Good day. Last year was disappointing for venture investors hoping for a resurgence of initial public offerings. Now, all hopes rest on the new wave of artificial intelligence startups, growing so quickly that they might become IPO-ready faster than previous generations of companies, according to Renaissance Capital.

More than 200 AI-related companies will go public in the U.S. between 2026 and 2028, representing more than $500 billion in public market value, according to estimates by Renaissance Capital, a provider of pre-IPO research and IPO-focused exchange-traded funds.

We want to hear from you. How many venture-backed IPOs do you expect to take place in the U.S. this year and how much value would they generate? Please email responses to vcnews@wsj.com. We might include yours in next Friday’s newsletter.

And now on to the news...

China warns AI startups on deals. China said it would review Meta’s recent acquisition of artificial-intelligence startup Manus, firing a warning shot toward Chinese entrepreneurs lured by Silicon Valley riches. People familiar with the matter said the review was part of broader consideration by Beijing about how it can build fences around its AI know-how when the U.S. and China are locked in an intensifying technology race. Officials have started identifying standout companies and reviewing AI-related technologies developed by Chinese researchers, with the aim of adding those of strategic importance to an export-control list, the people said.

• Manus’s parent company, Butterfly Effect, was set up by Chinese co-founders in China, but last year it moved its headquarters to Singapore, seeking to expand its global user base. Last month, Meta said it would buy Manus in a deal that people involved said was valued at $2.5 billion.

Meta on Friday unveiled a series of agreements that would make it an anchor customer for new and existing nuclear power in the U.S., where it needs city-size amounts of electricity for its AI data centers. The Facebook parent said it would back new reactor projects with the developers TerraPower and Oklo and has struck a deal with the power producer Vistra to purchase and expand the generation output of three existing nuclear plants in Ohio and Pennsylvania.

Elon Musk has repeatedly expanded the boundaries of permitted speech on his social-media platform X. Child-safety watchdogs and international regulators say a recent update to its AI chatbot Grok crossed a dangerous line: permitting sexualized editing of photos, including of children. Now Musk, who has called himself a free-speech absolutist, while also vowing to take a hard line on child exploitation, faces growing calls for enforcement around the world and in the U.S.

Funds

Boston-based Guidepost Growth Equity said it exceeded the $500 million target of its fourth fund with $521 million in total commitments.

People

Adrian "Ad" Rawcliffe was appointed chief executive officer of Etiome, a disease detection and preemption startup, and CEO-partner of Flagship Pioneering. He most recently served as CEO of Adaptimmune Therapeutics.

Left Lane Capital promoted Laura Sillman, Henry Toole and Magnus Karnehm to partner, and elevated Mark Shtrakhman and Alexa Tsay to vice president.

Rune Labs, a startup focused on precision medicine for neurology, named Amy Gordon Franzen as its new chief executive officer. She was previously senior vice president and general manager at Tempus.

Cyera, an AI and data security provider with headquarters in New York and Israel, nabbed $400 million in Series F funding, bringing the company’s valuation to $9 billion. Funds managed by Blackstone led the investment, which saw participation from Accel, Redpoint Ventures, Sequoia Capital and others.

Corgi, a San Francisco-based insurance carrier for startups, fetched a $108 million investment from Y Combinator, Kindred Ventures, Alumni Ventures and others.

EpiBiologics, a San Mateo, Calif.-based startup developing targeted therapies across oncology and immunology, completed a $107 million Series B round. GV and Johnson & Johnson Innovation – JJDC led the investment, which included participation from Novartis Venture Fund, Polaris Partners and Digitalis Ventures.

Pomelo Care, a New York provider of evidence-based healthcare for women and children, scored $92 million in Series C funding led by Stripes, giving the company a $1.7 billion valuation.

Articul8, a Dublin, Calif.-headquartered enterprise GenAI software startup, closed the first tranche of its Series B round with Adara Ventures as the lead investor. The round is expected to close at $70 million, bringing the company’s valuation to over $500 million.

Valinor Enterprises, a Washington, D.C.-headquartered defense tech startup, raised $54 million in Series A funding. Friends & Family Capital led the round, which included General Catalyst, Founders Fund and others.

Protege, an AI training data platform, added $30 million in new Series A funding led by Andreessen Horowitz. Additional investors in the round included Footwork, CRV and Bloomberg Beta.

Blackbird.AI, a New York-based startup protecting executives and organizations from narrative-based disinformation attacks, added $28 million in new funding from investors including Ten Eleven Ventures and Dorilton Ventures.

Enodia Therapeutics, a Paris-based targeted protein degradation platform focused on inflammatory and autoimmune diseases, collected $25 million in seed funding co-led by Elaia, Pfizer Ventures and Bpifrance.

Array Labs, a Palo Alto, Calif.-headquartered startup building space-based radar systems, landed $20 million in Series A funding led by Catapult Ventures.

Tucuvi, a New York-based startup providing clinical voice AI for care management, secured $20 million in Series A financing led by Cathay Innovation and Kfund.

Babylon, a bitcoin startup, raised $15 million from a16z crypto.

• Scientists Create Robots Smaller Than a Grain of Sand

• GM Takes $6 Billion Hit Tied to Electric Vehicles as Demand Sinks

• Chinese EV Maker NIO to Enter Australia, New Zealand Markets This Year

• Paramount Defends Its Hostile Bid for Warner

   

• Why this VC thinks 2026 will be ‘the year of the consumer’ (TechCrunch)
   
• Is Craigslist the Last Real Place on the Internet? (Wired)

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, and Brian Gormley.

Join us on LinkedIn.