Latest news with #startups
Forbes
3 hours ago
- Business
- Forbes
AI Investment Represents New Gold Rush For Investors, Entrepreneurs
AI investments are top-of-mind for small business founders and VC firms Global venture capital (VC) investment in AI startups reached unprecedented levels last year, surging past $100 billion - an AI investment increase of over 80% from 2023's $55.6 billion. The AI gold rush momentum for entrepreneurs continued into the first quarter of 2025, with AI startups raising $73 billion. That total number accounted for a remarkable 57.9% of global venture capital dollars, a substantial increase from just 28% in Q1 2024. This concentration was even higher in North America, where 70% of venture funding flowed into AI startups, according to Pitchbook. Maria Palma, General Partner at San Francisco-based VC firm, Freestyle Capital, says, 'The fear of somebody else winning your market has never been higher than it is now.' That FOMO (fear of missing out) is driving investor dollars to entrepreneurial ventures with AI investment at the center of the business model. Here's how innovative entrepreneurs can capitalize on this shift in deal flow, and take advantage of current investor sentiment. AI Investment Bucks Market Trend for Entrepreneurs The broader market trends around investment are not as encouraging as the numbers for AI-based startups. While overall venture investments saw a significant decline from their 2021 peak of USD 702 billion, returning to levels seen between 2017 and 2020 (estimated at USD 313.6 billion by Crunchbase and USD 392 billion by Dealroom for 2024), AI investments have largely defied this downturn, demonstrating consistent growth. AI companies now command a substantial 20-30% of the total venture investment volume. This suggests that AI is perceived as a fundamentally different, high-growth, and transformative opportunity that defies broader market downturns or cautious investor sentiment in other sectors. Generative AI attracted $45 billion in funding last year, almost double 2023 levels of $24 billion. The unprecedented interest and impact in LLMs like ChatGPT, Claude, Grok, Gemini and other platforms has been a key driving factor - leading Bloomberg Intelligence to project that the industry will grow from $40 billion three years ago to $1.3 trillion in the next decade. How AI Investment is Changing for Founders Consider how two Yale students turned an innovative AI-based idea into $3 million in new investment, in just 14 days. Nathaneo Johnson and Sean Hargrow, both 21, created a new AI-powered networking platform called Series - billed as the 'anti-facebook' - a platform for high-value connections and networking. 'Social media is great for broadcasting,' Yale junior Johnson says, 'but it doesn't help you meet the right people at the right time.' For these founders, their timing to multi-million dollar funding was exactly two weeks - after meeting the right people at the right time. As a coach to entrepreneurs at the SXSW pitch competition in Austin, I experienced the value of timing firsthand. Of the teams that I coached this year, 100% focused on AI - and the winners' circle in Austin was filled with solutions built around artificial intelligence. Indeed, incubators like Y Combinator and others are funding numerous AI startups. Success stories, like Alexandr Wang, are living proof of the potential gains: Wang, founder of Scale AI, is the youngest self-made billionaire on the Forbes 2025 list. While AI can help you with your pitch deck, it still can't deliver your pitch for you. As neuroscientist Gregory Berns has said, "A person can have the greatest idea in the world but if that person can't convince enough other people, it doesn't matter." That's why, when it comes to accessing the gold rush of investor dollars around AI investment, leaders in the world of entrepreneurship need to keep these three key communication principles in mind: Looking into 2025, fintech leads investor interest, with 52% of investors eyeing disruption in finance, followed closely by healthcare and enterprise tech, according to June reports from Pitchbook. Deep tech bets remain strong, with 58% of investors backing robotics plays from founders. A notable trend is the rise of vertical AI startups, which offer laser-focused solutions targeting specific SaaS incumbents (such as the previously-mentioned healthcare and financial services, as well as the legal sector). Vertical AI companies in these arenas captured over $1 billion in combined funding in 2025 year-to-date, surpassing infrastructure and horizontal AI categories. The push for capital is not limited to one area or sector, as AI investment continues to be the top topic for VC firms and founders right now.
Forbes
3 hours ago
- Business
- Forbes
More Startup Funding Under U.K. Industrial Plan
Leandros Kalisperas, Chief Investment Officer, British Business bank says the investment outlook is ... More positive More public money is to be invested in startups and scaleups as part of the U.K. government's 'Modern Industrial Strategy,' which was unveiled this week. Under the plan, the publicly funded British Business Bank is to commit £4.0 billion of new capital to early-stage companies working in eight sectors identified as crucial to future economic prosperity. Meanwhile, an additional £2.6 billion will be available to promising startups across all industries. Coinciding with the publication of the strategy document, the British Business Bank (BBB) has released its own research into investment patterns in 2024. The data shows that while private investment flooded into AI startups and scaleups last year, the U.K. trailed the U.S. in key sectors such as advanced manufacturing and life sciences. Thus, if Britain is to become a science-led superpower, then there is some catching up to do. So, how does the British Business Bank see the investment outlook for Britain's technology startups, and what part will the institution play in supporting companies that have the potential to become global leaders? To find out, I spoke to Leandros Kalisperas and Matt Adey, respectively, Chief Investment Officer and Senior Economist at the BBB. The bank's report presents a mixed picture of the investment landscape. On the debit side, funding declined by 2.0% to £10.8 billion while the number of deals fell by a much larger 15% to 2,048. However, Kalisperas says, those figures have to be seen in context. 'Overall, it's positive,' he says. The value of deals was still the fifth highest on record.' And as he points out, for those companies that successfully raised capital, deal sizes were on average larger. 'There was a small decline in percentage terms and a slightly higher decline in deal numbers. That means companies that are getting finance are getting more finance,' he adds. AI Leads The Way Perhaps not surprisingly, companies operating in the artificial intelligence space did particularly well in 2024. According to the report, AI-related deals averaged £8 million, 40% higher than the average in other sectors. This aligns neatly with the desire of policymakers to establish the U.K. as a leader in the field. 'AI is a growth priority, " says Kalisperas. University spinouts also had a good year, collectively raising almost £2 billion. Again, this ties in neatly with the Industrial Strategy's aim of improving and accelerating the commercialisation of university research, something that the U.K. has not always done well. 'We do think this is absolutely critical given Britain's standing in the world. Commercialisation is the challenge, but the numbers speak for themselves in terms of the growth of that,' says Matt Adey. Regions See More Investment As Kalisperas sees it, rising investment in spinouts goes hand in hand with another theme of the report. Investment in Britain's regions is rising, a trend that is seeing London's share of the overall pot fall to 61%. This, he says, speaks to the success of companies emerging from university towns and cities outside London - and not just in and around Oxford and Cambridge. 'We talk about the golden triangle (Oxford, Cambridge, London) , but we are also seeing the development of the Northern Arc,' he says. The eagerness of universities to spin out science-led companies is, to some extent, being matched by local investment trends. Angels are crucially important because they have a local presence and can spot the emergence of promising companies. There are also increasing numbers of VCs working locally. Kalisperas cites the example of Northern Gritstone, a fund specializing in science investment in the North of England. Filling Funding Gaps All of which bodes well for investment in sectors identified by the Industrial Strategy, but there are investment shortfalls. For instance, the report notes that advanced manufacturing and life sciences are both underfunded when compared to investment levels in the U.S. 'When you adjust for the size of the economy, we are behind the US. But we have some successful businesses, so we are building from a strong base. But we do need to get closer to the U.S. funding levels,' says Matt Adey. However, as he stresses, the U.K. is ahead in clean energy and financial technology. That's where the BBB has an opportunity to play a key role in directing investment at strategically important industries. 'The Bank will get considerably more financial power. It is likel that we will be tasked with dealoing those gaps robustly,' says Kalisperas. It would be wrong to suggest that the Modern Industrial Strategy is all about startups. The plan includes cheaper electricity prices for businesses, cheaper and faster grid connection to the power grid, measures to boost exports and more defence spending. There will also be increased investment in quantum computing through a £670 million funding package and five progams to increase the use of AI in the services sector The initiative also sees the government putting more emphasis on promoting growth and innovation in the regions, a development welcomed by Aline Miller, Academic Innovation Lead at Manchester innovation district, Sister. 'This strategic pivot - placing greater emphasis on regional strengths outside the Golden Triangle - marks a needed shift towards a more balanced, inclusive model of national growth,' she said. Meanwhile, the enhanced financial power given to the BBB as part of the financial Strategy will give the bank a greater role in providing strategic funding across all the key sectors, such as life sciences, defence, digital technology and clean energy.
TechCrunch
7 hours ago
- Business
- TechCrunch
Learn what makes a pitch land at Disrupt 2025
Perfect your pitch for maximum impact. Investors hear hundreds of pitches, but only a few stand out. At TechCrunch Disrupt 2025, hear directly from Medha Agarwal, general partner, Jyoti Bansal, CEO and co-founder, Harness; Jennifer Neundorfer, co-founder and managing partner, January Ventures as they share what grabs their attention, what turns them off, and the subtle signals founders often miss. This candid panel reveals the insider strategies to help you build trust, stand out, and win the right checks. Join 10,000+ startup, tech, and VC leaders October 27–29 at Moscone West in San Francisco for high-impact discussions like this. Register here, take advantage of early pricing with up to $675 off tickets before rates go up. Championing founders through every challenge As a General Partner at Defy, Medha Agarwal is fortunate to support exceptional entrepreneurs from day zero through hyper-growth. Whether building her own startups or partnering with founders, she has experienced the highs and lows of company-building, sometimes all within the same hour. It's one of the hardest, loneliest jobs in the world, which is why she believes founders need trusted partners who can be there for anything, big or small. Agarwal strives to be that person. Before Defy, she spent seven years as a Partner at Redpoint Ventures, focused on early-stage fintech, vertical SaaS, marketplaces, and healthcare. She had the privilege of working with companies like Whatnot, Tend, Proper Finance, LiveKit, and Anvyl—founders who taught her as much as she supported them. Software innovation for a better world Jyoti Bansal is a serial entrepreneur who believes passionately in software's ability to change the world for the better. He co-founded Harness in 2017 to automate and simplify all software delivery processes, and serves as CEO. In 2018, he co-founded Traceable, the leading API security platform, and venture capital firm Unusual Ventures. In 2008, Bansal founded application intelligence company AppDynamics, which he led to a $3.7B acquisition by Cisco in 2017. The recipient of multiple leadership awards, Bansal has been named Forbes' 'Best Cloud Computing CEO to Work for,' San Francisco Business Times' 'Best CEO,' Ernst & Young's 'Entrepreneur of the Year™ for Northern California,' and more. Operator-turned-investor empowering B2B innovation Jennifer Neundorfer is an operator turned investor who has been investing in early-stage startups for the last decade. She is currently the Managing Partner of January Ventures, a pre-seed focused venture capital firm investing in B2B startups leveraging software to transform legacy industries. She founded January Ventures to rewrite the networks in venture capital and invest in the most ambitious founders regardless of pedigree, network, or access. Prior to January, Jennifer was co-founder of Flashstarts, a startup accelerator focused on software startups outside of Silicon Valley. Techcrunch event Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Boston, MA | REGISTER NOW Unlock savings today, uncover insights at the event The Disrupt 2025 agenda is now LIVE and ready for your eyes! Explore the nearly complete lineups for the Builders and Going Public Stages — and check back often as we continue to add sessions to the AI, Space, and Disrupt Stages, plus roundtables and breakouts. Register now and save up to $675 before prices increase.
TechCrunch
7 hours ago
- Business
- TechCrunch
Wispr Flow raises $30M from Menlo Ventures for its AI-powered dictation app
Startups developing voice AI technology and applications are having their moment. Model builders like ElevenLabs and Cartesia have raised millions of dollars in the last few months. Applications such as AI-powered notetaker Granola, and meeting tools Read AI and Fireflies AI have also received investor attention and backing. Continuing the trend, dictation app Wispr Flow announced today that it is raising $30 million in Series A funding from Menlo Ventures with participation from NEA, 8VC, Opal CEO Kenneth Schlenker, Pinterest Founder Evan Sharp, Carta CEO Henry Ward, and Lindy CEO Flo Crivelli. Menlo's Matt Kraning, who also backed the company as an angel investor, will join its board. To date, the company has raised $56 million. The startup's founder and CEO, Tanay Kothari, started building Wispr to create a device that would allow users to type just by mouthing words silently. Its prior funding was for that business. Last year, the company instead started focusing on Wispr Flow, the software interface designed for the hardware device. The company released a Mac app in October 2024, followed by a Windows app in March 2025, and an iOS app earlier this month. Kothari mentioned that, since its early release, VCs in Silicon Valley have been using the product. 'I think every single tier one venture fund in the valley uses Wispr Flow for their emails, memos, documents, and more. They feel themselves being hooked on it, and it is one of the products they use every day. Because of this, we started getting a lot of inbound,' Kothari said about investor interest. Notably, Granola also had a similar story of receiving immense investor interest because VCs used their product a lot. Startup's CEO Tanay Kothari Image Credits: WisPr Flow Kothari also noted that the startup will soon achieve profitability at the current rate of growth, and initially, he didn't want to raise money. However, he worried that big tech players with a massive distribution advantage could be a risk to the company. He wanted to multiply the company's revenue and reach rapidly, and decided to take the investment. Kraning, who has been an avid user of the app, said that his initial thesis for Wispr Flow was that with the current set of input methods, like keyboards, we are 'waiting for our thumbs to catch up with our thoughts.' 'Wispr Flow is creating an efficient way to translate digital thoughts and intent. The app captures users' speech and what they want to convey very well. The team has thought about how people speak while developing models rather than focusing on things like word error rates,' he told TechCrunch. User growth and future roadmap The startup said that the app has been growing its user base by 50% month-over-month. Kothari noted that 40% of users of the app are in the U.S., 30% in Europe, and 30% in other parts of the world. In addition, more than 30% of the app's users are from a non-technical background. 'More and more people are using AI tools, but still, there isn't a good interface for people who are not techies. ChatGPT-style interface is the most common one, and that was released three and a half years ago. We are building for all kinds of users so they don't have to write system prompts to interface with AI,' Kothari said. At the moment, Wispr Flow supports dictation in 104 languages. Kothari said that 40% of dications are in English, and 60% of them are in the rest of the languages, with Spanish, French, German, Dutch, Hindi, and Mandarin being the top languages. The company will use the funding to grow its team of 18 with roles in engineering and go-to-market. It will also release an Android app and cater to Enterprise users by setting up company-wide phrase context and support teams. The startup is working on building Flow into a product that is akin to an AI-powered assistant that knows more about your personal context and helps you do everyday tasks like send messages, take notes, and set reminders. Plus, the company said it's working with some AI hardware partners, without naming them, to power the interaction layer.
Associated Press
7 hours ago
- Business
- Associated Press
Miami-based Kiara Capital Announces First Close for Fintech-Focused Fund raising up to US$ 40 million
The fund invests in B2B fintechs operating in Latin America and the US MIAMI, June 24, 2025 /PRNewswire/ -- Kiara Capital, a Miami-based venture capital firm founded by serial fintech entrepreneurs, has announced the first close of its inaugural fund. The fund focuses on early-stage B2B fintech startups operating in Latin America, and cross-border markets linked to the United States. Founded in 2023, Kiara Capital specializes in early-stage investments, from pre-seed to seed. Since inception, the firm has reviewed over 160 opportunities and made five investments, including Astride, a U.S.-based fintech offering accounting solutions for foreign investors, and Payana, a platform using AI to enhance financial operations for small and mid-sized businesses in Mexico and Colombia. Kiara's current portfolio spans startups in Brazil, Mexico, Colombia, and the U.S., with approximately $2 million already deployed. The fund was co-founded by Michael Esrubilsky and Daniel Arippol. Michael Esrubilsky brings over 25 years of experience in fintech, with four successful fintech exits in Brazil totaling nearly $1 billion. As an angel and seed investor, he has built a track record of 14 investments with a 9.8x multiple on invested capital (MOIC) and a 45%+ internal rate of return (IRR) in US dollars. Daniel Arippol complements the team with more than 15 years of experience in private equity, venture capital, and innovation across emerging markets. He has also served as an advisor to multiple high-growth technology and financial services companies operating in both Latin America and the United States. After validating its investment thesis using only partner capital, Kiara Capital has now opened its first external fundraising round. The fund targets $30 million, with the potential to close at $40 million. Investors include founders, bank CEOs, VC partners, and family offices with strong interest in fintech and financial innovation. The founding partners remain the largest investors in the fund, ensuring strong alignment with LPs. 'Opening the fund to outside investors is a natural next step — one that expands our investment capacity while maintaining full alignment,' said Esrubilsky. 'We're bringing in knowledgeable, experienced partners to co-invest with us in the opportunities we're already pursuing.' He noted that even as new investors join, the Kiara founding partners will continue to hold a significant stake in the fund, committing to never fall below 10% of total capital. Kiara Capital aims to build a high-conviction portfolio of 15 to 20 startups, with initial checks starting at $500,000 and substantial reserves allocated for follow-on rounds. The fund is structured in the United States to support global flexibility while maintaining a strong emphasis on Latin American and US cross border markets. The timing, according to the partners, is favorable for early-stage investing, given attractive valuations and an increasing flight to quality among top founders. Kiara's edge lies in its active support model — providing hands-on strategic and technical guidance based on the partners' own experiences as successful operators and investors. 'We prioritize founders who have deep expertise in the industries they're building in, excel in execution, and often come through trusted referrals in the ecosystem,' said Arippol. 'We look for companies that combine strong product-market fit with the potential for outsized impact in the financial sector.' About Kiara Capital Kiara Capital is a Miami-based venture capital firm focused on early-stage B2B fintech investments, with operations across Latin America and the United States. The firm blends entrepreneurial experience, disciplined deal selection, and close founder collaboration to generate strong returns. To learn more, visit: Photo - View original content to download multimedia: SOURCE Kiara Capital
