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This week we talk about Wiz’s bold move, the public VC feud, Legal Tech’s new capital, and a16z’s close call. Let’s go!
The most interesting startup stories of the week
Wiz says no to Google: Pulling out of the search giant’s $23 billion buyout offer wasn’t an easy decision for the fast-growing cybersecurity startup, which was founded four years ago and valued at $12 billion in May. “Saying no to such humiliating offers is difficult, but with our exceptional team, I feel confident in making this choice,” Wiz CEO Assaf Rappaport wrote in a letter to his staff. The company is now aiming to hit $1 billion in ARR by 2025, and an IPO, though Rappaport didn’t provide a timeline for a potential listing. Learn more
Cohere Beats Rivals in Generative AI:Cohere, a Canadian startup that builds language models for specific businesses rather than consumer applications, has raised $500 million at a valuation of $5.5 billion. The company was generating $35 million in annualized revenue as of the end of March, compared to about $13 million by the end of 2023, according to Bloomberg. Cohere may be growing fast, and investors are clearly willing to pay a premium for that growth: The valuation is 157 times average annual revenue, to be exact. Learn more
VCs See Opportunity After CrowdStrike Goes Down:In 2024, a simple software update probably won’t be enough to take down so many of the world’s most important computer systems. But some venture capitalists believe a wave of new startups could help prevent such a situation from happening again. Learn more
Rekindling a decade-old drama: Venture capitalist David Sacks and Rippling founder Parker Conrad had a public spat over X, with many members of Silicon Valley’s elite taking sides. Accusations flew and sides were chosen. Venture capitalists typically try to be sympathetic to founders, but such public spats could damage the industry’s reputation. Learn more
The most interesting fundraisers of the week
Until recently, startups haven’t had much success selling technology to legal professionals. But times may be changing. We saw two deals in the legal tech space this week.
Legal growth and profitability: Clio, a Canadian software company that helps law firms operate more efficiently with its cloud-based technology, was founded 16 years ago. It seems the company is finally hitting its stride. This week, it raised a $900 million Series F round at a $3 billion valuation, nearly double the value it achieved in 2021. The profitable company also increased its ARR to $200 million, up from $100 million two years ago. Clio’s growth has accelerated thanks to its integrated payments and AI offerings. Learn more
The Harvey Affair: Harvey, a two-year-old legal AI pilot, has landed a $100 million round led by GV at a valuation of $1.5 billion, up from $715 million last December. While investors are betting big on Harvey’s future, lawyers may be reluctant to use it widely, given “the propensity of language models to spout toxic and fabricated facts,” writes TechCrunch’s Kyle Wiggers. Learn more
Staying on top of things:Vanta, a company that helps businesses stay secure and compliant, has raised a $150 million Series C round at a valuation of $2.45 billion. Founded six years ago, Vanta started out helping small businesses get certified, but now it wants to become the go-to security partner for large enterprises as well. Learn more
Prevent sensitive messages: Lakera, a Swiss startup that protects generative AI applications from malicious messages and other threats, has raised $20 million in Series A funding. The company’s software protects against messages that could force language models to disclose private information. Learn more
The most interesting venture capital and fund news this week
The A16Z’s Close Call:A security researcher discovered a major flaw in a16z’s website that could have exposed the company’s sensitive data. The researcher found that the bug gave access to emails and passwords. Fortunately for the prominent venture capital firm, the flaw was quickly patched and no data breach occurred. Learn more
Venture capitalists continue to invest in AI:New data from Crunchbase shows that generative AI startups are on track to surpass their impressive $21.8 billion fundraising haul last year. Learn more
Last but not least
From his high school bathroom, 17-year-old Eric Zhu launched Aviato, a platform that analyzes private market data and aims to compete with the heavyweights of private market intelligence: PitchBook and Crunchbase. Learn more
techcrunch
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