Round13’s Digital Asset Fund led the Canadian startup’s all-equity round, with participation from chip giant Nvidia, AI cloud provider Coreweave and other investors. Wombo will use the funding to launch new products and add to its 10-person workforce, said CEO Ben-Zion Benkhin. (The Logic)

Talking point: The startup’s consumer apps generate memes and illustrations based on users’ selfies and text prompts. They’re available for free, but Wombo sells subscriptions with bonus features. “The core model is to just pump out multiple extremely viral, extremely profitable hits a year,” said Benkhin, who noted that any one app’s popularity might be short-lived. Wombo’s biggest cost is compute, the processing power required to run the in-house and third-party models that generate content for users. But Benkhin said the company has figured out how to make its systems run more efficiently. CoreWeave and Nvidia are also providing access to compute as part of their investments, although Benkin declined to disclose the precise terms.