The Dealflow by Founders Capital - Edition 21

Key News and Trends

From top hits to term sheets. Mantis Ventures, the venture firm founded by musicians Alex Pall and Drew Taggart of The Chainsmokers, has closed its third fund at $100 million. The fund brings total AUM to around $225 million and will continue backing early-stage B2B startups, with support from the duo’s celebrity reach and corporate network. Read more here.

Google took the brains, Cognition got the body. After OpenAI’s $3B acquisition attempt collapsed, reportedly due to IP concerns tied to Microsoft, Google swiftly poached Windsurf’s CEO, top researchers, and core talent in a $2.4B licensing and hiring deal to bolster its Gemini-powered coding tools. Days later, rival startup Cognition acquired Windsurf’s remaining IP, customers, and brand, absorbing what was left into its Devin platform. Read more here.

Lovable lives up to the name. Just eight months after launch, Swedish AI startup Lovable has hit unicorn status with a $200M Series A led by Accel, valuing the company at $1.8B. The platform, used by over 2.3M users to build websites and apps via natural language, has surged to $75M ARR with 180,000 paying subscribers, all with just 45 employees. Read more here.

Claude’s climbing the cap table. Anthropic is reportedly seeking to raise its next round at a valuation north of $100B, up from $61.5B earlier this year. The Claude-creator is said to be generating $4B in annualised revenue. Read more here.

Founder’s Take: Have celebrity-led ventures gone too far?

Over the past few years, we’ve seen a wave of celebrities, from the Sidemen to NFL stars, launching venture funds. It’s an eye-catching blend of influence and entrepreneurship, but it raises a fair question: just because you have followers, does that mean you can spot the next unicorn?

Take The Chainsmokers. Lots of people love their music, but what do they really know about venture capital? That said, they’ve just closed their third fund, and by now, it’s clear they’re not just tourists. They’ve managed to turn fame into a strategic asset, opening doors, building buzz, and giving their portfolio companies an edge most VCs can’t.

At Founders Capital, we’re all for shaking up the old guard and backing unconventional players. 

But as the line between audience and expertise keeps blurring, it’s fair to ask: when does the hype start outpacing the value?

Top Venture Deals

Hadrian  –  $260M Series C  (Founders Fund, Lux Capital)

• Torrance-based Hadrian, which builds automated factories to supply precision parts for the aerospace and defence industries, has raised a $260M Series C. The hefty new round will also go toward building out a new Arizona facility, dubbed “Factory 3,” slated to come online by Christmas 2025.  Read more here.

Perplexity –  $100M Series D Extension  (N/A)

• San Francisco-based Perplexity, the AI-powered search startup taking on Google, is now reportedly valued at $18B after allowing new investors to buy in at a premium, just two months after its previous round in May valued the company at $14B. Read more here.

Substack –  $100M Series C (BOND, The Chernin Group)

• Substack, the San Francisco-based newsletter and social platform, has raised a $100M Series C at a $1.1B valuation. The round was led by BOND and The Chernin Group, with Andreessen Horowitz, Rich Paul, and Jens Grede also participating. The eight-year-old startup now boasts over 5 million paid subscriptions and plans to use the funding to expand tools and global reach. Read more here.

Upcoming Public Offerings

Grayscale

• Continuing the trend of crypto companies filing to go public, Grayscale, a 10-year-old New York-based crypto asset manager with over $30 billion under management, has confidentially filed for an IPO. Read more here.

WeWork India

• WeWork India is preparing for an IPO that could raise up to $407M through a sale of 43.75M existing shares, including a third of WeWork Global’s 23% stake, potentially netting the parent company nearly $96M. The deal marks a rare bright spot following WeWork’s dramatic fall from a $47B valuation to bankruptcy. Read more here.

See you in the next edition,
Sam Scott and the Founders Capital Team