This is a weekly feature that runs down the week’s top 10 announced funding rounds in the U.S. Check out last week’s biggest funding rounds here.

It was a huge week for startups raising big. A company had to raise nine figures to make the list this week and five raised $200 million or more. It’s unlikely the short week next week will see these kinds of rounds, so don’t expect the same type of dollar figures in the next seven days.

1. Sila Nanotechnologies, $375M battery: A next-generation battery materials company led the way this week with a huge round. Alameda, California-based Sila, a next-generation battery materials company, announced it raised a $375 million Series G led by existing investors Sutter Hill Ventures and funds and accounts advised by T. Rowe Price Associates. The new cash will help the  company finish construction of its Moses Lake, Washington, plant — scheduled for the first quarter of next year — for the production of its Titan Silicon anode material. Founded in 2011, the company has raised $1.4 billion, per Crunchbase.

2. Formation Bio, $372M, biotech: Every week there is a big biotech raise and this week’s is really big. Formation Bio, an AI-enhanced pharma company, raised a $372 million Series D led by a16z. The New York-based startup, launched in 2016 as TrialSpark, has built AI-enabled platforms and processes to accelerate drug development and clinical trials — integrating large language models, AI models and applications throughout its platform. More and more biotech startups are using AI to help with their drug processes and investors are clearly taking note. Founded in 2013, the company has raised $528 million, per Crunchbase.

3. CData Software, $350M, data integration: A round that likely skipped under most folks’ radar was data connectivity company CData Software’s massive $350 million growth round from two big-named firms. The round was led by Warburg Pincus, with participation from Accel. The Chapel Hill, North Carolina-based company develops data products and connectivity solutions that provide access to live data from hundreds of on-premises and cloud applications. Founded in 2016, the company has raised $510 million, per Crunchbase.

4. (tied) Creatio, $200M, customer relationship management: Low-code and no-code startups are not seeing the funding they did a couple of years ago, but it clearly has not dried up completely. Creatio achieved unicorn status after landing a $200 million round led by Sapphire Ventures. The new cash, a minority investment, values the startup at $1.2 billion and will be used to help the company expand globally as it continues to grow revenue 50% year to year. The Boston-based startup is a developer of a no-code platform to automate customer relationship management and enterprise workflows. Not surprisingly, the company has an AI angle — creating a new generative AI copilot to help automate different marketing and sales tasks. Founded in 2014, Creatio previously raised $68 million in 2021 in a round led by Volition Capital, per Crunchbase.

4. (tied) Foodsmart, $200M, healthcare: Foodsmart locked down a massive $200 million round led by TPG’s global impact investing platform, The Rise Fund. The San Francisco-based company has developed a telenutrition and food benefits management platform. Founded in 2010, Foodsmart helps those facing chronic disease and food insecurity by partnering with health plans and providers to give patients access to affordable healthy eating options, virtual nutrition counseling and meal plans. Foodsmart has raised nearly $315 million, per Crunchbase.

6. Sidecar Health, $165M, healthcare: Healthcare is a mess — nearly everyone can agree on that. Sidecar Health, a health insurance company providing major medical coverage to businesses, closed a $165 million Series D led by Koch Disruptive Technologies to try to untangle it at least a little bit. The El Segundo, California-based startup offers plans that eliminate the need for prior authorizations, referrals and networks for doctors — allowing patients to go where they want. Sidecar Health believes a free-market approach will ensure healthcare is more accessible and affordable. Founded in 2018, the company has raised $328 million, per Crunchbase.

7. EvolutionaryScale, $142M, biotech: It was a big week for biotech. New York-based EvolutionaryScale, which has developed a large language model for creating novel proteins, raised a $142 million seed funding, led by Daniel Gross, Lux Capital and Nat Friedman. Amazon Web Services and NVentures, the venture capital arm of Nvidia, also took part in the round. While the company’s AI can be used for accelerating drug discovery, it also believes it can be used for other other applications such as breaking down plastics.

8. Etched.ai, $120M, semiconductor: Etched.ai became the latest startup to ride the wave of investor enthusiasm for AI chips. The San Francisco-based startup locked up a $120 million round led by Positive Sum and Primary Venture Partners. The startup is the creator of the transformer-specialized AI chip Sohu, used to train and deploy large language models that are the underpinning of generative AI. Etched has announced a partnership with Taiwan Semiconductor Manufacturing Co. to produce the chip, which will be a direct competitor to chip giant Nvidia — which dominates the market in AI. However, the large energy consumption of AI remains a concern, and Etched believes it can provide a more cost-effective and energy-efficient chip that is faster.

9. Bright Machines, $106M, manufacturing: San Francisco-based Bright Machines, a developer of software-defined manufacturing, raised $126 million in a Series C funding — with $106 million in equity led by investment from funds and accounts managed by BlackRock. Founded in 2018, Bright Machines has raised more than $400 million, per the company.

10. (tied) Hebbia, $100M, artificial intelligence: New York-based Hebbia, a startup using generative AI to search large documents and find answers, raised nearly $100 million in a Series B led by Andreessen Horowitz. Founded in 2020, the company has raised more than $130 million, per Crunchbase.

10. (tied) LanzaJet, $100M, fuel: Chicago-based LanzaJet, a sustainable fuels technology company, announced a $100 million growth equity round. Investors included Mitsubishi UFG Financial.

Big global deals

There were a few big rounds outside the U.S. this week. The largest was:

• Turkey-based Getir, which provides on-demand delivery services, raised a $250 million venture round.

Methodology

We tracked the largest announced rounds in the Crunchbase database that were raised by U.S.-based companies for the seven-day period of June 22 to June 28. Although most announced rounds are represented in the database, there could be a small time lag as some rounds are reported late in the week.

Illustration: Dom Guzman

This is a weekly feature that runs down the week’s top 10 announced funding rounds in the U.S. Check out last week’s biggest funding rounds here.

Another slow week for funding — the third straight after a significant pick-up in large rounds earlier this year. Xcimer Energy led the way, as it was the only startup to lock up a nine-figure round. The dog days of summer seem to already be here in the venture world.

1. Xcimer Energy, $100M, energy: Well, fusion funding was down — until this happened. Denver-based Xcimer Energy announced it raised a $100 million Series A led by Hedosophia. The company is working on laser-driven inertial fusion and will use the funding to build a prototype laser system including what it calls the “world’s largest nonlinear optical pulse compression system.” Founded in 2022, Xcimer has raised nearly $118 million, per Crunchbase — including a $9 million in grant funding from the U.S. Department of Energy’s Milestone-Based Fusion Development Program.

2. Pika, $80M, artificial intelligence: It never takes us long to get to an AI startup on this list. Pika, an artificial intelligence startup that generates video, raised an $80 million round led by Spark Capital that values the Palo Alto, California-based company at $470 million, per Bloomberg. Notably, actor and singer Jared Leto also is an investor. Pika is part of a growing group of startups building text-to-video AI software. Founded in 2023, the company has raised $135 million, per Crunchbase.

3. (tied) Prolific Machines, $55M, biotech: Unlike in previous weeks, there was no huge biotech round. The biggest this week went to Emeryville, California-based Prolific Machines, which raised a $55 million Series B led by the Ki Tua Fund, the corporate venture arm of Fonterra Co-operative Group. The startup’s platform allows commercial customers to more efficiently produce biological products through the use of light for things like cellular agriculture and nutritional protein production. Founded in 2020, Prolific has raised $86.5 million, per the company.

3. (tied) Restor3d, $55M, 3D technology: Restor3d, a North Carolina-based maker of 3D printed personalized orthopedic implants, locked up a $70 million financing — even as investors continue to cool on 3D tech startups. The round includes a $55 million Series A round led by Summers Value Partners and existing investors plus an additional $15 million in debt financing led by Trinity Capital. The startup plays at a unique intersection of healthcare/biotech, AI and 3D technology. The firm uses biomaterials, 3D printing technologies and AI to help repair the human body. It is planning to  introduce new implant systems for total ankle and shoulder replacements, offering 3D printed solutions that fit the unique anatomy of the individual patients. Founded in 2017, the company has raised nearly $150 million, per Crunchbase. While the 3D tech sector saw big money in 2021 and 2022, the past two years have seen the sector come back down to the new reality. Although VC-backed startups in the sector saw more than $2.4 billion invested in 2022, that number dropped to only about $1 billion last year, per Crunchbase data. It is on a similar trajectory this year, with only about $424 million raised thus far.

5. (tied) Osteal Therapeutics, $50M, biotech: Dallas-based Osteal Therapeutics raised a $50 million Series D led by Zimmer Biomet. The biotech startup is developing new drug/device therapies for orthopedic infections. The company’s development strategy is to use approved drugs as candidates for new routes of local, concentrated delivery. Founded in 2013, the company has raised nearly $113 million, per Crunchbase.

5. (tied) Twelve Labs, $50M, video: Yet another AI-related video startup. San Francisco-based Twelve Labs, a developer of video foundation models to make video searchable, raised a $50 million Series A co-led by new investor New Enterprise Associates and NVentures, Nvidia’s venture capital arm. The startup’s generative AI foundation models allow users to input natural language prompts that can find precise moments in large libraries of videos — potentially saving hours of time. Founded in 2021, the company has raised $77 million, per Crunchbase.

7. AcuityMD, $45M, medtech: Boston-based AcuityMD, a commercial platform to identify target markets in the medical industry, locked up a $45 million round led by Iconiq Growth. Founded in 2019, AcuityMD has raised more than $83 million, per the company.

8. Eko Health, $41M, health care: San Francisco-based Eko Health, which uses artificial intelligence for early detection of heart and lung diseases, raised a $41 million Series D. No lead investor was announced. Founded in 2013, the company has raised approximately $169 million, per Crunchbase.

9. Advanced Medicine Partners, $32M, biotech: North Carolina-based Advanced Medicine Partners, a developer of advanced medicines, received $32 million in financing led by Deerfield Management. Founded in 2023, this is the company’s first announced round, per Crunchbase.

10. Ashby, Hypr and Sword Health all raised $30 million rounds.

Big global deals

The largest round of the week came from a Chinese semiconductor company.

• Shanghai-based Unisoc, a semiconductor company focused on chipsets in mobile communications and IoT, raised a round worth approximately $552 million.

Methodology

We tracked the largest announced rounds in the Crunchbase database that were raised by U.S.-based companies for the seven-day period of June 1 to June 7. Although most announced rounds are represented in the database, there could be a small time lag as some rounds are reported late in the week.

Illustration: Dom Guzman

At the time, I noted that a single big round or two could quickly cause this narrative to change. But I hadn’t anticipated it would happen so quickly.

Turns out, it did. This morning, Denver-based Xcimer Energy announced it raised $100 million in a Series A financing led by Hedosophia and joined by Breakthrough Energy Ventures, Lowercarbon Capital, Prelude Ventures, Emerson Collective, Gigascale Capital and Starlight Ventures. The company is working on what it describes as a  transformative technology for laser-driven inertial fusion.

Xcimer says it will use the funding to build a prototype laser system including the “world’s largest nonlinear optical pulse compression system.” Founded in 2022, Xcimer received $9 million in grant funding from the U.S. Department of Energy’s Milestone-Based Fusion Development Program, which is working to put fusion energy on the power grid.

Tally totals rise

As a result of Xcimer’s funding announcement, fusion investment tallies are looking up. The financing took total funding to fusion-focused startups to the highest quarterly level since Q2 2023.

Still, it doesn’t entirely change the trajectory of fusion investment. Overall, funding to startups focused on fusion energy has declined sharply in recent quarters after hitting a high 2 1/2 years ago.

Including Xcimer, roughly $158 million has gone to companies innovating around the future of fusion as a potential power source so far this year, per Crunchbase data. By contrast, more than $2.4 billion went to the space in the fourth quarter of 2021, the peak period for funding.

Looking back, there was something resembling a fusion gold rush in late 2021. That’s when a series of giant financings got done.

By far the biggest was a Series B of over $1.8 billion for Cambridge, Massachusetts-based Commonwealth Fusion Systems, led by Tiger Global.

Everett, Washington-based Helion Energy came in second with a $500 million Series E led by Sam Altman — with an opportunity for an additional $1.7 billion tied to performance milestones.

Besides Commonwealth Fusion and Helion, a few other fusion companies have been prodigious fundraisers over the years. Janesville, Wisconsin-based Shine Technologies picked up over $500 million in equity financing, while British Columbia-based General Fusion, has taken in over $350 million in funding to date.

For the most part, generous financings coincided with a period in which investors were used to writing big checks in a multitude of startup sectors. Global startup investment hit a record high in Q4 2021 and has fallen considerably since.

Related Crunchbase Pro list:

• Fusion Energy-Related Startup Funding

Related reading:

• Venture Investors Put Billions Into Nuclear Fusion And Fission Projects
• Battery Tech And Fusion Dominate Big Energy Tech Funding Rounds
• Powering Up: Investors Warming To Nuclear Fusion

Illustration: Dom Guzman

So far this year, just $58 million has gone to companies innovating around the future of fusion as a potential power source, per Crunchbase data. By contrast, more than $2.4 billion went to the space in the fourth quarter of 2021, the peak period for funding.

For a sense of how fusion-focused startup funding has fluctuated, we used Crunchbase data to chart out investment to the space over the past 14 quarters.

As you can see, there was something resembling a fusion gold rush in late 2021. That’s when a series of giant financings got done.

By far the biggest was a Series B of over $1.8 billion for Cambridge, Massachusetts-based Commonwealth Fusion Systems, led by Tiger Global.

Everett, Washington-based Helion Energy came in second with a $500 million Series E led by Sam Altman — with an opportunity for an additional $1.7 billion tied to performance milestones.

Generous financings coincided with greater optimism around the feasibility of fusion, the energy created when two atoms are merged, as an emissions-free energy source. Plus, investors were used to writing big checks at the time. Global startup investment hit a record high in Q4 2021 and has fallen considerably since.

Dramatic ups and downs

Fusion funding has seen much more dramatic annual ups and downs than average for startup sectors, as charted below.

In part, this is likely a function of the fact that comparatively few rounds close in a given quarter, and they often skew large.

Besides Commonwealth Fusion and Helion, a few other fusion companies have been prodigious fundraisers over the years. Janesville, Wisconsin-based Shine Technologies picked up over $500 million in equity financing, while British Columbia-based General Fusion, has taken in over $350 million in funding to date.

Slowdown, or just a pause?

Given the smallish number of fusion-related rounds, and the history of large financings, it’s not clear whether the recent lag in investments is just a temporary pause between big rounds or a sign of other investor concerns.

The funding pullback may also be less about the technology’s potential than investors’ appetite lately for risky, high-cost, high-impact investments that aren’t AI-centric.

Whatever the cause, the numbers speak for themselves: Fusion funding is down, and it will take a multifold increase to get back to where we were a couple years ago.

Related Crunchbase Pro list:

• Fusion Energy-Related Startup Funding

Related reading:

• Venture Investors Put Billions Into Nuclear Fusion And Fission Projects
• Battery Tech And Fusion Dominate Big Energy Tech Funding Rounds
• Powering Up: Investors Warming To Nuclear Fusion

Illustration: Dom Guzman

Over the past four months, developers of technology to produce and distribute low-emission hydrogen have raised more than $1 billion in venture investment, per Crunchbase data. That’s already more than two-thirds the total raised in all of last year.

The tally includes multiple extra-large early-stage rounds. The latest was last week’s Series B for Hysata, which picked up $110 million in a financing co-led by BP Ventures and Templewater.

The Australia-based company is one of several recently funded startups working on electrolyzers, devices that use electricity to split water into hydrogen and oxygen.

A few months earlier, Denver-based Koloma, which focuses on identifying and commercializing geologic hydrogen resources, closed on the largest early-stage round for the space, landing $246 million in a Series B led by Khosla Ventures.

Five-year track record

The bevy of big deals means hydrogen energy is one of the few areas where startup investment did not peak in 2021. As illustrated in the chart below, funding hit a high point in 2022, but looks poised to go even higher this year.

Largest rounds

So who’s getting funded? We used Crunchbase data to curate a list of 13 well-funded startups in the hydrogen energy space that last raised funding in recent quarters.

Altogether, companies on our list have raised $3.66 billion in equity funding to date, plus hundreds of millions more in grant and debt financing. Beyond Hysata and Koloma, other standouts include:

• Electric Hydrogen, which is manufacturing electrolyzers that it says are capable of producing hydrogen at the lowest cost available, has been called the green hydrogen industry’s first unicorn. The Massachusetts company raised $380 million in an October Series C from a mix of venture and strategic backers.
• HysetCo, an operator of a network of hydrogen distribution stations and mobility services, secured $216 million in an April round led by hydrogen investor Hy24. France-based HysetCo said at the time that it was distributing nearly 30 tons of hydrogen to customers every month and managing a fleet of more than 500 hydrogen vehicles.
• Tree Energy Solutions, based in Brussels, closed on $150 million in an April Series C to expand its business model of using renewable energy to generate green hydrogen. Tree Energy then combines the hydrogen with recycled CO₂ to create e-NG, or electric natural gas.
• ZeroAvia, a developer of hydrogen-electric engines for zero-emission flight, snagged $116 million in a September Series C. The Hollister, California-based company counts Airbus as a lead investor, and is also backed by United Airlines and Alaska Air Group.

Hydrogen’s moment

While green hydrogen is by no means a new concept, investors’ stepped-up interest in the space indicates they see the requisite combination of government incentives, tech-enabled cost reductions, and market receptiveness in place now to produce compelling outcomes.

As we’ve long seen in the startup game, timing is among the most crucial determinants of success. For low-emissions hydrogen, it looks like that moment may be upon us.

Related Crunchbase Pro list:

• Heavily Funded Hydrogen-Related Startups

This is a weekly feature that runs down the week’s top 10 announced funding rounds in the U.S. Check out last week’s biggest funding rounds here.

The week was slower than last as far as startups raising huge mega rounds. Then again it had to be after 13 companies raised more than $100 million last week. Nevertheless, there were still some big raises, including a $1 billion round.

1. Wiz, $1B, cybersecurity: Cloud security startup Wiz locked up the biggest cybersecurity round of the year thus far as it raised $1 billion at a $12 billion valuation. The round — announced just as the industry’s RSA Conference was getting underway in San Francisco this week — could be another sign of investors coming back to the cybersecurity space. Cyber startups are coming off their best funding quarter in three quarters, and late last month Microsoft-backed data security firm Rubrik had a successful IPO. Wiz’s latest round was co-led by Andreessen Horowitz, Lightspeed Venture Partners and Thrive Capital. Founded in 2020, Wiz says it has raised $1.9 billion so far. Originally founded in Israel, Wiz has been busy of late. Just last month it acquired New York-based cloud detection and response startup Gem Security. The company says the new cash infusion could be used for more deal-making. Also based in New York, the startup said it achieved $350 million in annual recurring revenue last year. It has talked openly about hitting $1 billion in ARR as it heads to an IPO.

2. Zenas BioPharma, $200M, biotech: Zenas BioPharma continues the trend of big biotech weeks every week. The Waltham, Massachusetts-based startup raised a $200 million Series C preferred stock round led by Delos Capital, New Enterprise Associates, Norwest Venture Partners and SR One. The biotech firm specializes in inflammation- and immunology-directed therapies and will use the fresh cash to support the ongoing lead product candidate, obexelimab. Founded in 2020, the company has raised $318 million, per Crunchbase.

3. Bluejay Therapeutics, $182M, biotech: Following up on the biotech trend, Bluejay Therapeutics locked up a $182 million Series C co-led by Frazier Life Sciences and an unnamed life science-focused institutional investment firm. The San Mateo, California-based startup will use the fresh cash to advance the development of its treatment for chronic hepatitis D and treatments for chronic hepatitis B. Founded in 2019, the company has raised $223 million, per Crunchbase.

4. Zippy Shell, $180M, logistics: Privately held moving and storage firm Zippy Shell locked up a big $180 million deal from global investment firm The Carlyle Group. The new investment also included a new debt facility led by JP Morgan Chase. Zippy provides an alternative to traditional storage and moving options by delivering containers that are dropped off at a customer’s location and then moved to a storage site or destination for unloading. The new cash will be used to refinance its existing debt and fund growth initiatives, including network and fleet expansion. Founded in 2010, the company has raised $365 million, per Crunchbase.

5. Attovia Therapeutics, $105M, biotech: Fremont, California-based Attovia Therapeutics, which is developing biotherapeutics focused on immune-mediated diseases, closed a $105 million Series B led by Goldman Sachs Alternatives. The new round comes just 11 months after the company raised a $60 million Series A. Founded in 2023, Attovia has raised $165 million, per the company.

6. Meati, $100M, alternative protein: Boulder, Colorado-based Meati, which creates cutlets and steaks from mycelium, raised $100 million in a C-1 round led by Grosvenor Food & AgTech. Founded in 2016, the company has raised nearly $375 million, per Crunchbase.

7. R3 Vascular, $87M, medical device: Mountain View, California-based R3 Vascular, a developer of medical devices for treating peripheral arterial disease, closed an $87 million Series B led by affiliates of Deerfield Management. Founded in 2019, the company has raised $105 million, per Crunchbase.

8. Aardvark Therapeutics, $85M, biotech: San Diego-based Aardvark Therapeutics, which is developing therapies for metabolic diseases, inflammation and more, closed an $85 million Series C financing led by Decheng Capital. Founded in 2017, the company has raised nearly $130 million, per Crunchbase.

9. Base Power, $68M, energy: Austin, Texas-based Base Power, a developer of battery-powered home energy services, raised $68 million from the likes of Thrive Capital and Valor Equity Partners. It is the company’s first raise, per Crunchbase.

10. Privateer, $57M, space tech: Kihei, Hawaii-based satellite-tracking software developer Privateer raised a $56.5 million round led by space-focused venture capital firm Aero X Ventures and acquired the analytics firm Orbital Insight. The round is the company’s first announced raise, per Crunchbase.

Big global deals

The biggest round of the week was actually one of the largest funding deals on record for a British startup ever.

• London-based self-driving car startup Wayve raised $1.05 billion in a SoftBank-led round.

Methodology

We tracked the largest announced rounds in the Crunchbase database that were raised by U.S.-based companies for the seven-day period of May 4 to May 10. Although most announced rounds are represented in the database, there could be a small time lag as some rounds are reported late in the week.

Illustration: Dom Guzman

Earlier this year, the Securities and Exchange Commission approved a climate-related disclosure rule for U.S. public companies. The rule, which is currently being challenged in a federal court, marks the first time that American companies would be required to disclose some form of greenhouse gas emissions.

It does not, however, require reporting on indirect emissions that occur in the value chain of a reporting company. These emissions are the hardest to track and can account for more than 70% of a company’s carbon footprint.

If public companies might get off the hook for the majority of reporting, why should a capital-efficient startup consider the time-consuming and expensive process?

The practical reasons

By 2026, a California-based company with more than $1 billion in annual revenue must report direct GHG emissions (for example, fuel to power a company’s equipment), indirect greenhouse gas emissions (such as consumed electricity generated offsite), and by 2027 value chain emissions — the aforementioned category that can include everything from purchased goods and services to leased assets to delivery trucks. The state’s law is currently more progressive than the SEC and closer to EU regulations.

California includes a long, notable list of companies that could be future customers, partners or acquirers for a startup. Now consider the growing number of corporations that are already voluntarily measuring, disclosing and reducing greenhouse gas emissions downstream in their supply chains.

Collectively, that’s a lot of entities that are evaluating their purchased products and services and searching for lower-carbon alternatives. A startup that is already reporting, or at least demonstrating progress will be a more attractive partner.

Additional arguments for startups to voluntarily start measuring sustainability efforts become a bit squishier. Every founder I know has a focused “must do” list and a much longer “should do” list. It takes a compelling argument to shuffle priorities around, particularly when it requires extensive funds, talent and time — not to mention a hard-to-define return on investment.

That said, here are some of the softer reasons a startup should measure greenhouse gas emissions: to establish loyalty with consumers, to build public trust, and to create a purpose-driven culture.

Where to start

It’s not a linear path. And for many startups facing financial realism, it requires a scrappy approach. The ultimate goal is to better understand a company’s holistic environmental impact in order to identify opportunities for improvement.

There are a number of widely used and accepted standards, such as the Greenhouse Gas Protocol, that offer a methodology and reporting framework for companies to measure, manage and report on their emissions. A startup offering a product might also start with a life cycle assessment to estimate cradle-to-grave environmental impact including raw material and processing, manufacturing, distribution, use and end of life.

This is a company-wide undertaking that will likely require buy-in, budget and talent. There are a number of sustainability management resources to choose from including free online platforms. Carbon accounting software can cost $50,000 to $70,000 a year, and require consultants to help implement.

While expensive, an outside service provider helps to remove internal bias and increase credibility. Some of these options might offer more capabilities than your team is currently set up to unlock. It’s important to do a careful and honest assessment of what’s feasible for your company’s stage of growth.

After developing a more complete picture of greenhouse gas emissions, a company can start benchmarking practices among competitors, setting long-term goals, and considering energy-efficient changes. Startups should lean on their boards to pressure-test findings and review draft roadmaps.

Even if it’s early days to measure your company’s carbon footprint, you should be discussing the right time to start.

Todd Klein is a partner at Revolution Growth, a Washington, D.C.-based venture capital fund that backs category-defining companies operating at the intersection of policy and tech. During his 20-year career, Klein has been involved in financing and building more than 150 growth-stage companies in the media, consumer, tech, sustainability and healthcare sectors.

Illustration: Dom Guzman

As global startup funding experiences a downturn, with Q1 2024 marking one of the lowest points since 2018, the landscape for entrepreneurs seeking investment has become increasingly challenging.

In these uncertain times, investors are placing greater emphasis on startups that offer tangible solutions to pressing societal and environmental issues. As a result, sustainable startups in this climate have a unique opportunity to shine by aligning their missions with the growing demand for impactful investments.

That said, standing out from the competition requires more than just a noble cause. Founders must carefully consider what sets their venture apart and how they can effectively communicate their value proposition to impact investors.

Let’s go over the key factors that stand to attract investment in sustainable startups and lead to success.

What are impact investors looking for?

Startups that can demonstrate a strong alignment between financial viability and positive social or environmental effects are in great demand in today’s investment landscape.

To appeal to investors, projects must clearly articulate their objectives, showcasing how the two aspects (financial and environmental) are interconnected in their operations. By presenting a compelling narrative that highlights the potential for both financial returns and positive social or environmental change, startups can effectively capture the attention of impact investors.

Taking this logic a step further, participating in impact-focused grants and accelerators can provide startups with not only much-needed capital but also increased credibility within the impact investing community.

Such platforms offer valuable opportunities to showcase a startup’s commitment to creating meaningful change while also building relationships with like-minded investors and fellow entrepreneurs.

Additionally, actively engaging in forums and networking events frequented by impact investors can greatly enhance a startup’s visibility and access to funding opportunities. By joining these communities, companies can gain valuable insights, receive feedback on their strategies, and forge connections with potential investors.

Lastly, startups should establish clear mechanisms for measuring, monitoring and reporting on their impact performance to ensure transparency and accountability. Regularly sharing detailed updates on both impact and operational metrics is essential for maintaining investor trust and confidence.

Which categories are poised to grow in 2024?

In 2024, the landscape of sustainable startups is poised for significant growth, driven by an increasing consumer preference for eco-friendly products and a heightened awareness of environmental issues.

One field that I expect will experience significant growth is renewable energy startups. As the global transition from fossil fuels gains momentum, interest in solar and wind energy technologies continues to soar. Startups in this space are well-positioned to capitalize on the growing demand for clean and renewable energy sources.

Another area of interest is electric and autonomous vehicles. With the automotive industry undergoing a profound shift toward sustainability, startups focusing on innovations in autonomous driving technologies are particularly attractive to investors.

These startups are driving forward the green revolution in transportation, offering solutions that reduce emissions and minimize environmental impact.

Lastly, climate tech startups are emerging as key players in the fight against climate change. From carbon capture technologies to climate resilience solutions, these startups are developing innovative ways to mitigate the impacts of climate change and build a more sustainable future for generations to come.

As investors increasingly prioritize environmental and social impact alongside financial returns, the outlook for sustainable startups in 2024 is bright and promising.

Eugene Krasicki is a founder and CEO of neobank Keytom, which aims to be one bank for all digital assets. An impact entrepreneur with over 15 years of expertise, he has paved his path through various industries from manufacturing and fine wine to real estate and banking. Beyond his entrepreneurial pursuits, Krasicki has a deep interest in alternative investments, recognizing their potential in diversifying portfolios and generating long-term returns.

Illustration: Dom Guzman

Dozens of companies once valued in the billions have seen their valuations wither and their share prices nosedive to penny-stock territory. In response, a growing number are choosing to exit public markets and try their luck once again as private companies.

A couple weeks ago, genetic testing provider 23andMe became the latest candidate to try out this route. The company announced that its CEO and founder, Anne Wojcicki, is considering acquiring all the outstanding shares she does not currently own. Her proposal follows more than three years of mostly disastrous performance on Nasdaq, with shares recently valued around 50 cents each.

23andMe is not alone. In recent months we’ve seen a spate of struggling SPACs also announce plans to go private. Standouts include:

• View, a maker of smart glass for high-end buildings, announced last month that it entered into an agreement with investors to become a private company and pursue a  Chapter 11 bankruptcy reorganization. Prior to going public in early 2021, Milpitas, California-based View had raised more than $1.8 billion in venture funding. It struggled early on as a public company, with a history of losses and persistent doubt over its solvency.
• The board of Astra, a provider of low-cost launch services for small satellites, voted in March to go private after a troubled three-year run as a public company. The plan calls for selling to a parent company formed by Astra CEO Chris Kemp, CTO Adam London and other long-term investors. After debuting on Nasdaq in 2021 at a $2.1 billion valuation, the Alameda, California-based company had a recent market cap around $15 million.
• Berkshire Grey, a developer of robotics technology for warehouses, made its market debut via SPAC merger in July 2021. Just 20 months later, after shedding a couple billion from its peak valuation, the Bedford, Massachusetts, company announced it would once again go private. The plan called for existing shareholder SoftBank to acquire all remaining outstanding stock in a deal valued around $375 million.
• Greenlight Biosciences, a biotech developing RNA products for health and agriculture, went public in early 2022 near the tail end of the SPAC boom, at an initial valuation around $1.2 billion. It didn’t go well. A little over a year later, in May 2023, Medford, Massachusetts-based Greenlight announced it would go private via an investor group led by existing shareholder Fall Line Capital in a deal valuing the company at $45.5 million.

None of these are case studies in successful post-IPO performance. Founders and early backers undoubtedly hoped they’d generate more lasting enthusiasm on public markets.

But given the options at hand when shares sink to sub-$1 levels, going private certainly isn’t the worst. It helps that in most of the cases listed above, the owners of the newly private company are founders or long-term shareholders with a deep understanding of the business.

Additionally, while no one likes seeing valuations crumble, at least a case could be made that there’s plenty of potential upside at current levels.

Related reading:

• 2020 Is The Year Of The SPAC
• Smart-Glass Maker View’s Outlook Shatters, Smashing SoftBank SPAC Dreams

This is a weekly feature that runs down the week’s top 10 announced funding rounds in the U.S. Check out last week’s biggest funding rounds here.

What a week it’s been if you were a startup looking to raise big. This week, more than a dozen nine-figure rounds were raised by U.S.-based startups — more than any week this year and perhaps last year.

While a big AI round led the way, there were huge raises in energy, quantum computing, neuroscience and other sectors too. Big rounds have seen a pickup this year, and this week is the best example yet. You needed to raise $125 million-plus to make this list.

1. CoreWeave, $1.1B, artificial intelligence: Funding to AI-related startups increased slightly in Q1 2024 compared to Q4 2023, and that trend may continue in the second quarter based on this week’s big round. AI cloud infrastructure startup CoreWeave locked up a $1.1 billion round led by Coatue that values the company at $19 billion, per The Wall Street Journal. The valuation represents an almost threefold increase from the company’s valuation just five months ago, when it was valued at $7 billion following a secondary sale, and a huge jump from its $2 billion valuation in a Series B extension last May. With the latest funding, the company has now raised some $4.6 billion, per Crunchbase data.

2. Pine Gate Renewables, $650M, energy: Pine Gate Renewables ended April with a  $650 million investment from Generate Capital, the Healthcare of Ontario Pension Plan and HESTA. The Asheville, North Carolina-based solar and energy storage product developer plans to use the new cash to help finance the creation of three gigawatts of clean energy infrastructure in communities across the United States by next year. Founded in 2014, the company has raised $1.7 billion, per Crunchbase.

3. PsiQuantum, $620M, quantum computing: PsiQuantum landed the biggest funding round thus far this year for any quantum startup, beating out Quantinuum’s $300 million equity fundraise at a pre-money valuation of $5 billion from January. Palo Alto, California-based PsiQuantum landed a financial package of $620 million from the Australian Commonwealth and Queensland Governments to build a quantum computer at a location near Brisbane Airport in Brisbane, Australia. The round is actually a mix of equity, grants and loans, so it is not all equity. Founded in 2016, the company has raised more than $1.3 billion, per Crunchbase.

4. Motional, $475M, autonomous vehicles: Hyundai showed it is willing to spend big on Boston-based self-driving startup Motional. This week the carmaker agreed to invest $475 million directly into the startup while also buying 11% of joint venture partner Aptiv’s equity stake in the company for another $448 million. Motional, formerly nuTonomy, was in the news just a couple of months ago for reportedly securing a bridge loan to extend its runway until another funding round. It seems like this situation bears watching.

5. (tied) Blackrock Neurotech, $200M, neuroscience: Stablecoin issuer Tether invested $200 million in Blackrock Neurotech to take a majority stake in the brain-to-computer interface startup. The Salt Lake City-based company creates brain-to-computer interfaces and implants that allow people to control computers and neuroprosthetics. The company had only raised $10 million before the new round from Tether, according to Crunchbase. The deal values Blackrock Neurotech at about $350 million, per Reuters. The deal is the latest headline concerning brain-computer interface technology, which has been pushed by Elon Musk’s Neuralink. Musk’s company recently live-streamed a quadriplegic man playing video games using its implant and has raised nearly $700 million, per Crunchbase.

5. (tied) BridgeBio Oncology Therapeutics, $200M, biotech: Biotech saw a big spinout, as BridgeBio Pharma launched subsidiary BridgeBio Oncology Therapeutics as its own company with $200 million of new funding. The Palo Alto, California-based spinout will look to grow its oncology portfolio. The financing was co-led by Cormorant Asset Management and Omega Funds.

7. Island, $175M, cybersecurity: Cybersecurity venture funding saw a small bounce back in the first quarter of the year and a couple of large raises this week may indicate that trend continuing. Dallas-based enterprise browser developer Island raised a $175 million Series D at a $3 billion valuation — doubling its last valuation from less than a year ago. The round was led by new investor Coatue and existing investor Sequoia Capital. Island is no stranger to big-money rounds. In October, it raised a $100 million Series C led by Prysm Capital that valued it at $1.5 billion. In March 2022, the company announced a $115 million Series B at a $1.3 billion valuation led by Insight Partners. Island has raised $487 million in total investments to date, per the company.

8. Altruist, $169M, fintech: Los Angeles-based wealth management platform Altruist raised a $169 million Series E led by Iconiq Growth that values the company at more than $1.5 billion. Founded in 2018, Altruist has raised more than $450 million, per the company.

9. Corelight, $150M, cybersecurity: Another big cyber round. San Francisco-based open-network detection and response startup Corelight locked up a $150 million Series E investment led by Accel, with additional strategic investment from Cisco Investments and the CrowdStrike Falcon Fund. Founded in 2013, the company — which uses network and cloud activity to hunt and respond to threats — has raised nearly $310 million, per Crunchbase.

10. Transcarent, $126M, healthcare: San Francisco-based personalized healthcare platform Transcarent closed a $126 million Series D led by General Catalyst and 7wire Ventures that values the company at $2.2 billion. Founded in 2020, Transcarent has raised approximately $450 million, per the company.

Big global deals

U.S.-based startups dominated investors’ money this week. The biggest round outside the country would barely have made the above list.

• India-based PharmEasy, an online health service that connects users to local pharmacies and labs, raised a $216 million venture round.

Methodology

We tracked the largest announced rounds in the Crunchbase database that were raised by U.S.-based companies for the seven-day period of April 27 to May 3. Although most announced rounds are represented in the database, there could be a small time lag as some rounds are reported late in the week.

Illustration: Dom Guzman