Hey Founder, here are the latest tech news and insights:
- OpenAI unveils AI agents tools
- DeepSeek rejects venture funding
- AI now writes 95% of YC startup code
- India dominates IPO market
- CB Insights: Venture 2024 report
- Startups go lean for longer
- Google’s golden age ends
OPENAI HAS RELEASED TOOLS FOR CREATING AI AGENTS
OpenAI has launched the Responses API, a set of tools designed to help businesses and developers build AI-powered agents that can search the web, scan files, and automate tasks. This new API replaces the Assistants API, which will be phased out by 2026.
With this update, OpenAI aims to move beyond simple AI demos and provide more autonomous tools that businesses can integrate into their workflows. The Responses API also includes search models (GPT-4o search & mini search) for more accurate information retrieval and a Computer-Using Agent (CUA) that automates digital tasks like data entry and app navigation.
OpenAI acknowledges that AI agents are still in their early stages, with challenges like accuracy and reliability, but they believe this technology will shape the future of work. An open-source Agents SDK is also available to help developers integrate AI into their systems.
DEEPSEEK REFUSES VENTURE FUNDING
Chinese AI startup DeepSeek is turning down investor money — for now. Founder Liang Wenfeng has declined offers to rapidly commercialize the company’s AI initiatives, citing concerns that external funding could compromise decision-making and limit global adoption.
DeepSeek, known for developing advanced AI models with cost-effective technology, aims to grow on its own terms, avoiding potential scrutiny over ties to the Chinese government. This bold move signals looks like a shift in AI startup strategy, prioritizing long-term vision over immediate capital.
AI NOW WRITES 95% OF CODE FOR Y COMBINATOR STARTUPS
AI is taking over coding — 95% of codebases in Y Combinator's Winter 2025 batch were generated by AI, according to YC managing partner Jared Friedman. Despite being highly technical founders, developers are now relying on AI to build their products almost entirely, a shift that would have been unthinkable just a year ago.
This trend, dubbed "vibe coding", refers to using natural language and instincts to create code rather than manually writing it. However, AI-generated code isn’t flawless — it can introduce security vulnerabilities, bugs, and outages, requiring skilled developers to debug and refine outputs.
INDIA IS LEADING THE IPO MARKET
A Visual Capitalist study shows that the IPO market in 2024 continues to demonstrate strong activity with record-breaking results. India has emerged as the leader in IPO volume, completing 327 deals worth $19.9 billion. This reflects growing investor interest in emerging markets.The U.S. ranked second, with 183 IPOs totaling $32.8 billion. Asian and European markets are also seeing activity, particularly in China and South Korea. Meanwhile, the UK IPO market remained quiet, with only 10 listings.
IPO activity in 2024 is concentrated in high-growth sectors:
- Technology, Media, and Telecommunications: The top sector by both deal count and volume, driven by AI and semiconductors.
- Industrial sector: Strong momentum in infrastructure, automotive, and logistics.
- Consumer Goods & Services: Retail and e-commerce are attracting investor interest.
CB INSIGHTS: STATE OF VENTURE 2024 REPORT
CB Insights has released a fundamental 130-page study on corporate venture funds in 2024. AI has reshaped the venture landscape, capturing a record share of funding (37%) and deals (17%) in 2024, including 5 of the year’s largest deals. But beyond the momentum building in AI, global deal activity plunged 19% YoY to its lowest level since 2016, creating both challenges and opportunities for investors and corporate strategists.
Key takeaways from the report include:
- AI is eating VC. In 2024, AI represented 37% of venture funding and 17% of deals — both all-time highs. AI infrastructure players raised all of the top 5 venture deals of the year, with 4 closing in Q4’24 alone — driving a 2-year high in quarterly funding. With nearly 3 in 4 (74%) AI deals being early-stage in 2024, investors are staking out early claims to reap the rewards of the tech’s potential.
- Aside from AI, venture dealmaking is in a drought. Globally, deal activity fell 19% YoY to 27K in 2024 — its lowest annual level since 2016. The drop was most pronounced in countries like China (-33% YoY), Canada (-27%), and Germany (-23%). However, several countries in Asia — Japan, India, and South Korea — have bucked the downward trend. Their resilience suggests attractive investment conditions.
- AI and industrial automation are common themes among the fastest-growing tech markets. Out of 1,400+ tech markets that CB Insights tracks, those with the highest rate of YoY deal growth include enterprise AI agents, genAI for customer support, industrial humanoid robots, and autonomous driving systems. Expect these technologies to continue maturing in 2025, increasing their disruptive potential.
- Despite market uncertainty, early-stage valuations hit a record-high median of $25M in 2024. Investors are packing into early-stage rounds to ride the next major wave of value creation in tech, likely drawn by startups’ ability to now build products with less capital and fewer people thanks to AI tools and infrastructure. However, early-stage startups could face a reality check when they try to raise later-stage rounds if they have yet to prove they can sustain growth. Although mid- and late-stage deal valuations rebounded slightly vs. 2023, they remain muted compared to 2021 and 2022.
- IPO timelines get delayed. From first funding to IPO, VC-backed companies that went public in 2024 waited a median of 7.5 years — 2 years longer than in 2022. Amid unfavorable market conditions, some late-stage players like Stripe and Databricks have resorted to raising additional equity funding or selling private shares in lieu of going public. This allows them to create liquidity for early investors and employees when the path to a public debut is rocky.
STARTUPS ARE STAYING LEAN FOR LONGER
A recent study by Carta reveals that startups continue to maintain compact teams even as they raise new funding rounds.
The most noticeable decline in team size has occurred at the Series A stage. In 2022, startups at this stage had around 25 employees. By 2024, this number had dropped to just 15.
According to Peter Walker, Head of Analytics at Carta, several factors contribute to this trend. The decline in venture funding in 2022 forced startups to adapt to tougher conditions.
Additionally, AI tools have significantly boosted team efficiency.
"I believe a big part of this shift is that founders are spending money more cautiously and hiring only when absolutely necessary. But I’m also convinced that AI will enhance the productivity of existing employees, allowing startups to delay mass hiring until later stages," — Peter Walker wrote on X.
EARLY-STAGE ROUNDS
ResiQuant Secures $4M To Transform Property Risk Assessment; Flowww Secures €4M to Expand Global Presence in Aesthetic Medicine; Thorizon Raises €20M to Accelerate Reactor Development; Conveo Raises$5.3M to Enhance Customer Research With AI; Telescope Raises €3.7M to Transform Real Estate Sustainability; QuantWare Raises €20M to Scale Quantum Processor Technology; MANSA Raises $10M to Innovate Cross-Border Payments; Valid Secures $5.5M to Revolutionize AI-Powered Advertising; Singulr AI Secures $10M to Launch Enterprise AI Governance Platform; Imperia Raises €10M to Accelerate AI-Powered Supply Chain Innovation.
HEARSTLAB
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HearstLab invests in women-led startups at the Seed and Series A stages across sectors like Enterprise Technology, Data and Analytics, FinTech, Healthcare, Media, and Transportation. The program supports female founders with capital, strategic connections to Hearst’s core expertise, and a strong founder community. Participants gain access to Hearst’s network, mentorship opportunities, and in-person office spaces, including the Hearst Tower in NYC.
INNOWERFT
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InnoWerft is an early-stage investor and startup accelerator based in Walldorf, dedicated to propelling B2B high-tech startups forward. We provide hands-on support in fundraising, sales, and overcoming early-stage challenges. As a Startup BW Pre-Seed partner, we act as co-investors, sparring partners, and strategic advisors, ensuring startups gain traction and secure investment. Startups receive up to €50K in convertible loans, pre-seed funding guidance, and access to our accelerator programs, including the AI Accelerator for AI-driven ventures.
GOOGLE’S GOLDEN AGE IS COMING TO AN END
For the last 20 years, it has dominated the search engine world, but the tides are shifting. User behavior is evolving, competitors are rising, and Google’s reliance on ads is driving people away. SEO as we know it is about to change — forever.
In the video linked to this post by Neil Patel, he breaks down exactly why Google is dying, what it means for the future of search, and how to adapt an SEO strategy to stay ahead. The video dives into Google’s rise, its slow decline, and the new search landscape emerging in its place.
If you want to future-proof your SEO strategy, this is a must-watch.
Written by Anna Lebedeva, the co-founder at The Top Voices and a startup ecosystem enthusiast.
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