STARTUP X
The F42 brief #020
Here’s your Monday dose of The F42 Brief.
What’s inside »
📈 Trending Now
The one thing that’s making all the noise …. with a bit of fact checking.
💸 New Funds looking to give you cash
Who has launched a new fund to invest in startups last week.
💡Innovator Spotlight
Founders that are doing stuff differently.
🛠️ Tool of the Week
Something useful to up your startups velocity.
📌 Note to Self
Stuff I constantly remind myself about, don’t want make the same mistakes again.
📈 Trending Now
Meta’s decision to scrap its third-party fact-checking program across Facebook, Instagram, and Threads has caught my attention. They’re replacing professional fact-checkers with a crowdsourced system called Community Notes. Sound familiar? It’s pretty much what X (formerly Twitter) has been doing.
Let’s break it down.
Why the Shift?
Meta says third-party fact-checkers have become too politically biased, undermining trust instead of building it. By stepping away from professional oversight, they’re banking on the idea that a lighter touch on moderation will champion free expression and reduce accusations of censorship.
What Are Community Notes?
Think crowdsourced accountability. Users can add notes to questionable posts, providing context or insights. Other contributors then rate these notes, and only those that achieve consensus across diverse perspectives get displayed. It’s a nice theory, but will it work?
The Challenges
Effectiveness: Critics argue that professional fact-checking is still better for tackling politically charged misinformation. Research shows many accurate notes don’t get published due to disagreements between contributors.
Manipulation Risks: Crowdsourced systems can be gamed by coordinated groups, though Meta claims they’ll use algorithms to counter this.
What’s the Big Deal?
Without professional oversight, there’s a risk misinformation could spread more easily. Regulators might not love this either, especially in regions pushing for tighter controls on tech platforms.
This isn’t just a move towards decentralisation; it’s a bet on the wisdom of crowds over the precision of experts. Personally, I’m sceptical. While Community Notes could work in some contexts, the stakes feel too high when it comes to the kinds of viral misinformation Meta’s platforms have struggled with in the past.
What’s your take? Is this a step forward for free expression, or are we letting the foxes guard the henhouse? Let me know!
If you have not joined the Fusion42 Community on Telegram — A space for Founders, Framers, and Funders who show up to get **it done,
it is probably time to do so.
For the ❤️ of Startups
💸 New Funds Looking to Give You Cash
🚀 $3.0B Across 21 New Funds
A fresh wave of venture capital funds is injecting $3.0B into 19 investment vehicles, targeting healthcare, AI, sustainability, and fintech. These funds are reshaping the global startup ecosystem by fuelling high-growth industries and market-defining innovations.
Where the Money is Going
🌍 Geography at a Glance
North America (47% of funds) – Heavily focused on multi-stage deals across technology, defence, and AI, with notable activity in seed-to-growth investments.
Europe (21% of funds) – Emphasising technology-driven ventures (from healthtech to deep tech) with cross-border expansion in mind.
Asia-Pacific (26% of funds) – Backing quantum computing, advanced materials, defence tech, and emerging markets, reflecting a push for next-gen infrastructure.
MENA (5% of funds) – Focusing on bridging local ecosystems with global opportunities, particularly in healthcare, life sciences, and sustainability.
🎯 Sector Priorities
Investment trends are shifting, with healthcare leading the charge, followed by AI, sustainability, and emerging plays in fintech.
Healthcare (25% of funds) – From healthtech and medtech to biotech, many funds see healthcare as a resilient growth sector.
AI (20% of funds) – Infrastructure and core AI technologies dominate, with several funds patenting novel AI-driven approaches.
Sustainability (20% of funds) – Clean energy, decarbonisation, and climate-focused startups gain traction in multiple regions.
Fintech (10% of funds) – Payment systems, lending, insurtech, and consumer internet solutions remain attractive bets.
Other sectors (25% of funds) – Encompassing defence, frontier tech (robotics, space, BCI), real estate, tourism, and more.
🚀 Investment Stages
Funding allocation is split between:
Early Stage (60% of funds) – Backing pre-seed to Series A companies, especially those tackling healthcare, AI infrastructure, or urgent sustainability challenges.
Growth Stage (40% of funds) – Scaling established startups in sectors like advanced materials, energy, consumer internet, and beyond.
What This Means for Founders
The data reveals North America taking the largest slice of new fund launches, with healthcare stealing the spotlight among top sectors. Startups in AI, sustainability, and fintech—particularly across Europe and Asia-Pacific—should align fundraising efforts to capitalise on fresh, globally diverse capital. Engage early, tailor your pitch to each region’s focus, and be ready to demonstrate both market fit and sustainable growth potential.
United Ventures
United Ventures is a new venture capital investment fund established by seven state-owned banks in Uzbekistan, with a charter capital of 525 billion soums (approximately US$40.51 million). The fund, led by CEO Azizbek Kurbonov, aims to invest in promising local startups and nurture the entrepreneurial ecosystem through strategic financing, incubation, and acceleration programs.
SevenGen Investment Partners
SevenGen Growth Fund focuses on high-impact investments in profitable companies across the energy, mobility, built environment, and industrial decarbonisation sectors in the Benelux, Germany, and the Nordics. It delivers growth capital to accelerate impact and scalability, targeting businesses that have outgrown the venture capital phase. The fund aims to drive sustainable growth and innovation with the support of a €40 million investment from the European Investment Fund.
Louisiana Economic Development (LED)
Louisiana Growth Fund: A $50 million venture capital fund with matching dollars from equity and incubator partners, totaling $100 million. It invests in high-growth, technology-enabled startups across Louisiana.
Overlap Holdings
Overlap Holdings Flagship Fund 1 (OHF1): A $33 million venture capital fund focusing on early-stage startups in frontier tech sectors like Energy, Life Science, Materials Science, Space, Robotics, and Semiconductors.
JDP Global
2040 Precision Fund invests in AI, Autonomy, Robotics, and Brain-Computer Interfaces (BCI) in Neuroscience. It targets early-stage and growth-stage startups, focusing on transformative technologies like automation, cognitive tech, and next-gen data processing. The fund aims to accelerate breakthroughs in these areas by supporting companies pushing technological boundaries.
Insight Innovation Fund
Focuses on AI infrastructure, including decision intelligence, automation, AI orchestration, and cybersecurity. Provides startups with technological foundations and strategic guidance. Launched on February 4, 2025.
Info Edge India
Launched on February 7, 2025, this fund is backed by Info Edge and Temasek, targeting early-stage startups in sectors like consumer internet, fintech, edtech, and software. The total commitment is expected to exceed INR 2,000 crore.
Impact Ventures Ltd
Impact Ventures III is a €40M VC fund supporting early-stage startups and SMEs in Hungary and Central Eastern Europe, focusing on healthtech, medtech, edtech, recycling, waste management, and clean energy.
Ignition Point Venture Partners
Shin Infrastructure Fund: Targets startups in food and agriculture, wellness, real estate, and tourism. It invests from the seed stage onwards, aiming to expand beyond traditional gas utility business through partnerships.
Hitachi Ventures GmbH
HV Fund IV: A $400 million venture capital fund focused on fostering disruptive innovations in startups with cutting-edge digital technologies and new frontiers. Investment areas include Healthcare, Environment, Social Businesses, Next-Gen Mobility, Smart Life & Health, Industry, Energy & Environment, Digital, and New Frontiers. The fund aims to establish unique partnerships between startups and Hitachi businesses, contributing to strategic growth and addressing global technical, social, and environmental challenges.
GTMfund
GTMfund's second fund is a venture capital investment vehicle that focuses on early-stage companies at pre-seed, seed, and occasional Series A stages. The fund invests with check sizes ranging from $500,000 to $1.5 million, specifically targeting startups that require strategic support in go-to-market strategies.
Foundation Ventures
FVFII: A $25 million fund focused on supporting early-stage and growth-stage startups in Egypt, with an additional allocation for promising startups in Africa. The fund aims to invest in companies from the ideation stage to regional and global expansion, targeting high-growth startups and market leaders with exceptional tech talent and sustainable innovation. It is backed by investors such as the Egyptian American Enterprise Fund (EAEF), the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), and Onsi Sawiris.
Elevate Capital
SSBCI Venture Direct Program: This program focuses on investing in underrepresented entrepreneurs, including women, BIPOC, LGBTQ+ communities, and those with limited regional access to capital. It supports startups from healthcare, life sciences, cleantech, sustainability, and other target sectors, investing at the earliest stages. The program will provide up to $15M over the next four to six years to Oregon startups, requiring a 1:1 match at the time of investment and ensuring at least 40% of the portfolio consists of SEDI-owned businesses.
CF Private Equity
CF Venture Partners XV focuses on information technology, consumer, and healthcare sectors, with $539 million in commitments. It targets capacity-constrained funds globally.
CF Private Equity
CF Venture Direct Opportunities II has $100 million in commitments, focusing on mid-to-late-stage, venture-backed companies.
CF Private Equity
CF Blockchain Ventures, with $25 million in commitments, focuses on blockchain and digital asset investments.
CIG Companies
CIG Fund 2 focuses on sustainable investments across various sectors, targeting significant asset appreciation. It offers access to high-growth potential platforms and emphasizes security.
Cherry Ventures
Cherry V: A $500 million fund for early-stage rounds and follow-on rounds at Series B and beyond, with a focus on European tech startups. It includes a flagship early-stage fund and an opportunity fund to support companies beyond Series B.
Beaten Zone Venture Partners
Beaten Zone Venture Partners is a new venture capital investment fund focused on defence technology. The fund initially secured over $10 million in commitments towards a target of $60 million. They aim to invest in sovereign early-stage businesses, particularly those with products that have military applications.
Aviva Investors
Aviva Investors Venture & Growth Capital LTAF is focused on investing in early-stage companies and technologies, primarily in the UK, Europe, and North America. The fund is valued at approximately £150 million initially, with a commitment from Aviva itself. It targets sectors like Fintech, Insurtech, Healthtech, Science and Technology, and Climate and Sustainability, with investment opportunities spanning various venture and growth stages. The fund is structured to provide capital growth and aims for an annual return of at least 15% over a five-year period.
Hamilton Lane
Venture Access Fund (VAF) is a venture capital investment fund that achieved $613.5 million in commitments, surpassing its $500 million target. It invests in high-performing and oversubscribed venture portfolios, focusing on primary and secondary transactions.
💡Innovator Spotlight
The Rise of Deep Research AI Tools: Is This the End for Consultants?
The rise of Deep Research AI tools has sparked fierce debate about the future of consultants. Will AI wipe them out? Maybe the low-grade, box-ticking ones. But the idea that AI alone can replace top-tier strategic thinking is nonsense. What we’re seeing is a shift—AI is taking over the heavy lifting of research and data-crunching, leaving consultants to prove their worth in new ways.
Four Deep Research Platforms Leading the Charge
AI-powered research tools are making information retrieval faster and more efficient than ever. Here are four of the most powerful players:
Google’s Gemini – Google has integrated Deep Research into Gemini, enabling it to explore complex topics, compile detailed reports, and act as a personal research assistant. (Google Gemini)
DeepSeek’s Model, DeepSeek-V3 – This Chinese AI model has exploded in popularity, even surpassing ChatGPT in some markets. It offers advanced research capabilities that challenge existing tools. (DeepSeek)
Semantic Scholar – Built by the Allen Institute for AI, this tool is focused on scientific literature, summarising key research and identifying important papers. A must-have for anyone navigating academic and technical fields. (Semantic Scholar)
OpenAI’s Deep Research – A tool that autonomously searches, analyses, and synthesises information from multiple sources, producing structured reports at speed. (OpenAI Deep Research)
Where’s the Competitive Edge?
Here’s the catch: AI only works with what it already knows. If everyone is using the same AI tools, where’s the differentiation? The advantage is no longer in having the data—it’s in knowing what to do with it.
AI isn’t out there building relationships, uncovering hidden motives, or thinking laterally about how customer behaviour connects with wider business strategy. It won’t challenge assumptions, question the brief, or dig into the messy, human side of decision-making. That’s where consultants still have the upper hand.
Efficiency vs. Innovation
AI can make research super-efficient, but it can’t invent new strategies. It can find correlations but doesn’t push beyond them into unexpected insights. Consultants who rely purely on AI will become as replaceable as the research tasks AI is now automating.
The ones who thrive? They’ll use AI to free up time for deeper analysis, more creative problem-solving, and building stronger client relationships. Instead of churning out reports, they’ll focus on the real edge—helping businesses make sense of the noise and take action that AI alone would never predict.
AI Won’t Kill Consulting—But It Will Force an Evolution
Deep Research AI is here to stay. Low-value, template-driven consulting? It’s on borrowed time. But the best consultants will adapt, using AI to amplify their impact rather than replace their judgment.
The future of consulting isn’t about competing with AI—it’s about using it better than everyone else.
🛠️ Tools of the Week.
Why the Hell Isn’t This Happening Everywhere?
Picture this: 2000 of the brightest minds in AI—students, new grads, and researchers—gathering in San Francisco to hear from legends like Elon Musk, Satya Nadella, and Andrew Ng. That’s YC’s AI Startup School. It’s bold. It’s brilliant. But here’s the problem: why the hell isn’t this happening everywhere?
🚀 AI Isn’t Just for Startups—It’s for Everyone
AI is shaping everything—healthcare, logistics, finance, government. Yet, most organisations are barely playing catch-up. Startups might be the trailblazers, but corporates and governments desperately need AI expertise too. They’re drowning in outdated processes and inefficiency.
Let’s be real: if they don’t embrace AI now, they’ll drag entire industries down with them. AI schools like this aren’t a luxury; they’re a necessity.
🌍 Why San Francisco? What About the Rest of the World?
This kind of event should be happening in every major city. London, Dubai, Bangalore, Berlin, Nairobi—all are brimming with talent. So why aren’t they hosting their own AI schools?
Imagine if Dubai pulled together an AI event to connect its tech pioneers with global leaders. Or if Berlin brought its talent and industry giants together to tackle real-world problems. The ripple effects of these collaborations could redefine industries—and cities.
💡 Join Our AI Startup Calls
We run bi-weekly calls on AI for startups, diving into the latest trends, workshopping real "how-to’s," and exploring cutting-edge tools. Whether you’re looking to stay ahead of the curve or get hands-on with the latest innovations, these sessions are built for you. Don’t miss out—be part of the conversation shaping the future of AI.
🤖 It’s Not Just for Coders
One of the best things about YC’s programme? You don’t need a PhD to take part. It’s open to software engineers, robotics pros, and even self-taught builders. This inclusivity is where the magic happens.
So why aren’t corporates and governments taking the same approach? They could easily run AI schools for their teams, empowering people to solve problems and drive innovation from within.
🛑 Stop Waiting for Silicon Valley
The world can’t keep waiting for Silicon Valley to solve everything. AI is moving too fast for the rest of us to sit on our hands. Startups shouldn’t be the only ones building the future.
Corporates: When was the last time you genuinely innovated? Be honest. AI could be the solution, but you’re too caught up in your outdated playbooks.
Governments: Why aren’t you investing in your people? AI could revolutionise public services, infrastructure, and even climate action. But you’re sitting on your hands, letting progress happen elsewhere.
🔥 The Call to Action
AI Startup School is brilliant, but it’s just the beginning. Every city should be hosting its own version. If you’re in London, Dubai, or Bangalore, start connecting local talent with global innovators. If you’re a corporate or a government, stop waiting for Silicon Valley to gift you the future. Build it yourself.
The truth is simple: AI isn’t waiting for you. It’s here, it’s happening, and if you’re not actively leading, you’re already falling behind. So stop watching. Start building. The future belongs to those who take action.
📌 Note to Self
Thank you for reading. If you liked it, share it with your friends, colleagues and everyone interested in the startup Investor ecosystem.
If you've got suggestions, an article, research, your tech stack, or a job listing you want featured, just let me know! I'm keen to include it in the upcoming edition.
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For the ❤️ of startups
✌🏼 & 💙
Derek