Slippery Slope

Global Venture Funding Feels The Pinch in April, 3one4 Capital Raises $200 Million for Fourth Fund, and Impact Nano Scores $32 Million for Chip Materials.

Author

Adam from VC Brags
May 08, 2023

Welcome Shareholders,

In this daily edition of the Brags Newsletter, weā€™ll cover how Health & AI startups are defying the April Venture Slowdown. Also, 3one4 Capital raises $200 million to empower early-stage Indian startups, and a Startup looks to power up chip materials with its new funding.

So sit back, grab a snack, and enjoy!

Venture Today šŸ‘

  • Venture investors have continued to scale back in April 2023, as global funding reached $21 billion, marking a 56% decrease from the $47.8 billion recorded in a year-over-year comparison.

This marks the second-lowest monthly amount since venture capital began dipping below $30 billion in July 2022, indicating a continued downward trend in investments.Ā The slowdown has affected all funding stages, with seed funding experiencing a decline of over 50% year over year, early-stage funding dropping 48%, and late-stage funding witnessing the most significant decrease at 62%. Funding amounts experienced a month-over-month decline as well, largely attributable to the surge in late-stage funding in March 2023, which was bolstered by Stripe's substantial $6.5 billion investment.

Despite the slowdown, there were some bright spots, including Healthcare and AI startups. Healthcare emerged as the top fundraiser, amassing close to $5.7 billion, with significant early-stage investments in companies such as RNA-based medicine provider Orbital Therapeutics, medical robotics firm Noah Medical, and plant-derived drug developer Enveda Biosciences. Companies in the AI sector raised approximately $2.8 billion, accounting for nearly 13% of the total funding, featuring prominent investments in OpenAI, which secured an additional $300 million, CoreWeave with $221 million, Pinecone and AlphaSense each raising $100 million, and Replit obtaining $97 million.

Whoā€™s Raising?

  • Venture capital firm 3one4 Capital has raised $200 million for its fourth vehicle, targeting early-stage tech companies in India.

The Bangalore-based firm's fourth fund features a diverse investor base, including five major Indian banks, eight leading mutual fund operators, prominent US university endowment funds, and sovereign funds. Debuting at GIFT IFSC, India's inaugural international financial center, the fund is the first offshore vehicle there. Since its March closing, it has supported five deals.

3one4 Capital, primarily targeting early-stage ventures in areas including direct-to-consumer tech, media, content, fintech, deep technology, SaaS, and enterprise automation, currently oversees approximately $750 million in AUM. Its diverse portfolio includes Darwinbox (HR platform), Open (B2B neo bank), Jupiter (consumer neo bank), Licious (D2C meat brand), local social networks Koo and Lokal, Kuku FM (entertainment service), Raise Financial (fintech), and gaming firm Loco.

Startup of the Day

  • Massachusetts-based Impact Nano, a startup specializing in chemicals for the semiconductor industry and beyond, has just raised $32 million from investors like Intel Capital and Goldman Sachs Asset Management.

The company will allocate the funds to build out its Massachusetts facility and workforce, expediting material development initiatives while upholding safety in manufacturing, material development pipeline, storage, and distribution capabilities. In addition to the new funding commitments, Intel Capitalā€™s managing director, Sean Doyle, will join the companyā€™s board of directors.

Impact Nano develops innovative methods for producing chemicals essential to chip manufacturers. The company concentrates on enhancing chemical purity, sourcing abundant and ethically-compliant raw materials, and adopting eco-friendly processes. While it did not disclose its current clients, Impact Nano revealed its products play a crucial role in the extreme ultraviolet lithography (EUV) process in creating cutting-edge chips.

Fresh Finds

  • Kaleido helps users record and compile user insights from various sources, such as manual entries, Slack integration, or feedback repositories, to create a comprehensive understanding of user needs and characteristics.

  • Kaleido utilizes AI to efficiently and intelligently help users identify patterns, allowing for the consolidation of numerous feedback points into larger, cohesive projects.

  • Kaleido enables users to evaluate and compare projects based on factors like monetary impact, user reach, and seasonality, supporting data-driven product decisions.

Memes and Other Things

The Headlines

How Was Today's Newsletter?

Give us your honest opinion. We really don't mind.