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This week’s events demonstrated that despite uncertain times, some startups are still securing significant funding, particularly those focused on security and sovereignty.

Highlights from the startup world this week

Uncertainty often doesn’t match with investment, but there’s always room for security investments, whether online or in real life.

Defying Trends: AI startups secured $110 billion in funding in 2024, a 62% increase from 2023, while overall startup funding declined by 12% year-over-year.

Meanwhile, European defense, security, and resilience tech startups Raised $5.2 billion in 2024, accounting for a record 10% of all VC funding in Europe.

French AI Success: Mistral AI, a French AI champion, was in the spotlight during the Paris AI Summit, with its AI assistant Le Chat becoming the most downloaded iOS app in France.

Security Acquisitions: Data, a security compliance firm, acquired software security review startup SafeBase for $250 million. CyberArk, an identity security company, purchased Zilla Security for $165 million in cash, with an additional $10 million contingent on certain milestones.

Notable VC and funding news this week

This week, startups across various sectors announced funding rounds. Founders Fund is also expected to close another $3 billion fund soon.

Funding Boost: Zeta, a banking software provider, is now valued at $2 billion after raising $50 million from a strategic investor.

Quantum Funding: Boston quantum startup QuEra secured $230 million in debt via a convertible note, at an undisclosed valuation that its CEO described as a substantial increase from the previous round.

Afforestation Efforts: Carbon removal startup Chestnut Carbon closed a $160 million Series B round to convert old farms into forests.

Health Tech: Australian health tech startup Harrison.ai raised a $112 million Series C round for its AI-enabled medical diagnostic software.

Medical Billing: American startup Candid Health closed a $52.5 million Series C to simplify medical billing, just six months after raising $29 million.

AI Biotech: Latent Labs, an AI biotech startup founded by a former DeepMind research scientist, launched with $50 million in funding.

Customer Value: Israeli startup Voyantis secured $41 million to apply AI in determining the lifetime value of customers.

Founders Fund: Peter Thiel’s Founders Fund is on track to close another $3 billion fund, according to sources, which will be the firm’s third growth fund.

Worth Noting

Sheel Mohnot, co-founder and general partner of Better Tomorrow Ventures, has over 150,000 followers on X. Mary Ann Azevedo’s interview with him is a must-listen, as he discusses his Twitter fame, AI, and fintech.

Mohnot expressed his enthusiasm for various areas, including the persistence of the “everything is fintech” story. “I’m excited about a lot of the stuff that we always believed in, which is ‘the everything is fintech’ story, which persists today,” he said.