🚀 Startups Weekly: Big Bets on AI, Security & Sovereignty (May 2025)

Welcome to Startups Weekly your weekly recap of everything you can’t miss from the world of startups. Want it in your inbox every Friday? Sign up here.

Even when uncertainty shakes the market, innovation doesn’t stop. If anything, the past week proved that some startups — especially those focused on security, AI, and resilience — are thriving under pressure.

Welcome to Startups Weekly, your go-to recap of what matters most in the world of startups, funding, and tech trends. From billion-dollar bets on banking software to stealth-mode AI labs, we’ve got the highlights you can’t afford to miss.

🗓️ Want this roundup in your inbox every Friday? [Subscribe here] and never miss an update.

📈 Market Reality: Money Still Flows Where It Matters

When global markets cool, venture capital typically retreats. But some sectors prove countercyclical — and this week, AI and security took center stage.

🔐 Security Is Recession-Proof

Startups that focus on cybersecurity and compliance continue to draw big checks.

• Data, a security compliance firm, acquired Safe Base for a whopping $250 million.

• CyberArk, a leader in identity security, snapped up Zilla Security for $165 million in cash, plus another $10 million tied to milestones.

In a world where digital threats evolve faster than regulations, security is not optional — and investors know it.

🤖 AI: Still the Kingmaker

Despite a tough year for startups overall, AI startups raised $110 billion in 2024, up 62% from 2023. That’s massive — especially when overall startup funding dropped 12% year over year.

One key trend? The rise of national AI champions, especially in Europe.

🇫🇷 Mistral AI Leads in France

During the Paris AI Summit, French startup Mistral AI made headlines with its chatbot Le Chat, which became the most downloaded iOS app in France this week. European investors are clearly backing AI as a strategic asset, not just a tech play.

🧱 Sovereignty, Resilience & Deep Tech Rise

Startups tied to national sovereignty, resilience, and long-term infrastructure are attracting record funding.

• In Europe, defense and resilience tech startups raised $5.2 billion in 2024 — making up 10% of all VC funding in the region.

This shift toward “sovereign innovation” reflects growing interest in tech that supports national independence, data protection, and critical systems.

💰 Top Funding Rounds of the Week

Let’s dive into the most notable startup raises that happened this week:

🏦 Zeta

• Sector: Fintech / Banking-as-a-Service

• Raise: $50 million

• Valuation: $2 billion

• Details: The Bengaluru-based banking software startup raised funds from a strategic investor, signaling confidence in infrastructure fintech.

🧪 QuEra Computing

• Sector: Quantum Computing

• Raise: $230 million (convertible note)

• Backed by: Google

• Insight: The startup is focused on quantum hardware, and the raise suggests a significant jump in valuation, according to the CEO.

🌲 Chestnut Carbon

• Sector: Climate Tech

• Raise: $160 million Series B

• Mission: Converting old farmland into forests for carbon removal. A big step for nature-based climate solutions.

🩺 Harrison.ai

• Sector: AI in Healthcare

• Raise: $112 million Series C

• Products:

  • Annalise.ai – Radiology diagnostics

  • Franklin.ai – Pathology support

• Region: Australia

• Takeaway: Medical AI continues to scale, especially with multimodal diagnostics gaining traction.

💳 Candid Health

• Sector: Healthtech / Medical Billing

• Raise: $52.5 million Series C

• Insight: Just 6 months after a $29 million raise, Candid is rapidly scaling solutions to simplify complex billing processes in healthcare.

🧬 Latent Labs

• Sector: AI Biotech

• Raise: $50 million (stealth mode exit)

• Founder: Ex-DeepMind researcher

• Mission: Applying deep learning to biotech — still hush-hush, but worth watching.

🔮 Volantis

• Sector: Customer Lifetime Value (CLV) Analytics

• Raise: $41 million

• Insight: Combines AI with predictive business modeling to help companies forecast user value and drive smarter growth.

Most interesting VC and funding news this week

📊 VC Spotlight: Founders Fund Reloads

Peter Thiel’s Founders Fund is reportedly on track to raise another $3 billion growth fund — its third to date.

The fund’s past bets include Stripe, SpaceX, and Palantir, and it continues to back bold, category-defining startups. Expect more late-stage investing in 2025 from this powerhouse.

🎤 Founder Focus: Sheel Mohnot on AI, Fintech & Twitter Fame

Mary Ann Azevedo sat down with Sheel Mohnot, co-founder and general partner of Better Tomorrow Ventures — and if you follow startup Twitter, you’ve likely seen his insights (or memes).

Key Takeaways:

• He’s still bullish on fintech, especially embedded systems.

• Believes “everything is fintech” still holds true in 2025.

• Shared thoughts on AI’s role in reshaping financial services, and how consumer trust is evolving.

If you missed the full interview, it’s worth a listen — especially if you’re building in fintech or early-stage VC.

Last but not least

💡 Final Thoughts: Follow the Signals

This week’s startup pulse makes one thing clear:Even in tough markets, mission-critical sectors still thrive.

• Security is hot — and recession-proof.

• AI isn’t cooling down — it’s evolving.

• Deep tech and resilience play long games — and investors are betting big.

If you’re building in any of these sectors, 2025 might be your moment to scale.

📬 Don’t miss the next edition of Startups Weekly —[Subscribe to CloudWireHub] and stay ahead of the curve.