Early-stage startups were largely unaffected by the market turmoil and dip in funding, a trend that hit technology companies the hardest in recent times. However, seed and Series A firms are now starting to "feel the chill," as evident by Pitchbook's latest report. Venture firms are being cautious with their investments, with Series A financing now falling to half of the previous deal sizes, currently averaging $10M. The drop in valuations is eating away at the founders' stake, forcing them to liquidate a larger stake in the market downturn to raise capital. More: - Michael Kim, a limited partner with Cendana Capital, notes, "Over the last two or three months, seed and Series A deal valuations have dropped significantly, and early-stage investors have gotten more selective, focusing on startups that can meet more substantial revenue targets than were required in the past."
- He further added that Series A deals are now averaging $10M at $50M valuations, as against $20M at $120 post-money valuation earlier.
- There is also an added pressure for Series A firms to show at least $1.5M to $2M in annual recurring revenue, up from the $1M bar set over the last three to four years.
- Firms unable to show the added revenue are now raising seed extension rounds rather than seeking Series A investments.
- Seed stage startups are facing similar challenges, with the exception of Web3 and crypto startups.
- Investors are optimistic about the crypto market's recovery after witnessing a similar trend in the industry in recent years.
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Multiverse, an edtech startup co-founded by Euan Blair, cemented its unicorn status following a $1.7B (£1.4B) post-money valuation at its latest fundraising. Euan is the eldest son of former U.K. Prime Minister Sir Tony Blair. StepStone Group, Lightspeed Venture Partners, and General Catalyst co-led the $220M Series D funding round. Multiverse intends to use the incoming proceeds to fuel expansion in the U.S. and expand its learning program service offerings. More: - The company, which was founded in 2016, now connects 500 global organizations with career transitioners by offering over 8,000 apprenticeships across coding, data analysis, and digital marketing roles.
- Multiverse last raised $130M Series C funding eight months ago at an $875M valuation.
- The firm's valuation has more than doubled since then, with the current investment nudging its total funding secured to date to over $400M.
- Existing investors Audacious Ventures, BOND, D1 Capital Partners, GV, and Index Ventures participated in the funding.
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Branch closed its Series C funding with $147M in financing. The round, which values the firm at $1.05B post-money, brings the company's total funds raised to $229.5M. Weatherford Capital led the fundraiser for the home and auto insurance company. More: - The funding round was also backed by Acrew, American Family Ventures, Anthemis, Gaingels, Greycroft, HSCM Ventures, Narya, SignalFire, and Tower IV.
- The Ohio-based firm intends to use the fresh funding to expand its business reach across the U.S., up from its current coverage of 28 states.
- Branch reported a 1,300% increase in annualized written premiums since raising $50M from an Anthemis Group-led Series B funding round last June.
- In the same period, the company's headcount increased from 75 to 400.
- The company offers insurance at the point of sale via its partners, which include Homepoint, OpenRoad Lending, and SimpliSafe, and often undercuts its competitors on price.
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Ledger, a crypto-security platform, launched a $110M venture capital fund in partnership with venture firm Cathay Innovation. The fund will back early-stage startups in Web3 and blockchain space working on DeFi, NFT, DAO, security, infrastructure, and digital ownership. Bpifrance, a French public investment bank, has supported the fund. More: - The fund will be led by Cathay Innovation co-founder Denis Barrier along with Pascal Gauthier and Michael Luozado from Ledger.
- The fund, named Ledger Cathay Capital, seeks to make around 20 to 25 investments in seed to Series A stage firms.
- Individual check sizes will range between $550,000 and $4.3M.
- Ledger, most known for its crypto hardware wallets, raked in $380M Series C funding at a $1.5B valuation in June last year.
- Cathay Innovation participated in the funding.
- Cathay Innovation, affiliated with Cathay Capital, has over $1.5B in assets under management.
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Codat, a universal API platform for small businesses, secured $100M in Series C financing. The funding round was led by JP Morgan Growth Equity Partners. The London-headquartered firm intends to use the funding to further develop its product, which is used by small businesses to build integrated products for their customers. More: - Canapi Ventures, Shopify, Plaid, Index Ventures, and PayPal Ventures participated in the funding.
- Tiger Global led its previous Series B fundraise of $46.1M last June.
- To date, the firm has secured $176.8M in total funding.
- Codat’s 200+ customer base includes fintech organizations such as Brex, Jeeves, Pipe, and Clover.
- The firm reported doubling its revenue YoY since its founding in 2017 and is on track to rake in $30M in annual revenue by the end of this year.
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Immuta, a Boston, Mass.-based data access and security firm, received a $100M capital infusion led by NightDragon. The Series E investment valued the firm at $1B. The company provides automated data discovery, classification, monitoring, access control, and masking tool for enterprises. More: - With the new investment, the company’s fund secured to date totals $267M.
- New investor Snowflake Ventures participated in the funding round, joined by existing backers Dell Technologies Capital, DFJ Growth, IAG, Intel Capital, March Capital, StepStone, Ten Eleven Ventures, and Wipro Ventures.
- Incoming funds will help the firm advance product development, expand its go-to-market teams, and support future acquisitions and partnerships.
- Immuta doubled its customer base last year, adding notable clients such as Roche, Mercedes-Benz Group, IAG, and the U.S. Army.
- It reported a 100% growth in its commercial annual recurring revenue, boosted by its expansion into the EMEA and APJ regions.
- The company plans to double its workforce headcount over the next 18 months.
- It currently has over 250 employees.
Zoom out: - The data governance sector is forecasted to grow to $16B by 2026.
- Competitors in the access and compliance management domain include Satori and Privitar, which last raised $20M Series A and $7M Series C respectively.
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- Sequoia China led a $210M Series A funding into Singapore-based AI and internet technology company Envision Digital. Singapore’s sovereign wealth fund GIC supported the funding. The company’s platform helps organizations reduce their carbon footprint and manage renewable energy production.
- CareBridge has become a unicorn with its latest Oak HC/FT-led $140M funding. The Nashville, Tenn.-based company supports health plans and states in providing home care and community-based healthcare services.
- Philadelphia-based clinical-stage biopharmaceutical company Mineralys Therapeutics Inc. secured $118M in Series B funding to develop a treatment for hypertension. RA Capital Management and Andera Partners led the funding round with participation from RTW Investments, Rock Springs Capital, SR One Capital Management, and others.
- London, U.K.-based AI-powered open banking platform provider Bud Financial received an $80M Series B capital infusion led by Bellis Phantom Holdco ltd, an indirect affiliate of TDR Capital, along with SEI investments, Outward VC, and others.
- Code Biotherapeutics secured $75M in Series A funding led by Northpond Ventures with participation from Amgen Ventures, Hatteras Venture Partners, UCB Ventures, and New Enterprise Associates, amongst others. The biotech company is working on non-viral delivery of genetic medicines.
- Insight Partners led a $42M Series A funding into LibLab, a firm providing autogenerated software development kits for APIs. Other funding round participants include Zeev Ventures, Stepstone, Sheva, and Rainfall.
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 |  | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | | | 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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