From major funding rounds and M&A deals to small business resilience and tech breakthroughs, here are the top insights and trends from May 19–25, 2025.
1. US Stock Markets Dip Amid Fiscal Jitters and Tariffs
Major US stock indices fell by about 2.5% last week, driven by escalating trade tensions and a historic credit downgrade. Moody’s stripped the US of its last AAA rating, citing ballooning national debt and rising interest payments. President Trump’s surprise tariffs on EU imports and tech giants like Apple and Samsung rattled markets, highlighting investor unease over fiscal policy and global trade uncertainty.
2. US Business Activity Rebounds, But Inflation Looms
S&P Global’s May data showed a modest rebound in US business activity, with the Composite PMI rising to 52.1 from April’s 50.6. Manufacturing saw its strongest growth since June 2022, but the expansion was inventory-driven, fueled by fears of tariff-induced price hikes and supply disruptions. Service sector exports, including tourism, suffered their steepest drop since early pandemic lockdowns, underscoring the impact of new tariffs and immigration policies.
3. Canadian Retail Sees Major Shifts: Canadian Tire Acquires Hudson’s Bay
Canadian Tire’s acquisition of Hudson’s Bay marks the end of an era for one of Canada’s most iconic department stores. Analysts say the deal could reshape the country’s retail landscape, but caution that integrating the two brands will require careful strategy. Meanwhile, local retailers face new import duty systems and rising tariffs, complicating supply chains and pricing.
4. Keep Raises $12M to Empower Canadian SMBs
Toronto-based fintech startup Keep secured $12 million in Series A1 funding, part of a $23 million total raise. The platform, founded by Oliver Takach and Helson Taveras, offers Canadian small businesses multi-currency accounts, corporate cards, and automated expense management. Keep’s revenue has grown 20× since 2023, reflecting strong demand for modern financial tools among SMBs.
5. US Startup Funding Surges to $7.78 Billion
The US saw 34 major funding rounds last week, raising a total of $5.6 billion. Notable deals included Anthropic’s $2.5 billion round and Perplexity AI’s $500 million raise at a $14 billion valuation. In total, North American startups raised $7.78 billion, a 48% increase from the previous week, showcasing robust investor appetite for tech and innovation.
6. AMD Sells ZT Systems Business to Sanmina for $3 Billion
In a major M&A move, AMD agreed to sell its ZT Systems server-manufacturing business to Sanmina for $3 billion. The deal is part of AMD’s strategy to streamline operations and focus on high-growth, high-margin segments, while Sanmina expands its footprint in the data center hardware market.
7. AI and Infrastructure Startups Attract Big Checks
AI and infrastructure remain hot sectors, with Catena Labs raising $18 million to build financial rails for AI agents, and Meibel securing $7 million for enterprise AI deployment. Gravitee, an API management platform, landed $60 million, while Blues raised $25 million to simplify IoT connectivity, reflecting strong investor confidence in next-gen tech infrastructure.
8. Small Business Spotlight: Local Retailers Adapt to Tariffs and Crime
Canadian small businesses, from vintage shops to local grocers, are adapting to rising tariffs and a surge in retail crime. Family-run stores report increased thefts, while others celebrate milestones—like Siegel’s in Vancouver, marking 35 years of Montreal-style bagels. Local initiatives, such as Edmonton’s downtown farmers market, encourage consumers to “shop local” amid economic headwinds.
9. Perplexity AI Hits $14 Billion Valuation with $500M Raise
Perplexity AI, a leading AI research and search startup, raised $500 million in its latest funding round, boosting its valuation to $14 billion. The company’s rapid growth underscores the continued dominance of AI-driven platforms in the US tech ecosystem.
10. StartEngine’s Record Growth: Crowdfunding Expands Access to Private Markets
StartEngine, a US-based crowdfunding platform, reported record Q4 revenues, doubling year-over-year from $23 million to $48 million. With over 50,000 investors participating and $84+ million raised, the platform is democratizing access to private tech investments, including high-profile names like OpenAI and Databricks.
11. Canadian Postal Workers Set for Strike
Canada Post received a strike notice, with workers planning to walk out over contract disputes. The potential strike could disrupt mail and parcel deliveries nationwide, impacting e-commerce businesses and consumers alike.
12. US Manufacturing Grows, But Delivery Delays Worsen
US manufacturing posted its strongest PMI since June 2022, rising to 52.3. However, delivery times for manufacturers reached their longest stretch in 31 months, reflecting ongoing supply chain challenges and tariff-related disruptions. Inventory accumulation surged as firms braced for further price hikes.
13. Blues Raises $25M to Simplify IoT for All Industries
Blues, a US startup backed by Sequoia, secured $25 million to streamline IoT connectivity. Their platform enables businesses across sectors to connect devices easily and securely, addressing a key bottleneck for digital transformation in manufacturing, logistics, and healthcare.
14. Affiniti Raises $17M to Modernize SMB Fintech
Affiniti, a fintech startup led by Gen Z founders, raised $17 million to bring advanced financial tools to traditional small businesses. The company aims to bridge the digital divide for SMBs, offering modern solutions for payments, payroll, and expense management.
15. SparkCharge Expands Mobile EV Charging with $30M Boost
SparkCharge, a US-based startup, raised $30 million to grow its mobile electric vehicle charging service. The funding will help expand operations and partnerships with automakers and fleet operators, supporting the transition to electric mobility.
16. Canadian Beauty Industry Faces Tariff Headwinds
Canada’s “Buy Canadian” movement has boosted the local beauty industry, but new tariffs threaten to reverse these gains. Importers warn that the new duty payment system could cause delays and higher costs, impacting both businesses and consumers.
17. Crypto Markets Mixed as US Senate Advances Stablecoin Bill
Bitcoin rose 3.7% last week, buoyed by progress on a bipartisan stablecoin regulatory bill in the US Senate. Spot Bitcoin ETFs saw strong inflows, totaling $2.8 billion—the third-largest weekly inflow on record. The crypto sector remains volatile but shows signs of institutional adoption.
18. Super C Opens 114th Store, Shoppers Drug Mart Expands Food Offerings
Canadian grocery chains continue to grow, with Super C opening its 114th store in Quebec and Shoppers Drug Mart launching new Winnipeg locations featuring expanded food options. These moves reflect ongoing innovation and competition in the Canadian retail sector.
19. Venture Capital Snapshot: 1,245 Billion-Dollar Startups Worldwide
There are now 1,245 “unicorn” startups valued at $1 billion or more globally, with the US leading the pack. The high-stakes world of venture capital continues to fuel innovation, though most startups still face steep odds of success.
20. Edmonton’s Farmers Market Champions Local Shopping
Edmonton’s downtown farmers market is encouraging residents to support local businesses, providing a vital platform for small producers and artisans. As economic uncertainty persists, such grassroots initiatives are crucial for community resilience and local economic development.
This roundup captures the pulse of North American business and technology, highlighting both headline-making deals and the everyday resilience of small businesses. From record venture capital flows to the challenges of tariffs and labor disputes, these stories illustrate the dynamic, sometimes turbulent, but always innovative spirit driving the US and Canadian economies forward.
For more insights and updates on global business trends, visit www.nextbusiness24.com
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