Welcome back to another recap of Equity, TechCrunch’s flagship podcast about the business of startups. This episode is packed with deals, hot topics and the latest dramaaaaaa in the tech world. If you haven’t heard it yet, consider this your spoiler invitation to dive in.
Three offers of the week
Formation Bio’s $372 million raise
First up, we have Formation Bio, an AI-focused drug development startup that just raised a whopping $372 million in Series D funding, led by Andreessen Horowitz. This brings their total funding to over $600 million. Formation Bio leverages artificial intelligence to streamline the R&D process in drug development, making it faster and cheaper. Their AI applications help recruit patients, predict drug toxicity and improve overall drug effectiveness. With an eczema treatment in phase 3 trials and other promising candidates in the pipeline, Formation Bio is racing to shake up the pharmaceutical industry.
The big case of Volkswagen and Rivian
Kirsten then broke down the amazing partnership between the Volkswagen Group and Rivian. Volkswagen is set to invest up to $5 billion in Rivian, starting with an initial $1 billion. This agreement gives VW access to Rivian’s pioneering expertise in electric architecture and strengthens Rivian’s financial position as it develops its next-generation vehicles. Rivian shares soar after announcement: Market is a fan, it seems! This partnership could be a game-changer for both companies, combining Rivian’s innovative technology with Volkswagen’s vast resources and market reach.
Nubank acquires Hyperplane
Finally, Mary Ann highlighted Nubank’s acquisition of Hyperplane, an artificial intelligence startup for banks. San Francisco-based Hyperplane helps banks use first-party data to create personalized customer experiences by predicting user behavior. This acquisition gives Nubank, the largest digital banking platform outside of Asia, a significant technological advantage. It gives the company access to more than 100 million customers, meaning Nubank can now offer even more tailored services, boosting customer loyalty and retention.
Both our topics of the week
Welcome to fediverse
Haje took us on a deep dive into the fediverse, a decentralized network of social media platforms like Mastodon, Threads, and even Trump’s Truth Social. Federation has seen an explosion in popularity, especially after Elon Musk’s acquisition of Twitter (now X). Mastodon, for example, has nearly tripled its user base since Musk took over. The appeal lies in its decentralized nature, offering users more control and niche communities. Whether you’re a photographer, a journalism enthusiast, or just someone who’s tired of traditional social media, fediverse has something for you.
PPC and meritocracy in tech
We discussed the ongoing debate around DEI (Diversity, Equity, Inclusion) in tech in a more controversial segment. Scale AI founder Alexandr Wang recently sparked a debate by advocating MEI (Merit, Excellence, Intelligence) over DEI. This has drawn support from big names like Elon Musk and Palmer Luckey but also considerable criticism.
The statistics are alarming: New female hiring levels in the US data industry have dropped dramatically, and DEI-related job listings have dwindled.
This episode of Equity was a rollercoaster of groundbreaking deals and heated discussions — whether you’re here for the latest startup successes or deep dives into industry challenges, we’ve got you covered.
Equity is TechCrunch’s flagship podcast, produced by Theresa Loconsolo and published every Monday, Wednesday and Friday.
Join us at Apple Podcasts, Cloudy, Spotify and all the cast. You can also follow Equity at X and Threads, on @EquityPod. For the full transcript of the episode, for those who prefer reading to listening, check out our full episode archive in Simplecast.
