Week of September 29th, 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: Health And AI Lead For Large Financings (Crunchbase, 5-min read)

• Judi Health (Health Benefits): the New York–based startup builds software to help employers and health plans manage pharmacy and healthcare benefits. Its platform focuses on transparency and lowering drug costs by moving away from traditional pharmacy benefit managers. The new $400M raise was led by Wellington Management and General Catalyst

• Filevine (Legal Tech): Based in Salt Lake City, Filevine provides a legal practice management platform used by law firms, corporate legal teams, and government agencies. Filevine disclosed it had raised two major rounds totaling $400M, the fresh capital is expected to fuel product expansion, particularly in AI-driven tools for litigation and compliance

• Modular (AI Infrastructure): Founded in 2022 in Palo Alto, Modular is developing an enterprise AI inference stack designed to improve performance and efficiency for AI models across industries. Modular raised a $250M Series C led by the U.S. Innovative Technology Fund, giving it a $1.6B valuation

• AppZen (Fintech): San Jose–based AppZen provides an agentic AI platform for finance teams, designed to automate expense auditing, invoice processing, and spend management. Its $180M Series D was led by Riverwood Capital, bringing AppZen closer to IPO readiness as enterprises seek AI-first finance solutions

• Distyl AI (Enterprise Software): San Francisco–based Distyl AI builds AI tools for large enterprises, helping them embed generative and predictive AI into core workflows. The startup raised a $175M round led by top investors Lightspeed Venture Partners, Khosla Ventures, DST Global, Coatue, and Dell Technologies Capital, hitting a $1.8B valuation

The Arc Of Venture Capital Bends Toward Democracy (Crunchbase, 3-min read)

Private markets have exploded in size, with the 50 top U.S. private tech companies now worth $1.8 trillion, up from under $5 billion in 2005, and global private-market AUM soaring to $15 trillion from just $100 billion in the mid-1990s. This shift means much of the $20 trillion AI-driven wealth creation could remain inside private markets, widening inequality unless access broadens. Momentum for democratization is also building, with Congress pushing to expand access beyond the wealthy

• Traditional objections to venture capital (risk, illiquidity, oversight, and fees) are eroding

• Late-stage VC now resembles public equities, secondaries topped $162B in 2024, new evergreen VC funds face SEC oversight, and fee structures are dropping

• The takeaway: more value now happens before IPOs, and new publicly registered VC funds could let everyday investors access it, much like ETFs reshaped public markets

Nvidia to inject up to $100B in ChatGPT creator OpenAI (PitchBook, 2-min read)

Nvidia is set to invest up to $100 billion in OpenAI, potentially the largest VC-backed investment on record, in a sweeping partnership that will see Nvidia supply chips for at least 10 gigawatts of AI capacity starting in 2026. The funding will roll out as new systems come online, marking what CEO Jensen Huang called “the biggest AI infrastructure project in history”

• For OpenAI, the deal comes on the heels of a $300 billion compute purchase agreement with Oracle and plans to co-design custom chips with Broadcom, highlighting how critical compute has become to training and deploying future models

• If Nvidia commits the full amount, it would eclipse OpenAI’s own $40 billion raise in March, already the largest venture round in history

• Nvidia’s stock jumped nearly 4% on the news, lifting its valuation to $4.5 trillion, while the company continues to expand globally, including a $5 billion investment in Intel

AI Is Gorging On Venture Capital. This Is Why ‘Physical AI’ Is Next (Crunchbase, 5-min read)

In 2025, Silicon Valley funneled $111B into scaleups, with $103.5B (93%) going to AI, effectively making VC funding there synonymous with AI. The first major wave was generative AI, dominated by billion-dollar raises from OpenAI ($40B) and Anthropic ($13B), which together absorbed most of the $80B invested in the sector. After a brief pause in 2024 to deploy that capital, a second wave is now surging: physical AI — robots and systems that can think and act in the real world

• Already, scaleups in this space have raised $16B in 2025 alone, led by Figure AI’s $1B round for humanoid robots, Neuralink’s $650M for brain–computer interfaces, and Meta’s investment in Scale AI for real-world training data

• Analysts say physical AI could revolutionize industries from manufacturing and logistics to healthcare and defense, reinforcing Silicon Valley’s century-long role as the epicenter of global innovation

ECONOMIC SNAPSHOT

Trump announces new tariffs on drugs, trucks and kitchen cabinets (BBC, 3-min read)

President Trump has rolled out a fresh wave of tariffs, headlined by a 100% levy on branded and patented drug imports starting Oct. 1, unless manufacturers commit to U.S.-based production. The plan also includes 25% tariffs on heavy-duty trucks, 50% on kitchen and bathroom cabinets, and 30% on upholstered furniture, part of his wider push to shield domestic producers from what he calls a “flood” of foreign goods. While exemptions cover generic drugs and companies already investing in U.S. plants, European and U.K. officials warn of risks to supply chains and patient access

• Still, industry giants like GSK ($30B U.S. investment) and AstraZeneca ($50B by 2030) appear positioned to avoid the brunt of the penalties

• Business groups remain critical: the U.S. Chamber of Commerce noted that more than half of truck parts come from Mexico and Canada, making domestic sourcing unrealistic and likely to drive up costs

• Trade experts caution these industry-specific levies will hit consumers through higher prices, even if they provide a short-term boost to U.S. manufacturers

The Trump administration is going after semiconductor imports (TechCrunch, 4-min read)

The Trump administration is weighing a policy that would force U.S. semiconductor companies to manufacture as many chips domestically as their customers import from abroad, with tariffs applied to those that fall short of the 1:1 ratio, according to The Wall Street Journal. The move is aimed at reshoring chip production but could squeeze the industry in the near term, as demand is immense and building fabs is notoriously slow and expensive

• Intel’s long-delayed Ohio plant, now set for 2030, highlights the challenge

• TSMC has pledged $100 billion over four years toward U.S. capacity, but concrete plans remain limited, raising questions about how quickly domestic output can realistically scale

US economy added 911,000 fewer jobs than previously reported in largest-ever revision (ABC News, 3-min read)

The U.S. Bureau of Labor Statistics delivered a historic revision, cutting 911,000 jobs from previously reported payrolls for the 12 months ending March 2025, the largest downward adjustment ever. That’s nearly 76,000 jobs per month overstated on average. The new data shows far weaker labor market momentum than earlier believed, following last year’s already steep revision of 818,000 jobs. The announcement comes weeks after President Trump abruptly fired BLS Commissioner Erika McEntarfer, a Biden appointee, accusing her without evidence of manipulating statistics

• The White House seized on the revision as proof of “Biden’s economic disaster,” while critics warn the move politicizes a traditionally independent agency

• The BLS, which produces key reports on jobs, wages, and inflation, stressed that revisions are routine as more complete state data is incorporated

• With unemployment already at 4.3%, the highest since 2021, and youth joblessness in double digits, the correction reinforces signs of a cooling labor market

The US economy grew at a 3.8% rate in the second quarter, significantly stronger than previously reported (CNN, 3-min read)

The U.S. economy grew even faster than expected in Q2 2025, with GDP revised up to 3.8% from the initial 3.0% and well above the second estimate of 3.3%. The upgrade was driven by stronger consumer spending, which rose at a 2.5% annualized pace versus the earlier 1.6% estimate, helping offset weakness in business investment. Imports fell sharply, adding more than 5 percentage points to growth after businesses stockpiled goods in Q1 ahead of Trump’s tariffs, which had dragged GDP down 0.5%

• Looking ahead, the Atlanta Fed projects Q3 growth of 3.3%, suggesting momentum has carried over

• Retail sales rose 0.6% in both July and August, while durable goods orders jumped 2.9% in August, including a boost from aircraft orders, with core capital goods up a modest 0.6%

• Despite labor market softening and consumer sentiment slipping, these figures highlight the surprising resilience of U.S. consumers, who drive nearly two-thirds of GDP, keeping recession fears at bay for now

Startup founders say Trump’s $100K H-1B fee is a ‘talent tariff’ that will hurt innovation (TechCrunch, 6-min read)

Trump’s decision to raise the H-1B visa application fee to $100,000, up from the previous $2,000–$5,000, has sparked alarm across the tech industry, where more than 700,000 workers and 500,000 dependents rely on the visa program. Startups fear they will be priced out of hiring global talent, while Big Tech firms like Amazon, Microsoft, Meta, Apple, and Google may simply absorb the cost. Industry estimates suggest the new fee could add $5.5 billion a year to the sector’s labor bill, raising concerns about competitiveness, innovation, and a potential “brain drain”

• Founders warn the policy will hit smaller companies hardest, particularly in AI and engineering, while immigration lawyers note uncertainty remains over whether fees will be refunded if applications are denied

• Some startups are pausing petitions, shifting to alternatives like the O-1 or EB-1A visas, or turning to remote hiring, with some reports showing a 50% increase in U.S. companies exploring overseas employment

• Meanwhile, countries like Canada, the U.K., and Germany are emerging as winners, attracting talent that might once have chosen the U.S.

IPO & EXITS

Klarna Slump Drives Stock Below IPO Price Amid Fintech Selloff (Bloomberg, 2-min read)

Klarna shares slipped 7.7% to $38.31 on Friday, falling below their $40 IPO price for the first time since the fintech firm’s blockbuster debut on Sept. 10, when it raised $1.37 billion and jumped 15% on day one. The drop comes as fintech peers like Affirm and Block also extend multi-day losing streaks, pressured by stronger U.S. economic data that dimmed hopes for faster Fed rate cuts. Analysts warn Klarna’s richly priced IPO left little cushion as rising yields threaten borrowing costs and valuations

• The stock is now down nearly 15% from its debut close, even as the S&P 500 gained 1.3% over the same period

• This highlights investor caution despite Klarna’s growth in “fair financing” loans, which boost income but raise credit-loss risks

IPOs and (some) VC liquidity finally arrived in Q3 (PitchBook, 2-min read)

After a slow start earlier this year, U.S. IPOs of VC-backed companies roared back in Q3, generating $36.4 billion in exit value across 13 deals, a stunning 2,861% YoY increase, per PitchBook. Globally, 60 listings created $85.3 billion in exits, up 369% YoY. Unlike past cycles, a larger share of IPO shares came from VCs and early employees cashing out rather than new fundraising, with Klarna selling just 15% new shares and Figma only 33%, compared to the historical 91% average

• Investors say the rush reflects pent-up demand for liquidity after years of holding, with VCs eager to recycle capital back to LPs before raising fresh funds

• While most IPOs have traded well, volatility, geopolitics, and tariffs remain risks, pushing many to sell into offerings now rather than wait years for uncertain gains

Navan Is Finally Going Public For Real (Crunchbase, 2-min read)

Navan, the business travel platform formerly known as TripActions, finally filed for its long-awaited IPO after years of delays. The 10-year-old Silicon Valley company posted $329M in revenue in H1 2025, up 30% year over year, fueled partly by its new AI tool, Navan Cognition

• But profitability remains elusive: losses widened to nearly $100M in the same period, and the company has been unprofitable since its 2015 founding

• Navan has raised over $2.2B in equity and debt from backers like Andreessen Horowitz, Lightspeed, and Zeev Ventures

• Its filing adds to a wave of high-profile IPOs this month, including StubHub, Netskope, and Klarna

WHAT A TIME TO BE ALIVE

The Economic Impact Of The Wage Gap Growing Two Years In A Row (Forbes, 5-min read)

Census data shows troubling setbacks for women in the U.S. workforce: since January 2025, 338,000 women have left their jobs while men gained 183,000 positions, and mothers’ labor force participation has fallen nearly 3 points to a three-year low. The gender wage gap has widened for two straight years for the first time, with women earning 81 cents on the dollar in 2024 (down from 84 cents in 2022), and Black women slipping further to 65 cents. Unemployment for Black women has risen to 6.7%, well above the 4% national average. Experts warn these trends mirror patterns seen before past recessions and could signal a weakening economy

• Factors include return-to-office mandates, loss of pandemic-era benefits, high childcare costs (averaging $13,128 per child annually), cuts to federal jobs where women are concentrated, and rollbacks of DEI efforts

• Long term, the wage gap costs full-time working women an estimated $462,000 over a career, with losses for women of color topping $1 million

• Closing the gap could lift U.S. GDP by 20%, according to the World Bank, making gender equity not only a social issue but an economic imperative

Who Is Governing AI Companies? For Nearly Half Of AI Startups In California, The Answer Is Only Men (Crunchbase, 3-min read)

A new study reveals stark gender gaps on the boards of California-based AI companies. Among 102 private AI firms with $50M+ in funding, women hold just 15% of board seats, averaging 1 woman on a 6-person board, and 43% of boards (44 companies) have no women at all. Larger firms show modest progress: among companies with $100M+ in funding, the share of all-male boards falls to 32%, compared to 62% for those with $50M–$99M

• Public AI companies fare slightly better, averaging 2 women per 8-person board, but only 50% meet the threshold of 3 women that research suggests is needed to capture diversity benefits

• The study notes that 72% of private board seats are controlled by founders and investors (just 10% held by women), while over half of women directors serve as independents, the fastest path to increasing diversity

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