Atoms raises $1.7B to lead week of physical AI, defense bets

Key Takeaways

• Atoms, founded by Uber's Travis Kalanick, closed a $1.7B round led by Andreessen Horowitz for physical AI
• Defense tech startup Cathedral raised $160M, reportedly founded by former DOGE employees
• The week's top 10 rounds totaled over $3.6B across physical AI, biotech, fintech, and cybersecurity

The week ending July 24, 2026, saw $1.7 billion flow into Travis Kalanick's physical AI startup Atoms, making it the largest U.S. venture round of the week by a wide margin. The top 10 startup funding rounds totaled over $3.6 billion, spanning physical AI, battery technology, defense, biotech, and cybersecurity.

Andreessen Horowitz led the Atoms round, backing Kalanick's vision of what he called "the coming industrial revolution where large industrial economic sectors get completely digitized." The Los Angeles-based company is Kalanick's first major venture since departing Uber.

Which sectors attracted the most capital this week?

Physical AI dominated the week, but the diversity of sectors receiving $100 million or more signals broad investor appetite. Meshy AI, a Silicon Valley company building foundation models for 3D generation, closed $400 million in Series B funding at a $1.5 billion valuation. Lead investors included Monolith Capital, IDG Capital, and Matrix Partners China.

Battery maker Sila raised $300 million from Atreides Management and Sutter Hill Ventures. The Alameda, California company plans to expand its silicon anode plant in Moses Lake, Washington. Etched, which co-designs chips, racks, and software for frontier AI models, matched that figure with a $300 million Series C led by Sequoia Capital, setting a $10 billion pre-money valuation.

Defense tech draws big checks from top VCs

Cathedral, a Washington, D.C. startup focused on expanding U.S. military cyber capabilities, reportedly raised $160 million with Sequoia Capital and Andreessen Horowitz backing. The company was reportedly founded by former DOGE employees, though details on the team remain sparse.

Defense tech has become a favored category for tier-one venture firms. Anduril's recent valuation trajectory and Cathedral's quick fundraise suggest the sector's momentum shows no sign of slowing.

Fintech and healthcare grab nine-figure rounds

Augustus, a San Francisco fintech providing direct dollar account access to global financial institutions, secured $180 million in Series B funding led by Tiger Global. The round valued the company at $1 billion. Candid Health, which builds revenue cycle management software for healthcare providers, raised $120 million in Series D funding from Sixth Street Growth.

Biotech also made the list. Crystalys Therapeutics closed an oversubscribed $130 million Series B for gout therapies, led by Frazier Life Sciences.

Cybersecurity startups launch with $175M combined

Two cybersecurity companies rounded out the week's top 10. Glow, a Palo Alto AI-powered endpoint security startup, emerged from stealth announcing $180 million raised to date, with $100 million coming from its latest round. Sequoia Capital, Cyberstarts, Greenoaks, and Redpoint led the financing.

Neo Security, based in Boston, raised $75 million for its agentic software control platform aimed at enterprises. Bessemer Venture Partners and Andreessen Horowitz led that round.

What patterns emerge from this week's deals?

Sequoia Capital and Andreessen Horowitz each appeared as lead or co-lead investors in three of the week's top 10 rounds. Physical AI and infrastructure plays claimed the largest checks, but defense and cybersecurity together accounted for $335 million across three companies. The $75 million floor for this list, down from some recent weeks, suggests a broader distribution of capital rather than a pullback.

Frequently Asked Questions

What is physical AI?

Physical AI refers to artificial intelligence systems designed to interact with and control physical environments, often through robotics, industrial automation, or real-world sensing. Kalanick describes Atoms' focus as digitizing large industrial sectors.

Who are the biggest startup investors in July 2026?

Sequoia Capital and Andreessen Horowitz led or co-led multiple rounds in the week ending July 24, 2026, appearing in three of the top 10 deals each.

How much did Atoms raise?

Atoms raised $1.7 billion in a round led by Andreessen Horowitz. The company's valuation was not disclosed.

What is Etched building?

Etched designs chips, racks, software, and manufacturing methods optimized for frontier AI models. Its Series C valued the company at $10 billion pre-money.

Are cybersecurity startups still attracting funding?

Yes. Glow and Neo Security together raised $175 million in the week ending July 24, with backing from Sequoia, Bessemer, and Andreessen Horowitz.

Source: Crunchbase News / Joanna Glasner