Welcome to our weekly edition of Seed Watch- a segment of Market Insyte Digest focused on sharing some of the latest and most intriguing Pre-seed & Seed funding news grabbing the headlines in the startup world. Find out the top 3 deals from this week that caught our eye.

  • Startup Name: AMI Labs

  • Industry: Artificial Intelligence

  • Region: France

  • Amount (USD): $1.03 billion

  • The problem it is solving: Current AI systems, particularly large language models, primarily learn from text and can produce unreliable or hallucinated outputs, which limits their usefulness in high-stakes fields like healthcare. AMI Labs is developing “world models,” a new AI approach designed to learn directly from real-world data and environments rather than just language. The goal is to create AI systems that can better understand how the physical world works, leading to more reliable and accurate AI applications.

  • What the Funds Will Be Spent On: Recruiting top AI researchers and engineers across multiple global hubs. Funding large-scale compute infrastructure required for AI research. Advancing fundamental research into world models and predictive AI architectures. Supporting early collaborations with industry partners and testing models in real-world environments

  • Startup Name: ZyG

  • Industry: Retail

  • Region: Israel

  • Amount (USD): $58 million

  • The problem it is solving: Many direct-to-consumer (DTC) entrepreneurs struggle to scale their products into sustainable brands due to fragmented tools, complex marketing analytics, and limited operational infrastructure. ZyG aims to solve this by building an AI-powered operating system that integrates data infrastructure, predictive analytics, AI agents, and financing capabilities. This platform helps entrepreneurs manage key functions such as marketing, customer acquisition, retention, analytics, and logistics in one unified system.

  • What the Funds Will Be Spent On: Developing and enhancing its AI-powered e-commerce platform. Expanding predictive product analytics capabilities. Building operational infrastructure to support DTC brand growth. Providing financing and tools to help entrepreneurs launch and scale e-commerce brands

  • Startup Name: Cylake

  • Industry: Cybersecurity

  • Region: United States

  • Amount (USD): $45 million

  • The problem it is solving: Many organisations in highly regulated sectors such as government, finance, healthcare, and critical infrastructure cannot rely on cloud-based cybersecurity tools because regulations require them to keep sensitive operational data within their own environments. Most modern cybersecurity platforms depend on sending data to the public cloud for analysis, which can create compliance and security risks. Cylake is addressing this challenge by building an AI-powered cybersecurity platform that performs advanced threat detection and analytics directly within an organisation’s own infrastructure, allowing companies to maintain full control over their data while still benefiting from modern security capabilities.

  • What the Funds Will Be Spent On: Developing its AI-powered cybersecurity platform. Expanding machine learning models for threat detection and analysis. Scaling the engineering and product development teams. Accelerating the platform’s deployment to organisations in highly regulated industries

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