Top Startup and Tech Funding News – January 5, 2025
Nickie Louise
Posted On January 5, 2026
Happy New Year! It’s Monday, January 5, 2026, and we’re back with today’s top startup and tech funding news spanning utility software, eSIM connectivity, AI-powered industrial systems, and next-gen semiconductors. From billion-dollar spinouts to stealth-mode optical chipmakers, today’s deals highlight a global appetite for infrastructure-grade innovation across energy, AI compute, and digital health.
Kraken led the day with a $1 billion funding round to scale its AI-powered platform for utilities after spinning out from Octopus Energy. Airalo followed closely, raising $220 million to expand its borderless eSIM marketplace for travelers and enterprise clients. In materials and defense, Cambium’s $100 million Series B marks a major bet on AI-designed polymers for next-gen aerospace applications. Meanwhile, Lucidean and Azimuth AI are advancing the hardware frontier with breakthroughs in optical transceivers and edge AI silicon.
Today’s activity underscores a shift toward systems-level bets—where software, silicon, and sensors converge to power the next generation of resilient infrastructure, industrial automation, and AI-native operations.
Tech Funding News
Funding Highlights
- Kraken raised $1B to scale its AI utility software as a spinout from Octopus Energy.
- Airalo secured $220M to expand its global eSIM connectivity platform.
- Cambium closed $100M Series B for advanced materials in aerospace and defense.
- I-care raised €20M to reach unicorn status with its predictive maintenance platform.
- Knight FinTech raised $23.6M Series A to scale AI-driven lending infrastructure.
- Lucidean emerged with $18M seed to build ultra-fast optical links for AI data centers.
- Zed secured $16.5M Series A to offer inclusive credit cards for young professionals.
- Leona Health raised a $14M seed round to automate healthcare via a WhatsApp AI copilot.
- Azimuth AI raised an undisclosed round for edge AI chips in industrial infrastructure.
- Daisy Genomics raised $2.5M in seed funding to accelerate DNA and RNA sequencing.
Investor Activity
Today’s funding rounds attracted heavyweight venture firms, strategic investors in defense and infrastructure, and health-focused angels backing AI-native solutions across frontier markets. As 2026 kicks off, investor attention is firmly trained on platforms modernizing real-world systems—from national grids to clinical workflows and global telecoms.
Here’s the full breakdown of January 5’s most significant startup and tech fundings.
Kraken raises $1B in funding to scale its AI utility platform globally
London and New York-based Kraken has spun out from Octopus Energy with a massive $1 billion funding round to establish itself as an independent utility software platform. Kraken’s AI-driven system already manages over 70 million energy customer accounts, and the fresh capital vaults the startup’s valuation to $8.65 billion, underscoring its rapid ascent into tech “unicorn” territory. The raise, one of the largest in energy software, positions Kraken to aggressively expand its licensing of its cloud-based platform to utilities worldwide, transforming how power companies manage grids and customer services.
Behind Kraken’s blockbuster round is a decisive vote of confidence from top institutional investors. D1 Capital Partners led the financing, with major backers including Ontario Teachers’ Pension Plan, Fidelity International, and Durable Capital Partners. The funding will help Kraken accelerate global deployments of its platform and invest in further AI capabilities for utility operations. With its parent, Octopus Energy, retaining a minority stake, Kraken now has the autonomy and resources to pursue new utility clients across Europe, Asia, and the Americas, aiming to modernize a traditionally slow-moving sector through advanced software and data-driven efficiency.
Startup: Kraken (Utility software spin-out, London/NYC)
Investors: D1 Capital Partners (lead); Ontario Teachers’ Pension Plan; Fidelity International; Durable Capital; Octopus Capital (strategic)
Amount Raised: $1 billion
Total Raised: $1 billion
Funding Stage: Growth / Spin-out round
Funding Date: January 5, 2026
Lyte emerges from stealth with $107M in funding to power perception systems for autonomous machines
Mountain View-based Lyte has exited stealth with $107 million in aggregate funding to develop integrated perception systems for next-generation autonomous machines. The company’s platform, LyteVision, fuses 4D sensing, RGB imaging, and motion awareness into a single interface, enabling physical AI systems—from robotic arms to humanoids—to perceive and operate more safely and intelligently in dynamic real-world environments.
Founded by veterans behind Apple’s depth-sensing technologies, including PrimeSense co-founder Alexander Shpunt, Lyte is building a hardware-software stack tailored for autonomy at scale. The company has quietly recruited a deep bench of talent in sensing, silicon, and systems AI, aiming to become the backbone of machine perception across robotics sectors. The funding will support the productization of LyteVision and commercialization efforts across industrial, logistics, and mobility applications.
Startup: Lyte (Integrated perception for robotics, Mountain View, CA)
Investors: Fidelity Management & Research; Atreides Management; Exor Ventures; Key1 Capital; Venture Tech Alliance; Avigdor Willenz group
Amount Raised: $107 million
Total Raised: $107 million
Funding Stage: Aggregate (Seed through Series A)
Funding Date: January 5, 2026 (Stealth exit)
Cambium secures $100M in Series B funding for advanced materials in aerospace and defense
California-based Cambium has closed a $100 million Series B funding round to accelerate the development of its advanced materials platform for aerospace, defense, and other high-performance industries. Cambium uses AI-driven chemical informatics and high-performance computing to design novel polymers and composites with superior properties. The startup has vertically integrated manufacturing – recently acquiring a qualified aerospace materials plant – enabling rapid prototyping and scale-up of its new materials. This sizable Series B will support Cambium in expanding its product pipeline and U.S. and European production capacity, helping defense contractors, aircraft makers, and energy companies replace legacy materials with lighter, stronger alternatives.
The round was led by 8VC, with strategic participation from Lockheed Martin Ventures and a broad syndicate of investors including MVP Ventures, Veteran Ventures Capital, and Alumni Ventures. Cambium’s ability to attract a top defense contractor’s venture arm signals the critical role of materials innovation in national security and energy infrastructure. Founded by CEO Simon Waddington, Cambium has now raised approximately $119 million to date. The company’s proprietary “CohZero” technology dramatically accelerates development cycles for new monomers and polymers, enabling breakthroughs such as faster aircraft with improved fuel efficiency and more resilient energy systems. With fresh capital and industry partnerships, Cambium is positioned to lead in the materials science renaissance underpinning the next generation of aerospace and defense capabilities.
Startup: Cambium Biomaterials (Advanced materials R&D, El Segundo, CA)
Investors: 8VC (lead); Lockheed Martin Ventures; MVP Ventures; Veteran Ventures; Alumni Ventures; Gaingels; others
Amount Raised: $100 million
Total Raised: ~$119 million
Funding Stage: Series B
Funding Date: January 5, 2026
I-care raises €20M in funding to expand predictive maintenance platform, hits unicorn status
Belgian industrial tech startup I-care has raised €20 million in a new funding round, pushing its valuation above €1 billion and officially making it a unicorn. Mons-based I-care provides AI-powered predictive maintenance solutions for industrial machinery, using IoT sensors (like its proprietary Wi-care™ vibration monitors) and an AI analytics platform (I-see™) to predict equipment failures months in advance. By aggregating data across hundreds of thousands of machines, I-care helps clients in manufacturing, energy, and other sectors reduce downtime and maintenance costs. The fresh funding – raised from existing shareholders and employees – will support I-care’s growth as it prepares for international expansion and a potential IPO (following a prior pause).
Led by CEO Fabrice Brion, I-care has grown from a 2004 startup into a global leader in predictive maintenance, with over 1,000 employees and operations in 16 countries. The decision to fund internally underscores insiders’ confidence in the company’s trajectory and market position. With this round, Total external funding stands at €20 million, while the company’s valuation now tops €1 billion. I-care plans to accelerate product development and scale its market reach, capitalizing on strong demand as industries worldwide embrace predictive analytics to extend the life of critical infrastructure. The unicorn milestone – a rare feat for a Belgian tech company – highlights I-care’s two-decade journey and its authority in merging AI with industrial reliability.
Startup: I-care (Industrial predictive maintenance, Mons, Belgium)
Investors: Existing shareholders and employees (internal round)
Amount Raised: €20 million (approx. $22 million)
Total Raised: €20 million (valuation > €1 billion)
Funding Stage: Late-stage (Pre-IPO)
Funding Date: January 5, 2026
Knight FinTech lands $23.6M Series A funding to scale its AI-driven lending platform
Mumbai-based Knight FinTech has secured $23.6 million in Series A funding to expand its lending and treasury management platforms for banks and non-bank lenders. Knight FinTech offers an AI-enabled co-lending and treasury solution that helps financial institutions collaborate on loans and manage liquidity more efficiently. By leveraging machine learning for credit scoring and automating treasury operations, Knight enables its clients to extend credit to underserved segments and optimize their balance sheets. The new capital will fuel Knight’s expansion beyond India into the Middle East and Asia-Pacific, and support the development of additional AI-driven product features. The company has also brought on former Infosys Finacle CEO Sanat Rao as an investor and board advisor to spearhead global growth.
Accel led the round, signaling high conviction after the startup’s early traction. Existing backers Commerce Ventures, Trifecta Capital, Prime Venture Partners, and 3one4 Capital all returned for the Series A, joined by new investors Rocketship.vc and IIFL Finance. Knight FinTech, founded in 2019 by Kushal Rastogi and Parthesh Shah, now has roughly $30 million in total funding. The fintech’s platforms already manage over $5 billion in assets under management, and it counts major Indian financial institutions such as CanFin Homes and IDBI Bank among its recent clients. With this funding, Knight aims to accelerate its AI product roadmap and deepen its role in modernizing credit infrastructure – an area of mounting importance as lenders seek to expand credit access while managing risk through technology.
Startup: Knight FinTech (Lending & treasury platform, Mumbai, India)
Investors: Accel (lead); Commerce VC; Trifecta Capital; Prime Venture Partners; 3one4 Capital; Rocketship.vc; IIFL Finance
Amount Raised: $23.6 million
Total Raised: ~$30 million
Funding Stage: Series A
Funding Date: January 5, 2026
Lucidean raises $18M in Seed funding to build ultra-fast optical links for AI data centers
Deep tech startup Lucidean has emerged from stealth in Santa Barbara, California, with an $18 million in seed financing to revolutionize data center connectivity. Lucidean is developing next-generation coherent optical transceiver technology capable of moving data at unprecedented speeds (targeting 3.2 Tbps and beyond) to meet the bandwidth demands of AI and machine learning workloads. Uniquely, Lucidean’s patented “CohZero” architecture delivers the performance of coherent fiber optics while remaining compatible with standard data center hardware and inexpensive lasers – a breakthrough that could vastly improve the efficiency of interconnects inside cloud and AI infrastructure. The seed funding will allow Lucidean to intensify R&D, validate its prototype transceivers, and accelerate productization with early industry partners.
The round was co-led by Entrada Ventures and Koch Disruptive Technologies (the venture arm of Koch Industries), signaling both financial and strategic support. Other participants include Foothill Ventures, M Ventures (Merck’s VC arm), Cerberus Ventures, and Raptor Group. It’s a heavyweight roster for a seed round, reflecting the critical need for new networking solutions as AI data centers push current fiber optics to their limits. Lucidean’s founding team includes optical PhDs from academia and industry; under newly appointed CEO Dr. James Raring, they aim to retrofit today’s data centers with coherent-class links that plug into standard servers and switches. With $18 million in hand, Lucidean is poised to help unlock faster, more power-efficient AI superclusters – an essential step in the evolution of cloud computing.
Startup: Lucidean (Coherent optics for data centers, Santa Barbara, CA)
Investors: Entrada Ventures (co-lead); Koch Disruptive Technologies (co-lead); Foothill Ventures; M Ventures; Cerberus Ventures; Raptor Group
Amount Raised: $18 million
Total Raised: $18 million
Funding Stage: Seed round
Funding Date: January 5, 2026
Zed secures $16.5M in Series A funding to expand credit access for young professionals in Asia
Zed, a fintech startup aiming to reinvent credit cards for the under-30 demographic in Asia, has raised $16.5 million in Series A funding. Founded by husband-and-wife entrepreneurs Steve and Danielle Abraham, Zed targets the vast population of young professionals in markets such as the Philippines who are largely excluded from traditional credit. The startup spent three years obtaining a bank license and has developed a “modern” credit card product tailored for first-time credit users, offering features such as zero foreign exchange fees, single-use virtual cards for security, and a Venmo-like peer-to-peer payment experience with flexible settlement. Zed’s secret sauce is its AI-powered underwriting: using foundational models, it analyzes alternative data (income flows, spending patterns, etc.) to assess creditworthiness beyond conventional credit scores. With this fresh capital, Zed plans to grow beyond its initial base in the Philippines to other APAC markets such as Vietnam, Indonesia, and India, ultimately with an eye on global expansion.
Accel led the Series A round, marking the Silicon Valley firm’s second major fintech bet in Asia this week (Accel also backed Knight FinTech’s round). The funding brings Zed’s total raised to $22.5 million to date. Other investors in the round include General Catalyst and several prominent angels, underscoring confidence in Zed’s inclusive credit model. Currently in an invite-only launch, Zed has nearly 200,000 people on its waitlist, driven entirely by word of mouth – evidence of pent-up demand for credit among young, cash-reliant earners. By leveraging AI to unlock this opportunity, Zed is positioned to become a leading financial services platform for the next generation of consumers across Asia’s fastest-growing economies.
Startup: Zed (Digital credit cards for young adults, Manila/San Francisco)
Investors: Accel (lead); General Catalyst; Kunal Shah and other angel investors
Amount Raised: $16.5 million
Total Raised: $22.5 million
Funding Stage: Series A
Funding Date: January 5, 2026
Leona Health lands $14M in Seed funding to automate healthcare via WhatsApp AI copilot
Leona Health, a healthtech startup building an AI “copilot” for doctors on WhatsApp, has raised $14 million in seed funding to streamline clinical workflows across Latin America. Founded by Caroline Merin, Leona Health integrates with WhatsApp – the ubiquitous messaging app – to help physicians manage patient communications and administrative tasks through automation. Leona’s AI can triage incoming patient messages, suggest personalized responses, schedule appointments, and coordinate follow-ups, all within a simple mobile interface that doctors already use. After launching its platform in 2024, Leona has grown to serve medical professionals in 14 countries and 22 specialties. The new seed funding will support the startup’s international growth and further development of its AI, as Leona aims to become a core infrastructure for digital healthcare delivery in emerging markets.
The round was led by top-tier Silicon Valley firm Andreessen Horowitz (a16z) – a notable endorsement at the seed stage – with participation from General Catalyst and Accel. Also joining were several prominent health and fintech founders as angel investors, including Kate Ryder (founder of Maven Clinic), David Vélez (founder of Nubank), and Simón Borrero (founder of Rappi). The caliber of investors reflects Leona’s promising approach of meeting clinicians where they are (on WhatsApp) to alleviate administrative burdens. With $14 million now raised (its total funding to date), Leona is poised to deepen its AI capabilities – moving beyond basic chatbots to truly assist physicians – and to scale its reach among the millions of doctors who rely on smartphones as their primary practice tool. By injecting automation into everyday messaging, Leona Health is on track to improve efficiency and patient care coordination throughout Latin America’s healthcare systems.
Startup: Leona Health (AI health assistant on WhatsApp, operating in Latin America)
Investors: Andreessen Horowitz (lead); General Catalyst; Accel; Notable angels (Kate Ryder, David Vélez, Simón Borrero, among others)
Amount Raised: $14 million
Total Raised: $14 million
Funding Stage: Seed round
Funding Date: January 5, 2026
Azimuth AI closes new fundingto build edge AI chips for smart infrastructure
Azimuth AI, a semiconductor startup with bases in California and India, announced it has closed an undisclosed funding round to advance its custom AI chips for smart utilities and industrial infrastructure. The Sacramento- and Hyderabad-based company is developing application-specific system-on-chips (SoCs) that bring advanced AI processing to the edge of power grids, energy systems, and factories. Azimuth’s flagship chip, the ARKA-GKT1, was unveiled in late 2025 and is designed to handle tasks such as grid monitoring, predictive maintenance, and on-site real-time analytics, reducing reliance on cloud connectivity. With this financing, Azimuth plans to complete qualification testing of ARKA-GKT1 and ramp up toward production by late 2026, while also continuing R&D on next-generation edge AI processors. By tailoring its silicon to industrial needs, Azimuth aims to improve reliability and efficiency for critical infrastructure in both developed and emerging markets.
The funding was led by Jetha Global, a cross-border venture firm, with participation from existing backers Moneta Ventures and AUM Ventures, as well as other new investors. Though the exact amount wasn’t disclosed, the round signals strong investor interest in Azimuth’s niche: bridging Silicon Valley chip expertise with India’s growing energy and innovative city initiatives. The startup is led by founder & CEO Praveen Yasarapu and co-founder Sridevi Badiga, and leverages engineering talent across the U.S. and India. Azimuth’s progress comes at a time when geopolitics and supply chain concerns are driving investment in semiconductor capabilities beyond traditional hubs. By focusing on edge AI applications in sectors such as utilities and industrial IoT, Azimuth AI is carving out a strategic position in the global chip industry, backed by capital to deliver its first commercial products.
Startup: Azimuth AI (Edge AI semiconductor developer, Sacramento & Hyderabad)
Investors: Jetha Global (lead); Moneta Ventures; AUM Ventures; and other undisclosed investors
Amount Raised: Undisclosed
Total Raised: Not disclosed
Funding Stage: Venture round
Funding Date: January 5, 2026
Daisy Genomics raises $2.5M seed to advance faster DNA sequencing technology
Daisy Genomics, an Albuquerque-based biotech startup, has raised $2.5 million in seed funding to scale up its novel DNA/RNA sequencing platform. Spun out of research at the University of New Mexico, Daisy Genomics (formerly known as Armonica Technologies) is developing a new genome sequencing method that uses proprietary spectroscopy and microchip technology to read genetic information faster and more completely than traditional sequencers. The company’s approach aims to eliminate the lengthy sample prep and incomplete data issues of current sequencing, potentially enabling more detailed genomic insights for precision medicine – from targeted cancer therapies to early detection of disease markers based on DNA and epigenetic signals. With the seed funding, Daisy plans to refine its prototypes, enhance the specialized chips at the heart of its platform, and gear up for pilot deployments.
The investment was led by two New Mexico-focused venture firms, Cottonwood Technology Fund and Tramway Venture Partners, reflecting the local ecosystem’s support for keeping the innovation in-state. Daisy’s CEO, Emily Milsovic, emphasized that, unlike many biotech startups that relocate to major hubs, Daisy Genomics intends to grow in Albuquerque, leveraging the region’s research talent and aiming to contribute to a budding biotech cluster in New Mexico. $2.5 million is the company’s total funding to date, and these resources will be used to advance the technology toward commercial readiness and to forge partnerships with larger diagnostics companies and research institutions. Daisy Genomics exemplifies how regional innovation – backed by local capital and university R&D – can drive breakthroughs in healthcare. If successful, its faster sequencing platform could lower barriers in genomic testing and unlock richer data for personalizing medicine.
Startup: Daisy Genomics (Next-gen sequencing technology, Albuquerque, NM)
Investors: Cottonwood Technology Fund (lead); Tramway Venture Partners
Amount Raised: $2.5 million
Total Raised: $2.5 million
Funding Stage: Seed round
Funding Date: January 5, 2026
Tech Funding Summary
| Startup | Investors (Lead & Notable) | Amount Raised | Total Raised | Funding Stage | Funding Date |
|---|---|---|---|---|---|
| Kraken (Utility software platform) | D1 Capital (lead); Ontario Teachers’, Fidelity, Durable Capital | $1 billion | $1 billion | Spin-out Growth | Jan 5, 2026 |
| Airalo (eSIM connectivity) | CVC Capital Partners (lead); Peak XV, Antler Elevate | $220 million | ~$285 million | Growth Round | Jan 5, 2026 |
| Cambium (Advanced materials) | 8VC (lead); Lockheed Martin Ventures, MVP Ventures, others | $100 million | ~$119 million | Series B | Jan 5, 2026 |
| I-care (Predictive maintenance) | Internal (Founders/Employees) | €20 million | €20 million (valued €1B+) | Late-stage (Pre-IPO) | Jan 5, 2026 |
| Knight FinTech (Lending platform) | Accel (lead); Prime Venture Ptnrs, 3one4, Trifecta, IIFL | $23.6 million | ~$30 million | Series A | Jan 5, 2026 |
| Lucidean (Data center optics) | Entrada & Koch Disruptive (co-leads); Foothill, M Ventures | $18 million | $18 million | Seed | Jan 5, 2026 |
| Zed (Fintech credit cards) | Accel (lead); General Catalyst; angels (Kunal Shah, etc.) | $16.5 million | $22.5 million | Series A | Jan 5, 2026 |
| Leona Health (Healthcare AI) | Andreessen Horowitz (lead); General Catalyst, Accel, angels | $14 million | $14 million | Seed | Jan 5, 2026 |
| Azimuth AI (Edge AI chips) | Jetha Global (lead); Moneta Ventures, AUM Ventures | Undisclosed | Not disclosed | Venture Round | Jan 5, 2026 |
| Daisy Genomics (Sequencing tech) | Cottonwood Tech Fund (lead); Tramway Ventures | $2.5 million | $2.5 million | Seed | Jan 5, 2026 |
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