Latest news with #techstartups
Gizmodo
9 hours ago
- Business
- Gizmodo
Silicon Valley Is Cashing Its Check After Backing Trump
The cost of living is increasing, wages for workers are stagnant, and people are looking for a break. Silicon Valley is getting one instead. According to Bloomberg, a little-known tax benefit known as the Qualified Small Business Stock (QSBS) that has become a favorite carve-out of tech startups would get expanded under a spending bill proposed by Republicans in the Senate and could potentially put more than $17 billion back in the coffers of Silicon Valley execs. The QSBS provision is a tax exemption that applies to the stock of qualified small businesses like certain tech startups. The rule allows shareholders in one of these businesses to sell or exchange their stock while being exempted from some or all of the capital gains tax that they would otherwise have to pay on those sales. The specifics are a bit complex, but currently, it is set up to allow early-stage investors to benefit if they hold onto their shares for five years. The proposed changes to the rule, per Bloomberg, would expand the benefit considerably. A provision slipped into the so-called 'One Big Beautiful Bill' would allow investors to come in later, cash out earlier, and still score a nice chunk of cash-free income off their investment. According to data from the Department of the Treasury, about 33,000 people have claimed the QSBS benefit in the last decade. They netted $51 billion in 2021 alone from it, which was a record year. Notably, the Treasury also found that 90% of the income claimed through QSBS came from taxpayers who were reporting more than $1 million of gains—basically, folks who are cashing out big time without paying anywhere near what an average person has to hand over to the federal government. The Treasury Department projects that the QSBS provision will keep about $44.6 billion from being taxed from 2025 to 2030. If the Republicans' proposal moves forward, that would add another projected $17.2 billion in revenue that doesn't come back to the government over that period, according to data provided by the Congressional Joint Committee on Taxation. According to The Guardian, Silicon Valley executives and employees poured about $394 million into Donald Trump's 2024 election campaign. So scoring $17.2 billion in tax breaks certainly seems worth the spend. That's a cool 4,265% return on investment! For what it's worth, Democratic lawmakers proposed significantly rolling back the QSBS rules back in 2021, in a way that would have slashed the amount of income that could be excluded from taxes in half. Instead, the rich get richer.
Forbes
17 hours ago
- Business
- Forbes
How AI Agents Are Redefining Tech Startups
Net Kohen, CEO of Linkme (valued at $100M+), shares insights on using technology to drive business success. Not that long ago, the idea of a billion-dollar company being run by just a few people would've been laughed out of the room. Unicorn startups have always been associated with big teams, long hours and even longer funding rounds. But that picture is changing—and fast. AI agents and automation aren't just making things more efficient; they're quietly redrawing the boundaries of what's possible in tech startups. We're heading toward a world where billion-dollar companies might be built and operated by teams of three or fewer people. It sounds crazy, but the shift is already underway. If you're a tech leader, this is a wake-up call you can't afford to hit snooze on. The Rise Of Autonomous AI Agents AI agents have been around in some form for years—think chatbots or task automation tools. But what's different now is how smart and autonomous they've become. These agents can now make decisions, manage processes and even coordinate with other agents, all with minimal (sometimes no) human oversight. What started as simple support bots has morphed into agents that can manage complex functions like marketing execution, sales outreach and even product iteration. Some agents are capable of creative problem-solving, financial modeling and generating new product strategies. It's no longer a question of whether these agents can replace traditional functions; it's already happening. More founders are skipping the process of building out departments and instead deploying agents to handle the heavy lifting. From 100-Person Teams To Three-Person Unicorns Historically, scaling meant hiring more people. More engineers, more marketers, more customer support reps—the list goes on. The more you grew, the more people you needed to keep things running. AI agents flip that model on its head. Now, a handful of founders can: • Automate core functions, using agents trained on very specific datasets. • Run go-to-market campaigns, where agents not only generate content but also optimize, A/B test and adjust strategies on the fly. • Handle customer service at scale, with agents that can solve complex customer issues in multiple languages. • Manage finance and compliance, reducing or even eliminating the need for a full back-office team. In this way, three people with the right agent stack could build, launch and scale to unicorn status without following the old rules of scale. What This Means For Tech Leaders This moment isn't just about automation—it signals a deeper transformation in the very economic model underlying how companies are built. For tech leaders, investors and operators, the implications are far-reaching and demand careful attention. Traditional valuation metrics, such as headcount or conventional organizational hierarchies, will likely lose relevance. Instead, new indicators—like capital efficiency, the sophistication of agent orchestration and speed to market—will become central to how companies are assessed. At the same time, we're likely to see the rise of a new kind of founder. Success won't necessarily hinge on deep technical expertise or operational management skills. The most effective leaders may be those who excel at orchestrating networks of AI agents—individuals who understand how to align autonomous tools toward a coherent vision. This shift will also reshape organizational design itself. Rather than focusing on execution, human teams will be reoriented toward higher-order tasks like strategy, creativity and long-term direction. The actual "doing" will increasingly be handled by agents. As this shift is already happening, it's important to understand what the next steps look like for such an approach. How To Prepare For This Agent-First World If you want to stay ahead of this wave, here are a few moves to start considering right now: Map out your entire operating rhythm on a whiteboard—everything from marketing cadences and onboarding touchpoints to invoice runs and more. Then circle the steps that take up a lot of time but don't require human judgment. Ask yourself: What could ChatGPT handle? Those tasks are perfect candidates for automation with an AI agent. Roll out one agent at a time, measure the lift and keep a running "kill list" of tasks you'll automate next quarter. The biggest hurdle is usually messy data, so budget a sprint for cleaning it up first. You'll free your team to chase opportunities instead of chasing checklists. It's not enough to deploy a few bots and hope they behave. Tomorrow's standout leaders will know how to map dependencies, set guardrails and connect their agents together so they hand off work without dropping the ball. You can start small, have a content creation agent feed a testing agent that fires results back to marketing and then iterate. Learn prompt design, basic APIs and data governance rules—they're the new managerial toolkit. Expect a learning curve, though. Agents can be brittle at first, but the compounding payoff is massive once they click into place. Ask yourself, "If my burn rate were cut in half, how would I redeploy capital?" When fixed costs shrink, strategy changes. You can attack smaller, overlooked niches or spin up experiments that used to be too expensive. Model best-, base- and worst-case scenarios with sub-10-person teams and see where the economics break. One warning—lean doesn't mean lax. Regulators, customers and investors will still expect airtight security, compliance and transparency, so bake those controls into your agent stack from day one. Conclusion AI agents aren't just tools; they're changing the entire game of tech entrepreneurship. The unicorns of the next decade probably won't look like the ones we know today. They'll be smaller, leaner and built on top of fleets of autonomous agents. For tech leaders willing to embrace this shift, the opportunity is enormous. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Yahoo
6 days ago
- Business
- Yahoo
'We're not trying to be Silicon Valley': Inside Station F, where Paris is incubating the next tech and AI juggernauts
Paris's Station F, a converted train station, is a prolific incubator for tech startups. The incubator has doubled down on the AI boom and is getting more interest from US startups. Business Insider visited the vibrant space to see how it's driving France's tech boom. In Paris's balmy thirteenth district, an airy rail depot that's been converted into a startup incubator is now the epicenter of France's tech boom. Walking through Station F, it's hard not to see how the 366,000-square-foot space has been influenced by Silicon Valley, with its amenities like a huge cafeteria and an under-construction yoga studio that are reminiscent of Big Tech campuses. But Station F's director, Roxanne Varza, told Business Insider that it is not trying to become an American incubator. "We've been inspired by a lot of players, and we look up to Y Combinator. But we're not trying to be Silicon Valley," she said. Now, politics is helping drive international founders here, including Americans, Varza told BI during a recent visit. The election of Donald Trump and Brexit were among the biggest catalysts driving international founders to Station F, Varza told BI. After France, the US and UK are the most represented nationalities on campus, which houses entrepreneurs from 70 nationalities, Varza said. At times of political volatility, the campus has been a magnet for founders seeking a global outlook and a supply of talent. Trump 2.0 — and its aftermath, including the announcement of Stargate and DeepSeek — galvanized European founders to step up, Varza said. The US tech ecosystem secured $209 billion in VC funding in 2024, about 17 times more than France. But Paris is catching up to its global counterparts. In 2025, technology research platform Dealroom billed the city as Europe's new tech champion, overtaking London's mantle. From 2017 to 2024, the combined enterprise value of startups based in Paris increased 5.3 times, more than any other European tech hub. Climate tech founders in particular have been coming from the US to Station F amid the Trump administration cutting incentives for green industries in the US, Varza said. Materials discovery startup Entalpic, which launched in 2024, has had a flurry of US applicants vying for jobs at the company since the start of the year, its cofounder, Alexandre Duval, told BI. Duval had planned to move his startup out of Station F once it reached 20 employees, but decided to stay. "We have so many resources here: meeting rooms, onboarding, events, opportunities to meet people. It's good," he said. Station F, the handiwork of French billionaire Xavier Neil, launched in 2017 to drive entrepreneurship in France's tech ecosystem. The Station F team accepts around 40 startups every month. In addition to access to the incubator's coworking space, startups get resources and mentorship, including from government officials and Big Tech companies, such as Meta and Microsoft, that have offices at Station F. Station F's flagship Founders Program offers founders workshops and masterclasses. In return, the incubator takes 1% equity — a more favourable figure than the 6% taken by Y Combinator. The incubator also aims to write checks of $50,000 to $100,000 to around 20 upstarts each year. The result is a hubbub of innovators collaborating and ideating all days of the week — a far cry from how some corners of LinkedIn see Europe's tech ecosystem as the butt of the joke for its supposed lax work culture compared to Silicon Valley. Station F has welcomed everyone from the prime minister of Ethiopia to the CEO of Cisco — and the morning I arrive, the CEO of GitHub is scheduled to speak for a Q&A as part of VivaTech, France's flagship tech event that attracted speakers such as Nvidia's Jensen Huang. "The No. 1 reason people come here is for the access to people," Varza added. Like many of its international counterparts, Station F has doubled down on the AI boom. Government initiatives under France's president Emmanuel Macron, as well as generous financing from the country's national bank, Bpifrance, have galvanized the region's AI startups. In 2023, French AI startups raised $1.9 billion, per PitchBook data. In 2024, this figure rose by more than 50% to $2.98 billion. Notable rounds included Mistral's $600 million raise in June 2024 and H's mammoth $220 million seed round in May 2024. So far this year, French AI companies have raised $1.7 billion in VC funding, and Macron announced in February an additional $112 billion in private sector funding earmarked for the country's AI ecosystem. High-profile investors such as Andreessen Horowitz, General Catalyst, and Lightspeed Ventures have flocked to back prolific AI startups founded in France, such as Mistral, Dust, and Poolside. Open-source AI company Hugging Face, now valued at $4.5 billion, was once incubated in Station F. Now, Varza said, around 40% of France's AI startups are spinning out of the program. In 2024, 34 out of 40 of the top startups touted by Station F — its "Future 40" — were AI companies. "Station F is one of the biggest AI communities in Europe," Varza says. "It's also an entry point for so many tier one investors coming to Europe — and we're seeing more Series A and B rounds too." Beyond helping AI startups raise financing, Station F also participates in regulatory debates about France's tech ecosystem, Varza added. "Right now, the government is talking about how we can fiscally incentivise AI companies and push creation. We're in those discussions very actively." I was keen to speak to AI and climate founders, and within two minutes, Varza had grabbed two people for me to speak to. It was a reflection of how Station F operates: touting collaboration over competition. Despite the vast space, I saw founders from different startups huddled together in various pockets of the station, congregating for in-house events such as Q&As, as well as the bustling restaurant space. "We saw incredible things happen when people were working in close spaces," Varza said. "You see everything from VR and AI companies collaborating — and even companies winding down and neighbouring teams acquiring them." She recalled how one startup in the incubator wanted to pivot and copied a neighbouring company's idea. "It's our only copycat story, but they both ended up being pretty successful," she added. Station F is working on initiatives with Japan and the Gulf region, Varza said — but what excites her most is the opportunity to take what they've built in Paris and "build those bridges" internationally across Europe. Read the original article on Business Insider
Arab News
6 days ago
- Business
- Arab News
Why tech startups should choose Riyadh as their MENA launchpad
RIYADH: Riyadh is becoming a leading destination for tech startups in the Middle East, fueled by Saudi Arabia's Vision 2030 reforms, an advanced infrastructure, and robust government-backed incentives. The Saudi information and communication technology market is projected to reach $54.90 billion in 2025 and $82.51 billion by 2030 at a compound annual growth rate of 8.49 percent, according to an analysis by Mordor Intelligence. This growth highlights the Kingdom's increasing prominence as a regional innovation hub. At the heart of this transformation is Saudi Arabia's Vision 2030 economic diversification plan, which has placed technology at the forefront of its strategy. Major initiatives, such as NEOM, a $500-billion smart city powered by artificial intelligence and renewable energy, and Riyadh Tech Valley, a dedicated hub for AI, the Internet of Things, and robotics startups, are driving this momentum. Government programs such as the Saudi Unicorns Program and Tech Growth Financing provide critical support for scaling businesses, further cementing Riyadh's appeal. Emmanuel Durou, technology, media and telecommunications leader at Deloitte Middle East, highlighted three key operational factors behind Riyadh's startup success. 'First, Saudi Arabia's advanced digital infrastructure has significantly accelerated startup growth,' he told Arab News in an interview. The 2018 Bankruptcy Law emphasizes debt restructuring over liquidation, providing cash-strapped startups a mechanism to negotiate with creditors early before default. Jasem Al-Anizy, partner in corporate finance at Addleshaw Goddard KSA Government-led digital transformation initiatives have created a robust technological backbone, with 14 percent of Saudi broadband users enjoying speeds over 1G bits per second — far surpassing the 4 percent seen in markets like the UK. 'This infrastructure supports rapid innovation and scaling up,' he added. The second factor, according to Durou, is the Kingdom's strategic focus on developing local talent pipelines. 'As many as 86 percent of Saudi universities now provide undergraduate programs in AI, 56 percent offer master's degrees, and doctoral opportunities stand at 9 percent,' he noted. The Deloitte leader emphasized that institutions like King Abdullah University of Science and Technology play a pivotal role in supplying startups with skilled, technology-ready talent. Lastly, Durou pointed to the Kingdom's supportive business environment, which includes government incentives, substantial funding mechanisms like venture capital and private equity, and vibrant incubator ecosystems such as Garage 46 and Impact 43. He also shed light on the Kingdom's high consumer adoption rates of advanced technologies, particularly Gen AI. Deloitte's recent survey outlined Saudi Arabia's high awareness of the technology at 76 percent, with usage frequencies of 20 percent daily and 32 percent weekly — significantly higher than the UK, he added. When comparing Riyadh's startup scaling environment to Dubai's, Durou observed distinct strengths in each. 'In Riyadh, government-driven initiatives such as Saudi Vision 2030 have significantly streamlined regulatory processes, enabling startups to reduce their time-to-market,' he said, adding that 'extensive support from local incubators, accelerators, and dedicated funding programs serve to further accelerate product development and launch timelines.' Durou noted that customer acquisition costs in Riyadh are comparatively lower, driven by the ongoing surge in digital adoption among consumers and supported by targeted government-backed marketing initiatives. The fintech sector, in particular, benefits from robust governmental support, which helps meet rising local demand. Meanwhile, e-commerce growth is further propelled by high Internet penetration and shifts in consumer behavior. 'Dubai offers rapid market entry facilitated by the globally recognized Dubai International Financial Centre and a mature, efficient regulatory environment. Although high market competition can drive up customer acquisition costs in Dubai, it's balanced by an expansive and diverse customer base,' he explained. Durou highlighted that the DIFC ecosystem offers fintech startups access to government incentives, which greatly enhance their growth prospects. He also emphasized that Dubai's strategic geographic position as a global trade hub, along with its advanced logistics and warehousing capabilities, significantly accelerates the expansion of e-commerce. Jasem Al-Anizy, partner in corporate finance at Addleshaw Goddard KSA, shed light on the legal structures that are proving effective in the Kingdom. 'Saudi startups have historically preferred an offshore ring-fencing of intellectual property assets by holding and protecting intellectual property interests in a standalone sister company based in an offshore jurisdiction,' he explained to Arab News. 'This has helped startups in scaling globally and simplifies exit strategies,' Al-Anizy said. Government-driven initiatives have significantly streamlined regulatory processes, enabling startups to reduce their time-to-market. Emmanuel Durou, technology, media and telecommunications leader at Deloitte Middle East However, with stronger business and intellectual property laws, there is increasing trust in local company structures like the Simplified Closed Joint Stock Co. Al-Anizy also highlighted the advantages of Riyadh's bankruptcy laws for tech startups facing liquidity challenges. The 2018 Bankruptcy Law emphasizes debt restructuring over liquidation, providing cash-strapped startups a mechanism to negotiate with creditors early before default, he said. The law was introduced to provide guidance on the adoption and implementation of bankruptcy proceedings. Despite its name, the primary objective of the Bankruptcy Law is not liquidation but rather the rescue of insolvent businesses through reorganization and financial restructuring. Al-Anizy said that this sophisticated regime demonstrated in recent large-scale restructurings, has garnered recognition from founders and investors alike. On the dispute side, mediation and the Saudi Center for Commercial Arbitration are becoming preferred avenues for resolution. For foreign founders setting up their MENA Headquarters in Riyadh, Al-Anizy stressed the importance of clear contractual considerations. 'Founders having an unclear picture of their share cap table, equity vesting, or the conversion of any issued SAFE/KISS notes is an easily avoidable way to lose investor confidence,' he warned. A Simple Agreement for Future Equity is an investment instrument that allows startups to raise capital without immediately determining a valuation, converting it into equity upon a future-priced round or liquidity event. Similarly, a Keep It Simple Security operates as either a convertible note or a SAFE-like agreement, offering standardized terms for early-stage funding. Both are designed to streamline early investments while deferring valuation discussions, but founders must track their terms, such as discount rates, valuation caps, and conversion triggers, to maintain transparency with investors. Al-Anizy also advised explicit contractual clauses to ensure intellectual property rights are clearly vested in the company, safeguarding the business and maintaining investor trust. Riyadh has become a magnet for multinational corporations, with around 600 foreign companies establishing their regional headquarters in the city since the launch of the Saudi Program for Attracting Regional Headquarters in 2021. Spearheaded by the Ministry of Investment and the Royal Commission for Riyadh City, this initiative is a cornerstone of Vision 2030's goal to position Saudi Arabia as a global business hub. The program offers compelling incentives, including a 30-year tax relief package with 0 percent corporate and withholding taxes, streamlined setup processes, and access to world-class infrastructure. Riyadh's strategic location at the crossroads of Asia, Africa, and Europe, combined with its skilled workforce and economic stability, has made it the top choice for multinationals looking to expand in the region. Riyadh's appeal is further bolstered by business-friendly policies, including 100 percent foreign ownership in key sectors, tax incentives, and streamlined licensing through the Saudi Business Center. Startups also benefit from partnerships with major corporations like Aramco and STC, as well as accelerator programs from Flat6Labs and 500 Global. With a population of 36 million and the largest economy in the Middle East and North Africa, Saudi Arabia offers startups access to a high-spending consumer base and a gateway to regional expansion. The Kingdom's advancements in technology were recognized in the 2024 Global Innovation Index, where it secured the 47th spot among 132 countries. Events such as the LEAP Tech Conference and Riyadh Season continue to draw global investors, while local success stories — from Tamara, Saudi Arabia's first fintech unicorn delivering payments and banking, to Salla, an e-commerce platform empowering SMEs with digital storefronts — demonstrate Riyadh's potential as a launchpad for high-growth companies.
Bloomberg
18-06-2025
- Business
- Bloomberg
Billionaire Dai to Reap $237 Million Windfall From Qualcomm Deal
Weili Dai has built a career helping turn tech startup after tech startup into successful ventures. The serial entrepreneur is now poised to pocket a windfall from one of them: $237 million from the pending sale of Alphawave IP Group Plc to Qualcomm Inc. Dai holds a 96.3 million-share stake in the London-listed semiconductor firm, making her its second-largest shareholder. Qualcomm agreed earlier this month to buy Alphawave for about $2.4 billion in cash, in a deal expected to close in the first quarter of next year.
