March VC Snapshot: AI Mega-Rounds, Crypto's Revival, and Global Hotspots Heating Up!
PLUS: Our Analysis of Lepton AI (Featured in December 2023), Which Is in Acquisition Talks with Nvidia
This week, the Geeks of the Valley podcast released Episode #110 featuring Bam Azizi, CEO of Mesh, a pioneer in next-generation stablecoin infrastructure. Mesh recently closed an $82M Series B - settled entirely in stablecoins - marking one of the first major ventures to do so. Tune in!
We first met Bam Azizi through Stella Capital, where Aizuddin and Kunal connected with him in the early days of his journey building Mesh. Back then, his company was still known as Front, and even then, it was clear he was onto something groundbreaking. Fast forward to today, Bam has made history, securing an $82M Series B - settled mostly in PayPal USD ($PYUSD).
As CEO and Co-Founder of Mesh, Bam is reshaping how businesses and users interact with crypto and stablecoins, integrating with 300+ exchanges, wallets, and financial institutions. Before Mesh, he co-founded NoPassword, which was later acquired by LogMeIn, and built a career in AI, cybersecurity, and fintech infrastructure. With a PhD from the Technical University of Munich and research experience at Johns Hopkins, Bam blends deep technical expertise with visionary entrepreneurship, making him a true innovator in the space.
Venture Radar
Lepton AI’s Journey: From Server Rentals to a Potential Nvidia Acquisition
We’re excited to share a major update on one of our previously featured companies, Lepton AI (featured on December 2023). The Palo Alto-based AI infrastructure startup is reportedly in acquisition talks with Nvidia, with a potential deal valued in the hundreds of millions. This move highlights Lepton AI’s rapid ascent in the AI infrastructure space, an area becoming increasingly crucial as the demand for AI-driven applications skyrockets.
A High-Performance AI Infrastructure Solution
Founded in 2023, Lepton AI offers a cloud-native platform designed to simplify AI inference, training, and development. The company focuses on high-performance and scalable AI infrastructure, allowing enterprises to efficiently deploy AI models at scale. The platform supports various hardware accelerators, including GPUs and TPUs, with auto-scaling capabilities that enable seamless handling of large-scale AI workloads. Lepton’s enterprise-grade reliability ensures high availability, real-time health checks, and optimized compute performance - crucial for AI-intensive applications.
Why Nvidia Might Be Interested
Nvidia’s reported acquisition interest reflects its broader strategy to strengthen its AI computing ecosystem. While Nvidia dominates the GPU market, it has also been expanding aggressively into AI software and infrastructure solutions. Acquiring Lepton AI could further enhance Nvidia’s cloud-based AI offerings, making it easier for developers to build, deploy, and scale AI models using Nvidia-powered infrastructure.
Moreover, Lepton AI’s commitment to security and compliance makes it an attractive asset. The platform adheres to SOC2 and HIPAA standards, ensuring enterprise-level security with features like role-based access control (RBAC), quotas, and audit logs. These capabilities position Lepton as a compelling solution for industries such as finance and healthcare, where data protection and regulatory compliance are paramount.
The Bigger Picture: AI Infrastructure as a Strategic Battleground
The reported acquisition aligns with Nvidia’s broader ambitions to dominate the AI cloud and infrastructure landscape, competing with players like Google (TensorFlow) and Meta (PyTorch). As AI adoption accelerates, companies that simplify model deployment and scaling will play a critical role in driving the next phase of AI innovation.
Lepton AI’s emergence as a potential acquisition target for Nvidia underscores just how pivotal AI infrastructure startups have become in shaping the future of AI development and deployment.
Geeks of the Week
Startup Name: Baton AI
Geography: US
One-liner: Product configuration copilot for pre- and post-sales teams.
Founder(s) Background: Co-founder of Unearth AI (acquired).
Thoughts:
Leveraging advanced AI capabilities, Baton AI extracts customer-specific context from sources like meeting notes, emails, and documentation. It then uses this data to create personalized demo environments that are ready for use, significantly reducing the time spent on manual configuration. This accelerates sales cycles, enhances customer adoption, and reduces friction during complex software implementations - critical factors for businesses aiming to shorten their time-to-value.
The ability to deliver a seamless, hands-on product experience early in the sales process has proven to drive higher customer engagement and long-term retention. By automating repetitive tasks and streamlining the onboarding experience, Baton AI allows enterprises to focus on building relationships rather than managing configurations. This is especially impactful in enterprise sales, where complex software setups can be a barrier to rapid adoption.
As enterprises increasingly prioritize automation, efficiency, and scalability,
Baton AI’s platform directly addresses the growing demand for solutions that eliminate manual processes and accelerate product adoption at scale. With the pressure to enhance productivity and streamline operations, Baton AI's AI-driven automation is part of a broader industry trend toward efficiency and innovation in enterprise software adoption.
In an era where time-to-value is a key differentiator, Baton AI’s ability to reduce onboarding times and enhance customer experiences positions it as a critical tool for modern enterprises seeking to scale efficiently. By shifting from manual, resource-intensive implementations to automated, personalized deployments, Baton AI is setting a new standard in sales and implementation efficiency.
Founder(s) building in stealth
VP of Growth at EverCommerce (IPO-ed) / Co-founder at Joist (acquired by EverCommerce).
Lead Staff AI/ML Engineer at Tessian (acquired by Proofpoint).
Deals of the Week
Venture funding activity remained robust over the past month, marked by several mega-rounds across sectors. Notably, US startups dominated the largest raises, reflecting a resurgence of capital in American tech. Key funding highlights include:
Nerdio – an IT automation platform – raised a $500M equity round led by General Atlantic at a $1.2B valuation. The Chicago-based company, though relatively under-the-radar, is profitable with 15,000+ customers, and its ARR is growing ~85% YoY.
Fleetio – fleet management software – secured $450M co-led by Elephant and Goldman Sachs’ growth arm. This financing will fund Fleetio’s acquisition of Auto Integrate and values the Alabama company at >$1.5B . Fleetio’s platform will now service 8M+ vehicles and 13M+ repair orders annually.
Mercury – a fintech banking startup – landed $300M (Series C) led by Sequoia Capital The round (mix of primary and secondary funding) doubled Mercury’s valuation to $3.5B. Founded in 2017, Mercury offers bank accounts with integrated financial tools for startups and has now raised $452M total.
Island – an enterprise cybersecurity browser – closed $250M (Series E) at a $4.8B valuation led by Coatue . This Dallas-based startup’s valuation jumped ~60% since its last round in 2024.
Anthropic – AI research startup – received a $3.5B investment this month led by Lightspeed Ventures, valuing it at a staggering $61.5B. This massive round makes Anthropic one of the world’s most valuable AI companies, second only to OpenAI. (OpenAI itself is reportedly nearing a $40B funding deal with SoftBank).
These companies encapsulate a shift in venture capital—from chasing raw scale to betting on sustainable, strategically integrated growth. For instance, Nerdio’s focus on profitability and strong ARR growth underscores that disciplined, efficient operations are increasingly rewarded. Fleetio’s mega-round, aimed at bolstering acquisitions and broadening its service scope, reflects a move toward consolidating fragmented industries. Mercury’s impressive Series C shows that fintech is maturing into a fully integrated financial platform, while Island’s cybersecurity round signals that digital safety is becoming a non-negotiable business priority. Most strikingly, Anthropic’s staggering valuation highlights AI's potential to redefine entire markets.
Notable Mergers and Acquisitions
One of the most unexpected deals this year came from Elon Musk, who announced a $33 billion all-stock merger between his AI startup xAI and X (formerly Twitter). The transaction values xAI at $80 billion and aims to integrate advanced AI into X’s massive social network, potentially transforming it into a more intelligent, AI-driven “everything app.” This move consolidates Musk’s ventures and instantly makes xAI one of the world’s most valuable AI companies - second only to OpenAI. More broadly, it signals how AI is becoming central to the evolution of social media.
In fintech, Indian unicorn Perfios acquired AI-powered debt collection platform CreditNirvana, strengthening its capabilities in digital lending and automation. This reflects a larger trend of fintechs integrating AI to enhance their financial services. Meanwhile, in B2B SaaS, fleet management software startup Fleetio raised $450M - not just for growth but specifically to acquire Auto Integrate, a vehicle maintenance platform. This is a prime example of a venture-backed startup using fresh capital to expand through strategic M&A.
The Exit Market is Heating Up
The surge in acquisitions is reviving investor confidence and providing much-needed liquidity for VCs and founders. Big Tech is aggressively investing in AI and security, fintech companies are consolidating capabilities - particularly in emerging markets - and crypto firms are merging as regulations stabilize. The numbers reflect this momentum: over $54.5 billion in startup acquisitions closed in Q1 2025, a massive leap from just $5 billion in Q1 2024. After years of a sluggish exit market, this M&A revival signals that the venture ecosystem is regaining strength heading into the rest of 2025.
This edition is brought to you in partnership with Stella Capital.