For an AI startup, high valuations are good news. Okay fine?

In AI, we’re seeing some startups command incredibly high valuations. By now this is an obvious thing to say, but it bears repeating because the examples abound. Only two cases in point: perception is. Worthwhile At $2 billion at six months old, while Lightspeed-backed Foundry came out of stealth last month with a $350 million valuation.

Valuations are interesting both for their accuracy and their knock-on effects: a high valuation gets media attention, and that’s really something to survive for a startup, especially one that’s young. In theory, higher valuations are also clearly good news when it comes to attracting talent.

not so fast. My colleague Sharon Goldman and I published a story debunking an emerging trend: that high cost can sometimes be a detriment rather than an asset when it comes to recruiting top AI talent. As Lightning AI CEO William Falcon said:

“I don’t want to be in a situation where it’s hard to hire people,” he told Fortune, adding that he wants to make sure the company’s revenue is in line with potential valuations, thus an eventual “down round.” The risk should be limited. “Where employees’ equity shares can end up underwater. Today’s job candidates are smart to ask questions about the company’s financial future, he asserts: “Every single employee asks me, ‘Your value. What is it?’ ‘How much money do you earn today?’ ‘How many customers do you have?’ ‘What is your revenue plan?’

This is not to say that a lower valuation is the answer, as it creates different recruitment problems: “When the price is low…it may be difficult to convince a potential employee that the price will increase in the future. Ga,” Jeff said. Philher, co-founder of Craft Ventures and partner by email.

“Divisions are promises, not just numbers,” said Katelyn Holloway, founding partner of SevenSevenSix.

This tension highlights the search for a sweet spot, where everyone (potential employees included) feels comfortable running out of the startup room.

But, in the end, even the extent of the company’s potential comes down to a matter of perspective.

Because like beauty, value is in the eye of the beholder.

Read the full story here.

See you tomorrow,

Joe Abrams prepared the deals section of today’s newsletter.

Venture deals

– Enlaza TherapeuticsA La Jolla, California-based biopharmaceutical company designed to improve efficacy and safety in the treatment of cancer and other diseases has raised $100 million in Series A funding. The Life Sciences Group of JP Morgan Asset Management’s private capital division Led the round and was joined by existing investors. Frazier Life Sciences, Avalon Ventures, Lightspeed Venture Partners, Samsara Bio Capitaland others.

– The i-dasha San Jose, California-based developer of software designed to make critical infrastructure processes more sustainable and climate resilient, raised $58.5 million in Series C funding. Lightsmith Group Led the round and joined. Duke Energy, Sabanki Ventures, Marubeni Corporation, SE Venturesand others.

– Alicitya San Jose, Calif.-based developer of identity-based microsegmentation technology designed to defend against cyber threats, raised $37 million in Series B funding. Insight Partners.

– Safe BaseA San Francisco-based platform for cybersecurity reviews raised $33 million in Series B funding. Touring Capital Led the round and joined him. Zoom Ventures, NEA (New Enterprise Associates), Y Combinator, Comcast Ventures, Cerca Partners, Jim AlcoveChief Trust Officer at Salesforce, and others.

– ThintronicsThe Berkeley, Calif.-based supplier of electronic machinery for data center, networking, and other applications, raised $23 million in Series A funding. Maverick Capital And Translink Capital.

– vitestroAn Utrecht, Netherlands-based autonomous blood drawing technology developer has raised $22 million in funding. Without capital And NYBC Ventures Led and joined the round. Invest-NLthe European Innovation Council Fundand existing investors.

– Urban foresta London, UK-based provider of home insurance to renters and homeowners, raised $14.4 million in funding. Sony Innovation Fund and other existing investors.

– Screenversea New York City-based network of digital billboards, urban panels, and other advertiseable digital screens, raised $10.5 million in funding from Voluntary capital.

– Backed up.Zug, a Switzerland-based provider of services designed for financial institutions to tokenize their assets, raised $9.5 million in Series A funding. Gnosis Led the round and joined. Exor seed, Cyber ​​Fund, Mindset Ventures, Stack Capital Ventures, Blockchain Founders Fund, Blue Bay CapitalAnd Nunes Classics.

– X10a San Jose, California-based hybrid crypto exchange, raised $6.5 million in funding from Tioga Capital, Semantic Ventures, Cherry Ventures, Starkwareand others.

– exchangeThe London, UK-based operating system for e-commerce businesses raised $9 million in Series A funding. QED Investors Led the round and joined. Cherry Ventures, 9900 capital, 2100 VenturesAnd Ed Helen.

– The seama San Francisco-based AI-powered platform that combines sales and marketing data and uses AI to analyze it, raised $5 million in seed funding. Bessemer Venture Partners Led the round and joined. Coal Capital, F7 Ventures, Formal capital, Emami Capitaland others.

Private equity

– Kane Capital I acquired a minority stake. Essen Healthcare, an independent health care provider based in the Bronx, NY. Financial terms were not disclosed.

– Road Safe Traffic Systemsupported by Triatlantic North America And Invest CorpAcquired the Floor Marking Division of D’Angelo Contracting Services, Hazleton, Pa. Provider of maintenance services for transportation systems based on Financial terms were not disclosed.

– Specialized Aerospace Solutionssupported by Godspeed Capital Management received The Wilbrook solution, Huntsville, Ala.-based provider of analytics solutions to the Missile Defense Agency, Defense Intelligence Agency, NASA, Department of Defense, and commercial space users. Financial terms were not disclosed.

– Riverside Company received Working environment and energy technologyDistributor of third party consumables and laboratory/sanitary equipment in Kongsberg, Norway. Financial terms were not disclosed.

– Windows Health Investors I got the majority share Subject Well, an Austin, Texas-based platform designed to connect patients to clinical trials or treatments. Financial terms were not disclosed.

– Your behavioral healthA portfolio company of Comwest Partnersobtained Vision therapy programs, Pasadena and Van Nuys, Calif. I am a provider of outpatient mental health and adolescent addiction treatment. Financial terms were not disclosed.

Goes out.

– Carlin Consumer Health received PENETREXa San Diego, California-based brand of joint and muscle care products, from Wellbeam Consumer Healthsupported by American Pacific Group. Financial terms were not disclosed.

Other

– Ripple received Kinto, a Boston, Mass.-based platform that provides care coaching services to caregivers of family members with dementia. Financial terms were not disclosed.

– Zuora (NYSE: ZUO) Agreed to receive get upA Wilmington, India-based provider of Dell and Tamil Nadu, pricing. metering, and rating software. Financial terms were not disclosed.

IPOS

– Silvaco Group, a Santa Clara, Calif.-based developer of software designed to reduce time-to-market, development and manufacturing costs for semiconductor and photonics companies, raised up to $114 million in an offering of 6 million shares. It plans to price it at $17 and $19 on the Nasdaq. The company posted revenue of $54 million for the year ending December 31, 2023. SMIK Trust And Ilya Pesek Back to the company.

the people

– Baird CapitalChicago, Ill. based private equity and venture capital firms were hired. Anthony Zhou As Principal and Samuel Pollard As an investment partner in their private equity team. First Zhu was with. Madison Dearborn Partners And Pollard was along. PwC.

– Little John CapitalA Savannah, Ga. A private equity firm was promoted on the basis of Carl Schlottman To the principal

– Sofinova PartnersA venture capital firm based in London, UK, Paris, France, and Milan, Italy, promoted You are Gakilo And Guillaume Baxter partners.