Weekend Funding Roundup:
Mar 28, 2026
Friday's market story was the Mythos fallout: cybersecurity stocks cratered after Anthropic's leaked AI model exposed vulnerability-finding capabilities that spooked the sector. SpaceX moved closer to a historic $75B IPO at a $1.75T valuation. Physical Intelligence entered talks for $1B at $11B. On the deal side, Rocketlane raised $60M for AI services automation and Euler Motors pulled in $47M for India's EV expansion. A quieter deal weekend overshadowed by seismic market moves.
Rounds
India-born SaaS company Rocketlane raised $60M to redefine professional services for the AI era. The company launched Nitro, an agentic execution platform that deploys AI agents to identify project risks early, rebalance resources in real time, and execute billable tasks like migrations, configurations, and testing. In early deployments, Nitro reduces delivery effort by up to 50% while surfacing risks weeks earlier. Rocketlane doubled revenue last year, expanded to offices in London, New York, and San Francisco, and now serves 750+ customers including 17 Forbes Cloud 100 companies (Intercom, Glean, Notion). Average deal size increased 4.5x since 2023. Founded by Srikrishnan Ganesan, who previously co-founded Konotor (acquired by Freshworks). Total raised: $105M.
Indian electric commercial vehicle maker Euler Motors raised $47M (Rs 437.5 crore) to scale production and expand its sales network. Euler has captured 22% of India's four-wheel electric cargo market, making it the second-largest player in the segment. The company builds last-mile logistics EVs and operates 100+ touchpoints across India. Hero MotoCorp (India's largest two-wheeler maker) participating signals cross-pollination between the two-wheeler and four-wheeler EV ecosystems. A separate $29M in debt financing from BlackSoil, Trifecta, InnoVen, and Alteria brings total capital raised to approximately $220M.
Also Noted
NASA-derived HVAC retrofit startup raised an oversubscribed $12M led by Veriten. Helix MICRA units use accelerated liquid-gas chemistry originally designed for spacecraft to pre-dehumidify air, cutting commercial building energy use by up to 50% without replacing existing rooftop units. Based in Houston.
Privacy-first stablecoin blockchain raised $6M led by FirstMark Capital with Robot Ventures and DBA Crypto. Built on zero-knowledge proofs, Payy keeps transaction details private by default. Already live with 100,000+ users across 120 countries processing $130M in annualized volume. Launched a non-custodial Visa stablecoin card in 2025.
News & Signals
Cybersecurity stocks crash as Mythos fallout hits Wall Street
Friday was brutal for cybersecurity stocks. The iShares Cybersecurity ETF dropped 4.5% as investors digested the implications of Anthropic's leaked Mythos model, which internal documents describe as capable of 'rapidly finding and exploiting software vulnerabilities.' CrowdStrike, Palo Alto Networks, and Zscaler each fell roughly 6%. SentinelOne tumbled 6%. Okta and Netskope dropped more than 7%. Tenable plummeted 9%. The sell-off logic: if AI can find and exploit vulnerabilities faster than humans can patch them, the value proposition of current cybersecurity tools is undermined. The counterargument (which the market was not buying on Friday): AI-powered offense also creates demand for AI-powered defense. But that requires a new generation of tools, not the ones currently priced into these stocks.
SpaceX preparing to file for the largest IPO in history
Bloomberg reported that SpaceX is targeting a $75 billion IPO at a $1.75 trillion valuation, which would eclipse Saudi Aramco's $29.4 billion listing (2019) by a factor of 2.5x. Morgan Stanley and Goldman Sachs are lead underwriters. The S-1 filing is expected in late March or early April, with testing-the-waters investor meetings planned after Easter and a target listing date of June 2026. The valuation is anchored by Starlink's profitability ($8B+ in 2025 profit), the expanding launch market monopoly, and the February 2026 acquisition of xAI. Notably, SpaceX is considering directing 30% of shares to retail investors, far above the typical IPO allocation. If it proceeds, this would be the single most important liquidity event in tech since the 2014 Alibaba IPO.
Physical Intelligence in talks for $1B at $11B, doubling in four months
Bloomberg reported Friday that the two-year-old robotics AI startup Physical Intelligence is in discussions to raise $1B at an $11B+ valuation, up from $5.6B just four months ago. Founders Fund is participating, with Lightspeed, Thrive Capital, and Lux Capital in talks. The company, founded by former Google DeepMind scientists, is building general-purpose AI models for robots: 'Think of it like ChatGPT, but for robots.' With just 80 employees, the $11B price tag implies roughly $137M per employee. Physical Intelligence has now raised over $2B total without disclosing meaningful revenue, a bet that the physical AI opportunity is large enough to justify frontier-model-level investment in robotics foundation models.
Major US indices hit six-month lows as tech rotation accelerates
US stock markets closed at their lowest levels since September 2025, with the S&P 500 and Nasdaq both extending their March selloff. The combination of the Anthropic Mythos cybersecurity scare, rising bond yields, and uncertainty around tariff policy created a risk-off environment that hit growth stocks particularly hard. The sell-off has broader implications for venture-backed companies approaching IPO: SpaceX, Shield AI, and others planning public listings in 2026 now face a more hostile market environment. If indices do not recover by summer, the much-anticipated 2026 IPO window could narrow or close entirely.
VC Mood on X
The mood on Friday was the most bearish since January's tariff scare. The cybersecurity sell-off dominated early conversation, with several GPs noting that the sector has now given back all of its 2026 gains. "If AI can find zero-days faster than CrowdStrike can patch them, we need to rethink every cybersecurity position in our portfolio," one partner posted. The more measured take: vulnerability discovery and exploitation are different problems, and current cybersecurity vendors will integrate AI offense capabilities into their own products. But the market was not in a measured mood.
The SpaceX IPO filing dominated the second half of the day. VCs were split between excitement (a $1.75T tech IPO would reignite the entire IPO market and create massive liquidity for the ecosystem) and concern (the filing coincides with indices at six-month lows, which could compress the valuation or delay the timeline). Several investors noted that the 30% retail allocation is unusual and potentially strategic: by creating a broad base of retail shareholders, SpaceX reduces its dependence on institutional sentiment and builds a loyal shareholder base that is less likely to sell on volatility.
Physical Intelligence's $1B talks at $11B drew the most philosophical debate. "80 people, no disclosed revenue, $11 billion," one seed investor posted. "Either physical AI is the next $10T platform and this is cheap, or we have learned absolutely nothing from 2021." The bulls point to the magnitude of the physical economy ($90T global GDP) versus the digital economy, arguing that foundation models for robotics could be as transformative as LLMs were for knowledge work. The bears note that robotics has been "two years away from breakout" for twenty years, and the hardware-software integration challenges are fundamentally harder than pure software.
Rounds and signals sourced from SEC filings, press releases, and verified news reports. "Also Noted" covers smaller or less-documented deals. All amounts in USD unless noted. Reporting reflects information available at time of publication.