What do the various startup funding rounds mean?
Pre-seed, Series A, Series B, et cetera...
This Twitter thread did a great job of explaining the types of startup funding rounds and what they all mean. So much so, I had to share.
Pre-Seed Round
Pre-seed round is an early stage funding round that takes place before a startup's official seed funding round. It is typically the first round of outside funding that a startup receives and is intended to help the company get off the ground.
Seed round
Seed round is a type of early-stage funding round that typically takes place after a startup has completed the pre-seed stage. It is usually the first official round of investment from external sources, such as angel investors & venture capital firms
Series A Round
Once a company has successfully established itself as a brand and has shown that it can successfully build traction, this is when Series A funding may come into play. It is aimed at helping a startup to further grow their user base & expand to different markets.
Series B Round
Reaching Series B round means that the company has already found its product/market fit, has a solid user base and it’s ready to expand to the next level. Series B aims to build on the existing success and scale rapidly.
Series C
During the Series C round, a startup typically seeks to raise a substantial amount of capital to further expand its market share, accelerate growth, and improve profitability. This funding can be used for a variety of purposes, including product development, sales and marketing, hiring top talent, and expanding into new markets or geographies.
Okay, enough of that. Here are this week’s leads…
Everstream is hiring
04.04.23 - Everstream, a company that uses big data analytics to optimize supply chain management, has raised $50 million in a Series B funding round. The funds will be used to expand Everstream's team and invest in further development of its platform. The company's software analyzes a range of data points to provide insights on inventory management, demand forecasting, and transportation optimization, among other areas. Everstream's technology has already been adopted by several large retailers and manufacturers.
Everstream plans to grow its 200-person workforce by 10% to 15% this year, with a particular focus on the data science, sales, product management and customer success and development teams. | Source
Seldon is $20m richer
03.16.23 - Seldon, a London-based startup that develops and deploys machine learning models in production, has raised $20 million in a Series B funding round led by Bright Pixel Capital. The funds will be used to accelerate Seldon's growth in the machine learning market and expand its team. Seldon's open-source platform allows developers to build and deploy machine learning models on Kubernetes, with support for a range of tools and frameworks. The company has already established partnerships with several major tech companies, including Google Cloud, Red Hat, and IBM, and has seen significant growth in its user base over the past year. | Source
As of this writing, 9 jobs posted on their careers page.
Pinecone Raises $100M in Series B Funding to Provide Long-Term Memory for AI
04.27.23 - Pinecone, an AI startup that provides a vector database for machine learning applications, has raised $100 million in a Series B funding round led by BOND and joined by previous investors. The funds will be used to develop Pinecone's platform further, increase its headcount, and expand its customer base. Pinecone's technology provides a long-term memory for AI systems, making it easier to search and retrieve vectors for use in machine learning models. The platform is fast, scalable, and easy to use, making it well-suited for a range of applications, including natural language processing, recommendation systems, and image recognition. The funding round reflects growing interest in the vector database market, as more companies look to incorporate machine learning into their operations. | Source | Careers page
Apax, Canada Pension Weigh Buyout of $2 Billion IT Firm Thoughtworks
05.02.23 - Apax Partners, a private equity firm, is reportedly considering the acquisition of IT consulting firm ThoughtWorks in a deal valued at around $2 billion. ThoughtWorks, which provides software development and technology consulting services, has seen strong growth in recent years, with revenue reaching $720 million in 2022. The potential acquisition comes as demand for IT consulting services continues to grow, driven by the increasing adoption of digital technologies by businesses. However, no final decisions have been made, and Apax is said to be weighing its options carefully before making a bid. | Source
A couple of thoughts: The acquisition could lead to increased demand for IT consulting services, as Apax Partners seeks to expand and grow the business. This, in turn, could lead to a need for additional IT consultants and developers. Second, the acquisition could result in layoffs or turnover among existing ThoughtWorks staff, creating a need for replacement talent.
An Opportunity to Diversify?
05.01.23 - Companies are facing increasing pressure from employees, investors, and regulators to address issues related to employee rights, such as pay equity, diversity and inclusion, and safe and healthy working conditions. The COVID-19 pandemic has highlighted many of these issues and accelerated the demand for change. In response, companies are taking steps to improve their policies and practices, such as increasing transparency around pay and benefits, implementing more robust diversity and inclusion programs, and investing in workplace safety measures. However, there is still much work to be done, and companies that fail to address these issues risk damaging their reputation, losing top talent, and facing legal and regulatory consequences. As a result, employee rights are becoming an increasingly important focus for businesses and investors alike.
To quote Bloomberg…
…this year’s proxy proposals have shifted somewhat from calls for racial audits and better board diversity to issues that more directly affect the worker such as paid leave, safety and labor rights, according to the Sustainable Investments Institute.
Prediction: Consulting on DEI issues has been a cash cow. The next wave of HR training? Employee Rights. I predict Employee Rights advocates will begin sprouting up to offer training and consulting services, as this new industry unfolds. As this happens, look for orgs like the National Institute for Workers’ Rights, and Workplace Fairness, to grow in prominence.
Sentera Announces Series C Funding Expansion
05.02.23 - Sentera, an agriculture tech company, has announced that it has raised $25 million in a Series C funding round. The funding will be used to expand Sentera's product offerings and enhance its artificial intelligence and machine learning capabilities. Sentera's products include drones and sensors that provide farmers with data and insights to improve crop yields and reduce costs. The funding was led by Caisse de dépôt et placement du Québec, with participation from S2G Ventures, Continental Grain Company, and Middleland Capital. | Source
Israeli insurtech software co Novidea raises $50m
05.03.23 - Novidea, an Israeli insurtech software company, has raised $50 million in a funding round led by Israeli private equity firm, CLAL Insurance Enterprises Holdings. Novidea's cloud-based software platform provides insurance brokers and agents with real-time insights to improve customer engagement and drive business growth. The company plans to use the funds to expand its platform capabilities and accelerate its global expansion. It will expand teams and offices across all target markets in the US, UK, EMEA, and APAC. Other investors in the funding round included Israeli venture capital firm, Aleph, and the venture capital arm of Singapore-based investment company, Temasek. | Source
Green Hydrogen Company Ohmium Closes $250 Million Series C
04.26.23 - Ohmium, a green hydrogen company, has announced that it has raised $250 million in a Series C funding round led by TPG Rise Climate. The funds will be used to scale up Ohmium's production capacity for green hydrogen and expand its operations in the United States and Europe. Ohmium's proprietary technology uses renewable energy sources to produce green hydrogen, which can be used as a clean and sustainable alternative to fossil fuels in various industries. The funding round also included participation from other investors, including Goldman Sachs Asset Management and Singapore's Temasek. | Source
Vancouver-based uBriGene Biosciences Closes $27.1 Million Series C+ Financing Round
05.02.23 - uBriGene Biosciences, a Vancouver-based biotechnology company, has closed a $27.1 million Series C financing round. The funding will be used to advance the development of uBriGene's cancer detection and treatment technologies. uBriGene's proprietary platform uses machine learning algorithms to analyze genomic data and identify biomarkers that can detect cancer in its early stages. The funding round was led by RA Capital Management, with participation from existing investors, including Fidelity Investments Canada and GreenSky Capital. The company plans to use the funds to accelerate its research and development efforts, expand its team, and prepare for commercialization of its technology. | Source
Trust, but verify
05.02.23 - Foretellix, an Israeli company that develops a platform for autonomous vehicle (AV) testing and validation, has raised $25 million in a funding round led by Woven Capital, the investment arm of Toyota, and Nvidia. Foretellix's platform uses scenario-based testing and coverage-driven verification to provide objective and measurable safety metrics for AVs. The funding will be used to accelerate the development and commercialization of Foretellix's technology. Foretellix plans to expand its offerings to address emerging challenges in the development of autonomous systems, including cybersecurity and the integration of AVs with smart cities. Ziv Binyamini, CEO at Foretellix, said the company will hire sales teams to help the company expand across more geographies. Foretellix already has around 150 employees spread across Israel, California, Detroit, Germany, Sweden, China and Japan. | Source
Manchester-based Zaptic raises $10 million
04.25.23 - Manchester-based startup Zaptic has raised $10 million in a funding round led by Crane Venture Partners, with participation from other investors, including 24Haymarket and Susa Ventures. Zaptic's platform provides an operating system for frontline teams, enabling them to collaborate, access information, and automate workflows. The platform uses artificial intelligence and machine learning to optimize workflows and improve productivity. The funding will be used to expand Zaptic's platform capabilities and accelerate its growth in the US and Europe. The company also plans to hire new talent in engineering, sales, and customer success. | Source
AI developer platform raises nearly $100M
04.25.23 - Replit, a San Francisco-based startup that provides an online integrated development environment (IDE) for coders, has raised $75 million in a Series C funding round led by Tiger Global Management, with participation from other investors, including Fidelity Investments, A16z, and Coatue. Replit's platform uses generative artificial intelligence to help developers automate coding tasks and collaborate more effectively. The funding will be used to expand Replit's platform capabilities, increase its engineering team, and accelerate its growth in the enterprise market. The company has seen significant growth in its user base over the past year, with more than two million developers using its platform. | Source
Carrier Announces Portfolio Transformation to Create Global Leader in Intelligent Climate and Energy Solutions
04.25.23 - Carrier, a global provider of heating, ventilating, and air conditioning (HVAC), refrigeration, fire and security, and building automation technologies, has announced a transformation plan to become a global leader in intelligent climate and energy solutions. The plan includes a portfolio transformation aimed at reducing Carrier's exposure to low-growth, commoditized markets and focusing on high-growth areas such as intelligent buildings and green technologies. The transformation will also involve investing in digital and data analytics capabilities and leveraging Carrier's global network to accelerate growth in emerging markets. The company plans to allocate $2 billion in capital expenditures over the next three years to support the transformation and expects to generate $500 million in annualized cost savings by 2025. | Source
A couple of thoughts: I see potential business opportunities for a recruitment agency that specializes in hiring for the HVAC, refrigeration, and building automation industries. As Carrier plans to invest in digital and data analytics capabilities and expand its focus on green technologies, a recruitment agency may be able to assist the company in hiring qualified candidates with expertise in these areas. Additionally, as Carrier looks to accelerate growth in emerging markets, a recruitment agency may be able to help the company identify and hire talent with knowledge of local markets and languages. The plan's goal of reducing exposure to low-growth, commoditized markets may also lead to a shift in Carrier's hiring needs, which a recruitment agency may be able to help navigate.
SAIC nabs $889M contract for DCSA’s One IT
04.26.23 - Science Applications International Corp. (SAIC) has won an $889 million contract from the Defense Counterintelligence and Security Agency (DCSA) for critical mission support services. Under the contract, SAIC will provide case management, subject interviews, records research, and analysis services to DCSA, which is responsible for conducting background investigations and providing personnel security and suitability services for the Department of Defense and other federal agencies. The contract has a five-year base period of performance and five one-year option periods. This is the second recent win for SAIC, reinforcing its position as a leading provider of national security solutions and supporting its growth strategy in the government services market. | Source
DMI AWARDED RECOMPETE CONTRACT WITH NATIONAL INSTITUTE OF HEALTH
04.19.23 - Digital Management LLC (DMI) has been awarded a recompete contract with the National Institute of Health (NIH) to provide technical support for the NIH Enterprise Information Technology Acquisition (NEITA) program. The contract has a one-year base period of performance with four one-year option periods and a total potential value of $54 million. Under the contract, DMI will provide a range of services, including IT strategic planning, software engineering, cybersecurity, data center management, cloud computing, and other IT services to support NIH's mission-critical programs. This contract win reinforces DMI's position as a leading provider of IT and digital solutions to the federal government, supporting its growth strategy in the government services market. | Source
One last thing…
The U.S. Chamber surveyed unemployed workers who lost their jobs during the pandemic on what is keeping them from returning to work. Twenty-seven percent indicated that the need to be home and care for children or other family members has made the return to work difficult or impossible. More than a quarter (28%) indicated that they have been ill and their health has taken priority over looking for work.
In addition to the factors outlined below, the survey also revealed some are still concerned about COVID-19 at work, indicate that pay is too low, or are more focused on acquiring new skills and education before re-entering the job market.
All that being said, check out this chart from March 2023.
