VC Update (Mar. 31st)

Hello Reader,

Here is a summary of key Venture Capital developments from March 24 to March 31, 2025, with a focus on North America and Europe:

Venture Capital Trends & Deals:

• Enterprise SaaS and AI sectors continued to attract significant venture capital investment in North America, as seen by a 55% quarter-over-quarter increase in Q4 funding for Enterprise SaaS, driven by mega-rounds for OpenAI ($6.6B) and xAI ($6B) [PitchBook News, 24.03.2025].
• AI remained a dominant theme in venture capital, with one-third of all VC deals currently focusing on AI [StrictlyVC, 29.03.2025].
• Outcome-based pricing is emerging for AI startups, potentially unlocking significant revenue upside compared to traditional user-based models [The VC Corner, 30.03.2025].
• The biggest disclosed venture deal was OpenAI’s $6.6 billion funding round [PitchBook News, 24.03.2025].

Early-stage Fintech/Insurtech deals under $20M:

• Spangle, an AI-focused fintech company, raised a $6 million seed round [The VC Corner, 27.03.2025].
• Arlo, an SME insurance provider, received $4 million in seed funding [StrictlyVC, 27.03.2025, CEO DailyFortune, 26.03.2025].
• Stable Sea, a stablecoin liquidity platform, secured $3.5 million in funding [Exec Sum - Litquidity, 19.03.2025, FinSMEs, 19.03.2025].
• Burbank (Cardiff, UK) raised £5M in Seed funding for payments technology [CEO Daily | Fortune, 26.03.2025, FinSMEs, 27.03.2025].
• Paid (London, UK) secured €10M (~$11M) in pre-seed funding for its AI business platform [CEO Daily | Fortune, 26.03.2025, FinSMEs, 27.03.2025, StrictlyVC, 27.03.2025].
• Manifest (financial protocol for real estate) raised $2.5M pre-seed, backed by VanEck Ventures and Lattice Fund [Cory Weinberg, 20.03.2025 - just outside range].
• Warlock Labs (San Francisco): $8M for crypto transaction recovery tools [Natasha Mascarenhas, 27.03.2025, The VC Corner, 30.03.2025].
• Yutori (San Francisco): $15M seed to build AI-powered digital personal assistants [Natasha Mascarenhas, 27.03.2025, The VC Corner, 30.03.2025].
• All Gravy (Copenhagen): $2.9M to improve frontline worker experience via AI [The VC Corner, 30.03.2025].
• BuildVision (Charleston, SC): $10M Series A to automate construction project procurement/financing [The VC Corner, 30.03.2025].

Notable Exits (IPOs, M&A) and Company Shutdowns:

• CoreWeave’s IPO priced at $40/share for a $23 billion valuation, a significant drop from the previously suggested $32 billion [Cory Weinberg, 28.03.2025, The Briefing (March 27)].
• Munich Re’s Ergo unit acquired Next Insurance for $2.6 billion, marking a significant exit in the digital insurance sector [GCV: Blueprint, 24.03.2025].
• GameStop’s $1.3 billion capital raise was a notable market move, although not a traditional VC-backed exit [CEO DailyFortune, 28.03.2025].

VC Ecosystem Updates:

• Haun Ventures, a crypto-focused venture firm, is raising a second round of funds totaling $1 billion, expected to close in June [Term SheetFortune, 24.03.2025].
• 2150, a Pan-European VC firm, launched 2150 Fund II, aiming to invest in sustainable technology for cities and industries [PitchBook News, 24.03.2025].
• Capitala Group closed a $1 billion private equity fund to invest in lower middle-market companies [FinSMEs, 26.03.2025].
• Yango Ventures, the corporate venture arm of UAE-based Yango Group, launched a $20 million fund to support startups in LATAM, Sub-Saharan Africa, and MENAP [FinSMEs, 26.03.2025, The VC Corner, 30.03.2025].
• Emergence Capital’s $1 billion fund indicates strong investor appetite for enterprise AI [Fintech by Sifted, 25.03.2025].
• Willowtree Investments is raising its third fund for emerging markets [The VC Corner, 30.03.2025].
• 2AM VC announced its second fund supporting next-generation Indian founders [The VC Corner, 30.03.2025].

Sector-Specific Insights:

• Insurance Carriers: The acquisition of Next Insurance demonstrates continued investor interest in the insurtech space [GCV: Blueprint, 24.03.2025].
• Artificial Intelligence (AI): AI remained a central focus of VC activity, with significant funding rounds for companies like OpenAI [PitchBook News, 24.03.2025] and a general trend of increased investment in AI-driven solutions across various sectors [StrictlyVC, 29.03.2025, The VC Corner, 30.03.2025]. The potential for “AI agents” to reshape startups by cutting costs and accelerating product cycles was also noted [The VC Corner, 23.03.2025, 23.03.2025 - this date is just outside the range but the trend continues].
• Cryptocurrency: Haun Ventures is raising a substantial $1 billion fund focused on crypto investments [Term SheetFortune, 24.03.2025]. The preparation for a Verisure IPO was mentioned, which could maintain Swiss prominence in security tech, potentially relevant to crypto security [Transacted, 24.03.2025].
• Other things really worth mentioning that affect markets or the economy:
  • Global equity markets experienced a sharp downturn towards the end of the week, ahead of anticipated U.S. tariff announcements (“Tariff Liberation Day” on April 2nd), indicating rising investor anxiety related to trade policy [CEO DailyFortune, 31.03.2025]. This broad market anxiety could influence future VC investment sentiment.
  • There were warnings from AI pioneers like Andrew Ng about overhype in AI potentially backfiring, leading to distorted valuations and overregulation risks [GCV: Blueprint, 31.03.2025]. This caution could affect future AI investment strategies and due diligence.
  • Switzerland’s UBS threatened relocation due to potential tightening of capital requirements for systemically important banks, a development that could have broader implications for the Swiss financial sector and its attractiveness for investment [Finanz und Wirtschaft, 30.03.2025].

​
​Unsubscribe · Preferences​