AI-Driven Enterprises Seek Massive Capital Infusion
The surge in funding for AI startups across diverse sectors, such as security, legal tech, and customer service, indicates a strategic shift towards embedding AI capabilities in core business operations. This trend signals an increasing maturity in the enterprise AI market, where organizations are not just adopting AI but are investing heavily to enhance their competitive edge and operational efficiency. As companies like Verkada, Harvey, and Parloa secure significant valuations, the focus on AI integration is poised to disrupt traditional business models and create new opportunities for innovation and growth.
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German AI startup Parloa said to seek about $200 million in new funding at up to $3 billion valuation
Bloomberg reports that Berlin‑ and New York‑based customer‑service AI startup Parloa is in talks to raise roughly $200 million in fresh capital at a valuation in the $2–3 billion range, more than doubling the $1 billion valuation it announced for its Series C round in May. The company, which builds agentic AI systems for large enterprise contact centers, is said to be speaking with investors including General Catalyst, although no deal has yet been finalized. ([bloomberg.com](https://www.bloomberg.com/news/articles/2025-12-05/ai-startup-parloa-said-to-seek-200-million-in-new-funding-round))
Legal AI startup Harvey confirms US$160 million round led by a16z at US$8 billion valuation
Harvey, a San Francisco–based legal AI platform, has confirmed a new US$160 million investment led by Andreessen Horowitz that values the company at US$8 billion, following earlier US$300 million rounds in February and June. The funding, which also involves investors such as T. Rowe Price–advised accounts, WndrCo, Sequoia and Kleiner Perkins, will support expansion of Harvey’s products for law firms and in‑house legal teams and includes its first tender offer to provide liquidity to employees.
Phoebe Gates’ AI shopping startup Phia raising US$30 million at US$180 million valuation
Phia, an AI‑powered shopping assistant co‑founded by Phoebe Gates and Sophia Kianni, is raising US$30 million in new funding that will value the New York–based startup at about US$180 million. The round, led by Notable Capital with participation from Kleiner Perkins and Khosla Ventures, will help Phia expand its AI agent that compares prices, tracks discounts and personalizes shopping across tens of thousands of retailers.
AI finance startup Flex raises $60 million Series B to serve mid-sized ‘jumbo shrimp’ businesses
U.S.-based AI startup Flex has raised a $60 million Series B round led by Portage Ventures, valuing the company at around $500 million and bringing its total equity funding to $105 million. Flex uses AI to bundle private credit, business and personal finance, and payment tools for mid-sized ‘jumbo shrimp’ businesses that often lack large finance teams, and will use the new capital to accelerate product development, launch a high-end Flex Elite card and expand its roughly 80-person team.
AI-powered security firm Verkada hits $5.8 billion valuation in latest funding round
Cloud and AI-based physical security company Verkada said its latest investment round, led by Alphabet’s growth fund CapitalG, values the firm at $5.8 billion, up from $4.5 billion in its prior round. The San Mateo-based company, which offers AI-driven cameras, access control and environmental sensors on a unified platform, plans to use the funding to accelerate its AI capabilities and may provide liquidity for employees.