Week of April 14th, 2025

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We’ve scoured the vast landscape of the web to bring you a comprehensive roundup of the industry’s top news articles, all in one convenient place. We keep you ahead of the game and in the know about all things related to the vibrant world of investments

STARTUPS

ROUNDS AND UNICORNS

The Week’s Biggest Funding Rounds: Base Power Fuels Somewhat Quiet Week (Crunchbase, 5 minute read)

Base Power (Energy: Battery startup based in Austin, TX raised $200M Series B led by Addition. The company provides residential backup power systems optimized to charge during low electricity price periods
Caris Life Sciences (Biotech/AI): Texas-based biotech firm raised $168M growth round led by Braidwell. The company applies AI and molecular profiling for precision medicine development
Merida Biosciences (Biotech): Cambridge-based biotech startup launched with a $121M Series A to develop therapeutics targeting autoimmune and allergic diseases
Rescale (Simulation/AI): San Francisco-based digital engineering platform raised $115M Series D. Rescale integrates cloud computing and AI to accelerate modeling and simulation
Nuro (Autonomous Driving): The autonomous driving tech firm raised $106M in an ongoing Series E, valuing the company at $6B — down from $8.6B in 2021

INDUSTRY

The future of VC may have more borders (Pitchbook, 5 minute read)

The ongoing tariff wars are reshaping the global venture capital (VC) landscape, with the US imposing tariffs on Chinese goods, prompting retaliatory taxes from multiple countries. This escalation has caused public markets to drop and delayed IPOs, as companies like eToro and 1Komma5 follow in the footsteps of Klarna and Chime. Some VCs are considering pausing investments due to the heightened risks of tariff exposure

As cross-border deal flow declines, particularly in the US's participation in European and Chinese markets, VCs may increasingly focus on regional investments
The rise of protectionism could slow growth for startups in smaller tech ecosystems, especially those relying on external capital from the US
However, this retreat from globalization also offers opportunities for domestic startups to thrive, especially if tariffs protect local businesses from foreign competitors

ECONOMIC SNAPSHOT

US stocks get boost from tariff exemptions but trade war confusion persists (CNN, 6 minute read)

U.S. stocks climbed on Monday, buoyed by the Trump administration’s temporary exemption of tariffs on smartphones, computers, and electronics imported from China, leading the Dow to rise 312 points (0.78%), the S&P 500 to gain 0.79%, and the Nasdaq to advance 0.64%. The exemptions, revealed in a Customs and Border Protection notice late Friday, sparked optimism among investors despite lingering confusion, especially as Commerce Secretary Lutnick clarified the reprieve was temporary and semiconductor tariffs would follow

Apple shares rose 2.2%, while automakers Ford, Stellantis, and GM surged over 3% after Trump hinted at a possible short-term tariff exemption for vehicles
Global markets echoed the optimism, with European and Asian indexes rallying
Wall Street has experienced significant volatility in April, with the S&P 500 swinging sharply—dropping 9% early in the month, then rebounding 5.7% last week—yet still trading below its April 2 close
Goldman Sachs CEO David Solomon and hedge fund manager Ray Dalio expressed concerns over a looming recession, and the Treasury market’s recent volatility raised fresh doubts about the U.S. dollar’s strength

No retreat on tariffs, Trump promised. Hours later, he blinked (The Guardian, 6 minute read)

On Wednesday morning, Donald Trump tweeted confidently that “everything is going to work out well,” but just four hours later, under mounting economic and political pressure, he announced a 90-day pause on new tariffs for most countries—excluding China. Despite the pause, Trump escalated tariffs on China to 145%. Financial markets, already shaken by the announcement of sweeping reciprocal tariffs earlier in April, saw heightened volatility reminiscent of the 2020 COVID-19 crash. The tariffs faced widespread criticism and led to stock price drops, including a predicted 43% iPhone price hike

Prominent economists and business leaders, including former Treasury Secretary Larry Summers and Elon Musk
Critics argue Trump is trying to restore a bygone manufacturing era, but with such jobs now comprising only 8% of U.S. employment, his strategy is seen as unrealistic
Though the White House claimed over 75 countries are seeking deals, many doubt meaningful agreements will materialize in 90 days

Magnificent 7 tariff-fueled losses top $2 trillion (Yahoo Finance, 2 minute read)

The "Magnificent Seven" tech stocks, including Nvidia, Tesla, and Apple, experienced a brief rebound on Tuesday 8th, with Nvidia rising 8% and Tesla 7%, but quickly reversed course and ended the day in negative territory due to concerns over impending reciprocal tariffs. Tesla and Apple saw the steepest losses, with both dropping about 5%. Other major tech stocks, like Amazon, Google, Nvidia, Meta, and Microsoft, also experienced declines

Since the announcement of President Trump's global tariff plan on April 2, these companies have collectively lost $2.1 trillion in market value, with Apple's losses totaling $773 billion
Trump's tariff plan includes a 10% baseline tariff on all global imports and reciprocal tariffs, including a 104% tariff on Chinese imports
Approximately 50% of the Magnificent Seven's revenue comes from abroad
Microsoft is expected to be the least affected due to its lower exposure to consumer spending

What would a US-China trade war do to the world economy? (BBC, 5 minute read)

The trade conflict between the US and China has intensified, with President Donald Trump imposing 125% tariffs on Chinese imports, prompting China to retaliate with matching tariffs on US goods. In 2024, the trade in goods between the two countries totaled $585 billion, with the US running a trade deficit of $295 billion. The US imports far more from China than it exports, and the tariffs are set to make Chinese goods significantly more expensive for American consumers

Products like smartphones, electronics, and solar panels are particularly affected
This conflict also has global ramifications, as the US and China account for 43% of the global economy
A full-scale trade war could slow global growth, disrupt supply chains, and lead to price increases in both countries
The broader consequences include a potential global recession, particularly impacting countries caught between the two economic giants, such as Vietnam and Mexico

Trump tariffs spark US government debt sell-off (BBC, 4 minute read)

Investor confidence in the US economy has plummeted as financial markets react to escalating trade tensions driven by Donald Trump’s aggressive tariff policies. Investors are dumping US government bonds — traditionally seen as a safe haven — leading to a sharp spike in bond yields and raising concerns about the stability of US debt markets. Yields on 10-year US government bonds surged from 3.9% to 4.5% — their highest level since February — signaling higher borrowing costs for the government, companies, and consumers

Falling demand for US debt reflects a growing perception that US assets are no longer a safe bet amid trade and fiscal uncertainty
Economists warn the Federal Reserve may need to intervene with emergency purchases of US Treasuries to stabilize the bond market
JP Morgan raised its estimate of a US recession from 40% to 60%, citing policy moves that undermine economic growth

IMPACT & CLIMATE RESILIENCE

US VC female founders dashboard (Pitchbook, 5 minute read)

Venture capital funding for female founders has stabilized following a sharp decline from 2021 peaks. While the share of total deals involving women-founded or co-founded companies has decreased, these companies are securing a growing proportion of the capital raised. A comprehensive dashboard tracks 16 years of U.S. investment trends for women founders, offering insights into deal counts, capital raised by state, industry, and stage, as well as highlighting notable female-founded startups and firms

In Q1 2025, co-founded female companies reported $11.1 billion in capital invested and a total of 650 deals, compared to $17.2 billion in capital and 762 deals in Q4 2024
In terms of deal count,sof far 2025, only female-led companies accounted for 5.9% of the total, while female and male-led companies together represented 18.2%
Regarding capital allocation, female-led companies received only 0.7%, whereas female and male-led companies collectively received 17.9%

IPO & EXITS

LPs flooded the secondary market during tariff upheaval. Buyers paused (Pitchbook, 5 minute read)

Following President Donald Trump’s recent announcement of reciprocal tariffs on dozens of countries, the private equity secondary market — which saw $112 billion in transaction volume globally in 2023 — has experienced a sharp increase in activity, particularly in inbound inquiries from limited partners seeking liquidity. Hamilton Lane, which manages over $950 billion in assets, reported receiving an unprecedented volume of calls from pensions, endowments, family offices, and foundations exploring potential sales of their private market fund stakes

However, with the stock market down nearly 15% over the past week and IPO activity stalled, buyers are struggling to price assets amid extreme volatility
Secondary buyers expect deals in the coming months to be priced based on Q4 2024 valuations, creating a wide bid-ask spread that is likely to reduce transaction volume in the near term
Experts anticipate that while LPs with global exposure, especially in China — where tariffs could impact over $500 billion in trade — may feel greater pressure to sell, widespread fire sales are unlikely

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Happy reading,

AI8 Ventures’ Research & Investment Team

Tech Stocks Tumble on Tariffs