May 7, 2025
Kaley Ubellacker
Market Stirrings 🚩
Here's what the week looked like in pre-seed:
$8.0M
15
Data aggregated from proprietary research and Crunchbase; valuation estimate based on 10-20% ownership stake.
RISING AND FALLING
According to investors, the hot early-stage deals feel just as hot as 2021, but how is early-stage venture actually doing? While valuations are trending upward at seed and Series A, the pace of deals is notably slower. For seed, the number of deals is down 87% from its peak. Could this be because the venture thermometer is only hot for sexy, headline-making AI deals?
Good Reads 📖
For the rushed reader …
Venture capitalists are pouring billions into AI startups that may one day automate them out of relevance, raising existential questions about their own industry.
The tech job market is booming in demand, but titles are getting more and more confusing as AI-driven roles lead the charge.
For immigrant startup founders, President Trump’s second term has reignited fears about visa security, casting a shadow over their ability to build a startup with confidence.
For the less rushed reader …
Pitch imperfect
Coming soon to a theater near you: Gone with the Win, a spicy new romance where star-crossed lovers, Venture and AI, grapple with a bond so deep, it’s destined for mutual doom. Venture capitalists are pouring billions into AI startups that may one day automate them out of relevance, raising existential questions about their own industry. In a recent podcast, Marc Andreessen argued that venture will be one of the last human-led fields, citing its artistic nature and reliance on relationships, even though automation is already creeping into VC workflows. While AI might eventually outperform humans in picking winners, Andreessen and Ben Horowitz claim the real value lies in who gets to pick and how they support founders post-investment. As AI grows increasingly capable of replicating logic and empathy, it’s possible that term sheets could end up in the hands of terminators.
Role-ing the dice
There’s a title wave in the tech industry. The tech job market is booming in demand, but titles are getting more and more confusing as AI-driven roles lead the charge. According to LinkedIn’s chief economist, a single job function can now have up to 40 different titles, leaving applicants wondering if “AI architect” is really different from “machine learning engineer” or “data specialist.” New job postings for tech roles hit 213,000 in March, with the tech unemployment rate dipping to 3.1%. Professionals with AI skills are getting hired 30% faster, but companies are still experimenting with how to define and name these roles. Notably, 20% of Americans who changed jobs last year took on titles that didn’t exist in 2000. Maybe that’s the whole point – if you can weed out surplus applicants with a tricky title, that saves half the decisioning battle, right?
Green card, red tape
Founding a startup is becoming borderline stressful. For immigrant startup founders, President Trump’s second term has reignited fears about visa security, casting a shadow over their ability to build a startup with confidence. Many are putting travel plans on hold, scrambling to finalize paperwork, and altogether reconsidering whether to launch in the U.S. at all. Visas like the OB-1 and EB-1, aimed at those with “extraordinary ability,” offer limited pathways, especially for early-stage founders who struggle to meet income-based thresholds. With visa denials still rare but becoming more visible (like OpenAI’s Kai Chen being forced to relocate to Canada), many in the tech ecosystem are pushing for a dedicated startup visa more than ever before. In immigrant founder circles, “startup” is sounding more like “sit tight.”
Fire Up the Pre-Seeds🔥
Highlights from this week’s pre-seed raises:
SaaS
Tow4Tech - A fleeting problem.
Tow4Tech raised $1.5 million led by BrightCap Ventures. Tow4Tech is building a platform for truckers that connects fleet managers with tow operators to cut downtime and boost roadside efficiency.
SaaS
BloomPath - No bugs, just blooms.
BloomPath raised $1.3 million led by Raed Ventures. BloomPath is developing an AI-powered platform that delivers real-time coaching and insights to improve team performance. Step aside, Jira.
SaaS
Faye - Supermom? No, family advisor.
Faye raised $2.5 million led by Unusual Ventures. Faye is creating an AI-powered platform to connect families with advisors to improve decision-making on anything from children’s activities to home projects to travel planning and more.
Outro🚪
Have any questions, feedback, or comments? Just reply here. We iterate and curate the newsletter according to your interests!
Some last matters of business:
If you’re a technologist (engineer or product manager / designer with a technical background) join us on the NVTC LinkedIn group if you haven’t. We’d love to have you!
Sign up here if you’re interested in co-investing with Necessary.
If you’re a startup founder, we’d love to help where we can! Brex provides full-stack finance solutions for startups. Sign up via Necessary and get bonus points.
Thanks for reading, and see you next week!
