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It’s Monday, October 27, 2025, and we’re back with the top startup and tech funding news stories shaping today’s innovation landscape. From AI-driven hiring platforms and chip design automation to fintech, healthtech, and back-office AI for traditional industries, investors continued to pour capital into both late-stage giants and promising early-stage ventures. Today’s highlights feature Mercor’s $350 million Series C at a $10 billion valuation, Reducto’s $75 million Series B for AI document intelligence, and ChipAgents’ $21 million Series A to bring autonomous design to the semiconductor industry. Meanwhile, defense radar startup MatrixSpace secured $20 million to expand its AI-enhanced counter-drone systems, and Honey Health raised $7.8 million to automate healthcare operations. Funding Highlights Mercor raised $350 million in Series C funding to expand its AI-driven talent platform. Reducto secured $75 million in Series B funding to scale its AI document intelligence system. ChipAgents landed $21 million in Series A to revolutionize semiconductor design automation. MatrixSpace completed a $20 million Series B to advance AI radar systems for defense and security. Honey Health raised $7.8 million to streamline healthcare back-office operations with AI. Investor Activity The day’s financings drew participation from some of the most active venture firms — including Andreessen Horowitz, Bessemer Venture Partners, and Felicis — alongside corporate investors like Ericsson, L3Harris, and Micron Ventures. Early-stage backers such as Pelion Ventures, Thicket Ventures, and Navitas Capital continued to fund emerging startups in healthcare, fintech, and B2B automation. Together, these rounds reflect strong investor conviction across AI infrastructure, fintech innovation, and workflow automation — sectors still commanding deep capital despite market volatility. Here’s the full breakdown. Until tomorrow, have a great evening. Mercor Raises $350M in Series C Funding for AI Talent Platform Mercor, a San Francisco–based AI startup, secured a $350 million Series C round at roughly a $10 billion valuation. The funding was led by Felicis Ventures and included participation from Benchmark, General Catalyst, and Robinhood Ventures. Mercor operates a talent platform that connects AI research labs with thousands of domain experts (in fields like science, engineering, and law), facilitating human-in-the-loop training of machine learning models. The new capital will fuel the expansion of Mercor’s automated platform and operations to meet surging demand for specialized AI model training services. Founded in 2023 by Brendan Foody, Adarsh Hiremath, and Surya Midha, the startup has gone from a dorm-room experiment to a multi-billion-dollar AI powerhouse in just two years. The company started with a simple idea: use data to make smarter hiring decisions. What began as a service that analyzed interviews and resumes for clients has evolved into a global AI talent marketplace linking experts in science, law, and engineering with major labs like OpenAI and Meta. Today, more than 30,000 contractors earn an average of $85 per hour through the platform, collectively receiving over $1.5 million in payments every day. Funding Details: Startup: Mercor Investors: Felicis Ventures (lead), Benchmark, General Catalyst, Robinhood Ventures Amount Raised: $350 million Total Raised: Not disclosed Funding Stage: Series C Funding Date: October 27, 2025 Reducto Closes $75M in Series B Funding for AI Document Intelligence Reducto, a New York startup building an AI platform for document understanding, announced a $75 million Series B round led by Andreessen Horowitz. Other backers in the round included Benchmark, First Round Capital, BoxGroup, and Y Combinator, bringing Reducto’s total funding to $108 million in under a year. Reducto’s technology combines optical character recognition with modern vision-language models to interpret and extract data from complex documents with human-like accuracy. The company says its platform already processes nearly a billion pages per month for startups and global enterprises, and it will use the new funding to accelerate research and expand its enterprise-grade AI document intelligence offerings. Funding Details: Startup: Reducto Investors: Andreessen Horowitz (lead), Benchmark, First Round Capital, BoxGroup, Y Combinator Amount Raised: $75 million Total Raised: $108 million Funding Stage: Series B Funding Date: October 27, 2025 ChipAgents Raises $21M Series A for AI Chip Design ChipAgents, a California-based AI startup focused on semiconductor design, has closed a $21 million Series A financing. The round was led by Bessemer Venture Partners and included strategic investments from Micron Ventures, MediaTek Ventures and Ericsson, along with participation from industry executives and angel backers. Founded by chip design experts, ChipAgents’ platform uses “agentic” AI to automate routine RTL design and verification tasks, aiming to help engineers focus on innovation rather than repetitive work. With this funding (bringing total investment to about $24 million), the company will scale its product development, customer acquisition and industry partnerships in the semiconductor sector. Funding Details: Startup: ChipAgents Investors: Bessemer Venture Partners (lead), Micron Ventures, MediaTek Ventures, Ericsson Amount Raised: $21 million Total Raised: $24 million Funding Stage: Series A Funding Date: October 27, 2025 MatrixSpace Completes $20M Series B for Counter-Drone Radar MatrixSpace, a startup developing portable AI-enhanced radar and counter-drone sensing systems, announced a $20 million Series B round. The financing was co-led by The Raptor Group and OTB Ventures, and introduced L3Harris as a new strategic investor on the cap table. MatrixSpace’s technology combines advanced radar hardware with edge AI to provide low-power situational awareness for detecting drones and other threats in challenging environments. The latest funds bring MatrixSpace’s total funding to $58 million and will help accelerate its product development and market expansion in both civil and defense applications. Funding Details: Startup: MatrixSpace Investors: The Raptor Group (co-lead), OTB Ventures (co-lead), L3Harris Amount Raised: $20 million Total Raised: $58 million Funding Stage: Series B Funding Date: October 27, 2025 Honey Health Raises $7.8M in Seed Funding for Healthcare AI Back-Office Honey Health, a Mountain View AI startup building an automated back-office platform for healthcare providers, raised $7.8 million in seed funding. Pelion Ventures led the round, with Streamlined Ventures, Burst Capital, and 8-Bit Capital also participating. Honey Health deploys specialized AI agent teams to autonomously complete complex administrative workflows (such as billing and claims processing) directly within existing healthcare IT systems. The new funding will be used to expand the company’s AI capabilities, accelerate customer growth, and grow the team to support its expanding enterprise customer base. Funding Details: Startup: Honey Health Investors: Pelion Ventures (lead), Streamlined Ventures, Burst Capital, 8-Bit Capital Amount Raised: $7.8 million Total Raised: $7.8 million Funding Stage: Seed Funding Date: October 27, 2025 Bridge Closes $5.1M Seed for Private Markets AI OS Bridge, a New York City fintech startup, closed a $5.1 million seed round to expand its AI-powered operating system for private markets allocators. The round was led by Thicket Ventures and included notable investors such as former Morgan Stanley partner Bill Lewis, Bob White, Nate Sleeper, co-founder Dani Fava and others. Bridge’s platform automates deal sourcing, document analysis and portfolio monitoring for wealth managers and allocators using machine learning. The company plans to use the funding to grow its engineering team and accelerate the rollout of its product suite for private investment management. Funding Details: Startup: Bridge Investors: Thicket Ventures (lead), Bill Lewis, Bob White, Nate Sleeper, Dani Fava Amount Raised: $5.1 million Total Raised: $5.1 million Funding Stage: Seed Funding Date: October 27, 2025 WorkHero Raises $5M in Seed Funding for HVAC Contractor AI Back Office WorkHero, a Boston startup providing an AI-driven back-office solution for HVAC contractors, announced a $5 million seed funding round. Navitas Capital led the financing, with participation from Workshop Ventures, York IE, and several strategic angel investors. WorkHero’s platform autonomously handles the repetitive administrative tasks (invoicing, permit filings, rebates, warranties, etc.) that often burden trades businesses. The startup will use the new capital to expand its engineering and product teams and to add new services such as call answering and bookkeeping, delivering a full suite of AI-powered office operations for its customers. Funding Details: Startup: WorkHero Investors: Navitas Capital (lead), Workshop Ventures, York IE, angel investors Amount Raised: $5.0 million Total Raised: $5.0 million Funding Stage: Seed Funding Date: October 27, 2025 OneAM Raises $4.7M in Seed Funding for SMB Early-Pay Fintech OneAM, a New York City fintech startup, raised $4.7 million in seed funding to expand its AI-powered early-pay platform for small and mid-size suppliers. The round was led by TTV Capital, with participation from Correlation Ventures, ThirdStream Partners, and other investors. OneAM’s platform uses machine learning to underwrite fragmented invoices at scale, enabling suppliers to convert accounts receivable into cash within days. The new funds (bringing total capital raised to about $5.7 million) will support expansion into new industry verticals and enhancements to its pricing, fraud detection, and risk management tools. Funding Details: Startup: OneAM Investors: TTV Capital (lead), Correlation Ventures, ThirdStream Partners, other early investors Amount Raised: $4.7 million Total Raised: $5.7 million Funding Stage: Seed Funding Date: October 27, 2025 Aragorn AI Raises $4.3M Seed for HR “People Ops” Platform Aragorn AI, a startup building a unified “People Ops Operating System” for human resources teams, announced a $4.3 million seed round led by LiveOak Ventures. Dallas Venture Capital also participated, bringing the company’s total funding to $5.5 million. Aragorn’s platform unifies disparate HR systems and deploys AI-powered assistants in tools like Slack or Teams to automate reporting, compliance and policy inquiries. The new capital will accelerate product development and go-to-market growth for the startup’s HR analytics and AI assistant platform. Funding Details: Startup: Aragorn AI Investors: LiveOak Ventures (lead), Dallas Venture Capital Amount Raised: $4.3 million Total Raised: $5.5 million Funding Stage: Seed Funding Date: October 27, 2025 Loon Raises $3M Pre-Seed to Launch Regulated CAD Stablecoin Loon, a Calgary-based fintech spinout from payments startup Paytrie, raised CA$3 million (about $3 million USD) in pre-seed funding to take over and scale CADC, Canada’s domestic dollar-backed stablecoin. The round was led by Version One Ventures and included participation from Garage Capital and several undisclosed angel investors. Loon will focus on regulatory compliance and technical development of the stablecoin, which has already processed over $200 million in volume on Ethereum’s Base network. The funds will be used to advance product development, engage with regulators and grow the engineering and compliance team as Loon prepares to operate CADC as a fully regulated Canadian digital dollar. Funding Details: Startup: Loon Investors: Version One Ventures (lead), Garage Capital, angel investors Amount Raised: $3.0 million (CA$3.0 million) Total Raised: $3.0 million Funding Stage: Pre-Seed Funding Date: October 27, 2025 Tech Funding Summary Table
