Startups Weekly: AI in ADHD, Layoffs & VC Funding

This week's Startups Weekly highlights the diverse world of startups, from layoffs and controversy to promising innovation powered by ai.

Most Interesting Startup Stories From The Week

This section delves into the most interesting startup stories of the week, showcasing a mix of challenges and breakthroughs.

• Bending Spoons, an Italian app company, announced plans to lay off 75% of the staff at WeTransfer, a Dutch file transfer startup it acquired in July. This follows previous layoffs at other acquired companies, including Evernote, Filmic, and Meetup.
• Warp, a YC-backed payroll startup, found itself embroiled in controversy after disavowing one of its affiliate accounts on X. This affiliate account engaged in risky marketing tactics, raising questions about the company's oversight and decision-making processes.
• Neurode, a Sydney-based healthtech startup, has developed a headband that utilizes light electrical stimulation in the prefrontal cortex to treat ADHD symptoms like lack of focus. This ai-powered wearable device is currently in private beta and aims to become an FDA-approved medical device.

Most Interesting Fundraises This Week

Despite the challenging market conditions, startups continue to secure funding. This section explores the week's most noteworthy fundraising activities.

• Formo, a Berlin-based food tech startup specializing in dairy-free cheese, raised a $61 million Series B round to scale its production of koji protein-based cheese.
• Qualifyze, a Frankfurt-based startup focused on pharmaceutical supply chains, secured a $54 million Series B round. This funding will be used to expand operations, particularly in the U.S., and integrate more analytics and ai into its products.
• Neat, a Paris-based embedded insurance startup, raised €50 million in a Series A round, combining debt and equity financing. This funding will drive Neat's growth in the embedded insurance market.
• Smartcat, a vendor of automated translation tools for enterprises, raised a $43 million Series C round led by Left Lane Capital. This funding will support the company's team expansion and investment in product development, marketing, and sales.
• Finally, a Miami-based ai-enabled bookkeeping, accounting, and finance startup targeting SMBs, secured a $50 million Series B round of funding and a $150 million credit line.

Most Interesting VC and Fund News This Week

This section highlights the latest news in venture capital, featuring investment activities and fund closures.

• Atomico, a London-based VC firm, raised a total of $1.24 billion across two funds: Atomico Venture VI, primarily focused on Series A investments, and Atomico Growth VI, targeting Series B to pre-IPO rounds.
• Alpha Partners announced a $153 million third fund that will continue its focus on helping seed investors exercise pro rata rights in later rounds by providing substantial funding alongside them.

Last But Not Least

This final section explores the evolving legal landscape for startups, particularly the growing impact of state-level regulations.

• As states implement increasingly diverse regulations, startups are facing challenges, including fines and bans, for non-compliance. This highlights the importance of incorporating state-level regulations into business plans early on.
• Startups can mitigate these risks by investing in compliance software or hiring legal experts who can navigate the complex legal environment.