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| Here’s a look at today’s Startups briefing. - ๐ App startup funding declines despite their growing popularity.
- ๐ฉ๐ป SVB finds women’s health startups are undervalued.
- ๐ค ABN AMRO acquires Dutch neobroker BUX.
We have also rounded up the top early-stage funding rounds of this week. Thank you. Karan
p/karan-chafekar | |
| 1 | | So far this year, VCs have invested around $3B in app startups in the U.S., per Crunchbase. The sector bagged 14% of U.S. funding in 2016. However, in 2023, their share of capital declined to 2.5%, which is surprising given the growing popularity of applications. More: - Investments for U.S.-based app startups peaked at $19B in 2021 before plunging by 64% the following year to $6.7B.
- Funding for the sector continues to decline as investors are now chasing AI deals instead.
- Only four app startups were able to raise mega funding rounds of over $100M this year.
- No startup in the sector could breach the $200M ceiling.
- Within the sector, investors are still investing in health and healthcare app startups.
- The largest U.S. app startup to raise funding this year is the on-demand healthcare workforce app ShiftMed, which raked in $200M in February.
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| 2 | | VCs deployed $877.8M in early-stage North American startups this week between Dec. 9 and Dec. 15, per Crunchbase data. Biotech startups raked in 35% of the funding this week. AI, aerospace, and financial services startups nabbed 12%, 11%, and 4.6% of the financing, respectively. 
Here are the top five largest rounds announced this week: - Biotech startup Tome Biosciences emerged from stealth with a $213M Series A and B funding from ARCH Venture Partners, Andreessen Horowitz Bio + Health, Fujifilm, Longwood Fund, Polaris Partners, GV, and others.
- Space threat reconnaissance systems maker True Anomaly Inc. raised $100M in Series B funding led by Riot Ventures. Eclipse Ventures, ACME Capital, and Menlo Ventures participated in the funding round.
- Essential AI, a startup founded by two co-authors of a research paper at Google, emerged from stealth with $56.5M funding. March Capital led the round with additional support from AMD, Franklin Venture Partners, Google, Nvidia, and Thrive Capital.
- Novel small molecule therapeutics discovery platform Deep Apple Therapeutics secured $52M in Series A funding led by Apple Tree Partners.
- Banking and technology platform fintech startup Kapital bagged $40M in Series B equity funding led by Tribe Capital. In addition, the firm availed $125M in debt financing.
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| 3 | | A new report published by Silicon Valley Bank found that women's health startups are undervalued, with their worth being just a fifth of their generalist peers. Median valuations of seed-stage women's health startups have dropped 16% compared to 2021 levels. More: - The SVB report said lower valuations "discount is applied to women's health companies regardless of stage or focus area."
- The reasons behind this undervaluation could be the limited research in women's health and the fact that this industry is still in its nascent stages.
- The sector bagged 6% of the overall digital health venture funding in 2022.
- Women's digital health sector raked in only $1B out of the $29.3B deployed in the digital health sector in 2021.
Zoom out: - Despite accounting for 80% of household healthcare decisions, investments in women's health technology remain disproportionately low as startups continue to be viewed as a niche field.
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| 4 | | San Francisco, Calif.-based fintech startup Bolt Financial will lay off 29% of its workforce, impacting around 100 employees. This is Bolt's third round of layoffs in less than two years. More: - Bolt laid off 185 employees in May 2022 and another 50 in Jan. 2023.
- The Founders Fund and BlackRock-backed startup was valued at $11B at its peak.
- However, in recent times, the firm has faced several challenges, including a probe by the SEC, the abrupt departure of founder and CEO Ryan Breslow, and a lawsuit brought on by major client Authentic Brands Group.
- Bolt has raised $982.1M in total funding to date, the last of which came in through a $355M Series E round in Jan. 2022.
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| 5 | | ABN AMRO is acquiring Dutch neobroker startup BUX for an undisclosed sum. The acquisition will help ABN AMRO bolster its presence in the retail investor sector and solidify its number one position in the Netherlands. More: - BUX, which served almost 500,000 clients across eight countries, recently laid off 40% of its staff and exited the U.K. market.
- The startup had raised $116M in total funding from investors, including a €67M ($73.04M) Series C round, which saw participation from ABN AMRO in 2021.
- Other notable backers that invested in the firm include Tencent, Prosus Ventures, and HV Capital.
- Reports circulated earlier this year that Germany's N26 was planning to acquire BUX for about $100M.
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| 6 | | Pieter Pot, the Dutch startup that delivers groceries in plastic-free packaging, has declared bankruptcy. The Dutch court announced the official decision on Thursday after declining an extension for Pieter Pot's alternative rescue and financing plan. More: - The Dutch court was concerned about Pieter Pot's ability to repay its €1.8M ($1.94M) debt.
- Pieter Pot was about to launch a crowdfunding campaign to repay creditors, which most creditors favored except for the Pension Fund for the Food Sector.
- The startup owed approximately €80,000 ($86,300) in unpaid pension premiums.
- Pieter Pot had raised €12M ($12.94M) from investors through three funding rounds.
- However, the firm failed to achieve profitability.
- Despite undertaking cost-cutting measures and selling off a majority stake to De Delicatessenfabriek, the firm continued to struggle financially.
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| 7 | | Quick Hits: - The Kubernetes Cookbook is your comprehensive companion equipping you with the knowledge and techniques to harness the full potential of Kubernetes.*
- Logistics startup Pipedream Labs is developing its first pilot project for underground last-mile delivery in Peachtree Corners, northeast of Atlanta.
- Sunset and Simple Closure are helping startups wind up operations by taking care of furniture sales, filing final taxes, and carrying out other mundane work.
- Salesforce-backed cybersecurity Oleria is reportedly looking to raise $30M in fresh funding, per a new SEC filing seen by GeekWire.
- Healthcare technology startup BrightPay Health Corp. reported that it is growing after relocating from Atlanta to Birmingham, Alabama.
- Hong Kong-based virtual insurance startup OneDegree raised an undisclosed sum from Dubai Insurance. The firm will use part of the funds to expand into UAE.
- Savvy billionaires are hedging their portfolios with farmland. New REIT goes public, and stock price increases 12.20% in its first quarter opening.*
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 | Analyst | | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | This newsletter was edited by Vibha Chapparike | |
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