Startup land was anything but quiet this week, as the news cycle around the U.S. election couldn’t quell the activity in the entrepreneurial world. Despite the political backdrop, several startups made headlines with noteworthy events, from mergers and acquisitions to funding rounds and shutdowns.
One of the most intriguing stories was the performance of Perplexity, an AI startup that provided reliable insights and data visualizations during the election night. While many AI labs stayed on the sidelines, Perplexity’s Election Information Hub stood out, showcasing the potential of AI-driven tools in the political arena.
The election results also brought into focus the future of the Inflation Reduction Act, a legislation that has broadly benefited startups, either directly or indirectly through its effects on investment and customer demand. Contrary to expectations, the return of former President Trump to the White House doesn’t necessarily spell the end of this climate-focused initiative.
In other news, the vertical farming unicorn Bowery Farming announced it is ceasing operations, a sobering reminder that not all startup stories have a happy ending. On a more positive note, veteran Latvian on-demand printing companies Printful and Printify announced a merger, signaling consolidation in the industry.
Despite the lower-than-usual deal count and funding volume, some startups managed to secure fresh capital this week. Chinese autonomous driving startup DeepRoute.ai raised $100 million, while Mexico City-based MoradaUno, which simplifies apartment rentals, secured a $5.6 million Series A round. Dash0, a Datadog challenger, raised a $9.5 million seed round, and Transaera, a company working on dehumidification solutions, raised $8.2 million in seed funding.
In the venture capital realm, Coatue Management is reportedly raising $1 billion for future investments in AI-focused companies, while Lisbon-based VC firm Faber made a €31 million first close of its third fund.
As the startup landscape continues to evolve, one key lesson emerged this week: there’s no set milestone that VCs will request to unlock a Series A round. Instead, they are focusing on the quality of a startup’s annual recurring revenue (ARR), rather than the quantity.
