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Global Startup News - January 10, 2023

According to reports, Microsoft intends to spend $10 billion on OpenAI, the business recognized for developing ChatGPT. Over the course of several years, the money would be used.

  • It would be Microsoft's largest startup investment in history if the purchase went through.

  • Internet users have taken notice of ChatGPT, a popular artificial intelligence conversational tool, for its capacity to respond to quite difficult queries. The innovation is viewed as a potential rival to Google's search engine.

  • This technology would probably be of interest to Microsoft for its Bing search engine.

  • The internet giant has previously made a $1 billion investment in OpenAI, having done so back in 2019.

  • Microsoft has requested a 75% equity position in OpenAI until it recovers its $10 billion investment, after which it will reduce its ownership to 49% permanently.

Khosla Ventures, a venture capital firm, is raising $3 billion, which will be distributed among three funds. Out of this sum, $1.5 billion will be raised for the company's flagship fund.

The company wants to raise $400 million for its seed fund and $1 billion for its second opportunities fund.

Startups like DoorDash, Instacart, Impossible Foods, OpenAI, Okta, and Affirm are among many that Khosla Ventures is recognized for funding.

The 2004-founded Khosla Ventures oversees $15 billion in assets.

In Q4 2022, startup funding in North America fell 63% year over year. During the quarter, VCs invested $36.1 billion in North American firms.

  • The overall amount of late-stage investments was $18.7B, a 67% decrease from the same time in 2021.

  • $14.4 billion in Series A and B capital was raised by startups, a 59% YoY drop.

  • $3 billion was raised by startups in pre-seed and angel rounds. It represents a 37% YoY decline.

  • The $1.46 billion acquisition between PTC and the cloud provider Service Max was the largest one in terms of acquisitions.

  • Startups in North America raised 10% less money overall in Q4 2022 than they did in Q3 2022.

By the end of 2022, crypto financing had reached its lowest point in almost two years. Investments were $2.3B in Q4 2022, a 75% year-over-year decline.

  • The general challenging macroeconomic circumstances that have impacted the whole tech industry are to blame for the decline in funding.

  • Due to multiple controversies that caught the attention of everyone in the last few months—from the general public to government officials—the crypto business has been in the spotlight. As a result, investors have less faith in crypto startups.

  • While 2022 began with significant investment rounds, headlined by FTX's $400 million round, it was this company's bankruptcy that set off a series of events that resulted in a great number of other businesses failing or being unable to meet their obligations to their investors.

  • The demise of TerraUSD and the cryptocurrency hedge fund ThreeArrowsCapital are two other incidents that startled the sector.

  • Overall, compared to 2021, crypto financing decreased by 40% in 2022.

Bengaluru companies raised the most money in India in 2022, with $10.8B in financing at the conclusion of the year. The amount is significantly less than the $20.8B that companies in Bengaluru raised in 2021.

  • With $3.9 billion in funding, Mumbai finished in second, ahead of Gurugram ($2.6 billion), Delhi ($1.2 billion), and Pune ($1 billion).

  • Following the global trend, the nation's overall startup funding decreased. The challenging macroeconomic climate, which has been impacted by interest rates and recession fears, is regarded as the primary cause of this decline.

  • With a $1.2B round, Byju raised the most money of any business. The sum raised by India's ed-tech industry in this round alone accounts for 50% of the total.

  • In 2022, there were just 22 unicorns, down from 46 in 2021.

  • The three most active investors in India in 2022 were LetsVenture, AngelList, and Y Combinator.

Rapid Silicon, a company based in California, has raised $30M in a Series A fundraising round to enhance the consumer experience. Advanced field-programmable gate array devices are made by the company.

  • Raptor and Gemini are its two primary offerings. Raptor is the first commercial FPGA EDA environment built on open-source software, whereas Rapid claims that Gemini offers the greatest performance-per-watt in the market.

  • The business works in sectors including telecom, automotive, data processing, etc.

  • The investment round was led by Cambium Capital, with additional investors taking part.

  • America and Pakistan both have offices for Rapid Silicon.

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