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| Hey Insiders, Here are the latest stories: - E-bike startup Revonte files for bankruptcy
- Funding for PNW startups drops 46% YoY
- Origin acquires estate planning startup MyAdvocate
If you find this newsletter useful, please share it with your friends and colleagues. Thank you. Karan
p/karan-chafekar | |
| 1 | | Finnish e-bike drive system company Revonte has filed for bankruptcy. The company noted it is looking to sell off its intellectual property due to fundraising difficulties. More: - The startup raised €2M ($2.1M) in a seed round in 2019 but struggled to secure additional funding, necessitating the bankruptcy decision.
- Revonte was known for its Revonte One e-bike drive system with integrated transmission.
- Revonte had been attempting to raise funds since 2022 to develop a new, lighter-weight e-bike motor design.
- Attorney Robert Peldán from Borenius Attorneys Ltd has been appointed as the estate administrator for Revonte Ltd as part of the bankruptcy proceedings.
- The e-bike industry has seen various challenges since the pandemic, including the VanMoof bankruptcy, concerns about Flyer, disputes between Cowboy and eBikeLabs, and Bird's delisting.
Q: In hindsight, what strategies or measures could the e-bike startup Revonte have implemented to avert bankruptcy? Join the discussion here. |     | |
| 2 | | In Q3 2023, funding for Pacific Northwest (PNW) startups dropped to the lowest quarterly level across the past five years. 
What the numbers say: PNW startups raised $920M in VC funding in Q3 2023, down 46% compared to the same time last year. Funding declined despite the deal count increasing from 46 in Q3 2022 to 48 in Q3 2023. The lower cumulative deal value is down to a drop in mega funding rounds of over $100M. In the recent quarter, only one startup closed a mega funding round, compared to four in the same quarter last year. The startup that closed a mega funding round in Q3 2023 was Seattle-based biotech firm Avalyn, which raised $175M last week. Relevance: The funding drop seen in PNW startups is higher than the 30% YoY drop seen nationwide. In Q3 2023, VCs invested $32.7B in U.S.-based startups across 2,715 deals. In comparison, VC invested $46.4B across 3,933 deals in Q3 2022. | | | |
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| 3 | | Fintech startup Origin acquired estate planning startup MyAdvocate for an undisclosed sum. The acquisition will enable Origin to expand its financial wellness platform by entering the estate planning domain with will and trust creation solutions. Origin's CEO and founder, Matt Watson, told Axios that the deal included a mix of cash and equity. More: - MyAdvocate created a platform to let customers create a will or trust without needing a lawyer.
- The firm had raised just over $3M in funding from Courtney Ventures at a $20M valuation.
- Origin will close MyAdvocate's DTC platform and merge it with its offerings.
- Origin acquired financial education startup Finny earlier this June.
- The firm has raised $70M in total funding from investors.
- Notable backers of the firm include 01 Advisors, Lachy Groom, General Catalyst, Founders Fund, Felicis, and Abstract Ventures.
Zoom out: - Per Origin, nearly two-thirds of Americans don't have an estate plan.
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| 4 | | French startup Qobra has raised $10.5M in its Series A funding. The round was led by Singular, with additional participation from Revenue Syndicate and Breega. More: - The platform assists businesses in managing sales compensation by integrating with CRM, ERP, and data warehouse systems.
- This integration allows teams to define compensation rules, calculate payouts, and provide real-time visibility to sales performance.
- The funding will support Qobra's expansion into the U.K. and the U.S.
- Qobra plans to double its team from 30 to 60 employees to support its growth and expansion.
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| 5 | | Payments-as-a-service fintech startup Rainforest bagged a $8.5M seed funding round led by Accel. In addition, the firm secured a $3.25M venture debt facility from Silicon Valley Bank. More: - The firm helps software companies embed payment solutions in their products.
- Since its founding in 2022, the firm has secured client commitments to process payments worth $500M.
- Notable clients of the firm include PayGround, Curae, Rose Rocket, and QuoteMachine.
- CEO and founder Joshua Silver said, "We provide low-code integration technology, true merchant portability, and high-touch service, while bearing the risk and compliance burdens. It's a very different model from competitors."
- Infinity Ventures, BoxGroup, The Fintech Fund, Tech Square Ventures, Ardent Venture Partners, and others participated in the seed funding round.
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| 6 | | Iowa-based agriculture spray drone service provider Rantizo has raised over $6M in its Series A funding round. The round was led by Leaps by Bayer, with additional venture participation from Fulcrum Global Capital and Innova Memphis participation. More: - Rantizo specializes in using spray drones for precise and localized crop application services, covering a range of crops in various states, such as rice in Arkansas, corn in Iowa, hops in Oregon, and potatoes in Idaho.
- The company's CEO, Mariah Scott, previously led Verizon's drone software subsidiary, Skyward.
- The company, which operates in 30 states across the U.S., aims to expand its operator network.
- Rantizo's spray drone services have already gained traction with over 20% of the Top 50 agriculture retailers.
- The Iowa-based company plans to use the funds to expand its nationwide operator network and further develop its autonomous spray drone services in agriculture.
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| 7 | | Quick Hits: - It's been 150 years since the last great leap in engine technology. Invest in LiquidPiston to be part of the next one.*
- SEC filings revealed that Seattle-based startup Docket has raised $5.35M from investors. Co-founder and CEO Arjun Pillai confirmed the news to GeekWire.
- Seattle-based Atomo Coffee is launching the world's first beanless coffee this week. The startup, which has raised $51.6M to date, has made the new product using superfoods and upcycled ingredients that mimic coffee.
- Loop, a startup providing audit and payment solutions for logistic companies, bagged $35M in fresh funding led by JP Morgan Growth Equity Partners and Index Ventures.
- Commodity market intelligence firm Sparta Commodities bagged $17.5M in Series A funding led by FirstMark.
- Even the best engineers can run into challenges. Straight from the cloud experts at DoiT, here are 5 core strategies for cloud innovation.*
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Term of the Day January Effect: The January Effect is a seasonal increase in stock prices that tends to happen in January. Question of the Week Do you share details about your salary with your coworkers? Join the conversation |
INSIDE STARTUPS LEADERBOARD (7 DAYS) |
 | Analyst | | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot.
Robel is a writer for Inside.com. He was born and raised in the Bay Area but now lives in the Midwest. He is passionate about all things tech, venture, city, and state government, and in his free time enjoys outdoor activities including biking, hiking, and running. | | This newsletter was edited by Vibha Chapparike | |
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