This week the startup ecosystem experienced a series of mixed signals, reflecting optimism and concern simultaneously across the market. While design software leader Figma confidently moved forward by filing its confidential IPO documents, other high-profile firms such as Klarna and StubHub chose to pause their own public plans amid ongoing stock market turbulence tied to recent tariff-related disruptions.
Despite its IPO aspirations, Figma was notably cautious in other business matters, issuing a cease-and-desist letter to the rapidly ascending software company Lovable for its use of the term “Dev Mode.”
Founders across the globe also continued feeling pressure over fundraising constraints. In the UK particularly, startup entrepreneurs have grown increasingly dissatisfied, pointing out an alarming disparity in funding opportunities. Last year, British startups raised approximately £16.2 billion ($21.5 billion), a stark contrast to their Silicon Valley counterparts, where fundraising totalled around $73.8 billion (£65 billion), according to recent data by Dealroom.
Startups with strong pedigrees also faced unexpected hurdles. Smashing, the AI-driven reading curation app launched by Goodreads founder Otis Chandler, announced it was shutting down due to stalled growth, while India’s electric mobility service BluSmart abruptly halted operations following a regulatory probe into Gensol Engineering, a company with shared co-founders.
Yet new beginnings were evident elsewhere. Ryan Breslow, shortly after stepping back into the CEO role at fintech firm Bolt, unveiled ambitious plans for a major “super app,” aiming to reinvigorate the trajectory of the company he founded in 2014. Meanwhile, HR tech firm Rippling pushed ahead aggressively in its legal battle against competitor Deel, despite logistical complications involving Deel CEO Alex Bouaziz’s relocation to the UAE.
In notable acquisition news, OpenAI entered discussions reportedly worth around $3 billion for Windsurf, the startup formerly known as Codeium, renowned for its popular AI-driven coding assistant.
On the venture funding side, investors appeared cautiously optimistic, with several high-profile fundraisings suggesting potential recovery in the space. British insurance disruptor Marshmallow secured a substantial $90 million equity and debt round, reaching a valuation just north of $2 billion. Data management innovator Hammerspace similarly collected $100 million in fresh funding at a value exceeding half a billion dollars.
Additionally, Medicare advisory platform Chapter, co-founded by one-time presidential hopeful Vivek Ramaswamy, raised $75 million, achieving a $1.5 billion valuation. Deep-tech startups continued to attract attention and capital; Austin-based Phantom Neuro brought in a $19 million seed round for its pioneering subdermal wristband-like device to help amputees control prosthetics, and Conifer secured $20 million for electric hub motors which notably forego the use of rare earth materials.
Emerging markets like Nigeria also saw fresh commitment, with solar infrastructure company Arnergy confirming an extended Series B round totalling $15 million thanks to investors including Bill Gates’ Breakthrough Energy Ventures.
Adding further bullishness to the market, Peter Thiel’s Founders Fund successfully closed its latest growth fund at an impressive $4.6 billion, significantly higher than its prior $3.4 billion fundraise, indicating greater optimism among tech investors.
Finally, venture capital firms are today more creative when generating liquidity, even without IPO activity. Industry Ventures CEO Hans Swildens recently explained the tactics investors adopt in challenging exit environments, underscoring funds’ adaptive strategies amidst complex market conditions.
