The Dealflow by Founders Capital - Edition 6

Key News and Trends

Today’s AI companies are tomorrow’s just... companies. AI and machine learning companies accounted for 57.9% of global VC deal value in Q1 2025, according to new PitchBook data, up sharply from 35.9% in 2024 and 25.2% in 2023. While it’s getting harder to distinguish true AI companies from the rest, that’s only because AI is becoming a core part of how enterprises operate today - a promising sign for the sector’s long-term impact. Read more here.

Stock tip of the week: ignorance is bliss. Markets plunged this week as fears of a global trade war reignited. The Nasdaq Composite fell 6%, its worst drop since 2020, while Apple shares tumbled more than 9%, leading a $2.5 trillion wipeout across the S&P 500. The selloff came after Trump announced plans to implement tariffs of between 10% and 49% on imported goods, targeting around 60 countries, especially those with large trade deficits. Read more here.

MBA Plan B: Become your own VC. The Harvard MBA Class of 2025 has launched Twenty25 Ventures, a student-run venture fund aimed at backing startups founded by their classmates. To qualify for funding, startups must be raising at least $500,000. It’s part of a broader trend of student-led funds emerging at top universities, offering early capital to promising founders while giving students hands-on investing experience. Read more here.

The clock’s ticking - and for TikTok, it’s almost midnight. TikTok has until tomorrow to sell its U.S. operations or face a nationwide ban, after lawmakers passed a bill targeting Chinese ownership. Potential buyers include Amazon, Oracle, and a group backed by VC giants like Andreessen Horowitz and Coatue. However, ByteDance says it won’t sell. With 170 million American users caught in the middle, the outcome could redefine how U.S. regulators handle foreign tech ownership. Read more here.

Key Founder’s Take: The Rise of Student-Backed VC - What Twenty25 Ventures Tells Us

This isn’t the first time an Ivy League school has launched a venture fund - Stanford, Wharton, and Berkeley have all done so within the past five years. But Twenty25 Ventures personifies two much bigger ideas.

First, the traditional ROI of an MBA is increasingly under question. At Harvard Business School, 23% of the Class of 2024 seeking jobs were still without offers three months after graduation, more than double the rate in 2022. Students are being forced to take their futures into their own hands, and launching a venture fund to back their peers is a powerful example of that shift.

Second, the democratisation of venture capital is well and truly underway. Rolling funds, angel syndicates, and even influencer-backed funds are rising in popularity. Twenty25 Ventures is another sign that VC is becoming more accessible, and the ways individuals can participate are getting ever more creative.

Top Venture Deals

OpenAI – $40B  (Softbank)

• OpenAI made history this week with its $40B raise at a $300B valuation - the largest funding round for a private tech company in history. OpenAI is set to receive $10B upfront, with the remaining $30B slated to arrive by year’s end. Read more here.

ReliaQuest – $500M  (EQT, KKR, FTV Capital)

• The Florida-based AI-powered security operations company has raised over $500M at a $3.4B valuation. ReliaQuest has grown its ARR over 4x since 2020, surpassing $300M, and continues to operate profitably. Read more here.

Agility Robotics –  $400M  (WP Global Partners)

• Oregon-based Agility Robotics is reportedly raising a $400M round at a $1.75B post-money valuation to scale production of its humanoid warehouse robot, Digit. The company has raised $320M to date and is backed by WP Global Partners and SoftBank. Read more here.

Upcoming Public Offerings

Circle Internet Group

• Circle, the company behind the USDC stablecoin, has filed to go public on the NYSE. Circle’s USDC is the second-largest dollar-backed stablecoin globally and plays a central role in the digital asset ecosystem. The company reported $1.7 billion in revenue for the year ending Dec. 31, 2024. Read more here.

Stubhub delays offering

• StubHub postponed its initial public offering plans yet again, this time in response to significant stock market fluctuations linked to new tariffs. The ticketing platform had intended to commence its investor roadshow but deferred due to a 5% drop in the S&P 500, fearing the instability could deter potential investors.. Read more here.

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