STARTUP X
The F42 brief #013
👋 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 8,000+ 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 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
Startups Have to Be AI-First
Here’s the hard truth: If your startup isn’t embracing AI at every level, you’re falling behind—fast. Slapping AI onto your product as a feature or relying on off-the-shelf tools won’t cut it anymore. The startups that win are AI-first, embedding it into everything—from internal operations to how they attract, serve, and retain customers.
AI has shifted from a “nice-to-have” to the ultimate growth engine. It’s the lever that accelerates growth, disrupts markets, and keeps you competitive. Startups that prioritise AI aren’t just playing the game—they’re rewriting the rules. Everyone else? They’re just scrambling to keep up.
But here’s what I hear all the time: “We’re not an AI company. How does this fit into our stack?”
Here’s the answer: AI isn’t just another tool—it’s the new foundation. Think of it like Microsoft Office or Google Workspace. It’s not optional, and it’s not separate. AI touches every corner of your business, from operations to customer engagement to decision-making. It’s how you work smarter, move faster, and grow better—everywhere.
Why Startups Need to Act on AI Now
Startups have a unique advantage—they’re fast and adaptable. But in an AI-driven world, speed matters even more:
Move fast: AI lets startups launch, iterate, and scale faster than ever.
Stay competitive: Your rivals are already using AI to innovate—don’t get left behind.
Stand out: Early adopters of AI set the trends and take the lead in crowded markets.
Scale smarter: AI powers automation, data-driven decisions, and better customer experiences.
Introducing the Fusion-42 Infinite AI Drive Programme
We know startups don’t have the luxury of time or endless resources to experiment. You need results—fast. That’s why we created AI for Startups, a hands-on programme to help founders and teams integrate AI seamlessly across their business.
This isn’t about becoming an AI company. It’s about becoming an AI-first company.
What You’ll Get
Develop winning strategies: Align AI with your business goals to drive growth and innovation.
Master product integration: Seamlessly embed AI into your product development lifecycle, from ideation to delivery.
Learn the fundamentals: Ignite AI-driven innovation tailored to your business needs.
Go beyond “co-pilot” mode: Leverage AI as your autopilot for scaling, automating, and growing.
Build smarter products, faster: Design solutions that adapt effortlessly to customer demands.
Accelerate time-to-market: Stay ahead of competitors with rapid, AI-powered execution.
The startups that embrace this shift are the ones that will thrive in the new AI-first world.
Are you ready to lead—or will you get left behind?
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
This week, over $4.5 billion in venture capital funding has been announced across 32 new and ongoing funds, targeting sectors like AI, life sciences, climate tech, and frontier technologies. With investments spanning the US, Europe, MENA, Africa, and emerging markets, the funds range from pre-seed to growth-stage investments, supporting a variety of transformative innovations.
Key Highlights
🌍 Global Reach: Funds target startups in diverse regions including the US, UAE, Poland, Africa, and Central Asia, with special attention to underrepresented regions like Uzbekistan and Azerbaijan.
💡 Tech-Driven Focus: Heavy investments in AI, life sciences, blockchain gaming, deep tech, and sustainability innovations, with niche funds addressing compute shortages, biodiversity, and regenerative agriculture.
🚀 Stage Variety: Ranges from pre-seed funding (e.g., Kogito Ventures, Pacific Partners) to growth-stage investments (e.g., G2 Venture Partners, Dimension Capital).
🌱 Regional Innovation Hubs: Strong regional support for Polish innovation (PFR Ventures), MENA tech (Iliad Partners), female founders (Halogen Ventures), and Canadian startups (VCCI).
This week’s announcements reflect the growing interest in supporting real-world solutions through transformative technologies, regional growth, and niche investment strategies. With a heavy focus on climate, AI, and regional hubs, the venture landscape continues to foster innovation while driving local and global impact.
Magnetar
Magnetar AI Ventures Fund LP, launched on August 26, 2024, is a $235 million venture capital fund focused on early-to-growth stage AI startups. The fund uniquely addresses challenges faced by AI startups in accessing compute resources by offering compute in exchange for equity. The strategy is designed to accelerate the development of generative AI technologies and enable startups to secure critical contracts. Magnetar aims to leverage its resources to provide the compute power necessary to support innovation in the AI sector.
Dimension Capital
Dimension II, a $500 million fund launched by Dimension Capital, focuses on companies at the intersection of life sciences and technology. It targets investments in biotech platforms, software tools, therapeutics companies, lab infrastructure, clinical development, manufacturing, and commercialization, as well as AI and machine learning. The fund plans to make about two dozen investments, ranging from single-digit millions to over $40 million, supporting startups, growth-stage companies, and even publicly traded biotechs.
IT Park Ventures
IT Park Ventures, launched on December 10, 2024, during Digital Startups Week 2024, is a $10 million venture capital fund aimed at supporting Uzbekistan’s growing startup ecosystem. The fund invests in startups across industries like Artificial Intelligence and Machine Learning (AI/ML), Green Technologies (GreenTech), Educational Technologies (EdTech), Financial Technologies (FinTech), and Game Development. Investments range from $10,000 to $1 million, tailored to the stage of each startup's development.
Pacific Partners
Pacific Partners is a newly launched venture capital fund focused on AI startups across four sectors: health and wellness, media/gaming, defense, and enterprise solutions. Targeting pre-seed, seed, and Series A funding stages, the fund aims to back 20–30 companies across Australia, Silicon Valley, and potentially the UAE. The fund has earmarked 60% of its capital for initial investments, with plans for a UAE expansion in the near future.
Yaletown Partners
Accelerate Fund IV is a $15 million early-stage co-investment fund anchored by Alberta Enterprise Corporation, with a goal to raise a total of $25 million. The fund targets Alberta-based technology startups in sectors like life sciences, digital transformation, artificial intelligence, and other emerging opportunities. It co-invests alongside angel investors, family funds, and foundations, typically providing investments of up to $500,000 for pre-Series A companies.
Laude Ventures
Laude Ventures is a $150 million venture capital fund launched in December 2024 by one of the cofounders of Databricks. The fund is dedicated to investing in early-stage companies, with a primary focus on spinouts from the University of California, Berkeley. Laude Ventures aims to help founders turn cutting-edge research into viable businesses, emphasizing innovation and academic entrepreneurship.
Iliad Partners
The Iliad Partners Tech Ventures Fund I is a $50 million venture capital fund focused on early-stage B2B software startups in the MENA region, with a primary focus on Saudi Arabia and the UAE. The fund targets startups in verticals like fintech, logistics, and proptech, investing at Pre-Series A and Series A stages. Backed by regional and global investors, including Jada Fund of Funds, the Olayan Family, and Masarrah Investment Company, the fund also allocates 10% of its investments to Europe, particularly Greece.
Humba Ventures
Humba Ventures, the sister firm to Susa Ventures, has raised a $40 million fund to invest in deep tech and defense tech startups. The fund targets companies often working with the U.S. government and accepts funding primarily from countries such as the U.S., U.K., New Zealand, Australia, and Canada. Humba Ventures supports startups at various stages, focusing on technological viability and team capability to drive innovation in critical sectors.
LongGame
LongGame Venture Capital Fund, Will Harborne, officially launched on December 12, 2024, with a target size of $40 million. The fund focuses on early-stage longevity biotech companies, investing in groundbreaking therapies such as stem cell therapies, gene editing, and senolytics, which have the potential to significantly extend human lifespan. LongGame aims to leverage insights from both the biotech and crypto industries to foster innovation in the field of longevity.
Aegis Capital
Securing €10.7 million, Aegis Capital concentrates on early-stage companies innovating in HealthTech and Longevity sectors. Its mission is to foster technologies addressing demographic changes in developed countries. The fund is supported by private investors from healthcare, new technologies, and capital markets.
iif VC
With a total of €16.4 million, iif VC targets tech companies with global potential and strong R&D capabilities. It operates a unique co-investment model, allowing private investors to invest directly in portfolio companies on a deal-by-deal basis without becoming limited partners (LPs). This flexible approach promotes tailored investments and scalability for its portfolio companies.
Kogito Ventures
Backed by PFR Ventures, Kogito Ventures has launched its second fund, focusing on pre-seed and seed-stage companies. The fund targets Polish startups and Polish founders abroad, maintaining a generalist approach across industries. Kogito Ventures plans to invest between PLN 0.5 million and PLN 5 million per company, reserving nearly half of its capital for follow-on investments. Their first fund invested in 18 companies and achieved a successful exit with PsiBufet, demonstrating their ability to identify and support high-potential startups.
Lowercap
With €10.2 million from PFR Ventures and contributors, Lowercap continues the work started by DFR Inwestycyjny, the first regional venture capital fund established in 2017 in Lower Silesia. The fund targets tech companies in the late seed and early growth phases, focusing on businesses with recurring revenues and growth potential.
4growth VC
Backed by €12 million from PFR Ventures and FENG contributors, 4growth VC focuses on growth-stage startups in sectors like FinTech, InsurTech, and MedTech. The fund plans to invest between €935,000 and €2.8 million in companies with ready products and recurring revenues. Saventic Health joined its portfolio earlier this month, showcasing its commitment to scaling high-potential companies.
Topology
Topology, founded by ex-Paradigm investor Casey Caruso, is a $75 million early-stage venture capital fund focused on frontier technologies. The fund aims to support transformative innovations in areas like brain-computer interfaces, decentralized protocols, semiconductors, and new city development.
Makia Capital
The Makia Venture Fund focuses on investing in pre-and-post IPO opportunities within small and medium enterprises (SMEs). The fund plans to back approximately 20 companies with an average ticket size of Rs 10 crore per investment. Its strategy includes pre-IPO investments, anchor opportunities in IPOs, and preferential issues for listed high-growth companies.
BS2 Ventures
BS2 Ventures, the new corporate venture capital arm of Banco BS2, has launched with nearly $17 million (R$100 million) to invest in startups addressing challenges in the corporate finance market. The fund focuses on disruptive technologies in areas such as credit, payments, foreign exchange, and insurance. BS2 Ventures plans to invest in 12 to 15 companies (R$5 million each on average) and serve as a limited partner in 3 to 4 strategically relevant VC funds.
Redesign Health
Redesign Health has closed a $175 million fund to create dozens of healthcare startups over the next few years. The fund focuses on addressing key areas such as healthcare labor solutions, value-based care, and data interoperability, supporting innovation in these critical healthcare sectors.
Protego Ventures
Protego Ventures (Lital Leshem & Lee Moser) is a newly launched venture capital fund and the first in Israel exclusively focused on military technologies. The fund has raised $70 million in just two weeks, with a target of $200 million (increased from the initial $150 million due to high demand). Protego aims to invest in cutting-edge defense innovations, with an initial investment of $5 million in the drone company XTEND. The fund highlights growing global interest in defense tech, particularly from U.S. institutional investors.
Privium Fund Management
The Biodiversity Impact Fund (BIF) is a €500 million venture capital fund focused on regenerative agriculture, sustainable forestry, ocean preservation, sustainable fishery, agritech, and aquatech. The fund is set to launch in Q1 2025 and aligns with SFDR Article 9 regulation. It primarily targets commitments from family offices in the Netherlands.
Movens Capital
The Movens Fund II is a EUR 60 million (potentially extending to EUR 100 million) venture capital fund focused on technology-driven companies in Poland and Central and Eastern Europe. The fund targets early-stage innovative companies in sectors such as AI, machine learning, software, marketplaces, ClimateTech, healthcare, fintech, eCommerce enablers, edtech, and the future of life and work. It is part of the EBRD's Early-Stage Innovation Facility II.
Beam Ventures
The Beam Foundation is launching a $150 million venture fund, Beam Ventures, in Abu Dhabi in the first half of 2025. The fund focuses on blockchain-based gaming projects, including gaming infrastructure, artificial intelligence, augmented reality, and user-generated content. It also provides funding and an accelerator program for startups in the gaming sector.
Sanari Capital
The Sanari 3S Growth Fund, sized at approximately $80 million (R1.5 billion), recently announced its final close in December 2024, marking the culmination of a fundraising process that began in 2022. The fund targets well-established, founder-run, owner-managed, and family-owned businesses in Africa, particularly South Africa. Sanari invests at inflection points driven by technology, innovation, and thematic growth drivers, focusing on sectors with regional and global scalability and growth independent of local GDP. Fund progression: First close in September 2022 at R475 million ($28 million), second close in October 2023 at R1.25 billion ($65 million), and final close in December 2024 at R1.5 billion ($80 million). The fund has already made four investments and is now fully focused on deploying the raised capital.
Scientifica Venture Capital
Scientifica VC has launched Scientifica Fund 1 (SF1), a €200 million fund to support innovation in quantum computing, smart materials, advanced industry, and environmental technologies. The fund will back companies at all stages, from initial idea to scaleup, providing access to technological resources without upfront capital expenditure. It aims to bridge scientific research and venture capital to drive impactful global advancements.
Boyuan Capital
Boyuan Capital, Bosch's China-based VC arm, has raised $69 million toward its $206 million target for its second RMB fund. The fund focuses on growth-stage Chinese deep tech startups, targeting sectors like sustainable transport, smart manufacturing, the Internet of Things, artificial intelligence, semiconductors, and carbon neutralization technology.
Astarte Capital Partners
Astarte Capital Partners, a London-based global investment firm specializing in sustainable real assets, has partnered with Toesca Asset Management to launch the Toesca Permanent Crops II (TPC II) fund. This $350 million fund focuses on regenerative agriculture investments in permanent crops across Latin America, particularly in Chile and Peru. Astarte has committed part of the initial $45 million in sponsor capital and brings its expertise in natural capital investments to the partnership
Toesca Asset Management
Toesca Asset Management, a leading alternative investment manager based in Santiago, Chile, has joined forces with Astarte Capital Partners to create the Toesca Permanent Crops II (TPC II) fund. This $350 million fund targets investments in permanent crops using regenerative and sustainable practices in Chile, with plans to expand into Peru and other Latin American markets. Toesca contributes local expertise in Chilean agriculture and has committed a portion of the $45 million initial sponsor capital
Venture Capital Catalyst Initiative
The Canadian government is allocating $2 billion in the draft mini-budget: $1 billion for the next round of the Venture Capital Catalyst Initiative (VCCI) to attract pension funds and institutional investors, and $1 billion for a new fund targeting high-growth mid-cap companies with market capitalizations between $2 billion and $10 billion. The funds focus on supporting Canadian startups and larger mid-cap companies.
G2 Venture Partners
G2 Venture Partners is raising $750 million for its third fund, targeting growth-stage investments in climate and sustainability startups globally, with a focus on the United States, Europe, and Asia. The fund emphasizes innovations breaking the link between consumption and growth.
Gobi Partners
Gobi Partners launched the Techxila Fund II, a $50 million investment fund focusing on fintech, e-commerce, logistics, health tech, and SaaS startups in Pakistan. The fund supports early to growth-stage startups, driving sustainable growth and creating economic opportunities in emerging markets.
White Hill Capital
White Hill Capital is collaborating on a new $15 million venture capital fund in Azerbaijan. This fund focuses on innovation-driven sectors, targeting post-seed and A-stage companies to boost the local startup ecosystem.
Halogen Ventures
Halogen Ventures focuses on early-stage consumer technology startups with at least one woman on the founding team. The fund announced a $10 million investment to support female founders in Alabama.
💡Innovator Spotlight
Ilya Sutskever, co-founder and former chief scientist of OpenAI, gave a talk at the NeurIPS (Conference on Neural Information Processing Systems) 2024 in Vancouver on December 15, 2024.
While this wasn't a traditional interview, it was a significant public appearance where Sutskever shared his views on the future of AI. Here are the key points from his presentation:
Current AI Training Methods
Sutskever declared that "pre-training as we know it will unquestionably end". He believes that the AI industry has reached "peak data," comparing available training data to finite fossil fuel resources.
Future of AI Development
Agentic AI Systems
Sutskever predicted that future AI systems will be truly "agentic," possessing reasoning capabilities that make them more unpredictable than current models
Superintelligent AI
He discussed the eventual development of superintelligent AI, which he believes will be qualitatively different from today's AI:
It will have deeper understanding and self-awareness
These systems may seek rights
They will be capable of reasoning through problems like humans
Challenges and Implications
Sutskever highlighted several challenges:
The unpredictability of reasoning AI systems
The need for new approaches to AI development beyond current pre-training methods
The importance of focusing on safe superintelligence development
Sutskever's New Venture
He briefly mentioned his new company, Safe Superintelligence Inc. (SSI), which raised $1 billion in funding and is dedicated to developing safe, powerful AI
This talk represented a significant shift in perspective from one of deep learning's pioneering figures, suggesting that the next breakthrough in AI might come from fundamentally new approaches to how AI systems learn and reason.
🛠️ Tools of the Week
The Gen AI Revolution: What’s Catching On Now
The world of consumer Gen AI is moving at an incredible pace, transforming workflows, unleashing creativity, and changing the way we engage with technology. From exciting new apps to emerging trends, it’s clear that AI is at the forefront of how we interact with the digital world. Let’s take a closer look at what’s making waves in this vibrant space.
Creative Tools Take the Spotlight
Creative tools are grabbing attention across areas like image, video, music, and speech. Over half of the leading Gen AI apps on the web focus on content creation or editing, showing just how important generative AI has become for creators. Tools like Luma, Viggle, and Udio are pushing boundaries in video and music generation, while SeaArt continues to shine in the realm of image creation.
On mobile, editing tools reign supreme, particularly for photos and videos. Established apps like Adobe Express, Meitu, and SNOW have reinvented themselves by incorporating AI, catering to the growing demand for creativity on the go. It’s a reflection of how effortlessly AI is blending into our everyday lives.
AI Assistants Are Heating Up
AI assistants are becoming essential. While ChatGPT remains a leader, competitors like Perplexity and Claude are catching up fast. Perplexity, with its real-time search and highly engaging user experience, has established itself as a strong contender. Meanwhile, Claude continues to innovate, drawing in users with its robust features. Luzia, an AI tool designed for Spanish-speaking audiences, has found widespread success, showcasing the global appeal of generative AI assistants.
Bytedance Making Its Mark
Bytedance, the company behind TikTok, is making big moves in the AI space with a suite of forward-thinking apps. From the versatile assistant Doubao to creative tools like Hypic and Cici, Bytedance is securing its place in both web and mobile AI markets. These apps cater to a diverse range of users, reflecting the company’s global ambitions.
Breaking New Ground: Aesthetics and Dating
AI is venturing into more personal territory with tools aimed at aesthetics and dating. Apps like LooksMax, Umax, and RIZZ are transforming how people present themselves and connect with others. LooksMax and Umax use AI to evaluate photos, rate attractiveness, and offer improvement tips, while RIZZ helps users craft the perfect dating app messages. These innovations highlight how AI is carving out entirely new categories of tools.
Building Communities on Discord
Discord has become a hub for AI innovation, offering a space for apps to launch, build communities, and refine their offerings. Some, like MidJourney, have maintained a strong presence on Discord even after reaching mainstream popularity, using it to foster user loyalty and direct engagement.
AI Today and Tomorrow
The momentum behind Gen AI apps is only growing. From creative tools to personal assistants and groundbreaking new categories like aesthetics and dating, AI is changing the way we work, play, and connect. As these technologies continue to advance, they’ll shape consumer expectations and open up entirely new possibilities for the future. We have to embrace them to stay ahead of the game.
📌 Note to Self
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Derek