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This week brought us mixed messages. A fresh IPO filing, but a bleak outlook for exits overall. New funding rounds, but founders frustrated over lack of capital. And in the midst of it all, some VCs are still finding ways to create liquidity and raising funding for more bullish times.
In a week of contrasts, startups exhibited both confidence and insecurity, and even second-time founders weren’t spared from struggles.
Fearless or not: Design software company Figma filed its confidential paperwork for an IPO, ignoring the fears that made both Klarna and StubHub pause their IPO plans this month following the stock market crash triggered by tariff announcements.
Figma, however, isn’t worry-free: It sent a cease-and-desist letter to fast-rising “vibe coding” rival Lovable over the term “Dev Mode.”
Frustrated: U.K. founders expressed frustration at the widening gap between funding raised by British startups and their Silicon Valley peers. According to Dealroom, British startups raised just £16.2 billion (approximately $21.5 billion) last year compared to the approximate $73.8 billion (£65 billion) raised in the U.S.
Smashed: Smashing, an AI-powered reading curation app launched last June by Goodreads’ founder Otis Chandler, shut down due to disappointing growth.
Suspended: BluSmart, an Indian Uber rival using EVs, apparently suspended service a day after the Securities and Exchange Board of India launched an investigation into Gensol Engineering, which shares its co-founders.
Back: One month after reassuming his role as Bolt’s CEO, Ryan Breslow unveiled a new “super app” that reflects his vision for the fintech company he founded in 2014.
Investigating: Rippling’s efforts to serve Deel CEO Alex Bouaziz have been significantly hindered by the fact that he and his lawyer are now in the UAE, TechCrunch learned. But the company isn’t giving up and is also pushing for Revolut to reveal who paid off Deel’s alleged spy.
Tailwinds: OpenAI is reportedly seeking to buy Windsurf for $3 billion. The startup was previously known as Codeium, whose popular AI coding assistant competes with Cursor and the like.
This week brought us funding news that’s hinting at better days ahead, with increased valuations and bigger funds that may no longer be the exception.
Growing: Marshmallow, a British insurance startup, raised $90 million in equity and debt at a valuation slightly above $2 billion. Focusing on customers left out by traditional insurers, it boasts a million drivers insured and a profitable annual revenue run rate of $500 million.
