A Defining Week for the Economy
Week of July 28th, 2025
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STARTUPS
ROUNDS AND UNICORNS
The Week’s 10 Biggest Funding Rounds: Risk Management, AI Lead In Attracting Capital (Crunchbase, 5 minute read)
Quavo (Dispute Management): Raised $300 million in growth equity from Spectrum Equity. The Delaware-based company provides software for banks and fintechs to manage transaction disputes
Vanta (Compliance & Risk Management): Secured $150 million in a Series D led by Wellington Management, reaching a $4.15 billion valuation. Vanta offers AI-powered enterprise compliance tools
Armada (Edge Computing): Closed $131 million to scale Leviathan, its modular data center platform for remote areas. The company is based in San Francisco
HeroDevs (Enterprise Software): Raised $125 million in growth financing led by PSG Equity. The Utah-based company offers compliance and security support for deprecated open source software
Reka (Artificial Intelligence): Landed $110 million in funding from Nvidia and Snowflake. The Sunnyvale-based AI research firm has now raised $170 million to date
The State Of Startups In Mid-2025 In 8 Charts: Global Funding And M&A Surge As AI Fervor Continues (Crunchbase, 4 minute read)
Venture funding showed signs of renewed energy in Q2 2025, reaching $91 billion globally, an 11% increase YoY, though down 20% from the previous quarter. While still well below the highs of 2021, the first half of 2025 marked the strongest period for global venture investment since early 2022. The rebound was driven by sustained enthusiasm for artificial intelligence, a resurgence in M&A activity, and a cautiously reopening IPO market
North America led the charge, accounting for 70% of global funding, with $145 billion raised in H1—up 43% YoY—largely propelled by major AI investments such as Meta’s $14.3 billion into Scale AI
M&A activity soared, with 918 startup acquisitions totaling over $100 billion in H1, a 155% YoY jump, as strategic buyers sought AI and cybersecurity assets
Europe’s funding plateaued, Asia’s funding fell to multiyear lows while Latin America saw a boost, with Mexico overtaking Brazil as the region’s top destination for venture dollars
June Hits 3-Year High In Unicorn Births Across AI, Robotics And More (Crunchbase, 5 minute read)
In June 2025, twenty companies joined the Crunchbase Unicorn Board, marking the highest monthly addition since July 2022, signaling a notable uptick in billion-dollar startup valuations amid renewed market energy. The U.S. led unicorn creation with 11 new entries, followed by China with four, and one each from Israel, India, UAE, Switzerland, and New Zealand, which welcomed its first unicorn
The month also saw eight unicorn exits: four from the U.S —Chime, Circle, Caris Life Sciences, and Omada Health— while China contributed two IPOs (Unisound and Caocoa Chuxing)
Sector-wise, AI dominated with five new unicorns
Robotics (Unitree, Gecko Robotics), financial services (Kalshi, Juniper Square), Web3, developer tools, and healthcare also saw significant funding
ECONOMIC SNAPSHOT
This could be the most consequential week for the economy in years (CNN, 5 minute read)
This week will provide a comprehensive snapshot of the U.S. economy under President Trump, with the release of key data: second-quarter GDP, inflation, jobs report, consumer sentiment, and corporate earnings from major tech firms. At the same time, the Federal Reserve will decide whether to hold or cut interest rates, and the August 1 deadline for finalizing Trump’s new global tariff rates looms
Markets remain near record highs, the Wilshire 5000 has reached 212% of GDP, a historically high valuation, and Goldman Sachs’ speculative trading indicator shows increased froth
The Fed is expected to hold rates steady this week, with potential cuts delayed until later in the year as policymakers monitor the impact of tariffs and immigration policies
Trump’s trade agenda also faces scrutiny: negotiations with China continue, and a U.S. appeals court will hear arguments about the legality of Trump’s use of emergency powers to impose tariffs
Meanwhile, the jobs report is expected to show slowing gains, with manufacturing losses and a shrinking labor force pointing to deeper effects from deportation policies and trade disruptions
Trump bill’s tax deduction changes to benefit leveraged borrowers – Barclays (Pitchbook, 2 minute read)
The recently passed “One Big Beautiful Bill Act” introduces a key tax change that could significantly benefit leveraged borrowers by expanding the limit on interest expense deductions. Under the new rule, deductions can now be calculated as 30% of EBITDA—instead of EBIT—which includes depreciation and amortization (D&A) expenses, potentially increasing taxable income deductions and boosting earnings, according to Barclays
In its July 2 report titled “Making Interest Deductions Great Again,” Barclays highlights that sectors with high D&A and interest expenses—such as autos, technology, chemicals, and healthcare—stand to gain the most
Additionally, companies rated triple C or below may benefit disproportionately, as they tend to have higher D&A relative to EBITDA
However, the advantage is limited to cash taxpayers, excluding many lower-rated issuers with net operating loss carryforwards
US-EU tariff deal a big Trump win but not a total defeat for Brussels (BBC, 3 minute read)
After weeks of tense negotiations, the U.S. and European Union have reached a landmark trade agreement, just ahead of the August 1 tariff deadline and ongoing talks with China. The deal imposes a 15% U.S. tariff on European exports—lower than the threatened 30%, but still a significant increase from pre-2024 levels. In return, the EU agreed to zero-tariff access for many U.S. goods and committed to purchase $750 billion in U.S. energy and $600 billion in U.S. military equipment
President Trump, who personally pushed the deal over the finish line, hailed it as a major victory, following similar agreements with Japan, the UK, Vietnam, and Indonesia
The White House expects to collect $90 billion in new tariff revenue from the EU alone
Meanwhile, eyes now turn to U.S.-China talks, where a 90-day tariff suspension is on the table—though China remains a more defiant negotiating partner
Markets rally after Trump announces tariff deal with Japan (The Guardian, 5 minute read)
Global financial markets rallied after President Trump announced a trade deal with Japan, sparking optimism that a similar agreement with the European Union may soon follow. The deal imposes a 15% U.S. tariff on Japanese imports, lower than the previously threatened 25%, easing fears in key sectors like Japan’s auto industry. Major indices surged, with Tokyo’s Nikkei up 3.5%, the FTSE 100 hitting a record high, and U.S. markets closing higher
Shares in Japanese carmakers soared and European carmakers like Volkswagen also jumped, as traders bet the Japan deal could serve as a template for EU negotiations
Trump has set a deadline of August 1 for a deal with Europe, while separate talks continue with China and the Philippines
Though markets cheered the reduced uncertainty, economists noted that tariffs remain higher than pre-Trump levels, increasing inflationary pressure and supply chain risk
Trump Says Countries Will Face Tariffs Ranging From 15% to 50% (Bloomberg, 5 minute read)
President Trump announced that upcoming U.S. tariffs will start at a minimum of 15%, potentially going as high as 50%, signaling a more aggressive trade stance ahead of the August 1 deadline. Speaking at an AI summit, Trump said these so-called “reciprocal” tariffs will apply broadly, as the U.S. pushes to impose duties on nearly all trading partners unless specific deals are made. While earlier plans suggested baseline tariffs of 10–15% for over 150 countries, Trump now emphasizes a simplified approach with little interest in complex negotiations
He has treated the tariff notices themselves as “deals” but indicated countries could secure lower rates by opening their markets to U.S. businesses
For example, Japan’s tariff was cut from 25% to 15% after it agreed to lift restrictions on U.S. goods and support a $550 billion investment fund
Talks with the EU, South Korea, and India continue, as they seek to finalize agreements before the new tariffs take effect
IPO & EXITS
Fibra Next Raises $431 Million; Largest Mexico IPO in Years (Bloomberg, 3 minute read)
Fibra Next, a spin-off of Fibra Uno’s industrial property portfolio, raised $431 million in its initial public offering, marking Mexico’s largest stock debut since 2018. Shares were priced at 100 pesos each, and the funds will be used to develop 500,000 square meters of industrial real estate. While the company plans to expand through acquisitions, CEO Raúl Gallegos emphasized a primary focus on self-development of assets
The IPO faced multiple delays over the past two years, stemming from regulatory holdups and market conditions, and was scaled back from an original $1.5 billion target
Fibra Next may return to the market to raise up to $800 million more in a follow-on offering to complete its growth strategy
Deputy CEO Gonzalo Robina said the listing shows investor confidence, with 75% of assets tied to domestic demand
Figma seeks $16bn valuation in test of US tech IPO market (Financial Times, 3 minute read)
Figma, the design software company, plans to raise up to $1 billion in its upcoming IPO, targeting a valuation of about $16.5 billion on a fully diluted basis. The San Francisco-based firm will offer nearly 40 million shares at $25–$28 each, with pricing expected by month’s end. This marks a major test for the tech IPO market, following years of slowed activity and the collapse of Figma’s proposed $20 billion merger with Adobe in 2023 due to regulatory pushback
Backed by top VCs like Sequoia Capital and Andreessen Horowitz, Figma reported $228 million in Q1 2025 revenue and $45 million in net income, despite a $732 million loss in 2024 tied to a one-time employee stock sale
The company also announced new board members and revealed plans for “blockchain common stock,” CEO Dylan Field will retain control post-IPO through super-voting shares
Major banks including Morgan Stanley and Goldman Sachs are leading the offering
WHAT A TIME TO BE ALIVE
Women Are Redefining Wealth, And The Future Of Investing (Forbes, 4 minute read)
A quiet revolution is unfolding as the U.S. prepares for the $84 trillion "Great Wealth Transfer" over the next two decades. Women—who live longer, increasingly earn more, and inherit from spouses and parents—are expected to control two-thirds of that wealth by 2030, totaling over $30 trillion in U.S. assets. Yet, the benefits won't be equally shared: women of color, particularly Black and Latina women, continue to face deep racial wealth gaps, with median Black wealth still over $220,000 less than white households
Women are not just inheriting wealth; they are transforming finance. Studies show they invest more strategically, trading less and outperforming men by 1.8% annually, while prioritizing ESG values and long-term impact
Women currently control $10.9 trillion in U.S. assets, and their growing influence is reshaping investing as a form of activism. Yet, they receive less than 3% of venture capital funding
As women become capital allocators, not just consumers, they are leading a shift toward a more inclusive and intentional financial future, because when women invest, everyone benefits
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Happy reading,
8alpha.ai’s Research & Investment Team
