Good day. Kailera Therapeutics roared on to the public markets earlier this month by raising a $625 million in its initial public offering. Three more biotechs aim to ride that momentum in their stock-market debuts this week.

Kailera went public at $16, and its shares have climbed about 47% since the IPO on the strength of its potential obesity treatments. This week Avalyn Pharma, which targets rare respiratory diseases, neuropsychiatric drug developer Seaport Therapeutics and Hemab Therapeutics, which develops treatments for bleeding disorders, plan to stage IPOs.

After a year in which only a handful of drugmakers went public, investors had hoped for a rebound in biotech IPOs in 2026. So far they have gotten one.

Seven biotechs priced IPOs in the first quarter, making it the best since Q4 of 2021, according to investment bank William Blair.

But unlike the 2021 boom, investors are scrutinizing individual biotechs going public this year. As a result, the performance of this year’s class has been uneven.

Some, such as Kailera and hair-loss biotech Veradermics, have shot up while others, including Generate Biomedicines and Eikon Therapeutics, have been flat or traded down.

This week’s IPOs will be another test of whether the recovery of biotech IPOs has legs.

And now on to the news...

Projections missed. OpenAI recently missed its own targets for new users and revenue, stumbles that have raised concern among some company leaders about whether it will be able to support its massive spending on data centers. Chief Financial Officer Sarah Friar has told other company leaders that she is worried the company might not be able to pay for future computing contracts if revenue doesn’t grow fast enough, according to people familiar with the matter.

• Board directors have also more closely examined the company’s data-center deals in recent months and questioned Chief Executive Sam Altman’s efforts to secure even more computing power despite the business slowdown, the people said.
   
• “We are totally aligned on buying as much compute as we can and working hard on it together every day,” Altman and Friar said in a joint statement. Any suggestion that the pair are divided or pulling back on securing new computing resources is “ridiculous,” they said.

European tech firm Vinted said the company was valued at 8 billion euros ($9.38 billion) in a secondary sale of its shares. The company, one of Europe’s largest online secondhand retailers, said Monday that existing shareholder EQT and new investors Teachers’ Venture Growth—part of Ontario Teachers’ Pension Plan—and Schroders Capital led the acquisition of around 880 million euros in shares in a secondary sale. BlackRock, Lombard Odier and Pinegrove Opportunity Partners were also new investors on the deal.

Meta Platforms is preparing to have to unwind its acquisition of the artificial-intelligence startup Manus after China banned the transaction on national-security grounds Monday, according to people familiar with the matter. China banned Meta Platforms’ acquisition of the artificial-intelligence startup and ordered that the $2.5 billion deal be unwound. 

• “The transaction complied fully with applicable law,” a Meta representative said in an email statement. “We anticipate an appropriate resolution to the inquiry.”

Correction: Darian Shirazi, managing partner at Gradient, said he thinks Cerebras Systems could be a $100 billion company in the near future. Monday’s newsletter incorrectly said he thinks Cerebras could be a $100 million company in the near future.

Ineffable Intelligence, a London artificial intelligence startup founded by David Silver, has raised a $1.1 billion seed round at a post-money valuation of $5.1 billion. Silver previously led the reinforcement learning team at DeepMind, a subsidiary of Alphabet. The seed round was co-led by Sequoia Capital and Lightspeed Venture Partners, with participation from NVIDIA, DST Global, Index Ventures, Google, Flying Fish Ventures, EQT Ventures, Evantic Capital and others.

True Anomaly, a defence technology company focused on space defense, has raised $650 million in Series D funding at a $2.2 billion valuation.The round was co-led by Eclipse Capital and Riot Ventures, with participation from new investors Paradigm, Atreides, G Squared, The Private Shares Fund, VanEck, and others, in addition to existing investors Accel, Menlo Ventures, ACME Capital, Space VC, Meritech Capital, Narya and 645 Ventures. The total includes $50 million of debt provided by Stifel Bank.

Avoca, a New York startup whose AI handles call handling, scheduling, custom marketing campaigns and other tasks for services businesses, raised $125 million across its seed, Series A and Series B rounds. The Series B round was led by Meritech and General Catalyst. The company is valued at $1 billion. Its Series A was led by Kleiner Perkins. Other investors include Amplify and YC. The company is moving beyond home-services businesses to customers in moving, junk removal, automotive services and property management.

SkyfireAI, a Huntsville, Ala.-based startup building an autonomy software layer for coordinated, multi-ship drone operations, closed an $11 million seed round. Mucker Capital led the investment, which included participation from AI Fund, SaaS Ventures, Halogen Ventures and others.

Copperhelm, an Israel-based agentic cloud security provider, launched from stealth with $7 million in seed funding. TLV Partners led the investment, which included contributions from toDay Ventures, SaaS Ventures Israel and others.

Clera, a San Francisco-based agentic talent agent that introduces candidates directly to founders and hiring managers at venture-backed startups, secured $3 million in pre-seed funding from investors including 1984 Ventures and Deel.

• That Video on Your Phone Might Be Made-in-China AI

• OpenAI and Microsoft Reach Deal to Give Startup New Freedom
   
• The AI Splurge Is Costing Big Tech Its Workforce
   
• The Race to Make the World’s Most In-Demand Machine

• The man turning the Pentagon into a venture capital firm (Washington Post)
   
• Demand rises for ID verification amid AI advancements (Semafor)

This newsletter was compiled by Matthew Strozier and Zachary Cole.

Share your tips, comments and questions: vcnews@wsj.com

The team: Matthew Strozier, Yuliya Chernova, and Brian Gormley.

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