Impact of UK Spending Cuts on CERN’s Large Hadron Collider
Traczyk, Piotr/CERN 2021-2024
British scientists are raising alarms over the potential “catastrophic” effects of impending budget cuts on physics research. With public funding agencies facing an average 30% reduction, groups are preparing for possible cuts of up to 60%.
Many research teams may lose their funding entirely, leading to a decline in research jobs and a potential withdrawal from significant international projects, including CERN, the prestigious particle physics laboratory located near Geneva, Switzerland.
UK Research and Innovation (UKRI), the public body responsible for funding science and business, has delineated a £38.6 billion budget over the next four years. Although UKRI claims this figure does not account for inflation, it suggests a marginal increase. However, physics researchers predict substantial cuts are imminent.
UKRI’s budgetary plans aim to bolster scientific research while benefiting the national economy. As CEO Ian Chapman asserted in a February 5 press briefing, the organization must prioritize commercialization and make hard choices for the greatest national impact.
UKRI allocates grants through nine councils, including the Science and Technology Facilities Council (STFC) which specializes in particle physics, nuclear physics, and astronomy, covering financial commitments to CERN and the European Space Agency. STFC is anticipated to bear the majority of the cuts, with reports indicating a staggering £162 million reduction.
Grant recipients of STFC have been advised to brace for an overall funding reduction of 30%. Additionally, they have been asked to devise budget alternatives anticipating 20%, 40%, and 60% cuts. The Institute of Physics (IOP) deemed this news “a devastating blow” to British physics foundations.
IOP President-elect Paul Howarth warned that these cuts would undermine “our understanding of space and humanity’s progress.” He emphasized that cutting UK funding would diminish the nation’s experimental capacity, stifling innovation and economic growth. “We implore the Government to reconsider its funding strategies,” he stated.
Michelle Doherty, STFC’s executive chairman, acknowledged the organization’s overly ambitious goals. “We are stretching our resources too thinly and are facing tough years ahead,” she remarked. “Our current budget restricts us from achieving all our objectives.”
During her briefing, Doherty highlighted the end of international collaboration in particle physics due to financial constraints, a reality that partners abroad are also grappling with.
John Ellis, a professor at King’s College London, cautioned that job reductions would damage the UK’s standing among international research collaborators. “Such actions tarnish the UK’s reputation as a dependable partner,” he noted.
Projects like the ATLAS experiment at the Large Hadron Collider (LHC), instrumental in discovering the Higgs boson, are at risk. Funding was allocated for upgrades during the experimental shutdown. “We face uncertainty about future solutions,” Ellis lamented.
Another LHC initiative, LHCb, which examines the matter-antimatter disparity, may also see its budget eliminated, jeopardizing essential upgrades. Reports suggest the UKRI’s funding for the U.S.-led electron-ion collider in New York is also at risk. UKRI has not clarified the status of these projects when approached for comment by New Scientist.
Ellis warned that significant cuts to physics research could hamper the UK’s future by eliminating opportunities for postdocs and junior researchers. “This isn’t a minor setback; it risks stifling a generation of young scientists,” he argued.
Jim Al Khalili, a professor at the University of Surrey, echoed these concerns, pointing out the potential decline in skill and knowledge necessary for the country’s nuclear industry and wider research initiatives. “These proposed budget reductions would devastate our communities,” he asserted.
Alicia Grated of the Science and Engineering Campaign, representing UK research institutions, noted that miscommunication regarding the cuts has resulted in confusion and uncertainty. “Clarity is crucial, regardless of the reasons behind the decision to rescind STFC funding,” she emphasized. “Any decrease in support for STFC’s resources could threaten a fundamental segment of our research ecosystem.”
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The Landscape of American Scientific Research: A Year in Review
Approximately a year ago, optimism surrounded the realm of American scientific research. However, in February, the Trump administration executed significant staff reductions within federal science agencies, limiting grant access for universities and undermining funding for research overhead. Targeting prestigious universities for accusations of anti-Semitism, the administration retracted grants on matters deemed relevant to diversity, equity, and inclusion. Proposed budgets for key agencies, including NASA and the National Science Foundation (NSF), indicated sweeping financial cuts.
This turmoil led many to believe that the scientific community was under siege. Post-World War II, the federal model of outsourcing research to academic institutions seemed to be unraveling.
Holden Thorpe, editor of Science Journal, noted, “That partnership is now breaking down,” calling some of these cuts “an unexpected and immediate blow” and a “betrayal of the partnerships that have enabled American innovation and progress.”
Yet, as we reflect on the past year, those dire predictions have not materialized. Legal challenges and a recent Congressional rejection of many proposed cuts have preserved essential funding.
A coalition of scientific, educational, and civil liberties organizations, including the ACLU, APHA, and AAU, successfully contested some of the Trump administration’s pivotal policy shifts, safeguarding billions in scientific funding. As a result, funding packages negotiated in Congress over the past few weeks have largely maintained federal funding for scientific agencies similar to last year.
The House echoed the Senate’s decision on Tuesday, passing a funding package that included modest increases for National Institutes of Health (NIH) research while rejecting Trump’s proposal for a more than 40% funding cut. Trump signed the bill that evening.
Joan Padron Carney, chief government relations officer at the American Association for the Advancement of Science, stated, “Congress has effectively rejected the president’s very deep cuts.” Given recent trends, she added, “While flat funding may not have seemed like a victory before, considering the circumstances of the past year, we are quite satisfied.”
It’s crucial to acknowledge that the scientific sector hasn’t completely evaded the adverse impacts of the administration. Both the National Oceanic and Atmospheric Administration (NOAA) and NASA have experienced substantial job losses, NIH leadership underwent significant changes, and there have been reductions in essential climate reports and weather services.
The National Weather Service releases weather balloons on a routine basis above Gaylord, Michigan. Marvin Joseph/The Washington Post via Getty Images
Padron-Carney acknowledged that the Trump administration would likely persist in its initiatives to defund science on topics it disapproves of. She noted that a presidential order mandates many grants to obtain approval from senior political appointees.
Despite these challenges, Padron-Carney remarked, “Science is holding up as best it can,” particularly after a year that felt precarious.
The White House did not respond to inquiries regarding Congressional decisions on science funding, although it commended the bill prior to its passage.
“The Administration appreciates that Congress is proceeding with the spending process in a manner that avoids an extensive omnibus package while adhering to a fiscally responsible agreement that prioritizes essential investments,” stated the White House Office of Management and Budget.
A significant concern within the scientific community revolves around disrupting grant flows to universities and research institutes, especially from the NIH, the primary agency responsible for biomedical and life sciences research funding.
The Trump administration’s attempts to assert control over government agencies led to substantial delays, cancellations, and a halt in thousands of grants. Additionally, the administration’s move to limit indirect costs universities could charge to NIH created uproar, with a proposed 15% cap estimated to save the government $4 billion annually. Universities and states contested this cap, claiming it violated Congressional guidelines and NIH policies.
Substantial legal victories eventually facilitated the reinstated flow of funds.
Last month, an appeals court upheld a ruling that the Trump administration couldn’t impose caps on indirect research spending. Furthermore, in December, the ACLU reached a partial settlement when it filed a lawsuit challenging the NIH’s alleged “ideological purge” on research grants. This settlement mandated the NIH to resume reviewing specific stalled grants, while other aspects related to the diversity, equity, and inclusion lawsuit are still pending.
Olga Axelrod, ACLU attorney involved in subsidy litigation, described the lawsuit as an essential check, affirming, “However, public health research remains under threat.”
The NIH opted not to comment on the lawsuit proceedings.
Headquarters of the National Institutes of Health in Bethesda, Maryland, captured in May. Wesley Lapointe/Washington Post, from Getty Images File
A surge in lawsuits contesting the Trump administration’s restrictions on grant funding continues, with appeals pending. The Georgetown University’s Health Policy and Law Initiative has tracked 39 related funding complaints this past year, a significant increase from zero last year.
Katie Keith, the initiative’s director, expressed that “It’s exploded,” noting mixed results thus far.
In one instance, a judge ruled against the Trump administration after it cut Harvard University’s funding by $2.2 million. Conversely, another case saw a judge dismiss a lawsuit where faculty aimed to restore nearly $400 million in grants to Columbia University. Notably, Columbia had to pay the government a $200 million settlement after allegations of anti-discrimination violations.
Harvard University’s campus in Cambridge, Massachusetts, in June. Bloomberg/Bloomberg via Getty Images
By the end of the fiscal year 2025, NIH expenditures reached typical levels. This marked a substantial shift from earlier in the year, when it seemed improbable NIH would fully utilize the $36 billion allocated by Congress for external grants.
“NIH was significantly lagging,” remarked Jeremy Berg, a professor of computational and systems biology at the University of Pittsburgh who monitors NIH spending.
However, after Congress urged NIH to expedite spending, the funds began to flow, mitigating risks to vital research.
Preserved brain samples at Harborview Medical Center in Seattle, where research focuses on Alzheimer’s and other neurodegenerative diseases. Evan Bush/NBC News
To adapt, the NIH has adjusted its usual practice of funding projects annually, now distributing funds across the entire grant period (typically 4-5 years).
“This essentially serves as an accounting measure,” stated Berg, adding that the number of new projects funded in 2025 had dwindled by about 5% to 10%.
Nonetheless, financial resources continued to flow into research institutions nationwide.
The scientific community has increasingly turned to Congress as an ally amid funding disputes.
In its budget proposal last spring, the Trump administration expressed strong opposition to scientific funding, suggesting significant cuts to various agencies. Proposals indicated the NSF would face a reduction of nearly 57%, NASA around 24%, and the NIH exceeding 40%. Overall, the proposal outlined almost a 36% cut in non-defense scientific research and development funding, as noted by AAAS.
Nevertheless, Congress largely opposed President Trump’s recommendations, maintaining scientific funding within negotiated spending bills. The NIH’s budget was established at $48.7 billion, reflecting a $415 million increase over 2025. According to Senate Vice Chairman Patty Murray, approximately 75% of this allocation supports external research grants. Moreover, NASA’s budget faced only a 1.6% reduction, and NSF experienced a 3.4% cut.
A meteorologist observes weather patterns at the NOAA Weather and Climate Prediction Center in Maryland, captured in 2024. Michael A. McCoy/Bloomberg/Getty Images File
Congress also enhanced NIH funding for cancer research by $128 million, Alzheimer’s research by $100 million, and added $15 million to ALS research initiatives.
Additionally, legislative measures were introduced to prevent future attempts to limit indirect research spending.
The law mandates NIH to provide monthly reports to Congress on grant awards, terminations, and cancellations, allowing for better tracking of expenditures.
“This illustrates continued bipartisan support for the federal government’s crucial role in bolstering research,” noted Toby Smith, senior vice president for government relations and public policy at the Association of American Universities.
Nonetheless, questions linger about the NIH’s functionality with a reduced workforce and the extent of political influence from the Trump administration. Approximately half of the directorships at the NIH’s 27 institutes and centers remain unfilled.
“We’ve secured Congress’s support for funding. However, can they effectively execute it? Will adequate staffing be available?” queried Smith.
Even if major funding disruptions are averted this year, the uncertainties stemming from the first year of the second Trump administration could resonate throughout the scientific community for years to come.
A recent report in Science Magazine revealed that over 10,000 professionals holding Ph.D.s have departed from the federal government. Moreover, a study published in JAMA Internal Medicine indicated that funding interruptions affected clinical trials involving 74,000 participants. Additionally, the influx of young scientists training at U.S. universities is dwindling.
A sign from the March 7 Stand Up for Science march in Seattle Center, urging for continued support of scientific funding. Stephanie Ryder
At the University of Washington, a leading public institution for biomedical research that heavily relies on NIH funding, there have been hiring freezes, travel restrictions, and furloughs implemented. The influx of new doctoral students entering the medical school has decreased by one-third, primarily due to uncertainty regarding continued funding for principal investigators.
Shelly Sakiyama Elbert, associate dean for research and graduate education at the University of California School of Medicine, expressed, “Some nights, I find it hard to sleep, pondering how to secure funding for my lab.”
The only constant in 2025, she emphasized, has been the feeling of “whiplash.”
Elbert also highlighted a decline in faculty positions and a 5% drop in doctoral student applications at universities.
“This uncertainty only hampers scientific progress,” she concluded.
The Senate has decisively rejected the Trump administration’s proposal to significantly slash funding for federal scientific agencies. On Thursday, the Senate voted 82-15 to allocate billions more to the National Oceanic and Atmospheric Administration (NOAA), NASA, and the National Science Foundation (NSF) than what was requested by the president.
This bipartisan minibus budget will fund various agencies focused on science and the environment until September 30. The bill had passed the House last week with an overwhelming vote of 397-28.
Following the Trump administration’s budget suggestions would have resulted in catastrophic cuts: a 57% reduction for the NSF, a 47% cut for NASA’s scientific research division, and a 27% decrease for NOAA, which manages the National Weather Service, as stated by Sen. Patty Murray from Washington. As highlighted in Congressional testimony last summer.
The bill is set to be presented to President Donald Trump for his signature.
Despite an overall reduction in spending, the strong bipartisan support underscores a consensus to either maintain the status quo or implement only modest cuts.
Additionally, the legislation includes significant funding boosts for several scientific programs that the Trump administration eyed for elimination, notably NOAA’s satellite program. It also allocates resources to strengthen the workforce of the National Weather Service, which has seen cuts through layoffs and other measures.
This bipartisan effort was spearheaded by Sen. Susan Collins, R-Maine, and Sen. Murray.
In her remarks on the Senate floor, Collins expressed her strong support for the NSF, which provides nearly a quarter of federal funding for essential scientific research, according to their official site.
“I am delighted that we could restore the funding originally proposed for cuts and also address indirect research funding, a priority for me,” Collins stated.
Indirect research costs cover vital expenses such as equipment, operations, maintenance, accounting, and personnel. Earlier this year, the Trump administration sought to redefine the baseline for these costs, but the current budget prevents such changes.
In an overview of the bill, Murray emphasized a boost of $1.67 billion for NOAA and an additional $5.63 billion for NASA compared to Trump’s requests.
“We have stood firm against Trump’s proposed cuts to scientific research, reducing the NSF’s budget by 57%, halving NASA’s science budget, and devastating NOAA and crucial climate research resources,” she remarked in a Senate floor address on Monday. She stated during her speech.
Murray also stressed, “This legislation reinforces Congress’ authority over significant spending decisions.”
When asked about the president’s potential signature, the White House directed NBC News to a previous statement from the Office of Management and Budget. This statement indicated administration support, highlighting that the bill would contribute to overall spending cuts and assist the nation’s journey toward “energy dominance.”
“If the bill is presented to the president in its current form, senior advisers will likely recommend he sign it into law,” read the statement.
Congress will soon review additional minibus bills covering labor, healthcare, national security, and other critical issues. Lawmakers must finalize spending by January 30, the deadline established following a 43-day government shutdown.
In her remarks on Thursday, Collins reiterated her focus on getting the bill signed into law by the deadline to prevent an “unnecessary and extremely damaging government shutdown.”
Funding for a $20 million artificial intelligence lab aimed at enhancing weather forecasts has been halted by the Trump administration. This decision threatens both the pipeline of scientists and the nation’s capability to evaluate the effects of hurricanes and other weather-related disasters.
According to Amy McGovern, the director of the Institute for AI2ES (AI Institute for Heather and Weather, Climate, and Coastal Oceanography), the National Science Foundation (NSF) informed the institute last month that it would not extend its five-year grant.
McGovern, who serves as a professor of meteorology and computer science at the University of Oklahoma, stated:
She emphasized that, without private funding, the institute may have to close its doors next year.
AI2ES collaborates with various universities to integrate AI into weather forecasting while evaluating its reliability.
This move to shut down AI2ES occurs as the Trump administration is heavily investing in AI and accelerating the establishment of data centers. The administration’s own AI plan advocates for the development of AI systems and programs aimed at fostering AI vocational training programs and specialized AI labs across various scientific fields.
In July, the administration unveiled an ambitious plan to achieve “global dominance” in artificial intelligence, emphasizing both innovation and its implementation—key areas of focus for AI2ES.
Alan Gerald, the former director of the National Intensive Storm Institute at the National Oceanic and Atmospheric Administration, described the cut as “dissonance” in light of this trend toward advancing technology.
The White House has not responded to requests for comments regarding this matter.
The institute was established in 2020 under the previous Trump administration as part of the NSF’s AI research labs, having received around $20 million in funding over the past five years. An NSF spokesperson, Michael England, stated that the agency holds the AI Institute’s groundbreaking work in high regard.
The National Science Foundation is fully committed to advancing artificial intelligence research through the National AI Research Institute Program, a pivotal aspect of the administration’s strategy to reinforce the US’s leadership in transformative AI.
NSF and its collaborating partners have provided funding for a network of 29 AI institutes. This year, AI2ES was one of five labs updated through the NSF, with three labs having received updates, while the status of the fourth remains pending, according to McGovern.
The Trump administration has proposed a 55% budget cut for the NSF; however, Congress has not yet ratified the budget. Senate and House appropriations have diverged from the Trump administration’s proposals, suggesting smaller cuts to scientific institutions like the NSF.
“We were an AI lab, so we believed we were secure, given our alignment with the president’s priorities,” McGovern noted.
The Trump administration’s AI plan aims for NSF and other organizations to expose K-12 students to AI careers, develop industry-driven training programs to generate AI jobs, and bolster workforce initiatives to enhance the nation’s AI talent pool.
“They desire a more robust AI-trained workforce. We were doing a significant amount of work,” McGovern emphasized.
She expressed concern that private AI firms are “poaching talent constantly,” as the institute funds around 70 positions each year at various universities, creating a talent pipeline. Among the institute’s achievements are over 130 academic publications and the development of AI tools used by the government today.
The center aided in the creation of AI tools that predict weather events potentially endangering sea turtles near Corpus Christi, Texas, making these animals susceptible to hazards onboard vessels.
Additionally, the institute developed an application enabling forecasters to “see” within hurricanes, even without a polar orbit satellite equipped with a microwave sensor capable of penetrating storm clouds. This application utilizes data from Earth-measuring satellites that cannot penetrate clouds and simulates the internal structure of a hurricane.
The center is also investigating how forecasters evaluate the reliability of AI tools developed by private companies, including Google.
“We have social scientists who engage with end-users to comprehend their trust in AI, their reservations, and what improvements are necessary,” remarked McGovern.
According to Gerald, if the center were to shut down, it wouldn’t adversely affect current weather forecasting but could limit innovation and place the nation at a disadvantage.
“Many other countries are heavily investing in AI-related weather research, like China. They risk falling behind many nations committed to enhancing weather forecasting,” Gerald concluded.
Terence Tao, widely recognized as one of the world’s leading mathematicians—often dubbed the “Mozart of Mathematics”—tends to avoid discussions on politics.
As Tao stated, “I’m focused on scientific research. I participate in voting and sign petitions, but I don’t view myself as an activist.”
Following the halting of a $584 million federal grant at UCLA in July, Tao expressed concern regarding the potential impact on scientists, suggesting that if the current trend persists, it could lead to indiscriminate cuts affecting many, himself included.
“This administration has exhibited extreme radicalism, particularly in its alteration of scientific landscapes in ways even the first Trump administration did not,” Tao commented. “This is not normal, and I believe many people are unaware of the damage occurring.”
Tao is among a select group of prominent mathematicians who openly challenge the regime’s actions, labeling them as “existential threats” to his field and the broader academic science community. He has prioritized public advocacy over his research for the time being.
“The U.S. is the leading global funder of scientific research, and the administration is focused on consolidating America’s innovative edge. However, federal research funding isn’t a constitutional guarantee,” remarked White House spokesperson Kush Desai. “The administration’s duty is to ensure taxpayer-funded research aligns with the priorities of American citizens.”
During the Trump administration, UCLA faced scrutiny through the suspension of its federal grants, based on claims of racism and failure to maintain a “non-biased research environment.” Investigations noted these issues.
Having emigrated to the United States from Australia at the age of 16, Tao was recognized as a mathematical prodigy early on. He has developed a significant career at UCLA and was awarded the 2016 Fields Medal, often regarded as the equivalent of a Nobel Prize in Mathematics. Additionally, he has earned a MacArthur Fellowship and other prestigious honors.
As part of a comprehensive federal lawsuit against UCLA, the National Science Foundation suspended two of its TAO grants, one of which directly backed Tao’s contributions at UCLA and his work with the University’s Institute of Pure and Applied Mathematics (IPAM). This was designated as a special project.
An NSF spokesperson confirmed, “The National Science Foundation has reinstated the awards that were suspended at the University of California, Los Angeles,” while withholding any further comment on Tao’s remarks.
Looking ahead, IPAM funding—established in 2000 to enhance collaboration among mathematicians, industry professionals, and engineers—remains at risk. The current grant is set to expire next year and awaits renewal, with the Trump administration proposing a 57% budget reduction for the NSF. Requests for 2026 are under consideration.
Tao’s NSF-funded research delves into advanced mathematical concepts, particularly focusing on understanding patterns in long numbers. Although this research may seem basic and lacks immediate practical applications, Tao suggests that its findings could influence encryption methods for security purposes.
On the other hand, IPAM’s research has yielded substantial public benefits. Two decades ago, Tao collaborated with other scientists to address signal processing challenges in medical imaging.
“An algorithm we developed with IPAM is routinely used in modern MRI machines, sometimes enhancing scanning speed by tenfold,” Tao noted.
The Trump administration has employed funding cuts or suspensions as leverage to push for reforms on university campuses, employing a multifaceted strategy. Initially, they sought to slash funding for scientific endeavors by reducing federal reimbursements for indirect costs like equipment and maintenance.
Subsequently, they focused on specific types of grants, including those addressing diversity, equity, inclusion, and gender identity.
The administration also singled out institutions like Harvard University, Columbia University, and, more recently, UCLA, over allegations of racism and anti-Semitism.
The lawsuit corresponds with numerous funding initiatives, leading to ongoing legal disputes which resulted in the cancellation and subsequent restoration of several grants.
Tao expressed that the recent disruption in financing for his project has compelled him to defer part of his own salary to maintain support for graduate students. His recent activities have shifted from mathematics to attending urgent meetings with university authorities, seeking donor contributions, and writing an opinion opposing the funding cuts.
“This is typically when I focus on my research, but this has become a top priority,” Tao emphasized.
He grows increasingly anxious about the bigger picture, believing that the administration’s actions could dissuade young scientists from remaining in the U.S., asserting that if this pattern continues, he himself may have to reconsider his position.
Tao has observed from his vantage point at UCLA that graduate and postdoctoral students are increasingly inclined to seek opportunities outside the U.S. as funding uncertainty looms.
“In past eras, other countries with distinguished scientific heritages faced turmoil and conflict, prompting many to flee to the U.S. as a safe haven,” Tao remarked. “It’s paradoxical that we are now witnessing an inverse trend where other countries might begin to attract skilled talent currently based in the U.S.”
Just a year ago, Tao hadn’t considered leaving UCLA or the U.S., but he has received a handful of recruitment inquiries and is beginning to contemplate his future in America if the current situation continues.
“I’ve established my roots here. I raised my family here, so it would take significant incentives to uproot me. Nonetheless, these days, predicting the future is increasingly challenging,” Tao concluded. “I never envisioned moving at all; it was never on my radar. Yet now, whether for better or worse, all possibilities must be taken into account.”
While scientists pursuing cancer therapies find ample support, those researching diseases in potatoes face greater challenges in garnering attention and funding.
The Trump administration seems to have adopted the notion that many scientific pursuits are viewed as unnecessary or opaque, resulting in billions in proposed cuts to research funding.
Amidst this crisis, researchers are exploring innovative ways to garner public and political backing to counteract funding reductions.
A collective of Cornell graduate students aims to reshape public perceptions of science. They have enlisted over 500 researchers from all 50 states to write OP-EDs for local newspapers, which are set to be published next week. This initiative was proposed by Emma Scales, a Cornell doctoral student involved in the campaign.
“We’re engaging with people who are frustrated by the lack of transparency regarding funding allocations,” Scales explained. “I understand that I’m one of those who utilizes your resources. I apologize for not communicating better, but I’d appreciate feedback about my work.”
Isaco di Tomasi, Hannah Frank, Emma Scales, and Alex Rand lead the Cornell Policy Club, coordinating McClintock’s letters. Courtesy Emma Scale
The initiative, known as McClintock Characters, is one of several ongoing efforts by graduate students and faculty aimed at the same goal.
This reflects a mainstay belief that researchers cannot assume public support is a given. If proactive measures aren’t taken soon, many are beginning to realize that the public’s trust in scientists is waning, and funding may not be reinstated.
Science Homecoming letter-writing campaigns urge scholars to emphasize the importance of government investments in scientific endeavors. The new nonprofit, Stand Up for Science, is organizing demonstrations at State Fairs and Farmers Markets this summer, along with community Teach-Ins and Open Lab Days. Another new group, Your Neighborhood Scientist, publishes essays by researchers and fosters community-based dialogues about science.
Audrey Dorottos, a neuroscientist from the University of Pennsylvania and co-founder of Your Neighborhood Scientist, sees her work as a means for scientists to express their enthusiasm.
“We aren’t just contributing static noise; we aim to humanize scientists, which is a fundamental objective,” she said.
Di Tomasi is delving into the fungal disease that contributed to the potato famine in Ireland. Courtesy Isako di Tomassi
The motivation behind the McClintock letters emerged in February when Isako Di Tomassi, a plant pathology doctoral student, expressed his frustrations online after losing his PhD advisor at the US Department of Agriculture due to recent significant government layoffs.
While Di Tomassi encountered some sympathy online, one commenter remarked that funding cuts were beneficial since they halted “frivolous research,” and many others expressed confusion regarding the purpose of their studies.
Di Tomasi and Scales began brainstorming solutions through the Cornell Advanced Science and Policy Club to facilitate researchers sharing their narratives.
They organized these efforts in tribute to the late Nobel Prize-winning cytologist Barbara McClintock, timing their actions for her birthday on June 16. Her research altered scientists’ understanding of genetic inheritance in corn, laying the groundwork for advancements in treating genetic disorders in humans.
Barbara McClintock, a pioneer in genetic research at the Cold Spring Harbor Laboratory in Long Island, NY, circa 1947. AP
“Barbara McClintock is incredibly renowned,” Di Tomasi remarked.
Nevertheless, Di Tomasi noted that the aim is to bridge the gap between scientific professionals and public understanding, emphasizing that even routine experiments can be pivotal for medical and scientific advancements.
Researchers have committed to discussing a variety of topics, from breast cancer metastasis to memory formation and sustainable grape cultivation. Based on the collective audience sizes targeted by the organizers’ chosen news outlets, they anticipate reaching 8 million potential readers.
During a webinar on June 6, Katherine Xue, a microbiologist at the University of California, Irvine, guided about 100 participants on composing OP-EDs, using a 2015 OP-ED by Newt Gingrich advocating for increased research funding as a reference.
Xue encouraged participants to avoid technical jargon and to inject personal elements. She intends to write an article for her hometown newspaper in Oak Ridge, Tennessee, highlighting how her high school internships fueled her interest in microbiology.
“As scientists, we are conditioned to maintain a sense of detachment, but this approach has limitations,” Xue explained to NBC News. “Many people don’t see scientists as relatable, nor do they grasp what we are doing and why. This can lead to distrust in science.”
Recent surveys back up her assertions, revealing that while 76% of Americans express confidence in scientists, this number has dwindled from 87% in 2020, as reported by a Pew Research Center study. The report also noted that a majority of Americans believe scientists are poor communicators, and nearly half feel that scientists view themselves as superior.
The notion of supposedly frivolous research projects has long been a target for criticism. Some senators have highlighted what they perceive as wasteful spending in scientific research.
In a speech to Congress, Trump criticized what he considered absurdly funded projects backed by the Biden administration, including research misrepresented as making mice transgender (though in reality, it examined the effects of hormones on health and fertility). The White House defended the President’s comments.
In response to inquiries regarding the reduction of research funding, White House spokesperson Kush Desai stated that the administration is aligning with voter priorities. “The American people have tasked President Trump with recalibrating government expenditures to align with their values,” he clarified in an email. “The administration is committed to fulfilling this mandate.”
President Donald Trump criticized federally funded research during a congressional address on March 4th. Allison Robbert/AFP via Getty Images
For her upcoming book, Salmon Cannon and Floating Frog, Carly Ann York, an animal behaviorist at Lenore Lynn University in North Carolina, spotlighted several scientists who have faced scrutiny to advocate for their research.
One professor included in the book reacted with humor to the label “waste” applied to her research by participating in collaborative efforts with fellow scholars, like creating a mini science fair on Capitol Hill, to share research insights on shrimp combat inspiring new body armor designs for humans.
Carly Ann York became committed to scientific communication after grappling with explaining her studies on squid physiology to others years ago. Courtesy Carly York
“I hope more scientists adopt this mindset,” York stated. “It’s our responsibility to help the public comprehend how taxpayer money is utilized in research, what we do, and the impact of our work.”
Will the McClintock letters and similar initiatives achieve their intended results? While it’s uncertain how many students and faculty will participate, many participants hope their goals reach beyond immediate outcomes.
According to Michael Rubel, a physics professor at New York City College and a former Director of Public Relations for the American Physical Society, success hinges on sustained engagement with the public.
Rubel remarked that scientists should actively participate by attending community groups like Rotary clubs, churches, or PTA meetings.
“If researchers wait for the public to come to them, they will only engage a fraction of the population, and I doubt this will effect meaningful change,” he stated. “Meet audiences where they are. Understand what they value. You might be surprised.”
St. Louis has experienced two tornadoes within the last two months. A recent fire led to the evacuation of a new nursing home in Enterprises, Alabama, last month. Meanwhile, Cleveland dealt with a blackout as crowds attended the NCAA Women’s Basketball Final Four.
In these incidents, local health officials managed aftermaths, supported hospitals, located new residences for displaced individuals, and coordinated efforts with fire services, police, and other municipal sectors.
The total cost of these responses reached approximately $735 million, funded by the Centers for Disease Control and Prevention. The budget proposed by President Trump allocates zero funds for such efforts.
The proposed budget cuts have increased anxiety among health officials, especially following a $12 billion reduction to state and local health agencies in March. Nineteen states and the District of Columbia have filed lawsuits aiming to stop these cuts.
“Both artificial and natural disasters are not reliant on federal funds, but the response aimed at saving lives certainly is,” stated Dr. Matifha Fratova Davis, Health Director of St. Louis. (Dr. Davis has resigned but will remain until a replacement is appointed.)
The city faces substantial sinkholes and is situated on fault lines prone to floods, in addition to being at risk for earthquakes. “We genuinely depend on this fundraising,” Dr. Davis remarked. Without it, “the entire community of St. Louis and its visitors will stay at risk.”
The Department of Health and Human Services directed budget-related inquiries to the Office of Management and Budget, which did not reply to requests for comments.
The funding has garnered interest from local health sectors via the Public Health Emergency Preparedness Cooperation Agreement, established after the September 11, 2001 attacks to prepare for biological threats and other emergencies.
This funding aids authorities in overseeing public health implications of both natural and artificial disasters while also containing infectious disease outbreaks. It also finances salaries of experienced officials tasked with readiness and mitigation of public health issues.
Funding amounts vary by jurisdiction. St. Louis and Cleveland each receive roughly $250,000, covering salaries for three staff members. In comparison, Dallas is allocated nearly $2 million, supporting salaries for 17 employees.
“There’s minimal cushion for these funds, especially at the local level,” noted Dr. Philip Fan, director of the Dallas County Health and Human Services Department in Texas.
If these funds vanish, even larger cities like Dallas will feel the effects. “The smaller the health department, the more pronounced the impact will be,” he explained.
Dr. Davis indicated that her department receives less than 1% of the overall St. Louis city budget. Should CDC public health emergency funds be reduced, Missouri and its cities may need to compensate for the deficit, as current budgets imply.
“These individuals will soon find themselves jobless,” Dr. Davis remarked regarding employees funded through the grant.
In Alabama, emergency response programs are fully financed through federal grants. Winter tornadoes, hurricanes, and ice storms can wreak havoc and necessitate intervention from health authorities.
“Accusations have been made against the Alabama Department of Public Health,” stated Dr. Scott Harris, state health officer.
In several jurisdictions, staff depend on hundreds of volunteers to assist with COVID-19 and MPOX vaccinations. Nevertheless, paid staff is essential for coordinating those activities and training volunteers, Dr. Huang explained.
“You can’t appear before everyone claiming, ‘Yes, I’m a doctor,'” he added. City officials will verify volunteer qualifications and mobilize them for emergencies as needed.
In Cleveland, health officials responsible for preparations receive midnight calls from hospitals regarding potential charcoal or other bacterial infectious threats.
“We’ve encountered numerous challenges with our efforts,” commented Dr. David Margolius, Director of Public Health in Cleveland. “However, it’s always better to be prepared than to be caught off guard.”
Some officials have expressed concern since the election about whether the Trump administration will continue funding for these programs. However, they did not anticipate a sudden cessation of funds, as seen with other CDC funding streams.
If Congress implements a funding cut, he noted, “We’ll have to urgently assess their situation.” “It’s entirely unfair for these teams and Cleveland residents to rely on these services under such circumstances.”
A group of states spearheaded by Washington, Colorado, and California has filed a lawsuit against the Trump administration, claiming it is unlawfully withholding billions of dollars designated by Congress for electric vehicle charging stations nationwide.
The Bipartisan Infrastructure Act of 2021 allocated $5 billion to states for the construction of charging stations across the country. Research firm Atlas Public Policy reports that 71 stations have been established thus far, with more on the way.
Litigation filed in the U.S. District Court for the Western District of Washington in Seattle states that the federal agency has unlawfully frozen these funds, halted the approval of new stations, deprived states of critical resources, and harmed the developing electric vehicle industry.
The White House’s Budget Proposals announced last week indicated a cancellation of funds for the “Failed Electric Vehicles – Charger Grant Program.” President Trump had already targeted the program in January. Presidential Order from the Transportation Department echoed similar sentiments the following month. However, the lawsuit contends that a Congressional approval is necessary to entirely revoke funding.
“The president is making unconstitutional efforts to withhold funds allocated to programs that Congress supported,” stated California Attorney General Rob Bonta. “This time, he’s unlawfully diverting billions meant for electric vehicle charging infrastructure, lining the pockets of his oil industry allies.”
California has approximately 2 million “zero emission vehicles” available, accounting for one-third of the national total, as part of an ongoing initiative in the car-centric state to reduce air pollution. According to Bonta’s office, California relied on $384 million from the federal program for charging stations.
The state has heavily invested in its charging infrastructure from its own budget and revenue from carbon credits sold to polluters, leading to more public and shared private chargers than gas station pumps. However, challenges remain when crossing state lines for charging.
The National Electric Vehicle Infrastructure, or NEVI Program, initiated by President Joseph R. Biden Jr., aims to establish charging networks across urban and rural areas, including California, to combat climate change.
California officials remarked that one of the main beneficiaries of the national EV program is China, which currently leads in EV manufacturing and global sales. The most significant detriment would likely fall on Tesla, a Trump supporter, whose CEO Elon Musk expects the company to lead the EV market, despite a decline in sales during the first quarter of 2025.
“When America retreats, China prevails,” California Governor Gavin Newsom criticized the federal fund withholding as “another Trump gift to China.”
“Instead of promoting Teslas on the White House lawn, President Trump should prioritize aiding Elon and the nation by adhering to the law and unlocking this bipartisan funding,” Newsom stated.
The lawsuit includes attorneys general from Arizona, Delaware, Hawaii, Illinois, Maryland, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Wisconsin, Vermont, and the District of Columbia.
Transportation Department Notes indicate that state officials reported in February that the administration had considered the NEVI program and suspended approval of state plans. The lawsuit seeks a declaration that the memo is illegal and demands the administration release the funds.
An NEVI Funding Tracking Website operated by Atlas Public Policy shows that at least $521 million has been allocated, with approximately $44 million already spent. Data indicates that many operational stations are concentrated in Ohio and Pennsylvania.
Loren McDonald, chief analyst at EV analytics firm Paren, commented that while the federal government plays a minor role in the EV charging sector, most stations are constructed by private companies. McDonald noted that the process of building the infrastructure and selecting contracting firms is lengthy and has led to delays. His experience with constructing charging stations reflects this trend.
That said, the plaintiffs asserted that the president’s orders have been detrimental.
Colorado Attorney General Phil Weiser expressed that his state stands to lose tens of millions in funding after demonstrating significant advancements in establishing a robust foundation for electric vehicle adoption. He mentioned that federal support was crucial to bridging gaps in funding for rural Colorado and underserved communities.
“Congress showed foresight in approving funds for this essential infrastructure,” Weiser stated. “These funds need to be restored immediately.”
In Washington, the president’s directives halt 40 proposed projects and jeopardize $55 million in approved Congressional funding for electric vehicle charging infrastructures.
The White House and the Transportation Department have yet to respond to requests for comment.
The National Institutes of Health has implemented a policy that prevents American scientists from allocating their funds to international research collaborators, raising concerns about the implications for studies on critical issues like malaria and pediatric cancer.
On Thursday, the new NIH director, Dr. Jay Bhattacharya, made this announcement. Coincidentally, Deputy Director Dr. Matthew J. Memoli criticized these so-called sub-awards in an email shared with the New York Times.
Dr. Memoli stated, “If you can’t clearly justify why you’re doing something overseas, you can’t do it anywhere else and can’t benefit Americans.”
The impending restrictions will also extend to domestic sub-awards in the future, coinciding with executive orders aimed at reshaping the nation’s scientific priorities amidst declining NIH funding and stalled federal grants at numerous premier universities.
On Monday, President Trump enacted an executive order to restrict experiments that could enhance the risks posed by pathogens and limit support for so-called gain-of-function research in nations like China.
Researchers receiving NIH grants have frequently employed sub-awards to foster international collaboration, a crucial component for studying diseases such as childhood cancer, malaria, and tuberculosis, which is less prevalent in the U.S.
However, there has been increased scrutiny in recent years due to lax reporting and tracking of funds. Following a critical report from the Government Accountability Office (GAO) in 2023, the NIH introduced more stringent oversight requirements.
Proponents of scientific and medical research argue that as science grows more complex, collaborative efforts that engage participants and researchers globally are becoming increasingly vital.
“Competitiveness in science necessitates a collaborative approach,” stated Dr. E. Anderskolb, CEO of the Leukemia and Lymphoma Association. “No single lab, agency, or investigator possesses all the necessary tools to address the complex questions we’re facing.”
Many of these studies require a significant number of subjects. For instance, scientists can more precisely classify the types of pediatric cancers, leading Dr. Kolb to comment, “we’re entering a niche of diseases that are becoming progressively smaller.”
“Thus, if you’re aiming to conduct clinical trials for new treatments that could aid these children, attempting to only enroll U.S. children might prolong the trial duration by decades,” he added. “Collaborating with international partners allows us to expedite these trials and deliver treatments to our children much sooner.”
In unveiling the new directive, Dr. Bhattacharya referenced a GAO report criticizing the funding awarded to international universities, research institutes, and firms.
Dr. Bhattacharya added that the issues raised by the GAO “could undermine trust and safety for U.S. biomedical research entities.”
Tracking NIH expenditures for these international organizations is challenging. A notable obstacle pointed out by the GAO, as reported by journal Nature, estimated total funding to be about $500 million annually.
Dr. Monica Gandhi, a professor of medicine at the University of California, San Francisco, is utilizing NIH funding for HIV prevention and treatment research in Kenya and South Africa.
Researchers like her are required to furnish detailed information when applying for international sub-awards, she explained.
Currently, international partners must access lab notebooks, data, and other documents at least once annually, as noted by Dr. Gandhi. All expenses must comply with Foreign Awards and Component Tracking Systems.
“It’s extremely stringent, similar to using taxpayer funds,” Dr. Gandhi remarked.
“Each year, when submitting your progress report, you must account for every dollar spent on international locations. You’ll detail where it was allocated, how much laboratory testing costs, and who the principal investigators are—every facet.”
It remains unclear how the new policy will be implemented. The NIH has not responded to requests for further information.
The NIH stated it will not retroactively reverse foreign sub-awards that are already in effect “at this time,” and will continue to grant funding to international organizations.
However, the new policy prohibits the reissuance of new, competitive awards if they include proposals for sub-awards to foreign institutions.
“If the project is unfeasible without foreign sub-awards, the NIH will collaborate with the recipient to negotiate the bilateral termination of the project,” stated the agency.
The new policy seems to be slightly less comprehensive than what Dr. Memoli outlined in his internal email.
“Sub-awards to foreign sites cannot proceed,” he wrote. “This has been mismanaged horrendously in recent years and is utterly irresponsible. We must act immediately. If there is a foreign site involved in our research, we need to either start closing it or devise another method to track it properly.”
GAO reports indicate that several federal departments are seeking improved surveillance following criticism regarding lax reporting. However, the office did not advocate for the complete termination of such funding.
The 2023 GAO Report reviewed $2 million in direct and sub-awards, the majority coming from the NIH, awarded to three Chinese research institutions, including the Wuhan Virology Institute, between 2014 and 2021.
The Virology Institute received a sub-award from the University of California, Irvine and the non-profit EcoHealth Alliance. Collaborating with the Alliance and Chinese scientists led former President Joseph R. Biden Jr. to suspend funding last year. Recently, the Trump administration updated its government portal for COVID-19 information to suggest that a novel virus emerged from a lab in Wuhan.
According to a GAO report, NIH oversight has not consistently ensured that foreign agencies comply with requirements, including biosafety regulations.
Another GAO report indicated that one reason for the difficulty in tracking spending is a federal policy requiring the reporting of sub-awards of $30,000 or more.
The report examined approximately $48 million in NIH and State Department funding provided to Chinese companies and research institutions between 2017 and 2021.
“The full extent of these sub-awards remains unknown,” and the data retrieved were found to be incomplete and inaccurate, with numerous expenditures exempt from reporting.
Under President Trump’s proposed budget, the National Aeronautics and Space Administration aims to become the nation’s focal point for lunar and Martian exploration, sending astronauts to these celestial bodies.
The Trump administration has suggested an $18.8 billion budget for NASA, a reduction of 24% from the current fiscal year’s funding of $24.8 billion. This plan is part of Trump’s commitment to “plant the flag” on Mars, a promise made during his Congress address last March.
This budget shift aligns with the vision of Elon Musk, who founded SpaceX two decades ago with aspirations to transport settlers to Mars someday.
However, the proposal does not outline how the $1 billion allocation will be utilized or the timeline for sending astronauts to Mars. Musk has indicated that SpaceX intends to launch a new, large spacecraft toward Mars by the latter half of 2026, though it’s still under development.
Janet Petro, NASA administrator, stated, “The proposal includes investments focused on crucial scientific and technological research while advancing exploration of the Moon and Mars.”
The budget cuts will mainly affect NASA’s Robotics and Space Science Mission, including the proposed cancellation of a mission to retrieve Martian rock samples and a climate observation satellite. The Orion crew capsules are set to return astronauts to the Moon post-Artemis III, the first mission to land near the Moon’s South Pole. Additionally, the Gateway, a planned orbital space station around the Moon, will be scrapped.
Casey Drier, director of space policy at the Planetary Association, noted, “The exploration of space is a nonprofit advocating for space exploration. This budget reflects America’s standing as a leader in space, yet we are becoming more introspective.”
The budget plan also suggests an increase in operations at the International Space Station, while proposing the elimination of NASA’s educational initiatives, labeling them as “awakening.” Previous attempts by both President Trump and President Obama to terminate NASA’s educational funding were countered by Congress reinstating the funds.
In aviation, the proposed budget cuts research aimed at minimizing greenhouse gas emissions from aircraft.
The budget further suggests reducing “mission support” by over $1 billion, aiming to save costs through employee workforce cuts, maintenance reduction, construction decreases, and “environmental compliance activities.”
National Health Secretary Robert F. Kennedy Jr. emphasizes that addressing the “epidemic” of chronic diseases is fundamental to his health agenda, often citing unexpected statistics as a compelling reason for public health reform in the nation.
Recently, President Trump proposed a budget that includes a nearly 50% reduction in funding for the Centers for Disease Control and Prevention. This plan includes the complete elimination of the Chronic Disease Center, leaving many state and city health officials stunned.
“A significant portion of Americans suffers from some form of chronic illness,” noted Dr. Matifha Frathschwei Davis, the health director for the city of St. Louis.
In discussing the proposed cuts, she questioned, “How can we justify this as a step toward making America healthy again?”
Last month, the Federal Health Administration eliminated 2,400 positions from the CDC. The National Centre for Chronic Disease Prevention and Health Promotion, which operates with the largest budget within the CDC, was affected greatly by these changes.
Several initiatives, including those addressing lead poisoning, smoking cessation, and reproductive health, were discontinued amid the reorganization.
The proposed budget slashes CDC funding to around $4 billion, down from $9.2 billion allocated for 2024.
Notably, the budget plan does not account for the $1.2 billion set aside for the Prevention and Public Health Fund, which could mean even deeper cuts than Trump’s initial proposal indicates.
Additional programs aimed at preventing injuries, including those from firearms, HIV surveillance and prevention initiatives, and grants for state preparedness in public health emergencies, will also be eliminated.
The budget outlines that these reductions aim to eliminate “duplicate, DEI, or unnecessary programs.” While Congress will draft a federal budget, it’s uncertain how much influence Trump’s proposal will wield, given the current Republican majority and his allegiance to the former president.
CDC officials were informed that the Chronic Disease Center’s functions are to be absorbed by a new division under the Department of Health, called Management for a Healthy America.
Moreover, the newly released proposal seems to earmark $500 million for the Health Secretary to focus on “nutrition, physical activity, healthy lifestyle, medication, and treatment.”
However, the Chronic Disease Center’s budget at the CDC had nearly tripled previously. Plus, even if some chronic disease programs are revived under AHA, it’s doubtful that CDC scientists from Atlanta will be included.
“The true experts in managing these programs might no longer be with the CDC,” stated Dr. Scott Harris, state health officer with the Alabama Department of Public Health. “My state certainly lacks the same level of expertise.”
The Department of Health and Human Services has yet to respond to requests for comments.
The CDC’s Chronic Disease Center has spearheaded initiatives to prevent cancer, heart disease, diabetes, epilepsy, and Alzheimer’s disease. The center has also launched programs that range from developing hiking trails in rural areas to advocating for healthier food options in airports and promoting wellness in underserved communities.
Dr. Davis noted that her department is already feeling the impact of cuts aimed at reducing smoking and lead poisoning, as over $11 billion in funding previously provided by the CDC to the state’s health department has been withdrawn.
“I’m going to be back in the COVID-19 cycle with everything happening,” Dr. Davis remarked.
Under the proposed budget, the administration suggests that responsibilities of eliminated programs would be better handled at the state level. Yet, the state’s health department already administers the majority of chronic disease programs, with 75% of the funding from the CDC supporting these efforts.
Dr. Harris described the loss of funds as “devastating for us.”
Alabama ranks among the states with the highest rates of chronic disease, with about 84% of the Department of Public Health’s budget reliant on the CDC, according to Dr. Harris. Approximately $6 million is allocated for programs addressing chronic diseases, such as blood pressure screenings, diabetes nutrition education, and promoting physical activity.
He added, “I really don’t know where these funds would come from if these cuts happen.” “No one truly seems to know what to expect, and our input isn’t being sought.”
Minnesota’s health department has already reduced its workforce by 140 employees, with more potential layoffs looming if additional CDC funds are lost. Cutting chronic disease prevention resources jeopardizes nursing homes, vaccination clinics, and public health programs for Native Americans in the state.
“Federal actions have left us in precarious situations without support,” noted Dr. Brooke Cunningham, the state health commissioner.
Recently, Dr. Cunningham observed, “There was a shared understanding at the local, state, and federal levels that investing in health was crucial.”
The impact of the CDC’s Chronic Disease Center extends into many unexpected areas of American life.
In Prairie Village, Kansas, Stephanie Bar was made aware of the center’s resources while working as an uninsured waitress fifteen years ago when she discovered a lump in her breast.
Through the CDC’s National Early Breast and Cervical Cancer Detection Program, she received mammograms and ultrasounds, and staff assisted her in signing up for Medicaid after her biopsy revealed cancer. “It was caught just in time,” said Barr, now 45 and cancer-free.
Since its 1991 inception, the program has conducted over 16.3 million screenings for more than 6.3 million individuals, offering vital services to those without affordable access.
One such organization, 530 Health, has petitioned lawmakers to reject the proposed HHS budget, which would reduce discretionary spending by about one-third. The signers expressed that such cuts would “devastate” the nation’s research and public health systems.
The budget also suggests dismantling the disease registry and surveillance frameworks.
“Without gathering data and maintaining these surveillance systems, we lose sight of health trends,” explained Dr. Philip Fan, director of Dallas County Health and Human Services in Texas.
“You lose all historical context,” he added.
In his former role as the Director of Chronic Diseases in Texas, Dr. Huang collaborated closely with CDC experts who successfully curbed tobacco use among Americans. “Dismantling smoking and health initiatives is irrational if you aim to address chronic illnesses,” he stated.
Smoking continues to be a leading cause of preventable death in the U.S., claiming over 480,000 lives annually, as per CDC data.
Although more than 10% of Americans smoke regularly, usage rates differ significantly by region, and CDC monitoring helps identify areas that require intervention programs.
“While smoking rates have declined, tobacco companies are poised to exploit any federal laxity,” warned Erica Seward, vice president of advocacy for the American Lung Association.
She cautioned that tobacco companies are continuously developing new products, like nicotine pouches, adding, “Reining this back in will cost significantly more.”
The CDC Chronic Disease Center collaborates with community and academic institutions to promote effective health initiatives, leading nutrition classes and fitness programs to engage rural youths in Iowa as well as training members of Black churches in Columbia, South Carolina.
In rural Missouri, numerous walking trails have been developed in the “boot heels” region, an area marked by high obesity and diabetes rates, as noted by Dr. Ross Brownson, a public health researcher at Washington University in St. Louis, who is allied with the CDCC to steer the Center for Prevention Research.
“There’s robust evidence that enhancing community walkability can increase physical activity,” affirmed Dr. Brownson. “While there are no health clubs in the countryside, residents can appreciate nature and walk, and land is relatively affordable.”
In Rochester, New York, CDC funding supports training for deaf individuals to lead wellness programs tailored for other members of the deaf community who might struggle to engage in traditional gym classes.
In San Diego, researchers are exploring methods to shield farm workers from UV and heat-related ailments.
“When they mobilize and begin to take action, they become self-sufficient and are no longer reliant on government support,” commented Allison Bey, who recently lost her position overseeing such initiatives at the CDC.
The CDC reorganization has also resulted in the cancellation of the lead poisoning program, a significant concern as lead exposure represents “one of our major public health threats in Cleveland,” noted Dr. David Margolius, the city’s public health director.
Although the CDC does not directly fund the lead program in Cleveland, which relies on state funding, Dr. Margolius emphasized, “We depend on federal expertise to guide us toward a future free of lead exposure. This shift will have major repercussions for us.”
After protests from scientists and health experts, federal health officials said Thursday it would restore funding for the Women’s Health Initiative, one of the largest and longest research into women’s health to date.
The discovery of WHI and its randomized controlled trials has helped to change medical practices, form clinical guidelines, and prevent hundreds of thousands of cardiovascular diseases and breast cancer.
“These studies represent important contributions to our better understanding of women’s health,” said Emily G. Hilliard, a spokesperson for the Department of Health and Human Services.
“We are currently working to fully recover funding for these important research efforts,” she added. The National Institutes of Health is deeply committed to advancing public health through rigorous gold standard research and is taking immediate steps to ensure the continuity of these studies.”
Researchers hope to use the findings to learn more about how to maintain mobility and cognitive function and slower memory loss, detect cancer faster, and predict risks for other diseases.
HHS notified research team leaders that it would end the contract for WHI’s regional center in September, but the clinical coordination center based at Fred Hatch Cancer Center in Seattle will be funded until at least January 2026.
Sen. Patty Murray, a Washington Democrat, said shutting down the trial would be “a catastrophic loss for women’s health research.”
Not only has the initiative led to significant advances in women’s health, it also “paved the way for a generation of researchers focused on women’s health. This has been overlooked for a long time and underfunded,” Murray said.
WHI includes many randomized controlled trials, contributing to over 2,000 research papers. However, it is perhaps best known in a study of hormone replacement therapy that suddenly stopped in 2002 after researchers discovered that older women who collected estrogen-progestin combinations experienced a small but significant increase in their risk of breast cancer.
Until then, there was a widespread belief that hormone replacement therapy would protect women from cardiovascular disease. However, the trial found that women were at increased risk of heart attacks, strokes, and clots, despite the combination of hormones reducing colorectal cancer and hip fractures.
Dr. Joan Manson, one of the long-term lead researchers in the study and one of the medical professors at Harvard Medical School and Brigham and Women’s Hospitals, called the announcement of the funding cuts “sadly.”
She was given a statement by National Health Secretary Robert F. Kennedy Jr. about the importance of reducing chronic illnesses in America, and the original decision to cut funds is baffling, she said.
“There is no good example of the scientific impact of research on chronic disease prevention than WHI,” Dr. Manson said.
Lessons learned Hormonal research has resulted in huge savings Researchers discovered this at medical expenses. One study found that between 2003 and 2012, roughly $35 billion was the number of cases of cancer and cardiovascular disease that were avoided. For every dollar spent on WHI, I saved $140.
One randomized trial conducted by WHI saw the effects of a low-fat diet high in fruit and vegetables. Researchers initially found a reduction in ovarian cancer alone, but long-term follow-up showed that this diet also reduces deaths from breast cancer.
Another study of calcium and vitamin D found that supplements provided slight benefits to maintain bone mass and prevent hip fractures in older women, but did not prevent other fractures or colorectal cancer.
Although the findings have affected medical guidelines, we do not currently recommend that all women take supplements regularly.
Participants in the initiative are currently between 78 and 108 years old, and some scientists have acknowledged that there could be discussions to end the trial. However, careful planning is usually given to shut down such a large-scale wide range of research.
“There’s still a lot to learn,” said Garnet Anderson, senior vice president and director of the Department of Public Health Sciences at the Fred Hatch Cancer Center and lead researcher at the initiative.
“Studying 13,000 women at age 90, what are your health needs? How do you live such a long, healthy life?” she said. “I want to know the secrets of success for healthy aging.”
Part of the reasons research began in the 1990s was the lack of information and research on women’s health and there was little evidence underlying clinical recommendations, says Marian Neuhauser, who heads the cancer prevention program at the Fred Hatch Cancer Center and chairs the WHI steering committee.
“Women are half the population,” Dr. Neuhouser said. “However, they were not included in the study. It was mostly male and the results were extrapolated to women.”
The office situated on the ambiguous corner of the federal government, where NASA relies on to safely land astronauts on the moon, is facing pressure to cut at least 20% of the close team of experts for Mars’ robotic probes, according to two individuals familiar with the directive.
Staff reductions have reportedly already commenced at the Astro Geography Science Center in Flagstaff, Arizona, with more employees expected to be terminated following a recent call for early retirement and resignations on April 4th. The office, which is part of the US Geological Survey under the Department of the Home Office, is the target of cost-cutting efforts initiated in January with a substantial email sent to the federal government by Musk’s team.
Representatives from the Department of Home Affairs, USGS, and the Astro Geography Center did not respond to requests for comment regarding the staff reductions or potential impacts.
The cuts could potentially impact the mission of sending a crew to Mars in the future, a significant objective for Musk, who is the founder of SpaceX. He envisions a company that can make human life multiplanetary.
Matthew Golombek, a geophysicist at NASA’s Jet Propulsion Laboratory, has been involved in selecting multiple probe landing sites on Mars and described the precise mapping at the Astro Geographic Science Center as the “gold standard used by essentially everyone in the community.”
At the beginning of this year, the office had 53 employees, with eight already set to depart and more encouraged to consider the latest offers.
Dr. Golombek emphasized the importance of the center’s experts for mapping excellence and site selection for almost every landing. He expressed concern about losing the highly experienced and knowledgeable executives from the center.
The repercussions of reducing the team of interplanetary mapmakers in the office are significant, as Jared Isaacman, the NASA-backed presidential candidate under President Trump, proposed a “parallel” effort to send astronauts to Mars during a Senate committee meeting.
One researcher at the Flagstaff Office voiced concerns that amid shifting budget priorities, personnel cuts could be detrimental to mapping and critical projects in planetary science, crucial for human exploration.
“I can’t fathom randomly cutting 40% of the remaining staff without canceling the entire project,” the researcher stated.
The researchers added that even the departure of just five workers could significantly impact the office, depending on seniority and field of expertise.
Two employees, who requested anonymity to protect their government careers, were aware of the recent call for volunteers for the “deferred resignation/retirement program” at a recent staff meeting. Essential layoffs known in the federal government if insufficient employees volunteer.
The field of astronomy is interdisciplinary, with experts in terrestrial fields like mineralogy, volcanology, and geography that are valuable for space exploration. The USGS Astrogeology Center, though part of an internal division, closely collaborates with NASA and is largely funded by the agency.
For decades, the Center’s experts have been pivotal in creating detailed topographic maps of various celestial bodies, strategic planning, and scientific goals for NASA missions.
The scientist also provided lunar geology crash courses to Apollo astronauts like Buzz Aldrin and Neil Armstrong, which enhanced their knowledge of rock sample collection. This training has been revived for NASA’s Artemis program, aiming to return astronauts to the moon’s surface in 2027.
Office geology experts played a crucial role in finding new landing sites for historic Viking Mars landers after the original site was deemed unsafe in 1976. In 2021, a rover safely landed on Mars and was guided autonomously using maps and software from the Center.
Companies in the commercial space sector also rely on the expertise of the Astro Geographic Science Center.
“SpaceX has consulted the USGS in the past, and the USGS team was enthusiastic,” said David SF Portree, a former archivist and public relations manager at the Astrology Science Center, a semi-self-historist and science writer in Arizona.
SpaceX did not respond to requests for comments regarding their work at the Astrogeology Center or the impact on their Mars program.
Mr. Porterie expressed concerns about the long-term effects of NASA’s 50-year plan for the crew’s mission to Mars and the executive order for a government-wide employment freeze, which affected student contractors at the office.
Dr. Edwards from Northern Arizona raised concerns about the mass recruitment of probationary workers, stating that it could lead to the dismissal of subject experts.
He emphasized the importance of maintaining experienced staff to ensure the continuity of specialized expertise in the field.
The Trump administration has slashed funding and staff for a program overseeing the primary federal report on the impacts of global warming on the country, leading to concerns among scientists about the future of assessments.
Congress mandates the National Climate Assessment every four years, examining the effects of rising temperatures on various sectors of the US economy. The most recent report was published in 2023 and is being utilized by state and city governments and private companies to prepare for climate change.
The Global Change Research Program, established by Congress in 1990 and supported by NASA, coordinates efforts among 14 federal agencies, the Smithsonian agency, and external scientists to produce these reports.
NASA recently issued stopwork orders for consulting firms ICF International, which provided crucial technical support and staff for the Global Change Research Program. The cancellation of this support has raised uncertainty about the future of the assessment.
Scientists are unsure how the assessment can proceed without ICF’s support, as they have played a significant role in previous assessments.
In response, NASA is working to rationalize contracts and improve efficiency in supporting Congress-mandated programs. The cancellation of the ICF contract was first reported by Politico.
The next national climate assessment, scheduled for 2027 or 2028, may face challenges following these developments, with many climate scientists already expressing concerns about its future.
During Trump’s first term, the administration attempted to undermine the nation’s climate assessment, releasing the 2018 report on the day after Thanksgiving to minimize its impact.
Climate assessments involve scientists nationwide who volunteer to write reports, which then undergo reviews by federal agencies. The delay in the review process for the upcoming assessment has raised concerns among scientists.
Federal involvement in the assessment adds significant value, according to experts, as it ensures a comprehensive review by all federal agencies and the public.
The National Climate Assessment is crucial for understanding how climate change impacts everyday life in the United States, bringing the global issue closer to home.
Climate scientists emphasize the importance of the assessment in highlighting the effects of climate change on various aspects of daily life.
NASA’s funding cuts have already impacted US research and education programs
dcstockphotography/shutterstock
NASA has cancelled contracts and grants worth up to $420 million, following guidance from the Trump administration’s government efficiency (DOGE). The reductions will impact research projects and education programs in the United States, but NASA says it’s perfect for checking exactly which organizations are affected.
After Doge, an independent task force led by tech billionaire Elon Musk, NASA confirmed the amount but refused to specify which programs were cancelled. Casey Drier The Planetary Association, a California-based nonprofit organization, list of a program that has recently lost funds using the agency’s public grant database. NASA has since deleted the database and did not respond to questions about the accuracy of the list.
Much of the cuts on Dreyer’s list coincides with President Donald Trump’s skepticism about climate science and his administration’s active targets regarding his interpretation of the Diversity, Equality and Inclusion (DEI) program.
Climate-related cancellations include a Massachusetts Institute of Technology project that uses satellite sensors to map the impacts of extreme heat, air pollution and flooding. Another target was a University of Oklahoma study to develop digital twin simulations that predict the impact of flooding on tribal lands.
However, it is unclear why NASA has ended support for other research, such as using bioengineering cells to investigate how spaceflight affects the human body and modelling how lunar dust can contaminate future lunar missions.
NASA spokesman Bethany Stevens said New Scientist The agency is “to work with the Ministry of Government Efficiency initiative to optimize the workforce and resources.” Doge urged agencies across the US government to cut funding or shut down altogether.
But it says that ongoing grants and contract cancellations will fly in the face of a “strict” review process that selected them in the first place as “the most scientifically appropriate proposal.” Michael Batario At Yale University. “Politics cannot and should not define what is scientifically worth studying at the level of individual grants,” says Batario, who is studying the atmosphere of Mars and Titan in preparation for future missions.
“DEI related cuts get me the most out of the way.” Bruce Jacoski He was the lead scientist at NASA’s Maven Mission to Mars at the University of Colorado, Boulder. “These grants are about reaching out to underrepresented groups and making people accessible to training and education. None of them appears to promote people who are less qualified than more qualified.”
For example, NASA cut funding for a conference hosted by the National Association of Black Physicists, a longtime nonprofit that promotes the professional well-being of African-American physicists and physics students. “We were told that the reason for cancelling the contract is to comply with the president’s executive order regarding the DEI,” he said. Stephen Robersonpresident of the National Association of Black Physics. “We would like to appeal this decision and explain further why an annual conference, in which people of all races and academic levels present scientific research, is considered a DEI.”
New Scientist They reached out to researchers and organizations that they thought were affected, but few responded to the National Association of Black Physicists. The San Diego Aerospace Museum, featured on Drayer’s list, said NASA’s funding for educational events appears to be still intact, despite the NASA database indicating changes to the grant’s end date. NASA did not respond to requests to verify the status of this fund.
President Trump’s tariffs can increase prices, and efforts to reduce the federal workforce may lead to higher unemployment. Many economists are concerned about administration policies that will cut federal support for scientific research.
The Trump administration has recently canceled or frozen billions of dollars in federal grants for researchers, resulting in significant cuts to funding for academic medical centers and other institutions. It has also attempted to dismiss hundreds of workers at the National Science Foundation and has revoked visas for numerous foreign-born students.
These policies could jeopardize the US’s competitiveness in emerging fields like artificial intelligence, affecting the nation’s health and productivity in the long run.
“Universities play a crucial role in innovation,” says Sabrina Howell, a professor at New York University. “These policies are detrimental to our ability to innovate and grow.”
Scientists warn that the US risks losing its position as a leading research hub and a top destination for scientific talent globally.
Laboratories across the country are already laying off workers and halting projects, potentially affecting ongoing clinical trials. Top universities like Harvard and the University of Pennsylvania have announced employment freezes. Other countries are actively recruiting American scientists, offering a more welcoming environment.
Economists argue that taxpayer-funded research is crucial for early-stage studies that may not attract private investors. Research has shown that every dollar invested in research and development yields about $5 in economic returns, including intangible benefits like increased longevity and leisure time.
“Research is a high-return activity that benefits society in many ways,” said economist Benjamin F. Jones from Northwestern University. “We need to invest more in research to stay competitive.”
Unexpected discovery
Hudson Freeze’s groundbreaking research in microorganisms in the 1960s led to important discoveries in DNA replication and genetic sciences. His work showcases the vital role of government funding in scientific research.
Dr. Freeze’s discoveries underscore the importance of government support for scientific breakthroughs. While private investors may overlook research on rare disorders, government funding has led to significant advancements in medical science.
The US research and development system, established during World War II, has been instrumental in driving economic growth and innovation. Federal investments in research have led to key technologies like the Internet and modern medicine.
…
Immigration plays a crucial role in driving scientific and technological advancements in the US. Despite accounting for a small percentage of the population, immigrants have contributed significantly to innovation, patents, and entrepreneurial ventures.
Changes in immigration policy and the perception of the US as unwelcoming could deter foreign students and scientists from choosing the US for education and research. Research has shown that restrictions on immigration during the Trump administration led to a decline in Chinese students studying in the US.
“International students and scientists are responsive to the environment in the US,” said economist Britta Glennon from the University of Pennsylvania. “A welcoming atmosphere is crucial for attracting global talent.”
Over the past 12 months, Google’s efforts to accelerate drug design using artificial intelligence have achieved a breakthrough in mimicking human biology, with its top scientist receiving the Nobel Prize in Chemistry.
Now, within the software giant, Isomorphic Labs is taking another major step towards raising money from outside investors, with the aim of developing and commercializing technology.
Isomorphic is set to announce on Monday that it has raised $600 million, led by Thrive Capital, a venture capital firm that has placed a big bet on AI companies, including OpenAI. GV’s Venture Capital Arm and Google’s parent company Alphabet have also invested.
The announcement highlights Google’s ambitions for Isomorphic. This was spun from the company’s DeepMind Lab to focus on drug discovery. It is based on software developed by DeepMind, a central intelligence lab in London. This includes Alphafold, which can predict structures such as millions of proteins.
In its third iteration, Alphafold, which can predict complex behaviors of DNA and RNA, promises to reduce development time for new drugs. That’s how I shared with Demis Hassabis, co-founder of Isomorphic and DeepMind, John M. Jumper, who last year shared half of the Nobel in Chemistry.
Hassabis said the goal is to carry out most of the drug discovery process ultimately via computers rather than traditional labs that require biological materials, strict safety requirements and a lot of time.
“This is the most useful and number one application for AI,” Hassabis said in an interview. He added, “One day our mission is to solve all diseases.”
Allogeneity is studying potential treatments, including those focusing on cancer and immune disorders. Last year, they signed a research partnership with two major drug makers Elilily and Novartis, potentially bringing billions of payments through promising drug breakthroughs.
But like many things related to AI, the job, hiring top research talent to do it, is expensive. Hassabis said Isomorphic didn’t need capital — its parent company reported profits of more than $100 billion last year, but bringing in external partners makes sense.
Hassabis’s idea made it possible for a long time. However, he added that he wanted to pin the supporters over the long term, which also had a deep focus on life sciences.
Additional money will help Isomorphic expand its stable research model like Alphafold, recruiting the best talent across the science field.
“The company’s ambition is to become a fully stacked life sciences company, so it will require more capital to create more drugs and invest in technology platforms,” said Vince Hankes, a thriving partner who has led many of the company’s AI investments.
Hassabis added that he wants to be selective with a partner of the same type. Formal consultations with Thrive took place over several months.
Funding is another big bet by 15-year-old Thrive, who put together money to invest in companies like Instagram and Payments Processor Stripe. He recently focused on AI companies, leading the recent round at OpenAI, which nearly doubled its valuation to $157 billion, winning Analytics Provider Databricks and programming startup Anysphere.
“Our hope is for AI to fundamentally change the way drugs are created and discovered,” said Joshua Kushner, founder and managing partner of Thrive. “Isomorphisms push the boundaries of what small molecule drug discovery is possible.”
Over the next year or so, the isomorphism hopes to create more breakthroughs with computational models like Alphafold, perhaps bringing drug candidates closer to preclinical trials, Hassabis said.
Isomorphic will likely raise money from more outside investors, he added. The goal is for the company to become an independent business.
“This will be one of the most consequential companies,” he said. “We want it to be a real powerhouse in the industry.”
The Trump administration plans to discontinue US financial support for Gavi, an organization that has been instrumental in purchasing crucial vaccines for children in developing nations. Gavi has saved millions of lives over the past 25 years and has significantly expanded its efforts to combat malaria, which is one of the leading causes of death worldwide.
It has been decided that the administration will continue its major drug subsidies for HIV and tuberculosis treatments, as well as maintain food aid for countries experiencing civil wars and natural disasters.
These decisions were outlined in a 281-page document sent to Congress on Monday night by the U.S. International Development Agency, detailing foreign aid projects that are expected to be terminated. Copies of spreadsheets and other documents describing the plan were obtained by The New York Times.
The document portrays the US as a compassionate ally, highlighting the significant scale of the withdrawal from longstanding efforts and emphasizing the commitment to leading the fight against infectious diseases that claim millions of lives each year.
The cover letter provides details on the reduction of funds to USAID, with a significant portion of its budget being cut and only 869 out of over 6,000 employees remaining.
The administration has decided to continue 898 USAID awards while terminating 5,341, according to the letter. The value of the remaining programs is reported to be up to $78 billion, with $8.3 billion still available for disbursement. This suggests a substantial $40 billion reduction in annual USAID spending.
A State Department spokesperson overseeing the remainder of USAID confirmed the accuracy of the termination list, stating that each award was reviewed based on agency priorities and if deemed inconsistent, it was terminated.
The memo presented to Congress portrays foreign aid as a unilateral decision. However, there are questions about the administration’s legal authority to terminate these programs, as spending on specific health initiatives is typically allocated by Congress.
Several programs, including funding for the UN Food and Agriculture Organization and efforts to combat malaria, have been terminated.
Sierra Leone’s health minister, Dr. Austin Demby, expressed concern over the termination of US funding for Gavi, emphasizing the impact on children’s health globally.
He highlighted the importance of Gavi’s support in purchasing vaccines and providing critical aid, particularly during outbreaks such as MPOX.
Dr. Demby urged the US government to reconsider its decision, emphasizing that investing in Gavi is essential for global health security.
Gavi has been credited with saving the lives of 19 million children since its inception 25 years ago, with the US contributing 13% of its budget.
The termination of the grant to Gavi, valued at $2.6 billion until 2030, could have serious consequences for vaccine distribution in low-income countries.
The loss of US support may lead to a significant reduction in Gavi’s ability to provide essential services, potentially impacting millions of children who rely on vaccinations.
Gavi’s estimates suggest that without US funding, 75 million children may not receive routine vaccinations in the next five years, resulting in over 1.2 million deaths.
The United States has been a key donor to Gavi and has played a crucial role in supporting the organization, particularly during the Covid-19 pandemic.
Dr. Sania Nishter, the CEO of Gavi, expressed hope that the Trump administration would reconsider its decision to cut support, emphasizing the importance of Gavi’s work in protecting global health.
Vaccinations provided by Gavi not only safeguard individual children but also reduce the risk of major disease outbreaks. Gavi maintains a global stockpile of vaccines against diseases such as Ebola and cholera for rapid response efforts during outbreaks.
While the administration has indicated that the foreign aid review process is complete, there is still funding available for some programs to continue. However, there have been significant reductions in malaria response efforts, impacting vulnerable populations in countries like Cameroon and Tanzania.
The memo also highlights staffing changes at USAID, with some employees being placed on administrative leave or terminated, raising concerns about the agency’s operational capacity.
The US State Department has allocated $400 million to purchase new Tesla armored vehicles, despite Tesla CEO Elon Musk leading efforts to reduce government spending during Donald Trump’s term.
Sector-generated procurement forecasts indicate a proposed expenditure of $400 million (£320 million) for “armored Teslas (production units).” These vehicles could potentially be the Cybertrucks, Tesla’s latest electric pickup model, touted by Musk as being bulletproof.
This revelation raises concerns about a possible conflict of interest for Musk, who is a major beneficiary of US government contracts through his various companies.
While Musk’s wealth primarily comes from Tesla, his rocket company SpaceX is a key contractor providing space launch services to the US government.
Despite Musk’s efforts to streamline government spending, particularly through his initiative named Doge, Trump has also involved him in government efficiency efforts. These actions have been criticized for potentially violating the US Constitution.
State Department documents suggest that the Tesla contract will be finalized by the end of September.
The department’s website originally included a forecast document dated December 13, 2024, showing the Tesla procurement plan. However, a later version corrected this entry after it was reported by Drop Site News, replacing “Tesla” with “armored electric vehicles” (EVs) without specifying the brand.
In addition to Tesla, the US government also procures armored vehicles from other manufacturers, as indicated in the procurement documents.
The lawsuit names both the National Institutes of Health and the Department of Health and Human Services as Defendants, stating that the impact of the changes in indirect rates announced on Friday would be “immediate and catastrophic.”
NIH revealed on Friday that it will cap indirect funding for research projects at 15% and significantly decrease the federal government’s funding for research institutions for equipment, maintenance, utilities, support staff, and more. Previously, these rates were negotiated with the agencies. The new policy took effect on Monday for all new and existing NIH grants.
The lawsuit, filed on Monday in U.S. District Court in Massachusetts and led by the attorney generals of Illinois and Michigan, alleges that the NIH violated the Administrative Procedure Act and disregarded the will of Congress, which aimed to prevent changes in indirect cost rates since 2018.
All Democratic state Attorneys General are part of this lawsuit.
The lawsuit demands a temporary restraining order and an injunction to prevent the NIH from implementing the new rules.
Scientists have warned that reducing indirect costs will negatively impact research efforts, hinder basic science research, and potentially impede disease research and new discoveries.
In response to the proposed changes, the University of California System stated that this will significantly reduce personnel and services, affecting education, training, patient care, basic research, and clinical trials.
Supporters of the NIH policy change argue that indirect costs are currently excessive and need to be controlled.
According to a Friday post by x, Katie Miller from the newly formed Government Efficiency Bureau, or Doge, stated: “This will reduce Harvard’s exorbitant costs by $150 million annually.”
Elon Musk seems to have many preferences. The world’s richest man is evangelical about electric cars, space travel, and Donald Trump. Another of his interests could have a significant impact on British politics.
The billionaire is reportedly considering paying a rumored £80m to Nigel Farage’s British Reform Party, becoming its biggest donor in history.
Musk watchers say that, like many who supported Trump’s militant brand of right-wing populism, he became radicalized by frustration with the lockdowns.
Frustrated by the damage to manufacturing at Tesla car factories, he began spending more time online and testing the limits of the misinformation rules set by Twitter, as it was then known. Ta.
Now that he helped propel Trump to the White House, he is reportedly turning his attention to Britain.
Reform officials say they have no knowledge of Mr. Musk’s spending plans, which Mr. Musk also denies. But if the Tesla and X owners back up their online criticism of Keir Starmer’s government with huge donations to the Labor opposition, it could be one of the most significant political moves of this parliament.
Within two years of acquiring Company X (formerly Twitter) in October 2022, Mr. Musk has already become a darling of the international far-right, and under the banner of free speech has previously suspended his account. Thank you for reviving it. But Musk went further, using his account to amplify the messages of far-right activist and convicted criminal Stephen Yaxley-Lennon, also known as Tommy Robinson.
By the time riots erupted in British cities this year, Mr Musk had engaged in a full-scale onslaught against the Labor government, claiming “a civil war is inevitable” and echoing that position, calling the prime minister “two-tiered”. Police reportedly treated white far-right “protesters” more harshly than minorities.
But over the weekend there were hints that Mr Musk might trade words and actions regarding the UK when the Sunday Times reported: He may be about to donate £80m He was a supporter of Nigel Farage’s British Reform Party and believed that the MP would be the next British Prime Minister.
Mr Musk denied the claims on Thursday, but Reform UK has remained noticeably silent on the matter, while Mr Farage boasted last month that he was counting on the support of his “new friend Elon” in the next general election. I was doing it. A major donor to his party even said quite bullishly to the Guardian this week: “Keep an eye on this area.”
Mr Musk’s wealth has increased by $133bn (£104.4bn) so far this year, reaching $362bn from his roughly 13% stake in Tesla and ownership in a number of companies.
The reasons behind Mr Musk’s apparent hostility towards Starmer and interest in Britain may be more complex.
Various theories about why the UK has been targeted by Mr Musk include the idea that he has come to view the UK as the epicenter of what he calls the ‘waking mind virus’. , blames Musk for his estranged daughter’s gender change. .
An even more outlandish theory, based partly on Musk’s time with X, is that Musk’s tweets in response to breaking news in the UK are a result of his tendency to stay up late in the US is.
“I don’t think you should tweet after 3am,” Musk told the BBC last year.
But one of the most obvious explanations is Musk’s own liberal, ultra-free speech vision that X is the true “town square” of the internet, and Labor’s mission to crack down on online hate speech. It is related to a clear conflict between
Mr Musk is “not accountable to anyone”, Peter Kyle, the UK science and technology secretary who is directly responsible for the government’s engagement with social media companies, complained in August. Also irritating Mr. Musk, Mr. Starmer’s current chief of staff has been involved in the creation of the Center for Countering Digital Hate (CCDH), which criticizes Mr. Musk for stripping away guardrails against hate speech on Twitter. This is likely a role played by Labor Party officials, including Morgan McSweeney, who is the head of the party. . In October, Musk issued a “declaration of war” on CCDH, calling it a “criminal organization” and saying he would “go after” it.
But there is no sign that holding Mr Musk to account will stop Britain’s move into right-wing politics. Beyond the near-relentless torrent of tweets, it’s even more uncertain how Mr Musk will expand his footprint in British public life.
Mr. Musk could avoid strict regulations on overseas donations by providing the funds through Company X’s British arm or by securing British citizenship. Her father, Errol, claims he is eligible because his grandmother is British.
Mr Musk may also be tempted to take further discussions with British industry and engage further with Starmer’s government.
Mr Musk was last in the spotlight in the UK last November when he attended the first AI Safety Summit at Bletchley Park, home of the Enigma codebreakers. People who encountered him at the Bletchley summit said he was polite, talkative, surrounded by a surprisingly minimal entourage, and appeared to handle much of the official email about the event himself.
This convinced one former government adviser that discussing AI policy was probably the best way for Labor to forge a beneficial relationship with Mr Musk. The tech mogul, who founded his own AI company xAI, has consistently warned about the dangers of unchecked technology development. Speaking at the summit, he said, “There is a greater than zero chance that AI will kill us all.”
The former adviser said the creation of the UK AI Safety Institute by Rishi Sunak’s government, then the world’s first, could carry some weight for Mr Musk.
“He cares about the safety of AI, and has done so for years. A grown-up conversation with him about the UK’s world-leading work on national security risks from AI is a good place to start.” “I think Rishi Sunak will be a good ambassador even if Starmer finds out next,” the former adviser said. Politically undesirable. “Musk doesn’t suffer fools and Sunak really knows what he knows about AI.”
Another option would be to send Mr. Kyle and National Security Adviser Jonathan Powell, who were impressed with their understanding of the brief. “It would show seriousness,” the former adviser said.
On a gloomy November day in England’s Cotswolds, a VX4 that looked like a cross between a plane and a helicopter rose from an airport runway, hovered a few feet off the ground before sinking.
It may not have reached that high of an altitude, but it was a seminal moment for British owner Vertical Aerospace. The company has received millions of pounds of support from British taxpayers but is running out of money.
The flight came amid tense negotiations with investors that could see founder Stephen Fitzpatrick lose control to a US hedge fund, with the electric aircraft tethered to the ground for safety. We showed evidence that it is possible to transport people without having to carry them.
Verticals have already experienced what can happen when things go wrong. On a sunny day in August last year, the adhesive holding the blades of one of its eight rotors in place broke, causing the unmanned aircraft to crash onto the runway. The 3.7-ton aircraft crashed into a 30-foot crumpled heap, its blade landing 50 meters away. There were no injuries.
The accident and financial difficulties highlight the difficulty of making flying taxis a reality. Almost a century of effort. Vertical announced on Tuesday that the date its first aircraft would receive approval from UK regulators to carry passengers will be pushed back by another two years to 2028.
Stephen Fitzpatrick founded Vertical in 2016. Photo: Geoff Overs/BBC/Reuters
Vertical initially claimed the aircraft would have room for four people, a range of 160 miles, a top speed of 150 miles per hour, and would enter service by 2025. Vertical chief executive Stuart Simpson confirmed to investors this week that the company had chosen the UK as its destination. A factory that manufactures 200 aircraft a year. But cautious regulators and suppliers paid a price for the ambitious schedule.
A number of startups are trying to develop flying taxis, known in the industry as electric vertical takeoff and landing vehicles (Evtol). For several years, they seemed to be making rapid progress as investors sought empty Teslas, backed by cheap money.
Flying taxi companies such as Joby Aviation and Archer Aviation in the US and Volocopter in Germany have raised large sums of money and built flying prototypes. Three major aircraft manufacturers are participating in this competition through their subsidiaries: Europe’s Airbus, America’s Boeing, and Brazil’s Embraer.
Vertical took advantage of that wave. Fitzpatrick, an entrepreneur who also invests in F1 teams and derives most of his £800 million fortune from energy company Ovo, founded Vertical in 2016. The company was listed on the US stock market in 2021 with a valuation of $2.2 billion.
But rising interest rates and slow development are causing investors to pause before pouring in more money. Vertical’s stock price has fallen 95% since the coronavirus pandemic bubble, valuing it at just $110 million.
U.S.-listed peer Lilium filed for bankruptcy for its German subsidiary last month and is looking for a buyer to rescue it. Bloomberg reported on Wednesday that Chinese automaker Geely is in talks to bail out its Volocopter after its value also fell. Britain’s Rolls-Royce has scrapped plans for a flying taxi business, nearly three years after its plane broke the airspeed record.
A prototype flying taxi being developed in the United Arab Emirates has been unveiled at a taxi rank outside Charing Cross station in London. Photo: David Parry/Pennsylvania
An industry official said, “A large-scale bubble has occurred.” “We’re finally nearing the end.”
In the longer term, concerns remain about how flying taxis in crowded skies will be regulated. However, the industry received some positive news after US authorities issued regulations on how such vehicles should be operated and how pilots should be trained.
Simpson told investors the company needs about $100 million to cover costs next year. Cash at the end of September was £42.8m.
If negotiations with major financial institutions are successful, the immediate funding crisis may be eased. Fitzpatrick and Vertical have been in talks for nearly a year with Jason Mudrick, an American distressed debt investor who made a fortune investing in “meme stocks” such as AMC Entertainment and GameStop during the pandemic. .
Mudrick proposed converting about half of Vertical’s previous $200 million in financing into equity in exchange for a cash infusion of up to $50 million.
However, in a letter to Vertical’s board last month, he said: “Mr. Fitzpatrick has refused to accept a contractual dilution of approximately 70% of his company’s shares, which he has repeatedly rejected. “There is,” he said.
Mr. Fitzpatrick is seeking a 30% stake, but the deal would leave existing shareholders with only 20% of the company. An agreement could pave the way for other investors to make new equity investments. Candidates could include Virgin Atlantic Airways, American Airlines, and previous investors such as Microsoft and control systems supplier Honeywell.
Vertical boasts a low-cost model of buying off-the-shelf technology from existing suppliers, but it could need $500 million to $1 billion to get through four years without revenue.
Despite investors expressing concerns about launch delays, Simpson said he was “optimistic” about the funding. But with Toyota investing another $500 million in Joby and Beta Technologies raising $300 million last month, some investors believe that if the technology can prove to work, the flying taxi company will still have the cash. He reassured them that they could secure the
“The funding environment is tough and there is a shakeout in the industry,” Simpson said. “I think we’ll be one of the winners.”
An innovative British startup focusing on technology to prevent cold and damp in rental homes has received new funding to expand its operations. This comes as landlords are now recognizing the importance of addressing mold issues in older social housing units.
Switchey has raised £5 million, with existing investors AXA IM Aults and Octopus Ventures each contributing. The company aims to use this funding, combined with a previous investment round of £6.5 million led by AXA, to install its technology in 1 million UK social housing units.
Switchey’s technology, utilized by over 130 social housing providers, monitors humidity, temperature, and pressure to prevent mold, lower heating costs, and enhance communication between tenants and landlords.
The quality of social housing has been under scrutiny following the tragic death of a two-year-old who succumbed to mold in his rented flat. Switchy’s CEO Tom Robbins stated that there is a growing demand for improved housing standards, prompting landlords to seek technology-driven solutions.
The company aims to address the disparity in access to cost-saving technology, particularly for those struggling with heating bills. Switchey’s equipment has already made a significant impact, helping families living in unsafe conditions due to damp and mold.
In addition to reducing heating costs and improving housing conditions, Switchey’s technology contributes to environmental sustainability. The company is part of initiatives like the Social Housing Decarbonisation Fund to promote energy-efficient solutions.
Revenue at Switchey has doubled over the past three years, reaching £10 million in the last fiscal year. While focused on scalability, the company remains committed to its social and environmental mission.
Edward Kieran, a partner at Octopus Ventures, highlighted Switchey’s focus on social housing and environmental impact. The company has achieved B Corp Status and counts AXA as its largest shareholder.
Founded in 2015 by Adam Hudakowski and Ian Napier, Switchey has connected 35,000 devices in homes to date. The company aims to reach a million homes over the next five to ten years as a tribute to Napier, who tragically took his own life in 2019 but played a crucial role in shaping the company’s vision.
Grand Cayman, Cayman Islands, April 22, 2024, Chainwire
Alibaba Cloud, AngelHack and dWallet are among the latest supporters of the global event.
Sui Layer 1 blockchain offering industry-leading performance and infinite horizontal scaling funds Sui Overflow, the first-ever global virtual hackathon focused on creating exciting products on Sui. Our offering has doubled in recent weeks thanks to donations from our loyal supporters.
Originally set at $500,000, Sui Overflow’s funding pool grew to $1,000,000 after a surge of support from outside backers. With the help of a huge reward pool, builders from all over the world come together to build projects on the Sui network and demo them in front of judges. Categories eligible for prizes include Consumer & Mobile, Infrastructure & Tools, Gaming, DeFi, and more. Developers are also encouraged to take advantage of specific technologies in the Sui ecosystem, such as zkLogin, advanced movement capabilities, randomness, and multi-chain capabilities.
Sam Blackshear, co-founder/CTO of Mysten Labs and creator of the Move smart contract language said: , Kiosks, DeepBook, and native randomness. Some of Sui’s top projects have come from previous local hackathons, so we’re really looking forward to seeing what our first global hackathon will produce.
Previous Sui-sponsored hackathons have been fertile ground for projects that started as hackathon participants to grow into sustainable businesses on the network. Scallop was launched in June 2023 at Sui’s Soul Builder House with a small team of developers who won the first place in the event. Currently, Scallop has over $117 million in its TVL and is one of the better DeFi protocols in Sui. Navi Protocol is also one of Sui’s “Hackathon Heroes”. A month after Scallop, the Navi team emerged and won the gold medal in the DeFi and Payments category of the Sui X KuCoin hackathon. Navi currently has over $130 million in TVL and is another major DeFi protocol in Sui.
In addition to the support of title sponsor dWallet Labs, the hackathon is sponsored by Elixir Capital, Alibaba Cloud, Comma3 Ventures, MoveBit, Scallop, GSR, Supra, Wormhole, AngelHack, Pyth, Ryze Labs, and ZettaBlock. The prizes awarded in each category at the Sui hackathon are as follows: First place will receive $30,000, second place will receive $15,000, and second place will receive $7,500. Ten $2,500 University Prizes and ten $2,500 Community Favorite Prizes will also be awarded during the hackathon. Additionally, contestants are not limited to a single category. Individual teams can participate in multiple tracks simultaneously, with prize pools exceeding $100,000. Additionally, many projects in the Sui ecosystem offer unique incentives, adding even more ways for great projects and great teams to benefit.
With funding doubling to $1 million, Sui Overflow participants will receive Sui Foundation acceleration grants after the hackathon, along with benefits such as audits and credits to support the successful launch of their projects. be eligible to receive it.
“Homegrown projects born out of developer meetups and hackathons like Sui Overflow are a critical part of the lifeblood that will sustain the Sui ecosystem into the future,” said Greg Siurounis, Managing Director of the Sui Foundation. “Overflow’s impact has been greatly strengthened by the overwhelming support from the Sui community, which has allowed us to expand our reward potential beyond our planned trajectory and provide prudent funding, audit credits, and, we were able to benefit the most promising projects with selected acceleration grants.”
“Sui Overflow is more than just an event. It is the launching pad for our brightest future blockchain innovators,” said Omer Sadika, co-founder of dWallet Network. “We are very proud to work with all the partners involved and look forward to seeing the results from this hackathon.”
Users can apply and developers can register Sui overflow portal Find all the more detailed information. We encourage everyone to join for regular updates. Discord server overflow.
Grand Cayman, Cayman Islands, April 22, 2024, Chainwire
Alibaba Cloud, AngelHack and dWallet are among the latest supporters of the global event.
SuiLayer 1 blockchain that delivers industry-leading performance and infinite horizontal scaling funds Sui Overflow, the first-ever global virtual hackathon focused on creating exciting products on Sui Our offering has doubled in recent weeks thanks to donations from our loyal supporters.
Originally set at $500,000, Sui Overflow's funding pool grew to $1,000,000 after a surge of support from outside backers. With the help of a huge reward pool, builders from all over the world come together to build projects on the Sui network and demo them in front of judges. Categories eligible for prizes include Consumer & Mobile, Infrastructure & Tools, Gaming, DeFi, and more. Developers are also encouraged to take advantage of specific technologies in the Sui ecosystem, such as zkLogin, advanced movement capabilities, randomness, and multi-chain capabilities.
Sam Blackshear, co-founder/CTO of Mysten Labs and creator of the Move smart contract language said: , Kiosks, DeepBook, and Native Randomness. Some of Sui's top projects have come from previous local hackathons, so we're really looking forward to seeing what our first global hackathon will produce. ”
Previous Sui-sponsored hackathons have been fertile ground for projects that started as hackathon participants to grow into sustainable businesses on the network. Scallop was launched in June 2023 at Sui's Soul Builder House with a…sumers are not limited to a single category. Individual teams can participate in multiple tracks simultaneously, with prize pools exceeding $100,000. Additionally, many projects in the Sui ecosystem offer unique incentives, adding even more ways for great projects and great teams to benefit.
With funding doubling to $1 million, Sui Overflow participants will receive Sui Foundation acceleration grants after the hackathon, along with benefits such as audits and credits to support the successful launch of their projects. be eligible to receive it.
“Homegrown projects born out of developer meetups and hackathons like Sui Overflow are a critical part of the lifeblood that will sustain the Su…ns, we were able to benefit the most promising projects with selected acceleration grants.”
“Sui Overflow is more than just an event. It is the launching pad for our brightest future blockchain innovators,” said Omer Sadika, co-founder of dWallet Network. “We are excited and honored to work with all partners involved and look forward to the results from this hackathon.”
WASHINGTON — THE PRESIDENT Joe Biden marked Earth Day by announcing $7 billion in federal grants for residential solar power projects serving more than 900,000 households in low- and moderate-income areas. He also plans to expand the New Deal-style U.S. Climate Change Corps Green Jobs Training Program.
The grants were awarded by the Environmental Protection Agency, with 60 recipients announced on Monday. Government officials expect the projects to reduce emissions by the equivalent of 30 million tons of carbon dioxide and save households $350 million a year.
Biden’s climate announcement is aimed at energizing young voters in his re-election bid. Young people played a key role in defeating then-President Donald Trump in 2020. They have shown interest in Biden’s climate policy and are eager to contribute through programs like the Climate Change Corps.
Solar energy is gaining popularity as a renewable energy source that can reduce dependence on fossil fuels and improve the power grid’s reliability. However, the initial installation cost of solar energy remains a barrier for many Americans.
The grants include 49 state-level grants, six grants for Native American tribes, and five multi-state grants. They can be used for investments in rooftop solar power generation and community solar gardens.
Biden made the announcement at Prince William Forest Park in northern Virginia, about 30 miles southwest of Washington. The park was established in 1936 by President Franklin D. Roosevelt as part of his Civilian Conservation Corps during the Great Depression.
Biden’s American Climate Corps, modeled after President Roosevelt’s New Deal, offers about 2,000 positions in 36 states, including partnerships with the Building Trades Union of North America.
The grants are part of the Solar for All program, funded by a $27 billion “green bank” established as part of a broader climate law initiative. The program aims to reduce climate change, air pollution, and support disadvantaged communities most affected by climate change.
EPA Deputy Administrator Janet McCabe expressed excitement about the funds benefiting communities, providing skills, creating jobs, and helping households save on utility bills.
Among the businesses receiving grants are nonprofit projects in West Virginia, solar leasing programs in Mississippi, and solar worker training programs in South Carolina.
Concerns remain about Republican opposition to taxpayer-funded green banks and accountability for how the funds are used. The EPA previously allocated the remaining $20 billion in bank funds to support clean energy projects in various organizations and communities.
Nibiru Chain, a general-purpose layer 1 blockchain, has successfully closed its latest funding round, securing $12 million in preparation for an ambitious growth phase. Venture investments include funding from Kraken Ventures, ArkStream, NGC Ventures, Master Ventures, Tribe Capital, and Banter Capital.
“Nibiru has taken all the best-in-class technology and research developed over the past few cycles and crammed it into the best new chain we've ever analyzed. Built-in development toolkit, easy-to-use API , language SDK, and is optimized for developers using native Oracle. MV Capital couldn't be more excited to partner with Nibiru as it moves to a new level of cryptocurrency adoption. – Tom Dunleavy, CIO and Partner at Master Ventures Capital
Nibiru’s community sale on CoinList sold out its initial allocation of $3 million in 9 minutes. His additional $3 million extension also sold out within 11 minutes. Ultimately, the sale earned 842% of the pre-funded excess interest and attracted 42,713 registrants and over 5,000 buyers of NIBI, the network's staking and utility token.
Nibiru Chain stands out for its innovative technology and developer- and user-centric focus. Key partners expressed their enthusiasm:
“We look forward to supporting the distinctive Layer 1 model designed by Nibiru, which allows for maximum interoperability while incentivizing developers and users through smart contract loyalty mechanisms. Core primitives are being built in parallel with the core foundation to enable functionality.” – Brandon Gath, Managing Partner, Kraken Ventures
This is the perfect platform for developers who prioritize security and performance. Boasting 40,000 transactions per second (TPS), 1.4 seconds block time, and robust security, Nibiru Chain's versatility spans multiple sectors including real-world assets (RWA), gaming, DeFi, and more. Developers build on her Nibiru Chain with confidence, leveraging CosmWasm smart contracts to enhance security and ease of use with EVM.
Additionally, developers can leverage Nibiru’s “Development Gas” royalty mechanism to ensure a sustainable model for long-term growth. The core of Nibiru Chain is to create the best environment for developers and users.
“Nibiru's integrated super application, native oracle, and data indexing greatly reduce the difficulty of technical choices for Web3 projects, while reducing the likelihood of security incidents. Increased trust, which in turn increases the growth and prosperity of the Nibiru ecosystem. – Allen Su, General Partner, ArkStream Capital
Looking to the future – Nibiru Chain’s 2024 roadmap
In 2024, Nibiru Chain aims to expand its ecosystem. Key developments include gamified engagement airdrops, integration with major liquidity centers, listing on multiple top-tier centralized exchanges, implementing parallel optimistic execution, and achieving full EVM compatibility. , includes several initiatives.
This is the year when Nibiru Chain’s flagship dApps are scheduled to launch, including Nibi-Perps, Nibi-Swap, and NUSD. These releases will be major milestones in his Nibiru Chain's journey towards a user and developer-centric platform.
About Nibiru Chain
Nibiru Chain is a breakthrough L1 blockchain and smart contract ecosystem with superior throughput and unparalleled security. Nibiru aims to be the most developer-friendly smart contract ecosystem, and by innovating at each layer of the stack (dApp development, infrastructure, consensus, comprehensive development toolkit, and value generation) is leading the way in implementing Web3.
Russ Heddleston, CEO of Dropbox’s DocSend, says that as valuations fall, founders are more than ever “convinced that their company is built to survive with long-term profitability and scalability in mind. “I need to prove that,” he wrote.
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According to data from DocSend, investors aren’t looking at proposal materials as seriously as they used to. However, there is still a market for early-stage deals. “For founders, perfecting their pitch, developing an efficient sales strategy, and quickly narrowing down their product scope will lay a strong foundation for success in attracting investors.”
Thank you for reading. I hope you have a nice vacation.
Ask Sophie: Is it still easy for AI founders to get a green card?
Image credits: Bryce Durbin/TechCrunch
Dear Sophie
I’m interested in the Biden administration’s efforts to retain AI talent in the United States. How is the government making it easier for AI companies to sponsor permanent residency for their employees? Will the number of green cards allocated to individuals in the AI field increase?
— All about AI
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Cryptocurrency valuations “back to reality” in 2023, but venture capitalists expect them to rise again in 2024
Image credits: Getty Images
It hasn’t been a great year for cryptocurrency companies, but change may be on the way. Experts told Jacqueline Melinek that crypto trading is likely to become active again in 2024. “The tougher funding environment in 2023 only culled out weaker companies that were able to secure capital in 2021,” she wrote.
From Seed to Series A: Strategic Insights for Technology Founders in the 2024 Venture Environment
Image credits: Getty Images
A new report from Forum Ventures provides a good look at the current state of early-stage B2B SaaS investing.
While the data may be discouraging, the silver lining is that rounds are still being made and companies that find product-market fit will likely scale up in the next few years, likely in the next bull market. “This means they should benefit,” wrote the CEO of Forum Ventures. Managing Partner Mike Cardamone.
Bestwell, which provides infrastructure for employers to promote workplace savings programs, has raised $125 million in what the company calls a “pre-emptive” funding round.
Lightspeed Venture Partners led the round, with participation from existing backers Fin Capital, Primary Venture Partners, and FinTech Collective, as well as new investors Blue Owl and HarbourVest.
The New York-based fintech company declined to reveal its valuation.
As part of this round, Justin Overdorff, Lightspeed’s lead fintech partner, joined Vestwell’s board of directors.
bestwell CEO Aaron Schumm founded the company in 2016 and launched its cloud-native platform in 2017. In this latest round, he raised $227.5 million.
Shumm declined to provide specific revenue numbers, but told TechCrunch via email that the startup: “We achieved revenue growth of over 1,000% in three years.”
“ARR and sales will also increase by more than 100% in 2023,” Schumm said, noting that the company is “on the path to profitability in the near term.”
bestwellHe added, “Prior to this pre-empted Series D funding, it was funded through profitability.” The company’s last raise was a $70 million Series C round in 2021.
More than 1 million employees at 300,000 companies use the Vestwell platform, which the company says has contributed to nearly $30 billion in asset savings over time. The company operates in partnership with financial institutions such as Morgan Stanley and JPMorgan, state governments, and payroll companies, and generates revenue for Bestwell through per-employer or “per-saver” monthly fees. . Bestwell says that as a partner extension, it enables an array of programs that include retirement, health, and education, including 401(k), 403(b), IRA, 529 Education, ABLE disability programs, and emergency savings programs. There is.
Earlier this year, JPMorgan used Bestwell to expand its 401(k) product.
“We help these companies migrate away from outdated legacy platforms, giving them a competitive edge when entering severely underserved markets,” Schum said. states.
Schum said Bestwell’s public-private partnerships are increasingly driving the company’s business by giving state governments a way to provide a “personalized savings experience.”
“We are now a leading partner in this space, currently powering 80% of the Live State Auto IRA savings programs in this country,” he said.
The company will use the new funding to expand its National Savings and other public savings program initiatives, enhance existing products and develop new products. About half of the new funding will go toward acquisitions, Schumm said. July, Bestwell Acquires student loan benefit provider Gradifi It was acquired from Morgan Stanley for an undisclosed amount.
Vestwell has just over 350 employees and has grown its team size by approximately 40% in the last year.
Lightspeed’s Oberdorf said the company was “deeply impressed with Bestwell” and impressed by the company’s “groundbreaking infrastructure-first approach to solving America’s systemic savings problem.” He said he received it.
“They are undeniably a dominant player and a true disruptor when it comes to the world of savings. Lightspeed is excited about our investment. I am proud to join the board and look forward to accelerating this I look forward to working closely with Aaron and his team to bring the company together. ”
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Claim, a platform that doubles as a rewards app and social network, has raised $4 million in a seed funding round led by Sequoia Capital. The startup is on a mission to make shopping fun, rewarding, and social. The app was released as an invitation-only beta version in January, and is currently being used primarily by college students in Boston.
Claim also allows users and their friends to earn cash back, exchange rewards, and redeem together. The platform is a social network that aims to focus on real-world value and communal experiences, rather than manufactured content and reposts.
The startup was founded in November 2021 by CEO Sam Obretz and CTO Tap Stevenson. The two met when they were roommates at Yale University and came up with the idea for Claim when they met again at Harvard Business School. Obretz and Stevenson originally started by thinking about what it means to own something digital.
“We started Claim because we were really interested in what it meant to own something online,” Stevenson said in an interview with TechCrunch. “We saw this with web3 and the sport is also emerging as a collector’s item. There has always been a place online where you can own something, but there has never been a generalized format. So I We started thinking about what it meant to actually remove all the friction of owning something online, and that led to complaints over time.”
The two started by envisioning a platform that could be used in the real world and where you could earn rewards linked to your credit card. We then decided that we needed to allow users to use and exchange rewards with their friends. When they came up with these ideas, Obretz and Stevenson realized they were tapping into a social mechanism that doesn’t widely exist today.
Claims are similar to the idea of trading cards, but create a new kind of value-based experience for brands for consumers. The company says it has turned consumer rewards into a multiplayer game by allowing users to save money and create new experiences together.
Image credits: Claim/Claim Co-Founders Sam Obletz and Tap Stephenson
If it’s a brand you love and your friend hasn’t checked it out yet, you can give them a special treat like a free acai bowl from their favorite coffee
shop or a t-shirt from their favorite streetwear brand. You can exchange rewards, try new places together, and earn status from spending with brands. Once a week, Claim also does “drops” where users open new offers at the same time. Users can decide whether to redeem, gift, or exchange rewards with friends.
While Claim aims to be beneficial to consumers, the startup also aims to help marketers and brands reach new customers without being bombarded with ads on Google, Instagram, and TikTok. We also place emphasis on On Claim, consumers discover brands through rewards from friends. The startup believes that when reaching new customers, being able to try out a product is more beneficial than advertising.
“We make it super easy for marketers,” Obretz says. “We can find customers based on where they shop and where their friends shop. For users who have never done it before, we offer rewards for trying your brand for the first time. This is very important because it brings in genuine new customers. It also allows you to show how effective that reward was based on their spend. That’s why we created It’s this very simple marketing tool.”
The startup currently works with merchants ranging from Fortune 500 companies like PepsiCo to local restaurants like Boston’s Life Alive.
Claim’s early results are promising, with one partner on the platform achieving 97% of new customer goals in half the time expected, and another partner acquiring customers within 30 days with a 35% return rate. says.
Claim is currently focused on Gen Z as its overall user base. This is because people in this group are interested in authenticity and think they are tired of advertising, especially since it seems like every post on social media these days is sponsored. The startup hopes to continue testing in Boston, where it currently has more than 10,000 users, before eventually expanding nationwide.
As for the new funding, the company plans to use it to hire new talent and grow its team of eight people over the next year. Claim will also use the funding to focus on testing and learning from an engineering perspective before expanding into new markets.
The startup’s seed round follows an unannounced $2 million pre-seed round led by Susa Ventures and Box Group. Claim’s funding round included participation from 6th Man Venture, Reflexive Capital, A* Capital, GSW Ventures, The Kraft Group, and others.
ShareChat is in the final stages of discussions to secure about $50 million in new funding that would bring the startup’s valuation below $1.5 billion, according to two people familiar with the matter.
Existing backers including Temasek and Tencent are among the investors in advanced stages of talks to invest in the new round, the sources said, asking not to be identified as the matter is private. Stated. ShareChat has been in talks with several potential new investors this year, and one of the potential investors the startup has engaged says that ShareChat is expected to receive a high valuation compared to its current low revenue. Many investors are hesitant to take this opportunity because of the current situation.
The terms of the negotiations are still ongoing and could change slightly, according to people familiar with the matter, but ShareChat’s current valuation is less than $1.5 billion, which is the same as when ShareChat raised funding early last year. This is a significant drop from its valuation of $4.9 billion.
The round could be completed as early as the end of the year. ShareChat did not immediately respond to a request for comment Wednesday morning. Temasek declined to comment, citing its own policies.
The loss-making Bengaluru-headquartered startup, which operates a social network and counts X, Snap and Tiger Global among its backers, has raised more than $1.4 billion so far, according to venture intelligence platform Tracxn.
Amid the TikTok ban, ShareChat’s failed bet in India’s short video space forced it to raise capital and prompted a price cut. (TechCrunch exclusively reported earlier that in late 2020 and early 2021, X considered acquiring ShareChat in a $2 billion deal.)
Sensor Tower estimates daily active users of Google’s Android platform in India (shared with TC by industry executives). In an official statement, ShareChat claims to have over 300 million monthly active users.
ShareChat, which launched short video app Moj in mid-2020, doubled its position in the category by acquiring MXTakaTak, a video app in the Times Internet portfolio, for more than $600 million. But industry analysts say YouTube and Instagram have filled TikTok’s void as creators migrate to these much larger platforms.
Eight-year-old ShareChat is scrambling to find ways to grow revenue and cut expenses after its two co-founders left earlier this year to start a new startup. It has tried a series of initiatives, including a fantasy sports app and a live voice chat service. However, sales were still lower at the end of the fiscal year ending in March. $65 million. The company plans to cut another 15% to 20% of its workforce in the coming weeks, another person said.
Many investors around the world are devaluing their holdings in startups, as the prolonged economic slowdown has also reduced the valuations of nearly all publicly traded technology companies. Prosus recently lowered Byju’s valuation to less than $3 billion from $22 billion in early 2022. Byju’s has raised more than $5 billion through equity and debt.
The last thing I wrote was breaker — a platform that connects record labels, artists, and brands with social media influencers to run large-scale campaigns in a programmatic manner — when it closed a $4.2 million round in 2021. In the past two years, Breaker has hired over 30,000 influencers and generated $3.5 million in deals with creators. Now, to fuel growth, Breaker has secured an additional $1.9 million in his investment at a valuation of $20 million.
Slow Ventures will lead the expansion, which the company will use for recruiting and product development. Breakr is led by Marc Benioff, a16z/TxO, former Tik Tok CEO Kevin Mayer, RGA Ventures, Charles Hudson (Precursor Ventures), Complex founder Rich Antoniello, and Ro Tony. To date, it has raised $8.7 million from an impressive list of investors including (Plexo). Capital), Ant Selah (WdrCo), and Quiet Capital.
While Breakr’s user growth highlights the scale of the creator economy, the modest size of this funding round and the total deal value over the past two years suggests that many of the sector’s business models are still It shows that it is in its early stages.
Still, there is much hope. goldman sachs I estimate that Total addressable market for creator economy could reach $480 billion by 2027.
Players who pay attention to and do business with Breakr will also tell their stories. These include Def Jam, Samsung, Billboard, Rolling Loud, Live Nation, Meta, Tidal, Epic, Kit Kat, P&G, Celsius, Mountain Dew, White Claw, and more. Labels and brands use Breakr to connect music to their campaigns. Meanwhile, musicians include Megan Thee Stallion, Future, Rick Ross, Gunna, J.I.D., Sleepy Hallow, Ozzy Osbourne, Black Pink, Young Thug, Kanye West, Brent Fayers, Toby Nwigwe, Includes the Pink Panther, Armani White, Charlie Ona Friday, and Nas. Investor).
There are many platforms on the market today that connect creators, brands, and content (not just music but other media) to build influencer campaigns. Breakr’s unique selling point is that it effectively treats this basic concept as a programmatic opportunity, similar to how online advertising is created, sold, and distributed today.
“Breakr wants to be Google Ad Words, powered by creators,” co-founder Anthony Brown told TechCrunch. “With the underlying audience data, a ton of liquidity, and intelligence capabilities, I think going to Breakr and spending $15,000 should be as easy as setting it and forgetting it on Google. We believe.”
The company recently started with a more hands-on approach and exited closed beta as a self-service SaaS platform. SaaS platforms are backed by wallets that act as escrow accounts. You can pay money from your wallet for your involvement and services provided.
“This move to a SaaS model aligns with our goal to streamline and democratize the influencer marketing process, making it more accessible and efficient for a wide range of users inside and outside the music industry.” Brown explained.
Currently, Breakr is set up like a three-sided marketplace. On the creator side, individuals submit their profiles to the platform to be considered for campaigns.
On the music side, artists (or labels) submit music to specific campaigns. And once the music is selected, it will be promoted to new audiences. Musicians may pay to have their music used, but as a result, they also take a cut of some of the revenue generated by the campaign.
On the marketing side, brands look for influencers to run promotions and access each influencer’s 40 data points (language, voice location, type of interests, etc.). You can also check those influencers’ past content and engagement rates, or more pointedly, scrutinize their brand safety and see if the influencer in question is dabbling in fake followers. You can also run some diagnostics (to determine how much of a factor, if any, it’s for them).
“The creator economy, especially the music sector, is rapidly evolving with a shift to direct, curated, and scalable relationships between digital marketers and creators. Traditional management tools are becoming obsolete and more efficient is paving the way for relationship-focused technologies. These include platforms that move away from high-cost, short-term campaigns and make it easier to deliver personalized content and offers to creators. “This trend toward continuous, evergreen marketing has proven to be effective, emphasizing the importance of ongoing engagement over one-off interactions,” said Brown.
While music marketing is the company’s main bread and butter, Breaker hopes to eventually branch out into other areas such as film and television.
These days, even niche industries are concerned about people seeking greener material and process options, from washing machine waste to synthetic wool. ring glove uses laminates (thin layers of wood or other materials) with carbon-negative options that they claim will improve performance while still looking the same.
Laminate or veneer is common in every home and car. These are thin decorative pieces of wood that are placed over the molded or printed bodies of dashboards, appliances, and even home trim. It’s everywhere, but unfortunately, it’s not always sustainably sourced or manufactured.
Lingrove has developed an alternative to wood veneer from flax fibers and plant-based resins. This will be a material that is carbon negative yet has “very high stiffness, durability, and durability,” meaning it will be better for feel, temperature, and other materials (such as coffee). ). They call it “ekoa” (yes, in lowercase) and hope to expand into cars and other interior surfaces with a new $10 million funding round.
The Series B round was led by Lewis & Clark Agrifood and Diamond Edge Ventures, with participation from Bunge Ventures and SOSV.
The company claims that its materials are not only environmentally friendly and comparable or better in terms of strength etc., but can also have a positive impact on indoor air quality. Recycled plastics and other repurposed materials are often used for things like cabinetry and trim, but such surfaces often lack the desired appearance, hardness, and other qualities, and in some cases, There can be quite a bit of fumes (that’s the “new car smell”). ).
Image credits: ring glove
“We have healthy air, low carbon, high performance and beautiful products,” said CEO Joe Luttwak. “The use of industrial raw materials can be environmentally beneficial in some cases. However, many of their byproducts still emit VOCs. [volatile organic compounds] These negatively impact indoor air quality and cannot produce high-performance materials. ”
ekoa material has excellent performance, does not allow strange gases to seep into your kitchen or car cabin, and looks almost the same as regular wood. It can be fine-tuned to have different shades and opacity, has all the benefits of engineered laminates while generally being carbon negative, and can be crushed and reused when disposed of.
Image credits: ring glove
You may be wondering, like I did, why not just use real wood, i.e. things like sawdust and wood chips that already come out of the industrial wood treatment process. According to Luttwak, these are perfectly good structural materials, the ones in the center of the board, but they are not decorative. There’s a reason things like MDF boards tend to have at least one side covered in veneer. The interior wood glue mixture is unappealing and not particularly resistant to solvents, oils, etc.
Veneers aren’t the hottest or most exciting business to work on, but innovation is happening in a corner of the industry where smart alternatives can scale up to millions of products and at least reduce waste a little. It’s always reassuring to see that.
The new investment should help the startup go from small-scale in-house manufacturing to fulfilling all pre-orders and expanding into the automotive world.
Tamara, the buy-now-pay-later platform for consumers in Saudi Arabia and the Gulf Cooperation Council region, has recently completed a C round of funding that raised $340 million. This recent funding brings the company’s valuation to $1 billion, making it the first fintech unicorn startup in the region. SNB Capital and Sanabil Investments led the Series C round, alongside other backers such as Shorooq Partners, Pinnacle Capital, and Impulse. This round includes primary capital and some secondary equity transactions, marking one of the largest investments in fintech in the region. Tamara has raised a total of $500 million in equity funding, including secondaries, and over $400 million in debt funding.
Established in 2020, Tamara has quickly gained traction and currently boasts over 10 million users in Saudi Arabia, UAE, and Kuwait. The platform allows consumers to shop, pay in installments, and make bank transfers, and it has partnered with 30,000 merchants, including popular names like SHEIN, IKEA, Jarir, Noon, eXtra, and Farfetch.
The rise in popularity of buy-now-pay-later services in Saudi Arabia has seen significant growth, driven by the booming e-commerce market. According to a report from last year, the number of registered customers for BNPL services increased from 76,000 in 2020 to 3 million in 2021 and 10 million in 2022. With Saudi Arabia’s huge potential for digital payments, the market is expected to grow significantly in the next few years.
CEO Alsukhan emphasized the importance of building a customer-centric payment solution and the platform’s commitment to Shariah compliance. Tamara prides itself on offering a friendly and transparent service, focusing on avoiding unnecessary fees and helping customers make timely payments by offering risk management tools and options based on their financial capabilities.
Tamara’s long-term vision includes expanding its revenue sources and introducing new products and services beyond buy-now-pay-later. The platform plans to strengthen its integration into the shopping journey, introduce a buyer protection program, and enhance its card functionality for in-store transactions.
The recent funding not only represents a significant milestone for Tamara but also signals the region’s growing potential in the fintech industry. As the first homegrown unicorn in the Gulf, the company’s success reflects the supportive ecosystem, financial backing from local and international investors, and a strategic focus on customer satisfaction and compliance.
“Entrepreneurs navigating the later stages of startup are faced with a mine of funding options, not all of which are suitable for their business,” said David Spreng, Founder and CEO of Runway Growth Capital. is writing.
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While there is no one-size-fits-all solution to financing, David explains some options to help you choose the right one for your business. For example, a strategic partnership may be a better fit and can often drive business growth. You also have the option of applying for government grants if it makes sense for your company.
My colleagues and I work at a large technology company. We have an idea that we would like to pursue for a startup. We both have H-1B visas. Our I-140 EB-2 green card petition has been approved, but we are waiting for our green card priority date to become current. How do I transfer my H-1B to a new startup? Can I transfer our green card to a new startup as well?
Our resident pitch expert, Haje-Jan Kamps, trained an AI model on thousands of pitch decks. This tool analyzes your pitch deck and provides feedback. Of all the decks the tool analyzed, only 6% contained all the information the AI robot was looking for. Haje offers some tips on how to fix common mistakes when putting together slides.
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Champ Suthipongchai, co-founder and general partner at Creative Ventures, writes that more conventional investors are starting to call themselves deep tech investors. Before choosing a deep tech fund manager, it’s a good idea to answer a few questions, such as: Does their investment approach make sense?
CRM isn’t just for sales teams. Founders can use these tools to streamline their relationships with investors. A good CRM will help you track interactions, remind you to follow up, and generate detailed reports.
hurdle Series A funding has increased significantly compared to a year ago, and investors in seed-stage companies are having to react.
If they want their startup to survive, they don’t have many options. When the market suddenly changed in the spring of 2022, late-stage companies were the first to feel the pain. But that downward financial pressure has also recently affected newer companies, resulting in lower valuations in subsequent rounds, up from 1.6x in the second quarter to 2013, according to Pitchbook data. This is the lowest value since the third quarter, making selection difficult. Series A investors with plenty of options.
There are countless ways VCs can get creative on this front. European venture firm Breega touts a “scaling team” to back many of its seed investments. Pear VC, a Bay Area-based seed-stage venture firm, continues to roll out new programs to support and educate the early teams it supports.
Even larger, more agnostic companies are doing more to show they’re responsive to today’s market. For example, in October, investment firm Greylock launched Edge, a three-month company-building program “aimed at taking selected pre-idea, pre-seed, and seed founders from launch to product-market fit.” It started.
VC powerhouse Lightspeed Venture Partners is also stepping up its efforts. The company has long written early (and in some cases first) checks to startups, including the messaging app Snapchat. application performance management company AppDynamics (acquired by Cisco just before his IPO); and publicly traded cloud computing company Nutanix (current market cap: $11.2 billion).
The company says it has long focused on polishing these rough diamonds. Still, given the rising standards for Series A investors overall, Lightspeed told TechCrunch that some of the mentorship the company has provided to portfolio companies for years will be extended to company-building for founders. He said that he decided to make it official through the program. launch.
The idea, led by partner Luke Betheda, is not to attract more founders to Lightspeed, but to pave the way for already-funded startups to advance to Series A rounds. It is said that Betheda explains that almost everyone faces the same questions and obstacles. “They need to know: How do I get a business up and running? How do I hire and build a core team? Build product strategy through customer interviews and build partnerships. How can we design and drive revenue?”
Going forward, Lightspeed hopes to answer these questions more systematically through expert-led workshops, seed “playbooks,” and other toolkits Lightspeed offers through new programs.
Certainly, any help, no matter how small, is greatly appreciated at this time.
While many startups simply disband, at least 3,200 According to data compiled by Pitchbook for the New York Times, venture-backed U.S. companies are expected to go out of business in 2023, but companies that focus on year-over-year growth and annual recurring revenue are realistic. Some companies think they won’t go out of business any time soon.
At this time, it also includes a Series A stage.
“In 2020, 2021 and towards the end of 2022, we went through a period of tremendous market excitement, where there was a sense that gravity was non-existent,” Benchmark VC Sarah Tavel said at TC told. At an event earlier this month, she spoke about the changing landscape of Series A funding.
“Now we’re back to the point where everyone realizes that the job of building a company is really hard. You have to have great direction for your customers. You have to have incredible direction to the fundamentals of the business you are in.”
Mr Tavel said: “It’s not just the cosmetic metrics, the top-line numbers, that get a lot of people confused. [succeed] It is what generates profits and cash flow. ”
Venture capital giant Andreessen Horowitz has announced its intention to begin lobbying the U.S. government, but their plan is as tone-deaf and insensitive as this summer’s dreaded “Techno-Optimist Manifesto.” Essentially, they would give anyone — literally anyone — Someone who “supports an optimistic technology-enabled future.”
These are called single-issue voters, and co-founder Ben Horowitz (who wrote the blog post) believes that publicizing themselves that way lends a childlike innocence to lobbying. It seems like it is, but it is quite the opposite.
The fact is that they are rich ideologues who have expressed a willingness to pay politicians who promote their agenda, regardless of what that politician’s other opinions may be. It’s really easy!
Fundamental to their approach is that technology is more important than people. They claim to be pro-human in the sense that they are pro-technology, e.g., writing, “Artificial intelligence has the potential to lift all humanity to an unprecedented quality of life.” right.
Therefore, being more AI-oriented means being more human-oriented.And actually, if you think about it, if you have AI. did it It justifies taking actions that lead to a 100-fold improvement in the human condition in the long term but have worse outcomes in the short term. For example, supporting politicians who oppose basic civil rights simply because they propose more liberal technology regulations.
For example, if a politician proposing a national abortion ban or a widespread ban on “Wake Agenda” books said he trusts AI companies to do what’s best for everyone, Andreessen and Would Horowitz support it? Now, according to A16Z’s statement of purpose here, abortion is not their business. They are “nonpartisan, one-issue voters.”
But that’s just bullshit, right?
To begin with, the idea that this one issue is bipartisan is at risk. Supporters of forced birth will likely describe themselves as independent, one-issue voters. After all, it’s not about politics, it’s about the right to life. It is irrelevant that a single political party has cynically linked this and other “traditional values” to all other policy proposals for decades.
No, no, you can’t just do that declare Nonpartisanship in blog posts. Technology regulation, like everything else, is a partisan issue. Net neutrality, Section 230, TikTok, social media disinformation, A16Z’s pet tech Debate about AI, cryptocurrencies, and biotech are all partisan. That’s just the nature of politics today.flat do not have Participating in lobbying is, in a sense, a partisan decision because it shows that you are not taking sides.
But that partisan language is just the usual pretense for this kind of announcement. Everyone claims it because it is a meaningless property and cannot be proven or disproved. The problem with A16Z’s philosophy here is that it is a wolf in sheep’s clothing: an overtly deregulatory and pro-capitalist agenda masked superficially in the language of empowerment.
You have to imagine some tobacco industry executive wrote a similar blog post in the 60’s. We are nonpartisan, single issue voters on a faulty regulatory system that unfairly prevents Americans from enjoying the great taste and health benefits of our natural tobacco products.
The same goes for plastics, food additives, leaded gas, and everything else. All they were interested in, and all Andreessen Horowitz was interested in, was removing onerous obstacles to increasing wealth from the boardroom.
If they actually cared at all about people and how politics and lobbying affect them, then perhaps “the people” would theoretically mean “exalted” in some imagined future. It would have been referred to as more than an abstract concept that could be ” or hurt.
It’s unrealistic to think that by donating to politicians who support a vision of deregulation, A16Z won’t also support other policies that people are actually voting for right now. voting rights, reproductive care, education, etc. This obvious conflict of interest is conveniently avoided. Are any positions or proposals so despicable that they will withdraw their support, or will they stand by their principles, if it can be described as such?
They cannot expect us to believe that their understanding of lobbying and politics is this simple. There are smart people in that company. We have to take at face value their statements that they really don’t care about anything other than growing the areas they’re investing in. But what they are proclaiming is not an idealistic pro-humanity position as they suggest, but cynical selfishness. Basically an anti-people attitude.
But A16Z doesn’t care. people — I’m curious about that. Human race.
And as we enter this golden age of technology and enter a dark age of social policy, humanity will no doubt be grateful, right? Women like Kate Cox may not have physical independencebut at least they will have blockchain.
tunnelSouth African parcel delivery platform has secured $1 million in pre-seed funding from investors including Founders Factory Africa, Digital Africa Ventures, E4E Africa and Jozi Angels.
The platform claims that e-commerce merchants can save between 50% and 80% on international shipping costs, and the funding will fuel expansion in its key market South Africa, as well as launches in other key African countries. He said that he would lay the foundation for the Emerging markets.
CEO Matthew Davey cum COO craig lowman Mr Davey founded the company in 2022 after seeking a solution to the challenges he faced as managing director of a Dutch company importing South African engineering materials into Europe. In his interview with TechCrunch, Davey said the process of moving these materials is cumbersome and expensive, and his experience shows that transportation costs are widespread, especially for small and medium-sized businesses in emerging markets like South Africa. I’ve come to recognize the problem.
Current challenges in cross-border transportation are costing African businesses an estimated $50 billion a year in missed opportunities. The founders of TUNL identified a recurring problem among small and medium-sized traders in South Africa during the pandemic. That meant that shipping costs could exceed the value of the item. This also applies to high-quality goods such as textiles, clothing, footwear, camera accessories, and specialty components, despite the presence of major courier services such as DHL, UPS, and FedEx.
Typically, Cape Town sellers offer only one shipping option, such as DHL, to customers looking to purchase goods abroad. For example, a backpack might cost $60, and shipping from South Africa to the US could be about the same, $50-60, which could negatively impact your conversion rate. What TUNL has done is partner with delivery services like UPS and FedEx to ensure reasonable rates and subsidize shipping costs for small and medium-sized businesses by 50% to 75%.
“Our pricing is fully transparent and democratized. We want every business, large or small, to be able to transform their international sales by reducing shipping costs as much as possible. We want to make sure they have an equal opportunity to do the same,” Lowman said in a statement.
On the TUNL platform, sellers offer a variety of shipping options to their customers at checkout. This includes an “economy” option that incorporates shipping costs into the product price, allowing free shipping via TUNL’s courier service and slightly longer delivery times (approximately 10-14 days). Reduce cart abandonment at checkout. Alternatively, customers can choose expedited shipping options (within a week) via FedEx or UPS for a more reasonable price, such as $10 for the same backpack, allowing for more flexibility and potentially higher exchange rates. (The exact price may vary depending on destination and weight, but Davey says this is a consistent approximate number).
“It’s all about helping sellers succeed,” said the CEO. “Because if there’s only one expensive shipping option at checkout and the customer has two choices, they’re not going to buy it. “They can decide to abandon their cart or pay up.” “But when you introduce two shipping options, especially a free shipping option, human psychology forces the customer to choose one of the two, rather than abandoning the cart. .”
Primarily, South African e-commerce merchants using TUNL tend to ship most of their goods to the US, UK, Europe and Australia. Two-thirds of the shipments end up in the United States, Davey said. TUNL, which competes with Ivorian startups and platforms such as DHL partner ANKA, has grown 35% month-on-month since its launch and now has more than 700 merchants in its “delivery club.” TUNL’s merchants shipped more than 8,000 international parcels in 2023, representing R19.5 million worth of exports from South Africa, the company said in a statement.
The two-year-old e-commerce platform makes money by taking a margin from orders placed on its platform. The products we handle are wide-ranging, including backpacks, fashion shoes, arts and crafts, books, nanofiber materials, high-performance springs, various furniture, musical instruments, cosmetics, and other preserved foods. South Africa is known for its wine industry, with exports reaching 368.5 million liters last year. And although the transport of wine (alcohol) is not yet included in TUNL’s export items due to existing restrictions, Davey said the startup is now one of South Africa’s largest wine subscription businesses and its business He said he is in discussions about the possibility of participating. .
“We are getting a message from our merchants that we have transformed their business. They are adding new employees and growing because of us. So if our merchants are only serving the South African market, “It’s a win-win for the ecosystem to make people feel like they can look at the world as a market, rather than the only market they can serve,” he said. “We help merchants grow internationally just as we help them succeed, because the overseas consumer market is much larger than the domestic market for these types of products. ”
Davey said TUNL, which makes about $60,000 a month, will now focus on using the seed funding to improve sales and the onboarding process for new franchisees. In particular, the onboarding experience has been streamlined, relying primarily on customer support assistance and taking a more self-service approach.
Aye Finance, an Indian startup that provides a digital lending platform for small businesses, continues to help small businesses grow their businesses and increase incomes for their employees, with $37.18 million in new funding round led by British International Investment was procured.
The Series F round brings Aye’s total funding to nearly $200 million and includes participation from Waterfield Fund of Funds and the startup’s existing investor A91 Partners. In 2020, the startup raised $27.5 million in a Series E funding round led by Alphabet’s CapitalG.
Founded in 2014, I agree — which means “Yes” in English and “Income” in Hindi — is a term used by underserved businesses that find it difficult to secure the necessary working capital from traditional lenders such as banks. We provide business loans in the form of mortgages, temporary security, and term credit to small and medium-sized enterprises. The startup uses a combination of in-house technology and analytics to offer a variety of financial solutions based on a company’s needs.
To date, the 10-year-old company claims to have provided more than $959 million in loans to more than 700,000 unorganized businesses. The company competes with companies such as Capital Float, Lendingkart and Indifi, which are working on providing credit to small and medium-sized enterprises in South Asia.
One of the main reasons why startups like Aye Finance are gaining enough traction in India is the lack of credit for small and medium enterprises.
India has over 63 million MSMEs. To contribute According to government data, it accounts for nearly 30% of gross domestic product, more than 43% of all exports, and employs more than 123 million people. The government considers the importance of these companies to the country’s overall growth and has introduced a number of initiatives to ease credit requirements. However, some small and medium-sized enterprises (SMEs) are struggling to find funding to start and sustain their operations because the eligibility requirements for government systems and programs do not match their business model or size, or involve lengthy processes. I still find it difficult to procure. Startups like Aye are capitalizing on that gap by offering credit through their platforms.
“We believe there is tremendous potential in lending to underserved and small businesses, and the new capital is a strong complement to our complex story.” said Sanjay Sharma, co-founder, MD and CEO of Aye Finance, in a prepared statement.
“Aye Finance is on a growth path and we are pleased to partner with BII, which has a deep understanding of India’s financial services sector. It’s proof.”
Headquartered in Gurugram and present in 22 states through 395 offices, the start-up manages assets of over $959 million and generated over $9.59 million after tax in the first six months of FY24. He says it has brought benefits.
“Our investment in Aye Finance confirms our commitment to backing companies with strong philosophies that impact development and fostering financial inclusion for underserved groups in India. The i team stands out for its dedication and experience in delivering scalable technology-enabled financial solutions,” said Gaurav Malhotra, Director, UK International Investment Financial Services.
true anomaly has closed $100 million in new funding, a strong signal that the appetite for startups operating at the intersection of space and defense is not slowing down.
The new round was led by Riot Ventures with participation from Eclipse, ACME Capital, Menlo Ventures, Narya, 645 Ventures, Rocketship.vc, Champion Hill Ventures, and FiveNine Ventures. The funds will be used to continue expanding all parts of the business, according to a press release.
True Anomaly aims to fill critical gaps in space situational awareness and defensive operations through software and hardware, including a line of autonomous reconnaissance and tracking spacecraft called Jackals. These vehicles are equipped with an array of sensors and cameras to track, monitor, and collect data on objects in space. On the software side, the company is developing an integrated operating platform called Mosaic that will eventually be able to work in conjunction with the Jackal in orbit.
In a previous interview with TechCrunch, True Anomaly CEO Even Rogers pointed to a significant “information asymmetry” between the United States and its adversaries in space. Jackal, Mosaic, and the company’s other efforts in space domain awareness aim to fill that gap.
Founded in 2022 by a quartet of former Space Force members, the startup is rapidly moving towards this goal. During the company’s first full year of business, he opened his 35,000 square foot facility in Centennial, Colorado and doubled his headcount to more than 100 people.
In September, True Anomaly won a $17.4 million contract from the U.S. Space Force to help warfighters find and track objects in space, characterize those objects, and use artificial intelligence to predict changes in space. The agreement was signed to build a suite of space domain awareness capabilities, including prediction and identification. Object behavior.
The first two Jackal spacecraft are scheduled to launch on SpaceX’s Transporter 10 rideshare mission in March. In August, the company received permission from regulators to conduct imaging beyond Earth and demonstrate close space rendezvous operations with two spacecraft. This is such a huge technical challenge that I have no doubt that many people in both Silicon Valley and Washington will be paying close attention to how the demo mission unfolds.
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