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New rounds will help startups challenge well-funded rivals

Welcome to Startups Weekly — your weekly recap of everything you can’t miss from the world of startups. Want it in your inbox every Friday? Sign up here.

It was once again the private market that generated the most funding-related news in the startup world this week, both for companies and for funds. But it would be a mistake to forget the public sector; startups gathered with lawmakers, while others obtained and lost licenses.

Most interesting startup stories from the week

composite of Fisker Ocean SUV, Fisker logo
Image Credits:Bryce Durbin / TechCrunch

This week offered reminders that for better or for worse, startups have to interact with regulators to retain licenses and stay out of trouble.

Bumpy road: Fisker‘s bankruptcy process isn’t going smoothly. The failed EV manufacturer is under investigation by the SEC, and earlier this week, American Lease, the company buying its remaining fleet, said it might not complete the purchase

Snapped: LoanSnap lost its license to operate in Connecticut, four months after TechCrunch’s exclusive reporting about how the AI-powered mortgage startup was facing multiple lawsuits.

Licensed to bill: French unicorn Alan expanded into Canada, where there hadn’t been any new health insurance company since 1957. The startup plans to hire 50 people in the country.

Most interesting fundraises this week

A large yellow dump truck carries ore out of a pit mine.
Image Credits:RiverRockPhotos / Getty Images

Some of the rounds we learned about this week were quite big, but perhaps not overly so considering the problems these startups are tackling and the competitors they face.

Striking gold: KoBold Metals, a minerals discovery startup, raised $491 million of a targeted $527 million round, according to an SEC filing. The company uses AI to surface data that can help locate cobalt, copper, lithium, and nickel.

Well supplied: Auger, a company developing AI-powered supply chain tools, raised a giant $100 million seed round. Such a big raise could be because of its high-profile CEO, Dave Clark, formerly of Amazon and Flexport. But Auger also has to compete with well-funded rivals. 

ProteinGPT: Basecamp Research, a London-based startup unrelated to Basecamp the product management platform, raised a $60 million Series B round of funding to build a “GPT for biology.” The company claims that its foundational model, BaseFold, outperforms DeepMind’s AlphaFold 2 at predicting large, complex proteins.

AMD vs. Nvidia: Cloud infrastructure startup TensorWave wants to offer an alternative to Nvidia hardware for AI compute and secured a $43 million round with participation from AMD Ventures. It is based in Las Vegas, where energy costs are lower than in many major U.S. cities. 

Lifeline: Qantev, a Paris-based startup that sells enterprise software helping health and life insurers use AI to process claims, raised a €30 million Series B round of funding led by Blossom Capital.

Most interesting VC and fund news this week

Diagram, venture studio, climate tech
Image Credits:Diagram

Climate incubation: Montreal-based venture studio Diagram expanded into climate tech with the launch of its fourth studio fund, Diagram Climate Tech, which was oversubscribed and closed at $58 million.

Follow-on: General Catalyst is working on raising a “continuation” fund worth up to $1 billion, sources told TechCrunch.

Balance: NFX laid off four employees in September — one product leader and three engineers. The VC firm is looking to “rebalance” its resources toward its investing team, general partner Pete Flint told TechCrunch. 

Last but not least

Shield AI cofounder Brandon Tseng
Image Credits:Shield AI. Photo by Rod Lamkey, Jr.

Shield AI co-founder Brandon Tseng talked to TechCrunch about defense tech and the war in Ukraine, one week after he and other startup execs gathered with members of the U.S. House Armed Services Committee in a rare public hearing in Silicon Valley. A former Navy SEAL, Tseng is firmly opposed to fully autonomous weapons.

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Cursor makes its biggest India push yet ahead of SpaceX acquisition with localized pricing

Weeks before its expected acquisition by SpaceX closes, AI coding startup Cursor is making its biggest push into India yet, launching its first country-specific subscription as the company bets on one of the world’s largest developer markets to drive its next stage of growth.

On Monday, the startup introduced Cursor Start, a ₹649-a-month (about $7) subscription built specifically for India — and priced well below Cursor’s standard $20-a-month Pro subscription.

The move reflects India’s growing importance to Cursor’s business. The startup says India is already its third-largest market globally and home to its highest concentration of power users, with its user base in the country more than tripling over the past year.

That scale, coupled with India’s deep pool of software engineering talent, made it the first market where Cursor chose to localize pricing, Simon Green, Cursor’s head of Asia-Pacific and Japan, told TechCrunch. “We felt that we had an opportunity there to right-size the commercial model and drive scale,” Green said. “The technical competency of the country and the engineering talent that already exists make it a very natural fit.”

India has emerged as one of the world’s largest software developer hubs. Earlier this year, GitHub said that the country has more than 27 million developers on its platform, second only to the U.S., with more than two million joining in 2026 alone.

Cursor Start includes access to Cursor’s Composer 2.5 model and Grok 4.5, with higher usage limits than the free tier, alongside cloud agents, its iOS app, plugins, Model Context Protocol support, hooks, and skills. The startup said the plan is aimed at developers who need more AI-assisted coding capacity than the free tier offers without upgrading to its full Pro subscription.

The lower-priced plan is intended to broaden access rather than replace Cursor’s flagship offering, Green said. Unlike the $20-a-month Pro subscription, Start does not include access to frontier AI models from providers such as OpenAI and Anthropic, or advanced features including Bugbot, Auto Mode, Automations, and the Cursor SDK.

The plan is billed in Indian rupees and supports payments through credit and debit cards as well as India’s Unified Payments Interface (UPI).

Green told TechCrunch that Cursor would use multiple checks to ensure the India-only subscription is available only to individual users in the country, including measures to deter people from accessing the plan through virtual private networks (VPNs).

Cursor is not alone in tailoring its pricing for India. OpenAI and Anthropic have also rolled out India-specific plans over the past year as global AI companies compete for users in one of the world’s fastest-growing AI markets.

While Cursor Start is initially limited to India, Green told TechCrunch that the startup could expand localized pricing to other markets if the model proves successful.

“We will continue to do everything we can to fuel the demand and serve those clients that are using us,” Green said. “Now, if this model proves that we could take it to other markets, perhaps we will. But I think it’d be crazy to say we would never do it elsewhere.”

OpenAI provides one precedent for this strategy, having launched its sub-$5 ChatGPT Go in India before expanding the lower-priced subscription to other markets.

In addition to the localized pricing strategy, Cursor is also expanding its presence in India through new hires. Green told TechCrunch that the startup recently hired its first salesperson in India and expects another leader to join in Delhi. The company is also building out its a government affairs office, alongside three technical customer support hires, as it expands its presence in Bengaluru, Chennai, Hyderabad, and Mumbai.

Cursor’s enterprise push is still in its early stages in India, Green said, where adoption has so far been driven largely by individual developers, startups, and universities. He said Cursor sees significant opportunities in sectors including banking and large enterprises as it expands its local sales efforts.

Green said, the India-specific pricing was designed to be commercially sustainable rather than a loss leader. He said the lower-priced plan is viable because it is built around Cursor’s own AI models, which carry lower operating costs than relying primarily on third-party frontier models.

Cursor’s India expansion comes a little over a month after Elon Musk’s SpaceX agreed to acquire the AI coding startup in a $60 billion all-stock deal, following SpaceX’s blockbuster initial public offering. The acquisition is expected to close in Q3. However, SpaceX has been partnered with Cursor since April to develop a next-generation “coding and knowledge work AI.”

Green said Cursor will continue to operate independently until the transaction closes and that the company’s India expansion plans were already in motion before the deal. Once the acquisition closes, however, Green said SpaceX’s existing presence in India through Starlink could help Cursor expand faster by lowering commercial and operational barriers.

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Lyft and Baidu enter London’s robotaxi battleground as testing begins

Chinese tech giant Baidu has started testing autonomous vehicles in London as part of its partnership with Lyft and Freenow, the German taxi and multi-mobility app that Lyft now owns. Baidu is the latest in a string of companies to test self-driving technology in the UK ahead of commercial robotaxi deployments.

The testing, which began Tuesday with human safety operators, comes nearly a year after the two companies struck a strategic partnership to deploy Baidu’s purpose-built Apollo Go RT6 robotaxi across key European markets through the Lyft platform. The vehicles will eventually be available through Freenow, which Lyft acquired in 2025 for about $197 million.

That deal gave Lyft a foothold in Europe’s ride-hailing market, where a handful of well-funded companies are now jockeying to be first to market with robotaxis.

London is particular is shaping up to be a key battleground in the region. In April, Waymo began testing its autonomous vehicles with human safety operators in the city. Uber and its self-driving tech partner, Wayve, also announced plans to launch a robotaxi service in London this year. That initial service — which customers can now sign up for on an interest list — will have human safety operators behind the wheel before fully driverless operations begin later.

Baidu and Freenow by Lyft (as the latter service is now called) said they expect to invite the public to hail their robotaxis in 2027. The companies, which didn’t provide a more detailed timeline, noted that the launch will depend on regulatory approval.

For now, dozens of test vehicles will operate within London’s borough of Brent. Lyft and Freenow said they continue discussions with safety and city officials, including Transport for London (TfL) and the Centre for Connected and Autonomous Vehicles (CCAV). The UK government is in the process of creating autonomous vehicle regulations and opened applications in May for companies interested in an AV pilot program that lets companies test self-driving vehicles under government oversight.

When the service does launch, Freenow by Lyft said it will operate a hybrid network — employing the same language rival Uber has used — meaning human drivers operating taxis and private-hire vehicles will work alongside the robotaxis.

“As a platform with deep roots in the taxi industry, our priority is ensuring that autonomous technology supports the professional drivers who keep London moving,” Thomas Zimmermann, CEO of Freenow by Lyft, said in a statement.

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Granola launches an Apple Watch app

AI note-taking app Granola is launching an app for the Apple Watch in hopes that its users will want to record meetings and take notes without using their smartphones.

Users can set the Granola app as one of the watch faces to start transcribing at any time. The app can also surface reminders about upcoming meetings, and works with the iOS app, which launched last year.

The company’s co-founder, Chris Pedregal, told TechCrunch that the Apple Watch app is meant to be a way to capture in-person meetings without having to take your phone out of your pocket — for example, if someone is having a walking one-on-one meeting.

When Granola tested its app with employees who had Apple Watches, a big chunk of their mobile usage switched from iOS to the Watch, the company said.

In the past year, companies have released auxiliary devices that can be used with smartphones to record and transcribe meetings. Granola said it considered it easier to develop an app for Apple Watches rather than integrate with another hardware product at this point. Dictation app Monlogue earlier this year also added support for meeting note-taking, for both online and offline modalities, along with Apple Watch support.

Granola became a unicorn earlier this year with a $125 million Series C round that was led by Index Ventures.

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