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Trend Radar: VC Monday Update

Published about 1 month ago • 3 min read

VC Monday Update (Mar. 17th)

Hello Reader,

Here is a summary of key Venture Capital developments from March 12 to March 17, 2025 (approximately), focusing on North America and Europe:

Venture Capital Trends:

  • Cybersecurity saw a significant funding surge in Q4, with a 44% quarter-over-quarter increase to $3.5 billion, despite an 11% decline in total deal count. Data security startups were leading this sector [PitchBook News, 12.03.2025].
  • European tech investment experienced a 30% year-over-year decrease but showed a 70% increase compared to 2023 [Tech.eu, 10.03.2025 - Note: This source is slightly outside the strict date range but relevant].
  • Startups are increasingly becoming acquirers in the M&A space, with over one-third of 2024 startup acquisitions being made by fellow VC-backed buyers, a shift from Big Tech acquisitions [PitchBook News, 11.03.2025 - Note: This source is slightly outside the strict date range but relevant].
  • Klarna, a Swedish BNPL fintech, filed for an IPO, aiming to raise at least $1 billion at a $15 billion valuation [StrictlyVC, 15.03.2025].

Recent VC Deals:

  • Town, a US tax compliance fintech, raised an $18 million Seed round led by First Round Capital [StrictlyVC, 15.03.2025].
  • Lexroom.ai, an Italian legaltech startup, secured €2 million in seed funding [Tech.eu, 17.03.2025].
  • Cloud Gateway, a UK-based company, raised £1.5 million in funding [Tech.eu, 17.03.2025].
  • Mimo (Financial management for SMBs, UK) - $8.5M led by Project A, Northzone, Seedcamp ["Term Sheet | Fortune", 12 Mar 2025].
  • Worth (Onboarding & Underwriting Automation for Financial Industry, US) - $25M led by TTV Capital ["Term Sheet | Fortune", 12 Mar 2025].
  • Flagright (London) - $4.3m seed round for an AI-native anti-money laundering (AML) compliance platform, supported by Frontline Ventures, Y Combinator [FinSMEs, 11 Mar 2025].
  • Lexroom.ai (Milan) - €2m seed round for an AI-driven legal research platform, investors include Verve Ventures and Banyan Ventures [FinSMEs, 11 Mar 2025].
  • CapRelease (London) - £1.7m pre-seed for an embedded finance platform for e-commerce [FinSMEs, 11 Mar 2025].
  • Town (US Tax Compliance Fintech) - $18M Seed, led by First Round Capital [Martin Peers, 14 Mar 2025].

Exits or Shutdowns:

  • Northvolt, a European battery production company, has filed for bankruptcy [Tech.eu, 17.03.2025].
  • Accenture acquired a minority stake in OPAQUE, a confidential computing AI platform ["Term Sheet | Fortune", 14.03.2025, FinSMEs, 13.03.2025 - Note: Source indicates full acquisition of Soben].

VC Ecosystem Updates:

  • Bessemer Venture Partners raised a $350 million India-focused fund, targeting AI, fintech, and consumer businesses [Exec Sum - Litquidity, 12.03.2025, “Term SheetFortune”, 13.03.2025, The VC Corner, 16.03.2025].
  • OpenOcean, based in Helsinki, raised €100 million for its fourth flagship fund, with a target of €130 million by mid-2025, focusing on deeptech [Martin Peers, 13.03.2025].
  • Rex Woodbury launched Daybreak Ventures with a $33 million inaugural fund, focusing on consumer and enterprise startups with investment sizes ranging from $500,000 to $1 million [“Term SheetFortune”, 14.03.2025, StrictlyVC, 15.03.2025].
  • Vento Capital launched a €75 million fund focused on European early-stage startups [StrictlyVC, 15.03.2025, The VC Corner, 16.03.2025].
  • OTB Ventures expanded into Luxembourg, increasing its European investment reach [Tech.eu, 17.03.2025].

Sector-Specific Insights:

  • Insurance Carriers: QBE Ventures invested in Converge, a cyber insurer integrating risk management, data analytics, and underwriting, strengthening QBE’s cyber insurance presence, particularly for small businesses. Zurich also invested in Cowbell & BOXX in the cyber insurance space [Coverager, 14.03.2025].
  • Artificial Intelligence (AI): The AI sector in Europe received nearly $3.2 billion in funding this year, marking the third-highest quarter for AI investments, with growing interest from private equity [PitchBook News, 13.03.2025]. There are growing concerns about circular financial arrangements in the AI industry, exemplified by Nvidia’s deal with CoreWeave involving a $1.3 billion rental agreement for its own chips [Martin Peers, 13.03.2025].
  • Cryptocurrency: Binance secured $2 billion in new funding from MGX amid a turbulent crypto environment [Last Money In, 15.03.2025 - Note: This source is slightly outside the strict date range but the funding likely occurred within or leading up to this period]. The US government’s recognition of Bitcoin as a strategic asset through a strategic bitcoin reserve continues to be a notable development [Phil Rosen, 07.03.2025 - Note: While slightly outside the range, this development has ongoing implications].

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