Startup Flash Report

STARTUP FLASH - December 15, 2025

ServiceNow Eyes $7B Acquisition of Cybersecurity Startup Armis in Massive Enterprise Tech Deal

TOP 3 STORIES:
1. ServiceNow in Talks to Acquire Armis for Up to $7B
ServiceNow is negotiating to buy cybersecurity startup Armis, valuing it at up to $7 billion in one of the largest startup acquisitions of 20258. For founders, this signals enterprise giants are aggressively snapping up mature security startups at premium valuations, urging teams to prioritize scalable IoT and device security tech. Entrepreneurs should accelerate partnerships with incumbents like ServiceNow to position for similar exits amid rising cyber threats.

2. Kalshi Closes $1B Round at $11B Valuation
Prediction market platform Kalshi raised $1 billion led by CapitalG and Sequoia Capital, boosting its valuation to $11 billion after record trading volume1. Founders in fintech can leverage this as proof that regulated marketplaces thrive with VC backing for compliance-heavy expansions. Entrepreneurs should focus on user growth metrics and regulatory wins to attract top-tier investors eyeing high-volume consumer platforms.

3. Unconventional AI Lands Record $475M Seed for Energy-Efficient AI Hardware
Unconventional AI secured $475 million in seed funding from Andreessen Horowitz and Lightspeed to develop biologically inspired chips optimizing AI energy use56. This underscores VC appetite for AI infrastructure solving power bottlenecks, advising hardware founders to target sustainability angles. Entrepreneurs building AI tools should integrate energy efficiency early to tap into ballooning seed rounds exceeding traditional benchmarks.

Flash Insight: Massive rounds like Kalshi's $1B and Unconventional AI's $475M seed highlight 2025's VC surge into AI infrastructure, climate tech, and fintech, with seed funding shattering records at nearly 700 deals over $10M. Market conditions favor energy-efficient AI and cybersecurity amid compute shortages and cyber risks, creating tailwinds for bootstrapped European firms via funds like Expedition's $375M. For the ecosystem, this means founders must demo scalable impact in hot verticals to secure oversized checks, while VCs prioritize defensible moats in regulated or hardware-heavy spaces.