Good day. While it’s not game over, the gaming sector has been in a slump. Global deal count in the first quarter was the lowest quarterly figure since the second quarter of 2019, according to a recent report from PitchBook. This underscores investor hesitation while the industry awaits the next platform shift and grapples with a lack of gaming hits to come out of the fast money days of circa 2021.

For this week’s question, we want to hear where the next big jump in gaming innovation will occur and whether it will be enough to jolt the sector out of its current funding rut. Email responses to vcnews@wsj.com.

Last week, we asked what attributes make a company a strong candidate to go public in today’s market. Here are some of the responses, edited for clarity and length:

Maria Palma, general partner at Freestyle: “Companies eyeing the public markets often need close to a billion in revenue, profitability and strong growth momentum. We’re seeing a departure from the last decade, when growing fast seemed to be all that mattered, even if accompanied by losses. Now, public investors are still favoring companies that scale quickly, but showing more favor to companies that also demonstrate good fundamentals."

Alex Niehenke, partner at Scale Venture Partners: "The key is having a management and shareholder base prepared to weather the volatility of a publicly traded stock and unlock the value of that public currency. Today, private capital may seem like the cheaper option. But in the long run, the hidden costs—beyond simple valuations and dilution—could outweigh the benefits."

Spencer Farrar, partner at Theory Ventures: “The strongest IPO candidates today are companies with clear exposure to AI or crypto, especially stablecoins, where public appetite for risk remains high. Circle's IPO exemplifies this trend, reflecting a broader lesson from public markets: Investors consistently prize pure-play stories and narrative clarity over near-term profitability. Circle is now a proxy for stablecoins, just as OpenAI would be for frontier-model AI.”

Larry Aschebrook, founder and managing partner of G Squared: "Many of the companies best positioned to go public right now are in no rush. With private markets serving up growth capital and shareholder liquidity relief readily available via secondary [deals], these industry-leading businesses can continue scaling without taking on the demands and volatility of the public markets. In this environment, going public is less a necessity and more a strategic option."

And now on to the news...

IPO pop. Chime Financial’s stock jumped in its stock-market debut Thursday, the latest sign the U.S. initial public offering market is awakening, The Wall Street Journal reports. Shares of the financial technology company jumped 37% from their IPO price of $27 in trading Thursday. The stock closed at $37.11, giving the company a more than $13 billion market capitalization. New listings have faced a tough market over the past three years, as interest rates rose and investors re-evaluated the big valuations they previously gave buzzy startups. Shares of companies that went public in the U.S. in 2020 and 2021 tumbled, and for years the majority traded below their IPO prices.

Aerospace company JetZero for years has been pitching a spacious, fuel-efficient commercial airplane of the future. Now, the startup is going to actually build it, WSJ reports. The company said it would break ground next year on a manufacturing plant in Greensboro, N.C., ultimately investing nearly $5 billion. It puts JetZero on track to start rolling out its space-age-looking, blended-wing airplanes for commercial use by 2032. Some 15 airlines have been advising JetZero as part of an airline working group. Alaska Airlines and United have invested in the startup.

Philippe Laffont, a hedge-fund manager who made a name for himself by turning big ideas into big payouts, foresees much promise in private markets and artificial intelligence, WSJ Pro reports. “This year, I feel more like [it’s] the year of the privates,” Laffont said Thursday at an Economic Club of New York event. He singled out OpenAI, the artificial-intelligence company behind ChatGPT, as the private-markets equivalent of AI chipmaking giant Nvidia, another of Laffont’s Coatue Management investments.

Funds

Early-stage investor Felicis raised $900 million for its tenth and largest fund to date.

Yaday launched a €100 million fund focusing on applied artificial intelligence startups across Europe, the U.S. and the Middle East. The firm has offices in Paris, Miami and Tel Aviv.

Collab Capital closed its second fund with $75 million in commitments to invest across sectors including work, healthcare and community infrastructure.

People

Courage Therapeutics, a startup developing treatments for obesity and eating disorders, appointed Giovanni Ferrara as chief executive officer. He was most recently CEO of Medeor Therapeutics.

Cloud security platform Upwind appointed Rinki Sethi as chief security officer.

Robotic garment-care startup Presso said Jon Gershman joined the company as chief commercial officer.

Meter, a San Francisco-based provider of internet infrastructure for businesses, scored $170 million in Series C funding led by Hemant Taneja at General Catalyst.

Proxima Fusion, a Munich-headquartered fusion energy startup, closed a €130 million (about $148.5 million) Series A round co-led by Cherry Ventures and Balderton Capital.

Nominal, a Los Angeles-headquartered hardware testing startup, landed $75 million in Series B funding led by Sequoia Capital.

Abacum, a New York-based business planning software provider, raised $60 million in Series B funding led by Scale Venture Partners.

Tastewise, a generative AI platform providing intelligence to food and beverage companies, secured $50 million in Series B financing led by Telus Global Ventures.

Fermàt, a San Francisco-based commerce platform that generates shopping journeys for human and agentic shoppers, picked up $45 million in Series B funding led by VMG Partners.

Sojo Industries, a Bristol, Pa.-based provider of industrial automation technology to the food and beverage industry, grabbed a $40 million investment from S2G Investments.

Payrails, a Berlin-based global payment software startup, collected $32 million in Series A funding led by HV Capital.

Landbase, a San Francisco-based agentic AI startup that automates go-to-market workflows for businesses, raised $30 million in Series A funding co-led by Sound Ventures and Picus Capital.

Outset, a San Francisco-based customer research platform, obtained $17 million in Series A funding led by 8VC.

Auto-parts supplier Marelli became one of the first big companies to file for bankruptcy under the weight of the Trump administration’s tariffs.

Retailers are raising the bar for free delivery—or eliminating the perk—as they seek to mitigate tariff costs.

Recent changes to CPA licensing laws in many U.S. states mean one thing for some prospective accountants: School’s out early.

Nvidia has unveiled a new generative foundation model that it says enables simulations of Earth’s climate with unprecedented resolution. The question is what else humans will do with it.

• Tech giants’ new AI ad tools threaten big agencies

• Peloton names its latest marketing chief as turnaround project continues

• Senators propose ban on drug advertising to consumers

• Sunnova bankruptcy loan and sales approved, hurdles remain

• ‘Click’ review: How to serve hot apps

This newsletter was compiled by Matthew Strozier 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, Angus Loten and Marc Vartabedian.

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