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This week brought us mixed messages. A fresh IPO filing, but a bleak outlook for exits overall. New funding rounds, but founders frustrated over lack of capital. And in the midst of it all, some VCs are still finding ways to create liquidity and raising funding for more bullish times.
Most interesting startup stories from the week
In a week of contrasts, startups exhibited both confidence and insecurity, and even second-time founders weren’t spared from struggles.
Fearless or not: Design software company Figma filed its confidential paperwork for an IPO, ignoring the fears that made both Klarna and StubHub pause their IPO plans this month following the stock market crash triggered by tariff announcements.
Figma, however, isn’t worry-free: It sent a cease-and-desist letter to fast-rising “vibe coding” rival Lovable over the term “Dev Mode.”
Frustrated: U.K. founders expressed frustration at the widening gap between funding raised by British startups and their Silicon Valley peers. According to Dealroom, British startups raised just £16.2 billion (approximately $21.5 billion) last year compared to the approximate $73.8 billion (£65 billion) raised in the U.S.
Smashed: Smashing, an AI-powered reading curation app launched last June by Goodreads’ founder Otis Chandler, shut down due to disappointing growth.
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Netflix, Box, a16z, ElevenLabs, Wayve, Sequoia Capital, Elad Gil — just some of the 250+ heavy hitters leading 200+ sessions designed to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch, and a chance to learn from the top voices in tech. Grab your ticket before Sept 26 to save up to $668.
San Francisco | October 27-29, 2025 REGISTER NOWSuspended: BluSmart, an Indian Uber rival using EVs, apparently suspended service a day after the Securities and Exchange Board of India launched an investigation into Gensol Engineering, which shares its co-founders.
Back: One month after reassuming his role as Bolt’s CEO, Ryan Breslow unveiled a new “super app” that reflects his vision for the fintech company he founded in 2014.
Investigating: Rippling’s efforts to serve Deel CEO Alex Bouaziz have been significantly hindered by the fact that he and his lawyer are now in the UAE, TechCrunch learned. But the company isn’t giving up and is also pushing for Revolut to reveal who paid off Deel’s alleged spy.
Tailwinds: OpenAI is reportedly seeking to buy Windsurf for $3 billion. The startup was previously known as Codeium, whose popular AI coding assistant competes with Cursor and the like.
Most interesting VC and funding news this week
This week brought us funding news that’s hinting at better days ahead, with increased valuations and bigger funds that may no longer be the exception.
Growing: Marshmallow, a British insurance startup, raised $90 million in equity and debt at a valuation slightly above $2 billion. Focusing on customers left out by traditional insurers, it boasts a million drivers insured and a profitable annual revenue run rate of $500 million.
Hammered win: Hammerspace, a company that helps clients like Meta use their unstructured data, raised $100 million in funding to expand its business. The valuation is above $500 million, according to sources.
New chapter: Chapter, a Medicare advisory startup co-founded by former U.S. Republican presidential candidate Vivek Ramaswamy, raised a $75 million funding round at a $1.5 billion valuation.
Phantom limbs: Austin, Texas-based Phantom Neuro raised $19 million to fund the next stage of development of its product, a subdermal wristband-like device that lets amputees control prosthetic limbs.
Resilient: Conifer, a startup whose electric hub motors don’t require rare earth elements, secured a $20 million seed round from deep tech investors.
Sunny days: Arnergy, a clean tech startup backed by Bill Gates’ Breakthrough Energy Ventures, locked down a $15 million Series B extension to expand solar access in Nigeria.
Bullish: Peter Thiel’s Founders Fund completed the raise of its third growth fund. Closing at $4.6 billion, it is a big step up from its previous $3.4 billion growth fund — which could be another sign that the market has gone from bearish to bullish again.
Last but not least
VCs need liquidity, and they often know how to find it even when there are no IPOs in sight. In the latest episode of StrictlyVC Download, Industry Ventures CEO Hans Swildens broke down the way in which firms are navigating this issue.