Startup Flash Report

STARTUP FLASH - September 28, 2025

Nscale Secures Record $1.1B Series B, Setting New Benchmark for European AI Infrastructure

TOP 3 STORIES:
1. Nscale’s $1.1B Series B Funding Sets European Record
Nscale, an AI compute infrastructure startup, raised $1.1 billion in Series B funding—the largest in European history—signaling robust investor appetite for foundational AI infrastructure[1]. Founders in AI and deep tech should note the scale of capital now available for ambitious infrastructure plays, especially those targeting enterprise and hyperscaler markets.

2. Factory Raises $50M to Accelerate AI Coding Agents for Enterprise
Factory, a San Francisco-based startup, secured $50 million in Series B funding to expand its “agent-native” AI coding tools, with backing from NEA, Sequoia, and Nvidia[1]. This move highlights growing enterprise demand for AI-driven software development, offering founders opportunities to build tools that automate and augment technical workflows.

3. Divine Closes $6.6M Seed to Scale Undercollateralized Crypto Lending
Crypto-finance startup Divine raised $6.6 million in seed funding led by Paradigm to expand its undercollateralized lending protocol, which uses on-chain behavior for credit assessment[1]. Entrepreneurs in fintech and emerging markets should watch the shift toward alternative credit models, as new protocols unlock access for underserved borrowers globally.

Flash Insight:
Investor conviction in AI infrastructure and automation remains strong, with record-breaking rounds for both foundational compute and applied AI tools. The surge in funding for undercollateralized lending and enterprise automation signals a market shift toward practical, execution-driven solutions that address real-world bottlenecks. For founders, the current environment rewards bold technical bets and products that deliver measurable efficiency or access—especially in AI, fintech, and infrastructure.

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Sources:
[1] https://techstartups.com/2025/09/25/top-startup-and-tech-funding-news-september-25-2025/