Despite the spotlight firmly fixed on Google I/O this past week, numerous startups took their chance to announce major deals or navigate unexpected headlines.
Significantly, OpenAI captured substantial attention by unveiling its new partnership with celebrated designer Jony Ive, whose design firm LoveFrom will now lead creative efforts at the AI pioneer. This development followed OpenAI’s all-equity acquisition of io, the AI hardware startup launched by Ive and OpenAI CEO Sam Altman, an agreement valuing io at an impressive $6.5 billion.
In fintech, Klarna continued to push efficiency boundaries, leveraging AI technology to raise its revenue per employee from $575,000 annually to nearly $1 million. Highlighting its confidence in this enhanced AI capability, Klarna notably delivered its latest quarterly earnings through an AI-created avatar of the company’s CEO.
Another fintech move saw corporate spending platform Brex announcing a strategic collaboration with procurement startup Zip—formerly its competitor. This partnership is intended to reduce cash burn rates and expand Brex’s enterprise customer portfolio, positioning the company closer to a potential IPO.
However, not all startups are riding high. Builder.ai, the AI-driven software builder backed by Microsoft, has filed for insolvency despite previously securing over $450 million in investments at unicorn status. The news reflects how even well-funded AI startups remain vulnerable during prolonged downturns.
Additionally, Swedish autonomous electric trucking startup Einride announced a leadership shift, with founder Robert Falck moving from his CEO role to executive chairman, as the company frames new ambitions around scaling and plans for a future IPO.
In the lidar technology sector, Luminar announced it could raise up to $200 million through the sale of convertible preferred stock, a significant move following the replacement of billionaire founder Austin Russell as CEO due to earlier concerns related to company ethics.
Meanwhile, social fitness giant Strava continued expanding its portfolio of training applications by acquiring cycling app The Breakaway, marking its second acquisition within a few weeks.
Large-scale venture capital funding also surged, with LM Arena reportedly securing a staggering $100 million seed round—rare in scale—for its renowned AI benchmarking platform. Similarly ambitious, API management startup Gravitee raised a $60 million Series C round led by Sixth Street Growth, while sales AI startup Siro clinched $50 million in a Series B led by SignalFire.
RevenueCat, a subscription management firm focused initially on mobile app monetization, raised a $50 million Series C round led by Bain Capital, pushing its valuation to $500 million and signaling it aims for broader solutions beyond its initial market. In traditional small-business fintech, Affiniti, launched by two young entrepreneurs aged 20 and 22, secured a $17 million Series A round from SignalFire just months after an impressive seed round.
On the venture side, Headline Asia closed a notable $145 million fund destined for early stage tech investments across the Asia-Pacific region, while Scribble Ventures, founded by former Twitter executive Elizabeth Weil, raised an $80 million fund demonstrating the enduring importance of founder networks in a crowded VC landscape. Similarly, Creator Ventures raised a new $45 million fund, more than doubling its previous capital total and focusing explicitly on early-stage consumer internet startups.
Finally, at a high-profile investor gathering in London, Sonali De Rycker, general partner at Accel, expressed optimism regarding Europe’s AI prospects but warned that overly cautious regulation risks undermining the continent’s competitive edge amidst a crucial modern tech cycle.
