Week of August 4th, 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: Ramp Ramps Up While AI And Healthcare Hold Strong (Crunchbase, 5 minute read)

• Ramp (Fintech): Raised $500 million in a Series E round led by Iconiq Capital, valuing the New York-based finance automation platform at $22.5 billion. Total equity funding now stands at $1.9 billion

• MapLight Therapeutics (Biopharma/Neuroscience): Secured $372.5 million in Series D funding co-led by Forbion and Goldman Sachs Alternatives. The Redwood City-based firm develops treatments for brain disorders

• Ambience Healthcare (Healthcare AI): Closed a $243 million Series C round led by Oak HC/FT and Andreessen Horowitz. The San Francisco startup builds AI tools for medical documentation and coding

• Quince (Fashion): Raised $200 million at a valuation exceeding $4.5 billion, according to Bloomberg. The affordable luxury e-commerce brand is based in San Francisco and reportedly led by Iconiq Capital

• Observe (AI Enterprise Software): Secured $156 million in Series C funding led by Sutter Hill Ventures. The San Mateo-based observability software firm has now raised over $460 million to date

In the 3-way AI horse race, OpenAI remains firmly in the lead (PitchBook, 3 minute read)

OpenAI continues to dominate the AI funding landscape, having secured $66.4 billion to date, more than double the capital raised by either of its closest rivals, xAI or Anthropic. Its latest $8.3 billion raise, part of a $40 billion funding commitment, solidifies its position as the second most valuable VC-backed company after SpaceX, with a valuation near $300 billion

• xAI, despite being newer than Anthropic, has already raised nearly twice as much and is valued at roughly a quarter of OpenAI’s worth

• The company is aiming for a $10 billion round, which would keep it in fourth place among VC-backed firms

• Meanwhile, Anthropic is targeting a $5 billion raise that would push its valuation to $170 billion and place it fifth most valuable VC-backed company

ECONOMIC SNAPSHOT

US labor market adds 73,000 jobs in July while May, June reports see 'larger than normal' downward revisions (Yahoo Finance, 3 minute read)

The July jobs report revealed a significant slowdown in U.S. labor market momentum. Only 73,000 nonfarm payroll jobs were added, falling short of the 104,000 expected. The unemployment rate ticked up to 4.2%, while major downward revisions to May and June data showed over 250,000 fewer jobs created than previously reported. Average hourly earnings rose 3.9% year-over-year, and the labor force participation rate dipped slightly to 62.2%

• The unexpected weakness has increased market expectations of a Federal Reserve rate cut in September, with the CME FedWatch Tool raising the probability to 67% from 38% the day before

• Despite the slowdown, Fed Chair Jerome Powell had previously characterized the labor market as “solid,” though he acknowledged a deceleration in hiring

• Supporting data from ADP showed private sector payrolls rose by 104,000 in July, suggesting a recalibrated but still resilient job market

Trump says he will be 'substantially raising' India tariffs over Russia oil buys (Yahoo Finance, 2 minute read)

President Trump announced that he would be substantially increasing tariffs on Indian exports, citing the country’s ongoing purchases and resale of Russian oil as a means of indirectly funding Russia’s war in Ukraine. The new measures impose a 25% tariff on Indian goods entering the U.S., adding to a sweeping set of trade actions unveiled in recent days. These include a 35% tariff on Canadian imports, tariffs ranging from 10% to 40% on dozens of other countries, and a 50% tariff on semi-finished copper products starting August 1

• Trump also signed an order ending the de minimis exemption on low-value imports under $800, making them subject to tariffs beginning August 29

• Brazilian goods face a 50% tariff, while the U.S. and European Union reached a new trade agreement that imposes 15% tariffs on EU exports

• Trump also announced a trade deal with South Korea, including a 15% tariff on Korean goods but none on U.S. exports, and granted Mexico a 90-day reprieve from higher tariffs

U.S. economy grew at a 3% rate in Q2, a better-than-expected pace even as Trump’s tariffs hit (CNBC, 3 minute read)

The U.S. economy grew at an annualized rate of 3.0% in the second quarter of 2025, significantly surpassing expectations of 2.3%, according to the Commerce Department. This rebound was fueled by a sharp drop in imports, a modest rise in consumer spending, and easing inflation. Imports fell 30.3% after surging in Q1 as firms front-loaded purchases ahead of President Trump’s April tariff announcement, while exports declined 1.8%

• Despite geopolitical tensions and ongoing tariff negotiations, the economy showed broad-based resilience: inflation cooled, with core PCE rising 2.5% versus 3.5% in Q1

• However, final sales to private domestic purchasers, a key demand gauge, rose just 1.2%, the slowest pace since late 2022, suggesting underlying demand is softening

• Trump praised GDP growth and urged rate cuts, but economists noted that while headline growth is strong, much of the gain stemmed from trade distortions unlikely to repeat in Q3

Fed holds interest rates steady as two Trump appointees vote to cut them (NBC News, 4 minute read)

The Federal Reserve held its benchmark interest rate steady at 4.25%–4.5% during its July meeting, resisting mounting pressure from President Trump to cut rates. In its statement, the Fed noted that economic growth had “moderated” in the first half of the year, while inflation remained “somewhat elevated.” Chair Jerome Powell emphasized that the current rate was not restraining economic activity but acknowledged that ongoing uncertainty from Trump’s escalating tariff policy continued to weigh on the economic outlook

• Financial markets responded swiftly: the probability of a rate cut at the Fed’s next meeting in September dropped to below 50%, down from over 60% before the announcement

• Adding to the complexity, the Commerce Department’s GDP report released the same day showed a stronger-than-expected 3% annualized growth in Q2, reversing a Q1 decline of 0.5%

• Core inflation, as measured by the Fed’s preferred PCE index, rose 2.5% in Q2, up from 2.2% expected and higher than the Fed’s 2% target, further complicating the case for a near-term rate cut

IPO & EXITS

Analysis: Venture-Backed IPOs Of 2025 Have Done Well Post-Debut; Now It’s Figma’s Turn (Crunchbase, 4 minute read)

Despite a relatively quiet year for U.S. tech IPOs, those that have launched have performed exceptionally well, creating positive momentum for upcoming listings. Figma, the design software company, priced its IPO at $33 per share—above its projected range—and began trading under the ticker FIG on the NYSE. The IPO values Figma at up to $18.8 billion. This follows a broader 2025 trend: all nine largest venture-backed IPOs are currently trading above their offering prices

• Leading this surge is Circle Internet Group, the New York-based stablecoin provider. Valued above $40 billion, Circle’s shares have surged more than 5x since its June IPO

• Its success has spurred other crypto companies—BitGo, Gemini, and Bullish—to file for IPOs, signaling a possible wave of digital asset-related public listings

• Bitcoin’s price, hovering near an all-time high of $118,000, has also fueled optimism 

• CoreWeave, the AI infrastructure provider, remains the most valuable 2025 debut so far, with a market cap of around $52 billion, and its shares have more than doubled since the April IPO 

Figma IPO Tops $58 Billion Valuation: Is It Worth the Price? (The Motley Fool, 4 minute read)

Figma made one of the most explosive public debuts in recent history, with its stock jumping 250% on its first trading day, briefly pushing its market capitalization above $58 billion. The company raised $412 million through the IPO at a $33 per share price, though shares soon peaked above $142 before settling closer to $90. Figma, known for its AI-powered design tools, is used by over 13 million monthly active users, including 95% of Fortune 500 companies

• The IPO itself was more than 40x oversubscribed, reflecting overwhelming investor demand

• Revenues grew from $504 million in 2023 to $749 million in 2024, with projections suggesting the company could cross the $1 billion mark in 2025

• However, on Monday, Figma (FIG) shares fell 23% to $94.50, reversing part of last week’s rally following the company’s New York Stock Exchange debut

Klarna might reschedule its IPO for September (TechCrunch, 2 minute read)

Klarna is reportedly targeting an IPO as early as September, reflecting renewed strength in fintech stocks and U.S. equity markets. The Swedish payments company initially filed for a U.S. IPO in March, aiming to raise around $1 billion at a $15 billion valuation. However, it paused the process in April due to market turbulence following President Trump’s tariff proposals

• By June, CEO Sebastian Siemiatkowski expressed cautious optimism, stating he was “happy there’s less turbulence in the market”

• Klarna remains profitable and was most recently valued at approximately $14 billion privately

• Although final timing and structure of the offering remain undecided, the company’s strong fundamentals and clearer market outlook position it well for a potential public debut later this year

Peter Thiel-backed Bullish seeks up to $4.2 billion valuation in US IPO (Reuters, 4 minute read)

Crypto exchange Bullish is launching its U.S. IPO roadshow, seeking a valuation of up to $4.23 billion, a significant discount from its earlier $9 billion SPAC target. The company plans to raise up to $629.3 million by offering 20.3 million shares priced between $28 and $31 each. The move comes amid renewed momentum in digital assets driven by recent regulatory clarity, such as the GENIUS Act, and a more favorable environment under the Trump administration

• Bullish, backed by Peter Thiel and led by former NYSE president Thomas Farley, operates a crypto trading platform for institutions and owns CoinDesk

• The company reported a $349 million Q1 loss, down from a $105 million profit last year, largely due to declines in crypto asset valuations

• IPO will be listed on the NYSE under the ticker “BLSH”, with J.P. Morgan, Jefferies, and Citigroup as lead underwriters

Why More Startups Are Buying Other Startups In 2025 (Crunchbase, 4 minute read)

Startup acquisitions by fellow startups are on the rise in 2025 as fundraising remains challenging and AI competition intensifies. In the first half of the year, 427 global startup M&A deals were reported, an 18% increase over the same period in 2024. Founders are turning to acquisitions to broaden tech capabilities, consolidate IP, and attract investment with stronger narratives

• Some larger startups that raised funds during the 2021 boom are now deploying capital to acquire peers offering complementary technology, traction, or talent, rather than pursuing down rounds

• Notable deals include OpenAI’s $6.5 billion acquisition of Io, Ripple’s $1.25 billion buyout of Hidden Road, and Databricks’ $1 billion deal for Neon

• Many buyers favor asset acquisitions or acquihires, integrating small teams and IP for rapid go-to-market advantages, especially in AI

WHAT A TIME TO BE ALIVE

VC industry has become a better career for women over the past 7 years (TechCrunch, 3 minute read)

Women are gaining ground in the venture capital industry, with a new All Raise report, first covered by The Wall Street Journal, showing that 18.6% of senior roles at top VC firms are now held by women, double the percentage from 2018. The report also found that 25% of women in VC were promoted last year and that 75% of investors remain focused on backing underrepresented founders

• Despite this progress, women still hold relatively few top roles at mega-funds managing over $3 billion

• However, many are forging their own paths: over 100 women-led funds launched in the past decade, and nearly 180 women-led firms collectively raised $5.3 billion in 2023

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