META DESCRIPTION: Tech funding heats up mid-May 2025 with Rippling securing $450M at $16.8B valuation, Entrata raising $200M, and several other significant investments across HR tech, energy, and healthcare sectors.

Cash Flow: Tech's Funding Frenzy Heats Up Mid-May 2025

The innovation economy shows no signs of cooling as AI, HR tech, and nuclear startups secure major investments in a week of blockbuster deals

The second week of May has delivered a flurry of significant funding announcements across the tech landscape, with several companies securing nine-figure investments that signal continued investor confidence despite ongoing economic uncertainties. From HR platforms achieving unicorn status to nuclear battery startups powering the future of space exploration, the capital markets are showing remarkable enthusiasm for transformative technologies. Let's dive into the most significant deals that closed between May 9-16, 2025, and what they tell us about where the smart money is flowing.

Rippling's Remarkable Rise: $450M Series G Propels HR Tech Giant to $16.8B Valuation

In what might be the most impressive funding announcement of the week, HR technology platform Rippling has secured a massive $450 million Series G round, catapulting its valuation to $16.8 billion[2]. This represents a significant jump from its previous $13.4 billion valuation just a year ago, demonstrating extraordinary investor confidence in the company's integrated approach to workforce management.

The round attracted an impressive roster of both new and existing investors. New backers include Sands Capital, GIC, Goldman Sachs Growth, and Baillie Gifford, while existing investors Elad Gil and Y Combinator doubled down on their commitments[2].

What makes this round particularly noteworthy is that Rippling is simultaneously conducting a $200 million tender offer to provide liquidity for current and former employees. This move follows a similar pattern from their April 2024 financing, when they raised a $200 million Series F and conducted a $590 million tender offer[2].

Rippling's journey represents one of Y Combinator's most successful investments to date. The company graduated from YC's winter 2017 cohort and has maintained strong ties with the accelerator, which reportedly became a Rippling client earlier this year. In a fascinating circular relationship, YC now recommends Rippling as the HR "tool of choice" for all its accelerator founders, with the company offering a special "Founder Mode" discount for YC-backed startups[2].

Entrata Secures $200M from Blackstone at $4.3B Valuation

Property management software company Entrata has landed a substantial $200 million investment from private equity giant Blackstone, achieving a remarkable $4.3 billion valuation[4]. The funding positions Entrata to significantly expand its property management software platform, which has become increasingly essential as real estate companies seek comprehensive digital solutions.

The investment highlights the continued digitization of the real estate sector and investors' willingness to back platforms that streamline operations in traditionally analog industries. Entrata's success demonstrates how SaaS solutions targeting specific vertical markets can achieve substantial valuations by solving complex industry-specific challenges.

Zeno Power Raises $50M to Develop Nuclear Batteries for Space and Defense

In a fascinating development at the intersection of energy and aerospace, Seattle-based Zeno Power has secured $50 million in Series B funding to advance its development of compact "nuclear batteries" designed for defense and space applications[4].

These specialized power sources, which the company describes as radioisotope power systems, could potentially revolutionize how we power spacecraft, satellites, and defense systems by providing long-lasting energy sources in environments where traditional batteries or solar power are impractical. The funding underscores growing investor interest in deep tech solutions that address fundamental challenges in frontier environments.

The AI Funding Landscape: Patterns and Perspectives

While this week didn't see any $100M+ AI-specific funding announcements, it's worth noting the broader context of AI investment in 2025. Earlier this year, several US-based AI startups secured massive funding rounds, including Together AI's $305 million Series B (valuing the company at $3.3 billion) and Lambda's impressive $480 million Series D (at a valuation of nearly $2.5 billion)[3].

These earlier rounds, along with Abridge's $250 million Series D that valued the AI medical transcription platform at $2.75 billion, demonstrate that investor appetite for AI infrastructure and specialized AI applications remains robust[3]. The pattern suggests we're seeing a maturation of the AI funding landscape, with investors becoming more selective and focusing on companies that have demonstrated clear product-market fit and scalable business models.

Other Notable Rounds: Healthcare, Collaboration Tools, and Wireless Power

Several other interesting funding announcements rounded out the week:

• Sprinter Health secured $55 million in a Series B round led by General Catalyst to expand its on-demand diagnostics and preventive care services that bring healthcare directly to patients' homes[4].

• Granola raised $43 million for its collaborative note-taking platform, highlighting continued interest in productivity and knowledge management tools[4].

• Wi-Charge closed a $20 million round to develop long-range wireless charging technology, potentially eliminating the need for cables and traditional charging stations[4].

• Row Zero emerged from stealth with $10 million to bring advanced data intelligence capabilities to enterprise spreadsheets, demonstrating that even established tools like spreadsheets continue to evolve with AI and data analytics capabilities[4].

Analysis: What This Week's Funding Tells Us About Tech's Direction

The diversity of this week's funding announcements reveals several important trends in the technology investment landscape. First, we're seeing continued confidence in platforms that streamline fundamental business operations, as evidenced by Rippling's massive round and Entrata's significant investment from Blackstone.

Second, there's growing interest in deep tech solutions addressing complex challenges in energy, space, and defense. Zeno Power's $50 million raise for nuclear batteries exemplifies how investors are increasingly willing to back hardware-focused startups with longer development timelines but potentially transformative impact.

Third, healthcare technology continues to attract substantial investment, with Sprinter Health's $55 million round highlighting the ongoing digitization and decentralization of healthcare delivery. The pandemic accelerated adoption of remote healthcare solutions, and investors clearly believe this shift will continue.

Finally, the steady stream of funding for collaboration and productivity tools suggests that despite years of innovation in this space, investors still see significant opportunities to improve how knowledge workers capture, share, and leverage information.

Looking Ahead: What's Next for Tech Funding?

As we move deeper into 2025, several factors will likely influence the funding landscape. The continued evolution of AI capabilities will drive investment in both infrastructure companies and specialized applications across industries. Regulatory developments, particularly around AI governance and data privacy, may create new opportunities for compliance-focused startups.

The ongoing need for climate solutions will likely accelerate investment in clean energy, sustainable materials, and carbon reduction technologies. And as geopolitical tensions persist, we may see increased funding for companies addressing supply chain resilience, cybersecurity, and critical infrastructure.

What's clear from this week's funding announcements is that despite economic headwinds, investors remain bullish on technology's ability to transform industries and create massive value. The companies securing funding today are building the infrastructure, tools, and platforms that will shape how we work, live, and interact in the years to come.

REFERENCES

[1] Tech Funding News. (n.d.). Top Funding Rounds. Retrieved from https://techfundingnews.com/category/top-funding-rounds/

[2] TechCrunch. (2025, May 9). Rippling raises $450M at a $16.8B valuation, reveals YC is a customer. Retrieved from https://techcrunch.com/2025/05/09/rippling-raises-450m-at-a-16-8b-valuation-reveals-yc-is-a-customer/

[3] TechCrunch. (2025, April 23). Here are the 19 US AI startups that have raised $100M or more in 2025. Retrieved from https://techcrunch.com/2025/04/23/here-are-the-19-us-ai-startups-that-have-raised-100m-or-more-in-2025/

[4] Tech Startups. (2025, May 16). Top tech startup funding news for today, May 15, 2025. Retrieved from https://techstartups.com/2025/05/15/top-tech-startup-funding-news-for-today-may-15-2025/

[5] Virginia Innovation Partnership Corporation. (n.d.). Virginia Venture Partners. Retrieved from https://vipc.org/funding/virginia-venture-partners/