Get ready for the latest edition of Startups Weekly, your go-to source for a weekly rundown of the startup world’s most significant happenings. To receive this recap in your inbox every Friday, sign up here.

This week was a rollercoaster ride, with the startup ecosystem seeing a mix of achievements and setbacks. While some companies made strides in innovative fields like nuclear energy and electric vehicles, others faced challenges, including financial struggles and layoffs.

Most Interesting Startup Stories of the Week

This week’s startup news was a mixed bag, with finalized public exits, delayed IPOs, and a range of developments that brought both promise and disappointment.

Customer Concerns: An investigation by TechCrunch revealed that several companies listed on 11x’s website were not actual customers of the startup, which is backed by a16z and Benchmark. Sources also pointed out that 11x used unconventional methods to calculate its annual recurring revenue.

Delayed IPO: Cerebras Systems’ IPO has been delayed again, with the AI chipmaker’s national security review still ongoing after filing to go public in 2024.

Nuclear Developments: Terrestrial Energy, a U.S. nuclear startup, went public via SPAC and is expected to net $280 million. Meanwhile, Bill Gates-backed Commonwealth Fusion Systems achieved a key milestone in constructing its demonstration reactor.

Bankruptcy Filing: Vertical farming company Plenty filed for bankruptcy after raising nearly $1 billion in funding from notable investors, including SoftBank Investment Advisers and Bezos Expeditions.

Layoffs: Block, the fintech startup co-founded by Jack Dorsey, laid off 931 employees, as revealed in a leaked email. This move follows previous layoffs in 2024.

Rumors and Acquisitions: Nvidia is reportedly close to acquiring Lepton AI, a startup that rents out servers powered by Nvidia’s AI chips. Additionally, FuriosaAI, a South Korean AI chip startup, turned down an $800 million acquisition offer from Meta.

Most Interesting VC and Funding News This Week

We’ve curated a list of funding rounds that caught our attention this week, ranging from pre-seed to Series E, along with new funding for VCs to support emerging startups.

Digital Banking Boost: Mercury, a digital banking startup, secured $300 million in primary and secondary funding, including a Series C led by Sequoia, more than doubling its valuation to $3.5 billion post-money.

Valuation Increase: Island, a company that specializes in enterprise browsers, raised $250 million in a Series E led by Coatue, valuing the startup at $4.85 billion, a significant increase from its previous round less than a year ago.

Micromobility Startup: Rivian spun out a new micromobility startup called Also, which has already received $105 million from Eclipse Ventures. The startup aims to build small EVs, with its flagship product set to enter production next year for the U.S. and European markets.

Automation Funding: n8n, a Berlin-based workflow automation startup, raised $60 million in a funding round led by Highland Europe, with participation from HV Capital and previous investors Sequoia, Felicis, and Harpoon. Sources indicate the valuation was close to $270 million.

Ramp for LatAm: Mendel, a Mexico City-based YC alum, raised a $35 million Series B and expects to reach profitability by late 2025.

AI Expansion: Arcade, a generative AI marketplace, simultaneously announced its $25 million Series A funding and its expansion into home goods, starting with rugs.

Paid AI Agents: Former Outreach CEO Manny Medina launched Paid, a startup that has already raised $11 million in pre-seed funding to ensure AI agents receive compensation.

AI-focused Fund: Emergence Capital closed a $1 billion seventh fund to invest in B2B companies, with a particular interest in AI.

New Fund: French VC firm Daphni announced the first closing of its third fund, Daphni Blue, with approximately $215 million secured out of its $270 million target.

Broader AI Investments: Amazon’s Alexa Fund is expanding its focus beyond voice startups to include a broader range of AI investments.

Last but Not Least

A recent report highlighted the world’s 20 hottest open source startups. You can find the full list and more details here. Notably, more than half of these startups have AI at their core.