Week of June 23rd, 2025

Welcome to 8alpha.ai’s weekly newsletter, your ultimate source for curated insights and updates from the dynamic world of venture capital!

We’ve scoured the vast landscape of the web to bring you a comprehensive roundup of the industry’s top news articles, all in one convenient place. We keep you ahead of the game and in the know about all things related to the vibrant world of investments

STARTUPS

ROUNDS AND UNICORNS

The Week’s 10 Biggest Funding Rounds: Energy, Defense Tech Led (Crunchbase, 5 minute read)

1. TerraPower (Energy/Nuclear Tech): Raised $650M to fund its first nuclear energy project in Wyoming, in partnership with the U.S. Department of Energy. Co-founded by Bill Gates and backed by Nvidia and HD Hyundai, the company aims to deliver next-gen nuclear solutions by 2030

2. Applied Intuition (Autonomous Vehicles): Raised $600M (Series F) led by BlackRock and Kleiner Perkins, boosting its valuation to $15B. Based in California, it builds vehicle intelligence platforms used by 18 of the top 20 automakers and the U.S. Department of Defense

3. Teamworks (SportsTech): Raised $235M (Series F) led by Dragoneer Investment Group, reaching a $1.2B valuation. Based in North Carolina, its software manages performance, recruitment, and communication for 6,500+ elite teams across major global leagues and federations

4. Ramp (Fintech): Raised $200M (Series E) led by Founders Fund, doubling its valuation to $16B. The New York-based startup offers corporate credit cards and expense management solutions to over 40,000 businesses

5. Commure (HealthTech): Raised $200M from General Catalyst’s Customer Value Fund. Headquartered in California, Commure supports 130+ health systems with AI-driven tools for note-taking, billing, and patient management

The Great Unicorn Backlog: Visualizing A Decade Of Private-Market Buildup (Crunchbase, 4 minute read)

The Crunchbase Unicorn Board has swelled to nearly 1,600 companies worth a combined $6 trillion, fueled by a surge in billion-dollar startups during the 2021 boom. However, exits have lagged, creating a growing overhang of high-value, still-private firms. Companies founded in 2020 or earlier account for the bulk of value, over $3.2 trillion, and include giants like SpaceX, OpenAI, and Stripe. These older unicorns have seen the highest exit rate, with 46% going public or being acquired

• By contrast, the 2021–2022 cohorts added 854 unicorns now valued at $2 trillion, led by Anthropic ($61.5 billion)

• From 2023 to mid-2025, 257 companies joined, contributing another $500 billion in value, with major additions from the AI wave such as xAI ($50 billion)

• Despite slower new unicorn formation and reduced disclosed fundraising, over 60% of companies on the board haven’t raised at a new valuation in more than three years

ECONOMIC SNAPSHOT

Fed holds interest rates for fourth time despite tariff turmoil (BBC, 4 minute read)

The Federal Reserve has held its key interest rate steady at 4.3% for the fourth consecutive meeting, despite worsening economic projections and political pressure from President Trump for rate cuts. The Fed now forecasts slower GDP growth of 1.4% in 2025 (down from 2.5% in 2024), higher unemployment at 4.5%, and inflation rising to 3%, above the Fed’s 2% target. Chair Jerome Powell emphasized a cautious stance, citing uncertainty around the inflationary impact of Trump’s new tariffs and reaffirming the need to observe their duration and effect

• Despite criticism from Trump the Fed signaled only modest cuts ahead, with rates expected to dip just below 4% by year-end and rise again through 2026–2027

• While other central banks, like the ECB and Bank of England, have started cutting rates, the Fed is maintaining its wait-and-see approach, underscoring its independence amid a volatile policy environment

How to benefit from the Fed’s latest decision (CNN, 7 minute read)

The Federal Reserve held interest rates steady for the fourth consecutive meeting, even as inflation ticked up to 2.4% in May. Amid rising tariffs and geopolitical tension, the Fed remains cautious, with projections still suggesting two possible cuts in 2025, though any move could signal concern about economic slowdown rather than inflation control. For savers, the rate pause continues to offer favorable yields: high-yield savings accounts return 3.6%–4.3%, money market funds average 4.10%, and CDs and Treasuries offer up to 4.5%

• Retirees and conservative investors benefit most, while borrowers face persistent challenges — credit card rates exceed 20%, mortgages average 6.81%, and car loans hit 7.3% (new) and 11% (used)

• Despite elevated costs, careful shopping and strong credit scores can help mitigate loan burdens in a high-rate environment

Still early to assess tariff impact on economy, Fed report says (Reuters, 3 minute read)

The Federal Reserve’s latest Monetary Policy Report signals a cautious stance amid ongoing economic uncertainty, particularly around President Trump’s tariff policies. While inflation remains somewhat elevated and the labor market is in solid shape, the Fed believes the full effects of recent tariffs have yet to be fully realized. Categories like household appliances and electronics have seen price increases, hinting at early signs of tariff-related inflation, though auto prices remain relatively stable

• The Fed notes that while short-term inflation expectations have risen, longer-term expectations still align with its 2% target

• Consumer spending has stayed resilient despite weakened household sentiment, but balance sheets have normalized, leaving families more vulnerable to future shocks

• Financial markets remain generally stable, but remain sensitive to trade news, especially after the April spike in tariffs disrupted Treasury market liquidity

US strikes on Iran could damage global growth, says IMF chief (The Guardian, 3 minute read)

U.S. airstrikes on Iran risk disrupting global economic growth, according to IMF Managing Director Kristalina Georgieva, who warned that rising energy prices could have cascading effects on major economies. The Strait of Hormuz, now under threat of closure by Iran’s parliament, handles about 20% of global oil supply, making it a critical chokepoint. Oil prices surged over 5% to $81.40 per barrel on Sunday before settling at $76 on Monday

• Goldman Sachs estimates a partial closure could drive oil prices to $110 per barrel

• Markets responded with caution: the FTSE 100 fell 0.2%, Japan’s Nikkei 225 dropped 0.1%, and Australia’s ASX 200 declined 0.4%, while China’s CSI 300 rose 0.3% and Hong Kong’s Hang Seng gained 0.5%

• Though experts view a full closure as unlikely, RBC Capital Markets warned of potential energy attacks and geopolitical escalation, especially amid an ongoing nine-day military conflict

IPO & EXITS

The IPO market is booming—and more big listings like Klarna and StubHub could come this fall (Fortune, 4 minute read)

The U.S. IPO market is showing signs of revival after a three-year slump, with 95 companies raising $15.6 billion by mid-June 2025 — a 30% increase over 2024 and nearly double 2022–2023 levels. Breakout listings from Circle (up 677% from IPO) and CoreWeave (up 359%) have boosted confidence, while Chime rose 37% in its debut. Yet risks remain: escalating geopolitical tensions and Trump’s paused tariff policy could trigger renewed volatility

• Roughly 200 firms have filed to go public on Nasdaq, but major names like Klarna and StubHub delayed offerings due to market uncertainty

• Analysts expect modest IPO activity through the summer, with a stronger wave likely in the fall — unless macroeconomic disruptions derail momentum

• A critical test will come when lockup periods expire later this year, potentially affecting stock prices and broader investor sentiment

Chime pops 37% in Nasdaq debut after pricing IPO above expected range (CNBC, 3 minute read)

Chime made a strong public market debut on Nasdaq, with shares jumping 37% on the first day of trading and closing at $37.11, up from its $27 IPO price. This values the company at $13.5 billion, though it’s a significant drop from the $25 billion valuation during its 2021 private fundraising. The IPO raised $700 million, with existing investors selling another $165 million in shares

• Chime reported $518.7 million in Q1 revenue (up 32% YoY) and $12.9 million in net income

• CEO Chris Britt emphasized Chime’s focus on underserved Americans earning under $100K, with 8.6 million monthly active users and 90%+ retention once direct deposit is set up

• Despite a simplified business model, analysts view Chime's IPO as a potential bellwether for fintech, especially as Klarna and Gemini prepare their own public offering

Global IPO activity slumps in 2025 as tariffs, volatility weigh (Reuters, 3 minute read)

Global IPO activity has slumped in 2025, with total equity issuance falling 9.3% year-over-year to $44.3 billion—the weakest showing in nearly a decade. This downturn is largely attributed to elevated macroeconomic uncertainty: U.S. tariffs have disrupted global trade expectations, market volatility remains high, and interest rates continue to raise the cost of capital. U.S. IPO volume declined 12% to $12.3 billion, while European markets saw an even steeper drop of 64%, falling to just $5.8 billion

• Asia-Pacific IPOs jumped 28% to $16.8 billion, thanks to regulatory easing and improved investor sentiment, with China and Japan driving activity

• Many pre-IPO firms are delaying listings amid fears of weak post-IPO performance, particularly for companies without steady cash flow or clear paths to profitability

• Analysts believe late 2025 could see a surge in listings if volatility eases, possibly triggering a “trickle-then-torrent” IPO cycle

Can China reclaim its IPO crown? (The Economist, 3 minute read)

Chinese companies are flocking to Hong Kong for IPOs, with over 130 applications in April—double the number at the start of 2024. Major listings like Hengrui Pharmaceuticals and CATL raised $5.3 billion, and Seres hopes to raise $2 billion soon. Fast-fashion giant Shein may switch its IPO from London to Hong Kong, further boosting the city's chances of becoming the world’s largest listing hub this year

• So far, $9.8 billion has been raised in Hong Kong, compared to just $3.9 billion on the mainland, where IPO activity remains weak due to regulatory constraints and poor market sentiment

• Since late 2023, approvals from Beijing have become more frequent, with the Hang Seng China Enterprise Index up 50% in 2024

• However, mainland exchanges remain subdued, with only 100 IPOs in 2024—the lowest in over a decade—and unofficial bans on non-strategic sectors

WHAT A TIME TO BE ALIVE

Female founders’ paradox: 71% cite difficulties in fundraising, but also strongly optimistic (GeekWire, 5 minute read)

Despite growing support networks, venture funding for women-led startups in the U.S. has declined, falling from 2.6% in 2017 to just 2% in 2023, according to PitchBook. A new survey by the Female Founders Alliance (FFA) of 180 female tech founders reveals persistent challenges, with 71% saying fundraising was harder than expected and 40% citing gender as a top barrier

• 36% said gender negatively impacted their company, and 39% said it brought both positive and negative impacts

• While 86% are leveraging AI, mainly for product development and marketing, many reported facing biased investor attitudes, including skepticism, focus on caregiving roles, and even inappropriate behavior

AI8 VENTURES HIGHLIGHT

The Illusion of Recovery - Venture Capital 2025

We are living in a world defined by rapid and accelerating change, political, economic, social, and technological. This is not a typical business cycle. We are in an era shaped by powerful megatrends, with AI transforming industries, geopolitical shifts reshaping markets, and macroeconomic forces creating new uncertainties.

Just weeks before the 2024 election, The Economist described the U.S. economy as the “envy of the world.” After Donald Trump’s victory in November, markets initially anticipated controlled inflation, deregulation, and a less restrictive monetary policy. Fast-forward a few months to April 2025, and the optimism has faded. With capital markets reacting negatively to renewed trade war fears, over $5 trillion in market value were erased in a couple of days.

2025 opened with headlines proclaiming a venture capital comeback.

On paper, VC funding rebounded, driven by an unprecedented surge in AI investment. But beneath the surface, it’s a tale of two markets: one propelled by billion-dollar mega-deals in Artificial Intelligence, and another still struggling to regain traction amid macroeconomic uncertainty, investor hesitation, and a lingering liquidity crunch.

With Trump reigniting trade wars, tariffs reshaping global supply chains, and AI advancing at breakneck speed, it’s becoming harder than ever to place clear bets.

The real question is: what are you going to bet on?

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Happy reading,

8alpha.ai’s Research & Investment Team