Good day. At the Primary NYC Summit this week, the topics of conversation ranged from the dazzling valuations and unsolicited term-sheets many AI startups are scoring, to the struggles the rest of the market is enduring. We'd like to know: How are you dealing with the investment gulf between the haves and have-nots? How can startups left out of the frenzy cope? Please email responses to vcnews@wsj.com.

Last week we asked whether there is any limit to the AI boom, and at what point will new investments be late to the party. Responses have been edited for length and clarity.

• Edwin Andrade, partner at Core Innovation Capital: "We’re starting to see signs of liquidity returning to VC, which might mean more dollars recycled into venture. If rates move lower, it could add more fuel in the short term and set us up for a more painful reset down the line. More capital means we fund more companies, but it also concentrates into what appear to be the hottest winners. That dynamic has inflated forward revenue multiples, especially at the early stages. Many businesses won’t make the transition to sustainable businesses.”
• Pradeep Tagare, head of investments at National Grid Partners: "The AI venture boom isn't hitting a ceiling—it's creating the most compelling infrastructure investment opportunity of our generation. The real constraint is power: Electricity demand from AI data centers is growing exponentially. Investors shouldn't be chasing the next chatbot; they should be funding grid modernization and energy solutions. Without reliable, clean power, AI ambitions will hit a wall."
• Emily Zhao, a principal at Salesforce Ventures: "While AI venture capital may appear saturated at the foundational model level, we're entering a more compelling phase—the transition from digital applications to the physical-world. Investors are pivoting toward new frontiers like robotics that address real-world challenges. These investments require patient capital, longer development cycles and multi-faceted expertise."
• Manthan Shah, a principal at WestBridge Capital: “Like any hype cycle, this could correct in the near term, but we still believe the overall opportunity remains massive. The AI boom is just beginning globally, and we’re optimistic about the caliber of entrepreneurs and companies emerging across the U.S. and India.”

And now on to the news ...

Flexport forecasts profitability in 2025—with an asterisk. Digital freight forwarder Flexport projects it will be profitable this year. The company’s founder, Ryan Petersen, says it doesn’t really count.

• Flexport in July sold the digital freight business and technology of defunct truck broker Convoy to DAT Freight & Analytics for about $250 million, less than two years after it had acquired the platform for approximately $16 million.
   
• Petersen said that the sale gave Flexport’s bottom line a boost.

Technology specialist investor Vista Equity Partners is backing U.K. field service management software company Joblogic, betting that artificial intelligence will supercharge field work and property management.

• Vista’s more than £100 million, or about $135 million, capital injection seeks to fuel Joblogic’s growth, as the Birmingham company boosts its AI offerings. The capital also supports the company’s expansion into computer-aided facility management, or CAFM, helping large building owners with in-house technicians and contractors manage their properties.

Throw a rock in San Francisco and you’re likely to hit an aspiring or actual tech company founder with hopes of launching a breakthrough product. They are racing to join the lofty ranks of tech billionaires who revolutionized the world’s shopping, communication and entertainment habits.

• As kids, the newest startup generation watched the Facebook origin story, “The Social Network,” carried iPhones as soon as they could read and wrote code as teens.
• The brass ring is a trillion-dollar company with a global user base. To grab it, they rarely drink, scoff at work-life balance and are locked in a 24-7 competition to be, or appear to be, the most obsessed.

Read the full article here.

WSJ Tech Live is The Wall Street Journal’s premier technology event series. Over three days, our journalists will sit down with top executives, founders and policymakers to explore the most pressing topics of today. It all takes place across two global destinations for innovation and investment: California and Qatar.

Register your interest to be part of this unique live journalism experience and receive access to exclusive discounted rates on your pass.

People

Index Ventures appointed Sahir Azam as partner. He was previously chief product officer at MongoDB.

Lightspeed Venture Partners hired Josh Machiz as chief marketing officer. He was previously at Redpoint Ventures.

Thrive Capital appointed Patrick Hsu as a venture partner.

Replit, a Foster City, Calif.-based agentic AI software creation platform, scored a $250 million investment, valuing the company at $3 billion. Prysm Capital led the round, which included participation from Andreessen Horowitz, Craft Ventures and others.

CuspAI, a U.K.-based startup using AI for materials discovery, closed on more than $100 million in Series A funding. New Enterprise Associates and Temasek co-led the investment, which included participation from NVentures and others. Lila Tretikov, partner and head of AI strategy at New Enterprise Associates, will join the company’s board.

Diana Health, a New York-based network of women's health practices working in partnership with hospitals, secured $55 million in Series C financing. HealthQuest Capital led the round, which included additional support from Norwest, .406 Ventures, LRVHealth and AlleyCorp. Neel Shah, along with HealthQuest Capital’s Witney McKiernan, will join Diana Health’s board.

Nitricity, a startup transforming almond waste into organic fertilizer, closed a $50 million Series B round co-led by World Fund and Khosla Ventures.

Koi, a Washington, D.C.-based endpoint security startup, raised $48 million in seed and Series A funding from investors including Battery Ventures, Team8, Picture Capital and NFX.

Alchemab Therapeutics, a London-headquartered biopharmaceutical startup that identifies and develops naturally occurring therapeutic antibodies from individuals, added $32 million in Series A extension financing, bringing the Series A total to $114 million. Investors including SV Health Investors and DCVC Bio participated in the latest tranche.

Noxilizer, a Hanover, Md.-headquartered provider of nitrogen dioxide-based sterilization for biopharmaceutical and medical device manufacturers, raised a $30 million growth capital investment led by NewVale Capital.

SpiralDB, a New York-based database startup, launched with $22 million in seed and Series A funding from investors including General Catalyst and Amplify Partners.

Ume, a São Paulo-based credit platform for Brazilian merchants, raised $21.8 million in Series B funding led by Valor Capital Group and Bewater.

Goodpath, a Cambridge, Mass.-based virtual care provider for chronic conditions, landed $18 million in Series A funding led by MassMutual Ventures.

Red Access, a Tel Aviv-headquartered browser and data security startup, fetched $17 million in Series A funding. Norwest led the round, with General Partner Dror Nahumi joining the board. Douglas Brockett was named executive chairman.

Standard Fleet, a San Francisco-based fleet management platform, collected $13 million in Series A funding led by Nova Threshold.

• Tim Cook and Apple’s Design Team Explain the ‘Shockingly Thin’ iPhone Air
   
• Microsoft, OpenAI Truce Clears Hurdle in Path to For-Profit Conversion
   
• OpenAI’s Funding Challenges Loom Over Oracle, Broadcom Deal Spree
   
• A Guaranteed Income Won’t Stop People From Wanting to Work
   
• Rushing to Meet AI’s Energy Needs: Oil-Field Servicers
   
• Four Years After Kaseya’s Nightmare Hack, a Cyber Turnaround Is Underway
   
• Why Klarna’s Formerly Flashy Marketing Might Seem ‘More Boring’
   
• Adobe Boosts View as Sales, Profit Continue to Rise
   
• BuzzFeed Relaunches Flagship YouTube Channel

• Figure stock surges in trading debut. The blockchain lending company is another hot IPO (Barron's)
   
• Encyclopedia Britannica sues Perplexity over AI 'answer engine' (Reuters)

This newsletter was compiled by Marc Vartabedian, Yuliya Chernova and Zachary Cole.

WSJ Pro Venture Capital is a premium service of The Wall Street Journal. We cover venture capital and the global startup ecosystem. Share your tips, comments and questions: vcnews@wsj.com

The Team: Matthew Strozier, Yuliya Chernova, Brian Gormley and Marc Vartabedian.

Follow us on X: @wsjvc