Startups Weekly: Mercury more than doubled its valuation, and other news

Tech Crunch - Mar 28th, 2025

This week's startup news presented a mixed bag of developments, from IPO delays to significant funding rounds. Notably, Cerebras Systems faced another postponement in its IPO due to an ongoing national security review. Meanwhile, Terrestrial Energy went public via a SPAC, aiming to raise $280 million, and Commonwealth Fusion Systems, supported by Bill Gates, reached a milestone in building its demonstration reactor. However, not all news was positive, as Plenty, a vertical farming company, filed for bankruptcy despite substantial investments from major players like Jeff Bezos and SoftBank.

In the realm of venture capital, several startups achieved significant funding milestones. Mercury, a digital banking startup, raised $300 million, doubling its valuation to $3.5 billion, while Island secured $250 million, enhancing its valuation to $4.85 billion. Additionally, Rivian's new micromobility startup, Also, received $105 million to develop small EVs. Other noteworthy funding rounds included n8n's $60 million for workflow automation, Mendel's $35 million Series B in Mexico City, and Arcade's $25 million for expanding its AI marketplace. These developments highlight the dynamic nature of the startup ecosystem, with both challenges and growth opportunities emerging across various sectors.

Ai Ipo Rivian Cerebras Systems Venture Capital Commonwealth Fusion Systems Funding Mercury Startups Plenty Arcade Daphni Emergence Capital Terrestrial Energy Island N8n Mendel

Story submitted by Fairstory

RATING

6.0

Moderately Fair

Read with skepticism

The article provides a broad overview of recent developments in the startup world, with a focus on financial transactions, IPOs, and technological advancements. It scores well in terms of timeliness and clarity, offering readers a clear and current snapshot of the industry. However, it falls short in transparency and source quality, as it lacks detailed references and explanations of its information sources. The balance between different perspectives is limited, focusing primarily on financial metrics rather than broader industry implications. While the article covers topics of public interest, its potential impact is constrained by a lack of in-depth analysis and engagement elements. Overall, the story serves as a useful update for those interested in the startup sector but could benefit from more detailed exploration and transparency to enhance its credibility and impact.

Accuracy

The story provides a comprehensive overview of various startup activities and developments. It accurately reports on public exits, such as Cerebras Systems’ IPO delay, and Terrestrial Energy’s SPAC merger, which are verifiable through public records and press releases. However, the claim about 11x using creative accounting methods to calculate annual recurring revenue lacks direct evidence or specific examples, making it harder to verify. Additionally, the narrative around Plenty filing for bankruptcy after significant investment requires further corroboration from financial filings or official statements. The mention of Bill Gates-backed Commonwealth Fusion Systems achieving a milestone could be supported by announcements from the company, though the specifics of the milestone are not detailed in the story.

Balance

The article presents a range of startup stories, covering both positive developments and setbacks. However, there is a noticeable focus on financial outcomes and valuations, potentially overshadowing other aspects of startup progress, such as technological innovation or market impact. The story about layoffs at Block is mentioned briefly without exploring the broader implications for the workforce or industry, which could suggest a slight imbalance in perspective. The article also does not provide much detail on the implications of Nvidia's potential acquisition of Lepton AI, which could be a significant industry development.

Clarity

The article is generally well-structured and easy to follow, with clear headings and subheadings that guide the reader through different sections. The language is straightforward and accessible, making it easy for readers to grasp the main points. However, the rapid transition between stories without much context or background information on each startup could lead to confusion for readers unfamiliar with the companies mentioned.

Source quality

The article references reputable sources like TechCrunch and mentions well-known entities such as a16z, Benchmark, and Sequoia. However, it lacks direct quotes or detailed references to primary sources, reducing the ability to assess the reliability of the claims. There is no clear indication of whether the information was obtained from press releases, interviews, or insider sources, which affects the credibility assessment. The mention of 'sources' for some claims, such as the creative accounting by 11x, without further identification, raises questions about the reliability of these assertions.

Transparency

The article does not provide much transparency regarding its information sources or the methods used to gather the data. There is no disclosure of potential conflicts of interest or the basis for some of the claims made, such as the creative accounting practices of 11x. The lack of methodology explanation makes it difficult for readers to understand how conclusions were drawn, particularly regarding financial figures and valuations.