Latest news with #AndreessenHorowitz
Yahoo
2 days ago
- Business
- Yahoo
Why a16z VC believes that Cluely, the ‘cheat on everything' startup, is the new blueprint for AI startups
When Cluely, a startup claiming to be building a product that helps people 'cheat' on everything, announced that it raised a $15 million Series A financing from Andreessen Horowitz, some people on X criticized the VC firm for backing the controversial company. After all, Cluely isn't just offering a product that may have questionable uses, but the startup has become famous for using what many people call rage-bait marketing. But Cluely's ability to grab attention is precisely what attracted a16z to the startup. Even before meeting Cluely's founder Roy Lee, Andreessen Horowitz's partner Bryan Kim thought that startups need new marketing tactics in the AI era. Kim, like many investors, previously thought that building a superb 'artisan' product with highly desired features was the key to a startup's lasting success, he explained on the latest a16z podcast episode. But shortly after the emergence of GenAI, he noticed that offering an exceptional product might not be enough. 'If you craft this thing and OpenAI or someone builds a new model to include that part in their product, you're done,' Kim said. 'So, it couldn't become this highly thoughtful, slow-build product. It needed to be something where founders moved extremely quickly.' That realization has led Kim to believe that speed, whether in marketing or product building, is paramount to creating a successful startup. Earlier this month, Kim published a post explaining his theory of why, for consumer-facing AI startups, 'momentum is the moat.' When Kim met Lee and saw that Cluely had been able to convert awareness into paying customers, he instantly knew that he had discovered a founder he had theorized about. 'It's been so hard to pierce through the noise of everything AI, especially in consumer, and to do that consistently is actually near impossible,' Kim said. How does Lee explain why his polarizing marketing approach has generated so much buzz? 'Most people don't know how to make viral content,' Lee said on the podcast. 'Everyone on X is trying to [sound] like the most intellectual, thoughtful person. But this just lacks viral sense.' Lee, instead, had studied why some posts on TikTok and Instagram blow up. 'Algorithms promote the most controversial things,' he said. 'I'm just literally applying the same principles of controversy on X and LinkedIn.' What many people don't know, Lee said, is that Cluely barely had a functioning product when the startup launched in April with its slickly produced video of Lee using its hidden AI to a lie to a woman about his age and knowledge of art while on a date. Despite having some semblance of a product, the startup has yet to unveil the solution it has been hyping. 'The internet is up in storm saying, 'Where's the product?'' Lee said. 'We're earlier than the latest YC batch of companies. Yet, we're generating more views than every single one of them.' Lee is convinced that once the product launches, it will generate even more excitement than if Cluely introduced it without 'marketing' the company for the last two months. (The official launch is set for Friday, June 27, he posted on X.) Kim sees Cluely's approach as a perfect embodiment of his 'momentum as a moat' theory. Since time is of the essence in AI, the a16z partner is convinced that Cluely can figure out its product on the fly. 'What's important is to try to build a plane as it's falling down the cliff,' Kim said. We'll all see soon if that plane soars or crashes.
TechCrunch
2 days ago
- Business
- TechCrunch
Why a16z VC believes that Cluely, the ‘cheat on everything' startup, is the new blueprint for AI startups
When Cluely, a startup claiming to be building a product that helps people 'cheat' on everything, announced that it raised a $15 million Series A financing from Andreessen Horowitz, some people on X criticized the VC firm for backing the controversial company. After all, Cluely isn't just offering a product that may have questionable uses, but the startup has become famous for using what many people call rage-bait marketing. But Cluely's ability to grab attention is precisely what attracted a16z to the startup. Even before meeting Cluely's founder Roy Lee, Andreessen Horowitz's partner Bryan Kim thought that startups need new marketing tactics in the AI era. Kim, like many investors, previously thought that building a superb 'artisan' product with highly desired features was the key to a startup's lasting success, he explained on the latest a16z podcast episode. But shortly after the emergence of GenAI, he noticed that offering an exceptional product might not be enough. 'If you craft this thing and OpenAI or someone builds a new model to include that part in their product, you're done,' Kim said. 'So, it couldn't become this highly thoughtful, slow-build product. It needed to be something where founders moved extremely quickly.' Techcrunch event Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Boston, MA | REGISTER NOW That realization has led Kim to believe that speed, whether in marketing or product building, is paramount to creating a successful startup. Earlier this month, Kim published a post explaining his theory of why, for consumer-facing AI startups, 'momentum is the moat.' When Kim met Lee and saw that Cluely had been able to convert awareness into paying customers, he instantly knew that he had discovered a founder he had theorized about. 'It's been so hard to pierce through the noise of everything AI, especially in consumer, and to do that consistently is actually near impossible,' Kim said. How does Lee explain why his polarizing marketing approach has generated so much buzz? 'Most people don't know how to make viral content,' Lee said on the podcast. 'Everyone on X is trying to [sound] like the most intellectual, thoughtful person. But this just lacks viral sense.' Lee, instead, had studied why some posts on TikTok and Instagram blow up. 'Algorithms promote the most controversial things,' he said. 'I'm just literally applying the same principles of controversy on X and LinkedIn.' What many people don't know, Lee said, is that Cluely barely had a functioning product when the startup launched in April with its slickly produced video of Lee using its hidden AI to a lie to a woman about his age and knowledge of art while on a date. Despite having some semblance of a product, the startup has yet to unveil the solution it has been hyping. 'The internet is up in storm saying, 'Where's the product?'' Lee said. 'We're earlier than the latest YC batch of companies. Yet, we're generating more views than every single one of them.' Lee is convinced that once the product launches, it will generate even more excitement than if Cluely introduced it without 'marketing' the company for the last two months. (The official launch is set for Friday, June 27, he posted on X.) Kim sees Cluely's approach as a perfect embodiment of his 'momentum as a moat' theory. Since time is of the essence in AI, the a16z partner is convinced that Cluely can figure out its product on the fly. 'What's important is to try to build a plane as it's falling down the cliff,' Kim said. We'll all see soon if that plane soars or crashes.
Boston Globe
3 days ago
- Business
- Boston Globe
AI titans flex clout to leverage tax bill to override state laws
Palmer Luckey, founder of defense tech company Anduril Industries Inc., took to the social media platform X on Wednesday to implore Republican lawmakers not to drop the ban on state regulation from the legislation, calling it 'absolutely critical for the economic, educational, military and cultural future of America.' Advertisement Marc Andreessen, head of the leading venture capital firm Andreessen Horowitz and one of Trump's most prominent tech industry allies, on Wednesday also shared posts advocating for the provision. Even if the pause on state AI laws is excluded from the tax bill, the maneuver shows key power centers of the Republican party firmly behind the AI industry's wish for minimal regulatory interference as the emerging technology enters a potentially pivotal phase. That influence is likely to shape the Trump administration's executive actions and possibly future legislation unburdened by the tight timetable and complicated politics of the tax bill. Trump Commerce Secretary Howard Lutnick joined the social media campaign Wednesday on behalf of the ban, calling it essential to 'to stay ahead of our adversaries and keep America at the forefront of AI.' Advertisement The 10-year ban tucked into the House version of the tax bill and current Senate draft would block states from enforcing AI laws. In the absence of federal regulation, states over the past few years have enacted dozens of new laws — curbing deepfakes, protecting artists, banning algorithmic discrimination — aimed at preventing harms from the nascent technology. The ban is a top priority for big tech companies like Meta Platforms Inc. as well as venture capital firms, such as Andreessen Horowitz, which backs smaller but still powerful players. 'Don't expect it to disappear,' said Joseph Hoefer, AI policy lead at lobbying firm Monument Advocacy, who represents clients including Booz Allen Hamilton and Atlassian Corp. 'This provision, or some version of it, will likely become a mainstay in any serious AI legislation going forward.' But the unified Democratic opposition to Trump's tax bill and the president's eagerness for quick passage give Republican opponents of a ban a lot of leverage since the party can afford to lose only three Republican senators. At least four Republican senators expressed reservations about the ban on AI regulation in interviews. Republican senators Marsha Blackburn of Tennessee and Josh Hawley of Missouri have both vowed to strip the provision from the legislation. 'We cannot prohibit states across the country from protecting Americans, including the vibrant creative community in Tennessee, from the harms of AI,' said Blackburn, whose state has a new law that protects musicians and artists from unauthorized AI use and is home to country music capital Nashville. Florida Republican Senator Rick Scott told Bloomberg News he believes Congress has to 'continue to allow our states to innovate.' Senator Ron Johnson of Wisconsin said a decade-long freeze 'might be a little long.' Advertisement Senate Commerce Chair Ted Cruz, a Texas Republican, on Wednesday released an updated version of his committee's portion of the bill that specifies states could still pass 'tech-neutral laws' that impact AI, such as broader consumer protection or intellectual property laws. Supporters of the ban, including industry lobbyists, are seizing on the opportunity to influence congressional action by flooding the Hill this week to convince Republicans the AI provision should remain in Trump's bill. Companies have largely deferred to trade associations like the Chamber of Commerce and tech groups like INCOMPAS in the lobbying fight. The Chamber of Commerce in a statement said they support the provision because it would stop 'confusing' state and local AI regulations. 'We cannot afford to wake up to a future where 50 different states have enacted 50 conflicting approaches to AI safety and security,' said Fred Humphries, corporate vice president of US government affairs for Microsoft Corp. White House tech adviser Michael Kratsios and AI czar David Sacks have publicly and privately praised the idea of a ban on state regulation. Kratsios at a Bloomberg event earlier this month said there are 'significant downsides' to a patchwork of state regulations and supports a national standard, which he added would benefit smaller tech companies in the market. A spokesperson for the White House Office of Science and Technology Policy said the office has 'not been involved' in conversations about the bill. The White House did not immediately respond to a request for comment. The struggle has highlighted internal Republican battle lines over how to handle the fast-moving technology backed by trillions of dollars in investments. Advertisement Hardline conservative critics, including the influential think tank Heritage Foundation, say the proposal would infringe on states' ability to protect their citizens against risks posed by AI. Officials in all 50 states, including some Republican attorneys general, and dozens of advocacy groups have also criticized the GOP effort. Senator Ed Markey of Massachusetts, a Democrat, said he plans to file an amendment to strip the moratorium out of the tax legislation. Republican opponents expect to join forces with Democrats to try to kill the measure. 'It's pretty clear that there's a bipartisan opposition,' Markey said. Conservative Republicans in the House also vowed to oppose the provision. But some supporters of the regulation ban still are optimistic it will remain in the tax package. 'I don't even think this is the top 10 most controversial things in the 'Big Beautiful Bill' politically,' said Neil Chilson, head of AI policy with the tech-backed Abundance Institute. 'There will be horse-trading. I think this has a real shot.' And the support of key Trump officials signals the path the administration is setting. Sacks, the White House AI and crypto czar, earlier this month said the moratorium is the 'correct small government position.' 'The America First position should be to support a moderate and innovation-friendly regulatory regime at the federal level, which will help rather than hobble the US in winning the AI race,' Sacks said in a post on X.
Technical.ly
3 days ago
- Business
- Technical.ly
Abridge secures $300M, doubling valuation and fueling national expansion
Health transcription giant Abridge has secured a $300 million raise backed by high-profile investors. Venture capital firms Andreessen Horowitz and Khosla Ventures led the round, the Pittsburgh-based startup announced yesterday, bringing Abridge's valuation to roughly $5.3 billion. The multimillion-dollar investment will power its partnerships with over 150 health corporations across the US. Abridge's product, an AI tool that it says it hopes to reduce burnout by simplifying medical discussions with patients, will support around 50 million medical conversations this year, according to a blog post announcing the raise. 'Every medical conversation is rich with the signals our healthcare system depends on,' CEO and co-founder Shiv Rao said in the post. 'Abridge activates those signals in the background, silently handling the complexity so clinicians can focus on the human moments that matter.' The additional funding will be used to scale its AI platform, spokesperson Emily Eng said on behalf of Abridge. It hopes to eliminate the need for coordination between clinicians and billing teams and ultimately make revenue cycle management teams' jobs more efficient, among other things. The news comes after a Series D raise of $250 million brought the company's value to $2.75 billion in February. Abridge doubles its valuation in just four months Given its massive jump in funding since its Series D round in February, Abridge has shown steady growth. The latest round nearly doubled the company's valuation in just a four-month span. In total, the company has raised more than $800 million since it was founded in 2018, according to PitchBook. Abridge has so far been at the top of Pittsburgh's venture capital raises in recent years, raking in nearly half of Pittsburgh's decade-high $689 million raised in Q1 2025. In the first quarter of 2024, Abridge was also leading Pittsburgh's fundraising. It was responsible for more than half of all regional venture capital raised in Q1 of that year. Prior to that, Abridge was among the top five earners in the final quarter of 2023. Since significantly boosting Pittsburgh's startup fundraising scene, Abridge has been open about looking to other cities for new hires. The most recent raise announcement comes after Abridge said in March that it was moving to hire in San Francisco, citing a need to hire 'hundreds' to meet current demand. 'Pittsburgh continues to be a hub,' Eng said, 'for key cross-functional talent in machine learning, clinical science and partner success at Abridge.'
Yahoo
3 days ago
- Business
- Yahoo
Introducing the Going Public Stage at TechCrunch Disrupt 2025
For the first time ever, TechCrunch Disrupt is launching the Going Public Stage — a brand-new destination for founders navigating the mid and late stages of company building. This content is essential for any founder, but especially those scaling fast, preparing for exit, or reimagining what comes next. Because whether you're at the seed stage or Series E, the most successful founders are always thinking 10 steps ahead. You'll hear from some of the biggest names in tech and venture — including Eric Yuan (Zoom), Julie Wainwright (The RealReal), David George (Andreessen Horowitz), and Nirav Tolia (Nextdoor) — as they share hard-won lessons on building resilient companies, navigating shifting markets, and staying ahead of the curve. From IPO prep to AI-powered GTM strategy, this stage is your roadmap for building what's next. Stay tuned — more sessions and speakers are coming soon. In the meantime, mark the Going Public Stage as a can't-miss at Disrupt, and grab your ticket now to save up to $675. David George, general partner, Andreessen Horowitz Startups today can grow to huge valuations, cash out their employees, and stay private longer than those of previous eras. But that also means that late-stage startups are facing a whole new set of rules. George unpacks the shifting VC landscape, what the next generation of scaled startups needs to know, and how capital is being deployed in an era of tighter money and higher expectations. From IPO windows to secondary markets to the evolving role of growth investors, this fireside chat goes deep on what it really takes to build enduring companies in today's market — and what's coming next. Eric Yuan, CEO, Zoom, and Santi Subotovsky, general partner, Emergence You've built the hit product — now what? Yuan and Subotovsky take the stage to dig into what comes after the breakout moment. From expanding into new markets to launching the next product bets, this panel will explore how great companies avoid becoming one-hit wonders. We'll get into the tough calls on focus vs. diversification, how to keep innovating at scale, and what investors want to see in a second act. If you're staring down the post-product/market fit phase, this convo is your roadmap. Jai Das, co-founder, president, and partner, Sapphire Ventures; Roseanne Wincek, co-founder and managing director, Renegade Partners; and another speaker to be announced Go public, get acquired, or double down and stay private? In today's unpredictable market, founders need to think about exit strategy earlier — and more strategically — than ever. This panel brings together two top VCs and a seasoned CFO to unpack how to set your company up for every option. We'll talk timing, metrics that matter, investor expectations, and what it really takes to navigate M&A, IPO prep, or just keep building through the storm. Whether you're 12 months out or just starting to scale, this conversation is all about making smart moves now for whatever comes next. Julie Wainwright, CEO, Ahara and founder and former CEO, TheRealReal Wainwright knows how to spot a wave — and ride it. From pioneering luxury resale at The RealReal to jumping into personalized nutrition with Ahara, she's made a career out of building ahead of the curve. In this fireside chat, Wainwright opens up about what it takes to start over, scale fast, and stay resilient through market shifts and personal pivots. We'll dig into the lessons learned from category creation, the risks of reinvention, and why experience might just be the ultimate startup edge. , partner, CapitalG; , co-founder, Premise; and , CEO, Nextdoor AI is rewriting the playbook for how startups reach and win customers, and late-stage companies are feeling the pressure to adapt fast. In this panel, two top VCs and a seasoned founder break down how AI is transforming go-to-market strategies, from sales and marketing to customer success. We'll get into what's working, what's hype, and how to build AI into your GTM engine without losing focus. If you're scaling and wondering how AI fits into your next phase of growth, this is the conversation you don't want to miss. Whether you're weighing an acquisition, eyeing the IPO window, or mapping out your ideal exit, the Going Public Stage at Disrupt 2025 is built for founders ready to make their next big move. Hear from leaders who've navigated the highs, the risks, and the reinventions — and walk away with insights you can act on now. Don't wait to sharpen your exit strategy. before prices rise. More sessions and speakers are coming soon, but this stage alone is worth the ticket. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
