U.S. startup funding slows as Modal Labs leads weekly rounds with $750 million

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U.S. startup funding slows

Highlights

Modal Labs leads U.S. startup funding for Oct. 10-16 with a $750 million Series D at a $15.75 billion valuation, exceeding $1 billion annual revenue run rate.
Icon secures $200 million Series D for construction automation, targeting fourfold revenue growth by 2026, while Soufflé Therapeutics raises $135 million in biotech.
Sector mix broadens as Abby Care, Stand, and Mueon also attract $82 million, $70 million, and $65 million respectively, indicating continued investor appetite beyond AI and biotech.

Weekly funding leaderboard and sector mix

As reported by Crunchbase News, the largest announced funding round among U.S.-based startups tracked in the Crunchbase database for Oct. 10-16 goes to Modal Labs, which raises $750 million in a Series D led by Accel at a $15.75 billion valuation. The New York-based AI infrastructure company says it recently exceeds an annual revenue run rate of $1 billion.

Icon ranks second with a $200 million Series D led by Baillie Gifford and BlackRock. The Austin-based construction automation company, known for 3D-printed homes, says it is on pace for fourfold revenue growth in 2026.

Biotech also features prominently in the week’s largest rounds. Soufflé Therapeutics raises $135 million in a Series B led by Juvia Group, while Estuary Biotherapeutics launches with $103 million in financing, including a $93 million Series A led by RA Capital Management and $10 million in previously undisclosed seed capital.

AI-focused software remains active beyond Modal Labs. Labelbox secures $100 million in Series E funding led by Infinitum Partners, Suki announces a $90 million Series E from backers including Healthier Capital and Crosslink Capital, and North.cloud raises $60 million in a Series B led by PeakSpan Capital.

Investor appetite broadens across industries

Outside AI and biotech, investors continue backing businesses tied to home care, insurance and semiconductor infrastructure. Abby Care closes an $82 million Series C led by Transformation Capital, while Stand secures $70 million in Series C funding at a $1 billion valuation with Saga Ventures leading the round.

Mueon rounds out the semiconductor segment with a $65 million Series A led by Maverick Silicon for its modular platform aimed at AI and hyperscale computing. The mix of rounds suggests capital remains available for startups linked to AI demand as well as adjacent sectors such as healthcare workflows, resilient insurance coverage and industrial automation.

Crunchbase says the ranking covers the largest announced rounds raised by U.S.-based companies during the Oct. 10-16 period. It also notes some financings may appear later because announced rounds can reach the database with a time lag.

In our earlier article on U.S. CEOs’ experience with AI agents, we highlighted survey findings that the technology is already delivering efficiency and growth gains for many large companies, even if only a small share call it transformational so far. The piece also noted that executives expect continued hiring, retraining and sustained investment in AI infrastructure as adoption expands into core workflows.

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