STARTUP X
The F42 brief #008
👋 Hi, I’m Derek, and welcome to the Fusion42 newsletter! This is your go-to source for navigating the startup ecosystem and making things easier for everyone involved. Here, beyond Consensus views for Maverick Founders and Investors to overcome common challenges, so you can build and scale with confidence. No BS , no Fluff, just the TREWS to help you get **it done. Join 3,000+ founders and discover what truly matters for your venture—and how to set yourself up for lasting success.
Here’s your Monday dose of The F42 Brief, where we give you essential updates and innovations that are moving and shaping our startup space.
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 suff 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
Service as Software (SaS): A New Era in Tech
Service as Software (SaS) is shaking up the tech world, turning the usual Software as a Service (SaaS) model on its head. Instead of selling software tools for people to use, SaS companies are now harnessing AI to deliver entire services through software. This shift could unlock a massive $4.6 trillion market, with AI agents stepping in to perform complex tasks that were once exclusively human.
At the core of SaS are AI agents—intelligent programs capable of making decisions, taking action, and adapting to their surroundings and user feedback. Powered by large language models, these agents don’t just organise workflows; they’re transforming how tasks are completed by mimicking human behaviour.
Industries set for SaS transformation include:
Sales and Marketing: AI agents can manage tasks like crafting personalised emails and booking demos.
Software Engineering: AI is changing how developers create and manage systems.
Cybersecurity: AI agents could handle routine tasks like managing alerts and coordinating across tools.
This new approach might even reshape pricing, moving from per-user fees to outcome-based charges, such as the number of qualified leads or closed deals. The SaS revolution is just beginning, and it’s poised to redefine how services are delivered across various industries.
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
Last week, 15 new venture capital funds launched, Global venture capital trends are shaping the future of tech and sustainability.
Asia: New funds target deep tech in Singapore, tech connectivity between China and Portuguese-speaking countries, and Indonesia’s growing tech sector.
United States: Early-stage investments focus on AI, robotics, and climate tech, especially in Colorado and Michigan.
Europe: Multiple funds in the Netherlands are fueling sustainability, healthy food systems, and green technology startups.
Sino-Lusophone Technology and Innovation Fund
A new venture capital fund launched by Zhuhai Da Heng Qin Group to support start-ups connecting China and Portuguese-speaking countries.
Tamarack Global's Opportunities II fund
A $72 million venture capital investment fund by Tamarack Global focusing on early-stage deep-tech companies in energy, AI, space, and more.
Axeleo Green Tech Fund
Debut green tech industry fund by Axeleo targeting €125 million with a goal of €250 million for sustainable technology investments.
Nodem Capital Continuation Fund
A continuation fund by Nodem Capital focused on secondary liquidity for assets in Emerging Europe, Turkey, LATAM, SEA, and India.
Cottonwood Technology Fund
Netherlands Enterprise Agency invested into Cottonwood Technology Fund seed fund for deep tech and hard science startups.
Natural Ventures Netherlands
Netherlands Enterprise Agency invested into Natural Ventures Netherlands seed fund addressing global food and water security.
Lumaux Capital
Netherlands Enterprise Agency invested into Lumaux Capital seed fund for high-tech startups in robotics, energy transition, and mobility.
LUMO Rise
Netherlands Enterprise Agency invested into LUMO Rise seed fund supporting impact-driven digital technology startups.
ECFG Growth Ventures
Netherlands Enterprise Agency invested into ECFG Growth Ventures seed fund focused on high-tech manufacturing and SMEs in B2B sectors.
Value Factory Ventures (ECG Ventures)
Netherlands Enterprise Agency invested into Value Factory Ventures (ECG Ventures) seed fund for agrifood, climate, and circular economy startups.
Range Ventures Fund
A $39 million venture capital fund in Denver focusing on tech startups in Colorado at pre-seed and seed stages.
Pymwymic Healthy Food Systems Fund
A €71.5 million fund by Pymwymic investing in agriculture, foodtech, and impact ventures promoting healthy food systems.
Nanyang Frontier Fund
Singapore’s first deep tech fund by NTU and Walden International, aimed at scaling NTU spin-offs with a target of S$50 million.
Zhipu Ecosystem Fund (Z Fund)
Zhipu AI's venture capital fund focusing on early-stage startups developing large language models, targeting $211 million.
Granite Asia Technology Investment
Granite Asia, with INA, invests up to $1.2 billion in Indonesia's technology sector, focusing on equity and hybrid capital investments.
What’s on at F42 this week,
Join our online sessions:
AI For Startups
Fundraising Fluency
Pitch Kung Fu
💡Innovator Spotlight
Highlights from Anthropic's Builder Day Hackathon
Anthropic, in partnership with Menlo Ventures, recently hosted its inaugural Builder Day Hackathon, bringing together over 200 developers at its San Francisco headquarters. The event showcased the potential of Claude, Anthropic’s AI assistant, as participants competed to create groundbreaking applications. After hours of coding, the top three projects were selected by Anthropic’s CEO Dario Amodei and other key judges, who awarded tens of thousands of dollars in prizes and API credits to the winners.
Top Projects:
1st Place: A robotic arm controller that used Claude’s computer skills to operate machinery by simply referencing the uploaded instruction manual, showcasing AI’s potential in automating complex tasks without custom programming.
2nd Place: An innovative “anti-captcha” app that detects when AI agents are attempting to bypass verification puzzles, addressing the need for advanced security as AI becomes more human-like in its capabilities.
3rd Place: A collaborative agent-driven tool that improves product requirements documents (PRDs). Claude-led AI personas (like a UX lead and data scientist) debate improvements, generating high-quality PRDs in just minutes.
These winning ideas highlight the versatility of Claude in robotics, cybersecurity, and product management. As AI capabilities evolve, innovations like these could soon redefine industries and enhance productivity across the board.
FUSION42 RAISE SUMMIT
🛠️ Tool of the Week
📧 Loops, backed by Y Combinator, offers a unified platform for sending product, marketing, and transactional emails. With over 7.5k weekly downloads of their Node SDK, it's touted as an essential tool for modern SaaS companies. Its market impact includes integration with platforms like Supabase and Bubble, and it stands out in an industry striving for efficient communication. Current challenges include balancing user engagement and deliverability while staying on brand. For startup founders, the key takeaway is the importance of seamless and efficient email communication in scaling their ventures.
🎓 Loops demonstrates a surprising yet valuable lesson in prioritizing user experience across diverse teams. By designing an intuitive interface accessible to designers, engineers, and marketers alike, Loops boosts productivity and harmonises workflows. This approach highlights the power of integrating user experience with design, making UI accessibility a priority. Founders could benefit from adopting such inclusive design principles to enhance team collaboration and product effectiveness.
🤔 When considering your own tools and processes, how can you ensure they promote both efficiency and collaboration among diverse team members? 🌱
📌 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.
Please let me know what you think of it, love a feedback loop 🙏🏼
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For the ❤️ of startups
✌🏼 & 💙
Derek