Garden Research: Weekly Recap #8
A deep-dive on Merly, a company rethinking the approach to machine programming, plus a recap of seed activity last week.
Hey Everyone,
Happy Wednesday. For those who are new here, every week I deliver a recap of the activity in the US seed ecosystem, a full list of every completed round, and a deep dive into a company I find interesting. If you’re interested in following along, click below.
A predominant majority of software being pushed today is at least partially generated by AI. In 2023, 92% of polled U.S. developers reported using AI-powered coding tools, and at Google, AI is now responsible for generating 25% of all new code.
This acceleration in AI-generated code creates an interesting challenge. While AI can write code quickly, who's verifying it actually works as intended? For years, software development has been intensely human-driven, with engineers meticulously reviewing every line. Now, with AI writing millions of lines of code, the chance for technical debt, security vulnerabilities, and misaligned logic is accumulating at an unprecedented rate.
The problem stems from how current AI coding tools work. These LLM-based systems essentially operate as sophisticated pattern-matching engines, predicting the most likely code based on training data. They don't truly understand logic or intent - they're just really good at guessing what code should come next.
Merly AI, which raised $7M from Greycroft and IBM Ventures, is taking a fundamentally different approach. Rather than using LLMs, they've built a deterministic AI reasoning engine specifically for code analysis. Their system deeply understands code structure and logic, as well as the intent behind it, providing consistent, verifiable results rather than probabilistic predictions.
The implications go beyond just code verification. By building a deterministic engine that truly understands code, Merly could evolve from just validation and de-bugging to challenging the coding platforms dominating the market today.
Full analysis linked below:
Last week, 53 companies raised Seed capital or announced a raise in the U.S. 🌱
Quick Stats 📈
Total Funding: $155M
Highest Round: $10M
Lowest Round: $30k
Average Round: $3.4M
Top Raisers 💰
Ember Software: Comprehensive platform designed to streamline fire inspection workflows for fire protection companies. Their solution includes customizable NFPA and state-specific digital forms, centralized data management, real-time communication tools, and smart proposal generation, all aimed at enhancing efficiency, reducing manual tasks, and improving service delivery. Raised $10M in a round led by 8VC.
Lanai: AI Empowerment Platform that enables organizations to harness artificial intelligence effectively while maintaining robust governance. The platform provides real-time visibility into AI usage, helping teams innovate securely and scale AI adoption confidently across the enterprise. Raised $10M in a round led by Juxtapose.
Palona: Develops advanced AI agents designed to enhance customer engagement for direct-to-consumer and other consumer-facing businesses. These agents learn about individual customers, adapt to their needs, and provide personalized interactions to drive sales and build brand loyalty. Raised $10M in a round led by UpHonest Capital.
VIAVIA: Online fashion platform that curates new designers and products, aiming to redefine the shopping experience for a new generation. The platform offers free shipping and returns on all orders, providing a seamless and customer-friendly shopping experience. Raised $10M in a round led by undisclosed investors.
DryRun Security: Contextual security analysis tool that helps development teams identify critical code and architecture changes. By uncovering risks that traditional static application security testing (SAST) tools might miss, it enables developers to address vulnerabilities proactively. Raised $8.7M in a round led by LiveOak Ventures.
My Favorites 🕺
Spaceium - Raised $5M in a deal led by Initialized Capital Management
Spaceium is developing fully automated, modular in-orbit service stations to refuel, repair, and support spacecraft, extending mission durations and reducing operational costs. Their technology includes advanced cryogenic and non-cryogenic fuel storage systems, a modular robotic arm for fuel transfer and repairs, and a scalable infrastructure to support deep-space exploration. By enabling on-orbit servicing and resource transfer, Spaceium aims to create a "space superhighway" that facilitates sustainable space travel from Earth to the Moon and beyond.
Addis Energy - Raised $4.25M in a round led by Engine Ventures
Addis Energy is pioneering a novel approach to clean ammonia production by utilizing the Earth's subsurface as a chemical reactor. Their technology involves injecting engineered fluids into iron-rich underground formations, leveraging natural heat and pressure to facilitate reactions that generate hydrogen, which subsequently combines with nitrogen to form ammonia. This method offers a carbon-free, net energy-positive alternative to traditional ammonia synthesis, aiming to reduce costs and environmental impact.
Almanax - Raised $1.5M in a round led by Defy Partners Management
Almanax is a New York-based startup specializing in AI-powered security solutions for the Web3 ecosystem. Their flagship product, the Almanax Security Engineer, automatically scans codebases for vulnerabilities, providing rapid security recommendations directly within CI/CD pipelines and GitHub repositories. By leveraging advanced AI and large language models, Almanax aims to offer in-house security capabilities that reduce reliance on third-party audits, addressing industry challenges such as high costs, lengthy wait times, and the prevalence of hacks even after manual reviews.
Farmblox - In the process of raising Seed Funding
Farmblox offers a comprehensive farm automation system that connects equipment and in-field sensors to the internet, enabling farmers to monitor and manage their operations remotely via a user-friendly app. The platform supports a variety of sensors and controllers, allowing for customizable solutions tailored to specific farm needs, such as vacuum pressure monitoring, sap tank management, and soil moisture tracking. Designed for durability and ease of use, Farmblox's modular ecosystem is suitable for farms of all sizes and types, enhancing efficiency and productivity across agricultural operations.
You can find the full list of startups that raised seed capital last week linked here
Seeya next week!