Good day. Venture firm Neo, which leads pre-seed and seed rounds, has produced outstanding returns from its first and second funds. Both pools had a fairly high number of portfolio companies, 50 and 80, respectively.

So what is the optimal number of portfolio companies per seed fund in today's market? Has your thinking on that front evolved in the generative-AI era, and as megafunds have become so dominant? Please email responses to vcnews@wsj.com.

Last week, we asked what the megarounds for health-wearables companies Whoop and ŌURA say about the state of the digital-health venture market. Are funds simply flowing to the strongest startups, or is the sector careering toward another bubble? Following are responses, edited for length and clarity.

• Sunny Kumar, partner at Informed Ventures: “The success of consumer-oriented Whoop and ŌURA is based on providing meaningful and ongoing value to customers and building a large and loyal user base to scale. These megarounds, in addition to enterprise-focused digital health IPOs in the past 12 months, demonstrate clear interest in a sector where AI innovations are still in the early stages. There will be opportunities for AI-native startups to challenge traditional competitors, especially if they can build patient-centric interfaces that integrate with existing healthcare systems.”
   
• Kamal Singh, senior vice president at WestBridge Capital: “We at WestBridge have studied the health wearables category very closely and appreciate that long-term value accretion occurs when companies leverage high-value, context-rich, longitudinal health data. Access to this data and health signals unlocks much larger market opportunities—such as becoming the front door to the entire preventive healthcare category—and gives investors the confidence to back winners at rich valuations!”
   
• Evan Schlossman, principal at SuRo Capital: "In our view, these financings validate a broader consumer trend toward health, longevity and actionable self-knowledge. As AI becomes more embedded in health, companies like Whoop are well-positioned to translate large volumes of data into personalized insights."

And now on to the news...

On the rise. A Swedish developer of hydrofoiling electric boats has received an order for 20 ferries from a new customer in Norway. Norwegian public transport operator Boreal ordered 20 of the hydrofoiling electric passenger boats to service new and existing routes along the Norwegian coast and across the country’s fjords. Candela’s ferries, known as the P-12, are fitted with a hydrofoil system that lifts the boats completely out of the water, cutting drag and reducing overall energy consumption by up to 80% versus conventional ships of similar size, the company said.

• Candela has raised a total of 129 million euros since Gustav Hasselskog founded it just over a decade ago.

Accounting firms are scaling back the role of human auditors in routine testing of things like payroll and revenue contracts, long a critical part of their work, amid a greater reliance on AI agents. KPMG said it plans to remove humans from routine testing so they can focus on more complicated tasks, while “orchestration agents”—which autonomously manage several agents, potentially more than 20—handle testing duties. That switch will start with a pilot program this summer, with plans for full AI agent deployment on certain tests next year.

A British solar startup is at the center of a high-stakes pursuit by two of the world’s largest renewable energy players over a new form of the technology that harnesses significantly more energy from the sun. Oxford PV, which was spun out from the University of Oxford in 2010, produces solar cells that are coated with a layer of perovskite, a material that increases the efficiency of an ordinary solar cell by 20%, according to the company. Aside from developing solar technology, Oxford PV has managed to deploy its products in both the Chinese and U.S. markets at around the same time, an unusual step for a European startup

Funds

Collide Capital, an early-stage investor focused on fintech, supply chain and the future of work, raised $95 million for its second fund.

People

Ada Ventures launched a scout program in Norway and appointed Tonje Ørnholt as venture partner for the Nordics. Ørnholt joins the firm from Oslo Business Region, where she was head of investment.

Gigascale Capital, an investor that backs early-stage companies rebuilding the physical economy, promoted Evaline Tsai to partner. Prior to joining Gigascale, she was at Fine Structure Ventures.

Deals

Numa, an AI platform for auto dealership customer operations, acquired AI sales platform Ficus.

SiFive, a Santa Clara, Calif.-based data-center chip technology provider, scored $400 million in Series G funding, valuing the company at $3.65 billion. Atreides Management led the round, which included contributions from Apollo Global Management, Nvidia, Sutter Hill Ventures and others.

Chapter, a New York-headquartered Medicare navigation platform, raised $100 million in Series E funding. Generation Investment Management led the round, which included participation from Stripes, XYZ Venture Capital and others.

MillTech, a London-based risk management platform, picked up a $60 million minority investment from the growth equity arm of Apax Partners.

Elorian, a Palo Alto, Calif.-based AI research and product lab focused on advancing visual reasoning for AI, was seeded with a $55 million investment co-led by Striker Ventures, Menlo Ventures and Altimeter Capital.

Portal Space Systems, a Bothell, Wash.-based startup developing rapidly maneuverable spacecraft vehicles, landed $50 million in Series A funding from investors including Geodesic Capital.

Patlytics, a New York-headquartered patent platform, secured $40 million in Series B funding led by SignalFire.

Luminai, a San Francisco-headquartered enterprise AI automation platform for healthcare operations, closed a $38 million Series B round. Peak XV Partners led the funding, which saw participation from Define Ventures, General Catalyst and Y Combinator.

Pipe, a San Francisco-based startup providing embedded financial solutions for small businesses, nabbed $16 million in funding from investors including Fin Capital and MaC Venture Capital. Marlon Nichols, general managing partner at MaC Venture Capital, joined the company’s board.

Rork, an AI platform designed to build and launch mobile apps using natural language, snagged $15 million in seed funding. Left Lane Capital led the round, which included additional support from Peak XV Partners, True Ventures and a16z Speedrun.

Sora Fuel, a Boston-based startup making jet fuel from air, water and renewable energy, completed a $14.6 million investment co-led by Spero Ventures and Inspired Capital.

Haast, a New York-headquartered AI-powered enterprise compliance engine, fetched $12 million in Series A funding led by Peak XV Partners.

Juno, a San Diego-based tax preparation automation platform, grabbed $12 million in seed funding from investors including Bonfire Ventures, Impression Ventures and Xfund.

• Meta Removes Law-Firm Ads Recruiting Clients to Sue It

• Amazon CEO Presses His Case for Big AI Spending

• Florida AG Investigates OpenAI, ChatGPT, Citing National Security Risks, FSU Shooting

• At David Sacks’s Behest, White House Barrels Forward on Industry-Friendly AI Policy

• Inside the Race to Protect Submarine Cables From Sabotage

• 10 Women Whose Inventions Transformed Household Chores

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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