Startups Weekly: Fast and Furious Deals and Funding Fuel Rapid Growth

This week in the startup world, speed was the name of the game, with companies achieving significant milestones in remarkably short periods. Defense technology continues to be a major area of investment and innovation. This edition of Startups Weekly recaps the week’s most important events, offering insights into the fast-paced world of startups.

Rapid Acquisitions and Valuation Jumps

Israeli companies dominated headlines with quick deals. No-code website builder Wix acquired Base44, a vibe-coding startup only six months old, for a staggering $80 million in cash. Base44 was bootstrapped.

Ramp, a spend management startup, saw its valuation soar to $16 billion in just three months, following a Series E funding round. The valuation was previously $13 billion during a secondary sale earlier in the year.

Meta, Scale AI, and OpenAI in the Mix

Details emerged regarding Meta’s $14.3 billion deal to acquire 49% of Scale AI, including potential dividend payouts. However, in light of this acquisition, OpenAI decided to drop Scale AI as a data provider.

The U.S. Department of Defense awarded OpenAI a contract worth up to $200 million. This move may strain OpenAI’s relationship with Microsoft.

YC Demo Day Highlights

Y Combinator’s recent Spring 2025 Demo Day showcased several promising startups. Investors are buzzing about 11 of these companies and the potential they hold. One of the more talked about events was the police shutting down Cluely’s after-party.

VC and Funding News: Defense Tech and AI Lead the Way

Defense tech and AI startups continued to attract significant investment this week. Several companies closed substantial funding rounds.

Applied Intuition, which develops software for autonomous vehicles, raised $600 million in a Series F round and tender offer, bringing its valuation to $15 billion.

Helsing, a Munich-based defense tech startup, closed a €600 million investment led by Prima Materia, the VC firm founded by Spotify’s Daniel Ek. The investment valued Helsing at €12 billion.

Coralogix, an Israeli observability startup, achieved unicorn status after raising a $115 million Series E round. The company plans to expand its presence in India, where it currently has 100 of its 550 employees.

Mach Industries, a defense tech startup, confirmed a $100 million funding round led by Khosla Ventures and Bedrock, valuing the company at $470 million.

Aspora, formerly known as Vance, secured $50 million in a Series B round co-led by Sequoia and Greylock, valuing the company at $500 million. Aspora focuses on facilitating remittances from the Indian diaspora.

Sword Health, an AI-powered digital health startup, secured $40 million in funding at a $4 billion valuation in a round led by General Catalyst. The company also announced it was delaying IPO plans to at least 2028.

Multiplier Holdings raised $27.5 million across seed and Series A rounds to fuel its AI-powered accounting firm roll-ups.

Grifin, an app that allows users to buy stock in brands they shop at, secured $11 million in a Series A round.

Polar, a payment infrastructure platform for developers and AI-first businesses, raised a $10 million seed round led by Accel. The CEO previously co-founded Tictail, which was acquired by Shopify in 2018.

Endeavor Catalyst, a global VC firm, is seeking to raise $300 million for its fifth fund, its largest yet, to invest in fast-growing startups in emerging markets.

Fintech 3.0 on the Horizon

Alexa von Tobel, an early investor in Chime, believes Fintech 3.0 is coming. She highlighted the need for fundamental product reinvention to meet the needs of a changing economy and a digitally native population.