Inside Neeka Mashouf's Cofounding Journey @ Rubi Labs
Mar 26, 2025
Kaley Ubellacker
Market Stirrings 🚩
Here's what the week looked like in pre-seed:
$19.1M
26
Data aggregated from proprietary research and Crunchbase; valuation estimate based on 10-20% ownership stake.
FOUNDER SPOTLIGHT
This week, we caught up with Neeka Mashouf, CEO and cofounder of Rubi Laboratories, to hear about her journey as a founder. Rubi is rapidly reshaping the manufacturing industry with its sustainability-driven approach. Neeka takes us behind the scenes of developing that mission, assembling the right team, and the key lessons she’s picked up along the way. Dive into her full interview in this week’s spotlight.
GRADUATION CAPS IN LOW DEMAND
Startups are struggling to graduate. Recent seed-stage cohorts, especially those that raised rounds in 2022, have fallen significantly behind historical graduation rates, with only 17% securing a Series A after two years. This delay may be driven by many companies facing difficulty in raising additional funding, though some may be prioritizing profitability instead.
Good Reads 📖
For the rushed reader …
23andMe, the company famous for turning spit into ancestry and health insights, filed for bankruptcy.
According to a recent PitchBook report, companies backed by well-connected lead investors have failure rates at least 10 percentage points lower than those with peripheral investors.
Wiz was just acquired by Alphabet for a modest $32 billion, and early backers like Cyberstarts and Sequoia Capital are seeing massive returns.
For the less rushed reader …
Barely staying s-alive-a
Unfortunately, all the ancestors in the world couldn’t keep 23andMe from its fate. 23andMe, the company famous for turning spit into ancestry and health insights, filed for bankruptcy, leaving its 15 million customers asking, "What happens to my genetic data now?" With no recurring revenue stream from repeat DNA tests, the company’s financial struggles were inevitable. While 23andMe promises any buyer will follow privacy laws, the lack of federal data protections leaves a gray area. California’s Attorney General is urging customers to delete their data; however, for customers that opted in to sharing their data for research, it’s too late to take it back. I’m just spitballing here, but maybe think twice before you spit in a tube.
Caught in a network
The age-old VC saying strikes again: it’s not just about the money, it’s about who you know. According to a recent PitchBook report, companies backed by well-connected lead investors have failure rates at least 10 percentage points lower than those with peripheral investors. The gap widens further for later-stage investments. PitchBook attributes this difference to the power of networking: well-connected VCs leverage their ecosystems to open doors, boost deal flow, and reduce risk. At the Series D stage and beyond, these investors see failure rates as low as 4%, while their less-connected peers hover around 15%. When it comes to finding the right investor, look for the one with the tightest handshake, and maybe a few too many business cards.
An investment wizzing by
I’m not a Wiz-ard, but a 200x return on a $6 million investment sounds like pure magic. Wiz was just acquired by Alphabet for a modest $32 billion, and early backers like Cyberstarts and Sequoia Capital are seeing massive returns. Cyberstarts, a VC firm focused on early-stage cybersecurity investments, turned a $6.4 million seed investment into around $1.3 billion, a jaw-dropping 222x return. While Sequoia’s returns aren’t quite as mind-blowing, they’re still impressive. The firm is set to pocket about $3 billion from a $120 million investment, translating to a 25x return. This acquisition underscores the immense potential of early-stage investments in the cybersecurity sector, a field that saw a 35% increase in VC funding in North America and Europe in Q4 2024 compared to the previous year. In cybersecurity, the early worms really do catch the billion-dollar birds.
Fire Up the Pre-Seeds🔥
Highlights from this week’s pre-seed raises:
climatetech
BlueShift - Minerals to the max.
BlueShift raised $2.1 million from ConocoPhillips Company, Ridgeline, and the Massachusetts Clean Energy Center, with participation from others. BlueShift is building electrochemical systems to extract critical minerals from waste and seawater, while simultaneously removing CO2 from the ocean.
healthtech
Pilgrim - Bio on the battlefield.
Pilgrim raised $3.25 million led by Thiel Capital. Pilgrim is developing AI-driven biotech solutions for defense applications, including vaccines and wound-healing adhesives.
legaltech
CaseBlink - Case closed on inefficiency.
CaseBlink raised $2 million from the Entrepreneurs Roundtable Accelerator, Colopl Next, Fakhoury Global Immigration, Switch Ventures, and Tower Research Capital. CaseBlink is developing an AI-powered, end-to-end case preparation tool for immigration attorneys.
AI
Hunted Labs - New sheriff in cyberspace.
Hunted Labs raised $3 million from Red Cell Partners. Hunted Labs is developing an AI-powered platform that provides automated threat management, giving organizations full visibility and control over their software supply chains.
Outro🚪
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Thanks for reading, and see you next week!
