How confidential computing could secure generative AI adoption

Generative AI has the potential to change everything. It can inform new products, companies, industries, and even economies. But what makes it different and better than “traditional” AI could also make it dangerous.

Its unique ability to create has opened up an entirely new set of security and privacy concerns.

Enterprises are suddenly having to ask themselves new questions: Do I have the rights to the training data? To the model? To the outputs? Does the system itself have rights to data that’s created in the future? How are rights to that system protected? How do I govern data privacy in a model using generative AI? The list goes on.

It’s no surprise that many enterprises are treading lightly. Blatant security and privacy vulnerabilities coupled with a hesitancy to rely on existing Band-Aid solutions have pushed many to ban these tools entirely. But there is hope.

Confidential computing — a new approach to data security that protects data while in use and ensures code integrity — is the answer to the more complex and serious security concerns of large language models (LLMs). It’s poised to help enterprises embrace the full power of generative AI without compromising on safety. Before I explain, let’s first take a look at what makes generative AI uniquely vulnerable.

Generative AI has the capacity to ingest an entire company’s data, or even a knowledge-rich subset, into a queryable intelligent model that provides brand new ideas on tap. This has massive appeal, but it also makes it extremely difficult for enterprises to maintain control over their proprietary data and stay compliant with evolving regulatory requirements.

Protecting training data and models must be the top priority; it’s no longer sufficient to encrypt fields in databases or rows on a form.

This concentration of knowledge and subsequent generative outcomes, without adequate data security and trust control, could inadvertently weaponize generative AI for abuse, theft, and illicit use.

Indeed, employees are increasingly feeding confidential business documents, client data, source code, and other pieces of regulated information into LLMs. Since these models are partly trained on new inputs, this could lead to major leaks of intellectual property in the event of a breach. And if the models themselves are compromised, any content that a company has been legally or contractually obligated to protect might also be leaked. In a worst-case scenario, theft of a model and its data would allow a competitor or nation-state actor to duplicate everything and steal that data.

These are high stakes. Gartner recently found that 41% of organizations have experienced an AI privacy breach or security incident—and over half are the result of a data compromise by an internal party. The advent of generative AI is bound to grow these numbers.

Separately, enterprises also need to keep up with evolving privacy regulations when they invest in generative AI. Across industries, there’s a deep responsibility and incentive to stay compliant with data requirements. In healthcare, for example, AI-powered personalized medicine has huge potential when it comes to improving patient outcomes and overall efficiency. But providers and researchers will need to access and work with large amounts of sensitive patient data while still staying compliant, presenting a new quandary.

To address these challenges, and the rest that will inevitably arise, generative AI needs a new security foundation. Protecting training data and models must be the top priority; it’s no longer sufficient to encrypt fields in databases or rows on a form.

In scenarios where generative AI outcomes are used for important decisions, evidence of the integrity of the code and data—and the trust it conveys—will be absolutely critical, both for compliance and for potentially legal liability management. There must be a way to provide airtight protection for the entire computation and the state in which it runs.

The advent of “confidential” generative AI

Confidential computing offers a simple, yet hugely powerful way out of what would otherwise seem to be an intractable problem. With confidential computing, data and IP are completely isolated from infrastructure owners and made only accessible to trusted applications running on trusted CPUs. Data privacy is ensured through encryption, even during execution.

Data security and privacy become intrinsic properties of cloud computing—so much so that even if a malicious attacker breaches infrastructure data, IP and code are completely invisible to that bad actor. This is perfect for generative AI, mitigating its security, privacy, and attack risks.

Confidential computing has been increasingly gaining traction as a security game-changer. Every major cloud provider and chip maker is investing in it, with leaders at Azure, AWS, and GCP all proclaiming its efficacy. Now, the same technology that’s converting even the most steadfast cloud holdouts could be the solution that helps generative AI take off securely. Leaders must begin to take it seriously and understand its profound impacts.

With confidential computing, enterprises gain assurance that generative AI models only learn on data they intend to use, and nothing else. Training with private datasets across a network of trusted sources across clouds provides full control and peace of mind. All information, whether an input or an output, remains completely protected, and behind a company’s own four walls.

How confidential computing could secure generative AI adoption by Walter Thompson originally published on TechCrunch

Ask Sophie: How do we relocate Ukrainian and Russian team members to the U.S.?

Here’s another edition of “Ask Sophie,” the advice column that answers immigration-related questions about working at technology companies.

“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”

TechCrunch+ members receive access to weekly “Ask Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.


Dear Sophie,

Our startup employs about 30 people globally through a combination of direct and co-employment based on their country.

Over the last year and a half or so, we helped several team members relocate from Ukraine and Russia to various non-Schengen countries such as Georgia, Taiwan, Thailand, Turkey, and Uzbekistan.

We realize it’s more expensive if we bring these employees to the U.S., but our startup will be more successful. How do we bring them here?

— Meaningful Money-making

Dear Meaningful,

Many companies have helped make a meaningful difference in people’s lives, supporting talented team members and their families from countries such as Ukraine and Russia to relocate to safety. Thank you for now considering how to help certain individuals relocate to the U.S. May all humans enjoy peace, prosperity, and freedom.

Many employers are continuing to work with the Ukrainian and Russian professionals who have left their homes since Russia invaded Ukraine in February 2022.

Of the 8 million people who have left Ukraine, more than 270,000 have been admitted to the United States, most of them under the Uniting for Ukraine program, which provides a temporary stay in the United States and a work permit.

At least 500,000 and as many as 1 million people have left Russia and more than 65,000 Russians have sought entry to the U.S. between February 2022 and April 2023. According to Russian government figures, about 100,000 IT specialists (about 10 percent of the tech workforce) left Russia, which is likely underestimated.

Before I dive into options for bringing Ukrainian and Russian employees to the United States, I recommend you work with an immigration attorney to devise a strategy for each employee you’re seeking to sponsor based on her/his education, skills, qualifications, location, and situation. Your company has several options for bringing your Ukrainian and Russian employees to live and work in the United States.

Uniting for Ukraine

The Uniting for Ukraine program, which began last year, provides a way for Ukrainian citizens and their immediate family members to come to the United States to stay for two years under temporary parole status. Individuals participating in the program must have a U.S.-based supporter or multiple supporters—an individual, organization, or business—who agrees to financially support their stay.

The supporter must fill out Form I-134A (Online Request to be a Supporter and Declaration of Financial Support) and submit it to U.S. Citizenship and Immigration Services (USCIS). The program includes the option for a Employment Authorization Document (EAD), otherwise known as a work permit.

Right now, parole under the Uniting for Ukraine program cannot be extended beyond two years, but that may change. Your company could consider sponsoring employees on parole for work visas or green cards I explain in more detail below.

Ask Sophie: How do we relocate Ukrainian and Russian team members to the U.S.? by Walter Thompson originally published on TechCrunch

Vertical AI: The next logical iteration of vertical SaaS

At Index Ventures, we view the emergence of vertical SaaS (vSaaS) — cloud-based software tailor-made for specific industries — as part of a broader trend of end users increasingly demanding superior technology products.

Consumers want solutions-oriented software made specifically to solve their exact business problems. In an environment where we are inundated with software, narrow and specific is well-positioned versus broad and generalized.

The concept is not new: Even the largest horizontal tech companies verticalize their sales organizations and product features when they have enough scale within each vertical for that to be a sensible approach.

Cloud giants AWS, Azure, and Google Cloud Platform prominently feature vertical industry solutions with dedicated sales teams, as do other large platforms like Salesforce, ServiceNow, Snowflake and Workday.

These tech leaders verticalize their offerings over time because it’s a high-quality experience for customers and end users when a technology vendor deeply understands the industry, has sales and support reps attending the same conferences as users, and is rapidly evolving the product to suit customer needs.

The AI category is rapidly evolving, but developing into three layers: foundational models, AI infrastructure, and AI applications.

With the AI platform shift upon us, we believe that the next logical iteration of vertical SaaS will be vertical AI – vertically-focused AI platforms, bundled alongside workflow SaaS, built on top of models which have been uniquely trained on industry-specific datasets.

Why vertical AI?

The AI category is rapidly evolving, but developing into three layers: foundational models, AI infrastructure, and AI applications.

Examples of AI stack companies

Examples of AI stack startups. (Index Ventures is an investor in Causaly, Cohere, Scale, ServiceTitan and Weaviate.) Image Credits: Index Ventures

Foundational models are the bedrock of the AI stack. Leaders in this space include Anthropic, Cohere, and OpenAI. It’s likely there will be a limited number of vendors in the foundational LLM space given the high capital requirements to build and train models.

The “picks and shovels” of AI sit at the infrastructure layer, a catch-all which includes a variety of categories including data enhancement, fine-tuning, databases, and model training tools. For example, vector databases like Pinecone and Weaviate are gaining significant adoption.

Other companies like Scale are being used for data generation, labeling, and training. Hugging Face has emerged as a leader for model discovery and inference. Weights & Biases is widely recognized within MLOps. LangChain is an open-source development framework used to simplify the creation of new applications using LLMs. These are a few of many companies which are helping companies transform models and data into products.

Foundational models and infrastructure are enabling an explosion of AI business applications. These AI-powered applications could be used by any end user, in any industry, to accomplish an array of tasks.

Vertical AI: The next logical iteration of vertical SaaS by Walter Thompson originally published on TechCrunch

SignalFire’s State of Talent report 2023

The era of tech giants overstaffing and overpaying has ended, at least for now. But talent is flooding the market, and those still employed have been left to shoulder all the work—there’s a huge opportunity for savvy recruiters to scoop up top performers.

Today’s job market is a confusing paradox. While unemployment is at a record low and there’s a labor shortage in healthcare and hospitality, tech has seen nonstop layoffs that hit 166,044 workers in Q1 2023 alone. That’s more than all of 2022’s then-record 161,411 tech layoffs.

What’s most unprecedented is that these layoffs are hitting software engineers, including top talent at FAANG companies that were previously considered untouchable. This is in sharp contrast to the 2008 recession, when the U.S. high-tech industry gained about 77,000 jobs in Q4, most in software development, despite the overall U.S. labor market losing 38,000 jobs.

327,475 people in tech laid off from Q1 2022 to Q2 2023

327,475 people in tech were laid off from Q1 2022 to Q2 2023. Image: SignalFire

The reversal of fortunes for engineers is particularly brutal coming off of 2021’s startup fundraising boom and relentless optimism. Companies preempted growth with hiring sprees far ahead of their metrics in hopes of continued growth.

But by the summer of 2022, the Great Resignation and “quiet quitting” gave way to mass layoffs by four of the big five in tech—Meta (Facebook), Apple, Amazon, Netflix, and Alphabet (Google), known as FAANG. All but Apple made sizable cuts, including deeper cuts for software developers.


Executive Summary

SignalFire’s State of Talent Report explores macro conditions and top-talent movement trends in tech to identify practical strategies for winning in the current hiring market. Top findings include:

    • Hiring power is shifting to startups as post-pandemic layoffs and budget cuts cause a “Great Restart” of compensation norms at big tech companies that can no longer overpay to win the best talent
    • An unprecedented 166,000 tech layoffs happened in Q1 2023 – more than in all of 2022 – and included formerly untouchable software engineers.
    • Big tech talent has flooded the market—69% of FAANG engineers who were laid off or left after May 15, 2022 still listed no current job as of March 15, 2023.
    • 28% of rehired FAANG engineers played musical chairs and switched to another tech giant, while 6% went to early-stage startups – an 82% increase over 2021
    • Startups can capitalize on this power shift by recruiting passive talent who have survived big tech layoffs—they’re often loyal top performers who are overworked after teammates were cut.
    • SignalFire can help startups find and hire top passive talent with its Beacon AI engine and recruiting team.

Mass layoffs and the “Great Restart”

To explain the tech talent market’s sudden implosion, here’s the timeline that led to an imbalance in talent supply and demand.

Tech has seen nonstop layoffs that hit 166,044 workers in Q1 2023 alone. That’s more than all of 2022’s then-record 161,411 tech layoffs.

  • The 2020 pandemic accelerated the move of commerce, collaboration, and entertainment online, causing a boom for many tech companies through 2021.
  • Hiring accelerated in 2021, creating a candidate-centric market that, coupled with the Great Resignation, drove many companies to use above-market compensation to attract and retain top talent.
  • Entering 2022, the cost to do business in general steadily began to rise with inflation, coupled with a return to in-person activities, disrupting demand for online services that had fueled pandemic tech growth.
  • Mid-year 2022, tech valuations and cryptocurrency prices recalibrated down.
  • Ambitious hiring-ahead had been a strategic lever to hit ambitious revenue targets, and as those targets were missed, both public and private companies adjusted to decrease burn and extend their runway.

The result: companies chose to equalize the decreased demand for their products and services by reducing their workforce. Notably, top engineers were not spared.

2020s tech layoff timeline

2020s tech layoff timeline, March 2020 – March 2023. Image: SignalFire

In this report, we share a data-based analysis of the shifting talent landscape starting May 15, 2022 — when some of the most significant changes were starting to take place —through March 15, 2023, which captures the bulk of relevant data but is not inclusive of all activity to date.

We demystify the talent market on behalf of top engineers, as well as the companies where that top talent might find a new home. We specifically looked at engineers who are in the top 25% relative to their peers—as calculated by Signalfire’s Beacon AI data platform, which leverages a proprietary machine learning algorithm we developed to gauge the quality of engineers—both individually and collectively at their companies.

We used a cohort data approach encompassing the Bureau of Labor Statistics and Layoffs.fyi to capture a point in time when tech layoffs peaked, sticking with the data long enough to understand outcomes for that impacted cohort. More on our methodology can be found in the appendix at the end of the report.

How we got here

The Bureau of Labor Statistics reported that the number of U.S. workers who quit their jobs during the Great Resignation between January and December 2021 made it a record-breaking year, with nearly 47.8 million total workers quitting their jobs. That is twice as many as left or were laid off during the Great Recession of 2009 and 2010.

Layoffs in tech - data compiled by SignalFire based on Layoffs.fyi

Layoffs in tech: data compiled by SignalFire based on Layoffs.fyi. Image:SignalFire

Over the years leading up to the implosion, fundraising grew in both velocity and size. Pitchbook NVCA Venture Monitor highlights that 2021 saw a peak in the number of deals closed (18,521) and dollars invested ($344.7 billion) followed by a substantial drop in 2022, with four consecutive quarters of declining deal counts. The conjecture is that investor demand went down in both early- and late-stage investments.

To avoid a down round—or perhaps due to a lack of new funding available altogether—companies began to focus on extending their runway by reducing burn. Headcount and salaries are almost always the biggest line item on a company budget. Many companies had used capital to hire in advance of expected revenue growth and then missed revenue targets. They were suddenly strapped with unsustainable burn due to payroll increases.

Cue layoffs.

As the chart below highlights, layoffs in tech nearly doubled in 2022 compared with 2020; and after just the first quarter of 2023, this is already another record-breaking year for layoffs.

FAANG headcount growth collapsed since 2021

FAANG headcount growth collapsed since 2021. Image: SignalFire

FAANGs out

For the past decade, FAANG companies were seen as the safe bet for job seekers, known for rich compensation packages and high job security. Starting in the summer of 2022, a new reality set in with hiring freezes and layoffs.

SignalFire’s State of Talent report 2023 by Walter Thompson originally published on TechCrunch

Don’t wait to identify your startup’s ideal customer personas

One of the biggest mistakes startups can make at an early stage is not identifying their ideal customer personas (ICP). It is perfectly sensible though, as all your efforts at this stage of growth are usually being consumed with finding product-market fit and acquiring anyone and anything that walks through your front door.

By identifying your ICPs first, you will find product-market fit faster and identify the right customers to sell to.

To start, an ICP is simply a depiction of who your customer segments are – whether they are creative agencies of more than ten employees or corporations with 100+ employees, or both.

Startups using ICPs tend to acquire more leads with higher quality and are able to shorten their sales cycles. Ideally, you have already identified a handful of ICPs, but no more than five, as that will lead to a dilution of efforts among your teams.

To begin leveraging ICPs in your growth marketing, we’ll dive into methods that will first help identify your ICPs efficiently, then examine how to use their newfound segmentation.

Identifying your ICPs

I’m a big fan of surveys that measure net promoter scores and overall customer feedback, but I don’t believe these are the best formats for identifying ICPs. In the early days of your startup, you should be speaking with every customer you possibly can to better identify your ICPs.

By identifying your ideal customer personas first, you will find product-market fit faster and identify the right customers to sell to.

Obtaining such information requires more than a simple multi-select answer, or a ranking score from 1-10. Rest assured, I’ve created a three-tiered methodology (conveniently dubbed ICP!) for guiding the conversational and questioning themes you should be using with your customers:

  • I: Individual (e.g., age, gender, etc.)
  • C: Current solution
  • P: Pain points

When speaking with customers, if you follow the general principle of understanding pain points and what an ideal solution looks like to them, you’ll have a pretty good idea of which ICP they fall into. Instead of providing a generic script for your conversations with customers, which can often come across as robotic, I’ve laid out a few questions that fall into each category:

Individual

  • What is your age range?
  • What is your gender?
  • What is your occupation or job title?

Current solution

  • What are you currently using to solve this problem?
  • How long have you been using your current solution?
  • What do you like/dislike about your current solution?

Pain points

Don’t wait to identify your startup’s ideal customer personas by Walter Thompson originally published on TechCrunch

The 3 stages of building world-class growth funnels

Don’t reinvent the growth funnel.

There’s more than a decade of growth marketing now behind us. Thousands of startups have experimented with infinite variations and tweaks to their growth funnel, so why should you try to reinvent the same foundation?

The most important aspects are acquisition, activation and retention. While referral and monetization are also quite important, they won’t make or break a startup like those first three. If you can’t acquire, activate or retain consumers to your startup, your probability of success is practically nil.

In this article I will walk you through world-class setups from several leading companies, broken down by each stage of the funnel, so that you can draw inspiration from what has already been proven over the last decade.

This isn’t meant to be a teardown of each specific startup, but rather a holistic look into what leading companies are doing, their mindsets when it comes to growth and how to replicate these actions in your own startup.

Funnel stage I: Acquisition

Without question, the most advanced acquisition I personally encountered occurred while I was a leader of rider growth at Uber. As you can imagine, at that time we had swarms of product managers, data scientists and all the complimentary growth roles you can think of helping us push our growth marketing team forward.

When building the correct approach for acquisition, these are the aspects that will elevate a world-class program above an average one:

  • Attribution set-up
  • Mindset on metrics
  • Focus on large levers

In terms of our attribution, I must begin by qualifying that I have never seen an attribution framework that was 100% accurate, as it is essentially impossible to capture all acquisition data without leakage.

At Uber we did still spend a great deal of time working with our attribution partners, such as our mobile measurement partner, and were constantly locating areas of improvement. Before unloading on your acquisition budget, you should first ensure you are capturing all possible data from your paid channels. If you’re acquiring on the web, this means adding UTM parameters to all campaigns.

Acquisition, activation and retention are critical. While referral and monetization are also quite important, they won’t make or break a startup.

Conversely, if you’re acquiring on a mobile app, this means having a mobile measurement partner fully integrated into your app. I’ve written an entire column on how to set up a proper tech stack that I implore readers to visit if they are starting their own attribution efforts from scratch.

Mindset on acquisition is what separates marketers flashing vanity metrics such as CTR and CVR, while simultaneously losing sight on down-funnel conversion metrics. At Uber, we focused on advanced metrics such as predicted LTV (pLTV) and predicted first trips (pFT) of new riders that we were acquiring in real-time. Using methodologies we developed in-house that analyzed various data-points including acquisition channel and geography, we were able to accurately predict the number of trips a new user would make 90 days out.

Whatever your North Star metric is, you should always be looking far into the future to understand the value of your acquisition so that you can double-down on those channels that bring the highest-value consumers.

Acquisition is ever-changing and the best-in-class marketers work hard to stay in touch with the latest creative trends, new ad formats to test, and those next golden pockets to sell to. When I was on the growth team at Coinbase, we spent a minimum of 10% of our budget testing the new ad formats that TikTok was releasing.

The point here is that you should focus on the largest paid acquisition levers as they come to fruition, with one such example being creative on paid social. I recommend the following sites that keep startup founders up to date on the latest growth and marketing trends, for example SocialMediaToday for paid social or Search Engine Land for paid search.

Funnel Stage II: Activation

The 3 stages of building world-class growth funnels by Walter Thompson originally published on TechCrunch

Why Europe and Israel’s unicorns are producing the next generation of tech founders

Talent is the cornerstone of any successful tech ecosystem. In the last two decades, we’ve seen a wealth of strong founders and operators emerge across Europe and Israel, building innovative products and category-defining, unicorn companies that are competing on the global stage.

This in turn has encouraged employees from some of Europe’s biggest tech success stories to take their experience working at a unicorn, use it to found the next generation of startups and win venture backing. As a result, we’re now seeing a spinning flywheel effect, in which unicorn pedigree and know-how is trickling down and fueling the next wave of ambitious entrepreneurs similar to what we have seen in the U.S. over the last few decades.

Since opening our London office 23 years ago, the Accel team has backed some of Europe’s greatest startup success stories, including Celonis, Miro, Monzo, Personio Spotify, Supercell, UiPath and Vinted.

Our recently launched Founder Factories Report explores the unicorns, or “founder factories,” now producing the largest amount of entrepreneurial talent in the region and the resulting journey from unicorn employee to tech founder.

The ecosystem is in a strong position despite current headwinds, thanks to its flywheel of inter-generational talent spawning from unicorns.

Our data paints a clear picture: the ecosystem is in a strong position despite current macroeconomic headwinds, thanks to its flywheel of inter-generational talent spawning from unicorns.

To illustrate this, let’s take a look at some key takeaways from the report:

The rise of the “founder factory”

Established juggernauts in the European and Israeli ecosystem are fast becoming hotbeds of talent. These “founder factories” are attracting and upskilling the region’s brightest tech operators – and inspiring many of them to become founders and start new ventures in the process.

Our data reveals that 221 of the region’s 353 VC-backed unicorns have fueled 1171 new tech-enabled startups through their alumni, illustrating this trend. Moreover:

  • The founder factories at the top of our ranking are Sweden’s Spotify and Germany’s Delivery Hero, both of which have produced 32 startup spinoffs, followed by the likes of Criteo (31), Klarna (31) and Zalando (30). Other familiar unicorns including BlaBlaCar, Deliveroo, Glovo, N26, Revolut, Skype, Wise, Wix and Zalando, have all also produced more than 20 new tech startups each.
  • However, a wave of newer founder factories is also on the rise with younger unicorns such as Babylon, Celonis, Conduit, iZettle and SumUp seeing 10 or more companies set up by former employees.

Ask Sophie: Do I need 2 visas to work at 2 different startups?

Here’s another edition of “Ask Sophie,” the advice column that answers immigration-related questions about working at technology companies.

“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”

TechCrunch+ members receive access to weekly “Ask Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.


Dear Sophie,

I’m in the U.S. on an H-1B visa, but I want to leave my current job and pursue a couple of startup ideas: One with a few friends, and the other on my own.

Do I need to get two separate visas to work at both companies at the same time? Can I transfer my H-1B to one or both companies?

— Energetic Entrepreneur

Dear Energetic,

Wow! Founding two startups and bringing them both to fruition will certainly keep you busy! I admire your drive and applaud you for your gusto and determination!

Let’s first provide some context on work visas versus work permits, and then offer up a few suggestions and alternatives.

Work visas vs. work permits

A work visa, such as the H-1B specialty occupation visa and the O-1A extraordinary ability visa, enables its holder to temporarily live in the U.S. and work only in the engagements included on the original visa petition, Form I-129.

Certain categories of people, such as F-1 students, some dependent spouses of work visa holders, and people pursuing green cards, may be eligible to apply for a work permit that is not tied to any specific employer. (Examples include F-1 OPT, F-1 STEM OPT, E-2 and L-1 spouses, and individuals who have been approved for a green card and have a pending Form I-485, the Application to Register Permanent Residence or Adjust Status.) Also known as an Employment Authorization Document (EAD), a work permit provides proof of authorization to work in the U.S. and enables its holder to get a job or jobs.

Compared to a work visa, an EAD offers wide flexibility to entrepreneurs and founders. That’s one reason we often ask our married entrepreneur clients whether their spouse is eligible for a work visa that offers an EAD to a dependent spouse.

H-1B transfer and concurrent H-1Bs

You can transfer your H-1B from your current employer to another employer for part-time or full-time work. You can also hold two or more concurrent H-1Bs from different employers at the same time.

Although an H-1B visa petition is tied to a specific job with a specific employer, there are no limits on the number of H-1B jobs an individual can hold and no standard minimum — or maximum—number of hours a person can work in any given H-1B position.

Since you’re currently on an H-1B — and already went through the annual H-1B lottery process — you can transfer your H-1B to another company and avoid having to go through the lottery process again. However, you should keep in mind that the maximum stay allowed under an H-1B visa is typically six years unless you apply for a green card.

So, if you’ve been inside the U.S. on H-1B status for a cumulative period of four years, transferring your H-1B to your startups would mean you can live and work in the U.S. for two more years in this status.

H-1B transfers and concurrent H-1Bs can be tricky, particularly for early-stage startups, so it’s important to create a compliant foundation for immigration sponsorship. You will need to structure your startups so that they are eligible to sponsor you for a position and that clear lines are drawn between the two startup entities. I recommend you work with both a corporate attorney and an immigration attorney.

Ask Sophie: Do I need 2 visas to work at 2 different startups? by Walter Thompson originally published on TechCrunch

Upgrading AI-powered travel products to first class

In the race for dominance in the AI travel industry, even a small lead matters right now.

Every player in the space trying to capitalize on the promise of new AI/LLM technologies is struggling with the fact that major platforms like ChatGPT are limited by data that is outdated or not real-time. In an industry like travel, where fickle plans and itineraries literally change with the weather, this is particularly problematic.

As both investors in AI travel and advisors coordinating deals for startups in this space with other investors, we like to see companies pushing boundaries and providing value for users in new, concrete ways.

For instance, Kayak and Expedia have launched ChatGPT plugins, but GuideGeek from travel publisher Matador Network provides real-time flight data (GP Bullhound has provided financial advisory services to Matador Network). Meanwhile, Roam Around has a strong visual element to its interface.

But travel information is complex, and incorrect information — or AI “hallucinations” — are a challenge. Roam Around sometimes recommends one site while showing a photo of another (and potentially linking to a third), and in one of our queries, GuideGeek conjured a cleverly-named pub that simply doesn’t exist.

Other than Airbnb, there really hasn’t been a major shift in how we plan and book travel online in decades.

At this early stage, our firm and other investors in the space we work with don’t have an expectation of perfection. The advances between ChatGPT-3 and ChatGPT-4 are so apparent that it’s easy enough to look at the underlying technology and say, “eh, they’ll figure it out.”

We’re more focused on how companies are shaping and augmenting this technology for travelers, and the market segments within the travel industry they are positioned to capture.

Differentiation is key — you need more than a skin for ChatGPT

Most AI products seem to be built on ChatGPT. While each travel company may start with the same baseline, we really like to see proprietary data that can train the AI to produce superior outputs. OTAs (online travel agencies like Expedia and Booking.com) have an advantage here with massive amounts of information about their customers and how people plan and book trips.

Small agile teams have an opportunity to adopt this technology and rapidly scale up before the big guys can effectively implement or risk disrupting their existing business. If consumers can use an AI tool to search all airlines instantly, why does an OTA need to be in the loop?

The OTAs are built on recommending what the masses want, but the whole point of AI is that the answer is now customized to the individual. An average ranking of 8 for a hotel doesn’t apply to a specific person whose main priority is to be close to a lesser-known local surf spot an AI surfaced for them.

To try to drive utilization, startup players have to get more creative with product design. Getaiway and Roam Around have focused specifically on itineraries, with the latter simplifying the user input down to one word — type in a place and get an itinerary, then refine from there. Matador says it plans to include influencer videos from its wide range of content creators in the GuideGeek messaging interface.

Upgrading AI-powered travel products to first class by Walter Thompson originally published on TechCrunch

VCs joining the climate race should scare the daylights out of you

Venture capital, as an asset class, is an industry of short-term wins. Most funds have a 10-year cycle: two years of initial investments; then two to three years of company building and follow-on investments; after that, five or six years of thumb-twiddling and waiting for the ship to come in, and maybe placing a last bet on the most promising companies in the fund portfolio.

This model forms part of a VC’s investment thesis; it also includes where the leads for potential investment come from (known as “sourcing”), along with the investment stage (pre-seed, seed, Series A, etc.), and any geographic or vertical or market limitations to the fund. The investment cycle has remained remarkably consistent over the history of venture capital: Wait 10 years, and the funds invested have (hopefully) multiplied.

 

The upshot of these investment cycles is that venture capital is best positioned to invest in the type of companies that are in a hot market, with predictably high user and revenue growth, and a somewhat obvious liquidity event outcome, whether through acquisition or IPO. All of this is why subscription-based companies — and in particular cloud-based subscription software companies — are so well-suited to VC investment. B2B SaaS companies that know the market, know how to leverage data-driven growth and have a clear customer acquisition funnel are as close as it gets to a safe bet in venture.

Another “sure-fire bet” for venture capitalists is when the future can be predicted, even a little bit. Big shifts in legislation is one example: Build software that helps companies stay in compliance with certain laws likely to pass soon, and you know you have a guaranteed customer base. Another sure-fire bet with a guaranteed user base: Watching the population curve and realizing there are a lot of people about to retire and need support. None of this is new; VC firms have built specialized theses around these types of huge moves.

A recent McKinsey report suggests that “investments in climate technology are still increasing, defying the headwinds that affected most capital markets.”

Both VCs and founders alike love to talk about how they want to make the world a better place. That’s lovely and all, and it may even be true for some of them. But make no mistake: Venture capital is an asset class like any other, and general partners have a fiduciary responsibility to their limited partners. Everyone may agree that it’s lovely to make the world better, but unless the investors start to see a return on their investments, that firehose of investment very quickly gets reduced to a trickle.

VCs joining the climate race should scare the daylights out of you by Haje Jan Kamps originally published on TechCrunch