Startups Weekly: Fast and furious

In this week's edition of Startups Weekly, we bring you an exciting roundup of the most significant happenings in the startup ecosystem. If you want these updates delivered to your inbox every Friday, make sure to subscribe. This week saw lightning-fast growth for several startups, particularly in the defense technology sector, reaffirming its status as a hotbed for investment. Notably, Wix, the no-code website builder, made headlines by acquiring the bootstrapped vibe-coding startup Base44, also based in Israel, for an impressive $80 million just six months after its launch. In another remarkable development, Ramp, a spend management startup, saw its valuation soar to $16 billion in just three months following its Series E funding round, up from $13 billion earlier in the year. Meanwhile, new insights emerged regarding Meta's substantial $14.3 billion investment to acquire 49% of Scale AI, including speculation about potential dividend payouts. Following this transaction, OpenAI announced it would be discontinuing Scale AI as a data provider, which could complicate its existing relationship with Microsoft. In a bold move, the U.S. Department of Defense awarded OpenAI a contract valued at up to $200 million, which may further affect its ties with Microsoft. The recent Spring 2025 Demo Day at Y Combinator showcased numerous promising startups, with 11 gaining notable attention from investors. In an unfortunate turn of events, the after-party for the Demo Day, hosted by the controversial AI startup Cluely, was shut down by police, leading the CEO to describe it as 'the most legendary party that never happened.' Most funding news this week revolved around defense technology and AI, with some unexpected highlights. Applied Intuition, known for its software in autonomous vehicles, raised $600 million in a Series F round, achieving a valuation of $15 billion. The Munich-based defense tech firm Helsing attracted €600 million in investment, led by Prima Materia, the venture capital firm founded by Spotify’s Daniel Ek, bringing its valuation to €12 billion. Israeli startup Coralogix, which specializes in observability, hit unicorn status after a $115 million Series E round, planning to expand its workforce in India. Mach Industries, a defense tech startup just two years old, confirmed it raised $100 million, valuing the company at $470 million. Aspora, focused on remittances from the Indian diaspora, secured $50 million in a Series B round, co-led by Sequoia and Greylock, pushing its valuation to $500 million. Sword Health, a startup leveraging AI in digital health, raised $40 million at a valuation of $4 billion, while also postponing its IPO plans until at least 2028. Multiplier Holdings announced it raised $27.5 million across multiple funding rounds to expand its operations by acquiring traditional service businesses and integrating AI. Grifin, an innovative app that allows users to buy stock from brands they shop at, raised $11 million in a Series A. Similarly, the Swedish payment infrastructure platform Polar secured a $10 million seed round led by Accel, with its CEO previously co-founding Tictail, acquired by Shopify in 2018. Lastly, Endeavor Catalyst, a global venture capital firm, is targeting $300 million for its fifth fund, aiming to invest in rapidly growing startups in emerging markets. Founder-turned-VC Alexa von Tobel emphasized that the next wave of innovation in fintech will come from profound product reinvention rather than minor adjustments, aiming to meet the evolving needs of a diverse, digitally savvy population.