Friends & Family Capital

Congratulations to Klaviyo as it crosses $1 Billion in annual revenue and joins the software Revenue Unicorns! Let's see what we can learn from Klaviyo's journey...

Congratulations to Confluent as it crosses $1 Billion in annual revenue and joins the software Revenue Unicorns! Let's see what we can learn from Confluent's journey...

𝗔𝗜 𝗜𝘀 𝗥𝗲𝘄𝗿𝗶𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗥𝘂𝗹𝗲𝘀 𝗮𝘁 𝗦𝗵𝗼𝗽𝗶𝗳𝘆, 𝗞𝗹𝗮𝗿𝗻𝗮, 𝗮𝗻𝗱 𝗗𝘂𝗼𝗹𝗶𝗻𝗴𝗼  Generative AI is changing how leading tech companies operate, hire, and grow. Shopify, Klarna, and Duolingo are executing on AI-first strategies with the potential to reshape workforce planning.   𝗧𝗼 𝗰𝗮𝘁𝗰𝗵 𝘆𝗼𝘂 𝘂𝗽 𝗼𝗻 𝘁𝗵𝗲 𝗻𝗲𝘄𝘀: 𝗦̲𝗵̲𝗼̲𝗽̲𝗶̲𝗳̲𝘆̲ • CEO Lutke released a memo saying no new headcount will be approved until proven the work cannot be automated  • The memo asked teams to imagine, “what if AI agents were already here?” • AI utilization will be part of performance reviews   𝗞̲𝗹̲𝗮̲𝗿̲𝗻̲𝗮̲ • CEO Siemiatkowski says generative AI is the reason for reduction its workforce by almost 1,000 in the past year • He claims ChatGPT now covers work once done by 700 employees • Klarna is replacing tools like Salesforce and testing AI-generated leadership content   𝗗̲𝘂̲𝗼̲𝗹̲𝗶̲𝗻̲𝗴̲𝗼̲ • CEO Luis von Ahn announced Duolingo is officially “AI-first”  • No headcount will be approved until proven the work cannot be automated • 10% of contractors offboarded with work reassigned to AI   𝗪𝗵𝗮𝘁’𝘀 𝗗𝗿𝗶𝘃𝗶𝗻𝗴 𝘁𝗵𝗲 𝗦𝗵𝗶𝗳𝘁 A new report from Indeed’s Hiring Lab shows how fast GenAI can shift from hype to execution. U.S. job postings mentioning generative AI have jumped 170% in the past year. The biggest shift? Consulting. Roles in management consulting now make up 12.4% of GenAI-related postings, up from a meager 0.2% a year ago.   This signals a clear demand: companies are not only looking for technical builders but are also hiring for operators who can deploy AI across teams, functions, and processes. Implementation has become the priority.   𝗪𝗵𝗮𝘁’𝘀 𝗡𝗲𝘅𝘁 The AI-first model is taking hold. Companies are rethinking headcount, automating wherever possible, and hiring for AI fluency.   For employees and job seekers, that means: • Mastery of AI tools is now a baseline, not a bonus • Roles focused on implementing and managing AI-especially in consulting-are in high demand • Knowing where humans create value, and where AI should take over, is now core to strategy

𝗙𝘂𝗻 𝗳𝗮𝗰𝘁: talented people know talented people!   A number of our portfolio companies are actively hiring key finance roles, here is an inside look.   Interested or know any great finance & accounting leaders? Share with your network, apply directly, or DM us for more info. #hiring #careers

Need a movie to watch this weekend? Check out "New Space" which features Astranis Space Technologies and SpaceX.   Space offers a fresh frontier and a stage for ongoing innovation in the physical world.   Producer Jason Carman's latest film, "New Space" spotlights modern builders across the space ecosystem and delivers an inside look at how Founders turn fiction into fact.   The film highlights tangible achievements through more than 20 interviews with prominent visionaries.   Audiences see the power and positive ripple effects that lower launch costs and smaller satellite manufacturing have here on Earth. For investors, the space economy represents a multi-billion-dollar opportunity -- from improved connectivity to efficient resource use on Earth.    The film "New Space" captures that momentum without the hype, motivating both space veterans and newcomers to look upward and consider emerging possibilities. Share in the excitement and watch “New Space”.   https://lnkd.in/g5Am54Bq

Taiwan is investing in resilient and dedicated communications infrastructure 22,000 miles above Earth. This week, Taiwan signed a deal with Astranis to launch its first dedicated, secure communications satellite. The goal is simple: Maintain connectivity in the event that terrestrial networks or undersea cables are disrupted. The move follows a pattern of customers investing in space-based infrastructure for both speed and resilience. Astranis specializes in “MicroGEO” satellites -- smaller, lower-cost satellites that can be deployed faster than traditional telecom satellites. Astranis' model is designed for flexibility and security, not just coverage. Congratulations to Astranis Space Technologies as the company continues to push the edge of what’s possible in satellite communications. https://lnkd.in/gqCUdeqY

Key Takeaways from the Q1 2025 Market Conditions Update: • Strong start to the year with healthy deal activity across the board   • Both deal volumes and mark-ups set almost three-year highs   • Global uncertainty increased in March and continued into April   • Continued global uncertainty adds volatility to deal dynamics   • Investor demand remains for strong core business models The Friends & Family Capital Market Conditions Update features metrics that we track internally on companies raising capital at valuations ranging from $1 Billion to $10 Billion. This is one of the assets we review with founders, CEOs, and CFOs in our network as they prepare for their growth rounds. The summary report is available for review below.

Hardware development cycles are dramatically longer than software cycles, creating a critical innovation bottleneck.    While software development cycles are typically measured in days or weeks, hardware testing and optimization can take months or even years. Yet, the technologies that will define our future — from clean energy to space exploration to advanced computing — likely depend on our ability to accelerate hardware innovation.   Enter Arena and its AI hardware engineer, dubbed Atlas, to help tackle this problem. Atlas helps accelerate hardware through advancements in testing, debugging, and optimization for the world's most advanced machinery. Grounded in applied physics and equipped to learn from real-world environments, Atlas operates throughout the hardware stack, starting with electrical engineering.   Arena announced its $30 Million Series B to accelerate the development of Atlas and continue its mission to transform how we build and test hardware.   𝗧𝗼 𝗖𝗮𝘁𝗰𝗵 𝗬𝗼𝘂 𝗨𝗽 𝗼𝗻 𝘁𝗵𝗲 𝗡𝗲𝘄𝘀: • Arena raised $30 Million in Series B funding • The company officially launched Atlas, an AI system that significantly accelerates hardware testing and optimization • Arena operates in sectors including aerospace, automotive, semiconductors, medical devices, defense, and robotics Atlas combines the power of large language models with specialization built for applied physics and fine-tuned in Arena's hardware lab. It can make sense of multimodal data beyond standard text and video — such as power curves, thermal profiles, and streaming HD video — to build a more complete understanding of how complex instruments behave.   𝗪𝗵𝗮𝘁'𝘀 𝗡𝗲𝘅𝘁: Arena will use the new capital to expand the team, enhance Atlas's capabilities, and scale deployment across industries where hardware innovation is critical.   Congratulations to Pratap Ranade and the entire Arena team! Excited to partner on the journey. 𝘙𝘦𝘢𝘥 𝘮𝘰𝘳𝘦 𝘪𝘯 SiliconANGLE & theCUBE 𝘩𝘦𝘳𝘦: https://lnkd.in/ejWXBbUd 𝘝𝘪𝘥𝘦𝘰 𝘤𝘰𝘶𝘳𝘵𝘦𝘴𝘺 𝘰𝘧 𝘈𝘳𝘦𝘯𝘢.

The U.S.-Mexico border is one of the busiest freight corridors in the world. Trade between the two countries crossed $800 Billion last year.   Yet the cross-border trucking that helps support this trade remains highly manual, inefficient, and difficult to scale — especially on the southern side of the border where investment in digitization is still in the early innings.    With many trade partnerships being evaluated, Mexico may be positioned to benefit as volatility enters global trade with markets like Asia and Europe. Such gains would further emphasize the need for more efficient cross-border freight with the U.S.   Cargado recently announced a $12 Million Series A to help address the need and modernize this trade corridor. The new capital will help bring efficiency to one of North America's most complex supply chain challenges — cross-border freight with Mexico.   𝗧𝗼 𝗖𝗮𝘁𝗰𝗵 𝗬𝗼𝘂 𝗨𝗽 𝗼𝗻 𝘁𝗵𝗲 𝗡𝗲𝘄𝘀: • Cargado closed a $12 Million Series A fundraise to improve cross-border freight  • The platform connects shippers, freight forwarders, and carriers across the U.S.-Mexico border • The platform already power tens of thousands of loads with strong traction and repeat usage   Cargado tackles this challenge with a tech-enabled marketplace that offers real-time pricing, carrier connectivity, and operational support in both the U.S. and Mexican markets. The platform reduces delays, uncertainty, and costs while providing shippers and brokers with increased confidence to operate in Mexico.    𝗪𝗵𝗮𝘁’𝘀 𝗡𝗲𝘅𝘁: Cargado plans to grow its engineering team, expand product offerings, and deepen partnerships with shippers and logistics providers as it builds the go-to infrastructure layer for U.S.-Mexico freight.   Congratulations to Matt Silver and the Cargado team! Excited to partner on this journey. 𝘐𝘮𝘢𝘨𝘦𝘴 𝘤𝘰𝘶𝘳𝘵𝘦𝘴𝘺 𝘰𝘧 𝘕𝘢𝘵𝘪𝘰𝘯𝘢𝘭 𝘙𝘦𝘷𝘪𝘦𝘸 & 𝘍𝘳𝘦𝘪𝘨𝘩𝘵𝘞𝘢𝘷𝘦𝘴

𝗙𝘂𝗻 𝗳𝗮𝗰𝘁: talented people know talented people! A number of our portfolio companies are actively hiring key finance roles, here is an inside look. Interested or know any great finance & accounting leaders? Share with your network, apply directly, or DM us for more info. #hiring #careers