Venture Capital & Startup Funding Roundup, August 12, 2026: Coatue, Franklin Templeton, CapitalG, Menlo Ventures, Sequoia Capital & More

The day’s deals underscore one clear theme: venture capital continues to pour into fundamental infrastructure and vertical AI playbooks, not consumer fluff. A massive $750M infusion into Form Energy’s iron-air battery plant leads the charge – a bet on long-duration storage as the grid faces tighter constraints – followed by a $400M round for Swedish AI coding platform Lovable.p

Elsewhere, startups solving core business problems are catching fire: India’s electric mobility provider Yulu grabbed $93M to expand its EV fleet, and a clutch of AI-focused developer tools (CodeRabbit, Blacksmith, Skan AI) and cybersecurity plays (Mindgard) raised sizable rounds. Notably, biotech and drug-discovery also shone through with new funding. Together, these announcements suggest investors are doubling down on “hard” tech and domain-specific software: next-generation batteries, EV networks, code-quality platforms, and pharma R&D, sectors with clear revenue models and real-world impact.

Amid lingering macro uncertainty, VCs are directing capital into areas they can justify by measurable gains. Last quarter alone saw global venture funding hit a record $510B in H1 2026, but it’s concentrated in a few categories. Crunchbase data shows roughly 80% of that investment went to AI-focused startups, spanning everything from infrastructure and chips to vertical SaaS. Today’s deals reflect that focus: AI pervades enterprise-grade software (coding, context graphs, compute tooling) and even security agents. Meanwhile, the high-dollar climate and mobility rounds (Form Energy, Yulu) hint at continued VC faith in long-term, mission-critical solutions to energy and transport challenges. In short, investors are favoring deep-tech and scalable infra – a trend likely driven by tighter markets and a search for defensible, big-payoff bets.

The Macro Environment: Capital Flows to Infrastructure and Vertical AI

We are in a period of concentrated venture activity. Global funding is at unprecedented levels – a record half-year $510B in H1 2026 – but investors are pickier. The lion’s share of funding is funneled into tech that underpins other industries. AI is the top focus (over 4/5 of dollars), but even within AI, the favored segments are domain-specific tools rather than flashy consumer bots. Funding is gravitating toward startups that address large, tangible markets: power grids (Form Energy’s iron-air batteries), urban transportation (Yulu’s EV scooters), enterprise software (Skan AI’s work-graph platform, Silicon Data’s compute verification layer), and drug development (Boulevard Bio, Remepy).

Investors today seem to prize “real economy” technology – often termed vertical AI or industry tech – over consumer gimmicks. The deals here span aerospace-grade software validation (CodeRabbit) to musculoskeletal health platforms and autonomous logistics (ClearJet). They span geographies – U.S., Europe, India – but the unifying theme is big problems: energy storage, supply chain efficiency, healthcare costs, and enterprise automation. That mirrors broader data: venture dollars have been pouring into climate and health sectors alongside AI, even as seed funding cools.

The macro backdrop- higher interest rates and market caution- is likely shaping this selectivity. With some public markets shaky, VCs are doubling down on companies with clear ROI paths. Notice that the top rounds today come with revenue traction or strategic backers: Form Energy has utility contracts, Lovable boasts $500M ARR and Google Cloud ties, and CodeRabbit counts BMW as a partner. The result is capital concentration: a few winners command seven- and eight-figure raises (Form, Lovable, CodeRabbit), while most others get mid-range rounds. In this environment, showing unit economics and regulatory alignment (e.g. UK backing for Vertical Aerospace’s eVTOL) is at a premium.

Finally, there’s a noticeable alignment with national priorities. The big funding for Form Energy and Yulu echoes global energy transition mandates, and Lovable’s mega-round underscores Europe’s push to scale its tech champions. VCs’ participation in code and AI platforms (via names like BMW i Ventures on CodeRabbit or lead funds like Menlo on Lovable) suggests they’re also setting the table to support industries (automotive software, cloud infrastructure) that major economies care about. Overall, today’s capital flows tell a consistent story: investors are betting on foundational technologies and domain-specific AI as the safest route in a still-uncertain market.

Form Energy raises $750M in funding to expand multi-day grid batteries

Form Energy, a Boston-area battery startup, announced a $750 million Series G led by T. Rowe Price. The round (bringing total equity raised to over $2B) will scale Form’s “iron-air” batteries, a novel multi-day storage system aimed at stabilizing the electrical grid. As renewables proliferate, grid operators need ways to store power for days at a time – far beyond typical lithium-ion storage. Form’s technology (cheap iron metal electrodes and air) promises that long-duration capability at industrial scale. Existing backers like Breakthrough Energy and Coatue maintained stakes, and new investors include Sequoia, Franklin Templeton, and others.

Investors are drawn by Form’s combination of demonstrated tech and commercial momentum. The startup has already secured gigawatt-hour contracts (Xcel Energy, Google, etc.) and tripled its backlog this year. The new capital will fund the Weirton, WV “Form Factory 1” production plant and accelerate deployments of its first commercial systems. For founders, Form’s mega-round underlines that audacious climate bets – even hardware-first ventures – can still pull in massive funds when aligned with national energy goals. For the market, it signals that storage technology remains a critical frontier in the energy transition.

Funding Details:
Startup: Form Energy
Investors: T. Rowe Price (lead), Sequoia Capital, Janus Henderson, Franklin Templeton, PEAK6, Prelude, Engine, TPG Rise, Breakthrough Energy, Coatue, Energy Impact Partners, NGP, GE Vernova, Blindspot, M&G Catalyst Fund (all participated).
Amount Raised: $750 million (Series G).
Total Raised: >$2 billion (all equity).
Stage: Late-stage (Series G)
Date: Aug 12, 2026
Headquarters: Weirton, West Virginia, USA
Sector: Energy / Battery Storage

Lovable raises $400M in funding as AI coding startup hits $13.3B valuation

Lovable, a Swedish “vibe-coding” AI software platform, confirmed it has raised $400 million in Series C funding at a new $13.3 billion valuation. The round was led by Menlo Ventures and the Scaleup Europe Fund, with over a dozen investors participating. Lovable provides AI-assisted programming tools and hosts millions of projects; the startup just hit a $500M annualized run-rate in June. Its platform uses proprietary AI models to help developers code faster, reflecting the broader surge in AI-powered development environments.

Investors are betting on Lovable’s scale and growth: the company now serves 60 million projects and sees 900 million visits per month, and recently inked a major multiyear deal with Google Cloud. The fresh capital will accelerate expansion (including its recent investment in related startups) and continued model training. For founders, Lovable’s new round highlights that AI-driven developer tools – especially those with network effects and big revenue – can command massive rounds. For the ecosystem, it underlines Europe’s ability to back “deep tech” unicorns: Lovable’s massive raise (doubling its value in just 8 months) signals that investor confidence in EU software hubs remains strong.

Funding Details:
Startup: Lovable
Investors: Menlo Ventures (lead), Scaleup Europe Fund (co-lead), EQT, Google’s CapitalG, Palantir founders, and others.
Amount Raised: $400 million (Series C).
Total Raised: ~$730 million to date.
Stage: Late-stage (Series C)
Date: Aug 12, 2026
Headquarters: Stockholm, Sweden
Sector: Software / AI-driven developer platform

CodeRabbit raises $143 million in funding to power AI code review at scale

CodeRabbit, a startup building an AI-powered code-review platform, announced a $143 million Series C co-led by Atomico and Smash Capital. The round values the company at about $1.5 billion. CodeRabbit’s agent reviews software code changes for quality, security, and correctness before deployment – whether written by humans or AI. The platform cross-references test results, issue tickets, and project history to flag potential issues, then can even auto-fix problems with AI agents.

Investors including BMW i Ventures (the strategic VC arm of BMW) participated, reflecting a two-year partnership: CodeRabbit already supports over 1,000 of BMW’s developers globally. The new funding will expand international operations (CodeRabbit just opened in London and Japan) and bolster R&D on its “Agentic Change Management” system. For startup watchers, CodeRabbit’s round illustrates the ongoing demand for AI-powered developer infrastructure: as more code is machine-generated, enterprises need robust review tools. It also shows that corporate VCs (like BMW) are willing to fund software solutions that directly advance their engineering productivity.

Funding Details:
Startup: CodeRabbit
Investors: Atomico (lead), Smash Capital (lead), BMW i Ventures, existing angels and institutional backers.
Amount Raised: $143 million (Series C).
Total Raised: ~$200 million to date.
Stage: Late-stage (Series C)
Date: Aug 12, 2026
Headquarters: Mountain View, California, USA
Sector: Enterprise Software / AI Code Review

Yulu raises $93M in funding to expand electric MaaS platform

Yulu, an Indian electric mobility-as-a-service platform, closed a $93 million Series C round (including $63M equity and $30M debt) led by GEF Capital Partners. Yulu provides short-distance transport via electric scooters and bikes in cities; it will use the funding to quadruple its active fleet to 200,000 EVs and expand service hubs and delivery services. This is Yulu’s largest raise to date (the startup had $82M in prior funding).

Besides GEF, strategic investors Bajaj Auto and Magna International (both auto industry leaders) joined the round. Yulu has reported 7x revenue growth since FY2023 while maintaining positive EBITDA, reflecting strong unit economics. The company’s expansion into adjacent mobility (such as high-payload EV scooters for logistics) also underscores the growing “shared micro-mobility” trend. For investors, Yulu represents a bet on India’s urban mobility transition: affordable EV vehicles addressing last-mile transport. Founders should note that even in emerging markets, climate-linked mobility ventures can attract large capital if they demonstrate scale and profitability.

Funding Details:
Startup: Yulu (Yulu Bikes Pvt. Ltd.)
Investors: GEF Capital Partners (lead), Bajaj Auto, Magna International (co-investors).
Amount Raised: $93 million (Series C; $63M equity + $30M debt).
Total Raised: ~$175 million to date.
Stage: Late-stage (Series C)
Date: Aug 12, 2026
Headquarters: Bengaluru, India
Sector: Transportation / Electric Mobility (EV MaaS)

Boulevard Bio launches with $65M in seed funding

Boulevard Bio, a New York biotech spun out of Deerfield Management, emerged from stealth with a $65 million founding round. The startup focuses on chronic kidney disease (IgA nephropathy) with a pipeline of engineered multispecific antibodies. Its lead candidate is a dual BAFF/APRIL-targeting antibody dosed quarterly. Deerfield – via its discovery incubator – is the sole founding investor in this seed financing.

The round funds late preclinical and early clinical work on Boulevard’s pipeline. Veteran drug hunters run the company, reflecting Deerfield’s trend of creating startups to tackle complex biology. For the biotech scene, Boulevard’s debut shows that even early-stage drug ventures can command double-digit millions when led by heavyweight investors. It also highlights the continued VC interest in immunology and targeted biologics platforms: Boulevard’s tech is engineered for a large patient base with a clear commercial path.

Funding Details:
Startup: Boulevard Bio, Inc.
Investors: Deerfield Management (founding investor).
Amount Raised: $65 million (Seed).
Total Raised: $65 million (first financing)
Stage: Seed (Series Seed)
Date: Aug 12, 2026
Headquarters: New York, New York, USA
Sector: Biotechnology / Drug Discovery

Skan AI bags $63 million in funding to build enterprise “context graph” for work

Skan AI, which provides a “context graph” platform for enterprise AI, raised $63 million in funding co-led by Cathay Innovation and Dell Technologies Capital. The San Francisco company’s software maps all of an organization’s processes and data to give AI agents true context about how work happens. Alongside the round, Skan launched new products (Skan AI Blueprint and Agents) designed to let companies deploy and automate AI grounded in their actual operations.

Other participants included Citi Ventures, Bloomberg Beta, State Farm Ventures, and Wipro Ventures. Investors are attracted by Skan’s vertical AI approach: its “graph of work” promises to make AI pilots enterprise-ready. As big companies move beyond generic AI demos, they are seeking platforms that integrate AI with internal workflows – exactly Skan’s niche. For founders, Skan’s raise highlights that enterprise AI infrastructure is still a hot area: VCs are funding tools that help businesses actually use AI, not just algorithms in the abstract.

Funding Details:
Startup: Skan AI (formerly SkanData)
Investors: Cathay Innovation (lead), Dell Technologies Capital (lead), Citi Ventures, Bloomberg Beta, State Farm Ventures, Wipro Ventures.
Amount Raised: $63 million (Series B).
Total Raised: ~$80 million to date (incl. prior rounds).
Stage: Growth (Series B)
Date: Aug 12, 2026
Headquarters: Menlo Park, California, USA
Sector: Enterprise Software / AI Platform

Blacksmith raises $45 million in funding as AI-driven code-testing soars

New York startup Blacksmith, which offers a cloud platform for testing and verifying code, closed a $45 million Series B led by Peak XV Partners. This funding round values the company at about $550 million (up from $60M a year ago). Blacksmith’s service runs continuous integration workloads and an AI assistant (Codesmith) that can automatically fix failed tests. Its customers include thousands of engineering teams (Mercury, Supabase, Clerk, etc.), who pay for fast, scalable code validation before deployment.

Investors like GV and Y Combinator also participated alongside Peak XV. The round underscores a broader trend: as AI dramatically accelerates code generation, validating that code has become a critical bottleneck. Blacksmith’s rapid revenue growth (tens of millions, 7x last year) and high-margin model make it a compelling AI-era infrastructure play. For founders, Blacksmith’s milestone shows that even services built on “old” development problems can command big rounds if they leverage AI and show enterprise traction.

Funding Details:
Startup: Blacksmith (formerly useblacksmith)
Investors: Peak XV Partners (lead), GV (Google Ventures), Y Combinator.
Amount Raised: $45 million (Series B).
Total Raised: $58.5 million to date (including prior A round).
Stage: Series B
Date: Aug 12, 2026
Headquarters: New York, New York, USA
Sector: Software / Developer Tools (CI/CD, AI-powered testing)

Remepy closes $36 million in Series A funding for “hybrid drugs” pipeline

Remepy, a biotech startup developing modular small molecules (“hybrid drugs”), announced a $36 million Series A financing led by O.G. Venture Partners with participation from M Ventures (Merck KGaA’s strategic VC arm). The New York company will use the proceeds to advance its lead program (Hybridopa for Parkinson’s disease) into global Phase III trials (starting late 2026) and expand co-development partnerships. This Series A brings Remepy’s total funding to $62M.

Remepy’s technology fuses small molecules with biologic targets to create “best of both worlds” therapeutics. Existing backers (NFX, Vine Ventures, etc.) all reinvested alongside O.G. and M Ventures. In biotech’s current fundraising climate, this round highlights that startups with novel modalities and strong pharma partnerships can still attract robust Series A funding. It suggests investors are keen on differentiated R&D platforms (Remepy is sometimes called a “Pfizer 2.0”), especially for diseases like Parkinson’s with large market potential.

Funding Details:
Startup: Remepy, Inc.
Investors: O.G. Venture Partners (lead), M Ventures (co-lead), NFX, Vine Ventures, Qumra Capital, TechAviv, 97212 Ventures, Fresh Fund, PsyMed Ventures, Tadmor Group, Key1 Capital, IT-Farm Corp. (others).
Amount Raised: $36 million (Series A).
Total Raised: $62 million to date.
Stage: Series A
Date: Aug 12, 2026
Headquarters: New York, New York, USA
Sector: Biotechnology / Drug Discovery (Hybrid small molecules)

Silicon Data raises $30.5M in funding to verify AI compute

Silicon Data, a fintech-like startup for hardware, announced a $30.5 million Series A led by Valor Atreides AI Fund. The New York company provides an independent benchmark and verification layer for the compute economy: its software benchmarks AI accelerators and cloud providers so enterprises can confidently compare performance and costs. Other investors include CME Group, DRW, F-Prime, Samsung, and crypto market-makers (Jump, Wintermute), reflecting a blend of finance and tech interest.

AI model development has created a new demand for reliable hardware metrics. Silicon Data’s platform aims to be “the S&P 500 for chips,” giving organizations standardized insights into GPU and accelerator offerings. For founders, this raise demonstrates that even infrastructural niches – here, tying together finance and semiconductor worlds – can secure funding when positioned as an essential transparency tool. The backing from notable institutional investors (CME, Samsung) underscores the perceived value of demystifying AI compute costs.

Funding Details:
Startup: Silicon Data
Investors: Valor Atreides AI Fund (lead), CME Group, DRW, F-Prime Capital, Samsung Ventures, VanEck, Further Ventures, Jump Trading, Tectonic, Wintermute, Breed, Hack VC, Blank VC, Sancus Ventures, SoGal Ventures.
Amount Raised: $30.5 million (Series A).
Total Raised: $30.5 million (first institutional round)
Stage: Series A
Date: Aug 12, 2026
Headquarters: New York, New York, USA
Sector: Semiconductor / AI Infrastructure (Compute Benchmarking)

Mindgard raises $30M in Series A funding for AI-centric security

Mindgard, a Boston startup securing AI-driven systems, closed a $30 million Series A led by Album VC. The company’s platform specializes in “AI security,” focusing on protecting non-human identities and AI agents as they interact across cloud services. Known clients and backers (.406 Ventures, Atlantic Bridge, etc.) see Mindgard addressing a growing need: as enterprises deploy more AI agents and automation bots, the attack surface expands.

Album VC led the round, joined by Karma Ventures and existing investors .406 Ventures, Atlantic Bridge, IQ Capital, and Lakestar. Mindgard will use the funding to scale engineering and sales to meet rising demand. For founders, Mindgard’s financing is a signal: cybersecurity is “white-hot,” and startups that tie it to emerging AI trends can raise significant capital. It reflects a broader pattern where VCs are willing to back specialists at the intersection of AI and enterprise security, anticipating that breaches in machine-driven workflows will be a major concern.

Funding Details:
Startup: Mindgard, Inc.
Investors: Album VC (lead), Karma Ventures, .406 Ventures, Atlantic Bridge, IQ Capital, Lakestar.
Amount Raised: $30 million (Series A).
Total Raised: $30 million (first venture round)
Stage: Series A
Date: Aug 12, 2026
Headquarters: Boston, Massachusetts, USA
Sector: Cybersecurity / AI Security

What Today’s Funding Activity Reveals

A few themes stand out. First, targeted AI and hard tech are dominant. Major funding went to companies applying AI to specific domains (enterprise work graphs, code testing, AI-driven security) or building critical hardware/software infrastructure (batteries, EV fleets, chip benchmarking). Notice the absence of any consumer-app rounds among the largest deals: investors are clearly favoring startups that solve quantifiable, often regulated problems in large industries.

Second, strategic investors are aligning with national priorities. Form Energy’s injection was led by institutional funds with climate mandates, Blacksmith and CodeRabbit saw backing from automotive industry players (BMW i Ventures), and Yulu drew in India’s domestic investors (Bajaj). This suggests VCs are cognizant of government agendas – energy independence and climate goals in the U.S., EV adoption in India, building European tech champions – and channeling capital accordingly. Even Lovable’s round reflects Europe’s bid to nurture AI capabilities onshore.

Third, capital is flowing into an “AIization” of enterprise and government functions. From Mindgard (protecting AI agents) to Silicon Data (benchmarking AI hardware) to Skan’s work-graph, the rally is around layering intelligence on established systems. These deals imply that VCs expect “software eats everything” to now mean “AI automates everything,” and they want to be early in that infrastructure.

Finally, the mix of deal sizes – a $750M mega-round and then several sub-$100M deals – highlights concentration of investment. A handful of companies captured the lion’s share of capital, while most others raised medium-sized rounds. This pattern mirrors data: record venture funding is now concentrated in mega-deals. It likely reflects macro caution: investors are doubling down on perceived winners (and proven models) rather than spreading small bets widely.

Venture Funding Table

Strategic Takeaways for Founders and Investors

• Solve big, measurable problems. Every funded startup here addresses a clear pain point in a large market – from multi-day battery backup for grids to reducing code-review bottlenecks. Investors today want concrete outcomes (revenue gains, efficiency improvements) over abstract “vision.” Founders should quantify how their tech saves time or money at scale (e.g., Yulu’s impact on delivery costs, Form’s grid reliability) to attract funding.

• Build defensibility and alignment. VCs are favoring systemic solutions: dual-use or mission-critical tech (energy storage, biotech platforms) and enterprise infrastructure that locks in customers (SaaS for industries, developer pipelines). Highlighting partnerships with strategic players (e.g., CodeRabbit’s ties to BMW) or regulatory enablers (e.g., government support for climate tech) can reinforce defensibility. Think of your startup as part of an essential ecosystem, not a one-off gadget.

• Mind capital efficiency and milestones. Despite record flows, funding is funneled to proven ventures. Many of today’s rounds went to companies with demonstrated traction (tens of millions ARR, key pilot programs, early trial data). Early-stage founders should aim to hit meaningful milestones before large raises, and communicate ROI to investors. For example, Lovable showed huge ARR growth to justify its mega-round. In this market, rushing to raise without clear metrics can backfire; investors are digging into fundamentals.

• Seek thematic tailwinds, but guard against hype. AI is a clear tailwind – it’s enabled these companies – but successful pitches framed AI as a tool for concrete gains, not a buzzword. Defense (sovereign tech), climate/EV, and vertical AI are attracting attention right now. Founders should align their narrative with broader trends (e.g., climate commitments, AI at enterprise) while honestly showcasing product-market fit. Investors, meanwhile, are rewarding savvy plays that ride secular shifts (like the energy transition) rather than chasing every “bot” or “crypto” fad.

• Expect concentrated funding and sharp execution. With capital gravitating to a few winners, standing out is critical. A big round today doesn’t guarantee tomorrow’s success; companies will be judged on execution. For investors, that means rigorous diligence: backing startups with defensible tech, strong teams, and clear paths to profitability. Founders should note that even with abundant capital available, rounds will be larger for those with credible plans. Achieving a defensible niche (e.g., code-review vs. a broad IDE) and demonstrating capital efficiency (growing revenue faster than spend) will differentiate winners.

Conclusion

August 12’s funding story wasn’t about consumer “buzz” or speculative concepts – it was a day of infrastructure bets and application-driven AI. The largest checks went to ventures that tie into fundamental shifts (electrifying transport, decarbonizing energy, automating core business functions). Investors are signaling they value deep technology and tangible returns: open checkbooks for capital-intensive scaling (Form Energy’s battery plant), but also caution in spreading funds too thin. In this environment, the ecosystem seems headed toward specialization: companies that solve niche but critical problems for big industries. For readers (founders, investors, and operators alike), today’s roundup suggests doubling down on substance over spectacle. The startup market is steering toward concrete impact – and those who deliver it will capture the lion’s share of venture dollars.