VCA#005: Venture Capital Weekly Digest 📬
Weekly Recap of where the Smart Money is going - Away from noise & towards deep, enduring Value
🚀 This Week’s Biggest Funding Rounds
Legora raised $80M in Series B funding to expand its AI-driven legal tech platform. With a focus on transforming contract analysis and litigation risk prediction, the startup is valued at $675M post-money. The round was led by General Catalyst and Iconiq Growth.
Awardco secured $165M to scale its employee recognition and engagement platform. The Utah-based company helps enterprises boost retention through reward-based systems integrated into workflow tools. The funding will fuel product development and global expansion.
Airwallex raised $300M to further accelerate its international fintech operations. The company offers multi-currency payment infrastructure for businesses and will use the new capital to strengthen compliance capabilities and launch new financial products globally.
GDI, a U.S.-based battery materials innovator, secured $11.5M to scale its proprietary silicon anode technology for electric vehicles. This follow-on funding from Helios Climate Ventures and InnoEnergy will support its commercial rollout and manufacturing capacity.
SparkCharge, a provider of mobile EV charging solutions, raised $15.5M in a Series A-1 round. The company offers on-demand charging services for electric vehicle owners, backed by Marcy Venture Partners, Elemental Impact, and Cleveland Avenue.
💰 New Venture Funds
Meridian Health Ventures, formerly KHP Ventures, has launched a €44.7M (approximately $48M) transatlantic fund to support HealthTech startups aiming to scale within the UK's NHS and expand into the US healthcare market. This initiative seeks to bridge the gap between UK and US healthcare systems, fostering innovation and growth in the sector.
VanEck announced the upcoming launch of the VanEck PurposeBuilt Fund, a private digital assets fund focusing on businesses building on the Avalanche blockchain. The fund will invest in liquid tokens and venture-backed projects, spanning industries such as gaming, financial services, payments, and AI. The launch is expected in June 2025.
Keen Venture Partners, an Amsterdam-based VC firm, secured a €40M commitment from the European Investment Fund (EIF) for its European Defence and Security Tech Fund. The fund aims to invest in startups developing technologies critical to Europe's defense and security sectors.
Munich Re Ventures closed a $125M fund from HSB, focusing on investments in Built World startups. The fund targets companies enhancing efficiency and resilience in property, industry, and related supply chains, as well as those advancing cybersecurity and technologies contributing to a sustainable future.
Lunar Ventures, a Berlin-based VC firm, announced its €50M Fund II to invest in pre-seed DeepTech startups. The fund focuses on technical founders solving essential problems, continuing the firm's commitment to early-stage DeepTech investments.
💼 LP Activities and Fundraising
Invictus Growth Partners closed its second flagship fund and associated co-investment vehicles, amassing a total of $574 million. The fund targets lower middle-market enterprise software companies, particularly in cybersecurity and financial sectors. Notable LPs include the New York State Common Retirement Fund and the New Mexico State Investment Council.
Crestline Investors finalized the closure of its third Net Asset Value (NAV) financing fund, securing $1.7 billion in commitments. This fund is designed to provide liquidity solutions to private equity firms, reflecting a growing interest among LPs in alternative financing strategies.
Regimen Equity Partners, a Canadian private equity firm, successfully closed a $24 million fundraising round, significantly surpassing its original $10 million target. The oversubscription reflects strong investor interest in Regimen’s long-hold strategy and innovative investment structure, bringing its assets under management to over $200 million.
🔄 M&A and Strategic Exits
OpenAI acquires io for $6.5B
OpenAI has acquired io, a hardware startup co-founded by former Apple design chief Jony Ive, in a $6.5 billion all-stock deal. The acquisition aims to integrate io's design expertise into OpenAI's product development, focusing on creating AI-powered consumer devices. Ive and his team will join OpenAI to lead design initiatives, marking a significant step in OpenAI's expansion into hardware.
AT&T to acquire Lumen’s consumer fiber business for $5.75B
AT&T has announced plans to acquire Lumen Technologies' consumer fiber business for $5.75 billion. The deal is part of AT&T's strategy to expand its fiber footprint and enhance broadband services across the United States.
Honeywell acquires Johnson Matthey’s battery materials business for £1.8B
Honeywell has agreed to acquire Johnson Matthey’s battery materials business for £1.8 billion. The acquisition is expected to strengthen Honeywell's position in the electric vehicle battery supply chain and support its sustainability goals.
Sanofi acquires Vigil Neuroscience for $600M
Sanofi has announced the acquisition of Vigil Neuroscience, a biotech company specializing in treatments for neurodegenerative diseases, for $600 million. The acquisition aims to bolster Sanofi's pipeline in neuroscience and expand its research capabilities.
📈 IPO Watch & Public Market Moves
Hinge Health debuted on the NYSE under the ticker "HNGE," raising $437 million by offering shares at $32 each. The stock opened at $39.25 and closed at $37.56, marking a strong market debut. Hinge Health reported a net income of $17.1 million and a 50% year-over-year revenue increase to $123.8 million in Q1 2025.
MNTN, an adtech platform specializing in performance TV marketing, went public on the NYSE, raising $187.2 million by selling 11.7 million shares at $16 each. The stock surged 31.25% on its debut, closing at $21, and achieving a valuation of $1.62 billion.
🌍 Regional Highlights
🇺🇸 United States
U.S. venture activity this week underscores the deepening bifurcation between hype and substance. The AI gold rush continues to drive capital concentration in Silicon Valley, but we’re also seeing a correction in early-stage enthusiasm. Nearly half of all seed deals are now bridge rounds, a red flag that new capital is getting more selective. For founders, this is a wake-up call: momentum alone won’t cut it. Metrics, real revenue, and hard tech validation are becoming prerequisites to unlock funding. The U.S. is clearly favoring scale and defensibility over vision alone.
🇪🇺 Europe
Europe’s venture climate is leaning further into long-term strategic sectors. Deeptech, AI, and dual-use technologies are commanding LP attention, especially as Paris eclipses London in some performance metrics. This week’s data suggests a continued drive toward autonomy. Not just in energy or defense, but in the entire startup value chain. European VCs are aligning more closely with national priorities, and while this makes capital scarcer for lifestyle or DTC plays, it creates deeper pools for startups solving real infrastructure problems.
🇸🇦 MENA
MENA is entering its infrastructure decade. The mega-commitments announced this week, especially by Saudi Arabia and the UAE, signal a patient-capital approach to ecosystem building. While flashy fintech and SaaS rounds still happen, the real play is long-term capability. Think: AI data centers, biotech manufacturing, and green industrial logistics. Strategic autonomy is the new narrative, and sovereign-backed funds are now more focused on vertical integration than quick venture multiples. The message is clear: build the system, not just the startup.
🇲🇽 LATAM
LATAM’s investment momentum is holding steady, but with a visible shift toward resilience and retention. The post-peak normalization continues, but it’s not just correction, it’s maturity. Climate tech, logistics, and regional health platforms are quietly pulling capital from VCs who once chased blitzscale consumer apps. Local LPs and family offices are stepping in where international money is cautious, suggesting a growing self-sufficiency in capital markets. This internal reinforcement could define LATAM’s next chapter: slower, smarter, and more sovereign.
📊 Recent Publications & Reports
Bain & Company – Global Venture Capital Outlook 2025
A comprehensive analysis of global VC trends, identifying the key shifts shaping investment priorities and sectoral focus going forward. Read here
AlleyWatch – April 2025 US VC Funding Snapshot
U.S. startup funding hit $12.69B across 365 companies in April — up 54.85% YoY, but down 76.26% from March’s boom. Read here
🎙️ Voices in Venture
Insights from Industry Leaders
TechCrunch Interview: Elizabeth Weil on the Power of Networks in Venture
Elizabeth Weil discusses why founder relationships are now more predictive than metrics and how Scribble Ventures is thriving in a trust-driven market. Read here20VC Roundtable: Rory Stirling & Jason Yeh on What Founders Get Wrong in 2025
Rory and Jason break down today’s venture climate and whether brand, storytelling, or traction matters more in early fundraising. Listen here20VC Deep Dive: Luke Harries of Addition on High-Conviction Early Investing
Luke reveals how Addition wins deals by moving fast, what it means to "out-convict" the market, and advice for early-stage founders. Listen hereCooley Q&A: Jeff Crowe on Adapting in a Cooling VC Market
Jeff Crowe of Norwest shares insights on why capital deployment is slowing, how founders should pitch in this climate, and what’s next for venture. Read here
✍️ Our Take
If last year was about chasing momentum, this week makes one thing clear: 2025 is about building things that actually matter.
The VC landscape is shifting! Not in headlines, but in conviction. Mega-deals in consumer buzz are being replaced by disciplined bets in legal AI, employee systems, EV charging, cybersecurity, and climate hardware. LPs are backing funds targeting deeptech, defense, and healthcare infrastructure, sectors that may not trend on X, but will define global resilience over the next decade. Strategic capital is back in control and it’s prioritizing sectors with complexity, staying power, and mission-critical relevance.
The future of venture is no longer about velocity.
It’s about direction. And this week, that direction is unmistakably long-term.
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