Late-stage VC funding rebounds — why that matters

Plus, the AI gold rush continues

October 5, 2023 Hi, Agen. If you’re tired of hearing about the venture funding downturn, we’ve got a bit of good news for you. While new Crunchbase data shows global venture funding in Q3 still declined — in fact, it was the second-lowest quarter since the downturn started last year — investors’ enthusiasm for AI and a couple of other sectors pushed late-stage funding higher. That, combined with a reawakened IPO market, could help pull the startup world out of its current malaise. 💰 VC is down, but late-stage rebounds as this sector gets huge rounds For the first three quarters of 2023, global startup funding reached $221 billion, marking a 42% decline, exclusive Crunchbase numbers show. Alarmingly, early-stage funding showed the steepest decline year over year compared to all other stages. But it’s not all bad news: late-stage funding, powered by huge rounds for AI startups and other sectors, actually increased. We break down our just-released Q3 funding data. 👀 Eye on AI: unicorns aim for even bigger valuations Hey, Claude, how much are you worth? Anthropic, the ChatGPT rival with its own AI assistant Claude, is reportedly in talks with investors about raising another $2 billion in funding at a valuation as high as $30 billion. And speaking of ChatGPT, parent company OpenAI is reportedly in talks to sell shares at a staggering $90 billion valuation. In a new column, we look at that and the other big sums floating around artificial intelligence as the AI gold rush continues. 🪖 Anduril aims for sky-high valuation in new round — report Anduril, the controversial defense tech startup founded by Oculus founder Palmer Luckey, is reportedly looking to raise up to $500 million in fresh capital at a $10 billion valuation. Related Crunchbase Pro list: Defense Tech Funding ⚖️ Can AI make the case for dwindling legal tech funding? The scales are not tipping in legal tech’s favor. Venture funding to legal tech startups is down significantly this year — even more so than the overall VC decline — Crunchbase data shows, but there is one bright spot: A number of startups that bring AI to bear in the legal world have received significant funding deals. They include one that hunts for potential class-action cases, and another that employs generative AI to find regulatory insights. Related Crunchbase Pro list: Legal Tech Funding Recent Investments Trafigura $400M / Post-IPO Debt Trafigura is a commodity trading company that facilitates the distribution of commodities such as metals, minerals, and energy. Categories: Industrial • Mineral • Oil and Gas • Shipping • Supply Chain Management Founders: Claude Dauphin Investors: Export-Import Bank of the United States (Lead) Vir Biotechnology $50M / Grant Vir Biotechnology is an immunology company that develops products to treat and prevent infectious diseases and other serious conditions. Categories: Biotechnology • Health Care • Medical • Therapeutics Founders: Klaus Frueh, Louis Picker, Robert Nelsen Investors: Biomedical Advanced Research and Development Authority (BARDA) (Lead) Bizongo 4.2B INR / Series E Bizongo develops tech-enabled B2B platforms for raw material procurement, vendor digitization, supply chain financing, and ESG scorecards. Categories: B2B • E-Commerce • Packaging Services • Supply Chain Management Founders: Aniket Deb, Ankit Tomar, Sachin Agrawal Investors: Schroder Adveq (Lead), B Capital Group, British International Investment + 2 more More Fundings Company Amount / Round Lead Investor Pulumi $41M / Series C Madrona Edelweiss Financial Services 2.0B INR / Post-IPO Debt - Adani Enterprises Unknown / Post-IPO Equity International Holding Company All Recent Funding Activity Recent Acquisitions Pure-systems Pending acquisition by PTC for Unknown Discover innovative companies and the people behind them. 564 Market St, San Francisco, CA 94104 © 2023 Crunchbase Inc. All rights reserved. Privacy Policy | Terms of Service Unsubscribe from Crunchbase Daily.