Mercor Raises $350M, SoftBank's $22.5B Bet on OpenAI, and Veeam's $1.725B Acquisition - AI Funding Brief #37

October 28, 2025 - AI Funding Brief
Hi there,

Welcome to this edition of the AI Funding Brief, where we delve into the latest funding and investment news within the world of AI businesses. This week, several AI companies have made significant strides in securing substantial investments to fuel their growth and innovation. Second Nature has raised $22 million to enhance its AI-based sales training platform, while Mercor has secured a whopping $350 million in Series C funding, boosting its valuation to $10 billion. These funds are set to expand their talent network and improve their matching systems.

In other news, EvenUp has raised $150 million to enhance its AI tools for personal injury law, and Sakana AI is in talks to raise $100 million to expand its teams and achieve profitability. Meanwhile, Hyro has secured $45 million to boost AI agent development in healthcare, and Starship Technologies has raised $50 million to expand its autonomous delivery services in the US. These stories highlight the dynamic nature of the AI industry and the continuous flow of investments driving innovation and expansion.
Mercor Raises $350 Million, Valuation Hits $10 Billion
AI startup Mercor has raised $350 million in a Series C funding round, boosting its valuation to $10 billion. The company plans to expand its talent network and improve its matching systems. Read more
Second Nature Raises $22M for AI Sales Training
On October 16, 2025, Second Nature announced it has raised $22 million in Series B funding to enhance its AI-based sales training platform. Read more
EvenUp Secures $150 Million to Boost AI for Personal Injury Law
EvenUp, a legal AI company, has raised $150 million in a Series E funding round to enhance its AI tools for personal injury law, reaching a valuation of $2 billion. Read more
Sakana AI Seeks $100 Million Funding at $2.5 Billion Valuation
Sakana AI, a Tokyo-based AI startup, is in discussions with investors to raise $100 million, aiming for a $2.5 billion valuation. The funds are intended to expand their engineering and sales teams. Read more
Hyro Secures $45 Million for AI in Healthcare
Hyro has raised $45 million in a funding round led by Healthier Capital to enhance AI agent adoption in healthcare, with the platform already used by over 45 health systems in the U.S. Read more
Starship Technologies Raises $50 Million for US Expansion
The Estonian-founded company Starship Technologies has secured $50 million to expand its autonomous delivery services in US cities, aiming to replicate its European success. Read more
Fal.ai Valued Over $4 Billion After $250M Funding
Multimodal AI startup Fal.ai has secured $250 million in a funding round, elevating its valuation to over $4 billion. The investment was led by major firms including Kleiner Perkins and Sequoia. Read more
EQT Life Sciences Co-Leads $183M Series C for Electra Therapeutics
Electra Therapeutics has raised $183 million in Series C financing, co-led by EQT Life Sciences and Nextech, to advance AI-enabled drug development. The funds will support clinical studies for ELA026 and expand research into hematologic cancers and immunology. Read more
Kaggle Founders Raise $38.5M for Sumble's AI Platform
Founders of Kaggle, Anthony Goldbloom and Ben Hamner, have secured $38.5 million in funding for their AI sales intelligence startup, Sumble. The funds will be used to enhance sales prospecting through contextual intelligence. Read more
Nvidia Invests $350 Million in Redwood Materials
Nvidia has invested $350 million in Redwood Materials, a battery recycling startup, to support energy storage systems for AI data centers in the US. Read more

Mergers & Acquisitions

RecordPoint has acquired Redactive to bolster its data security solutions for regulated industries, while Veeam announced its acquisition of Securiti AI for $1.725 billion to enhance its data security offerings. These strategic moves highlight the ongoing trend of leveraging AI to strengthen data governance and security capabilities.

Other Funding News

SoftBank Group has approved a $22.5 billion investment in OpenAI to support its transition to a for-profit entity and potential IPO. Meanwhile, Cohere Inc. is planning an initial public offering, considering a listing on the London Stock Exchange, as stated by CEO Aidan Gomez.

Startup Funding

VitVio has raised $8 million to enhance its AI platform for operating rooms, while Spacial secured $10 million to automate construction processes with AI. These investments highlight the growing trend of AI integration in diverse sectors, from healthcare to construction.

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