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⚡ Q2 FUNDING LANDSCAPE: AI RULES EVERYTHING AROUND ME ⚡

Hi Devoted Pitch Night Readers,

Let’s talk about current capital deployment, what it means for you as a founder, investor, or trend watcher, and what it means to survive these turbulent times. Let’s blast off in this week’s newsletter.

OpenAI's $40B mega-round was just the beginning. Here's where the smart money is moving now...

In Q1 2025, global venture funding hit a staggering $121 billion (highest since Q2 2022), with OpenAI's $40B raise stealing headlines and cementing its $300B valuation. But the real story? The shift from general AI infrastructure to specialized vertical applications.

💰 The numbers don't lie:

• 8 early-stage AI companies raised $100M+ rounds in Q1 (average: $222M per round)

• Isomorphic Laboratories secured $600M for AI drug discovery

• Infrastructure is giving way to vertical solutions in healthcare & industrial automation

• Fintech, digital health, and retail tech are seeing renewed investor interest

What this means for your raise: The days of growth-at-all-costs are over, but capital remains abundant for founders solving real problems with sustainable economics. Investors are becoming ruthlessly selective, demanding solid unit economics and clear paths to profitability.

"We're now seeing greater emphasis on vertical solutions and application-layer platforms that address specific industry challenges," reports CB Insights in their latest funding analysis.

🔄 TURNAROUND MASTERCLASS: HOW THE BEST FOUNDERS PIVOT & SURVIVE 🔄

When the market turns against you, these playbooks deliver...

☕️The Starbucks Revival Blueprint

When Howard Schultz returned to a struggling Starbucks in 2008, the coffee giant was hemorrhaging stores and customer loyalty. His three-part strategy:

1. Customer-obsession reboot: Launched "My Starbucks Idea" to crowdsource customer feedback

2. Digital transformation: Pioneered social media campaigns + mobile apps when competitors were still analog

3. Operational discipline: Closed underperforming stores while doubling down on experience

Result? A global powerhouse that redefined customer experience in retail.

🥣The Airbnb Origin Story You Never Knew

Before becoming a $ 75 B+ juggernaut, Airbnb was a desperate startup no investor would touch.

Co-founders Brian Chesky and Joe Gebbia's survival hack? They designed and sold "Obama O's" and "Cap'n McCain" cereal boxes during the 2008 election, raising $30K to keep the lights on. Within months, they secured incubator backing that changed everything.

Today: 4 M+ listings and billions in annual revenue.

🤖The AI-Era Execution Playbook

While legacy turnarounds offer valuable lessons, today's AI-focused companies like Cohere show what execution looks like in 2025:

• Razor-sharp focus on enterprise AI text analysis and generation

• Strategic partnerships with platforms (Notion, Zapier, Webflow)

• Solutions addressing specific pain points rather than broad capabilities

🔑 THE TURNAROUND FORMULA FOR 2025 

The market might be flush with AI capital, but the winners in this environment share three critical traits:

1. Assumption-challenging DNA The best founders aren't attached to their original vision—they're committed to solving the problem, whatever form that takes.

2. Rapid execution velocity When Schultz returned to Starbucks, he implemented core strategic changes within two months. In today's environment, speed isn't just an advantage—it's survival.

3. Radical economic transparency The days of hiding unfavorable metrics are over. The strongest founders build credibility by showcasing brutal honesty about unit economics, even when the numbers aren't pretty.

For those facing headwinds: this isn't just inspiration porn—it's a blueprint. Focus on fundamentals, embrace necessary pivots, and communicate transparently.

The world's best companies weren't built in bull markets—they were forged in moments like this.

What turnaround stories have we missed? Hit reply and let us know the pivots you're seeing in your portfolio.

🔥 PITCH COMPETITION ROADMAP: Q2

📆 MAY-JULY 2025

🌎 ENTREPRENEURSHIP WORLD CUP

Application Opens: May 2025

Event Date: Fall 2025 (Finals in Saudi Arabia)

Why It Matters: One of the largest global startup competitions with 370,000+ entrepreneurs from 200+ countries participating in previous years.

Perfect For: Startups across all stages and sectors looking for international exposure

Pro Tip: Previous winners have secured significant funding beyond the competition prizes through connections made during the event.

🌟 EFORALL SUMMER PITCH CONTESTS

Application Deadlines:

• May 28, 2025 (for June 17 event)

• May 9, 2025 (for June 7 event)

Prize: Cash awards plus mentorship

Perfect For: Early-stage entrepreneurs from underrepresented groups

Format: 2.5-minute high-level pitch

Insider Tip: They offer free pitch workshops to help entrepreneurs prepare

🦈 VETERAN SHARK TANK

Applications Open: July 2025

Event Date: December 2025 (during Army-Navy Football Week)

Location: Philadelphia, PA

Prize History: $50,000 grand prize plus potential direct investment offers

Perfect For: Veteran and military spouse entrepreneurs

Thank you to our Partners

StartEngine’s $30M Surge — Own a Piece Before June 26

Private markets are having a moment, thanks to companies like StartEngine.

The leading alternative investing platform is helping everyday investors like you access deals once reserved for VCs and insiders, including exposure to private market titans like OpenAI, Databricks, and Perplexity.¹

How’s it going? In Q1 2025, StartEngine pulled off $30M in revenue, its biggest quarter ever (based on unaudited financials).²

But StartEngine isn’t just a middleman. The company earns 20% carried interest on select pre-IPO offerings, unlocking value for shareholders when these deals succeed.³

How can you tap into this diversification play? By investing in StartEngine.

StartEngine has crowdfunded $85M+ to date, and you can join 45K+ shareholders before the company’s current round closes on June 26.

Invest in StartEngine

_{Reg A+ via StartEngine Crowdfunding, Inc. No BD/intermediary involved. Investment is speculative, illiquid & high risk. See OC and Risks on page.}

Join the cool kids club 👉 $500 For You

🤝 PARTNER WITH US 🤝

We have exciting partnership opportunities available.

Contact [email protected] to learn how you can support and be featured at our upcoming events.

Until next week,

The Pitch Night Team

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