10 deals bring the heat in tepid funding month

Wednesday, 6 September 2023

10 deals bring the heat in tepid funding month

September 6, 2023

Hi, Agen. Venture funding overall seems to have settled into a kind of sluggish new normal, with startups globally raising around $22 billion last month, per Crunchbase data. That’s a smidge below the monthly average we’ve seen all year. But there were some companies that raised big — and some very big — rounds as well. Now all eyes are on the IPO markets opening back up.

🐢 VC funding still slow — but there’s hope on the horizon

Global startup funding in August was on par with what we’ve seen in other months this year. Notably, though, early-stage funding almost halved and seed funding was down roughly a third from a year ago. With Arm, Instacart and Klaviyo all set to IPO this month, everyone will be looking to see if they can spark a recovery in the startup world.

🔥 These 10 huge rounds brought the heat to August funding

Even with the overall VC market languishing, some startups reeled in very large funding deals last month. They spanned industries including energy, space, fintech, biotech, networking technology and of course AI.

💪 Arm reaches for $52B valuation in IPO

Chip designer Arm Holdings plans to go public at a valuation as high as $52 billion when it lists on the Nasdaq this month. While that’s down from the previously reported $60 billion to $70 billion valuation Arm was apparently seeking, it will still be the largest tech IPO since electric vehicle-maker Rivian went public in late 2021.

🇨🇳 Red flag? China’s early-stage funding softens

At first glance, China’s startup funding scene doesn’t seem to be doing that poorly, especially given growing geopolitical tensions between the nation and the U.S. and an overall decline in venture capital spending worldwide. But a deeper dive into the numbers reveals a decline in early-stage funding that could set off alarms about the full health of the VC market in China.

✂️ Tech academy, recruiting platform see layoffs as demand wanes

A coding academy, two gaming companies, a biotech, a digital sports startup and a tech recruiting platform were among the new additions to our Tech Layoffs Tracker last week.

💵 How to improve your gross profit margin

As a founder or CEO of a SaaS company, one of the metrics your investors and buyers will probably scrutinize most closely is your gross profit. Guest author Gaurav Bhasin explains what gross profit is, why it matters and — most importantly — how you can improve it.