STARTUP X
The F42 brief #002
Hello, 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
The ongoing exodus of key figures from OpenAI, including Mira Murati, highlights everything that’s wrong with the "founder mode" and 0-to-1 playbooks dominating both the company and the startup ecosystem. Murati joins a growing list of talent, such as Ilya Sutskever and Andrej Karpathy, whose departures expose the flaws in this chaotic leadership style. Even Elon Musk walked away, and Microsoft has distanced itself by labelling OpenAI as competition.
Additionally, OpenAI’s contradictory shift from an open-source model to a closed-source one, alongside its transition from a non-profit to a for-profit entity, underscores the organisation's need for speed without direction. This lack of solid foundations and understanding of core principles has driven these troubling pivots.
Instead of building on a stable foundation, OpenAI has faced governance failures, unclear strategies, and internal turmoil. Leadership’s reactive and short-sighted decisions—like the quip, “maybe I’ll ChatGPT our pricing model”—are not just unprofessional; they undermine trust and alienate key talent.
Now facing class action lawsuits for illegal data scraping and privacy violations, the company sensationalises AGI to distract from its problems, merely amplifying its own chaos. In what world is it okay to glorify this bad behaviour and promote it as a role model?
💸 New Funds looking to give you cash
Z21 Ventures is a new venture capital investment fund. They have a target size of $40 million for Fund II and are currently halfway there, thanks to anchor backing from Westbridge Capital. Z21 Ventures looks to invest in early-stage startups, focusing primarily on technology and innovation sectors. The investment sizes typically range from seed to Series A rounds, aiming to support emerging companies with high growth potential.
The Artemis Fund is a venture capital investment fund that recently closed its second fund at $36 million, more than double its first fund. The fund invests in diverse tech founders in sectors such as fintech, commerce, and the care economy, focusing on female-founded and co-founded tech companies. Artemis primarily targets seed-stage investments and supports early-stage companies generating about $1 million in revenue. Their portfolio companies benefit from enhanced operational support, extensive co-investor networks, and a refined focus on mature seed-stage ventures with proven product/market fit.
The Shell Impact Fund, based in the Netherlands, invests in entrepreneurs committed to a more just and inclusive energy transition. The fund has €15 million allocated over three years, with half of this available for investment in various initiatives. It supports companies that provide cleaner energy and more sustainable mobility, with investments ranging from grants to loans. The aim is to support social enterprises, particularly those that aid vulnerable households and SMEs in adopting innovative clean energy solutions. The fund looks for enterprises prioritizing equality, fairness, and inclusivity in making clean energy accessible to marginalized communities.
SCOPE VC is a new venture capital fund with a size of USD 50 million. The fund targets high-potential fintech and gaming startups in India and the US, offering early-stage investments ranging from USD 500,000 to USD 2 million. They look for startups demonstrating disruptive potential and creative solutions, aiming to shape the future of technology.
Sure, the Next Narrative Africa Fund is a new venture capital investment fund with a size of $40 million. They plan to invest $30 million in equity financing and provide $10 million in grants. The fund aims to back high-impact TV and film projects from Africa and the diaspora, particularly focusing on "narrative-shifting content." They are looking to invest in projects that promote themes such as gender/racial equity, democracy, governance, climate, health, and inclusive economic growth, with budgets ranging from $1 million to $5 million.
Mudhal VC is a newly launched accelerator venture capital fund by Kissflow founder Suresh Sambandam. The fund focuses on investments in startups located in Tier II and Tier III cities in Tamil Nadu. It aims to support early-stage ventures, providing them with capital to grow and scale their businesses. Mudhal VC seeks to invest in diverse sectors, prioritizing innovation and potential for growth in its investment decisions.
Kagome, a Japanese ketchup and tomato juice producer, has established a $50 million Corporate Venture Capital (CVC) fund called the Sunrise Agrifood Tech Fund. Formed in partnership with US-based SVG Ventures, this fund aims to invest in early-stage agritech startups focused on tackling climate change, crop diseases, and other agricultural value-chain issues. The fund will typically provide initial investments ranging from $500,000 to $1 million per startup, with potential for follow-on funding. It seeks to support innovations in developing drought and heat-resistant crops and advanced cultivation techniques for harsh environments.
Iona Star LP is a venture capital fund that focuses on AI and data-driven companies. The fund has secured up to £20 million in initial funding from key industry players, including Frasers Group. Targeting early-stage companies globally, Iona Star LP aims to bolster technological and data capabilities within its portfolio. The fund is managed by seasoned experts and expects to final close in late 2024, allowing it to provide strategic investments into promising startups in the AI and data sectors.
Ibtikar Fund II is a venture capital fund with a total size of US$ 25 million. It invests in up to 25 early-stage Palestinian technology companies, with the flexibility to also invest in selected companies in neighboring countries connected to the West Bank and Gaza. The fund aims to generate long-term capital appreciation from equity and equity-related investments, promoting digitalization and job creation in the region.
Impact Ventures III is a new €40 million venture capital fund launched by the European Investment Fund (EIF) and the Hungarian National Capital Holding (NCH). The fund targets early-stage, innovative SMEs and startups in Hungary and Central Eastern Europe that have positive social and environmental impacts. The investments focus on niche markets in technology-based sectors like health and medical technology, education technology, recycling and waste management, and clean energy.
CapZone Impact Investments LLC is a venture capital investment fund that focuses on economically distressed areas, investing in federal opportunity zones. They were established in 2018, and the size of their investments and specific stages are tailored to foster long-term economic development and job creation in these regions.
ARCH Venture Partners has recently raised over $3 billion for their Fund XIII. This fund targets investments primarily in the biotech and life sciences sectors. It aims to support early-stage companies, including those involved in groundbreaking scientific research and technological innovations. Key investors in this fund include the Alaska Permanent Fund and the Rockefeller Brothers Fund.
Veteran Ventures Capital, a new venture capital investment fund, invests in dual-use national security technologies led by veteran entrepreneurs. The Fund II aims for a total raise of $50 million and looks to invest in high-growth companies in sectors such as defense, aerospace, cybersecurity, and space propulsion. Veteran Ventures Capital typically invests in various stages, targeting companies that serve both commercial and national security interests.
The SVG Ventures Sunrise Fund is a new $50 million corporate venture capital fund launched by Japanese food producer Kagome, through its U.S. subsidiary Garbic USA. Managed in collaboration with Silicon Valley-based venture capital firm SVG Ventures, the fund focuses on supporting early-stage startups developing agricultural technologies worldwide. Initial investments range from $500,000 to $1 million per startup, with the potential for follow-on funding.
ParaFi Capital has recently launched a $120 million fund, targeting investments in the decentralized finance (DeFi) sector. The fund aims to invest in early-stage startups, particularly those focused on innovative DeFi solutions and infrastructure. Individually, investments will likely range from seed to Series A stages, emphasizing projects with strong growth potential and unique value propositions in the DeFi ecosystem.
The Drive Forward fund, backed by the Biden-Harris administration and managed by Monroe Capital, is a $1 billion investment fund targeting small- and medium-sized auto manufacturers and suppliers. The fund focuses on companies involved in powertrain, body, drivetrain, chassis, interiors, electrical components, and related software-as-a-service solutions. It aims to support these companies in transitioning from internal combustion production to electric vehicle (EV) manufacturing, as well as investing in smart factories, autonomous driving systems, and connected technologies. The fund is intended to help companies at various stages of their technological upgrades and transition efforts.
ArborRise Ventures is a new venture capital investment fund focusing primarily on early-stage startups in the technology and sustainable energy sectors. The fund size is $150 million, and ArborRise is looking to invest in innovative companies that demonstrate strong growth potential and a commitment to environmental sustainability. Investments typically range from seed to Series A funding rounds.
CoinFund is a venture capital investment fund. They invest in early-stage crypto, blockchain, and web3 companies. The firm manages $157M Seed IV (2023) and $320M Ventures I (2022) funds, focusing on developer infrastructure, DeFi, fintech, real-world assets, DePIN, DeAI, and major base layer blockchains from Seed to Series A stages.
Asymmetric Financial is a digital asset investment firm that primarily targets investment opportunities within the cryptocurrency sector. While the specific size of the fund is not disclosed in the article, Asymmetric Financial is noted for making strategic investments into high-potential digital assets such as memecoins like BONK. The firm looks to capitalize on market asymmetries and tends to invest at stages where digital assets have high growth potential, as evidenced by their investment in BONK when its market capitalization hit $28 million.
Asabys Partners, a Spain-based firm, has closed a $200 million fund named Sabadell Asabys Health Innovation Investments II (SAHII II). This second fund aims to invest in 12 to 15 companies within the biopharma and medtech sectors, focusing on life science companies addressing unmet medical needs. They have already invested in companies such as Orikine Bio and Augustine Therapeutics. Asabys targets biopharma, medical devices, and digital health startups at various stages of development, with an emphasis on the Spanish life sciences ecosystem and global markets.
Acurio Ventures is a newly rebranded venture capital firm (formerly All Iron Ventures) that recently closed a €150m fund. They invest primarily in early-stage European startups with a generalist sector approach, often acting as a coinvestor. The fund aims to back around 50 companies.
1957 Ventures Fund is a fintech-focused venture capital fund launched by Riyad Bank and Riyad Capital in Saudi Arabia. With over SAR 800 million in commitments, the fund is regulated by the Saudi Arabian Capital Market Authority. It primarily targets venture building opportunities and startups in the fintech and financial services sectors at various stages of growth, supporting transformative growth in line with Saudi Vision 2030 and the Financial Sector Development Program.
💡Innovator Spotlight
🚀 Charlie Ward, a seasoned solopreneur and founder of Ramen Club, has made significant strides in the indie hacker community, coaching over 300 entrepreneurs towards ramen profitability. His journey spans building a community of 3,000+ indie hackers across four countries, focusing on practical, sustainable growth strategies rather than chasing overly unique or creative ideas without demand.
🔑 A standout insight from Charlie's experience is the common pitfall of working on projects with no existing demand—a risky move for bootstrappers lacking resources to generate new demand. He advises leveraging ideas that already have a market, suggesting modifications to existing products or adopting successful strategies in new markets. This approach minimizes risk and maximizes the potential for early traction, providing a more reliable path to success.
🤔 Reflecting on your current project, are you innovating where there's demand, or are you trying to generate new demand where it might not exist?
🛠️ Tool of the Week
Don’t Let Patent Blind Spots Derail Your Investment
🚀 Evalify is revolutionising the way startups and investors navigate the patent landscape. By leveraging its AI to sift through nearly 200 million global patents, it highlights potential risks and opportunities, helping founders make informed decisions. In a competitive market, having clarity around patents can be the difference between success and costly missteps. This tool isn't just about identifying infringement risks but also about spotting the white spaces where innovation can thrive.
✍️ One valuable lesson from Evalify's approach is the emphasis on rapid, data-driven insights. Startup founders can learn a lot from this by adopting tools that provide real-time, actionable data to improve decision-making. Ensuring a seamless user experience with quick, reliable feedback can greatly enhance productivity, allowing startups to pivot or advance with confidence.
💡 How are you currently assessing and mitigating patent risks and ensuring your startup's innovative edge? 🤔
📌 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 🙏🏼
🛑 Get a different job.
Subscribe below and follow me on LinkedIn or Twitter to never miss an update.
For the ❤️ of startups
✌🏼 & 💙
Derek