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| Hey Insiders, Today's newsletter covers: - 🏦 Metrofibre's $131M debt funding
- 👥 Twiga's layoffs
- 🤝 T72 Club's acquisition of Nickelytics
If you find this newsletter useful, please share it with your friends and colleagues. Thank you. Karan
p/karan-chafekar | |
| 1 | | Fiber optic networks company Metrofibre raised €120M ($130.6M) in debt financing from a consortium including ING, SEB, and Kommunalkredit Austria. Metrofibre plans to use the funds to increase high-speed internet connectivity in the Essen region of Germany in collaboration with fiber operator Ruhrfibre. More: - Metrofibre was founded in 2022 and focuses on developing open fiber optic networks for urban areas, where Internet service providers can connect to.
- The Essen project would connect approximately 150,000 households, including hospitals, public institutions, and businesses.
- The company previously raised a private equity round of an undisclosed amount led by DIF in Nov. 2022.
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| 2 | | Kenyan B2B e-commerce startup Twiga is laying off 283 employees. The layoffs will lower its current employee strength of 850 workers by 33%. What happened: In addition to the layoffs, the startup shuttered its in-house delivery division and closed 10 distribution centers to make the organization "lean, agile, and cost-effective." In place of its internal delivery setup, Twiga has transitioned to utilizing its logistics marketplace to collaborate with independent truckers, which is expected to enhance the startup's operational flexibility. Relevance: Twiga has raised $157M in total funding to date. Notable backers include Creadev, IFC Ventures, Goldman Sachs, and Wamda Capital. 
What the numbers say: Global tech organizations laid off 224,503 employees from the start of this year until mid-August, per Layoffs.fyi. Other B2B e-commerce platforms Copia and MarkeForce, also downsized their operations. | | | |
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| 3 | | Private equity firm T72 Club is acquiring advertising technology startup Nickelytics for an undisclosed sum. Judah Longgrear will continue his role as the CEO. With the backing of T72, Nickelytics expects to build out its business development team and scale internationally. More: - The new capital injection will allow the startup to pursue expansion into the digital rooftop advertising space.
- Longgrear said, "You get to a certain point and ask 'what's next,' and the chemistry with T72 just made a lot of sense."
- Additionally, the firm intends to bring the printing production in-house.
- Previously, Nickelytics had raised $1.5M from investors and a crowdfunding campaign.
- The firm was backed by VC firm BDev Ventures.
- Nickelytics crossed $1M in annual recurring revenue and is on track to double it in the current year.
Q: What are the drawbacks of being acquired by a private equity firm? Let us know here. | | | |
| 4 | | Microbiome testing startup Viome raised an $86.5M Series C led by Khosla Ventures and Bold Capital. This brings the Bellevue, Washington-based startup's total raised to $175M. More: - Viome is launching the sale of gut-health testing kits at 200 CVS locations and online.
- The kits use mRNA sequencing and AI to analyze chronic disease markers, giving a personal score based on a dataset validated by peer-reviewed papers.
- The startup's CEO, Naveen Jain, confirmed Viome plans to acquire companies in a similar sector for personalized products such as skin cream and toothpaste.
- Viome also has a compounding pharmacy that provides supplements based on the results.
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| A message from our sponsor, Inside.com. |  | | Learn from the best in the AI industry. An Inside peek at who's speaking at our event! We're stoked to reveal the first set of confirmed speakers for Meet Our Fund 5 - Building and Investing in AI! These industry leaders are ready to share their wealth of knowledge and experience, and we can't wait for you to learn from them. - John Hill, TechStars
- Eric Zhu, CEO of Aviato
- Andrea Wang, Partner at General Catalyst
- Sheel Monet, Co-founder of Better Tomorrow Ventures
And this is just the beginning! We have a host of other industry leaders who will be sharing their insights at our event. Stay tuned for more speaker announcements in the coming weeks. Don't miss out on this unique opportunity to learn from the best in the business. Secure your spot today here! Event Details: Date: October 16-17, 2023 Location: San Francisco, CA (for in-person attendees) OR YouTube (for livestream viewers) Time: 9:30am - 4:00pm PT Registration Link: https://meetourfund.com/ Hope to see you there 🥳 | |
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| 5 | | Ghost, a B2B online marketplace for surplus inventory, raised a $30M Series B led by Cathay Innovation. The startup claims it surpassed 1,000 members, and inventory increased by 500% since its $20M Series A in July 2022. More: - "We've spent a ton of time educating brands and retailers that data and technology can make their process and their lives easier," said Dee Murthy, co-founder of the startup.
- Ghost plans to use the funds to hire product, engineering, and design roles, in addition to U.S. expansion and launches in Asia and Europe.
- The new round brings the startup's total to $68M.
- Series B included the participation of Union Square Ventures, Eniac Ventures, and Equal Ventures.
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| 6 | | Cryptocurrency startup Glow Token LLC has taken legal action against cryptocurrency exchange Crypto.com. The startup sued the latter for breach of contract, negligent infliction of emotional distress, fraudulent inducement, negligent misrepresentation, vicarious liability, and unjust enrichment. More: - Imposters posing as employees of Crypto.com duped Glow Token's CEO Bryan Lawrence of $250,000 and 1 BTC earlier this year.
- Lawrence has sued the exchange since he alleges that the mishap occurred after the failed listing of Glow Token's FLARE token.
- Glow Token's legal team asserts that either Crypto.com's own employees or malicious actors were responsible for compromising the exchange's internal communications.
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| 7 | | 
Last week, we asked our startups community, "Is the 'fail fast, fail often' mantra a practical approach for startups, or does it inadvertently encourage recklessness?" Here are some highlighted responses we received: - Mehul Kamdar (p/kamdarmehul), CEO of IIS USA, answered: "In my opinion, it is irresponsible, reckless, and unethical. Most entrepreneurs raise money to support their efforts from external sources. For example, this could be money from a pension fund. How ethical is it, in a sense, to gamble with money that might pay your grandparents' pension?"
- Dave Poku (p/davepoku), Founder of Lumacart, answered: "I think in our haste to achieve success, be it product/market fit or otherwise, the "fail fast" mantra causes those who adopt it to try and enter every "rabbit hole" and without a steady advisor, this behavior leads to a death spiral, with words: "I started and failed" being glorified again. IMO starts ups, at least the great ones don't fail and their missions at the time of PMF or success, however it is being measured, have the same mission or slightly modified version of the mission. Tortoise over hare for me, definitely."
Join the conversations at Inside.com, and we may shout out your name and business or contact you for more! ⭐️ | | | |
| 8 | | Quick Hits: - Toptal's world-class talent lets you future-proof your business with their experts in blockchain, AI, and software development.*
- Qualifyze, a German startup offering end-to-end compliance solutions for the pharmaceutical industry, raised $12M in fresh funding at a $100M valuation. H14 SpA, HarbourVest Partners, and HV Capital provided the funding.
- Ocado-backed robotic chef startup Karakuri was sold for £350,000 (~$445,700). The startup had raised £13M ($16.5M) from investors.
- Indian early-stage VC firm Veda VC held the first close of its fund at $18M, against a target of $30M. The firm intends to invest between $250,000 and $1.25M in consumer internet, SaaS, fintech, and deeptech startups.
- Rocket engine and space vehicle maker Lesath International Inc. is looking to close a $2M seed funding round. Additionally, the firm has applied for a $2M grant from the National Science Foundation.
*This is sponsored content. | | | |
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INSIDE STARTUPS LEADERBOARD (7 DAYS) |
 | Analyst | | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot.
Nicolas is a Sr. Analyst at Inside, covering startups and transportation trends. He is an avid map maker and data nerd. Nicolas has worked in the shared-scooter space, as well as advised e-bike and moped start-ups. | | This newsletter was edited by Vibha Chapparike | |
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