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| Hey Insiders, Today we are taking a look at why Databricks acquired MosaicML, why alternative meat startups are shutting down, and why Prosus and Peak XV Partners resigned from Byju's board. Scroll down for some quick hits, then let us know what other content you'd like to see in future issues. Karan
p/karan-chafekar | |
| 1 | | San Francisco-based data storage and management startup Databricks acquired generative AI startup MosaicML for $1.3B, per WSJ. With the acquisition, Databricks will integrate MosaicML's language model platform with its own AI-powered data management technology to empower customers to build their low-cost language model using proprietary data. More: - MosaicML, also headquartered in San Francisco, has raised $64M to date from investors.
- It last raised $34M from DCVC, AME Cloud Ventures, Frontline, Atlas, Playground Global, and Samsung Next, per Pitchbook.
- MosaicML's last known valuation was $222M.
- Meanwhile, Databricks has raised $3.5B from investors to date.
- It was last valued at $38B in August 2021 when it raised a $1.6B funding round from Counterpoint Global, Andreessen Horowitz, UC Investments, and ClearBridge Investments.
Zoom out: - Pitchbook predicts spending in the global generative AI market will grow by 32% CAGR to $98.1B by 2026.
- By this year's end, spending is poised to touch $42.6B.
- VCs deployed $12.7B into generative AI startups in the first five months of 2023, two and a half times more than $4.8B invested in all of 2022.
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What the numbers say: Alternative meat startups have been able to secure nearly $1B in VC funding in the first five months of this year, per Bloomberg. At this rate, total deployment at this year's end is unlikely to touch last year's tally of $4B, let alone the peak of nearly $7B in 2021. What happened: The VC funding pullback has severely impacted the sector, causing many startups to shut down operations. Investors poured money into the sector following the initial success of Beyond Meat. However, sales have failed to match expectations due to the high prices of products and odd tastes. As a result, many early-stage companies in the sector have recently closed, including Merit Foods, Unreal Food, The Meatless Farm, and Hey Maet. Meanwhile, Beyond Meat's stock price has fallen 90% from its peak. 
Where to see the impact: Despite the turmoil, some investors remain optimistic about the sector's potential. Agricultural giant Archer-Daniels-Midland Co. expects the alternative protein market to reach $100M in sales by 2030. Euromonitor International predicts a 10% growth in global sales of meat and seafood substitutes this year. | | | |
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Representatives of Prosus, Peak XV Partners, and Chan Zuckerberg initiative have stepped down from Indian edtech startup Byju's parent firm Think & Learn Private Limited's board of directors. The news comes a day after Deloitte resigned its auditors after the edtech firm failed to submit financial statements for the year ending March 2022. More: - Peak XV, formerly known as Sequoia India, confirmed that partner GV Ravishankar stepped down from Byju's board.
- Prosus and Chan Zuckerberg also confirmed the departures of representatives Russell Dreisenstock and Vivian Wu, respectively.
- Days before the board members resigned, India's corporate affairs ministry ordered an investigation into Byju's citing "various corporate governance lapses."
- Earlier this April, India's anti-money laundering agency searched three offices of the startup and reportedly found incriminating documents and data.
- The Bangalore-based startup is also involved in a tussle with lenders over a $1.2B loan and skipped a $40M payment earlier this month.
- In March, BlackRock slashed the valuation of Byju's by two-thirds to $8.4B, down from its peak of $22B.
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| 4 | | SoftBank-backed messaging app startup IRL is shutting down after "a majority of shareholders concluded that the company's going forward prospects are unsustainable," spokesperson Elliot Sloane told the Information. The news comes two months after the board suspended founder and CEO Abraham Shafi for alleged misconduct and appointed Scott Kauffman as acting CEO. More: - Shafi was asked to step down after former employee Nicholas Grant accused the company of using bots to inflate user numbers.
- Shafi had repeatedly claimed that the platform had 20 million active monthly users.
- The board uncovered today through an investigation that 95% of the claimed users were "automated or from bots."
- The startup was valued at $1.2B at its peak in 2021.
- IRL had raised $200M from investors, including SoftBank and Founders Fund.
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| 5 | | Women-led global healthcare investment firm Vertex Ventures HC announced its third fund of $200M. The firm aims to back early-stage life sciences and medical technology startups with the new fund. More: - VVHC founding team member Lori Hu will lead the fund along with Christine Brennan, who joined the firm in 2022 after stints at MRL Ventures Fund and Novartis Venture Fund.
- The firm has over $550M in assets under management.
- Since its founding in 2014, the firm has backed 25 therapeutic and healthcare technology startups, 20 of which are in clinical stages.
- Notable startups in its portfolio include Boundless Bio, Elevate Bio, Matchpoint Therapeutics,
- Three products developed by portfolio companies have received approval from the Food and Drug Administration (FDA).
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| 6 | | Today's Funding: Biotech - AltPep, a startup developing treatment solutions for amyloid diseases, secured $52.9M in Series B funding led by Senator Investment Group, with participation from Eli Lilly, Section 32, Matrix Capital Management Company, and others.
Fintech - British fintech startup TreasurySpring nabbed $29M in Series B funding led by Balderton Capital. Mubadala Capital participated in the funding round along with existing backers ETFS Capital, MMC Ventures, and Anthemis Group.
Health Tech - 24x7 doctor, private urgent care, and concierge service provider Sollis Health nabbed $15M Series A extension funding. The funding was provided by Torch Capital, Strand Equity, Arkitekt Ventures, and Read Capital.
Travel Tech - Travel tech startup Utu raised $33M in Series B funding led by SC Ventures. The firm also disclosed that it had acquired Singaporean fintech startup CardsPal.
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| 7 | | Quick Hits: - Kubernetes doesn't need to be complex. Join us for a conversation about how to increase developer productivity & reduce your pull request time by 75%.*
- Defense startup Anduril Industries is acquiring conventional and hypersonic missile rocket motor startup Adranos for an undisclosed sum.
- French seed stage-focused VC firm Frst held the first close of its second fund at €72M ($78.6M). The firm expects to hold the final close for the fund at €100M ($109M).
- RedBird, Otro Capital, and Ryan Renolds' Maximum Effort Investments are acquiring a 24% stake in Alpine Racing Ltd., the Formula 1 team of Renault SA Group. The consortium will invest €200M ($218M) for the stake, valuing the firm at $900M.
- AI-powered recruitment software maker Joonko's founder Ilit Raz voluntarily stepped down from the CEO role following allegations of "egregious, unethical and fraudulent conduct, which caused harm to the company and its shareholders."
- It's never been easier for your sales organization to accelerate growth. Learn how AI and more can help you sell in a whole new way.*
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 | Analyst | | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | This newsletter was edited by Aaron Crutchfield | |
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