In VC winter, the Upfront Summit is about more than fundraising and dealmaking

Upfront has a reputation for its glamor, but I pose to you—the vibe of the 2024 Upfront Summit was whimsical, with a catch. The catch, of course, is that it’s a tough environment for VCs and startups. And the trying times and whimsy are connected: In a VC downturn, do people really want high-octane pizzazz, or do they want to feel safe, transported back to childhood by an adult-sized LiteBrite? There may be celebrity sightings (Lady Gaga, Katy Perry, and Novak Djokovic, since I know you’re curious), but it’s clear that this year, the central story is that in a jittery moment everyone is trying to figure out what to do next. 

It’s an environment that’s predictably bullish on AI, with waves of skepticism poking through. Founders Fund partner Brian Singerman, when asked onstage to describe what he considers a contrarian sector right now, said: “Anything that’s not AI.” When pressed, Singerman reiterated—go for crypto or fintech (at a certain point, any other sector will do), but there isn’t such a thing as a contrarian investment in AI right now. 

There’s also a sense that we’ve been in VC winter for a while and some, like Shardul Shah of Index Ventures, suggested that the worst is over, that “we’re moving out of VC winter and into VC spring,” Shah said onstage. But as that transition plays out, it’s clear this is a time when VCs, their LPs, and founders feel as though they’re in the trenches, enduring the nitty-gritty moments that determine a company’s success—or failure. 

“In times like this, we really need to get in and dig in,” Menlo Ventures partner Matt Murphy told the audience. “It’s not about showing up at a quarterly board meeting and being super prescriptive, because that’s going to get you nowhere—you’re going to lose trust with that entrepreneur and you won’t be deep in all the facts.” 

Implicitly at Upfront, it seems like many people are thinking about what it takes to build or retain trust in an uncertain landscape, and what it actually means to make a long career out of venture capital. Evidence: One well-loved and attended panel featured a trio of “VC OGs,” Alan Patricof, Ray Lane, and Howard Morgan. In a key moment, Lane observed that “the bigger this industry gets, the older it gets, the less it changes.”

And that’s true enough. Take the conference itself—there have always been commerce-oriented reasons to come to Upfront. For startups, VCs, and LPs, this is a curated place, where everyone is interested in being in VC, being backed by VCs, or writing checks to VCs. I heard over and over from VCs that this is a great place to meet LPs, because you know they’re interested in venture, a key distinction in a moment where it’s unclear how venture allocations at large LPs are going to look over the next few years.

But, in a downturn, the wheeling and dealing just has a different tenor. And as I watched magician Kevin Li close out Day 1 (yes, there was a magic show), it occurred to me there was another reason for so many to come to the conference: In VC winter, a conference like Upfront is a place to feel a little bit less alone. 

See you Monday,

Allie Garfinkle
Twitter: @agarfinks
Email: [email protected]
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Joe Abrams curated the deals section of today’s newsletter.

VENTURE DEALS

– Figure, a Sunnyvale, Calif.-based developer of humanoid AI robots, raised $675 million in Series B funding from Microsoft, OpenAI Startup Fund, Nvidia, Amazon Industrial Innovation Fund, Jeff Bezos, Parkway Venture Capital, and others.

– Fervo Energy, a Houston, Texas-based producer of carbon-free geothermal energy, raised $244 million in funding. Devon Energy led the round and was joined by Galvanize Climate Solutions, John Arnold, Liberty Mutual Investments, Marunouchi Innovation Partners, Mercuria, and others.

– Filigran, a Paris, France-based cyber threat management platform, raised €15 million ($16.3 million) in Series A funding. Accel led the round and was joined by Moonfire Ventures and Motier Ventures. 

– Heyflow, a Hamburg, Germany-based no-code platform for marketers to create user experiences, raised $16 million in Series A funding. Singular led the round and was joined by Project A Ventures and Atlantic Labs.

– Relish, a Newbury, Ohio-based AI assistant designed for procurement processes, raised $10 million in Series A funding from Volition Capital. 

– Elevated Signals, a Vancouver, Ca.-based developer of manufacturing software, raised CAD$7.9 million ($5.9 million) in Series A funding. Yaletown Partners led the round and was joined by Third Kind Venture Capital, WGD Capital, Colin Harris, Raiven Capital, and Pareto Holdings.

– Raspberry AI, a New York City-based provider of AI-assisted software for fashion design and merchandising teams, raised $4.5 million in seed funding. Greycroft and Khosla Ventures led the round and were joined by Yael Aflalo.

– Vitrue Health, a London, U.K.-based company that works with employers to prevent and treat musculoskeletal health conditions, like back and neck pain, in employees, raised $4 million in funding. MMC Ventures and Hambro Perks led the round and was joined by Simplyhealth Ventures, Crista Galli Ventures, and Chris Bruce.

– ContributionDAO, a Singapore-based staking platform, raised $2.8 million in seed funding. KASIKORN X Venture Capital led the round and was joined by others. 

– Clasp, a New York City-based provider of health benefits software designed to integrate directly into employer platforms, raised $1.5 million in funding. Base10 Partners led the round and was joined by Eric Stromberg, Andrew Brown, and Willem Van Lancker.

– StepChange, a Bengaluru, India-based platform for managing, reporting, and tracking corporate sustainability initiatives, raised $1 million in funding from Flourish Ventures. 

PRIVATE EQUITY

– Bow River Capital acquired a majority stake in Accelo, a Denver, Colo.-based client work management platform for professional services businesses. Financial terms were not disclosed.

– Max Surgical Specialty Management, backed by RF Investment Partners, acquired four oral surgery offices across New York, Pennsylvania, and Vermont: Lititz Oral Surgery, New York Oral, Maxillofacial, and Implant Surgery, Vermont Oral Surgery Associates, and Northern Vermont Oral Surgery. Financial terms were not disclosed.

– Quest Products, a portfolio company of Promus Equity Partners, acquired Tec Laboratories, an Albany, Oregon-based manufacturer and distributor of over-the-counter pharmaceutical dermatological products. Financial terms were not disclosed.

– Shamrock Environmental, a portfolio company of CenterOak Partners, acquired JG Environmental, a Lancaster, Pa.-based provider of waste management and other waste-related services. Financial terms were not disclosed. 

– Summit Partners acquired a majority stake in Insurcomm, a Portsmouth, N.H.-based provider of commercial and residential restoration services. Financial terms were not disclosed.

– Toney Healthcare, a portfolio company of Centre Partners and Health Enterprise Partners, acquired Rebellis Group, an Overland Park, Kan.-based advisory firm for Medicare Advantage organizations and their partners. Financial terms were not disclosed. 

EXITS

– Bridgepoint acquired RoC Skincare, a New York City-based skincare brand, from Gryphon Investors. Financial terms were not disclosed. 

– Leeds Equity Partners acquired TouchMath, a Colorado Springs, Colo.-based provider of supplemental math curriculum, from Millpond Equity Partners. Financial terms were not disclosed. 

OTHER

– First Advantage Corporation (NASDAQ: NA) agreed to acquire Sterling Check Corp., an Independence, Ohio-based provider of background screening and identity services, for $2.2 billion in cash and stock, including Sterling’s outstanding debt.

– Ginkgo Bioworks (NYSE: DNA) acquired Patch Biosciences, a New York City-based AI platform for engineering genetic medicines cargos, Proof Diagnostics, a Cambridge, Mass.-based developer of CRISPR-based COVID-19 molecular testing, and Reverie Labs, a Cambridge, Mass.-based developer of machine learning technology designed to accelerate its cancer therapy drug discovery programs. Financial terms were not disclosed.

FUNDS + FUNDS OF FUNDS

– Inspired Capital, a New York City-based venture capital firm, raised $330 million in funding for its third fund focused on early-stage tech founders. 

PEOPLE

– Calibrate Ventures, a Pasadena, Calif.-based venture capital firm, hired Adrien Gaidon as partner. Formerly, he was with the Toyota Research Institute.

– Climate Investment, a London, U.K. and Houston, Texas-based venture capital firm, hired Patrick Yip as managing director, head of growth. Formerly, he was with GEC.

– Goanna Capital, a Salt Lake City, Utah-based private equity firm, hired Benjamin O’Connor as general partner to lead their PE secondary strategy. Formerly, he was with BAM Elevate.

– HighPost Capital, a West Palm Beach, Fla.-based investment firm, hired Jay Steinle as managing director, head of investor relations. Formerly, he was with Atlantic Street Capital.