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This week proved once again that the startup world is not homogeneous when it comes to risk. Let’s take a look.
The most interesting startup stories this week
Layoffs after an acquisition or controversy after a risky decision are not at all surprising, but there is more encouraging news on the innovation front.
Shrinking teamsItalian app company Bending Spoons is planning to lay off 75% of the staff at WeTransfer, the Dutch file transfer startup it acquired in July. This follows previous job cuts at other companies it has acquired: Evernote, Filmic and Meetup.
distorted viewsWarp, a payroll startup, found itself embroiled in controversy, eventually having one of its affiliate accounts on X rejected, because it appeared to be following an unusual — and dangerous — marketing strategy.
balanced mindSydney-based Neurode has developed a headband that uses mild electrical stimulation of the prefrontal cortex to treat symptoms of ADHD such as lack of focus. The company, which is still in a private trial, hopes its wearable headband will become a medical device approved by the US Food and Drug Administration.
Most Interesting Fundraisers This Week
The market is what it is, but fundraising is still happening — even if in some cases it’s a mix of equity and debt.
fake magicianBerlin-based food tech startup Formo has raised $61 million in a Series B funding round to continue scaling its dairy-free cheese production.
less paperFrankfurt-based startup Qualifyze has raised $54 million in a Series B funding round that it will use to grow, particularly in the US, and add more analytics and AI to its products, helping pharma companies control their supply chains.
Technology InsuranceNeat, a Paris-based insurance startup, has raised €50 million in debt and equity funding. Hedosophia is leading the Series A funding round.
smart catSmartcat, an enterprise-focused machine translation tool, has raised $43 million in a Series C funding round led by Left Lane Capital. The funding will help the startup grow its team and invest in its product, marketing, and sales.
Another roundFinally, a Miami-based AI-powered accounting and finance startup targeting small and medium-sized businesses has raised $50 million in Series B funding and secured a $150 million line of credit.
Top Venture Capital and Fund News This Week
OptionalLondon-based venture capital firm Atomico has raised $1.24 billion across two funds. One, Atomico Venture VI, will invest mostly in Series A rounds; the other, Atomico Growth VI, will be for Series Bs up until the IPO — and is meant for more risk-averse limited partners.
trackingAlpha Partners has announced a third $153 million fund that will double down on what was previously a novel idea — helping seed investors exercise proportional rights in later rounds by writing $5 million to $10 million checks alongside them.
Last but not least
In fact, the US legal environment is more fragmented than it might seem. Startups are learning this the hard way, with some being fined, and sometimes banned, by individual states. As TechCrunch’s Rebecca Szkutak points out, “The result is that state-level regulations need to be factored into founders’ business plans as early as possible, whether by investing in compliance software or hiring legal experts.”