Sequoia Doubles Down on Harvey as Revenue Soars

Sequoia Capital is set to lead a $300 million funding round for Harvey, the generative AI startup automating legal work, at a valuation of approximately $3 billion. This move comes less than two years after Sequoia’s initial investment and follows Harvey’s remarkable revenue growth.
The startup recently surpassed $50 million in annual recurring revenue (ARR), a fivefold increase from $10 million a year ago. This milestone positions Harvey as one of the leading generative AI startups by revenue, rivaling companies like search-focused Perplexity.
The new valuation would represent about 60 times forward revenue, reflecting investor confidence in Harvey’s continued growth.
Harvey’s funding is part of a broader trend where early investors with deep pockets lead later rounds for fast-growing AI startups. IVP recently led a round for Perplexity that tripled its valuation, while Thrive Capital spearheaded new financing for Anysphere, the developer of Cursor, an AI coding assistant. EvenUp, a Harvey competitor, and Scale AI, a data-labeling firm, also raised significant rounds last year, all led by existing investors.
This strategy often sparks frustration among venture capitalists unable to secure spots in these coveted deals. Many argue that startups should prioritize diversifying their shareholder bases.
With plenty of dry powder and a limited number of revenue-generating AI startups, this trend shows no signs of slowing down. For firms like Sequoia, doubling down on familiar companies with proven growth trajectories may be one of the safest bets in today’s competitive AI landscape.

TikTok Saga Resumes as Trump Takes Office

Donald Trump’s return to the White House reignites the “TikTok—Ban or Not?” drama, with promises to revisit the issue over the next three months.
TikTok faced a 12-hour outage on Sunday, restored by Oracle, but remains unavailable in Apple and Google app stores. The app’s future hangs in the balance as regulatory uncertainty looms.

eToro Eyes $5 Billion Valuation with U.S. IPO Plans

eToro, the Israeli-founded trading platform, has filed confidentially with the U.S. SEC, signaling plans for an IPO as early as Q2 2025. The offering is expected to value the company at over $5 billion, per the Financial Times.
This marks eToro’s second attempt to go public. A 2021 SPAC merger that valued the company at $10.4 billion was abandoned in 2022 due to the SPAC market downturn.

Shein Targets London IPO in Early 2025

Shein is planning to go public in London in the first half of the year, pending regulatory approvals, according to sources familiar with the matter.
One source suggested the IPO could be finalized as soon as April. They also noted that a recent visit to China by UK finance minister Rachel Reeves might expedite the regulatory process needed for Shein to proceed.

Anysphere Secures $105M for AI Coding Assistant Cursor at $2.5B Valuation

Anysphere, the company behind the AI-powered coding assistant Cursor, has raised $105 million in a funding round led by Thrive Capital, bringing its valuation to $2.5 billion. Cursor has become a go-to tool for developers, offering advanced code completion and boosting productivity.
The company has reached $100 million in annual recurring revenue, underscoring its rapid adoption and market impact. This latest funding round highlights the increasing investor focus on AI-driven development tools and their transformative potential in the software industry.

Blue Origin's New Glenn Rocket Reaches Orbit in Milestone Launch

Blue Origin achieved a significant milestone on January 16 with the successful orbital launch of its New Glenn mega-rocket from Cape Canaveral, Florida. Despite a setback with the first stage failing to land safely, the 320-foot-tall rocket powered by seven BE-4 engines reached orbit, marking the company's entry into the competitive orbital launch market dominated by SpaceX.
New Glenn is designed for a variety of missions, including satellite deployments and potential lunar launches for NASA's Artemis program. After years of delays and legal hurdles, Blue Origin is aiming for eight New Glenn launches in 2025, signaling its commitment to establishing a strong foothold in the commercial space industry.

Phantom Raises $150M, Valued at $3 Billion

Crypto wallet provider Phantom has secured $150 million in a Series C funding round led by Sequoia Capital and Paradigm, pushing its valuation to $3 billion. The investment underscores continued confidence in Phantom’s role as a leading platform for managing digital assets.