US startups raise $1.8B in one week: 16 deals to watch

Key Takeaways

• 16 notable deals totaled $1.8 billion in new startup funding for the week ending July 11, 2026
• AI companies dominated the round, with Norm AI reaching $256.1M total and Prime Intellect hitting $200.4M
• Construction fintech, DeFi risk management, and children's mental health attracted significant investor interest

Sixteen startups closed a combined $1.8 billion in new funding during the week ending July 11, 2026. The deals span AI infrastructure, construction fintech, DeFi protocols, and children's mental health, reflecting where VCs are placing bets as we move into the second half of the year.

Which startups raised the most?

Three names stand out. Prime Intellect, a Dover-based full-stack platform for training and deploying AI models, has now raised $200.4 million in total equity funding. Backers include Dell Technologies Capital, Intel Capital, and individual angels like Aravind Srinivas and Harrison Chase.

Norm AI, headquartered in New York, builds software that embeds legal reasoning into AI agents for automating compliance and legal tasks. The company has raised $256.1 million total, with investors including Blackstone Group, Bain Capital Ventures, Coatue, Craft Ventures, and Khosla Ventures. That roster signals serious enterprise interest in AI-powered legal automation.

Gauntlet, a Brooklyn-based DeFi risk management firm, has now accumulated $169.8 million. The company develops quantitative risk solutions for decentralized finance protocols and institutional players, with SBI Group among its backers.

Where is AI money going?

AI accounted for a significant chunk of the week's activity. Beyond Prime Intellect and Norm AI, several smaller AI-focused rounds closed.

Bespoke Labs in Mountain View raised part of its $40 million total to build AI agents through data curation and evolutionary algorithms. The 2024-founded company is backed by Mayfield Fund and Wing Venture Capital.

Katalyze AI, also in Mountain View, focuses on AI for biomanufacturing. The company has raised $10.5 million total from Bonfire Ventures, Inovia Capital, and notable angels including Gokul Rajaram.

Sector standouts: construction, healthcare, and vintage clothing

Agave raised $15 million to bring AI-driven financial operations to the construction industry. The San Francisco company, founded in 2021 by John Zucchi, Pooria Azimi, Samantha Zhang, and Tom Reno, has raised $18.4 million total. Accel and Y Combinator backed the round. Construction remains one of the least digitized major industries, making fintech plays here attractive to investors who see a large addressable market.

Healthcare drew attention in two directions. Pediatrica, a Coral Gables-based company offering healthcare services focused on geographic health systems, raised $28 million. The company was founded just last year by Roberto Palenzuela and is backed by M33 Growth and Valspring Capital.

Handspring Health in Newark raised additional funding toward its $37.2 million total. The company provides evidence-based mental healthcare for children, an area that has seen increased demand and investor interest since 2020.

In a different vertical entirely, Fleek operates a B2B marketplace connecting retailers, online resellers, and vintage clothing wholesalers. The San Francisco company has raised $46 million total, with Andreessen Horowitz, eBay, and Y Combinator among its investors. The vintage and resale market has grown rapidly as consumers seek alternatives to fast fashion.

Niche plays worth noting

Cableteque, a Huntington Beach startup building software for wire harness design, raised part of its $8.8 million total. The company was founded by Arik Vrobel in 2022. Wire harness manufacturing is a narrow vertical, but one with high complexity and limited software options.

EdVisorly, a Los Angeles-based AI enrollment platform, helps community college students transfer to four-year universities. The company has raised $13.3 million from investors including Motley Fool Ventures, U.S. News & World Report, and Strada Education Network.

Hippo Harvest in Half Moon Bay develops agricultural technology for sustainable farming. The company has raised $64 million total from Collaborative Fund, Congruent Ventures, and Cox Farms.

What does this week tell us?

AI infrastructure and AI-for-X companies continue to dominate funding. But the distribution is interesting. It's not all foundation models. Investors are backing applied AI in legal, biomanufacturing, agriculture, and education. That suggests growing confidence that AI can deliver ROI in specific verticals, not just as horizontal platforms.

Healthcare for children and construction fintech are two areas where digital penetration remains low but demand is high. Both sectors are sticky once you win customers, making them attractive despite longer sales cycles.

The DeFi risk management space, represented by Gauntlet, shows that institutional interest in crypto infrastructure hasn't disappeared. Risk management and compliance tools tend to be countercyclical: when markets get choppy, demand for them increases.

Frequently Asked Questions

How much startup funding was raised the week of July 11, 2026?

Sixteen notable deals totaled $1.8 billion in new funding across various US startup ecosystems.

Which AI startups raised the most money?

Norm AI leads with $256.1 million total raised, followed by Prime Intellect at $200.4 million. Both focus on AI infrastructure and enterprise applications.

What sectors attracted the most VC investment?

AI infrastructure, construction fintech, DeFi risk management, healthcare (particularly children's mental health), and sustainable agriculture all saw significant funding activity.

Which investors backed these startup rounds?

Notable backers include Andreessen Horowitz, Blackstone Group, Khosla Ventures, Dell Technologies Capital, Intel Capital, Accel, and Y Combinator.

Source: AlleyWatch