Startup Funding Contracts: Largest Rounds Go to AI and Construction Tech
U.S. startups secured significantly fewer large funding rounds this past week. AI infrastructure provider Modal Labs received $750 million, and construction tech company Icon secured $200 million.
Startup investors scaled back on large funding rounds this past week, with only two companies securing hundreds of millions of dollars. AI infrastructure provider Modal Labs led the pack, raising $750 million in Series D funding. Construction automation unicorn Icon followed with a $200 million Series D round.
While the overall pace of investment has slowed for mega-rounds, other sectors like biotech, insurance, and AI also attracted significant capital. This trend may indicate a more cautious investment climate, with investors prioritizing established companies or those with clearer paths to profitability.
Modal Labs, which offers cloud infrastructure for AI inference and other applications, was valued at $15.75 billion after its $750 million raise led by Accel. The company recently announced it surpassed an annual revenue run rate of $1 billion.
Icon, known for its 3D-printed homes and robotic construction systems, raised $200 million in a round co-led by Baillie Gifford and BlackRock. The Austin-based company is reportedly on pace for 4x revenue growth in 2026.
Other notable funding rounds included Soufflé Therapeutics' $135 million for RNA therapies, Estuary Biotherapeutics' $103 million for gene therapies, and Labelbox's $100 million for AI tools.