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Welcome to another edition of 🔍 Startup Researcher - North America, your essential digest delivering the latest news and premium insights on startups and venture capital across the region 🌎️

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📰 Important News

• OpenAI's new image generator went viral as users created Studio Ghibli-style images including historical events, sparking debate over AI ethics.

• Genetic testing firm 23andMe and vertical farming company Plenty have filed for bankruptcy, after raising billions of dollars in funding.

• In the Deel-Rippling corporate espionage case, accused payroll manager, Keith O’Brien, has agreed to cooperate with the Irish High Court.

• AI startup 11x, backed by a16z and Benchmark, is reportedly facing financial struggles and customer issues, with many early clients abandoning its service.

• Charlie Javice, founder of Frank, was found guilty of defrauding JPMorgan in a $175 million acquisition by inflating the the platform’s user numbers.

💸 Top Funding Rounds

• Fleetio raised over $450 million in Series D funding and acquired Auto Integrate, creating a combined business valued at over $1.5 billion.

• Mercury closed a $300 million Sequoia-led Series C round, doubling its valuation to $3.5 billion, with plans to expand its offerings.

• Cybersecurity startup Island raised $250 million in Series E funding, reaching a $4.8 billion valuation, more than quadrupling since October 2023.

• Aura raised $140 million in Series G funding at a $1.6 billion valuation to enhance its AI-powered online safety platform for families and individuals.

• Supira Medical raised $120 million in an oversubscribed Series E round to advance its percutaneous ventricular assist device for high-risk heart patients.

💰️ Notable Exits

• Elon Musk’s AI startup xAI has acquired his social media platform X in an all-stock deal, valuing xAI at $80 billion and X at $33 billion.

• Terrestrial Energy, a nuclear startup developing small modular reactors, went public via a SPAC merger, raising $280 million.

• Infinite Reality acquired Napster for $207 million to transform it into a social music platform with immersive tech, AI tools, and engagement features.

• Braze acquired AI decisioning company OfferFit for $325 million to enhance its customer engagement platform.

• Rev acquired SmartDepo to enhance its legal solutions by combining Rev’s accurate transcription with SmartDepo’s precise deposition summaries.

🏦 About Investors

• Emergence Capital has closed its $1 billion seventh fund to invest in B2B companies with a focus on AI.

• Pat Gelsinger, former Intel CEO, has joined venture capital firm Playground Global as a general partner.

• Israeli media giant RGE is launching a venture fund to invest in AI-driven content and media startups, aiming to support three to five startups annually.

• Amazon’s Alexa Fund, originally focused on voice startups, is now investing in areas like generative media, smart agents, and AI-enabled hardware.

• Celesta Capital hired former BDC Capital partner Charles Lespérance as its first Canadian partner to expand its deep tech investments in Canada.

🚀 Startup of the Week

Introducing our Startup of the Week 🏆

Fleetio

Fleetio, a Birmingham, AL-based fleet optimization software provider founded by Tony Summerville in 2012, raised over $450 million in Series D funding led by Elephant and Growth Equity at Goldman Sachs Alternatives. The company also acquired Auto Integrate, a maintenance authorization platform, creating a combined business valued at over $1.5 billion, which will serve over 8 million vehicles and process more than 13 million repair orders annually across North America. Fleetio, used in over 100 countries by 7,500 fleets, offers cloud-based solutions to manage vehicles, drivers, and assets, with a vast maintenance provider network to streamline outsourced repairs.

💼 Investor of the Week

Introducing our Investor of the Week 🏆

Emergence Capital

Emergence Capital, a San Mateo, California-based venture capital firm founded in 2003 by Gordon Ritter, Jason Green, and Brian Jacobs, has closed its $1 billion seventh fund to invest in B2B companies with a strong focus on AI. This marks the firm's first fundraise in nearly four years, following its 2021 close of a $575 million early-stage fund and a $375 million opportunity fund. Known for backing successful enterprise tech startups like Salesforce, Zoom, and Bill.com, Emergence sees AI as a generational investment opportunity, with long-time backer Stanford University praising its expertise in SaaS and software.

🤑 Opportunity Radar

Call for Applications: Y Combinator’s Summer 2025 Batch

Apply to Y Combinator’s Summer 2025 Batch by May 13, 2025, to accelerate your startup journey with one of the world’s most prestigious accelerators. The program runs from June to September in San Francisco, featuring in-person meetups, mentorship from experienced YC partners, and access to YC’s powerful alumni network. Selected startups receive $500,000 in funding immediately upon acceptance and benefit from exclusive investor connections. Don’t miss this chance to join a thriving community of founders—apply today!