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Week's Biggest Funding Rounds: Security & AI Lead Amid Slower Deals

Crunchbase News •
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Cloaked secured $375 million in Series B funding, the largest round, for its consumer privacy tools. A $143 million AI infrastructure deal for Frore Systems followed, while XBow and Oasis Security tied at $120 million each in cybersecurity. Imperative Care ($100M), Bluesky ($100M), and Cape ($100M) rounded out the top six, with healthcare AI and robotics adding diversity to the list.

Investment slowed compared to prior weeks, with the largest deal down 20% from recent peaks. Cybersecurity and AI dominated, reflecting investor focus on resilience amid economic uncertainty. Latent ($80M), Crossbow Therapeutics ($77M), and RoboForce ($52M) highlighted biotech, healthcare, and industrial robotics as emerging sectors. These deals collectively pushed over $1.2 billion in fresh capital into U.S. startups this week.

Cloaked’s valuation surged past $1 billion, underscoring privacy tech’s growing appeal. Frore Systems, an AI cooling specialist, reached a $1.64 billion valuation, signaling confidence in infrastructure supporting next-gen computing. Meanwhile, Bluesky’s $100 million raise—reported months after closing—hints at delayed disclosures in social media ventures.

The Crunchbase Megadeals Board methodology tracked U.S.-based rounds from March 14-20, noting potential delays in reporting. With $375 million as the highest single round and $52 million as the smallest in the top 10, the data reveals a fragmented but strategic funding landscape. Investors are prioritizing sectors poised for long-term growth, even as deal sizes contract.

Why does this matter? Security and AI’s prominence suggests investors are hedging against macroeconomic risks. Biotech and robotics’ inclusion signals cross-industry innovation. For startups, these trends highlight the need to align with high-growth, defensible markets to attract capital amid cautious investing.