Welcome back to a different recap of Equity, TechCrunch’s flagship startup business podcast. This episode is packed with deals, hot topics, and the latest drama from the tech world. If you have not listened yet, consider this a spoiler-filled invitation to dig deeper.
Three offers of the week
Formation Bio raised $372 million
First up we have Formation Bio, an AI-focused drug development startup that just raised a staggering $372 million in Series D funding, led by Andreessen Horowitz. This brought their total funding to over $600 million. Formation Bio uses artificial intelligence to streamline the drug development R&D process, making it faster and cheaper. Their AI applications aid in patient recruitment, predict drug toxicity, and improve overall drug effectiveness. With its eczema treatment in Phase 3 clinical trials and other promising candidates in the pipeline, Formation Bio is in the race to shake up the pharmaceutical industry.
The big deal for Volkswagen and Rivian
Kirsten then discussed the surprising partnership between Volkswagen Group and Rivian. Volkswagen is expected to take a position as much as $5 billion in Rivian, starting with an initial $1 billion. This agreement gives VW access to Rivian’s cutting-edge electrical architecture expertise and strengthens Rivian’s financial position as they develop their next-generation vehicles. Rivian shares skyrocketed after the announcement: The market is a fan, apparently! This partnership might be a breakthrough for each corporations, combining Rivian’s modern technology with Volkswagen’s vast resources and market reach.
Nubank acquires Hyperplane
Finally, Mary Ann highlighted Nubank’s acquisition of Hyperplane, an artificial intelligence startup for banks. San Francisco-based Hyperplane helps banks use first-party data to create personalized customer experiences by predicting user behavior. With this acquisition, Nubank, the largest digital banking platform outside Asia, gains significant technological benefits. It gives the company access to over 100 million customers, meaning Nubank can now offer much more tailored services, increasing customer engagement and retention.
And our two topics of the week
Welcome to fediverse
Haje took us on a deep dive into the fediverse, a decentralized network of social media platforms like Mastodon, Threads, and even Trump’s Truth Social. Fediverse has seen a surge in popularity, especially after Elon Musk took over Twitter (now X). Mastodon, for example, has nearly tripled its user base since Musk acquired it. The appeal lies in its decentralized nature, offering users greater control and area of interest communities. Whether you are a photographer, a journalism enthusiast, or just someone bored with traditional social media, fediverse has something for you.
DEI and meritocracy in technology
We discussed the ongoing DEI (Diversity, Equity, Inclusion) debate in technology in a more controversial segment. Scale AI founder Alexander Wang recently sparked a debate by advocating MEI (Merit, Excellence, Intelligence) over DEI. This was met with support from big names reminiscent of Elon Musk and Palmer Luckey, but also faced significant criticism.
The statistics are troubling: the number of recent women recruited into the US data industry has dropped dramatically, and the variety of DEI-related job offers has plummeted.
This episode of Equity was a rollercoaster of breakthrough deals and heated debate – whether you are here for the latest startup successes or to dive deeper into industry challenges, we have you covered.