AI startups cash in, creators lead funding shift for female founders

It’s Wednesday!

Only 1 in 5 companies feel prepared to defend against AI-powered bot attacks, as generative AI increases both the frequency and sophistication of cyber threats, according to an Arkose Labs survey.

Updates

💬 Meta has appointed ex-Salesforce AI CEO Clara Shih to lead a new team focused on building AI tools for businesses, signaling a push to make Meta's AI models an industry standard.

👀 Elon Musk joined a surprise call between Google CEO Sundar Pichai and President-elect Donald Trump, highlighting his growing influence in tech-policy discussions under the new administration.

💸 Chroma, backed by Pinterest and Twitter co-founders, has been acquired by AI audio company Bronze to scale its generative audiovisual tools for interactive entertainment.

☕️ Apple is now selling Apple News ads directly, introducing premium sponsorships and new ad formats to boost revenue for itself and its publishing partners.

💸 Startup incubator DVx, co-founded by Tesla veteran Jon McNeill, has raised $100 million to fund its unique operating model, creating and scaling early-stage companies without traditional VC fees.

Startups cash in on the AI integration gold rush

Generative AI is the hottest tech trend, but most companies have no idea how to make it work for their business. Enter startups like Distyl AI, Glean, and Cohere—armed with VC funding and tailored solutions, they’re bridging the gap between advanced AI models and enterprise adoption.

Why it matters: Companies want the efficiency and cost-saving promise of generative AI but lack the expertise to integrate it into their systems. That’s where startups come in, helping enterprises customize tools from giants like OpenAI and Anthropic.

With demand soaring, venture capital is flooding into the sector, even as broader VC markets remain sluggish.

The players:

• Distyl AI - Founded in 2022 by Palantir alums. Partners with OpenAI to help businesses like telecom and healthcare automate operations. Raised $20M in a lightning-fast Series A led by Lightspeed Venture Partners.

• Glean Technologies - Combines OpenAI models with its own small LLMs for tailored enterprise solutions. Raised a $260M Series E at a $4.6B valuation in just two months.

• Cohere - Built its own LLM and offers integration services. Landed $500M in Series D funding, attracting Cisco and major pension investors.

The bigger picture: AI integration is a trillion-dollar opportunity, but the field is getting crowded. Startups like Distyl are battling not only each other but also legacy tech players like Oracle and IBM.

For enterprises, these startups are critical—making AI adoption faster and easier while boosting the bottom line. For startups, the stakes are just as high: winning market share in this competitive space could make or break their futures.

As Raviraj Jain of Lightspeed Venture Partners puts it, "Distyl’s success drives the success of AI itself."

Bottom line: The AI revolution is here, but someone needs to build the bridge between the tech and the boardroom. Startups are stepping up—and cashing in.

Creators turn investors: A new era of funding for female founders

Meet the new wave of power players in venture capital: your favorite creators. These aren’t your run-of-the-mill influencers pushing skincare or fit teas—they’re diving into startups, investing real money, and rewriting the rules of entrepreneurship.

The rise of creator capital

Forget just posting #ad. Creators are now backing brands they believe in—financially. Period care disruptor Marlow is proof. The Toronto-based startup, built on organic, comfort-first tampons, isn’t just selling products—it’s selling change. And it’s doing it with a squad of creators-turned-investors amplifying its message.

“They’re not just funding us—they’re helping us tell our story,” says Marlow CEO Nadia Ladak. With 200+ retailers carrying its products, including Whole Foods, Marlow’s model is paying off.

What’s behind the creator VC boom?

Creators are over the fleeting nature of likes and brand deals. They’re chasing longevity, legacy, and bigger payoffs by investing in startups that align with their values.

Game changers:

• Love x Money Ventures: From the team behind Shine Talent Group, this fund taps creators’ industry insight to back lifestyle and wellness brands.

• Sidelines VC: Helps underrepresented founders connect with creators who know how to move markets.

• Pearl Influential: Educates female creators about investing and has raised $1M+ for women-led startups.

Why it works: Creators bring more than cash—they bring influence and an audience. And they’re flipping the script on venture capital, where only 4.9% of partners are women.

Take Marlow again: With creators as both investors and ambassadors, the brand has turned TikTok tutorials into trust and dollars.

The big picture: This isn’t just a trend—it’s a shift. Creators are using their platforms to do more than sell—they’re shaping industries, backing diverse founders, and showing that innovation doesn’t need to come from the usual (male-dominated) suspects.

The takeaway? Don’t sleep on this creator-driven revolution. It’s not just reshaping startups—it’s changing the whole game.

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