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| Here's a look at today's Startups briefing. - 🛰️ Spacetech startups urge the government to streamline regulations.
- 🏛️ Byju's Alpha unit was put under Chapter 11 bankruptcy.
- 🤝 Cantaloupe acquired payments startup Cheq.
We have also rounded up the top early-stage funding rounds of this week. Thank you. Karan
p/karan-chafekar | |
| 1 | | CEOs of spacetech startups Orbit Fab and True Anomaly are urging federal agencies to modernize and streamline satellite licensing regulations. The executives cautioned that the U.S. risks impeding its emerging space capabilities if the rules fail to keep pace with the industry advancements. More: - While the National Oceanic and Atmospheric Administration has reduced the remote sensing licensing process from months to weeks, the executives have called on the administration to introduce more changes to support the emerging space industry.
- On-orbit refueling startup Orbit Fab has yet to encounter regulatory challenges but might run into it when it tries executing proximity operations and docking maneuvers, per CEO Daniel Faber.
- Meanwhile, orbital surveillance firm True Anomaly is running into U.S. export restrictions under the International Traffic and Arms Regulations.
- CEO Even Rogers said the firm is running into challenges "where a Swiss company builds a spacecraft in the U.K. and wants to dock with a U.S. spacecraft."
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| 2 | | VCs deployed $631.8M in early-stage North American startups this week between Jan. 27 and Feb. 2, per Crunchbase data. Biotech startups raked in 19% of the funding this week. Healthcare, AI, and enterprise software startups nabbed 18%, 13%, and 8% of the financing, respectively. 
Here are the top five largest rounds announced this week: - Clinical-stage biotech company Cour Pharmaceuticals bagged $105M in Series A funding. Lumira Ventures and Alpha Wave Partners co-led the funding, with participation from Roche Venture Fund, Pfizer, Bristol Myers Squibb, Angelini Ventures, and the JDRF T1D Fund.
- Kleiner Perkins led a $65M Series B funding into coding assistant startup Codeium. Greenoaks and General Catalyst participated in the round, which valued the firm at $500M.
- Comprehensive in-house care services provider Accompany Health launched today with $56M Series A funding. Venrock, ARCH Venture Partners, IVP, Granite Capital Management, and Evidenced provided the funding.
- Software usage-based billing platform Metronome raised $43M in Series B funding led by NEA. The round saw participation from Andreessen Horowitz and General Catalyst.
- Fintech startup Portal emerged from stealth with a $34M seed funding round from Coinbase Ventures, Arrington Capital, OKX Ventures, and Gate.io.
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| 3 | | A court-appointed agent put Indian edtech startup Byju's unit Alpha Inc. into Chapter 11 bankruptcy. Alpha's CEO Timothy Pohl said the company does not have enough capital to keep fighting with its parent company, which defaulted on a $1.2B debt facility. More: - Alpha also plans to sue a Florida-based hedge fund that allegedly helped Byju's hide more than $500M cash from creditors, per the bankruptcy filing.
- The bankruptcy comes a day after a consortium of investors requested a shareholders' meeting to change Byju's management and remove founder Byju Raveendran from leadership roles.
- On Thursday, one of Byju's key shareholders, Prosus, joined the call to oust Byju's management and revamp the board.
- Byju's responded by calling the move an "opportunity to conspire" and emphasized that the "shareholder's agreement does not give them the right to vote on CEO or management change."
- The press release also stated that the firm had received about 100% of commitment for its $200M rights issue.
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| 4 | | Philadelphia-based self-service retail payments company Cantaloupe Inc. acquired point-of-sale payments startup Cheq for an undisclosed sum. Cantaloupe will leverage the acquisition to expand its technology offering and provide new innovative technology to its customer base. More: - Cheq provides point-of-sale software to sports stadiums and entertainment venues.
- Cheq has raised $13.3M in total funding in 2022, including a $8M seed round.
- Notable investors include Tiger Global, WestRiver Group, and Harvard's Yard Ventures.
- Last year, the startup acquired Bite of Seattle out of receivership for $90,000.
- Cantaloupe increased its revenue by 8% to $62.7M in the first quarter of fiscal 2024.
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| 5 | | CVC Capital Partners-backed perfume retailer Douglas is gearing up for an IPO listing, which could happen as early as this month, sources informed Bloomberg. The German startup plans to raise about €1B ($1.1B) through its public debut. Douglas intends to use the proceeds to pay down debt. More: - CVC Capital reportedly plans to sell a portion of its stake at the upcoming IPO listing.
- However, in a bid to ensure the listing is a success, the firm is also thinking about buying unsold new shares.
- Douglas reported adjusted earnings of €725.9M ($790M) against revenue of €4.1B ($4.46B) in the 12-month period before September. 2023.
- Per an earlier Bloomberg report, CVC was aiming for a €7B ($7.6B) valuation for the startup.
- Douglas hired Goldman Sachs Group, Citigroup, Deutsche Bank, UniCredit, and UBS Group to lead the offering.
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| 6 | | Automated tire-changing robotics system startup RoboTire filed for Chapter 7 bankruptcy in the Court of Delaware. The firm named 78 unsecured creditors in its bankruptcy filing. It had $12.7M in liabilities against $12.3M in assets. More: - The startup is developing a six-axis robotic arm to change tires.
- RoboTire installed its first system at a Discount Tire facility in Fountain Hills, Arizona, in 2022.
- It had just finished installing its fifth system three months before the bankruptcy filing.
- RoboTire last raised a $7.5M Series A round led by the Reinalt-Thomas Corporation in 2022.
- Per the filing, the firm had signed a contract worth $348,277 with Luke Air Force Base in Arizona.
Zoom out: - In a Chapter 7 bankruptcy filing, businesses must liquidate their non-exempt possessions and repay creditors.
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- Traveltech startup Kiwi.com has laid off 216 employees, or 18% of its staff. The news comes days after it inked a partnership with low-cost airline Ryanair.
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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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