Hello there,

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

If you haven't subscribed yet, now's the perfect time. Don't miss the opportunity to supercharge your understanding and stay ahead in this dynamic world.

Ready? Let’s get right into it.

📰 Important News

• Deepseek has taken the tech world by storm with two LLMs that rival leading American players’ models in performance, but are built at a fraction of the cost.

• US President Donald Trump announced working with several parties including Microsoft and Oracle for a potential acquisition of TikTok.

• X has partnered with Visa to power X Money’s wallet for person-to-person payments using Visa Direct.

• OpenAI has launched ChatGPT Gov to offer U.S. government agencies access to its AI tools with enhanced security and privacy features.

• Fintech startup Cushion has shut down due to challenges in achieving sustainable growth despite raising a $12 million Series A round in 2022.

💸 Top Funding Rounds

• Helion raised $425 million in its Series F funding round to accelerate fusion power development, with new investors including Lightspeed and SoftBank.

• UVeye secured a $191 million extension to its 2023 Series D round, led by Toyota’s Woven Capital, to scale its AI-powered vehicle inspection systems.

• ElevenLabs closed a $180 million Series C round at a $3.3 billion valuation to compete with companies like OpenAI in text-to-speech technology.

• Atalanta Therapeutics raised $97 million in a Series B round to launch clinical trials for its RNAi therapies targeting epilepsy and Huntington’s disease.

• AI startup Clay achieved unicorn status with a $40 million raise at a $1.25-billion valuation, doubling its value in under a year.

💰️ Notable Exits

• Tenable is acquiring Israeli cybersecurity company Vulcan Cyber for $150 million to enhance its security exposure platform with Vulcan's technology.

• 1X acquired Kind Humanoid to strengthen its humanoid robotics efforts with a focus on AI-driven general intelligence and humanoid design.

• CHEQ acquired Deduce to bolster its cybersecurity platform by integrating a patented identity graph for real-time detection of AI-generated identity fraud.

• 15Five acquired Kona, an AI-powered remote manager coach, to integrate manager enablement into native workflows like Slack, Zoom and Google Meet.

• CYE has acquired Solvo's cloud security technology, including CSPM and CIEM capabilities, to enhance its Hyver platform.

🏦 About Investors

• 8VC, led by Joe Lonsdale, is raising nearly $1 billion for its sixth fund, targeting investments in defense tech, health, and life sciences.

• Sarah Guo's AI-focused venture firm Conviction Partners adds Mike Vernal as a General Partner and raises a $230 million fund, more than doubling the size of its debut fund with strong investments in AI startups.

• Geek Ventures, founded by Ihar Mahaniok, is raising a second fund after successfully backing early-stage immigrant founders, with Fund II raising $9 million so far following its debut $23 million fund.

📊 Investment Highlights

Despite a challenging 2024 marked by global economic headwinds, Canadian startups are still securing impressive funding rounds, proving the country's resilience as an innovation hub. From AI-powered solutions like Cohere to breakthroughs in electric vehicle infrastructure with FLO, these companies are attracting millions to fuel their growth. Dive deeper into the article to discover the largest funding rounds across Canada's diverse tech landscape, explore how these investments are shaping industries like legal tech, autonomous driving, and blockchain, and get a closer look at the trailblazers driving the future of Canadian startups.

🚀 Startup of the Week

Introducing our Startup of the Week 🏆

Helion Energy

Helion Energy, based in Everett, Washington, is a prominent American fusion research company founded in 2013 by David Kirtley, John Slough, Chris Pihl, and George Votroubek. The company is focused on developing magneto-inertial fusion technology with the goal of producing clean, abundant energy. In its oversubscribed Series F funding round, Helion raised $425 million, with new investors including Lightspeed, SoftBank Vision Fund 2, and a major university endowment, alongside continued support from existing investors like Sam Altman and Mithril Capital. This significant funding will allow Helion to scale up manufacturing in the U.S., accelerating the production of capacitors, magnets, and semiconductors to expedite the construction of the world’s first fusion power plant and future plants.

💼 Investor of the Week

Introducing our Investor of the Week 🏆

8VC

8VC, founded by Joe Lonsdale, is a prominent venture capital firm based in Austin, Texas, with a strategic focus on defense technology, health, and life sciences. Since its inception a decade ago, the firm has invested in over 600 companies, including high-profile names like Asana, Flexport, hims and hers, and Elon Musk’s The Boring Company. 8VC has gained significant attention for its defense investments, such as its early backing of Saronic, a robotic boat drone company, and Overland AI, which develops autonomous vehicles for national security applications. The firm’s sixth fund aims to raise nearly $1 billion, reflecting a 14% increase over its previous $880 million flagship fund closed in 2023.

🤑 Opportunity Radar

Call for Applications: Nordic Open Innovation Challenge 2024

Apply to the Nordic Open Innovation Challenge 2024 by February 17, 2025, and collaborate with leading Nordic corporations to drive innovation in quality control and sustainability. Open to startups and SMEs, this challenge offers over $35,000 in grants and funding support, mentorship, and co-development opportunities. Shortlisted participants will engage with industry leaders and gain access to state-of-the-art facilities to refine their solutions. Don’t miss your chance to contribute to building a more sustainable future. Submit your proposal today!