Will legislation on competing with China spur the next big thing akin to the internet?

Earlier this week, the U.S. Senate passed bipartisan legislation aimed at boosting the country’s competitiveness with China in the realms of science and technology.

Dubbed the U.S. Innovation and Competition Act, or the Endless Frontier Act, the bill would commit almost $250 billion to the effort, setting aside $52 billion alone for semiconductor onshoring and research. The bill will now head to the House.

While much of the coverage of the legislation has focused on countering China’s progress in technology and how it could benefit larger semiconductor companies, the National Venture Capital Association, the industry’s trade organization, is seeing it as a potential booster shot for the space akin to arms races in decades past.

Except instead of creating, say, the space travel industry, the hope is that it’ll bolster the next wave of technologies aimed at healthcare or combatting climate change. The bill in particular is looking to fund emerging sectors including quantum computing, artificial intelligence, robotics, and more.

“We’re excited because it can get [the technologies] out of the labs and make it viable. That’s where the industry can privately finance,” Michael Brown, general partner at Battery Ventures and the newly appointed chair of the NVCA’s board of directors, told Term Sheet. “It’ll diversify funding across the country and result in increased startup investments in frontier areas of research whether in healthcare or IT.”

The creation of the Defense Advanced Research Projects Agency in the 1950s amid the Cold War with the Soviet Union, for example, led to the invention of the internet. Beyond quantum computing and artificial intelligence, Brown also pointed to industries such as synthetic biology and climate change where new technologies could spring forth. If synthetic biology sounds a little like a sci-fi term, that’s because it kind of is—it’s effectively the human engineering of biological products such as fuel or protein. Companies in the space include Gingko Bioworks and Zymergen.

“For example, synthetic drug therapies are not something that Moderna would consider because it is so far out in the future,” Brown said.

It’s exciting to think of the possibilities, and to dream of the next technology with the potential to rival the internet’s impact on human society (As I was speaking with Brown, my mind happily went to the sleek contraption in the fun but admittedly mediocre movie, Elysium, that detected and killed cancer in seconds and in the comfort of people’s own homes). But the question will be in the execution of the bill. Critics say it has been watered down and too prescriptive in the areas it seeks to fund, which are certainly fair evaluations. 

But as Cold War history has shown, there is nothing like competition (and apparently, the fear of existential irrelevance) to spur innovation.

RECRUITING COMPANIES GET FUNDING: Eightfold AI, a California-based maker of technology for recruiting and retaining workers, raised $220 million in Series E funding, valuing it at $2.1 billion. SoftBank Vision Fund 2 led the round, and was joined by investors including General Catalyst, Capital One Ventures, Foundation Capital, IVP and Lightspeed Venture Partners. The raise comes at a time when U.S. job openings have soared to record highs as the country shakes off the pandemic. As with many recent recruiting platforms that have raised funding, Eightfold emphasizes that it is designed to reduce unconscious bias in the process and diversify the workforce.

Lucinda Shen
Twitter: @shenlucinda
Email: lucinda.shen@fortune.com

VENTURE DEALS

- Northvolt AB, a Swedis battery company, raised $2.8 billion. Goldman Sachs and Volkswagen led the round and was joined by investors including AP1-4, OMERS, AMF, ATP, Baillie Gifford, Baron Capital Group, Bridford Investments Limited, Compagnia di San Paolo through Fondaco Growth, Cristina Stenbeck, Daniel Ek, IMAS Foundation, EIT InnoEnergy, Norrsken VC, PCS Holding, Scania and Stena Metall Finans.

- Faire, a San Francisco-based online wholesale marketplace, raised $260 million in Series F funding. Sequoia Capital led the round valuing it at $7 billion.

- Amplitude, a San Francisco-based data analytics startup, raised $150 million valuing it at $4 billion. Sequoia Capital led the round and was joined by investors including GIC, Battery Ventures, and IVP.

- Aura, a Burlington, Mass.-based cybersecurity company, raised $150 million in Series E funding. Warburg Pincus led the round.

- Embroker, a San Francisco-based insurance platform, raised $100 million in Series C funding. FTV Capital led the round and was joined by investors including HSCM Bermuda, Gaingels, Tola Capital, Canaan Partners, Bee Partners, and MassMutual Ventures. 

- Mythical Games, a Los Angeles-based gaming tech studio making playable NFTs, raised $75 million in Series B funding. WestCap led the round and was joined by investors including 01 Advisors and Gary Vaynerchuk’s VaynerFund, Galaxy Digital, Javelin Venture Partners, Alumni Ventures, and Struck Capital. 

- Kepler Communications, a Toronto-based company building an orbit satellite communications network, raised $60 million in Series B funding. Tribe Capital led the round and was joined by Canaan Partners, IA Ventures, and Costanoa Ventures. 

- Branch Insurance, a Columbus, Oh.-based home and auto insurance bundling startup, raised $50 million in Series B funding. Anthemis Group led the round and was joined by investors including Acrew, Cherry Creek Holdings, Greycroft, HSCM Bermuda, American Family Ventures, SignalFire, SCOR P&C Ventures, Foundation Capital, and Tower IV. 

- Ringle, a South Korea-based business English and interview prep course maker, raised  $18 million in Series A funding. Must Asset Management led the round, valuing it at $90 million.

- Refyne, an Indian startup creating a way to access wages instantly, raised $16 million in Series A from partners of DST Global and RTP Global. 

- Circulor, a London-based supply chain traceability and CO2 tracking company, raised $14 million in Series A funding. The Westly Group led the round and was joined by investors including Salesforce Ventures, BHP Ventures, Future Positive Capital, 24Haymarket, and Sky Ocean Ventures. 

- Loupe, an e-commerce streaming platform for sports card collectors, raised $12 million in Series A funding. Forerunner Ventures led the round and was joined by investors including Professional Sports Authentication.

- Monogoto, a Tel Aviv-based maker of a cellular network, raised $11 million in funding. Team8 led the round and was joined by investors including Telefonica Tech Ventures and Singtel Innov8, Alter Venture Partners, Triventures, and Planven Entrepreneur Ventures.

- Electric Gamebox, a Dallas-based maker of a group gaming platform, raised $11 million in Series A2 fundin. Philian led the round and was joined by investors including Brookfield Asset Management, Index Ventures, and ActivumSG.

- Aserto, a Seattle-based authorization software maker, raised $5.1 million in seed funding. Costanoa Ventures led the round and was joined by investors including Heavybit Industries, Bob Muglia (former CEO of Snowflake), Mathias Biilmann Christensen (co-founder/CEO of Netlify); and Tom Preston-Werner (co-founder of GitHub).

- ShelfLife, a Toronto-based maker of a marketplace for raw material suppliers, raised $3 million in seed funding. Switch Ventures and Kindred Ventures led the round and was joined by investors including NextView Ventures, Ben Zises (SuperAngel.vc), Ilia Papas (former CTO of Blue Apron) and Elena Donio (former president of SAP Concur).

- Terra, a maker of an API for fitness and health data, raised $2.8 million. Investors included General Catalyst, Samsung Next, and NEXT VENTURES.

- Brinter, a Finland-based bioprinting startup, raised €1.2 million ($1.5 million) in seed funding. Innovestor led the round.

- Poppy Seed Health, a New York-based telehealth app mental health for pregnant and postpartum people, raised $1.6 million in a pre-seed funding. Seven Seven Six led the round and was joined by investors including Metrodora, Christina Sass, Julia Cheek, Hannah Bronfman, Roxane Gay, Toyin Ajayi, and Halle Tecco.

- Nuvolo, a New Jersey-based maker of workplace software company, raised roughly $1 million in additional Series C funding. Mayo Clinic led the round.

PRIVATE EQUITY

- KKR formed Geode Health, a Chicago-based mental health services company. Financial terms weren't disclosed.

- Gemspring Capital Management invested in Transport Investments, a provider of heavy haul, flatbed, and specialized transportation and logistics services. Financial terms weren't disclosed.

- H.I.G. Capital invested in Cleo, a Rockford, Ill.-based supply chain software maker. Financial terms weren't disclosed.

- HRB Brands, backed by Tengram Capital Partners, acquired personal care brands including Brut, Pert, Sure, Ammens, Seabreeze, and Infusium from Helen of Troy (Nasdaq: HELE). Financial terms weren't disclosed.

- Intermediate Capital Group invested in Gil-Bar Industries, a New York City-based provider of heating, ventilation, and air condition services. Financial terms weren't disclosed.

- Kamps, backed by Freeman Spogli, agreed to acquire Buckeye Diamond Logistics, a South Charleston, Oh.-based pallet supplier. Financial terms weren't disclosed.

- KPS Capital Partners agreed to acquire Siderforgerossi, an Italy-based maker of diameter forged products. Financial terms weren't disclosed.

- New Harbor Capital made a majority investment in FoodPharma, a Santa Fe Springs, Calif.-based maker of nutritional foods. Financial terms weren't disclosed.

- Northlane Capital Partners invested in The Difference Card, a White Plains, N.Y.-based healthcare benefits and costs company. Financial terms weren't disclosed.

- One Rock Capital Partners agreed to acquire the tire additives business of Eastman Chemical Company (NYSE: EMN). Financial terms weren't disclosed.

- Ronin Equity Partners acquired Red Apple Cheese, Barron County Cheese, and Cheese Brothers, three specialty cheese companies. Financial terms weren't disclosed.

- SSB, backed by Strattam Capital, acquired Affinaquest, a Dallas-based maker of software for colleges, healthcare, and nonprofits. Financial terms weren't disclosed.

- Wrench Group, backed by Leonard Green & Partners, acquired Williams Comfort Air, an Indianapolis-based home services and repair company. Financial terms weren't disclosed.

EXITS

- Iodine Software, backed by Silversmith Capital Partners, acquired ChartWise Medical Systems, a competitor. Recurring Capital Partners and FCA Venture Partners backed ChartWise.

- iContact acquired Moz, a Seattle-based analytics software company. Financial terms weren't disclosed. Moz had been backed by investors including Foundry Group, Curious Office, and Ignition Partners. Financial terms weren't disclosed.

- OverDrive acquired Kanopy, a San Francisco-based video streaming service for public and academic libraries, from L Squared Capital Partners. Financial terms weren't disclosed.

OTHERS

- Altice Europe is seeking bidders for its Portugal business, per Reuters. The telecom company hopes to sell the unit for $7.3 billion.

- Honeywell International (Nasdaq: HON) will spin off its quantum computing business and merge it with Cambridge Quantum Computing, a London-based firm in the space. Honeywell will own 54% of the business and will invest up to $300 million in the company.

- Amazon and Gopuff sought to acquire Flink, a German delivery startup, per Bloomberg. Flink rebuffed the attempts.

IPOS

- Marqeta, an Oakland, Calif.-based card and payment processing company, raised $1.2 billion. It sold 45.5 million shares priced at $27 apiece, well above its previously stated range.

- Webull, the Chinese online brokerage, is weighing a U.S. IPO that could raise between $300 million to $400 million, per Bloomberg.

- Lyell Immunopharma, South San Francisco, Calif.-based biotech, now plans to raise $425 million in an offering of 25 million shares priced between $16 to $18. 

SPACS

- Valo Health, a Boston-based drug discovery company, will go public via merger with Khosla Ventures Acquisition. A deal values the company at $2.8 billion.

- Wallbox, a Spanish electric car charging company, plans to go public via merger with Kensington Capital Acquisition, a SPAC. A deal values the company at about $1.5 billion including debt.

- The four biotech-focused SPACs backed by Chamath Palihapitiya plan to offer a slice of their IPOs to retail traders on SoFi Technologies. 

F+FS

- BC Partners, a London-based investment firm, raised over €1 billion for its Single Asset Acquisition Fund.

- Balderton Capital, a London-based technology venture firm, launched a $680 million “early growth fund.” 

- Alterna Equity Partners, a South Florida-based private equity firm, is looking to raise $100 million for its debut fund.