 As big money managers flee tech markets, VCs are pulling back and calling for the end of a cycle. Mike Volpi of Index Ventures told the WSJ that companies should not expect the current situation to be a mere bump but rather a "proper correction." More: - From the end of last year through the first quarter, valuations for one cohort of high-growth startups fell 42% on average, according to data provided by Carta Inc.
- Thrasio, the Amazon aggregator with $3.4B in total raised to date, was unable to raise a further round, which it expected to clinch at a $10B+ valuation.
- It responded by cutting close to 20% of its workforce, announcing a new CEO, and pumping the brakes on acquisitions and engineering projects, according to sources.
- Most current founders, and for that matter, many VCs, have never seen a proper downturn.
- Due to a decade-long bull run that saw $1.3B invested into high-growth, loss-making companies, certain types of work were established.
- Investors and founders note that the easy-money streak led to poorly thought-out mergers, high cash burn, and poor work quality.
- Many will struggle to transition to an environment where each raised dollar needs to be considered their last.
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Pathlock, an access governance solution provider, has raised $200M while it prepares to merge with two other companies. The funding was led by Vertica Capital Partners, while the two companies are Appsian and Security Weaver. More: - The move could provide the company with the leading position in the access governance space by unifying app security features with automated data control.
- Appsian provides ERP data security, while Security Weaver specializes in offering governance, risk, and compliance management tools for SAP.
The wider lens: - The enterprise governance, risk, and compliance market is expected to grow from $40.84B in 2021 at a compound annual rate of 14.0% from 2022 to 2030.
- Pathlock estimates the total market at a substantially higher $100B per year, with companies paying an average of $2M annually.
- Two of Pathlock’s main competitors in the field include Saviynt, which offers an enterprise identity cloud, and Sailpoint, which provides lifecycle and compliance management solutions.
- Saviynt has raised a total of $300M since 2021, while Sailpoint announced hitting $439M in revenue last year.
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 A Pew Research report finds a declining share of Americans in favor of regulating major tech companies. Still, a strong plurality of 44% considers it necessary to regulate tech giants more than they are at the current moment. More: - In April 2021, 56% of Americans considered themselves pro-regulation, indicating a 12-point drop in a year.
- At the same time, the percentage reporting that they want less regulation has doubled from 9% to around 20% during the same time period.
- A large majority (77%) believe it is at least somewhat likely that social media sites censor political viewpoints they find objectionable.
- That has increased from 72% in 2018 and sees Republican-leaning voters more inclined to answer yes (85-95%) than Democratic-leaning respondents (61-70%).
- That finding tracks with the 44% plurality of Americans who say that tech companies tend to support the views of liberals over conservatives.
- Predictably, more Republicans (71%) support that statement, compared with about a quarter of Democrats (26%).
- Around 37% of respondents reported believing that tech companies support the views of liberals and conservatives equally, a share which has declined from 43% in 2018.
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Cornami, a fabless semiconductor company, raised $68M Series C led by Softbank Vision Fund 2. The round was also supported by Impact Venture Capital, Octave Ventures, and several existing investors. More: - The California-based company was founded in 2012 and has raised $151M to date. It did not disclose a valuation.
- Its TruStream Computational Fabric architecture claims to deliver real-time computing power for critical and complex applications with an emphasis on enabling fully homomorphic encryption (FME), which is essential to combat post-quantum threats.
- First discussed in 2009, FME is based on the idea that data need not be encrypted to be accessed, making it more resilient to traditional attacks.
- Still, it has yet to be widely adopted because of the massive amounts of computing power it requires.
The wider lens: - Researchers pegged the global market for quantum cryptography at $128.9M in 2022, but they anticipate that it will more than double to reach a total value of $291.9M by 2026.
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 Today’s Funding 💸 AI/ML - Credo AI (San Francisco, Calif.), responsible AI governance platform: $12.8M A led by Sands Capital.
Biotech/Health - Kriya Therapeutics (Redwood City, Calif.), gene therapy company advancing novel technologies and therapeutics: $270M C led by Patient Square Capital, participation from Bluebird Ventures, CAM Capital, Dexcel Pharma, Foresite Capital, et al.
- Vivasure Medial (Galway, Ireland), fully absorbable technology for percutaneous vessel closure: $23M D led by Fountain Healthcare Partners, Orchestra BioMed, EQT Life Sciences team, Panakès Partners, Evonik Venture Capital.
- CarePoint (Nigeria), healthcare for African countries: $10M A from Delle, Breyer Capital, Beyond Capital Ventures, et al.
Consumer - buymie (Dublin, Ireland), basket same-day grocery delivery platform: ...
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 |  | Inside VC's writer/curator Stephen currently lives in Berlin and is pursuing a Master's degree in philosophy. He otherwise spends his time trying his hand at recipes from India and Southeast Asia, escaping it all at the kickboxing gym, and offending aural sensibilities with his band. |  | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 Ford. | |
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