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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 🌎️

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📰 Important News

• Three crypto industry groups are suing the IRS over new rules requiring DeFi entities to report customer information, arguing that it infringes on privacy rights.

• Uber CEO Dara Khosrowshahi resigned from the board of autonomous vehicle startup Aurora to focus on his role at Uber.

• Sameer Singh, TikTok's North America head of ad sales, is stepping down amid growing pressure over a potential U.S. ban set for January 19.

• New York-based Level has shut down after a failed acquisition, with its CEO informing customers that benefits plans will end in January 2025.

• OpenAI has missed its 2025 deadline for delivering Media Manager, a tool intended to let creators opt out of AI training data.

💸 Top Funding Rounds

• Electra secured $180.4 million to develop a cleaner method of purifying iron using electricity, aiming to reduce steelmaking's carbon emissions.

• Valsoft raised $150 million in a growth equity round to fund its continued expansion and acquisition of vertical software companies.

• Rembrand closed $23 million in Series A funding led by super{set}, with participation from The Trade Desk, Naver, and others.

• Fold, Inc. raised $20 million in convertible note financing from ATW Partners to support growth and product development.

• Khenda secured a $750,000 investment led by Simya VC to accelerate global scaling and enhance sales efforts in North America.

💰️ Notable Exits

• Nvidia completed its $800 million acquisition of Israeli AI company Run:ai after receiving US DOJ and European Commission approval.

• Thomson Reuters acquired tax automation company SafeSend for $600 million to enhance its tax and accounting solutions.

• Later acquired Mavely for $250 million to boost its full-funnel influencer marketing capabilities, empowering creators to maximize earnings.

• Bench, a VC-backed accounting startup that abruptly shut down, will be acquired by Employer.com, which plans to revive the platform.

• Trane Technologies acquired BrainBox AI to integrate its AI-driven HVAC solutions, aiming to reduce carbon emissions and energy use in buildings.

🏦 About Investors

• Tacora Capital raised $268.7 million for its second fund to offer venture debt to capital-intensive startups, continuing its focus on flexible financing solutions.

• Nisha Desai, founder of Andav Capital, is suing PayPal for discrimination, alleging exclusion from its diversity program due to her Asian background.

🚀 Startup of the Week

Introducing our Startup of the Week 🏆

Electra

Electra, a clean iron company based in Boulder, Colorado, has raised $180.4 million to advance its innovative method of purifying iron using electricity, as part of a funding round targeting $256.7 million. Founded in 2020 by Sandeep Nijhawan and Quoc Pham, Electra's patented low-temperature electrochemical process converts low-grade iron ore into high-purity metallic iron while dramatically reducing carbon emissions in steel production. By leveraging renewable energy and proven electrochemical techniques, the company aims to address the steel industry's significant carbon footprint, which accounts for 10% of global emissions, and pave the way for a more sustainable future.

💼 Investor of the Week

Introducing our Investor of the Week 🏆

Tacora Capital

Tacora Capital, founded in 2021 and based in Austin, Texas, is an investment firm led by Keri Findley, a former partner at the hedge fund Third Point. Specializing in venture debt investments, Tacora has established itself as a key provider of alternative financing solutions tailored to startups. The firm recently raised $268.7 million for its second fund, aiming to support capital-intensive businesses, particularly in fintech and hardware sectors. This builds on the success of its inaugural $350 million fund in 2022, which featured a substantial investment from Peter Thiel, though his involvement in the latest fund remains undisclosed. Tacora focuses on delivering non-dilutive financing backed by strong, specific assets of well-positioned companies, addressing the increasing demand for flexible funding options without compromising equity ownership.

🤑 Opportunity Radar

Call for Applications: Y Combinator Spring 2025

Apply to the Y Combinator Spring 2025 Batch by February 11th, 2025 to join one of the world’s most prestigious startup accelerators. The batch, held in San Francisco from April to June 2025, offers access to $500,000 in funding, top-tier mentorship, networking opportunities, and a vibrant community of founders. Participants will work closely with experienced YC General Partners, attend weekly meetups, and gain insights from renowned startup leaders like the founders of Airbnb and Stripe. Don’t miss the chance to secure funding and accelerate your startup journey—apply now and unlock lifelong connections within YC’s powerful alumni network.