Hello,

The AI gold rush is creating an unexpected casualty: yesterday's unicorns. More than 220 US startups that once enjoyed billion-dollar valuations have slipped into "fallen unicorn" territory, according to PitchBook, as investors shift their attention, and capital, to AI-native companies.

For many startups built before ChatGPT, raising fresh funding now requires more than a big valuation; it requires strong growth, profitability, or a compelling AI story.

At the same time, Nvidia is pushing AI deeper into everyday computing. The chipmaker has unveiled its RTX Spark PC chip, bringing advanced AI capabilities directly to laptops and desktops. CEO Jensen Huang said the launch is part of a multi-year effort with Microsoft to reinvent the personal computer for the AI era.

Europe, meanwhile, is trying to reduce its dependence on US tech giants. The European Commission is expected to propose strict eligibility rules for cloud providers bidding for highly sensitive government projects, a move that could make it harder for Amazon, Microsoft, and Google to participate.

The proposal forms part of the bloc's broader Cloud and AI Development Act aimed at strengthening Europe's technological sovereignty.

In today's newsletter, we will talk about

• Anabio to launch flushable pads
• Anveshan bags Rs 150 Cr funding

Here's your trivia for today: Who is the only tennis player to complete a Calendar-Year Golden Slam?

Story

After eight years of research, thousands of product iterations, and a devastating lab fire, deeptech startup Anabio Tech is ready to launch what it claims is India's first flushable sanitary pad. Built from plant-based biodegradable materials, the product aims to tackle one of the menstrual hygiene industry's biggest unsolved challenges: disposal.

Sustainable hygiene:

• Founder Mithun Shah left a senior corporate role in the US, moved to Bengaluru, and spent nearly a decade developing a flushable sanitary pad from the ground up.
• Anabio Tech engineered every layer of the pad using plant-based biodegradable materials, filed two patents, and tested the product across hundreds of toilet configurations and 500+ pin codes.
• While the industry has focused on comfort and accessibility, Anabio Tech is targeting menstrual waste. Consumer studies involving over 2,000 users found that 81% were willing to switch to a flushable alternative.

Funding

Anveshan bags Rs 150 Cr funding

Clean-label food brand Anveshan has raised Rs 150 crore in a Series B round led by Vertex Ventures Southeast Asia & India as it looks to scale manufacturing, expand distribution, and capitalise on rising consumer demand for minimally processed and transparent food products.

Key takeaways:

• The funding round was led by Vertex Ventures and included IFC, Swiggy co-founder Sriharsha Majety, and existing investors such as Wipro Consumer Care Ventures, Titan Capital Winners Fund, and boAt founders Aman Gupta and Sameer Mehta.
• Anveshan plans to invest in manufacturing, product innovation, sourcing infrastructure, quality testing, and partnerships with micro-entrepreneurs and traditional producers.
• Founded in 2020, the company sells products such as A2 bilona ghee, cold-pressed oils, and raw honey. It is currently operating at an annualised revenue run rate of Rs 280-300 crore and aims to cross Rs 1,000 crore in the next 24-30 months.