Hey Founder, here are the latest tech news and insights:
- The AI Sputnik moment shakes AI stocks
- OpenAI launched the first AI agent
- TikTok gone from U.S. stores
- Google adds Gemini to Workspace plans
- A16z quits London for U.S. crypto market
- Seed round size matters — a lot
- UK founders no longer top-paid in Europe
- What YC wants in startups?
AI’S SPUTNIK MOMENT THAT SPARKS AI STOCK SELLOFF
DeepSeek, a Chinese AI startup just over a year old, has stirred awe in Silicon Valley after demonstrating AI models that offer comparable performance to the world’s best chatbots at seemingly a fraction of their development cost.
The latest AI model of DeepSeek is widely seen as competitive with those of OpenAI and Meta Platforms Inc. Quant-fund chief Liang Wenfeng founded the open-sourced product and is now at the top of Apple Inc.’s App Store rankings. It offers licenses for individuals interested in developing chatbots using the technology to build on them at a price well below what OpenAI charges for similar access.
Concerns have immediately emerged that it could disrupt the current AI business model, which relies on high-end chips and extensive computing power and energy.
Nvidia has been the biggest beneficiary of the influx in AI spending because they design the technology's semiconductors. While that heavy spending looks poised to continue, investors may grow wary of rewarding companies that aren’t showing a sufficient return on the investment. Nvidia shares tumbled 17% Monday, the most significant drop since March 2020, erasing $589 billion from the company’s market capitalization.
The AI war has started, which will eventually be great for end customers.
OPENAI RELEASED ITS FIRST AI AGENT
OpenAI released a “research preview” of an AI agent called Operator that can “go to the web to perform tasks for you,” according to a blog post. “Using its own browser, it can look at a webpage and interact with it by typing, clicking, and scrolling,” OpenAI says. It’s launching first in the US for subscribers of OpenAI’s $200 per month ChatGPT Pro tier.
Operator relies a “Computer-Using Agent” model that combines GPT-4o’s vision capabilities with “advanced reasoning through reinforcement learning” to be able to interact with GUIs, OpenAI says. “Operator can ‘see’ (through screenshots) and ‘interact’ (using all the actions a mouse and keyboard allow) with a browser, enabling it to take action on the web without requiring custom API integrations,” according to OpenAI.
OpenAI says that it’s collaborating with companies such as DoorDash, Instacart, OpenTable, Priceline, StubHub, Thumbtack, Uber so that Operator “addresses real-world needs while respecting established norms.”
TIKTOK HAS DISAPPEARED FROM U.S. STORES
Apple and Google removed TikTok from their app, complying with a law requiring China’s ByteDance to divest the social app or see it face an effective ban in the U.S.
The Apple App Store and the Google Play store’s removal of TikTok means people in the U.S. can no longer download the popular short-form video app on their devices. The app’s delisting comes after the Supreme Court unanimously upheld the Protecting Americans from Foreign Adversary Controlled Applications Act, which President Biden signed in April 2024.
Late, TikTok began restoring its services on Sunday after President-elect Donald Trump said he would revive the app's access in the U.S. when he returns to power on Monday.
GOOGLE ADDS GEMINI TO WORKSPACE PLANS AND RAISES PRICES
Google is now including Gemini AI in basic Workspace plans and slightly increasing the price. Previously, users had to pay an extra $20–30 per month for Gemini features in Gmail, Docs, and other Google apps. Now, Business Standard with Gemini costs $14/month (down from $32).
The integration brings a Gemini side panel to Gmail and Drive, AI-powered text assistance, smart replies, summaries, image creation, improved autofill in Sheets, and access to Gemini Advanced with the 1.5 Pro model.
Google says AI is now essential for work, so it no longer makes sense to charge separately. This move also puts pressure on competitors who still charge extra for AI features.
New pricing is already live for new customers and will roll out to existing users starting March 17, 2025.
А16Z TO CLOSE LONDON OFFICE TO FOCUS ON THE U.S. CRYPTO SECTOR
Andreessen Horowitz is shutting down its London office and retreating from its ambitious UK expansion plans, redirecting its focus back to the U.S. crypto sector in the wake of Donald Trump's election victory.
The Silicon Valley VCl firm initially made waves in 2023 by establishing its first international office in London, aiming to capitalize on the UK's crypto ecosystem while U.S. regulators tightened their grip on digital assets.
According to the Financial Times, the firm has now communicated to British entrepreneurs and policymakers that it will be significantly reducing both its financial commitments and engagement in the region.
THE SIZE OF YOUR SEED ROUND MATTERS A LOT
Image credit: Adam Shuaib’s LinkedIn
Adam Shuaib, partner at Episodes 1 Ventures, shared the research data on seed funding across the EU and here is what they found:
- We looked at ~16,000 early-stage startups across the EU and saw that seed funding of $2.25m maximising your chances of raising a Series-A round. The effect was fairly consistent across sectors.
- Seed rounds exceeding $2.5m showed notable diminishing returns. Sometimes supply vs demand factors mean a team can raise more than anticipated, but the additional cash isn’t always beneficial.
- Companies securing less than $1m in seed funding were less than half as likely to reach Series-A.
- Raising seed funding within a year of incorporating doubles your chances of reaching Series-A relative to companies waiting 3+ years to raise. Speed helps.
- Interestingly, companies completing separate pre-seed and seed funding rounds were more likely to reach Series-A and Series-B than those skipping pre-seed and only raising a seed (holding total cash raised constant).
UK FOUNDERS ARE NO LONGER THE BEST-PAID IN EUROPE
Venture fund Creandum analyzed founder salaries across Europe and found that in 2024, they increased after a period of budget cuts and strict spending control.
The report is based on a survey of 688 European founders.
Key insights:
- Salaries are up: French founders saw the biggest jump, with average salaries rising 60% to €124,000, surpassing UK founders, who now earn €107,000 on average.
- Bonuses: In 2024, 23% of founders received bonuses, with the highest reaching €680,000. Bonuses were most common at the Series B stage and in bootstrapped companies.
- Salaries by funding stage: Founder salaries increase with each funding round — from a median of €85,000 at Seed to €159,000 at Series B. However, equity stakes shrink from 33% at pre-seed to 11% at Series B.
- Salaries by role: CPOs (Chief Product Officers) earned the highest average salary of €116,000, reflecting the growing importance of product roles, especially in the AI era.
WHAT STARTUPS IS Y COMBINATOR LOOKING FOR?
Everyone keeps an eye on Y Combinator, the world’s top accelerator. YC has a Requests for Startups page where they highlight the types of startups they’re most interested in. They review all applications, but these areas get special attention.
Some trends:
- In 2024, YC was interested in cancer treatment, military tech, and climate tech — but these were removed by Winter 2025.
In the latest Spring 2025 update, they dropped stablecoins, fintech, US manufacturing, and space startups.
YC's priorities shift fast. The big question is — are these areas lacking strong applications, or is investor demand fading? What do you think?Spring 2025 Requests for Startups:
- A Secure AI App Store
- Datacenters
- Compliance and Audit
- DocuSign 2.0
- Browser & Computer Automation
- AI Personal Staff for Everyone
- Devtools for AI Agents
- The Future of Software Engineering
- AI Commercial Open Source Software (AICOSS)
- AI Coding Agents for Hardware-Optimized Code
- B2A: Software Where the Customers Will All Be Agents
- Vertical AI Agents
- Startup Founders with Systems Programming Expertise
- Inference AI Infrastructure in the World of Test-Time Compute
Y COMBINATOR
Apply until Feb 11
Y Combinator is accepting applications for the Spring 2025 Batch, which runs from April to June in San Francisco. The accelerator provides seed funding, mentorship, and a three-month intensive program designed to help early-stage startups scale.
Accepted startups receive funding immediately and work closely with YC General Partners — experienced founders who offer hands-on guidance. The program features weekly meetups, exclusive talks from top entrepreneurs, and a strong support network. Founders become part of YC’s powerful alumni community, gaining access to investors and ongoing support even after the program ends.
SKYDECK ACCELERATOR
Apply until Feb 14
Berkeley SkyDeck is a leading global accelerator and innovation hub powered by UC Berkeley. The program supports startups with world-class mentorship, access to top-tier investors, and a $200,000 investment through the Berkeley SkyDeck Fund. Founders benefit from exclusive resources, co-working space in the Bay Area, and connections to UC Berkeley’s vast research network. With a strong focus on scaling high-impact ventures, SkyDeck provides the tools and community to accelerate growth and success.
RAISE IQ ACCELERATOR
Apply Anytime
Raise iQ is a venture studio accelerator designed for professionals and entrepreneurs with deep industry expertise, fresh takes on traditional sectors, and innovative B2B SaaS ideas. The 18-month program provides rigorous idea validation, $500,000 in development services through DevSquad, up to $500,000 in perks from partners like Google Cloud and AWS, and strategic support to help founders break even and build sustainable, self-sufficient companies.
Written by Anna Lebedeva, the co-founder at The Top Voices and a startup ecosystem enthusiast.
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