News

Jun 15, 2023

Sequoia, Lightspeed Fund AI Startups in Frenzied Back

Foundry Technologies, a startup that plans to rent servers to companies to run artificial intelligence software, is in talks to raise money at a valuation of $350 million, according to two people with

Foundry Technologies, a startup that plans to rent servers to companies to run artificial intelligence software, is in talks to raise money at a valuation of $350 million, according to two people with direct knowledge of the matter. That might not sound surprising except for the fact Foundry was valued at around $50 million in its seed round late last year.

The sevenfold increase in Foundry’s valuation in roughly nine months signals how a risky pandemic-era fundraising trend has returned: Hot companies are raising money at rapidly escalating valuations in capital-raising rounds spaced just months apart. Foundry is one of many examples of AI startups that have enjoyed a meteoric rise in valuation this year.