🕶️ Cancel that! FTC reveals sneaky subscription tactics

Six bullets of updates

1. 🤖 OpenAI’s new startup fund backs an AI healthcare venture with Arianna Huffington, aiming to transform health tech.

2. 💶 LUMO Labs launches a €100 million fund to support impact-driven European tech startups, focusing on AI, blockchain, and more.

3. 🇮🇸 Frumtak Ventures confirms Iceland's global ambitions with an $87 million fund focused on innovative startups.

4. 🚁 Air taxis by Volocopter will debut at the Paris Olympics, with only two flights per hour allowed. Is Macron onboard?

5. 🔍 Humane execs leave to launch an AI fact-checking startup, securing $14 million in funding.

6. 🌦️ Wayther's new iOS app provides weather forecasts tailored to road trips, making travel planning a breeze.

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Startup valuations: the great rebound of 2024

The startup ecosystem has seen a quiet yet significant rebound in valuations, reaching all-time highs, particularly for early- and late-stage deals in the first half of 2024. This recovery marks a shift from the venture slump that began in early 2022, with investors like IVP’s Tom Loverro suggesting that startups transition from cash preservation to growth spending. Data from PitchBook indicates a marked recovery in investor willingness to pay higher prices for U.S.-based startups, reversing the downward trend of 2023. Fintech, despite its previous unpopularity, has seen notable examples like Monzo’s valuation increase to over $5 billion. Many startups have achieved or exceeded their prior valuations through cost-cutting measures, contributing to the improved market sentiment.

However, deal volume remains low, benefiting only strong companies. Many startups still face challenges securing higher valuations. Renewed optimism about inflation control, potential interest rate cuts, and the booming stock market, particularly in AI, are driving this selective recovery. Read more!

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Startup Events and Deadlines

1. Crash Course in Financial Modeling | July 16 | Webinar

2. Financial Modeling Bootcamp | July 22 | Bootcamp

3. How to close a Funding Round | July 24 | Webinar

4. SaaStock: Dublin | August 14 | Conference

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These companies just raised money

1. 🚀 Index Ventures raises $2.3B for new venture and growth funds, with $800M dedicated to early-stage startups.

2. 🤖 AI startup Hebbia secures $130M at a $700M valuation, driven by $13M in profitable revenue, proving AI's lucrative potential.

3. 💼 Marc Andreessen and Sequoia back Kearny Jackson's new $65M fund, following their $14M second fund in 2023.

4. 🌿 NovoNutrients raises $18M to build a pilot plant to prove its CO2-to-protein fermentation process works.

5. 💰 Paraguayan-Bolivian fintech Bucksapp raises $1M pre-seed to enhance tech and expand across LatAm, processing over 20M transactions.

6. 📚 Brazilian edtech startup Realize raised $300K to boost sales, marketing, and enhance its LMS-integrated platform.

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Subscription apps' dirty secrets revealed

A recent FTC study, along with international consumer protection networks, revealed that 76% of 642 analyzed subscription websites and apps use manipulative design techniques known as "dark patterns". These practices, which include auto-renewal tricks and difficult cancellation processes, are designed to push users into actions they might not otherwise take, often putting their privacy at risk. The study highlighted the prevalence of tactics such as sneaking, obstruction, and nagging, indicating a widespread issue across the industry.

The findings suggest a potential increase in FTC scrutiny on such consumer fraud practices. The study, conducted with the International Consumer Protection and Enforcement Network, found common dark patterns like forced actions and social proof, where users are influenced by the behavior of others. Learn more about dark patterns.

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Top 6 (Funded) startups that DESERVED to burn