Archer buys an airport, Ramp’s huge raise, RIP KitKat, Bezos returns to the C-Suite, and more | E2210
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this packed episode of This Week in Startups, Jason returns from his extensive trip to the Middle East and Japan, sharing insights from launching Founder University programs in both regions. (02:17) He discusses the unique entrepreneurial landscapes he encountered, from construction and fintech booming in MENA to Japan's focus on domestic markets. The show covers major startup news including Ramp's massive $300 million funding round at a $32 billion valuation, the ongoing challenges facing Dropbox with declining revenue, and Jeff Bezos's surprising return as co-CEO of a new venture called Project Prometheus. (62:42) The hosts also dive into the implications of AI on job displacement, the recent Waymo incident involving a beloved San Francisco bodega cat, and provide strategic advice for founders navigating the current high-growth funding environment.
- Core themes include global startup ecosystems, AI's impact on employment, autonomous vehicle adoption, and the evolving funding landscape for startups
Speakers
Jason Calacanis
Jason Calacanis is a prominent angel investor, entrepreneur, and host of This Week in Startups podcast. He's the founder of Launch Fund and Founder University, an accelerator program that provides $25,000 checks and comprehensive startup education to early-stage entrepreneurs. Jason has invested in companies like Uber and Robinhood, and recently expanded Founder University internationally to Saudi Arabia and Japan.
Alex Wilhelm
Alex Wilhelm is a technology journalist and co-host of This Week in Startups. He previously worked at TechCrunch and is known for his sharp analysis of startup funding trends and market dynamics. Alex writes the newsletter "Cautious Optimism" and brings a critical perspective to evaluating startup valuations and growth metrics.
Key Takeaways
Adapt Your Product to Local Market Needs
Jason's experience launching Founder University in different regions revealed that successful expansion requires significant curriculum adaptation. (06:25) In the Middle East, entrepreneurs needed more help with design and developer recruitment, while Japanese founders excelled at UX but focused too narrowly on domestic markets. The key insight is that what works in Silicon Valley may not translate directly to other markets - successful founders must understand and adapt to local strengths, weaknesses, and opportunities rather than applying a one-size-fits-all approach.
Raise Capital Into Your Growth Momentum
Jason emphasizes that high-growth companies should raise multiple rounds per year to capitalize on their momentum, even if they don't need the money immediately. (58:57) His strategy involves raising at increasing valuations as revenue multiples justify higher prices - if you're doubling revenue every few months, you should raise again at a higher multiple. This approach builds a significant war chest that protects against future growth slowdowns and enables aggressive expansion during peak performance periods.
Focus on Construction and Fintech in Emerging Markets
The Middle East presents massive opportunities in two specific sectors: construction technology and financial technology. (07:02) These regions are investing heavily in infrastructure development, creating demand for construction marketplaces, procurement tools, and project financing solutions. Additionally, the underdeveloped financial services sector creates opportunities for fintech startups to build foundational payment, lending, and financial management tools that are already mature in Western markets.
AI Advantage Comes from Real-World Integration
The discussion of Project Prometheus and Periodic Labs highlights that the next wave of AI innovation will come from bridging digital intelligence with physical world applications. (62:43) Companies that can successfully integrate AI with laboratory work, manufacturing, robotics, and other physical processes will have significant competitive advantages. This requires moving beyond text-based training to incorporating real-world data and feedback loops from actual physical experiments and operations.
Prepare for Quiet Hiring Freezes Due to AI
Jason identifies a trend of "quiet hiring freezes" where companies are not openly announcing reduced hiring but are slowing recruitment in anticipation of AI-driven productivity gains. (48:15) Smart professionals should focus on becoming "superhuman" by mastering AI tools that make them significantly more productive. The opportunity exists for individuals and startups to create tools that amplify human capabilities rather than simply replace workers, but this requires proactive skill development and strategic thinking about how AI enhances rather than threatens your role.
Statistics & Facts
- Ramp doubled its revenue to $1 billion over the last year and is growing 153% year-over-year, which is 16.2 times faster than the average public SaaS company. (16:03) Alex notes this represents actual trailing revenue rather than a run rate metric, making it particularly impressive for a corporate expense and procurement platform.
- Dropbox experienced negative growth with revenue declining 0.7% to $634.4 million compared to the same period last year, with paid users dropping from 18.24 million to 18.07 million. (25:40) This decline illustrates how file storage companies struggle when their core service becomes a feature of larger productivity suites.
- Bitcoin reached a peak of $125,008 according to Reuters, but has since fallen to under $90,000, representing a significant correction from its highs following Trump's crypto-friendly campaign promises. (53:11) The volatility correlates with broader market sentiment about AI investments and economic uncertainty.
