Our first StrictlyVC event of the year is happening (suddenly!) on Thursday, April 3, and it's going to be an amazing night. Taking place at the Premier Theater at the Letterman Digital Arts Center in San Francisco's Presidio, we're excited to spend time with our co-host in the evening, powerhouse VC Kirsten Green of Forerunner Ventures. We also have talks lined up with the buzzy prediction market Kalshi, whose CEO, Tarek Mansour, is joining us (we have all kinds of questions about its plans to integrate into brokerages). You can also catch Ethan Thornton, the 21-year-old CEO of Mach Industries, an L.A.-based defense tech company that's backed by Sequoia and looks poised for hypergrowth these next few years. (Thornton, who is already drawing comparisons to Palmer Luckey of Anduril, is working on a weapons factory, among other things.) And that's not all! Nab a seat while we still have these for readers.

Since the beginning of the year, Anthropic has grown its annualized revenue by 40% to $1.4 billion. The Information has the scoop here. 

Anthropic, often cast as an independent player in the AI race, has deeper ties to Google than previously known. TechCrunch has more here.

President Donald Trump today announced that he will instruct the U.S. government to charge any violent acts against Tesla dealerships as domestic terrorism. "You do it to Tesla, and you do it to any company, we’re going to catch you, and you’re going to go through hell," he warned. TechCrunch has more here. 

Meta is reportedly testing its own AI chips in order to lessen its dependence on Nvidia. TechCrunch has more here. 

“Every quarter we pull together a spreadsheet that we all type PortCo data into. There is a lot of back and forth - when did that board meeting happen? Where are the notes?”

- Ops team at a $30B Growth Fund

There’s a better way. Find out how.

By Marina Temkin

Silicon Valley has been captivated by the prospect of AI, not only as a productivity enhancer but also as a catalyst for creating successful companies with much leaner teams than in the past.

Stories abound of AI startups quickly reaching tens of millions in revenue with headcount as low as 20 people. With less overhead, some startups may be inspired to take less venture capital funding, especially at the earliest stages.

Terrence Rohan, an investor with Otherwise Fund who’s been investing in Y Combinator since 2010, says he’s noticing a “vibe shift” from some founders in the current batch of the famed accelerator.

He described how one founder felt about it on X last week: “People used to climb Everest and they needed oxygen. Today, people climb it without oxygen. I want to summit Everest and use as little oxygen (VC) as possible.”

This founder wasn’t just saying this because of lack of VC interest. The round was oversubscribed, Rohan said, meaning lots of VCs wanted in.

“Smart founder” was the reaction of Alexis Ohanian, the founder of VC firm Seven Seven Six and co-founder of Reddit.

More here.

Cartesia, a one-year-old San Francisco startup whose voice generation tool enables developers and businesses to integrate natural-sounding speech into applications such as virtual assistants, customer support, and content creation, raised a $64 million Series A round led by Kleiner Perkins, with additional participation from Index Ventures, Lightspeed, A*, Factory, Greycroft, Dell Technologies Capital, and Samsung Ventures. The company has raised a total of $91 million. Fortune has more here.

Celestial AI, a five-year-old startup based in Santa Clara, CA, that uses light to transfer data within and between chips to enhance performance and energy efficiency in AI data centers, raised a $250 million Series C1 at a $2.5 billion valuation. Fidelity Management & Research was the lead investor, with BlackRock, Maverick Silicon, Tiger Global Management, and Lip-Bu Tan as well as previous investors AMD Ventures, Koch Disruptive Technologies, Temasek, Xora Innovation, Porsche Automobil Holding, and The Engine Ventures also investing. The company has raised a total of $515+ million. SiliconANGLE has more here.  

Chainguard, a four-year-old startup based in Kirkland, WA, that specializes in securing software supply chains by providing hardened, minimal container images free from known vulnerabilities, is in the market to raise a $350 million round at a $3.15 billion pre-money valuation, roughly triple the valuation of a round it closed just last year. Kleiner Perkins is reportedly in talks to lead the deal. Bloomberg has more here. 

Cybereason, a 13-year-old Tel Aviv and San Diego company that uses AI-powered tools to monitor networks, detect malicious activity, and automate responses to security threats, raised a $120 million round while on the verge of bankruptcy, according to its CEO. The deal was led by SoftBank Corp., SoftBank Vision Fund 2, and Liberty Strategic Capital. Globes has more here. 

Dexterity, an eight-year-old startup based in Redwood City, CA, that develops industrial robots capable of tasks such as picking, packing, and palletizing, raised a $95 million round at a post-money valuation of $1.65 billion. Lightspeed Venture Partners and Sumitomo invested in the deal. The company has raised a total of approximately $300 million. TechCrunch has more here.

Lila Sciences, a two-year-old startup based in Cambridge, MA, that uses AI to analyzes data, design experiments, and direct robotic systems to carry out the experiments in life, chemical, and materials sciences, raised a $200 million seed round. Flagship Pioneering was the lead, with General Catalyst, March Capital, ARK Venture Fund, Altitude Life Science Ventures, Blue Horizon Advisors, the State of Michigan Retirement System, Modi Ventures, and a wholly owned subsidiary of the Abu Dhabi Investment Authority. More here.

Zolve, a five-year-old New York startup that provides banking services to individuals relocating to the United States, raised a $51 million Series B round and $200 million in debt. The deal was led by Creaegis, with HSBC, SBI Investment, GMO Venture Partners, and DG Daiwa Ventures as well as previous investors Accel, Lightspeed Venture Partners, Sparta Group, and DST Global also participating. TechCrunch has more here.

360 Privacy, a six-year-old Nashville startup that offers services such as monitoring and removing personal information from the internet and dark web to prevent identity theft and cyber threats, raised a $36 million round. FTV Capital provided the funding. More here.

Capture6, a four-year-old Berkeley startup that captures CO₂ and transforms waste brine from water treatment facilities into usable freshwater, raised a $27.5 million Series A round. Tetrad led the investment, with participation from ZER01NE Ventures, Energy Capital Ventures, Elemental Impact, Bridge Investment, Sopoong Ventures, and Third Derivative. More here.

DG Matrix, a three-year-old startup based in Raleigh, NC, whose power router integrates various energy sources such as the electrical grid, solar panels, wind turbines, and generator in order to optimize energy distribution and reduce costs, raised a $20 million round led by Clean Energy Ventures, with ABB, Cerberus Ventures, Chevron Technology Ventures, and Piedmont Capital also chipping in. More here.

Graphitic Energy, a seven-year-old startup based in Goleta, CA, whose technology converts natural gas into clean hydrogen and solid graphite, raised a $15 million Series A round from Energy Capital Ventures, Breakthrough Energy Ventures, and Trafigura. The company has raised a total of $65+ million. More here.

Infinite Uptime, a ten-year-old company based in Pune, India, that uses sensors and data analysis to detect potential issues in machinery before they lead to downtime, raised a $35 million Series C round led by Avataar Ventures, with StepStone Group and LGVP as well as previous investors Tiger Global and GSR Ventures also contributing. TechCrunch has more here.

Junction, a startup that provides an API to integrate data from over 500 health wearables and medical devices, raised a $18 million Series A round. Creandum was the deal lead, with Amino Collective as well as previous investors Y Combinator and Point Nine also stepping up. TechCrunch has more here.

Lynx, a four-year-old Boston startup that aims to make it easier for people to manage their healthcare expenses by offering a digital platform that connects health plans, employers, and financial institutions, raised a $27 million Series A round led by Flare Capital Partners and including CVS Health Ventures and McKesson Ventures as well as previous investors .406 Ventures, Obvious Ventures, and Frist Cressey Ventures. The company has raised a total of $44 million. MobiHealthNews has more here.

Norm AI, a three-year-old New York startup that develops AI agents to assist businesses in proactively identifying and mitigating compliance risks, raised a $48 million round led by Coatue, with Craft Ventures, Vanguard, Blackstone Innovations Investments, Bain Capital, New York Life Ventures, Citi Ventures, TIAA Ventures, and Marc Benioff also writing checks. The company has raised a total of $87 million. SiliconANGLE has more here.

Shoulder Innovations, a ten-year-old company based in Grand Rapids, MI, that designs and sells shoulder replacement implants, raised a $40 million Series E round led by U.S. Venture Partners, with Arboretum Ventures and Sectoral Asset Management as well as previous investors Gilde Healthcare Partners, Gilmartin Capital, and Aperture Venture Partners also taking part. More here.

Sola Security, a one-year-old Tel Aviv startup that offers pre-built security tools and an AI-powered, no-code studio for building tailored security systems, raised a $30 million seed round co-led by S Capital and Michael Moritz co-led, with S32 and Glilot Capital Partners also investing. TechCrunch has more here.

Supercritical Solutions, a four-year-old London startup that develops high-pressure, ultra-efficient electrolyzers to produce green hydrogen, raised an $18.1 million Series A round. Shell Ventures and Toyota Ventures co-led the round, with Al Mada Ventures, Blackfinch Ventures, Kibo Invest, Niterra / Global Brain, TOP Ventures (Thai Oil), Earth Ventures, and Alumni Ventures as well as previous investors Lowercarbon Capital and Anglo American Platinum also piling on. ESG Today has more here.

Synctera, a five-year-old San Francisco startup that enables companies to build, launch, and scale financial products such as bank accounts, debit cards, and payment methods, raised a $15 million Series A extension co-led by Fin Capital and Diagram and joined by previous investors Lightspeed Venture Partners, NAventures, Banco Popular, Mana Ventures, Evolution, True Equity, and 1st and Main. The company has raised a total of $94 million. TechCrunch has more here. 

Tomo Mortgage, a five-year-old startup based in Stamford, CT, that uses AI to offer mortgages to consumers, raised a $20 million Series B round. Investors included Progressive Insurance as well as previous investors Ribbit Capital, DST Global, and NFX. The company has raised a total of $130 million. More here.

Trust & Will, a seven-year-old San Diego startup that offers an online platform for creating estate planning documents such as wills and trusts, raised a $25 million Series C round led by Moderne Ventures, with Northwestern Mutual Future Ventures, UBS, and Erie Insurance also pitching in. CNBC has more here.

Worth, a one-year-old startup based in Orlando, FL, that aims to aims to provide SMBs with services such as cash flow management, expense tracking, and financial forecasting, raised a $20 million seed round led by TTV Capital, with Ingeborg, Florida Funders, Deep Work Capital, and Florida Opportunity Fund also joining in. TechCrunch has more here. 

Lexroom.ai, a two-year-old Milan startup that employs AI to assist legal professionals in conducting research and drafting legal documents efficiently, raised a $2.2 million seed round. Entourage led the financing, with support from Verve Ventures, Vento Ventures, and Banyan Ventures. EU-Startups has more here.

Liminal Experiences, a three-year-old Los Angeles startup that leverages AI to enable users to design immersive worlds, develop unique characters, and collaborate on adventures with friends, raised a $5.8 million seed round. Investors included BITKRAFT Ventures, Riot Games, and OTK Media Group. More here.

pgEdge, a three-year-old startup based in Alexandria, VA, that offers a distributed version of the PostgreSQL database designed to enhance data availability and reduce latency by allowing multiple active database instances across different locations, raised a $4 million round. Akamai Technologies and Qube Research & Technologies as well as previous investors Rally Ventures and Sands Capital invested in the deal. The company has raised a total of $23 million. More here.

Podqi, a one-year-old San Francisco startup whose AI-powered platform is designed to help brands protect their intellectual property by automating the detection of infringements, initiating takedown requests, and seeking compensation, raised a $3.2 million seed round. General Catalyst was the deal lead, with Soma Capital and Afore Capital also chiming in. More here.

Reshape Energy, a one-year-old Munich startup that assists commercial property owners and tenants across Europe in reducing energy costs and achieving sustainability goals, raised a $5.5 million round. PostScriptum Ventures and Vireo Ventures invested in the deal. TechCrunch has more here.

Thanks, a two-year-old Sydney and New York startup that operates an advertising network focused on post-purchase interactions that allows businesses to display targeted offers to customers at checkout, raised a $2.6 million seed round. Investors included Peak XV Partners, Founder Collective, and Side Stage Ventures. More here.

Unvale, a four-year-old Chicago startup that enables illustrators, writers, and storytellers to build their stories incrementally by sharing characters, concept art, maps, and events, raised a $1.8 million pre-seed round. Antler, Graham & Walker, Ganas Ventures, GFR Fund, LongJump VC, Network Ventures, and Vitalize Angels invested in the deal. More here.

Uthana, a two-year-old Los Angeles startup that offers an AI-powered platform enabling users to create 3D character animations quickly and easily, raised a $4.3 million round led by IA Ventures, with Andreessen Horowitz, Acequia Capital, Cursor Capital, Hustle Fund, MetaVision, and JonesTrauber also joining in. More here.

When AI startups reach billion-dollar valuations in months and market conditions can shift overnight, traditional due diligence approaches are pushed to their limits. VCs are challenged to validate complex technologies, assess business model sustainability, and pick out the highest quality deals amid the hype.

Join this webinar to see how Vanessa Larco, former Partner at New Enterprise Associates has evolved her due diligence process and the investments she’s considering to support the next generation of innovative companies.

Hinge Health, a 10-year-old company that provides virtual musculoskeletal care, has filed to go public. Hinge, which has raised a total of $828 million, last raised a $400 million Series E in October, 2021, at a $6.2 billion valuation; the leads were Tiger Global and Coatue Management. TechCrunch has more here. 

In addition to warning against violence at Tesla dealerships (see Top News above), President Donald Trump praised Tesla CEO Elon Musk at a White House event today and said he would purchase a Tesla himself. A photographer from Getty Images captured an image of Trump's notes. The Daily Beast has more here. 

At SXSW, entrepreneur and Shark Tank co-host Mark Cuban warned the audience about seeing artificial intelligence as the be-all and end-all. "AI is never the answer," he observed. "AI is the tool." TechCrunch has more here. 

A Columbia Journalism Review study found that Grok provided incorrect citations of news articles 94% of the time, and other AI search engines did not fare much better. More here. 

Based on current prices, the recently unveiled Bitcoin Act sponsored by six Republican senators would authorize the federal government to buy over $80 billion worth of Bitcoin. Decrypt has more here. 

Now, OpenAI is aiming to put the literati out of business. (Not really, but sort of.) TechCrunch has more here. 

The New Yorker will no longer write about "e-mails" in your "in box" that you access on "the Internet" through a "web site."

King Charles has a playlist.

A mahjong attaché case.