| Here's a look at today's Startups briefing. - 🏭 SEC's new climate disclosure rule could create an opportunity for carbon accounting startups
- 🇫🇷 France awarded contracts to five startups to develop quantum computers
- 🚗 Uber taps into Revel's charging network in New York
Thank you. Karan
p/karan-chafekar | |
| 1 | | The Securities and Exchange Commission approved new climate and greenhouse gas emissions disclosure requirements for public companies. Per the new mandate, public companies will need to report their Scope 1 and 2 emissions. The new rules could create an opportunity for startups specializing in carbon tracking, accounting, and management. More: - Several startups emerged in recent years to leverage AI to automate and improve emission disclosures.
- Companies will be required to report Scope 1 emissions resulting directly from their operations and Scope 2 emissions from energy purchases.
Zoom out: - Environmental groups have dismissed the new climate disclosure requirements as they omit Scope 3 emissions, which encompasses emissions generated indirectly through their supply chains or customers' use of their products.
- Amazon, Ralph Lauren, Chevron, and Vanguard were among the group that supported Scope 3 disclosures, while it was opposed by Walmart, Fidelity, Gap, Southwest Airlines, BlackRock, and others.
- The group opposing the Scope 3 disclosures argued that Scope 3 emissions estimates are still inaccurate.
- A group of 10 states, including Georgia, West Virginia, and Alaska, filed a legal challenge to the rule.
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| 2 | | Five French startups received contracts from the nation's defense procurement agency to create the underlying technologies needed to help the country develop two universal quantum computer prototypes by 2032. What happened: The cumulative value of the contracts awarded was €500M ($545M). The five startups to receive contracts were Alice & Bob, C12, Pascal, Quandela, and Quobly. The move is a part of France's broader national quantum strategy announced three years ago with a goal to establish a competitive advantage in the field over other nations. Relevance: The ministry is aware of the importance of quantum computing advancements to the Armed Forces. It believes quantum computing will help with applications in cryptography, communications, threat detection, material discovery, and navigation in areas with weak GPS signals. 
What the numbers say: Investors are showing interest in the sector due to its potential to accelerate the speed of building AI models. VCs invested $1B in global quantum computing startups in 2023, per Pitchbook. Earlier this year, Quantinuum raised a $300M funding round led by JP Morgan Chase at a valuation of $5.3B. | | | |
| 3 | | Ride-hailing giant Uber Technologies will utilize Revel Transit's charging network in New York after inking a new partnership with the EV ride-hailing startup. The move is part of Uber's broader ambition to make all trips in the U.S., Canada, and Europe emissions-free by 2030. Eventually, Uber plans to be emission-free globally by 2040. More: - As part of the partnership, Uber is offering certain usage guarantees to Revel, in return for which the startup will offer an exclusive discount of 25% to Uber drivers.
- Revel plans to leverage this partnership to expand its presence in other major U.S. regions, including San Francisco, Los Angeles, Chicago, and Boston.
- The startup plans to raise $200M in capital to further expand its charging infrastructure.
- Currently, Revel has 54 fast charging stations in boroughs outside of Manhattan, with plans in place to increase that number to about 500 in New York and the San Francisco area through 2025.
Zoom out: - In a bid to improve the air quality in the city, the New York City and the Taxi & Limousine Commission proposed new rules forcing ride-hailing companies to use only zero-emission or wheelchair-accessible vehicles in six years.
Note: Inside.com founder and CEO Jason Calacanis is an investor in Uber. | | | |
| 4 | | French fintech startup Qonto acquired the accounting and financial automation services platform Regate. Financial details of the transaction were not disclosed. The acquisition will help improve Qonto's accounting automation features and expand its sales channels. More: - Qonto initially started out as an online business account and debit card provider for SMEs.
- Over the years, it diversified its product offerings by adding invoicing, expense management, bookkeeping, and payment reconciliation functions.
- The firm has over 45,000 customers across France, Germany, Italy, and Spain.
- It last raised a €486M ($529M) Series D round in 2022.
- Accounting automation software provider Regate last raised a €20M ($22M) Series A round in September 2022.
- It catered to 10,000 customers, including 6,000 of Qonto's existing clients.
Zoom out: - This is Qonto's second acquisition to date, following its acquisition of German competitor Penta.
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| 5 | | Steven Walchek launched a new AI startup called Liminal that helps companies in regulated industries use generative AI tools while safeguarding sensitive internal data and proprietary information. The firm has raised $3.15M by issuing SAFEs to High Alpha and Matchstick Ventures. More: - The startup caters to companies in regulated industries, such as healthcare, financial services, education, insurance, defense, and life sciences.
- Liminal claims its platform is being used by one of the world's largest pharmaceutical companies, one of the largest health systems in the U.S., and a few large and mid-sized banks.
- Walchek established Liminal after uncovering the regulatory compliance, corporate data security, and reputational risks for corporates using generative AI tools.
- Liminal's tool detects and desensitizes sensitive information when users use generative AI tools.
- After a response is generated by the AI tool, the platform can add back the sensitive information.
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| 6 | | Blockchain-based cryptography startup Zama SAS secured $73M in Series A funding led by Multicoin Capital and Protocol Labs. Zama will use the funding to expand its team and further develop its data privacy tools. More: - The firm has developed a fully homomorphic encryption, which enables blockchain and AI applications to compute on encrypted data.
- This innovative approach ensures that sensitive data remains protected from malicious attacks, even while it is in use.
- The startup is also building customized products for the AI, healthcare, financial services, and government security industries.
- Other investors participating in the round include Metaplane, Blockchange Ventures, VSquared, and Stake Capital.
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| 7 | | Quick Hits: - Sales teams at MongoDB, Warmly, and User Evidence are seeing 56% more pipeline from this simple framework.*
- Cyber-physical systems protection startup Claroty bagged $100M in growth funding from Delta-v Capital, AB Private Credit Investors, Standard Investments, Toshiba Digital Solutions, SE Ventures, and others. The firm claims it passed the $100M annual recurring revenue mark in 2023.
- Cloud security startup Sweet Security secured $33M in Series A funding led by Evolution Equity Partners. Investors participating in the round include Munich Re Ventures and Glilot Capital Partners.
- Razor Group acquired Amazon aggregator Perch for an undisclosed sum. The startup also raised an undisclosed Series D round led by Presight Capital. This is Razor Group's fourth acquisition after taking over Factory14, Valoreo, and The Stryze Group.
- Alliance of Angels plans to raise its third Innovation Fund from its network of nearly 200 angel investors. The firm aims to invest in 14 companies, primarily in the Pacific Northwest region.
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 | Analyst | | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | This newsletter was edited by Aaron Crutchfield | |
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