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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

• Trump announced the launch of Stargate, a $500 billion AI initiative with OpenAI, SoftBank, and Oracle to build 20 data centers.

• OpenAI has launched Operator, a general-purpose AI agent capable of autonomously controlling a web browser to perform tasks.

• Trump extended the TikTok ban timeline while exploring a joint venture or regulatory changes to ensure US control as ByteDance negotiates with American investors.

• Stripe laid off 300 employees, mainly from product, engineering, and operations, but is planning to grow its workforce by 17% to 10,000 by 2025.

• Substack launched a $20 million accelerator to attract video creators while Flip unveiled a creator fund offering up to $100 million in equity and grants.

💸 Top Funding Rounds

• Databricks has announced the final closing of its Series J at $15.3 billion with Meta joining as a strategic investor.

• Google has invested an additional $1 billion in Anthropic to support the AI developer’s computing capabilities

• Sequoia Capital is reportedly leading a $300 million funding round for Harvey, a legal AI startup, potentially valuing it at $3 billion.

• ElevenLabs raised $250 million in Series C funding at a $3 billion valuation, led by ICONIQ Growth, to expand its AI voice technology business.

• Highnote secured $90 million in a Series B funding round led by Adams Street Partners to expand its embedded finance platform.

💰️ Notable Exits

• Divvy Homes is being acquired by Brookfield for around $1 billion after a challenging period for the startup due to rising mortgage rates.

• Israeli facial recognition firm Oosto, formerly AnyVision, has been acquired by Metropolis for $125 million, with most of the transaction paid in shares.

• Tom Brady’s NFT company Autograph merged with digital fitness company Future, with Brady joining Future’s board and co-chairing the company.

• ServiceNow has agreed to acquire Cuein, an AI-powered conversational data analysis provider backed by Khosla Ventures.

• Street Context was acquired by BlueMatrix to combine their intelligence platforms, integrating authoring, financial data, and consumption analytics.

🏦 About Investors

• Madrona Ventures closed its largest fund at $770 million to invest in AI, infrastructure, and early-stage startups, fueled by recent successful exits.

• Caffeinated Capital, led by Raymond Tonsing, is raising $400 million for its fifth fund, with $160 million already secured.

• California-based Foothill Ventures has closed its oversubscribed third fund at over $110 million to continue investing in seed and Series A rounds.

• VC firm Greylock appointed Mor Chen as partner to lead Israeli investments, expanding its Edge program to support local founders.

• Chris Young, head of Microsoft's M12 venture fund, resigned with no specific reason given for his departure.

📋️ Curated Lists

Explore the dynamic venture capital scene in Arkansas and discover how firms like A-Street Ventures, Cadron Capital Partners, Ingeborg Investments, and Tyson Ventures are fueling innovation and growth. From food tech to healthcare, these active investors are shaping the state’s entrepreneurial landscape and driving national success. Delve into the full article to uncover the key players, their portfolios, and the impact they’re making in Arkansas' thriving startup ecosystem.

🚀 Startup of the Week

Introducing our Startup of the Week 🏆

Harvey

Harvey, a San Francisco-based legal AI startup, is reportedly in talks to raise $300 million in a funding round led by Sequoia Capital, potentially doubling its valuation to $3 billion from $1.5 billion in 2024. Founded in 2022 by Winston Weinberg and Gabriel Pereyra, Harvey develops generative AI tools designed to assist law firms. The company has previously secured over $200 million from investors including the OpenAI Startup Fund, Elad Gil, and Kleiner Perkins, with Sequoia first backing Harvey in 2023. As competition in the legal AI space intensifies with players like EvenUp Inc. and Robin AI, this funding round would further cement Harvey’s position as a leader in the industry.

💼 Investor of the Week

Introducing our Investor of the Week 🏆

Madrona Ventures

Madrona Ventures, a Seattle-based venture capital firm founded in 1995, has closed its largest fund to date, raising $770 million. This significant fundraise, which surpasses its 2022 funds, comes amid a challenging market for venture capital, signaling strong confidence from limited partners. The firm’s recent successful exits, including the sales of Lexion to Docusign and Octo AI to Nvidia, have bolstered its reputation. Madrona plans to invest in AI applications across various sectors, from travel to life sciences, and in infrastructure startups that facilitate AI adoption. The fund will support around 30 early-stage companies and 12 later-stage startups. Madrona’s extensive portfolio includes tech giants like Redfin, Smartsheet, and Snowflake.

🤑 Opportunity Radar

Call for Applications: ChargeUp Accelerator

Apply to the ChargeUp Accelerator by January 27, 2025, and take your battery or energy storage startup to the next level. This six-month hybrid program offers $25,000 in funding, expert mentorship, and investor connections to help advance technology commercialization. Hosted at the Koffman Southern Tier Incubator in Binghamton, NY, ChargeUp provides access to cutting-edge research facilities, workforce training programs, and supply chain resources within the federally designated Battery Tech Hub. Don't miss this chance to join a thriving innovation ecosystem, start your application today and accelerate your path to success!