Top Startup and Tech Funding News – February 23, 2025

It’s Monday, February 23, 2026, and we’re back with today’s top startup and tech funding news. Today’s rounds highlight continued investor momentum behind AI automation, quantum networking, enterprise observability, and vertical software platforms modernizing legacy industries. From financial infrastructure and private credit tooling to pediatric care and industrial maintenance, capital is flowing into startups building practical systems that streamline complex workflows and unlock operational efficiency.

Notably, mid-stage financings remain active across AI infrastructure and enterprise software, while early-stage investors continue to back specialized platforms targeting large but underserved markets. Healthcare compliance, property tax automation, and next-generation security architectures are also drawing attention as founders apply AI and physics-based approaches to long-standing bottlenecks. Together, today’s deals reflect a market that is prioritizing applied intelligence and measurable productivity gains over speculative bets.

Tech Funding News

Funding Highlights

• Pepper raises $50M Series C to modernize food distributor operations
• Selector raises $32M Series C for AI observability platform
• Ownwell raises $30M Series B to automate property tax appeals
• Stacks raises $23M Series A for enterprise finance automation
• Flinn.ai raises $20M Series A for AI medtech compliance platform
• Aliro raises $15M Seed for physics-based network security
• Hypercore raises $13.5M Series A for private credit AI platform
• Coral Care raises $13M Series A for in-home pediatric therapy
• Elevāt raises $12M Series A for industrial repair intelligence
• Giant raises $8M Seed to build storytelling platform for kids

Investor Activity

Today’s funding activity shows continued conviction from both venture firms and strategic investors backing applied AI and infrastructure-layer software. Lightspeed, Insight Partners, HV Capital, and Lead Edge Capital were active across enterprise automation, fintech infrastructure, and observability platforms. Meanwhile, corporate and sector-focused investors, including Cisco Investments and Intuit Ventures, targeted security and financial workflow modernization. Across stages, capital is concentrating around platforms that replace manual processes, harden digital infrastructure, and deliver clear ROI in large, fragmented markets.

Pepper Raises $50M in Series C Funding for Food Distributor Tech

Pepper, a New York–based startup providing an end-to-end technology platform for independent food distributors, raised $50 million in a Series C round. The capital will accelerate Pepper’s AI-enabled platform across ordering, sales, and financial workflows. Pepper’s software already serves over 500 distributors (together accounting for about $30 billion in annual volume) and 100,000 active operators, helping modernize their manual processes.

This Series C, led by Lead Edge Capital with participation from ICONIQ, Index Ventures, Greylock, Harmony Partners, and Interplay, will deepen Pepper’s product innovation and market reach. The round highlights growing investor interest in digital infrastructure for large, fragmented industries like food distribution.

• Startup: Pepper

• Investors: Lead Edge Capital (lead), ICONIQ Ventures, Index Ventures, Greylock, Harmony Partners, Interplay

• Amount Raised: $50M

• Total Raised: $100M (approximately)

• Funding Stage: Series C

• Funding Date: Feb 23, 2026

Selector Raises $32M in Series C Funding for AI Observability Platform

Selector, a London-based AI observability startup, closed a $32 million funding round that doubles its valuation to about $375 million. The round was led by Alpine Venture Partners (AVP) and included Ansa Capital, Two Bear Capital, Sinewave Ventures, and Singtel Innov8. Selector’s software uses AI to correlate data across entire technology stacks, delivering unified root-cause analysis for enterprise infrastructure.

The new funding will support continued R&D in AI-driven monitoring and global expansion into markets such as Japan. Selector reports strong momentum with Fortune 1000 customers, and CEO Kannan Kothandaraman says the investment will help the company build next-generation “ChatOps” tools and deepen its footprint in large enterprises.

• Startup: Selector

• Investors: AVP (lead), Ansa Capital, Two Bear Capital, Sinewave Ventures, Singtel Innov8

• Amount Raised: $32M

• Total Raised: $32M (post-money valuation ~$375M)

• Funding Stage: Series C

• Funding Date: Feb 23, 2026

Ownwell Raises $30M in Series B Funding for Property Tax Fintech

Ownwell, an Austin-based fintech that helps homeowners appeal property taxes, raised $30 million in equity as part of a Series B round. (The round also included $20 million of debt, not counted here.) The funding was co-led by Alpha Edison and Mercato Partners, with participation from Intuit Ventures, Left Lane Capital, First Round Capital, Long Journey Ventures, Proof Fund, and Wonder Ventures.

The company’s software automates complex steps in the tax appeal process by analyzing millions of local records, making tax relief tools accessible to average homeowners. Ownwell’s CEO says the proceeds will be used to expand into new markets and deepen customer reach. With this round, Ownwell’s total equity funding is about $54 million, reflecting strong investor confidence in its mission to democratize tax savings.

• Startup: Ownwell

• Investors: Alpha Edison (lead), Mercato Partners, Intuit Ventures, Left Lane Capital, First Round Capital, Long Journey Ventures, Proof Fund, Wonder Ventures

• Amount Raised: $30M (equity)

• Total Raised: $54M

• Funding Stage: Series B

• Funding Date: Feb 23, 2026

Stacks Raises $23M in Series A Funding to Automate Enterprise Finance

Stacks, a London startup building AI-driven automation for corporate finance and accounting, announced a $23 million Series A round. The round was led by Lightspeed Venture Partners, with General Catalyst, EQT Ventures, and S16VC also participating. Stacks’ platform connects to a company’s financial and transactional data and uses autonomous “agentic” workflows to automate tasks such as reconciliation, reporting, and treasury management.

The new funding will help Stacks expand its engineering team and accelerate customer acquisition across sectors. This financing comes less than a year after a $12M seed, bringing Stacks’ total funding to roughly $35M. By replacing manual processes with intelligent automation, Stacks aims to make enterprise finance more agile and error-proof.

• Startup: Stacks

• Investors: Lightspeed Venture Partners (lead), General Catalyst, EQT Ventures, S16VC

• Amount Raised: $23M

• Total Raised: ~$35M

• Funding Stage: Series A

• Funding Date: Feb 23, 2026

Flinn.ai Raises $20M in Series A Funding for AI Medtech Compliance Platform

Flinn.ai, an AI startup based in Vienna, raised $20 million in a Series A funding round led by HV Capital, with support from Bertelsmann Healthcare Investments (BHI) and existing backers Cherry Ventures, Speedinvest, and SquareOne. Flinn.ai’s platform automates regulatory compliance, quality, and safety tasks for medical device and pharmaceutical manufacturers, significantly reducing paperwork and manual review required for global product approvals.

The new funding will enable Flinn.ai to expand its software to cover additional stages of the medical product lifecycle and accelerate its expansion into the U.S. market. As healthcare regulations worldwide become increasingly complex, investors see Flinn.ai’s technology — which frees teams to focus on innovation rather than paperwork — as strategically important for the medtech industry.

• Startup: Flinn.ai

• Investors: HV Capital (lead), Bertelsmann Healthcare Investments (BHI), Cherry Ventures, Speedinvest, SquareOne

• Amount Raised: $20M

• Total Raised: $20M

• Funding Stage: Series A

• Funding Date: Feb 23, 2026

Aliro Raises $15M in Seed Funding for Physics-Based Network Security

Aliro, a Boston quantum networking startup, raised $15 million in seed funding to develop its physics-based cybersecurity platform. The round was led by Gutbrain Ventures and included Cisco Investments, Argon Ventures, and Wonderstone Ventures (Murata’s VC arm). Aliro’s technology shifts network trust from traditional math-based encryption to physical-layer security using quantum entanglement, ensuring that any interception is immediately detected.

The funds will enable Aliro to expand deployments and partnerships as it positions its platform for industries like telecom, finance, and defense. By commercializing “software-driven entanglement,” Aliro aims to redefine security for the next generation of critical networks.

• Startup: Aliro

• Investors: Gutbrain Ventures (lead), Cisco Investments, Argon Ventures, Wonderstone Ventures

• Amount Raised: $15M

• Total Raised: $15M

• Funding Stage: Seed

• Funding Date: Feb 23, 2026

Israel’s AI startup Hypercore Raises $13.5M in Series A Funding for Private Credit AI

Hypercore, an Israeli startup providing loan administration software for private credit funds, raised $13.5 million in a Series A round led by Insight Partners. Hypercore’s platform combines traditional loan-management tools with AI-powered agents to automate complex operations for private credit managers.

The investment will fund the launch of Hypercore’s “AI Admin Agent,” a product that handles end-to-end servicing tasks. Insight’s MD Hagi Schwartz will join Hypercore’s board, and seed investor Atinc (which led Hypercore’s 2023 seed) remains a major backer. With private credit a trillion-dollar market under pressure to modernize, Hypercore’s AI-driven approach addresses critical pain points in fund operations.

• Startup: Hypercore

• Investors: Insight Partners (lead), Atinc (seed investor)

• Amount Raised: $13.5M

• Total Raised: ~$13.5M

• Funding Stage: Series A

• Funding Date: Feb 23, 2026

Coral Care Raises $13M in Series A Funding for In-Home Pediatric Therapy

Coral Care, a New York–based platform connecting families to in-home pediatric therapists (speech, occupational, and physical), announced a $13 million Series A round. The financing was led by Haymaker Ventures, with participation from FCA Ventures and Peterson Ventures. Coral Care’s marketplace makes pediatric developmental therapy more accessible by bringing credentialed clinicians to children’s homes and handling insurance coordination.

The fresh capital infusion will support geographic expansion into new U.S. markets (recently including Dallas, Houston, Chicago, Philadelphia, and Pittsburgh) and help grow its clinician network. Investors note that long waitlists and fragmented care in children’s therapy make Coral Care’s tech-powered, in-home model an attractive solution to improve access and outcomes.

• Startup: Coral Care

• Investors: Haymaker Ventures (lead), FCA Ventures, Peterson Ventures

• Amount Raised: $13M

• Total Raised: $13M

• Funding Stage: Series A

• Funding Date: Feb 23, 2026

Elevāt Raises $12M in Series A Funding for Industrial Repair AI

Elevāt, a Seattle startup offering AI-guided maintenance tools for heavy industrial equipment, raised $12 million in a Series A round. The new funding will help fuel the growth of its platform, which combines sensor telemetry, manuals, and repair data to guide technicians through complex equipment fixes. Elevāt’s AI assistant improves first-time fix rates and reduces downtime — a critical need amid a shortage of experienced industrial technicians.

CEO Adam Livesay says the funds will support expansion into Europe and new industry verticals. Elevāt has already raised $18.7M to date (including this round), and it plans to use the capital to scale sales and development. By automating repair diagnostics and preventive maintenance, Elevāt’s software aims to boost productivity across manufacturing, agriculture, transportation and other sectors.

• Startup: Elevāt

• Investors: Undisclosed

• Amount Raised: $12M

• Total Raised: $18.7M

• Funding Stage: Series A

• Funding Date: Feb 23, 2026

Giant Raises $8M in Seed Funding to Build AI Storytelling Platform for Kids

Giant, an AI startup focused on interactive storytelling for children, has raised $8 million in seed funding to expand its creative media platform. The company is building an experience where kids don’t just watch stories. They become part of them.

The platform lets children appear as animated characters, talk with AI personalities that remember prior conversations, and generate personalized story worlds that evolve over time. Since launching in May 2025, Giant reports more than 1 million minutes of character conversations and over 200,000 customized episodes created by users, signaling early engagement momentum.

The new capital will support product development and broader market expansion as Giant pushes to shift children’s screen time from passive viewing to creative participation, a segment drawing growing investor interest.

Funding Details

• Startup: Giant

• Investors: Matrix, Decasonic, Griffin Gaming Partners; with Perceptive Ventures, Flex Capital, Arbitrum Gaming Ventures, Unpopular Ventures, LightShed Ventures

• Amount Raised: $8M

• Total Raised: $8M

• Funding Stage: Seed

• Funding Date: February 23, 2026

Funding Summary Table