Some of California's most prominent venture capitalists have a proclivity for slamming their state, arguing that fiscal mismanagement and high taxes will cause startups to form elsewhere.

• So far that doesn't seem to be happening.

For the record, I live in Massachusetts and my mother worked on Route 128 back when that meant something.

• I've got no dog in this fight, but I do have data.

California startups raised a whopping 62% of all U.S. venture capital dollars in 2025, per the PitchBook-NVCA Venture Monitor.

• That's above either 2024 (54.2%) or 2023 (46.9%), and even the decade-earlier mark of 47.2%.

Yes, a big part of that is skewed by giant raises for AI giants like OpenAI, Anthropic, and Databricks.

• So I also looked at the number of startups funded — regardless of round size — and California still easily retains its lead.
• The state is home to 31.5% of U.S. VC deals last year, compared to 31.7% in 2024 and 29.1% in 2023. In 2015, California's market share was 32.5%.
• For context, the runner-up in 2025 was New York with 13.3%. Massachusetts was next, just ahead of Texas — both below 6%.

The bottom line: California's crown may be tarnished on social media. On spreadsheets, however, it still sparkles.

The U.S. government has agreed to buy an equity stake in USA Rare Earths (Nasdaq: USAR), an Oklahoma-based company that plans to mine for rare earths and manufacture magnets, via a $1.6 billion non-binding agreement that includes both loans and CHIPS Act funding.

• USA Rare Earths also agreed to a $1.5 billion PIPE led by Inflection Point, the SPAC sponsor that helped take the company public last year.

Why it's the BFD: The supply chain will be socialized.

Zoom in: Both the U.S. government and Inflection Point would buy in at significant discounts to USA Rare Earth's closing price last Friday.

• It's unclear where Inflection Point is getting its money, as its SEC registration statement from just last week lists only one fund with gross asset value of $120 million.
• USA Rare Earth — led by former Siemens U.S. CEO Barbara Humpton — worked on the PIPE with Cantor Fitzgerald, the firm once led by U.S. Commerce Secretary Howard Lutnick and now led by his son Brandon. But it says the government negotiations advised on the government transaction, and that the LOI was signed yesterday.

The bottom line: "Staking the Oklahoma-based firm is among the most aggressive Trump administration steps to ease China's stranglehold on supply chains for the materials needed in key defense and industrial applications." — Ben Geman, Axios

• Ricursive Intelligence, a new frontier AI lab, raised $300m at a $4b post-money valuation. Lightspeed led, joined by DST Global, NVentures, Felicis Ventures, 49 Palms, Radical AI, and Sequoia Capital. axios.link/49ISZ0E

• Upwind Security, an SF-based cloud security startup, raised $250m at a $1.5b valuation. Bessemer Venture Partners led, joined by Salesforce Ventures, Picture Capital and insiders Greylock, Cyberstarts, Leaders Fund, Craft Ventures, TCV, Alta Park, Cerca Partners, Swish Ventures, and Penny Jar Capital. axios.link/45y4t4J

• Synthesia, a London-based B2B AI video generation platform, raised $200m in Series E funding at a $4b valuation. Insider GV led, joined by Evantic, Hedosophia, NVentures, Accel, Kleiner Perkins, NEA, PSP Growth, Air Street Capital, and MMC Ventures. axios.link/49RTWm3

• DeepWay Technology, a Chinese-based maker of heavy-duty trucking tech, raised around $173m in pre-IPO funding from ABC Impact, Lenovo Capital, Sunwoda Electronics, and Puhua Capital. axios.link/4q1YDzX

⚡ Standard Nuclear, an Oak Ridge, Tenn.-based producer of TRISO nuclear fuel, raised $140m in Series A funding. Decisive Point led, joined by Chevron Technology Ventures, StepStone Group, XTX Ventures, and insiders Welara, Fundomo, a16z, Washington Harbour Partners, and Crucible Capital. axios.link/4qFTmPt

• Juspay, an Indian payments infrastructure provider for enterprises and banks, raised $50m in Series D extension funding led from WestBridge Capital at around a $1.2b valuation. axios.link/4abYLrM

• Visitt, an Israeli property operations platform, raised $22m in Series B funding, per Axios Pro. Susquehanna Growth Equity led, joined by Vertex Ventures, Anfield, and Sarona Ventures. axios.link/4bRKYYF

⚡ GlassPoint, an NYC-based seller of solar-generated steam for industrial use, raised $20m in Series A extension funding, per Axios Pro. New Investment Solutions led, joined by MIG Capital. axios.link/4pUBgYT

• Tradespace, an SF-based IP management platform, raised $15m in Series A funding, per Axios Pro. Atlantic Vantage Point led, joined by insiders Eniac Ventures, Amplo VC, and Scrum Ventures. axios.link/3M5Wght

• Mine, a credit card startup focused on young adults, raised $14m in Series A funding. 359 Capital led, joined by Kleiner Perkins,. FJ Labs, YC, and U.S. News & World Report. axios.link/4k2u8s7

• Jelou, a builder of AI agents that execute financial workflows inside messaging apps, raised a $10 million Series A funding, per Axios Pro. Wellington Access Ventures led, joined by Krealo, Credicorp, and Collide Capital. axios.link/4pZyYI6

• Symbiotic Security, a NYC-based code security startup, raised $10m in seed funding. Alven led, joined by Lerer Hippeau and Axeleo. axios.link/4q1sBnA

• Stamp, a Madrid-based fintech focused on tax-free shopping solutions, raised €4m. Dozen led, joined by EBISU Digital and Barça Innovation Hub. axios.link/3YWdhh9

• Kime, Copenhagen-based AI marketing dashboard for brands, raised €2m in pre-seed funding. PSV Tech led, joined by Nordic Makers. axios.link/49TsX9Q

• Altor Equity Partners and HSG are considering bids for Blackstone-backed Leica Camera, a German camera maker that could fetch around €1b, per Bloomberg. axios.link/4pYC4vY

• Brentwood Associates and Tenex Capital Management recapped Perennial Services Group, a Pittsburgh-based provider of lawn care, pest control, landscaping, and arbor services. axios.link/4sThuQd

🚑 Bridgepoint and Triton Partners are weighing £1.5b bids for U.K. private hospital chain Spire Healthcare (LSE: SPI), per Sky News. axios.link/49WUhUK

• CVC Capital Partners agreed to acquire Marathon Asset Management for up to $1.2b, including $400m in upfront cash, as part of a private credit push. axios.link/4qHBPqr

• Frontline Road Safety, a portfolio company of Bain Capital, acquired American Roadway Logistics, a Norton, Ohio-based provider of pavement marking and traffic maintenance services, from Monroe Street Partners. axios.link/4pWfbsY

• KPS Capital Partners agreed to acquire a control stake in Novacel, a French maker of surface protection solutions, from Compagnie Chargeurs Invest (Paris: CRI). axios.link/4bjKLNO

• Power Sustainable Lios acquired Canadian jams maker Croster's Organic, with BMO Capital Partners, Farm Credit Canada, and the founder Latka family also participating. axios.link/3M73SQR

• Southfield Capital acquired Contextual.io, a Guilford, Conn.-based AI orchestration platform. axios.link/4rbNFZo

Four companies plan to go public this week on U.S. exchanges: York Space Systems, PicS, Ethos Technologies, and PPHC.

• Archimedes Tech SPAC Partners III, a SPAC led by Eric Ball (Impact Venture Capital), raised $240m in an upsized IPO. axios.link/45qDvM9

• Bob's Discount Furniture, a retailer owned by Bain Capital, set IPO terms to 19.45m shares at $17-$19. It would have a $2.35b market cap, were it to price in the middle, reports $86m of profit on $1.7b in revenue for the first nine months of 2025, and plans to list on the (NYSE) BOBS). axios.link/4qFPHRJ

⚡ Forgent Power Solutions, a Dayton, Minn.-based maker of electrical distribution equipment for data centers and industrial facilities, set IPO terms to 56m shares at $26-$29. It would have an $8.4 market cap, were it to price in the middle. The company is owned by Neos Partners, reports $17m of net income on $753m in revenue for the fiscal year ending last June 30, and plans to list on the NYSE (FPS). axios.link/3LKqZRb

🚑 Helix Acquisition III, a health-care SPAC formed by Cormorant Asset Management, raised $140m in an upsized IPO. axios.link/48YkBOT

• Once Upon a Farm, a Berkeley, Calif.-based producer of organic baby food, set IPO terms to nearly 11m shares at $17-$19. It would have a $724m market cap, were it to price in the middle, and reports a $38m net loss on $177m of revenue for the first nine months of 2025. It plans to list on the NYSE (OFRM) and had raised nearly $100m from CAVU, Cambridge Cos., Access Capital, S2G Investments, Beechwood Capital, and co-founder Jennifer Garner. axios.link/3Lz1qm7

• Google acquired Common Sense Machines, a Cambridge, Mass.-based 3D image generator startup that had raised around $10m from firms like Tirta Ventures and a16z, per The Information. axios.link/4qMeXpM

• Waterland hired Houlihan Lokey to explore a sale of Xebia, a Dutch AI consultancy that could fetch €1b, per Bloomberg. axios.link/4pTYPB7

• EP Group, led by Daniel Kretinsky, offered to acquire French consumer electronics and hood goods retailer Fnac Darty (Paris: FNAC) for €1.05b. axios.link/3ZjxBcx

• ETS, a nonprofit that owns the GRE and Toefl exams, is in talks to sell the tests for around $500m or find strategic investors, per the WSJ. axios.link/3NC5KBz

• IonQ (NYSE: IONQ) agreed to buy Bloomington, Minn.-based chipmaker SkyWater Technology (Nasdaq: SKYT) for around $1.8b, or $35 per share (12% premium over Friday's close). axios.link/4k2ekWj

• SoftBank scrapped talks over a $50b acquisition of Switch, a Las Vegas-based data center operator, whose backers include IFM Investors and DigitalBridge (which just agreed to be acquired by SoftBank), per Bloomberg. axios.link/3O5SDbS

• Thyssenkrupp of Germany is weighing the sale of a 30% stake in its Rothe Erde bearings unit, which could have around a €1.5b enterprise value, per Reuters. axios.link/4bOVnnV

⚡ Tokyo Electric Power (Tokyo: 9501) plans to sell around $1.3b of assets via a new restructuring plan, per Nikkei. axios.link/49Tu09M

🌍 2150, a London-based VC firm focused on sustainability and climate-tech, raised €210m for its second fund. axios.link/45wsglt

• Social Leverage raised $85m for its fifith seed-stage fund. axios.link/4acrRqW

• Benefit Street Partners promoted senior managing director Allison Davi to co-COO. axios.link/3O4TTMr

• Bitkraft Ventures promoted investor Justin Swart to partner. axios.link/4sXjbvY

• Emergence Capital promoted Lotti Siniscalco to general partner, Kyle Murphy to rincipal and Thomas Kim to head of investment operations. axios.link/4jZn4wj

• Luminate Capital promoted Max Horland to principal. axios.link/49WL132

• Mayfair Equity Partners promoted Aryo Tehranian to managing director. axios.link/4rbxJq2

Gold prices topped $5,000 overnight for the first time ever, driven by geopolitical tensions and new concerns about an impending government shutdown.

• Everyone seems to be flying to safety, with at least one bank analyst predicting a $6,000 gold price by year-end.
• Silver also is surging, while the U.S. dollar is slumping.

There's also related deal news today, with Zijin Mining Group of China agreeing to buy Allied Gold, a Canadian operator of gold mines in Africa, for C$5.5 billion.

• "This is a level of deep, gravitational pull towards the precious not seen since Middle-earth," jokes Sherwood News' Luke Kawa.