The top 10% of late-stage U.S. startups saw their valuation decline by 54% YoY to $680M in Q3, according to a report by PitchBook. The report notes that there are over 1,200 startups with a valuation of at least $1B and warns some of them, particularly the ones that became unicorns in 2021, might have to raise down rounds. More: - 340 startups became unicorns in 2021.
- Startups collectively raised $81B in Q3, a 53% drop YoY and a 33% decline QoQ, according to Crunchbase.
- PitchBook's VC-backed IPO index shows that companies that raised venture funding before going public have seen their market caps decline by 69% YoY compared to their IPO valuations.
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Brex, the corporate financial management company, is launching a Catharsis program focusing on startup founders' mental health. Brex will interview well-known founders about their mental health struggles and publish those conversations on social media to destigmatize the topic. More: - According to the National Institute of Mental Health, 72% of startup founders face mental health issues.
- With 25% of startups already using Brex services, the Catharsis program will connect these founders to therapists and psychologists equipped to address their specific mental health needs.
- Users can pay for the sessions using Brex points.
- Brex hopes to prevent burnout by helping founders reach their "full potential."
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 A message from GUN.IO If you could work with a senior developer for free for three months, what could you accomplish? Gun.io is hosting a pitch competition (pre-recorded, so no live stage jitters) this month to give you a chance to do just that. Simply record your pitch in Rhetoric and submit it by November 21. Pitches will be judged by a panel of senior developers, and all participants will receive feedback on their pitches from the developer's perspective. Pitches should: - Describe the problem you're solving
- Demonstrate your 3-6 month product roadmap
- Appeal to developers
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Lynx emerged from stealth to connect early-stage startups with service providers. Its platform is now available in beta. The platform provides startups an option to employ services of service providers by allocating future equity in the form of sweat equity arrangements, called SWEAT Notes. More: - The platform is suitable for startups that want to conserve their cash burn on services, especially at the current time when venture funding is difficult to raise.
- Lynx is initially offering startups legal, marketing, public relations, product development, and fractional CFO services.
- Lynx’s SWEAT Note enables service providers to work for startups in exchange for future equity at a discounted price.
- The Austin, Texas-based firm’s advisory team includes professionals with experience in venture capital, ESG, software engineering, cryptocurrency, and public relations.
- Notable advisory team members are Energy Capital Ventures’ co-founder Vic Pascucci III, Amini & Conant partner Neema Amini and Coinbase executive Craig Hammell.
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The State of Minnesota has partnered with the University of Minnesota to invest $34.5M in early-stage startups in the state. Funding for the initiative will come from the $97M sanctioned for the State of Minnesota under the America Rescue Plan Act by the federal government. More: - In addition to backing seed and early-stage businesses, the university will also invest in venture capital funds.
- Direct investments will focus on startups in life sciences, agriculture/food tech, climate tech, advanced manufacturing, software, and technology sectors.
- Russ Straate, who manages the university’s venture center, will oversee the investments through the new initiative.
Zoom out: - The state roped in the University of Minnesota since state government agencies are prohibited by law from making direct equity investments.
- The state will also support businesses through the Minnesota State Small Business Credit Initiative’s (SSBCI) Direct Investment and Multi-Fund Venture Capital Programs.
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 A message from VESTABOARD Production on the beautiful new Vestaboard White is underway. A fresh take on the award-winning flagship design, be among the only 1,000 to own this limited edition release. Vestaboard is a beautiful smart messaging display that can be controlled from anywhere. With 8,448 moving flaps and a mesmerizing sound, Vestaboard owners can send any message at any time, creating moments of connection every day at home or at work. - Vestaboard’s ability to be fresh, captivating and delightful, from the moving flaps to the mesmerizing sound, is unlike any other piece for the home or workplace.
- Vestaboard is a beautiful alternative to a digital, glowing screen. It displays up to 132 characters at a time including all the colors of the rainbow.
- The free Vestaboard app enables customers to send messages from anywhere, collect favorites, choose from Vestaboard’s daily picks, review their message history and more.
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Yahaha is helping creators develop metaverse content with little to no technical know-how. The Helsinki- and Shanghai-based startup recently announced it raised $40M Series A+. Temasek and Alibaba co-led the round. More: - The startup, which boasts over 100,000 creators, had previously raised $50M.
- Yahaha will use the funds to introduce monetization programs, add more social features, and expand its development team.
- The company employs 150 people and was founded by 3 Unity engineers.
- The metaverse gaming platform affords creators low-code tools to design their own immersive worlds.
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Home-building tech startup Atmos raised $12M at an undisclosed valuation. Atmos' technology enables prospective home buyers to build a 3D design of their dream house. Atmos also operates a marketplace to connect home buyers with home builders. More: - Atmos has raised $18.7M since its inception in 2018, according to Crunchbase.
- The round was led by Khosla Ventures but also saw participation from Bedrock, JLL Spark, YC, and OpenAI CEO Sam Altman.
- Atmos has helped build six homes and has a "few dozen more" in the pipeline.
- The company generates revenue by imposing a $20,000 flat fee on homebuilders to locate clients and an additional cost of construction 5% service fee.
- The company didn't share information about revenue and profits or losses.
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Quick Hits: - Apis Cor holds the current Guinness World Record for the largest 3D-printed building on Earth. Invest in the future of construction.*
- International Finance Corporation (IFC) announced a $225M venture capital platform to back early-stage startups. The sector-agnostic platform will invest in startups across Africa, the Middle East, Central Asia, and Pakistan.
- Over the next three years, the Nevada Governor's Office of Economic Development (GOED) will place more than 300 students in paid internships with startup and early-stage high-growth companies. The GOED allocated $1.4M for the new program.
- Impact-Linked Fund for Gender Inclusive Fintechs launched a new accelerator program dubbed Financial Solutions for Migrants. The program is open to for-profit entities incorporated in Sub-Saharan Africa, MENAT, or South Asia. The program will back startups working on increasing the financial inclusion of migrants and women.
- BoostSecurity.io Inc. emerged from stealth mode with a $12M seed financing from Sorenson Capital. The firm provides a DevOps security automation platform to detect and remediate security vulnerabilities in the software supply chain.
- AI-powered hyperspectral data analysis solutions company Metaspectral nabbed $4.7M seed funding from SOMA Capital, Acequia Capital, and others.
*This is sponsored content.
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 |  | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot.
Jigney Pathak is a Business Researcher at Inside who loves technology, finance & sports. He has a Bachelor of Business Administration with a finance specialization & has previously worked at Salesforce.
Courtney Rawlings is an Inside Research Analyst living in Los Angeles, California. She has returned to her hometown of LA after spending several years working at Emory University in Atlanta, Georgia, where she is completing a Ph.D. in Art and Architectural History.
| | | | Editor | Vibha Chapparike is a Freelance Writer & Editor at Inside.com. With her post-graduation in Management and Finance completed, Vibha is expanding her knowledge in venture capital, business, startups, and technology. She has had a career in public relations and communications. An ardent reader and writer currently residing in Singapore, you can follow Vibha on Twitter @VChapparike. | |
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