All Stories
Why This VC Firm Bought Telemedicine Company Lemonaid Out Of The 23AndMe Bankruptcy
As startup valuations reset and venture capital firms hunt for unconventional deals, one investor is looking to the bankruptcy courts. Bambu Ventures, an early-stage VC firm, last month agreed to acquire telemedicine company Lemonaid Health — once a $400 million bet by 23andMe — for just $10 million. The transaction is more than a bargain buy. It’s also an intriguing deal that illustrates how an early-stage VC firm can operate by a private-equity playbook to revive a distressed asset. DNA testing company 23andMe acquired Lemonaid for $400 million in 2021. Lemonaid operated as a division of 23andMe until the parent company filed for Chapter 11 bankruptcy earlier this year. Last month, New York-based Bambu made a deal with Chrome Holding Co. — the rebranded former parent company 23andMe Holding — in which the venture firm agreed to buy Lemonaid for a staggering 40x less than the DNA company had originally paid for the telehealth brand. Kyle Pretsch, COO of Lemonaid SPV Inc. So why did Bambu Ventures make a play for Lemonaid? Just how did it win the bid? And what are its plans for the asset? Crunchbase News recently spoke with Kyle Pretsch, COO of Lemonaid SPV Inc. and general partner at Bambu Ventures, to discuss all this and more. The interview has been edited for brevity and clarity. This is not your typical startup purchase. What prompted you to buy Lemonaid? Are you going to operate as an independent startup? Lemonaid wasn’t just a company. It was a vision. It was an incredibly exciting team. It’s an incredible, exciting market, and it’s a mission that we can all feel good about, which is increasing accessibility to healthcare. Obviously, there’s a phenomenal market for that, but at the end of the day, we are working to provide improved transparency, the ability to improve your lifestyle at an affordable cost, and do it in a nice, systemic fashion, to reach more people. 23andMe has been an incredible custodian of this company and so we didn’t just see it as a company. We saw something much, much more. We plan to operate it independently. We like the fact that this is a space we’re familiar with. This is a space we have other holdings in. We expect there will be opportunities along the way to use those contributions to help grow Lemonaid. I understand that you’re paying about $10 million for Lemonaid when 23andMe paid $400 million to acquire it just a few years ago. Do you view this as an incredible opportunity? Yes. We don’t believe the value of the asset has eroded since 2021. Regeneron is buying the rest of 23andMe. How did you end up with Lemonaid? Regeneron actually didn’t bid for Lemonade. It excluded it from their purchase. And technically Regeneron didn’t win 23andMe, either. At one point, it had been identified as the winning bidder, but an organization called TTAM Research Institute, which was a research institute founded in part by Anne Wojcicki, the original founder of 23andMe, ended up prevailing in the repurchasing of the assets out of bankruptcy. It, too, excluded Lemonaid from its bid. So both organizations put forth what’s called a stalking horse bid, which is if no one else bids, they would absorb the asset for a certain amount. And we ended up bidding in excess of that. This feels very similar to a private-equity play. Do you think this sort of transaction is becoming more common? Are you going to do it more often? This is a really unique situation, and for so many reasons I don’t think venture capital is going to find itself stalking the bankruptcy courts. Nor do I think this was a standard bankruptcy case. But I do think our firm specifically brings a very PE style to venture capital. That’s what we do as a firm. And I think this was an exceptional opportunity where you have a venture-like company with PE idealism and process that can go ahead and reconstitute its growth track. We expect venture growth with PE discipline, and we’re happy to marry the two. The fact that we identified it in bankruptcy court is a huge testament to our firm, how we worked and how we adapted to chase after a vision that we really, really, found meaningful. I believe this is a once-in-a-lifetime opportunity. So it’s not something you’ve done before? I have some experience in this space, but this is not a situation that I’ve ever come across. We’ve looked at things in bankruptcy before, but I think if you talk to anybody involved in this particular case, they would say: “Never has anything like this existed” for 10 different reasons. How do you distinguish yourselves as a VC firm, and did Bambu Ventures actually conduct this acquisition? Bambu Ventures is an operating firm for a variety of venture capital funds. Specifically, our key fund right now is a $50 million to $100 million fund, and Lemonaid is not being purchased from the fund. We offer co-investments and sometimes pursue side deals, and this was something that I think the fund will have some participation in, but this is an act outside of that fund. The same principles, however exist, which is, as a firm we believe in finding the companies that are being given these low values, or are being sometimes overshadowed or overlooked, and then bringing our team to it, and bringing discipline and execution to it, and reinvigorating growth — overlooked assets, plus PE discipline in well-known environments. And that, plus our team, is a formula for our success. The purchasing entity is actually Lemonaid SPV. Bambu Ventures is a guarantor, because that’s a new company. How is this transaction similar or different from a PE-type acquisition? The mechanics are a little bit different in that it’s not being owned by a fund or an LP. It’s owned by an SPV. This is very similar to any kind of corporate transaction. We have a cap table. We have set up what we think is an incredible list of investors. We’ve taken some fund money from other VC funds to help instill that it has a list of interested LPs and parties. So I would say this is very, very similar. The only key difference is we’re investing in a different company … From an organizational governance perspective, we went ahead and moved the investor funds directly into a top, or holding, company with its own cap table, versus a fund. What will you do differently with Lemonaid? The 23andMe team have been great stewards to this company, they’ve been great partners in transition and have really set this transaction up for success. I think there are immediate opportunities to advance within patient care, and that’s adding product and reaching more patients. We plan on investing in marketing spend. Obviously 23andMe, through its process, had reduced that marketing spend heavily. Will you be competing with companies such as Ro and Hims & Hers? There is more than enough white space that we can all operate within our own moats and in our own domains without this warriors’ battle. I will say that we do have visions of incredible growth, and we do have visions of creating a holistic offering that serves more and creates an improved consumer experience. Illustration: Dom Guzman
Exclusive: Findem Lands $36M Series C To Supercharge AI-Powered Hiring
In a competitive hiring environment, the ability to find exceptional talent that isn’t necessarily knocking down your door is hugely desired and not always easy to attain. That’s why so many companies these days are turning to AI-powered talent acquisition and management startups to help them mine for exceptional candidates. One such startup, Findem, has secured $51 million in equity and debt funding, the company tells Crunchbase News exclusively. The raise includes a $36 million Series C led by SLW (Silver Lake Waterman) with participation from Wing Venture Capital, Harmony Capital and Four Rivers Group, as well as $15 million in growth financing from JP Morgan. The financing brings Findem’s total funding since its 2019 inception to $105 million, with $90 million of that being equity, per the company. Redwood City, California-based Findem’s mission is simple, even if its methods are not. It aims to transform how businesses “identify, attract and engage top talent.” The startup uses what it calls 3D talent data (out of a dataset developed out of 1.6 trillion data points) that it combines with AI to automate “key parts of the talent lifecycle.” And those parts include building “top-of-funnel” pipelines of interested candidates, executive search and analyzing workforce and labor markets. In an interview with Crunchbase News, co-founder and CEO Hari Kolam said that Findem’s user base surged by “about 100x” in the last 12 months and that the company is experiencing 3x year-over-year growth. Its enterprise customer base increased by 3x over the last year. It has a user base of more than 12,000 customers, including from Adobe, Box, Medallia, Nutanix and RingCentral, Kolam said. Currently, Findem operates under a SaaS business model, charging per seat. As it expands its agentic abilities, the company plans to add an outcome-based model as well, according to Kolam. It is not yet profitable. Findem is just one of more than a dozen startups at the intersection of AI and recruitment globally that have raised venture capital in 2025. As of early September, global startup investment for startups in the HR, recruitment and employment categories totaled around $2.3 billion, per Crunchbase data. That puts funding on track for a year-over-year gain, even as investment remains at a fraction of the levels hit during the market peak, as charted below. How it works Watching Findem’s platform in action provides better insight into just how it helps companies zero in on the specific talent for which they’re searching. Say a startup wants to hire a software engineer who has worked at a company from its early days until it raised a Series C funding round. But it also wants that engineer to have a GitHub profile that it can view. Or, say a company wants to hire competitive coders who have seen a successful exit, or a CFOs who drove a company from a negative operating margin to a positive one. Findem’s software will allow you to filter for all those desired attributes. The startup says it’s able to help companies recruit so specifically because its 3D data combines people and company data over time into a format suitable for AI analysis. It claims that the “continuously enhanced” 3D dataset is “exponentially larger and more factual” than traditional sources of candidate data, making it a powerful tool for deep insights and automated workflows. Using the combination of the data and AI, Findem creates 3D profiles, also dubbed “enriched” profiles, for every candidate it helps surface. The goal of the profiles is to provide “a detailed and factual view” of an individual’s “professional journey and impact,” So just where does all this data come from? Findem says it continuously leverages a language model to generate that 3D data from more than 100,000 sources that are chronologically gathered (from earliest to latest). Those sources include LinkedIn, GitHub, Doximity, WordPress, personal websites, the U.S. Census Bureau, company funding announcements and IPO details, business models, more than 300 million patents and publications, over 5 million open datasets and ML projects and over 200 million open source code repositories. It also pulls applicant profile information from applicant tracking systems such as Workday, BambooHR, Bullhorn, Greenhouse, Jobvite and Lever, among others. This comprehensive data pull is what helps set Findem apart, in Kolam’s view. Some other hiring tools rely on one-dimensional data from resumes or LinkedIn profiles, which, he argues, “give only a snapshot of someone’s career…without the context that reveals true potential.” Kolam contends that it takes “extensive manual effort” to verify and interpret the data. “Just looking at a resume on paper really doesn’t come close to telling the whole story of how really qualified a candidate could be, or if they can really fit the criteria that a particular employer is looking for,” Kolam maintains. Findem is primarily focused on North American customers who have users across the globe. It’s also expanding into Europe. The company has a second headquarters in Bangalore, India. Kolam declined to reveal Findem’s valuation, saying only that it was “a significant up round and more than 2x” compared to its valuation when it raised a $17-plus million Series B extension in December 2023. Shawn O’Neill, managing partner at SLW, told Crunchbase News via email that his firm first got to know Kolam before Findem raised its Series B and then “tracked the company’s trajectory for some time.” ‘’What drew us to Findem wasn’t just the technology, it was the traction,” he said. The team has achieved strong commercial momentum while tackling one of the most persistent challenges in HR — connecting data, insight and human potential in a way that actually drives business outcomes.” But the technology didn’t hurt. In O’Neill’s view, Findem’s main differentiator is its “data advantage…in a market where most companies are simply wrapping LLMs.” “The depth and breadth of their 3D profiles and web-scale dataset are unlike anything else in the market,” he said. “The UX is excellent, but the magic is really in how the platform leverages that data — it makes finding and understanding people effortless. We use it ourselves and see the power firsthand.” Related Crunchbase lists and queries: Related reading: Illustration: Dom Guzman
What The Second Wave Of Layoffs Means For Workers And Startups
By Pavel Shynkarenko After the 2024-25 job cuts at Google, Amazon and other tech companies, the second wave of tech layoffs is rewriting the startup labor market. Skilled professionals are suddenly available, creating both opportunity and pressure for founders and workers alike. Startups now compete for talent that once seemed untouchable, while employees face longer job hunts and rethink how and where they work. Higher expectations, more side gigsPavel Shynkarenko With talent flooding the market, candidates are demanding more flexibility and clearer growth paths, even as many accept contract work or lower pay to stay employed. The typical job search now stretches six to seven months, even longer for those needing visas or relocation. That uncertainty has fueled a surge in freelancing and side projects. Bankrate reports that 36% of American adults now have a side gig, with more than half of them having started in the past two years. While many professionals didn’t plan to freelance, they turned to it because they had no other choice. For some, it has proved liberating, with confidence and job satisfaction rising compared with corporate roles, according to our internal data. Despite all the buzz in the media and even on Reddit, overemployment — the trend of holding two jobs — remains a niche phenomenon, affecting roughly 5% of workers, according to the Federal Reserve Bank of St. Louis. The more common pattern is a mix of contract work and short-term projects, which gives startups a chance to hire A-level talent for fractional roles they couldn’t have afforded before. Smaller, sharper teams Payroll is every startup’s biggest cost, and founders are trimming teams while raising output per employee. The examples are striking. Midjourney reports about $200 million in ARR with a staff of only 11. Cursor has reached roughly $100 million with 15-20 people. Data from Carta shows that the average seed-stage team in the consumer and fintech sectors has declined by nearly half since 2022. This lean approach is spreading beyond early-stage ventures. Around 90% of tech executives say they are open to hiring freelancers during peak workloads; more than 28% already integrate them into daily operations. As this makes clear, smaller core teams, supplemented by trusted project-based workers, can move faster and spend less. Opportunity on both sides For workers, the takeaway is that startups may now be the safer bet. Mid-sized firms that once promised stability are cutting jobs, while startups are candid about their risks and can reward performance with equity or future roles. A short contract can become a long-term stake. On the other hand, for founders, today’s market is a chance to recruit top engineers, designers and operators at terms that were impossible two years ago. It also demands a new mindset involving compensation flexibility, project-based roles and hiring processes built for speed. All in all, the second wave of layoffs has changed expectations and shifted supply and demand in the job market. Workers are blending traditional jobs with side gigs, and startups are proving that small, focused teams can out-execute much larger competitors. On both sides, adaptability is now the ultimate advantage; companies that remain nimble will win. Pavel Shynkarenko, founder and CEO of Mellow, is an entrepreneur with more than 20 years of experience, and a freelance economy pioneer who aims to transform how companies engage with contractors. In 2014, Shynkarenko launched his first HR tech company, Solar Staff, a fintech payroll company for freelancers, which showed $10 million-plus in revenue for 2022 and 2023. In early 2024, responding to the growing demand for specialized solutions for long-term interaction with contractors, Solar Staff, as a global company, pivoted to Mellow ($1 million MRR). Related reading: Illustration: Dom Guzman
A Record Share Of Startup Funding Is Going To $100M+ Rounds
The percentage of U.S. startup funding going to rounds of $100 million or more reached an all-time high in 2025. It’s a development that should surprise no one who has been following the rise of AI megarounds. An estimated 70% of all U.S. startup funding 1 this year went to jumbo-sized financings of $100 million and up, per Crunchbase data. That equates to around $157 billion spread across more than 300 reported rounds. For a sense of how that compares to prior years, we took a look at the share of investment to these big rounds over the past eight years. How 2025 compares to the last peak Notably, this year’s tally is not the highest dollar sum on record. That title goes to 2021, the peak of the last bull market. Four years ago, a red-hot IPO market, soaring tech stock prices, and startup investors’ ample appetite for writing big checks helped send funding totals to stratospheric levels. While much of that went to prominent unicorns, early stage dealmaking was also way up. This year, by contrast, a few big names are taking a much larger share of the funding pie. The largest deal — OpenAI’s unprecedented $40 billion SoftBank-backed financing — alone accounts for roughly a quarter of all funding to $100 million+ megarounds. Investment is also, of course, much more heavily concentrated around artificial intelligence. More than two-thirds of megaround investment this year went to companies in AI-related categories, per Crunchbase data. The global state of megarounds Globally, the megaround picture doesn’t look dramatically different. For 2025, around 60% of all startup funding went to financings of $100 million or more, per Crunchbase data. That puts this year roughly on par with the 2021 market peak for funding share, as charted below. Evolution of an asset class So will this increasing capital concentration last? Every time we see a new trend emerge in venture funding, the question arises: Is this a cyclical blip or simply the new normal? This time around, a solid case could be made both ways for the rise in funding share going to big rounds. On the “blip” side, it does look like the rise of Generative AI behemoths is a phenomenon very specific to this cycle. Yet concentration of capital among a smaller collection of megarounds isn’t only a Gen AI thing. Investors are also scaling up in the age old pursuit of having the most likely companies to succeed in their portfolios. They’re willing to write bigger checks at higher valuations for the privilege of getting into a competitive deal. Related Crunchbase query: Related reading: Illustration: Dom Guzman
Wearables Startups Are Having A Moment
Generally speaking, if you’re wearing a technology on your body, you have to really love it or find it deeply useful or even essential. That’s a high bar, which helps explain why wearables have long been a fairly niche area for startup investment. Per Crunchbase data, the category reliably attracts less than 1% of all venture funding in a given year. This year, however, the space is looking comparatively perky. Largely that’s due to a single company: Oura, maker of a smart ring that collects data on dozens of personal health and wellness metrics. Earlier this month, the 12-year-old Finnish company announced that it closed on more than $900 million in a Fidelity-led financing at an impressive $11 billion valuation. The raise comes in the wake of sharp growth, with Oura expecting to reach $1 billion in sales this year. Beyond Oura But Oura isn’t the only wearables-related company pulling in significant venture investment recently. Using Crunchbase data, we put together a sample list of 18 companies funded in roughly the past year innovating in this area. Funded startups have a broad array of chosen use cases as well. While medical and health monitoring remains the most prevalent application, we’re also seeing the AI boom trickling into more consumer-focused offerings outside the health care realm. Smart lenses, glasses and cow collars In this arena, one of the largest and most recent rounds went to Xpanceo, a startup developing smart contact lenses that incorporate a microdisplay and external sensors to provide wearers with useful information based on their focus. The 4-year-old, Dubai-based company raised $250 million this summer at a $1.35 billion valuation. Nothing, a maker of Android smartphones, earbuds and watches, is another wearables developer, albeit not a pure-play in the space, with a big round of late. The startup closed on a $200 million Series C last month to further its vision of an “AI-native platform in which hardware and software converge into a single intelligent system.” The company cited smart glasses as one of the devices in which it envisions incorporating its operating system. And while wearables is usually understood to be a category for humans, we did mix it up a bit in our list by including Halter, a maker of a platform that combines smart collars and virtual fencing for ranchers to manage their cattle. It closed on $100 million in Series D funding this summer at a $1 billion valuation. Health and medical conditions Wearables for monitoring medical conditions are also still drawing investors’ attention with two established names each picking up $100 million financings this year. San Diego-based Biolinq, which has developed a wearable biosensor that measures glucose levels continuously just beneath the skin’s surface, secured its $100 million round in March. A month earlier, VitalConnect, a San Jose, California-based maker of wearable, connected patches for remote monitoring of cardiac health, secured a round of the same size, led by Ally Bridge Group. We’re also still seeing some varied startup activity around health-monitoring wearables. An offbeat one that caught our eye was Epicore Biosystems, which develops a wearable that tracks biomarkers in sweat to measure hydration, nutrition, stress and other physiological data. Deep-pocketed competition Being in an offbeat niche might provide considerable advantages to a startup. That’s because wearables startups play in a space that also happens to draw the largest technology companies in the world. From Apple watches to Google Fitbit devices to Meta’s AI glasses, giants with valuations in the trillions are finding appeal in the space. One of Apple’s newest offerings — AirPods with live translation — shows the technological sophistication of wearables is only on the rise. Even so, we’re betting startups will continue to find ways to innovate in ways that differentiate them from the tech giants. In particular, they have the advantage of marketing to a small initial early-adopter crowd and tweaking a product until it’s ripe for a much wider audience. Related Crunchbase query: Illustration: Dom Guzman
The Week’s 10 Biggest Funding Rounds: Biotech Dominates A Busy Week
Want to keep track of the largest startup funding deals in 2025 with our curated list of $100 million-plus venture deals to U.S.-based companies? Check out The Crunchbase Megadeals Board. This is a weekly feature that runs down the week’s top 10 announced funding rounds in the U.S. Check out last week’s biggest funding rounds here. This week offered a change of pace on the giant round front as it was a biotech company, rather than an AI startup, at the top of the ranks. Kailera Therapeutics, a developer of obesity therapeutics, led with a $600 million Series B. Other sizable financings went to companies offering fractional aircraft ownership, fintech services and hair loss treatments. 1. Kailera Therapeutics, $600M, biotech: Waltham, Massachusetts-based Kailera Therapeutics, which focuses on treatments for obesity, announced a $600 million Series B financing led by Bain Capital Private Equity. The company plans to initiate Phase 3 trials by year end for an injectable therapy to treat obesity. 2. Bond, $350M, aviation: Bond, a company offering fractional ownership for its fleet of private aircraft, raised $350 million in debt and equity funding. The financing consisted of $320 million in debt and equity from funds and accounts managed by Kohlberg Kravis Roberts along with $30 million in equity investment from founding partners. 3. (tied) Deel, $300M, payroll and compliance: HR and payroll platform Deel picked up $300 million in fresh funding. Ribbit Capital, Andreessen Horowitz, and Coatue led the financing. The round set a $17.3 billion valuation for the 6-year-old company, which said it recently surpassed $1 billion in annual recurring revenue. 3. (tied) Vantaca, $300M, business software: Vantaca, a provider of software for homeowners associations and management companies, said it secured a growth investment of more than $300 million led by Cove Hill Partners. The financing set a $1.25 billion valuation for the Wilmington, North Carolina-based company. 5. Kardigan, $254M, biopharma: Kardigan, a startup focused on developing cardiovascular drugs, closed on $254 million in a Series B backed by T. Rowe Price, Fidelity, Sequoia Heritage and Arch Venture Partners. The round brings total funding to date to more than $554 million, per Crunchbase data. 6. Upgrade, $165M, fintech: Upgrade, a provider of consumer loans, credit cards and online accounts, pulled in $165 million in a Series G financing led by Neuberger Berman. Launched in 2017, San Francisco-based Upgrade has raised more than $750 million in venture funding to date, per Crunchbase data. 7. VeraDermics, $150M, dermatology, hair regrowth: New Haven, Connecticut-based VeraDermics, a startup developing therapeutics for dermatologic conditions, raised $150 million in a Series C round led by SR One. Funding will go toward ongoing trials for an oral therapeutic designed for hair regrowth. 8. Pelage Pharmaceuticals, $120M, hair loss treatment: Pelage Pharmaceuticals closed a $120 million Series B round co-led by Arch Venture Partners and Google’s GV. The Los Angeles startup is focused on a topical small molecule designed to reactivate dormant hair follicle stem cells for men and women experiencing hair loss. 9. Peptilogics, $78M, therapeutics: Pittsburgh-based Peptilogics, a developer of surgical therapeutics to treat and prevent serious medical device infections, raised $78 million in a Series B2 financing. Presight Capital, Thiel Bio and Founders Fund led the round. 10. MD Integrations, $77M, telehealth: Telehealth platform MD Integrations landed $77 million in growth financing from Updata Partners and Denali Growth Partners. The New York-based company works with digital health brands to provide access to a network of doctors for patient consultations. Methodology We tracked the largest announced rounds in the Crunchbase database that were raised by U.S.-based companies for the period of Oct. 11-17. Although most announced rounds are represented in the database, there could be a small time lag as some rounds are reported late in the week. Illustration: Dom Guzman
New To Silicon Valley? What I Wish I’d Known As An Immigrant Founder Back In 2017
By Vasyl Dub Despite President Donald Trump recently imposing a $100,000 application fee on new H-1B visas, San Francisco remains a magnet for international AI founders keen to tap into the epicenter of innovation. I was one of those wide-eyed entrepreneurs back in 2017, when I first packed my bags and moved from my native Ukraine to SF to scale my startup, Animal ID. Unfortunately, I ended up returning home demoralized and depressed as my trip had led to so many rejections. However, I eventually realized that the problem wasn’t my tech — it was that I hadn’t understood the unspoken rules of Silicon Valley. After spending years trying to break into the Valley, things finally turned around for me. Now, as a startup mentor at Stanford University and Alchemist Accelerator, and founder of Raisable Founders Hub, I’ve made it my mission to help founders, especially immigrant entrepreneurs, avoid the unnecessary mistakes I made. My approach boils down to a few simple steps: shift your mindset, build a relevant network, validate your idea deeply, and then build your strategy. This is critical for founders navigating today’s funding frenzy. Here’s what I wish I’d known when I first set foot in Silicon Valley: Understand the principles by which the Valley livesVasyl Dub Silicon Valley runs on trust, and trust is something that needs to be earned. Therefore, it’s best to start building it long before you arrive: Do your research and connect online with people you’d like to meet up with. Make sure you have something to offer. The Valley rewards those who contribute first. Building a startup here is different from anywhere else due to extremely high costs, relentless competition and a generally much faster pace of doing things. All of this will test your adaptability — which is a key skill investors will be on the lookout for. The right mindset can’t be bought, but it can be developed by immersing yourself in the ecosystem and engaging with the right people. Surround yourself with like-minded people Silicon Valley is filled with people who will challenge everything you do from day one. The people you surround yourself with can either fuel your growth or drain your momentum. Don’t waste time chasing generic networking opportunities. Instead: The bottom line is: Focus on nurturing authentic connections that can flourish into long-term collaborations. Ask for advice first, then intros Many founders obsess over getting investor introductions. But an intro without the right preparation is a wasted opportunity. Instead of fixating on warm intros, focus on validating your ideas. Explain to everyone you meet how your solution solves a specific problem and why your team is the best to do it. Absorb their feedback and use it all as an opportunity to refine your pitch. Every discussion helps you understand how to frame your value proposition more effectively. Seek out great mentors. The best ones don’t give you answers — they help you ask better questions. Finally, not every interaction needs to lead to fundraising, the goal should be to build a sustainable company — so be open to any and all opportunities or connections that come your way. You never know, the next person you meet could become a future co-founder, adviser, customer or even a lifelong friend. Vasyl Dub is a startup mentor at Stanford University and Alchemist Accelerator, and founder at Raisable Founders Hub. Related reading: Illustration: Dom Guzman
Cybersecurity Startup Investors Pulled Back In Q3
After a lively first half of the year for cybersecurity startup funding, investors pulled back some in the third quarter. In total, investors put just over $3.3 billion globally into seed- through growth-stage rounds for cybersecurity-focused companies, per Crunchbase data. That’s about a third lower than the prior quarter, a robust period for dealmaking, but still about a third above year-ago levels. Deal counts also declined sequentially in Q3, but still exceeded year-ago totals. Megarounds of note As usual, much of the quarter’s fundraising tally came from a few big rounds. For Q3, the largest round went to Quantinuum, a quantum computing unicorn that isn’t a pure-play cybersecurity company but does cite encryption and data protection among the core use cases for its technology. The Broomfield, Colorado-based company, which was spun out of Honeywell, closed a $600 million Series B in August led by Nvidia’s venture arm. The next-largest financing was a $230 million Series C for Austin, Texas-based Ontic, a provider of intelligence tools for corporate security. In third place was San Francisco-based Vanta, an AI-enabled security and compliance platform that pulled in a $150 million Series D. For a broader listing, below we ranked 10 of the largest cybersecurity-related financings of the quarter. Exits The quarter also brought a couple good-sized startup exits of both the IPO and M&A variety. Netskope, a cloud-security provider, delivered on the IPO front, raising more than $900 million in a well-received September debut. Founded in 2012, the Santa Clara, California-based company previously raised $1.4 billion in early- through late-stage financing. As for acquisitions, the largest was Tokyo-based Mitsubishi Electric’s purchase of San Francisco-based Nozomi Networks, a 12-year-old company focused on protecting critical infrastructure from cyber threats, in a deal reportedly valued at around $1 billion. Ups and downs So are these still bullish times for cybersecurity investment? While investment to the space was down sequentially this quarter, the drop does not appear sufficiently dramatic or prolonged to draw broad conclusions. On public markets, major cybersecurity indexes continue to perform well, and, among newcomers, Netskope has held steady. So, that looks encouraging. On the M&A side, we’re also still waiting for a final conclusion of Google’s planned $32 billion acquisition of cybersecurity provider Wiz, announced in March. If the deal passes regulatory muster and closes, it would rank as the largest startup acquisition to date and mark another upbeat development for the security sector. For now, we’ll keep an eye out to see if there are any stronger headwinds portending a shift in direction for the space. Related Crunchbase list and query: Related reading: Illustration: Dom Guzman