The Rundown: Edition 18 – Jack&Jill’s $20m seed round, IMF bubble warning, and the AI underclass
Welcome to The Rundown, a snapshot of news, views and intel from the fast-growth tech and investment scene.
Thanks to those who have flagged events or stories of interest, please keep them coming. You can send updates for next week to [email protected], and do 
Bitcoin worth $14bn seized in US fraud case
The US government has seized $14bn in bitcoin, charging the UK and Cambodian national Chen Zhi with allegedly constructing a wire-fraud conspiracy and money laundering scheme. The seizure is thought to be one of the biggest in history. BBC
IMF warns of ‘elevated’ risk as AI bubble looms
IMF analysts warn that valuations on risky assets have “become stretched”, with fears of a market correction now growing. Concerns about an asset bubble have echoed those of the dot-com bubble of the early 2000s. Times
Mistral launches AI-powered scientific discovery team
The French AI giant, which has raised nearly €2.8bn since launching in 2023, is launching a team dedicated to utilising AI to drive research breakthroughs in fields such as maths, physics, chemistry, biology, and material sciences. Sifted
Oracle founder commits £890m to the Oxford Institute
Larry Ellison has committed an additional £890m to expand his Oxford-based technology institute, aiming to alleviate concerns about the institute’s trajectory. The investment boost will increase the campus size nearly sixfold, compared to plans unveiled just two years ago. Times
Investing in British university spinouts reaches new highs
A new report by Parkwalk Advisors and Beauhurst has found that investment in UK spinouts reached unprecedented levels last year. Momentum is continuing to build, and earlier this year, Parkwalk and Northern Gritstone launched the Northern Universities Venture Fund to provide greater investment access in the north. BusinessWeekly
UK venture funding rallies to £6.8bn
Venture capital funding in Q3 was the highest it has been since 2022. The rebound was largely driven by blockbuster fintech deals, with Revolut and Nscale securing multiple billion-dollar rounds in a single year. UKTN
Wayve in talks with Microsoft and Softbank to raise $2bn
The London-based startup is negotiating a new funding round that would value it at roughly $8bn, according to reports. Wayve, which was founded in 2017, develops AI used in self-driving cars. FT
AI recruitment platform Jack & Jill raises $20m
Jack & Jill, which uses conversational AI to improve recruitment for employers and candidates, has raised a $20m Seed round led by Creandum. It will use the funds to expand beyond London into the US. TechCrunch
Spex Capital announces €30m commitment
The healthtech fund has confirmed the first €30m commitment to its flagship fund, which will invest globally in early-stage health tech startups from Seed to Series B. It’s also appointed Lord Markham, former UK Health Minister, as Chair of the Board. EU-Startups
German biotech Tubulis secures €308m Series C
Cancer treatment developer Tubulis has raised a record Series C round for a biotech led by Venrock Healthcare Capital Partners, with participation from Wellington Management and Ascenta Capita, and additional funding from existing investors. Tech.eu
Robotics startup Dexory raises $165m Series B
Dexory, which develops AI and robotics used in logistics, has announced a new funding round to grow its international operations led by Eurazeo with participation from LTS Growth and Endeavor Catalyst. UKTN
AI’s “permanent underclass”
If you’re worried about being forced into AI’s “permanent underclass”, Guardian columnist Van Badham thinks you’re already in it. Once AI surpasses the human capacity to innovate, it will render its developers obsolete and potentially eliminate other jobs. The Guardian
Traditional VC doesn’t work for defence
Andriy Dovbenko, Principal and Founder of UK-Ukraine TechExchange, proposes a new investment model for defencetech: blended capital. This emerging financial structure de-risks projects and opens access to new markets, which can help “unlock the scale and speed needed for defence innovation”. Professional Wealth Management
Where is the private sector in the UK’s cyber defence?
While the UK has all the tools to engage with and defend against growing cyber threats, a “critical vulnerability persists”. Chris McGrath, Director of Digital Trust at SCC, highlights the fragmented response between the private sector and government. Infosecurity Magazine
There’s no user experience without the user
The majority of corporate generative AI pilots are failing. Feargus MacDaeid, Chief Strategy Officer and Co-founder of Definely, believes this is because companies aren’t focusing on the user experience. Startups Magazine
Plugging the SVB gap with Erebor
Backed by Peter Thiel’s venture firm Founders Fund, the new bank, Erebor, plans to offer venture debt to startups – like Silicon Valley Bank once did. However, Paul McKinlay, VP and Head of US originations at CIBC Innovation Banking, believes it’s important for founders and investors to opt for firms with “staying power”. Finextra
Remember the $100,000 change to the US H-1B visa? Well, the Chamber of Commerce is suing President Trump over the executive order. The lawsuit argues that the fee is “unlawful” and would “hurt” American businesses. While the suit argues that the $100,000 price tag is damaging for the US tech industry, it is seen as a prime opportunity for Europe to attract talented people.
Should AI design clothes, or does it diminish the fashion industry’s artistry and creativity? Increasingly, it seems, the two are not mutually exclusive. Using AI tools is helping designers quickly create mockups and digitally fit garments before producing samples, therefore dramatically reducing waste. Some designers, such as Norma Kamali, are all for AI – she has a proprietary AI model that produces AI-generated designs that are featured on her website. Then, there are outlets like Vogue that are using AI models – and we’re not talking about LLMs.
Facial recognition and live facial recognition technologies don’t recognise people with facial differences and disfigurements. The miscategorisation doesn’t stop there, as the tech has also been criticised for failing to accurately recognise people of colour, women and non-binary people. These technological challenges call into question plans to implement facial recognition more widely. Clearly, the tech needs a lot more work. Watch this space (or face).