The Week’s 10 Biggest Funding Rounds: OpenAI Lands $10B; Paradigm Raises $203M

This is a weekly feature that runs down the week’s top 10 announced funding rounds in the U.S. Check out last week’s biggest funding rounds here.

Artificial intelligence is certainly having a moment right now. This week it was all about OpenAI with its massive $10 billion round — a round so big, it’ll be hard for any company to top all year. Right now, it seems every startup is claiming to use AI in some form or another, and why not? Those two letters are getting strategics and VCs excited all the same. It’ll be interesting to see what it does to venture overall in the next six months.

1. OpenAI, $10B, artificial intelligence: The deal had been rumored for weeks, but was finally made official. Microsoft confirmed it has agreed to a “multiyear, multibillion-dollar investment” into OpenAI, the startup behind the artificial intelligence tools ChatGPT and DALL-E. The exact dollar amount was not confirmed, but Semafor reported earlier this month that Microsoft was in talks to invest as much as $10 billion. The deal follows a $1 billion investment in 2019 from Microsoft into the AI startup. It will help position Microsoft in what will be an all-out battle for AI dominance with other tech giants such as Alphabet and Amazon. Earlier this month The Wall Street Journal reported the startup could be valued at $29 billion thanks to a new tender offer.

2. Paradigm, $203M, health care: New York-based Paradigm emerged this week looking to take on one of the more complicated aspects of the health care industry. The startup, conceived by Arch Venture Partners and co-incubated by Arch and General Catalyst, raised a $203 million Series A. Paradigm is trying to change the way clinical trials are run, making it more equitable for patients to get in on them while also making it easier for health care providers to participate and cooperate. The tech-enabled platform aims to open up trials for more people and reduce barriers such as location and finance as it also looks to accelerate the clinical research process. Time will tell if it is successful — the startup already has big-name backers.

3. Boston Metal, $120M, cleantech: Certain parts of cleantech seem to do well in turbulent VC times, and right now eliminating greenhouse gas is big. Boston Metal was the latest to get funding in the cleantech space, taking in a big $120 million round led by steel and mining company ArcelorMittal. The startup is creating equipment that is able to take heavy greenhouse gas emissions out of steel production. It hopes to go to market with its solution by 2026. Founded in 2012, the company has raised nearly $191 million, per Crunchbase.

4. Alleviant Medical, $75M, medical devices: Austin, Texas-based Alleviant Medical landed a $75 million equity financing co-led by S3 Ventures and RiverVest Venture Partners to help combat heart failure. The medical device company is developing a no-implant interatrial shunt for heart failure — the leading cause of hospitalizations worldwide. Alleviant is preparing to go to trial with its device, and expects to enroll 400 to 700 patients at sites worldwide. Founded in 2017, the startup has now raised $88 million, per Crunchbase.

5. (tied) Osmo, $60M, artificial intelligence: Yet another AI company. However, this one is a little different. Osmo — a spinout of Google Research — is trying to give computers a sense of smell. Its goal is to scientifically create molecules to be used in perfumes, candles, etc. The company launched with this Wired article, where it’s reported the Cambridge, Massachusetts, startup raised $60 million in an initial funding round led by New York-based Lux Capital and GV.

5. (tied) QuickNode, $60M, blockchain: It has been a tough fundraising environment for Web3 startups lately. However, that didn’t stop Miami-based blockchain development platform QuickNode from closing a $60 million Series B funding led by 10T Holdings that values the company at $800 million. QuickNode helps developers build and scale Web3 applications faster. The startup said it grew its user base 400% and its revenue 300% in the past year. Founded in 2017, the company has raised nearly $102 million, according to Crunchbase.

7. Angle Health, $58M, health care: Like we said, AI is a big buzzword right now — even when it comes to health care. Angle Health locked up a $58 million Series A led by Portage this week. The San Francisco-based startup offers an “AI-enabled technology platform” that helps employers tailor health care plans that include traditional health benefits as well as  telemedicine, behavioral health and other digital health solutions. Founded in 2019, the company has now raised $62 million, per Crunchbase.

8. Cygnvs, $55M, cybersecurity: Los Altos, California-based Cygnvs officially launched with a $55 million Series A led by Andreessen Horowitz. The company offers a cyber crisis platform that helps companies prepare and practice for a security event.

9. (tied) Crux, $50M, big data: San Francisco-based data integration and observability platform Crux announced a  $50 million venture funding led by Two Sigma and Goldman Sachs Asset Management. Founded in 2017, Crux says it has raised a total of $157 million.

9. (tied) Forward Networks, $50M, information technology: Santa Clara, California-based digital twin network modeling software developer Forward Networks closed a $50 million Series D led by MSD Partners. Founded in 2013, the company has raised more than $112 million, according to Crunchbase.

Big global deals

OpenAI was not the only private company to see a round in the billions.

• London-based global life insurance group Resolution Life raised a $1 billion investment from Nippon Life.
• Canada-based Blockstream, a bitcoin and blockchain technology platform for financial markets, raised a $125 million convertible note round.

Methodology

We tracked the largest announced rounds in the Crunchbase database that were raised by U.S.-based companies for the seven-day period of Jan. 21-27. Although most announced rounds are represented in the database, there could be a small time lag as some rounds are reported late in the week.

Illustration: Dom Guzman

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