Dealmaker by The Information Staff

Two times/week

Dealmaker

By The Information Staff

Venture capital is at a crossroads. Reporters Cory Weinberg and Natasha Mascarenhas tell you what’s coming next, who’s winning—and who’s losing—in the high-stakes world of startup investing.

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Recent Editions

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How the Tariffs Will Roil Venture Capital

By Natasha Mascarenhas and Sri Muppidi · Apr 3, 2025 3:22pm PDT

President Donald Trump’s decision to impose big tariffs on imported goods may feel like an issue for supply chain managers or chip developers. But the stock market’s decline today shows that all markets are interconnected. For venture capital, the impact may be more indirect. Asked if the tariffs would affect venture investors, Tomasz... President Donald Trump’s decision to impose big tariffs on imported goods may feel like an issue...

OpenAI CEO Sam Altman. Photo via Getty

A ‘Biblical’ Test of AI Investor Faith

By Cory Weinberg · Apr 1, 2025 2:50pm PDT · 2 comments

OpenAI CEO Sam Altman described the awe-inspiring usage of ChatGPT’s new image generation tool a few days ago as “biblical.” His use of religious terminology fits the moment. The money that Altman, Elon Musk and tech giants require to finance chips, data centers and power is a test of faith for Wall Street. OpenAI CEO Sam Altman described the awe-inspiring usage of ChatGPT’s new image generation tool a...

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Chinese Startup Behind Manus AI Agent Seeks $500 Million Valuation

By Natasha Mascarenhas, Juro Osawa and Jing Yang · Mar 27, 2025 11:16am PDT

The Chinese startup that operates Manus, the artificial intelligence agent that became a viral hit in the U.S. earlier this month, is in talks with potential investors including U.S. venture capital firms to raise a new funding round at a valuation of at least $500 million, up around fivefold from its previous valuation, according to three... The Chinese startup that operates Manus, the artificial intelligence agent that became a viral...

MIchael Moritz. Photo via Getty

This IPO Slate Won’t Have Many Major VC Winners

By Cory Weinberg · Mar 25, 2025 3:36pm PDT

MIchael Moritz. Photo via Getty

This IPO Slate Won’t Have Many Major VC Winners

By Cory Weinberg · Mar 25, 2025 3:36pm PDT

Three technology companies are preparing to go public with valuations north of $15 billion over the next few weeks. So, cue the balloons on Sand Hill Road, the party at the Rosewood, the juicy bonuses for venture capitalists? Not so fast. The largest shareholder of AI cloud upstart CoreWeave is a debt-focused hedge fund. The biggest backer... Three technology companies are preparing to go public with valuations north of $15 billion over...

Photo via Insight Partners

Insight’s Wiz Win; CoreWeave’s Skeptics Speak Up

By Cory Weinberg · Mar 20, 2025 3:48pm PDT

Wiz’s $32 billion sale to Google is giving at least one venture capital megafund a case study for why it can pay to double and even triple down on top startups.Insight Partners, the VC and private equity giant that owns 8% of Wiz, wrote to limited partners Tuesday that the transaction turned a $213 million investment into $2.6 billion. Including... Wiz’s $32 billion sale to Google is giving at least one venture capital megafund a case study for...

Parker Conrad, founder and CEO of Rippling. Photo via Getty

Investors React to Rippling vs. Deel; Susa's $175 Million Seed Fund

By Sri Muppidi · Mar 18, 2025 1:44pm PDT · 1 comment

For Silicon Valley venture capitalists dealing with overpriced bets made during the low-interest rate period, Rippling and Deel have been bright spots. The San Francisco HR rivals passed new revenue milestones and minted higher valuations—great news for investors who poured a combined $2 billion into both startups. By some measures, Deel’s... For Silicon Valley venture capitalists dealing with overpriced bets made during the low-interest...

Mira Murati. Photo via Getty

Mira Murati’s Stock-Option Strategy Pays Off With Recruits

By Natasha Mascarenhas, Kalley Huang, Stephanie Palazzolo and Rocket Drew · Mar 13, 2025 3:44pm PDT · 1 comment

It says something about the hype around ex-OpenAI executive Mira Murati’s new startup, Thinking Machines Lab, that when Sequoia Capital’s Alfred Lin said his firm was “talking” to the startup, that was deemed worthy of a headline.We’ll do you one slightly better: Murati has told people she’s also had conversations with Vinod Khosla, an early... It says something about the hype around ex-OpenAI executive Mira Murati’s new startup, Thinking...

Photo via Getty

A VC-Backed Startup Tempts Volatile Stock Market

By Cory Weinberg · Mar 11, 2025 2:54pm PDT

Photo via Getty

A VC-Backed Startup Tempts Volatile Stock Market

By Cory Weinberg · Mar 11, 2025 2:54pm PDT

Venture capitalists backing Hinge Health, which sells software to help people dealing with chronic pain, were likely cheering on Monday when the company filed to go public. It turned out to be the worst day of the year for the stock market, with the S&P 500 falling nearly 3%. Hinge was one of the few tech firms to attempt to go public... Venture capitalists backing Hinge Health, which sells software to help people dealing with...

Limited Partners Kvetch About Cash Crunch; Altimeter’s VC Returns

Limited Partners Kvetch About Cash Crunch; Altimeter’s VC Returns

By Sri Muppidi · Mar 6, 2025 4:11pm PST

I’ve spent the last few days at March Capital’s Montgomery Summit. The mood was pretty buoyant: preparations to go public by startups such as CoreWeave were stoking excitement among venture capitalists and their backers, who have been waiting three years for exits that can return their investments. But the chill in the Santa Monica air also... I’ve spent the last few days at March Capital’s Montgomery Summit. The mood was pretty buoyant:...

Plaid co-founder Zach Perret. Photo via Getty

Plaid’s Valuation Haircut, CoreWeave’s Good Timing

By Cory Weinberg · Mar 4, 2025 3:32pm PST

Two very different startups, Plaid and CoreWeave, have been preening themselves in recent weeks to raise money. Their diverging fortunes show how timing, luck and fast-changing tech trends can create and destroy value quickly. Plaid is a victim of circumstance. The fintech startup is working on a secondary share sale, led by mutual fund... Two very different startups, Plaid and CoreWeave, have been preening themselves in recent weeks...

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The Coming AI Down Rounds; Plus, Always Be Raising

By Natasha Mascarenhas · Feb 27, 2025 1:40pm PST · 1 comment

You could sum up the vibe at this year’s Upfront Summit, the Los Angeles gathering of venture capitalists and the limited partners who back them, as: always be raising. Followed closely by, beware a correction in artificial intelligence startups. Mark Suster, a partner at Upfront Ventures, kicked off the event by shouting out fund managers... You could sum up the vibe at this year’s Upfront Summit, the Los Angeles gathering of venture...

The New York Stock Exchange floor earlier this year. Photo via Getty.

What’s at Stake for Upcoming ‘Jumbo’ IPOs

By Cory Weinberg · Feb 25, 2025 4:30pm PST

The New York Stock Exchange floor earlier this year. Photo via Getty.

What’s at Stake for Upcoming ‘Jumbo’ IPOs

By Cory Weinberg · Feb 25, 2025 4:30pm PST

I’m overcaffeinated from a string of meetings in San Francisco this week. I’m asking people how long the venture capital industry can keep pouring money into startups without getting much cash back from initial public offerings or mergers. One manager compared this dynamic to a traffic jam. We’ll soon know whether this backlog will... I’m overcaffeinated from a string of meetings in San Francisco this week. I’m asking people how...

Figure AI's Figure 02 robot. Photo via Figure AI.

SPVs Are Circling Robotics Startup's $40 Billion-Valuation Funding Round

By Natasha Mascarenhas · Feb 20, 2025 4:51pm PST

Special purpose vehicles are now a mainstay in venture capital, showing up in some of the biggest deals in artificial intelligence, from OpenAI to Anthropic, as a flexible way to raise cash from a larger pool of investors.Now fund managers are considering using SPVs to fund a huge new round for Figure AI, a three-year-old startup that builds... Special purpose vehicles are now a mainstay in venture capital, showing up in some of the biggest...

Ilya Sutskever. Photo via Getty.

Is VC’s Smart Money Losing Its Mind or Ahead of the Curve?

By Cory Weinberg · Feb 18, 2025 3:43pm PST

The question “What did Ilya see?” became an oft-repeated meme asking why OpenAI’s chief scientist, Ilya Sutskever, cast a dramatic vote to oust Sam Altman in the short-lived ouster of the CEO 15 months ago. A significant fundraising that would value Sutskever’s new startup, Safe Superintelligence, at more than $30 billion turns that... The question “What did Ilya see?” became an oft-repeated meme asking why OpenAI’s chief...

Why Early-Stage Founders Are Opting to ‘Seed-Strap’ Their Startups

By Natasha Mascarenhas · Feb 13, 2025 4:04pm PST

Artificial intelligence startups such as coding assistant Cursor and legal AI software-maker Harvey have become fundraising beasts, raising hundreds of millions of dollars in rounds just months apart. But some founders are bucking that trend, instead opting to “seed-strap” their businesses, using revenue to expand operations after an initial... Artificial intelligence startups such as coding assistant Cursor and legal AI software-maker...

Photo via Getty

Will We Get a $1 Trillion Private Tech Firm?

By Cory Weinberg · Feb 11, 2025 3:29pm PST

Photo via Getty

Will We Get a $1 Trillion Private Tech Firm?

By Cory Weinberg · Feb 11, 2025 3:29pm PST

Will a private tech company reach a $1 trillion valuation in the coming years? It’s not a ridiculous question. A couple of companies seem like potential candidates. OpenAI is closing in on $300 billion in its financing with SoftBank, and SpaceX recently shot to $350 billion. Will a private tech company reach a $1 trillion valuation in the coming years? It’s not a...

General Catalyst CEO Hemant Taneja. Art by Clark Miller. Photo via Getty.

General Catalyst Stretches the Definition of Venture Capital

By Natasha Mascarenhas · Feb 6, 2025 5:15pm PST

General Catalyst seems to be drawing a blueprint for what it means to be a venture capital firm that is not just a venture capital firm. Earlier this week, the 25-year-old firm announced it would be expanding into wealth management, led by a team of former First Republic Bank staffers. And now, three people who have spoken to the firm tell... General Catalyst seems to be drawing a blueprint for what it means to be a venture capital firm...

President Trump, center, signs an executive action to create a sovereign wealth fund for the U.S. Photo by Getty

What Trump’s Sovereign Wealth Fund Could Mean for Tech

By Cory Weinberg and Ken Brown · Feb 4, 2025 3:30pm PST · 1 comment

The U.S. should start a sovereign wealth fund and maybe it should invest in TikTok, President Trump suggested earlier this week. Well, maybe. But if the fund ever does come to life, its money would be arguably better spent on a bigger, more speculative investment: Stargate, the $500 billion OpenAI-SoftBank-Oracle data center expansion that Trump... The U.S. should start a sovereign wealth fund and maybe it should invest in TikTok, President...

Peter Deng at South by Southwest 2024. Photo via YouTube/SXSW.

A Former OpenAI Leader Jumps to Felicis; SoftBank Doubles Down

By Natasha Mascarenhas · Jan 30, 2025 3:01pm PST

Hi - Before we get into today’s column, some breaking news: OpenAI is in talks to raise another giant round, of about $40 billion, led by SoftBank, which would value the ChatGPT maker at $300 billion including the investment—nearly double its valuation late last year in a Thrive Capital-led round. OpenAI will use some of the money to fund its... Hi - Before we get into today’s column, some breaking news: OpenAI is in talks to raise another...

SoftBank CEO Masayoshi Son. Photo via Getty

SoftBank’s Stargate Risks

By Cory Weinberg · Jan 28, 2025 3:00pm PST

SoftBank CEO Masayoshi Son. Photo via Getty

SoftBank’s Stargate Risks

By Cory Weinberg · Jan 28, 2025 3:00pm PST

Uber CEO Dara Khosrowshahi gave the tidiest summation six years ago for why tech CEOs have made countless 11-hour flights from San Francisco to Tokyo to court SoftBank’s Masayoshi Son: “Rather than having their capital cannon facing me, I’d rather have their capital cannon behind me, all right?” Sam Altman was the latest to make the... Uber CEO Dara Khosrowshahi gave the tidiest summation six years ago for why tech CEOs have made...