Archive — US — techcrunch
Startups Weekly: Enjoying the reprieve
This week's startup news highlights significant funding events and controversies, such as OpenAI's $500 million acquisition consideration and Colossal Biosciences' disputed $10.2 billion valuation. While startups like Nuro and Base Power successfully raised funds, others like Solid filed for bankruptcy. San Francisco's mayor is actively seeking ways to support local tech ventures amidst a challenging market environment.
Key points
- Mira Murati from OpenAI recruits advisers for AI startup Thinking Machines Lab.
- OpenAI considers a $500 million acquisition of io Products; former ally Elon Musk countersues OpenAI.
- Deel's head of communications exits amid controversies.
- Colossal Biosciences claims to have resurrected the dire wolf, but scientists dispute it.
- Lyst is acquired for $154 million, down from its previous $700 million valuation.
- Banking startup Solid files for Chapter 11 after a lawsuit by FTV Capital.
- Nuro raises $106 million but sees valuation drop due to market conditions and a pivot in strategy.
- Base Power raises $200 million led by major venture capital firms.
- Various other startups secured substantial funding rounds.
- San Francisco mayor engages with tech leaders to discuss city support.
Why it matters
- Reflects the ongoing volatility in the startup ecosystem as seen in 2023, where funding success varies widely.
- Highlights a shift towards technology that addresses planetary health and societal well-being, echoing 2025 IT trends focusing on sustainability.
- Similar to events leading up to the tech bubble bursts, involving major investments and potential legal ramifications.
Overall, the week showcased both resilience in certain sectors of the startup scene and challenges for others, reflecting the complexities of the current economic landscape as tech leaders seek support and adaptation strategies.