Connect with us

Business

Exclusive: Touring Capital, founded by ex-M12 and SoftBank investors, closes $330 million first fund

Published

on



In August, a bombshell MIT study rippled through venture capital.

The survey suggested that generative AI pilots are failing 95% of the time, a jarring proposition at a time when VCs, startups, and incumbents are plowing billions into “deploying AI.” Samir Kumar, general partner at Touring Capital and previously a CVC veteran, is well-equipped to parse what’s happening here. 

“The reaction is: ‘Oh my God, this is all hype’,” said Kumar. “‘This stuff doesn’t work. We’re wasting our time.’ Disaster, right? But if you dig into it, the real issue—and this is pervasive—is about evaluations. What are you trying to accomplish, and how do you evaluate it? And that’s an organizational issue and a process issue. You have to understand the limitations of where we are with what AI can do, effectively benchmarking and evaluating from there: Is this effective or not?”

This is a question that, on some level, Kumar, Nagraj Kashyap, and Priya Saiprasad expressly started Touring in 2023 to answer. The group came together over decades, weaving across each other in the realm of corporate venture capital—Kashyap and Kumar were at Qualcomm Ventures together, while Kashyap, Kumar, and Saiprasad all connected at Microsoft’s M12, and Kashyap and Saiprasad synced up at SoftBank Vision Fund II. This background, doing venture capital for corporate giants, gives Touring a unique set of touchpoints.

“At Microsoft, the one thing Satya used to talk about all the time, and that we all internalized, is the growth mindset,” said Kashyap. “So, we come into the office saying we’re going to learn something new every day. We’re not know-it-alls, we are learn-it-alls.”

Touring has now closed its first fund at $330 million, Fortune has exclusively learned. As they’ve raised this first fund, they’ve also done 12 investments, including in Numa, Cusp, and Exaforce. The firm also led the $33 million Series B in trust center platform SafeBase, which was acquired by Drata in February. 

“We go after the large, deep pain-point verticals, and then we see where AI-enabled software could actually help generate customer value,” Saiprasad said. “That’s the core of what we do, versus necessarily investing at the hype layer of foundation models. We tend to stay away from that side of the house.”

The Touring team doesn’t make any bones about it—they’re investing in the fervor of a hype cycle. In fact, the idea for Touring came amid another hype cycle’s crash, in 2022, when the group decided to start a VC because the tech market had just collapsed, with software valuations dropping by over 80% just as AI consumer adoption was starting to take hold. 

“We’ve seen what we call bubbles formed during the early parts of a tech flash function,” said Kashyap. “I think AI will be very, very wealth-creating for the economy, for everybody else. It’s just in the beginning, so everybody sort of rushes into the gold rush it is now. So, we’ve picked our spots on the app side and that’s how we’re viewing the landscape.”

See you tomorrow,

Allie Garfinkle
X:
@agarfinks
Email: alexandra.garfinkle@fortune.com
Submit a deal for the Term Sheet newsletter here.

Joey Abrams curated the deals section of today’s newsletter. Subscribe here.

Venture Deals

WeTravel, a San Francisco-based operating system for multi-day travel businesses, raised $92 million in Series C funding. Sapphire Ventures led the round and was joined by Left Lane Capital, Base10, Cross Creek, and angel investors.

Fetcherr, a Tel Aviv, Israel-based developer of an AI market engine for airline companies, raised $42 million in Series C funding. Salesforce Ventures led the round and was joined by existing investors Battery Ventures, Left Lane Capital, and M-Fund.

Mimica, a London, U.K.-based process intelligence company, raised $26.2 million in Series B funding. Paladin Capital Group led the round and was joined by Khosla Ventures, LGVP, and Entrepreneur First.

Corintis, a Lausanne, Switzerland-based developer of technology designed to manage the heat produced by computer chips, raised $24 million in Series A funding. BlueYard Capital led the round and was joined by Founderful, Acequia Capital, Celsius Industries, XTX Ventures, and others.

Synthesized, a London, U.K. and New York City-based provider of test data and infrastructure for enterprises, raised $20 million in Series A funding. Redalpine led the round and was joined by IQ Capital, Mercia Ventures, and UBS.

Cosmoserve Space, a Hyderabad, India-based space debris removal company, raised $3.2 million in pre-seed funding. Alan Rutledge led the round and was joined by AUM Ventures, Shakti VC, and Ram Shriram.

Trismik, a Cambridge, U.K.-based LLM evaluation platform for AI builders, raised £2.2 million ($3 million) in pre-seed funding. Twinpath Ventures led the round and was joined by Cambridge Enterprise Ventures, Parkwalk Advisors, Fund F, Vento Ventures, and angel investors.

Private Equity

Battery Ventures agreed to lead a majority investment in Signal AI, a London, U.K.-based risk and reputation intelligence platform, worth $164 million.

3DR Labs, a portfolio company of Arsenal Capital Partners, acquired Strings, a Sacramento, Calif.-based workload monitoring and automation platform focused on health care institutions. Financial terms were not disclosed.

BNP Associates, backed by Godspeed Capital, acquired Studdiford Technical Solutions, an Alexandria, Va.-based consulting firm specializing in airport systems development and transportation security. Financial terms were not disclosed.

CleanWater1, backed by Baird Capital, acquired PureAir Filtration, an Atlanta, Ga.-based provider of air purification and gas-phase filtration services. Financial terms were not disclosed.



Source link

Continue Reading

Business

Epstein grand jury documents from Florida can be released by DOJ, judge rules

Published

on



A federal judge on Friday gave the Justice Department permission to release transcripts of a grand jury investigation into Jeffrey Epstein’s abuse of underage girls in Florida — a case that ultimately ended without any federal charges being filed against the millionaire sex offender.

U.S. District Judge Rodney Smith said a recently passed federal law ordering the release of records related to Epstein overrode the usual rules about grand jury secrecy.

The law signed in November by President Donald Trump compels the Justice Department, FBI and federal prosecutors to release later this month the vast troves of material they have amassed during investigations into Epstein that date back at least two decades.

Friday’s court ruling dealt with the earliest known federal inquiry.

In 2005, police in Palm Beach, Florida, where Epstein had a mansion, began interviewing teenage girls who told of being hired to give the financier sexualized massages. The FBI later joined the investigation.

Federal prosecutors in Florida prepared an indictment in 2007, but Epstein’s lawyers attacked the credibility of his accusers publicly while secretly negotiating a plea bargain that would let him avoid serious jail time.

In 2008, Epstein pleaded guilty to relatively minor state charges of soliciting prostitution from someone under age 18. He served most of his 18-month sentence in a work release program that let him spend his days in his office.

The U.S. attorney in Miami at the time, Alex Acosta, agreed not to prosecute Epstein on federal charges — a decision that outraged Epstein’s accusers. After the Miami Herald reexamined the unusual plea bargain in a series of stories in 2018, public outrage over Epstein’s light sentence led to Acosta’s resignation as Trump’s labor secretary.

A Justice Department report in 2020 found that Acosta exercised “poor judgment” in handling the investigation, but it also said he did not engage in professional misconduct.

A different federal prosecutor, in New York, brought a sex trafficking indictment against Epstein in 2019, mirroring some of the same allegations involving underage girls that had been the subject of the aborted investigation. Epstein killed himself while awaiting trial. His longtime confidant and ex-girlfriend, Ghislaine Maxwell, was then tried on similar charges, convicted and sentenced in 2022 to 20 years in prison.

Transcripts of the grand jury proceedings from the aborted federal case in Florida could shed more light on federal prosecutors’ decision not to go forward with it. Records related to state grand jury proceedings have already been made public.

When the documents will be released is unknown. The Justice Department asked the court to unseal them so they could be released with other records required to be disclosed under the Epstein Files Transparency Act. The Justice Department hasn’t set a timetable for when it plans to start releasing information, but the law set a deadline of Dec. 19.

The law also allows the Justice Department to withhold files that it says could jeopardize an active federal investigation. Files can also be withheld if they’re found to be classified or if they pertain to national defense or foreign policy.

One of the federal prosecutors on the Florida case did not answer a phone call Friday and the other declined to answer questions.

A judge had previously declined to release the grand jury records, citing the usual rules about grand jury secrecy, but Smith said the new federal law allowed public disclosure.

The Justice Department has separate requests pending for the release of grand jury records related to the sex trafficking cases against Epstein and Maxwell in New York. The judges in those matters have said they plan to rule expeditiously.

___

Sisak reported from New York.



Source link

Continue Reading

Business

Miss Universe co-owner gets bank accounts frozen as part of probe into drugs, fuel and arms trafficking

Published

on



Mexico’s anti-money laundering office has frozen the bank accounts of the Mexican co-owner of Miss Universe as part of an investigation into drugs, fuel and arms trafficking, an official said Friday.

The country’s Financial Intelligence Unit, which oversees the fight against money laundering, froze Mexican businessman Raúl Rocha Cantú’s bank accounts in Mexico, a federal official told The Associated Press on condition of anonymity because he was not authorized to comment on the investigation.

The action against Rocha Cantú adds to mounting controversies for the Miss Universe organization. Last week, a court in Thailand issued an arrest warrant for the Thai co-owner of the Miss Universe Organization in connection with a fraud case and this year’s competition — won by Miss Mexico Fatima Bosch — faced allegations of rigging.

The Miss Universe organization did not immediately respond to an email from The Associated Press seeking comment about the allegations against Rocha Cantú.

Mexico’s federal prosecutors said last week that Rocha Cantú has been under investigation since November 2024 for alleged organized crime activity, including drug and arms trafficking, as well as fuel theft. Last month, a federal judge issued 13 arrest warrants for some of those involved in the case, including the Mexican businessman, whose company Legacy Holding Group USA owns 50% of the Miss Universe shares.

The organization’s other 50% belongs to JKN Global Group Public Co. Ltd., a company owned by Jakkaphong “Anne” Jakrajutatip.

A Thai court last week issued an arrest warrant for Jakrajutatip who was released on bail in 2023 on the fraud case. She failed to appear as required in a Bangkok court on Nov. 25. Since she did not notify the court about her absence, she was deemed to be a flight risk, according to a statement from the Bangkok South District Court.

The court rescheduled her hearing for Dec. 26.

Rocha Cantú was also a part owner of the Casino Royale in the northern Mexican city of Monterrey, when it was attacked in 2011 by a group of gunmen who entered it, doused gasoline and set it on fire, killing 52 people.

Baltazar Saucedo Estrada, who was charged with planning the attack, was sentenced in July to 135 years in prison.



Source link

Continue Reading

Business

Elon Musk’s X fined $140 million by EU for breaching digital regulations

Published

on



European Union regulators on Friday fined X, Elon Musk’s social media platform, 120 million euros ($140 million) for breaches of the bloc’s digital regulations, in a move that risks rekindling tensions with Washington over free speech.

The European Commission issued its decision following an investigation it opened two years ago into X under the 27-nation bloc’s Digital Services Act, also known as the DSA.

It’s the first time that the EU has issued a so-called non-compliance decision since rolling out the DSA. The sweeping rulebook requires platforms to take more responsibility for protecting European users and cleaning up harmful or illegal content and products on their sites, under threat of hefty fines.

The Commission, the bloc’s executive arm, said it was punishing X because of three different breaches of the DSA’s transparency requirements. The decision could rile President Donald Trump, whose administration has lashed out at digital regulations, complained that Brussels was targeting U.S. tech companies and vowed to retaliate.

U.S. Secretary of State Marco Rubio posted on his X account that the Commission’s fine was akin to an attack on the American people. Musk later agreed with Rubio’s sentiment.

“The European Commission’s $140 million fine isn’t just an attack on @X, it’s an attack on all American tech platforms and the American people by foreign governments,” Rubio wrote. “The days of censoring Americans online are over.”

Vice President JD Vance, posting on X ahead of the decision, accused the Commission of seeking to fine X “for not engaging in censorship.”

“The EU should be supporting free speech not attacking American companies over garbage,” he wrote.

Officials denied the rules were intended to muzzle Big Tech companies. The Commission is “not targeting anyone, not targeting any company, not targeting any jurisdictions based on their color or their country of origin,” spokesman Thomas Regnier told a regular briefing in Brussels. “Absolutely not. This is based on a process, democratic process.”

X did not respond immediately to an email request for comment.

EU regulators had already outlined their accusations in mid-2024 when they released preliminary findings of their investigation into X.

Regulators said X’s blue checkmarks broke the rules because on “deceptive design practices” and could expose users to scams and manipulation.

Before Musk acquired X, when it was previously known as Twitter, the checkmarks mirrored verification badges common on social media and were largely reserved for celebrities, politicians and other influential accounts, such as Beyonce, Pope Francis, writer Neil Gaiman and rapper Lil Nas X.

After he bought it in 2022, the site started issuing the badges to anyone who wanted to pay $8 per month.

That means X does not meaningfully verify who’s behind the account, “making it difficult for users to judge the authenticity of accounts and content they engage with,” the Commission said in its announcement.

X also fell short of the transparency requirements for its ad database, regulators said.

Platforms in the EU are required to provide a database of all the digital advertisements they have carried, with details such as who paid for them and the intended audience, to help researches detect scams, fake ads and coordinated influence campaigns. But X’s database, the Commission said, is undermined by design features and access barriers such as “excessive delays in processing.”

Regulators also said X also puts up “unnecessary barriers” for researchers trying to access public data, which stymies research into systemic risks that European users face.

“Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU. The DSA protects users,” Henna Virkkunen, the EU’s executive vice-president for tech sovereignty, security and democracy, said in a prepared statement.

The Commission also wrapped up a separate DSA case Friday involving TikTok’s ad database after the video-sharing platform promised to make changes to ensure full transparency.

___

AP Writer Lorne Cook in Brussels contributed to this report.



Source link

Continue Reading

Trending

Copyright © Miami Select.