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This week, some startups that generated value at the speed of lightning confirmed that their defense technology is red heat.
The most interesting startup story of the week
Many startup stories this week have somehow happened in the Y-combinator trajectory. Israel was also once again responding to the reputation of “emerging countries.”
It was fast: the codeless website building platform WIX has acquired six-month bootstrap vibe coding startup Base44 (both Israeli companies) for $80 million in cash.
That was also fast. In just three months, the rating of the lamp rose from the $13 billion that the spending management startup made secondary sales earlier this year after Series E.
Friends and Enemies: New details about Meta's $14.3 billion deal earned 49% of Startup Scale AI, including potential dividend payments. I also learned that Openai is removing Scale AI as a data provider following its transactions.
FRENEMIES: The US Department of Defense has awarded Openai directly a contract worth up to $200 million.
ICYMI: Of all the teams announced at YC's recent Spring 2025 demo day, there are 11 startups that investors are talking about.
It didn't happen. People are also talking about police shutting down YC Demo Day afterparties that controversial AI startups have tried to throw at them quickly. Or as the CEO told TechCrunch “the most legendary party that never happened.”
Most Interesting VC and Funding News This Week
Most of the fundraising news was driven by defence technology, AI, or both, but there were also some surprises. Additionally, one VC company is aiming for the next fund.
Good Intuition: Applied Intuition is a company that manufactures software for self-driving cars, securing its public offering with a $600 million Series F and a $15 billion valuation.
New song: Munich-based defense technology startup Helsing has shut down an euro 600 million investment led by Prima Materia, the VC company of Spotify founder Daniel EK.
New Unicorn: Israeli observability startup Coralogix has become a unicorn after raising a $115 million Series E. This will be used to double the staffing in India, where 100 of its 550 employees are currently based.
Tellja: Mach Industries, a two-year-old defense technology startup, has confirmed it has raised $100 million in funding, led by Khosla Ventures and Bedrock, at a $470 million valuation.
Money flow: Aspora, a startup previously known as Vance and focused on promoting remittances from the Indian diaspora, has jointly closed a $50 million Series B at a $50 million valuation.
Heart of Heart: Sword Health is an AI-powered digital health startup that began as a virtual physiotherapy solution, locked in at $40 million in the funding round that returned investors' general Catalyst. It also pushed back the IPO plans to at least 2028.
Multiplier Effect: Multiplier Holdings announced that it has joined a growth trend (in that case, an accounting firm) to purchase legacy services businesses, raising $27.5 million across seed and Series A rounds after scaling with AI.
Shop Location: Grifin is a startup that helps users buy stock from buying brands such as Walmart.
Outside of Sweden: Polar is a payment infrastructure platform for developers and AI-first businesses, raising a $10 million seed round led by Accel. The CEO previously co-founded Tictail, which was acquired by Shopify in 2018.
Bullish: Global VC Endeavor Catalyst is about to raise $300 million for its fifth fund. This is still the biggest as it appears to deepen the bets on burgeoning startups in emerging markets.
Last but not least, it's important
Chime's early investor, founder-turned founder, VC Alexa Von Tobel is ready for Fintech 3.0. “The next wave of innovation doesn't come from superficial tweaks, not from the reinvention of basic deep products, but a tool to meet the changing economy and the needs of a more diverse and digital native population,” she told TechCrunch in an interview.