web3.com, Index Ventures, Symbolic Capital, OKX Ventures, EV3, Artichoke, TRGC, Folius, Tangent Capital, Southern Equity, and other individual investors.

- Feon Energy, a Woburn, MA-based advanced battery electrolyte developer, raised $6.1M in Seed funding, led by Fine Structure Ventures, with participation from Eight Roads, Foothill Ventures, MassVentures, EPS Ventures, and Valkyrie Fund.

Sustainability:

- Thiozen, a Pasadena, CA-based company producing clean hydrogen from “sour gas” waste streams, raised $3.2M in funding, backed by Emissions Reduction Alberta (ERA) and Alberta Innovates.

---

Acquisitions & PE:

- BlackRock (NYSE: BLK) agreed to acquire Preqin, a London, U.K.-based private markets data platform, for about $3.2B in cash.

- Thoma Bravo, a Chicago, IL-based software investment firm, is set to acquire Everbridge, Inc., a Boston, MA-based critical event management and national public warning solutions provider, for about $1.8B.

- Nano Dimension (Nasdaq: NNDM) is set to acquire Desktop Metal (NYSE: DM), a Burlington, MA-based metal and carbon fiber 3D printer, for about $183M.

- Qloo, a New York City-based AI platform for predicting consumer preferences, received a $20M investment from Bluestone Equity Partners.

- DRiP Haus, an Austin, TX-based Solana-based creator platform, acquired Vault Music, a Solana-based limited-edition music platform, for an undisclosed amount.

- Togetherwork, an Atlanta, GA-based software and payment solutions provider to groups and organizations, secured an undisclosed investment from Park Square Capital.

- Motorola Solutions (NYSE: MSI), a Chicago, IL-based connect technologies company, acquired Noggin, a Sydney, Australia-based cloud-based business continuity planning, operational resilience, and critical event management (CEM) software, for an undisclosed amount.

- Instructure Holdings, a Salt Lake City, UT-based company facilitating education delivery, acquired Scribbles, a Charlotte, NC-based credentialing and records management provider to K-12 school districts, from Alamar Partners, for an undisclosed amount.

- SIXGEN, an Annapolis, MD-based cybersecurity solutions provider for U.S. intelligence, defense, and critical infrastructure, acquired Secure Enterprise Engineering, a Hanover-based cybersecurity firm, for an undisclosed amount.

- GrowthCurve, an NYC-based private equity firm leveraging data technology to build businesses, acquired Duetto, a San Francisco, CA-based revenue management software for the hospitality industry, for an undisclosed amount.

- Fabric, an NYC-based healthcare technology company supporting care delivery through technology, acquired MeMD, a virtual care benefits platform, from Walmart Inc (NYSE: WMT), for an undisclosed amount.

- ClientSuccess, a Lehi, UT-based customer success platform, acquired Baton, a customer onboarding and implementation platform, for an undisclosed amount.

- Austin Powder, a Cleveland, Ohio-based provider of industrial explosives and blasting solutions, was acquired by American Industrial Partners for an undisclosed amount.

- Aptean, an Alpharetta, Georgia-based provider of resource planning and supply chain software, was acquired by Clearlake Capital Group for an undisclosed amount.

---

Fund Announcements:

This roundup was customized & powered by Wonder. Start your free trial here. 

- New Mountain Capital, an NYC-based growth-oriented alternative investment firm, completed its seventh control/control-oriented fund, New Mountain Partners VII, L.P., and its related vehicles with a total commitment of $15.4B from multiple pension funds, insurance companies, sovereign wealth funds, asset managers, foundations, endowments, family offices, RIAs, and high net worth individuals, among others.

- Lee Equity Partners, an NYC-based middle-market private equity firm, secured $1.3B for its fourth fund from various family offices, private and public pensions, funds of funds, sovereign wealth funds, and insurance companies.

- Iron Path Capital, a Nashville, TN-based private equity firm investing in the specialty industrials and healthcare sectors, completed its Fund I, at $273M.

- American Discovery Capital, a Los Angeles, CA-based merchant bank focused on founder-led and family-owned companies in the lower middle market, completed its Fund II, at a total commitment of $190M.

- The Westly Group, a Menlo Park, CA-based venture capital firm, closed $100M for its new fund focused on seed investments in companies in the energy, mobility, building, and industrial sectors.

- Freeflow Ventures, a Pasadena, CA-based venture capital firm, raised $50M across two funds focused on companies developing science-based solutions for human and planetary health.

---

Final Numbers

Data: FactSet; Chart: CNBC COTD

• The general performance of the major U.S. stock indices in the first half of 2024 shows a positive trend, with all three indices - Dow Jones, Nasdaq, and S&P 500 -  experiencing gains. [CNBC]

  • The Nasdaq outperformed other major U.S. stock indices with an 18.1% gain. The S&P 500 also saw significant growth, increasing by 14.5%. In contrast, the Dow Jones lagged, achieving a more modest rise of 3.8%. [CNBC]

Data: US Bureau of Labor Statistics via Fred; Chart: CNBC

• The overall unemployment rate has remained at or below 4% for 30 months, nearly setting a record. However, the unemployment rate for 16- to 24-year-olds rose to 9% in May, which is considered typical according to experts. [CNBC]

  • Despite the youth unemployment rate dropping below 7% in 2023, indicating a particularly strong labor market, experts note that a 9% rate is normal for young workers even during good economic times. [CNBC]

---

New Research

Coffee consumption and cardiometabolic health: a comprehensive review of the evidence

• This research highlights that coffee consumption may temporarily raise blood pressure but does not contribute to long-term hypertension and might reduce the risk of metabolic syndrome and non-alcoholic fatty liver disease. It consistently links coffee to lower risks of type 2 diabetes and chronic kidney disease, with complex effects on cardiovascular health, including potential stroke prevention and reduced heart failure risk. [PubMed]

• Moderate coffee consumption (1-5 cups per day) is associated with lower all-cause mortality and may enhance healthspan and longevity, though further research is necessary to refine health recommendations. [PubMed]

Persistent and Long-Term Co-Movements between Gender Equality and Global Prices