https://www.listennotes.com/e/4227332f8e1040f489f8f6921f79bbdc

You're watching TVP and today is Wednesday, June 11, 2025. We are live from the Palace of Party Rounds. Oh my God. It's YC Demo Day. Welcome to our YC Demo Day stream. That is insane. We have Gary Tan joining us. Wow, you absolutely destroyed my laptop. That is insane. We brought lots of party favors. We brought lots of activities for when we talk to founders who are doing extremely amazing things. If that's going off every time the founder hits A million dollars in ARR or a sign the term sheet. I think we are going to be up to our necks in confetti. We got a lot of confetti. We got some gifts we're going to be giving out. We got some surprise gifts, some hats. We're going to take you all through it. Gary Tan, welcome to the stream. Here he is. What's going on? The president of Y Combinator, Gary Tan. Good to see you. Great to see you all. There's a line around the block still. Is that right? People are pumped. Oh my God, yeah. It's absolutely slammed. Take us through. What are you seeing? How's this This one going, what's actually changed? Because we're in a different location. Yeah, we're literally-- Break it all down. In the middle of, this is like our HQ, you know? This is, you know, we got the spring batch together. This is the first spring batch that we've ever done. So it's X 25 now? Yeah, Paul Graham doesn't like X, so we're slowly replacing it with spring. Spring, okay. Yeah, there we go. You know, when you create a place like this, I think you get to dictate little things like, you know, not liking X. Yeah, so yeah, so we got to write out spring. Okay. You know, I don't know. What do you think it should be? It could be P. Maybe if it's not X, it's prontons. Do we have to do mathematical notation for this? Maybe. Yeah. We have the Y Combinator algorithm. That's a different algorithm to define the different seasons. I think just forward, you know, winter, spring, summer, fall. Yeah. Well, I mean, the energy from the founders is really electric, honestly, is insane. Fantastic. Like downstairs, we got a, well, The fun thing about hosting all of the investors in our house is that I got a whole whose house, our house, chan downstairs. So yeah, we got the- Give us an overview of the, we heard a little bit of your talk earlier, but give us kind of a breakdown of how you introduced today. Yeah, absolutely. I mean, dude, it's like 90% AI, it's about 10%, 11% hard tech, which is awesome. And then the really crazy stat is, you know, how the last four batches, about the last year, You know, the batch itself as a whole has been growing revenue by 10%. This time it's 12. There we go. So we're actually inflecting up, and that's what you would expect. We're in the middle of the age of intelligence. Six months ago, nine months ago, the models were 90 IQ. Then they were 110. Now they're about 130. We're sort of entering super intelligence zone. 90 IQ incoming. Yeah, that's right. 1,000, I don't even want to talk to that. But yeah, probably very valuable. I thought Sam's essay yesterday was very prescient in that. Like that's sort of the silver lining. Everyone's sort of worried, you know, what's gonna happen to the jobs. To me, what's gonna happen is the exact, I mean, it's actually an opening, right? The wild stat that we're seeing is actually the number of 18 to 22 year olds applying to YC and getting in is up 110% year on year, right? So, you know. Is that driven by people liking to drop out of college or skipping college entirely? Is that because they're viewing college as kind of like, I mean, there was always a meme about like, oh, what will you put YC in the education section of your LinkedIn? Now it's like, oh wait, no, YC could actually be the replacement. Is that intentional? Well, the extreme meme here that is interesting to think about, like, I don't believe this, but the memes among the 18 to 22 year olds in particular is, this might be the last time you can start businesses. Oh, interesting. Because, you know, once super intelligence hits, then, you know, the motes that, you know, the businesses that will exist will sort of ensconce, like, the seven powers of the motes out there. Sure, sure, sure. And then it'll be reasonably efficient. Yeah, exactly. They just reach their terminal value immediately and maintain it forever. So you're trying to get network effects, you're trying to build, we're trying to get brand, you're trying to get a cornered resource. Sure, sure, sure. And then the wildest thing here is that, you know, this perfect, someone was telling me yesterday, right now if you look at college grads, the rate of unemployment for CS grads is actually 2x that of art history majors. I have not looked this up yet. Yeah, yeah, I heard that. Everybody's been quoting that. We've heard that too. We've talked about it. There might just be something crazy going on with art history majors. They found some hack and they're all getting employed. It's full employment for them. Very interesting. Question on the AI side, how are the companies feeling about the current battle between little tech and big tech? We saw with WWDC, it feels like Apple's kind of retreating from some territory. We could be seeing more operating opportunities for developers for like mobile apps. We could see another mobile app boom because Apple's saying, hey, look, maybe we're not the company to build every single AI experience on the iPhone. We're seeing new hardware maybe come from open AI. There's different stuff going on with Open source, what's the interplay between the average YC company and the Mag 7 right now? Oh, I mean, the good thing is we still have, you know, we have net neutrality. So, and you know, that thing we've, you know, we have seven companies in the, you know, mega tech world. But you know what? Like anyone can just put something on the internet and they get distribution, right? So I think that, you know, the most important thing right now that I think all of us should really be considering is, we need platform neutrality, right? The second that today you open your Siri and you don't get to choose, do I want perplexity? Do I want ChatGPT on there? No, this is actually the next unfolding that needs to happen. We actually need the platforms to allow other people to enter. But if we do that, we can actually have tens of thousands or hundreds of thousands of companies, each of which can get to $1,000,000,000 net revenue, and like you could do it probably with 10 people, right? So if you link up these two super mega trends, like that's the future that we want to live in, right? Like you can be 18 to 22, you don't necessarily have to go in, like the credential matters a lot less. You know what matters now? It matters your agency and your taste, right? And so, and you don't have to like go and get anyone's permission. Future of LLMs, you can actually get a better tutor from an LLM than you could from at times working under somebody at some big company who would maybe explain, here's how you make a financial model for a software company. But now you can just talk enough with chatbot that you can probably figure it out even better than having like a mentor. Yeah, I want to ask about applying to YC. Have you noticed that the apps are becoming more GPT driven? Are people using AI to write their apps? Do you recommend against that? What do you think? I mean, if anything, like I think the best apps In the past, we might say, oh, this is AI slop. I think we're, because the models are now smart enough, like my writing process, for instance, has totally changed at this point. Like, I am, you're actually able to come up with better ideas, I think. Yeah, totally. I would rather people actually prompt to get like all of the ideas out there. You know, one of the things I've been using in ChatGPT lately is like, Give me ten options for different concepts or ideas that might fit here. And then what I'm doing is I'm using my prompting to do that. And then on the back end, it'll give me like ten things, five of them make no sense, two or three of them in my brain, I'm like, oh, I didn't think about that. That actually is a useful thing that I can put in with these other concepts that are in my head. And so I think it's actually, the computer is a bicycle for the mind. If you can prompt really, really well, You're using, I mean, you have to treat it like a vehicle, right? It is not a destination of its own. It's actually, you know, this is like the self-driving car for the mind. I mean, even just treating it like a coworker. All that matters is the end output. And if you're working on any type of project, not working with a smart collaborator is going to lead to a worse output. Yeah, condensing down these ideas, because I've read a lot of apps where it's like, wow, there's actually some really incredible KPIs in here, but you buried it in paragraphs of exposition that were completely unnecessary. And I know that the people that are actually reviewing the YC apps are not gonna read this far. And so just having it as a co-pilot seems like a really, really good idea. How have you and the other group partners pushed to guide the batch around reporting on revenue? There's a lot of conversation around what is ARR. It's this flexible definition. There's obviously a lot of pressure for every founder coming into Demo Day to show results. How do you guys kind of guide that? Yeah, absolutely. I mean, what we'd like people to do is put contracted ARR if it is, and then if it has an opt-out clause where people can sort of get out, they should just have a little star on it. And it's like, opt out at 30 days or whatever. I think it is very, very important that founders are Just don't engage in securities fraud. Yeah, that's like kind of a basic thing, right? So, I think that it is a great, the amazing thing about the tech today is like the demos are so impressive that people are willing to take a big chance in ways that they've never been able to. Big companies are signing up for big deals. And yeah, they obviously want some flexibility, but being really clear about that. I mean, these are non-gaap metrics. That's right. There is some gray area. Are we going to define new metrics as we move forward? Are you seeing companies able to pivot more times within a single batch and just iterate faster and better out bits. Because historically it wasn't unreasonable for a company to pivot a few times to get to something great and maybe they only have two weeks at the end to really sprint and show progress. Now I could imagine certain companies like really, really, really pushing it. Have you seen that at all? Yeah, I mean, something like 30% of the companies change their idea during the batch and that's actually great. I mean, it means that as you're researching and building. Yeah. And I think that that's always been true. I mean, some of the biggest companies end up being, you know, literally pivots from like two, three weeks ago. Yeah. And then I think that, you know, people might say, oh, that, you know, that kind of sucks or, you know, why is that? I mean, I think it's good news. The good news is like, you know, you can just do things. Yeah. Yeah. The good news is like, so when I think of the YC mantras, I think build something people want, talk to your customers, Is you can just do things a third that we're adding. Is that important to have that volition, that agency? It's the distillation of agency, right? I think so, yeah. I mean, a lot of it actually, I think the most important thing that I feel like everyone has to learn the hard way is to learn, you know, the sound of your own voice. Sure. To say, you know, not to get all bicameral mind about it. I love that. That's sort of where we're at, actually. And do it. Well, no, I mean, If you read PG's old essays, one of the things that really jumps out at me is to what degree your childhood, your schooling, he has so many essays about what high school is like, being a nerd, all these things really spoke to me and that the process of becoming actually a founder is actually a journey inward to actually learn the sound of your own voice, that you can make your own way, you can have agency, you know, just because, I mean, actually by definition, the startups that create new categories require a level of courage that like people have to find within themselves, actually. You have to say, actually, you know what, like I know the Wall Street Journal says that, and you know, the hater decel journalists say this, and all this, you know, you have to actually separate yourself from the default view of how the world works, and then you're actually trying to divine secret knowledge. by going into the markets, going to talk to people that have never, you know, even touched ChatGPT yet, right? Like they don't know the rev. It's like that meme where you're, you know, you're the tech guy, like in the corner. Yeah. And then like everyone's dancing and they just don't know. They don't like that's where we're at still. Like it won't be like that for another year or two. But like for now, that's still true. You go into any business in the world, they don't know this revolution is about to happen to them. Crazy. And we get to create it. Yeah, yeah, yeah. Last demo day, we talked to a company that was doing AI voice interactions to help the elderly process Medicare receipts essentially. And they discovered that the elderly were talking to their chatbots for like 3 hours. Yeah. And that's just something that like you might you might be able to predict intuitively, but I thought it was just a very a very funny, like discovery that only happens from actually trying to build in that in that market with the latest and greatest technology. And that's what I love about YC Demo Day. What's your latest thing on batch sizes? Or is that, are we staying, you know, where we're at? The high level is like we want as much prosperity in the world as possible. You know, Brian Chesky is on my board. Okay. You know, Paul Graham and Jessica Livingston, Carolyn LevY, the board has given me my directives. It's, you know what? This is the tree of prosperity. Let's have the tree of prosperity grow. But I think that YC fundamentally is the managed marketplace. You look at an Airbnb, I'm still bullish on Airbnb and that you look at the amount of space in the world. The amount of space that has been listed on Airbnb is still a tiny fraction of what it could be. And what does that unlock? It unlocks new experiences, travel like a human, all these things. It's $100 billion company from nothing. And I think that the same thing is about to happen to innovation and venture. But we have to do it thoughtfully, right? Like, you know, we're at demo day here. We have more than a thousand of the top investors in the world all congregated here, right? We have a thousand people in this building. That's amazing. Incredible. You know, we need to grow them thoughtfully. Like, we need-- you know, what I need is I need YC to continue to provide returns, right? And, you know, can't comment on, you know, the rumors about scale this week, but like, we need a lot more things like that. And we're getting it. Like, this is sort of uniquely the community where that happens. Talk to us about the two new partners that were added to the YC Oh yeah, there's three actually. Oh, three. Yeah, sorry. Yeah. Andrew Miklas and John Shu actually. Okay, cool. Sorry. I almost announced. No, yeah, Tyler too. Okay. Yeah, that's Tyler too. I mean, all of them created companies that exited for, you know, hundreds of millions to, you know, PagerDuty as, you know, a public company, north of a billion. That's remarkable. Those are exactly the kind of partners that we want at YC. It's like they've been there and they've done that. So roughly how big is the partnership now? It's a 15 partners total. 15 partners. That's great. Yeah. So you can still keep the actual group sizes fairly small within the batch. I mean, that's the main, you can just basically guess at what the batch size will be because each partner can do 10 to 25 companies, depending on how hard they want to work. But I don't think it's a numbers game. I think it's, we want to fund all the really, really good founders. And I feel a little bit embarrassed about, we're accepting companies at a 0.8% rate right now. Wow. Right. And so, you know, I think that we're behind the eight ball, actually. Like, you know, I feel really good about this. Like, we're gonna keep growing what we got here. But I also need to grow the partnership, and then we need to fund better and better companies. And then, you know, this is a 10, 20, 50, 100 year thing. Like, we're trying to build Y Combinator into a multi-hundred year institution. And we need it. Have you had any companies go through this batch and decide not to raise additional capital at this point? point because they're just making so much revenue that they have a need for. I mean, famously, Tom funded Axiom last batch. Yeah, yeah, yeah. And they're doing hundreds of millions of dollars in pure profit. So I saw that and I was like trying to look back through our stream and like, did we, I mean, crypto's wild man. Yeah, wild west. It's a wild west. That is insane. Yeah. Well, we'll let you get back to it. Thank you so much for coming on the stream. Thanks for having me. As always, my pleasure. It's an honor. Yeah. Have fun out there. Thanks. Great. Well, we will be moving into interviews with founders and VCs who are coming on the show, who are here at YC Demo Day. Stay Morgan. Stay Morgan. While we bring in the first-- oh, we're ready. Let's do it. Got it. Let's do it. Fantastic. I thought we were gonna have to do news. What up? What up? Welcome to the show. I'm John, welcome. Nice to meet you. How you doing? What's going on? Break it down for us. How we doing? Break it down for us. How's demo day going? Grab a water. Introduce yourselves. Introduce your company, please. All right. Hold up the microphone a little bit. Both of you guys. All right. Good. Ken. Cool. CEO of Kaizen. Nice. Michael, CTO. Okay. You guys pitched like five minutes ago. Yeah, 10 minutes ago. We came right down here to spread the word. Yeah. How are the nerves? You guys, was that like a walk in the park? Yeah, it was fun. It was fun. It was- you- done it at alumni, and then probably like three to five full partnership pitches before, right? Yes. Okay. So, I mean, I probably said this 100 times, 1,000 times almost. Well, you guys say it one more time. Give us the high level. You don't have to give us the whole pitch, but break it down. All right, so Kaizen helps developers instantly integrate into websites without APIs. You know, we work with companies across logistics, healthcare, and financial services. to integrate to a wide variety of legacy portals. Very cool. Talk to me about how you're doing that. Is there MCP involved? Are you kind of using AI and LLMs to read the HTML, kind of reverse engineer an API from the front end? What's going on? 100%. The latter of what you said. Cool. Computer use has changed the game on a lot of this stuff. You know, you think about it, hey, there's such a small subset of software that has APIs that people can integrate with, build products on top of. But now with computer use, computers can do anything. Cool. Anything available on the internet. And that's what we help companies do. We get reactions to to O3 Pro? Have you tested it yet? Is it improving things or do you build on open source? Like, what do you like? What are you excited about in the AI race at the foundation model level? Yeah, I mean, we love using all of them. We're friends. We're Switzerland, right? Google, Google, Google. We feel the same way. We'll have them all on the show. You're like, please, let the fox in the henhouse. We're Switzerland. We're Switzerland. Yeah, I mean, truly, like, different models are different for different things, you know, clicking on an item on the page, like we like the computer use model for anthropic for that. Okay, cool. Like pulling data from a very large table. Gemini. Oh, it's a little bit bigger context. Exactly. 100. So, I mean, like, our approach, we have tracked all this away from the end users. They don't want to think about it. Yeah, yeah. It just happened. So walk me through some of those use cases. Like, what's the first customer that you've had that has been like, this solved my problem. This is amazing. Walk me through a very concrete demo. One of our favorite customers to talk about is, you know, they're a voice agent for hotels. So in the Rio, the hotel in Vegas, you know, you call down, you say, hey, I want a burger up to my room, or I don't know what kind of fancy stuff you all order, but yeah, you'll talk to a voice agent. And the voice agent will take your request, right? And then they'll use it. Always like calling to get, like, to last night, we were staying at the Rosewood, of course. Of course. Surprise, not the rate. We called the get toothpaste and we're like, it's like, you know, you gotta, I don't even wanna wait, like, you know, I don't know, 20 seconds while it rings and oh, let me transfer you here and all that stuff. You should just be able to pick up toothpaste please. And it just kind of comes. Exactly. So how does your service integrate with that experience? 'Cause I know I pick up the phone, I'm talking to a voice agent. I imagine you're using voice APIs to actually mediate that, but then you're designing that interaction, right? Or rather our customer is traversing, maybe I wanna shout them out. They are a voice agent. More hotels. Okay, great. And then they use us to write the data back into the property management system, create that service order. So they a toothpaste goes right up to your room. Yeah, yeah, yeah. Instead of talking to a person and they're trying to understand you, all this stuff, it just happens instantly. What were you guys doing before this? We were, I was head of engineering at a company called TruckSmarter. I've worked with small trucking companies my whole career. Okay. Love 'em. Great big truck guy. Big truck guy. But lots of experience working with legacy systems, web forums. Yeah, exactly. That's where it comes from. Like every shipper in the United States It's a completely different website. I must have written dozens of these. I managed teams, I wrote hundreds. Probably a lot of web scraping. Exactly. And we're building Kaizen so that no one has to do that ever again. I love it. Here we go. Talk to us about the metrics. Did you share a headline number of users? ARR, something to get the investors excited today? Yeah, I mean, we're in the hundreds of thousands of dollars of ARR. We started working on this. Yeah, let's blow. We got all the acronyms, all this, you know, what the A16Z. Yeah. Like, did you, did you, oh yeah, you're tracking it. You guys, you guys got term sheets yet? Yes. We're closed around. Yeah, the first term sheet of the TBV and Waxy demo day. Congratulations. I love this. These things are spreading so much debris across the internet. Anyway, thanks for playing along with us. Guys, this is awesome. Super excited for you. That's awesome. What's next on the build out? How big is the team? I imagine you're raising money, you're gonna scale that, or are you building like a much smaller team? How are you thinking about that? Yeah, and this is a massive opportunity and we're excited to sprint after it. We actually have an employee right now. One? Yeah, nice. Crazy enough to join us during the back. Cool. The 500K in the bank account. That's great. And we're doing a work trial. I love it. Tomorrow. Tomorrow. We have the money, we gotta go spend it, and then we're gonna build a big business. Fantastic. We're rooting for you. Amazing, guys. Congrats. Thanks so much for coming on. Yeah. Good luck. Thank you. Good luck, my man. Good sEaS, Joey. Yeah. Fantastic. These party poppers are a big problem. Like, it basically was spraying, like, you know, little shards of paper everywhere. But I think it was doing it. We're not gonna stop. I think it. As long as it didn't go in my Red Bull, I think we're good. Let's. Let's ideally bring in the next person. You want to come on? Let's let's come on. Okay, we got some people coming into the stream. The YC demo day stream 2025. Welcome to the stream. Come on, come on and sit down. We got a little excited. Hey, how you doing? Hey, how you doing? What's going on? All right. Hey, congrats. What's happening? Thank you. So we've emailed or chatted before, right? Yes, yes. Back in the StackShare days. So now people don't know your history, by the way. They don't. I was talking to a bunch of founders. They were like, What? He did what? Crazy, tell them. I've been around, around Silicon Valley for over a decade. YC 2012. My batch. 2012. Let's go. Good times. But we're here to talk about your batch. What are you building? Introduce yourselves. All right, so we are building Cursor for DevOps. Basically the challenge right now is you're using Cursor and it's like this futuristic, agentic experience, right? And then as soon as you leave the code, you pull the microphone up a little bit. You're back in the past. Okay. And so you're dealing with broken CI builds, you're dealing with exceptions, you're dealing with outages, like service outages from PagerDuty. All of those things are manual. So what we're doing is we're bringing AI agents to all of your developer tools outside of the code editor. Okay. Walk me through how that actually works because in Cursor, I'm in the IDE, are you puppeteering the AWS dev interface? Or are you operating at a lower level? What's the actual interfaces? Are you Rune Pilled? Is this like a text, is the universal interface play? Yeah. So basically you land on a developer homepage and you see all of your tasks from across those tools. So like exceptions from Sentry. And then you see an auto fix button for each of those tasks. So it's like a priority inbox that prioritizes everything across those developer tools and then gives you one-click actions to How much of what you're doing requires just building on top of an API for something like PagerDuty or actually doing a deal with them to integrate at a deeper level or just puppeteering and computer use and not even not they're never none the wiser. Yeah. So we're actually doing both. So some of the dev tools haven't built out a lot of agentic features. So we're building on top of their API. Sure, sure, sure. And then other partners, like one of our first integrations is with Sentry. Okay. And we integrate with Century. Yeah, okay. I remember Century. Yeah, Copeland is actually here. Oh, cool. Did you guys come in with this idea? Did you have to iterate to it? What did that look like? Yeah. Yeah, we did, yeah. We came in with it. So before this, Daniel here, at Netflix, I was on the team that built the internal developer portal, which was the most used engineering tool at Netflix. That helped accelerate the company. You probably heard that they ship ads and live streaming and all these things, and that really helped the organization move forward. Everyone thought that they were gonna have partner with Microsoft and I think they wound up doing it internally because they were so fast, right? Yeah, that's a great narrative about Netflix. Exactly, right? So it really helped accelerate the team and that had no AI, no AI in it, right? And you can squeeze all that productivity. So then Jonas and I were chatting and we're like, wait, what if we did this developer first? We did it with AI. How productive could you make engineers? You just go from cursor to star sling and you're just talking to agents. You're just slinging. Slnging. Exactly. Slnging. What is the go-to-market motion? Cursor obviously just goes bottoms up directly to the dev. Is this something that a DevOps engineer can bring in or do you need to go through a CTO, get approval before you do an enterprise deal? Any developer can actually just sign up, connect your account and start using it. The beautiful part is this isn't for DevOps engineers. This is actually for all the engineers that have to touch those tools. And so it's like pretty much every engineer at a modern Software Engineering Org can just sign up on their own without talking to anyone else and start using the product. Very cool. How's the progress? Are you live? Are you growing? What metrics did you share with the Demo Day crew today? Yes. So less than a month ago we launched. Yes. And we have over 400 companies that have signed up for the private beta. Wow. Including Grand Central. Snowflakes. Congratulations. Golden Sachs. Yeah. Golden, yeah. That's giving it up for big pharma. Agents. Everyone wants agents, yes. Yeah, they do. That's crazy. Where are you guys going from here? Did you close the round already? Yes, we have closed it. Oh, there we go. Yes, yes. We were happy to give you these ramp-ups. Oh, awesome. Thank you guys. We're going to put the money in ramp. Yeah, yeah, exactly. Awesome. That's incredible. What's next for the company? You guys hiring, scaling? We're hiring very slowly. How big is the company right now? It's just the two of us. Just the two of you. Yes. Okay, the old school YC. Yeah, this is the way it was. Now there's folks coming through with 25 employees. Yeah, no, no. We incorporated right after getting into YC. No way. Awesome. We're like, all right, the two of us, that's great. Build the MVP. What were you doing before, by the way? So I started a company called StackShare. It was a developer community. Yeah. We scaled it to over a million developers. By the end of the journey, it was used by over 40 million developers. I think we did like an interview or something. Yeah, it was an interview of the Soylent tech stack. Yeah, that's right. How the hell are you shipping all these calories? And so we talked about all the tools. So yeah, it was a big developer community and then sold the company last year. Awesome, amazing. Yeah, that's amazing. You guys are in an incredible position. Yeah. I'm feeling really good about this. Yeah. You should be confident. It's gonna be hard, but I think the confidence should be high. It's a good one. I mean, it's amazing how much we can get done now. Just with like two people. Oh my gosh. Yeah. Right? It's never been done before. So yeah, we're excited. It also feels like an interesting market in that we've seen, it's just less monopolistic. It's not like trying to break through a social network where it's like you're either a $1,000,000,000,000 company or zero. Like I feel like in DevOps, in enterprise, you can understand the roadmap ahead, chop wood, create a great product and carve out a fantastic business. That's why we see so many companies going public every year, so many decacorns. in this category. So congratulations. Thank you. I'm really happy we keep an eye out for you in this batch. Yeah, we're huge DBP fans. Come on the next episode. Only PR should be watching if you're a founder. There we go. Love you. Have a great rest of your day, guys. Good luck. Thank you guys. We'll see you guys soon. All right. And we will bring in the next crew. Stoked for you guys. Oh yeah, bring the phone out. We are gonna run out of those. How many more do we have? We have a variety of goodies. Oh, I love the sweatshirts. You're owning a color. There we go. Rambo's yellow. You guys are owning a tank. You can have those if you want. There you go. Feel free. They're limited edition to this demo day. You can only get them this year. There we go. The colors are working together perfectly, roughly the same saturation. Roughly the same saturation. On the orange background. On the orange background. Yeah, this is a fever dream. I'm so sorry, y'all. Feels kind of vintage. It feels like I've done it. Yeah, I've known it. What do you guys bring it down? Oh, we're building an AI agent for bug finding. Okay. So right now we have a PR bot. So you make a pull request, we'll take your code, clone it into a sandbox, and then we let an agent just go ham at it. Okay. And then we tell you how we break it. Okay. There we go. How much of this is just about speeding up the pace of development versus, like, is there a pen testing angle here? Is that just. completely separate cybersecurity play. No, I think we do some pen testing. Okay, so it's, we want to basically find any kind of bug. Yeah. So a lot of people take like a limited approach at bug finding. So they ever do like coverage testing or they try and find integration bugs. Yep. We really want to basically build an agent that can do any of that or kind of what's best for your tool. Okay, talk to you. So you like when people are vibe coding because we're just creating bugs all the time. Exactly. We're actually creating bugs. Yeah, yeah, yeah. We love Vibe Coders. We're here to help you make better code. No problems with it whatsoever. As long as you buy our software. Yeah, yeah, you vibe code, we'll test it. Then you take our output, you put it back into cursor. Just beat it back in. Talk to me about the prompts that you're using to actually have the agent go and hammer it. Like, I imagine that that's not just Try and find a bug, you've probably gotten very deep. Don't make mistakes. Like designing flows. It's Vibe Code. It's Vibe Code. All the work that goes into that. What goes into actually getting an agent to effectively hunt for bugs? Yeah. So the most important part is just to have a sandbox where it can run code, can compile your code, it can run unit tests. And so then we just get the agent to go ham, and each time that it runs a small experiment on your code, it learns a little bit more, and it's able to run a better test the next time. So it's able to search your repository, able to run commands to see if you've changes you made actually were propagated through all the files. So we found a bug, which was that someone updated a path but didn't update it everywhere. And so that was those sorts of things. So the agent's able to run these any command that a person would. Yeah. Are you doing stuff like trying to stuff multiple variables in a single function, like that type of stuff where There isn't as much fault tolerance built into the code. Maybe they need like a, you know, if else, try except clause in there or something like that. Is that the type of like bugs that you're trying to find or is it more about like scalability of code? Like, okay, you're making a database call right here. It looks fine now, but if we scale this up when there's a lot of demand, you're going to get cooked. I think it really depends. So we use the pull request as kind of the initial siege. Okay. So what change you make there kind of determines the path that we use for testing. Sure. So if you're trying to scale, then yeah, we'll kind of test as if you're trying to scale. Sure. But if you're making path changes, we'll test as if you're making path changes. One of the things we find is like vibe coding, often there's a different flavor of bugs that are happening because of vibe coding. Okay, interesting. So they don't, LLMs don't make the same kind of errors that people do, because people, with people, code grows organically. Yep. Elm is like one-shotting things. Yep. So it'll often forget to add functions. So it's not as easy as pointing to a line and going like, this variable is wrong. It's like, no, no, you fundamentally missed this whole section of things you were supposed to implement. Got it. So yeah, I think it's-- okay, talk to me about the go-to-market motion. Is this just a landing page or driving traffic to it? People sign up by themselves? Are you doing founder-led sales all the above? No, no, we're landing page like this is our go to market right now. Go sign up. Yeah, you can just go you install the bot. We have a seven day free trial. Okay, so it's. Concerns show versus seat based pricing. What are you thinking? Yeah, it's seat based pricing. Okay, so for every developer it's 20 bucks a month. Okay. Just simple kind of flat rate. Are you running into cost problems because we've seen this, like, you know, the latest and greatest LLM comes out, it's really expensive. GPT-03 just dropped by 80%. So anyone who was having a problem with their cost is probably fine right now. But how are you thinking about that side? Yeah, we found that, like, actually for just be like, you know, running lots of experiments on your code to find bugs, that it's actually better just to have a really fast and small model. Okay. And so we've actually, yeah, we haven't had these sorts of problems yet. So what does that mean? Like LLaMA fine tuned? Are you-- we've talked to LLM training companies that have trained even smaller models, like just for JSON to, you know, formulation, or just translation models, or just profanity finding. Are you thinking about going so small you could run it on a gaming GPU, or are we still talking about, like, the big boys? Yeah, so right now we've actually gotten a lot of mileage out of Gemini Flash. Gemini. We started by, you know, we're fine-tuned with RL a model that was specifically good at using tools. Yeah, yeah, yeah. And so yeah, we're getting ready to do that. Once we find all our pain points exactly in our current architecture, we can train the exact right thing. And these smaller, faster models that are targeted for the specific use case are better. What were you guys doing before YC? We were both researchers. So I was doing research in software testing using large language models. Cool. And Matteo was doing his PhD in reinforcement learning and formal methods. Very nice. Yeah. So our kind of research come together to make this happen. Trouble, trouble. How are the metrics? How's the raise coming together? How's the pitch for demo day? What are the goals? Excited about demo day. Goals are raise a lot of money here. Let's go. Yeah, let's go in big. Bring some big napkins around. Record, record, record. Just do it here. Perfect. And then yeah, it's we're slowly kind of growing. Well, I wouldn't say slowly. We've doubled our growth kind of every week for the past kind of couple weeks. Nice. That's a better way to frame it. There we go. But yeah, we've gotten, I think we're up to like 18 different kind of companies using our tool. That's great. So yeah, it's been awesome. Cool. Well, good luck to you. 1800 soon. Yes, 1800. After this, when all of you guys subscribe, yeah, then we'll be at 1800. Well, thanks boys. Congratulations. Yeah, it's been a pleasure. We'll talk to you soon. Show the Crocs off, too. Oh, he's got the whole fashion, completely made out of everything. Let's bring in the next team. How you guys doing? Welcome to the show. We got, they've got the shirts. They're the shirts. You need one? I need one. Thank you. Nice to meet you, John. Nice to meet you, John. Nice to meet you, guys. Look at Sharp. Thank you for tucking your shirts in. We're keeping it, we're keeping it respectful. Okay, introduce the company. What are we building? So we're co-tool. We are building AI agents for security teams. Cool. Sorry. We're building AI agents for security teams. Okay. Specifically, cybersecurity teams, are we talking DDoS? Are we talking somebody goes in and tries to steal secrets, data? What are we talking about? So you can think of cybersecurity is split into AppSec and OpSec, where AppSec is defending your deployed software out into the world, and then OpSec is operational security, right, where it's protecting your employees from phishing. We're definitely more on the automation side for the OpSec side of house. So think of basically allowing security teams to triage their tickets a lot faster for possible travel problems or for like you Oh impos travel problems, That's like a that's like a buzzord for Oh, yeah, that's like, you know, uh, Eddie siged in from Singapore, Is that legit or not?,actly. Well, he was in the office earlier today. couldn't possibly been there 'cause hyper time travel doesn't exist. Exactly. not quite yet. But now that get it really complicated. Ohh, no, it's really getting lost from LA to Tokyo in two hours Iact I guess pi log Tokyo no, he's going for sushi. It's funny because I think like a lot of people have like this like hacker aesthetic in their mind when they think of cybersecurity, which is like a lot of like, you know, in the movies fucking around on a terminal or something like that. And it's just like when in reality it's like most of the time it's like people triaging tickets day in and day out and that kind of thing. So like our goal is basically to like automate a lot of the BS that these teams have to go through and like a lot of like the annoying stuff and then like allow them to get back to work. So what's the go-to-market motion? Are you doing enterprise deals, founder-led sales, selling to other YC companies. What's the scale of company that needs to use our product? Our first customer was Ramp. Ramp. Yeah. I mean, that's tough. You're kind of starting at the top. Yeah, time is money. Time is money, save both. Come on. There we go. I mean, Eric Rapp is just an incredible CEO. Yeah, yeah. That's my YC alum. Yeah, but the motion is we really want to bed with this, like, the most cutting edge, like the best teams like Ramp that can actually inform us as much as we're helping them on how the best teams operate. And so we're looking for like sort of tech forward, enterprise totally is like, it would be awesome. But yeah, anyone that's pushing the boundaries of what's possible automation-wise. Okay, and what does the integration point look like? Is it a single security person at a company can get set up or is it something that needs to be deployed throughout the enterprise and has a more like, like, staged rollout. Yeah, it's, it's, I think basically where it is is like, ideally what we would have is, is like, we'd probably first, like, start working with, like, your detection and response team and, like, get that team plugged in. Basically, like, we're, you know, it's, we're heavy, heavily leveraging AI tool calling. So the idea is, is like, we plug into all the different points in your Slack. Think, like, Okta, think, like, Panther, think, like, all of these different products kind of thing. And, like, basically then what we're able to do is deploy out and, like, allow these teams to write their own agents. So they're in there customizing their own system prompts and all this kind of stuff to go out and like tackle their tasks day to day. So I think the initial go to market motion is work with these high tech teams who are really used to automating already and then basically kind of like build up a nice collection of agents, kind of start getting a good network effect, IKEA effect, where like people are like building their own agents, sharing them out into the world. And then from there we can kind of like move out to wider and wider and like less technical teams where it's basically like we can kind of like start to plug into people's stacks and like wholesale automate out of the gate and solve a lot of these How did you two meet? So we grew up together in Santa Barbara, California. Oh, nice. We have, you know, lived together for, since, you know, we went to school. But, yeah, our third co-founder is just outside. He's probably watching this right now. That's great. But, yeah, we were really stoked when you guys watched our launch video. Oh, yeah. We did on the, we were the mole. You guys are that company. Wait, wait, wait. They did the rippling shield. That was incredible. Single best ad I've seen. seen this year. 100%. No, we were not. Because there were so many ways to do that and have it be just bad. Oh, yeah, it could have been bad a million ways. But it was tasteful, it was funny, it was perfectly timed. Yeah, it just made it funny. Where did that come from? Well, so it's funny, we were scared it was gonna flop, to be honest. We didn't know how it'd land and we're happy with how it did. But no, we came with the idea. We worked with one of my friends growing up, does comedy in LA and I live in LA, but like, She knew a director who like was like amazing and his friends that were also like actors and stuff got in and yeah and and acted for us and so it's like it all came together with friends of friends and it looked incredibly polished. Can you give us an order of magnitude on the budget for that thing? It was it was It was let's see five digits but not extremely low extremely low five digits we were able to work it looked like a look like a hundred thousand dollar project but it was actually it was it was actually pretty funny we we showed the the original idea came from Gary, actually. We showed him the demo on the first week of, and he's just like, we start like showing him how you can like query Slack and that kind of stuff. He's like, oh, you guys got to do the Replikking thing. And we're like, oh my God, yeah, we got to do the Replikking thing. And then we showed him like the final cut, like the night before we went with it. He's like, you guys should tweak these, these couple of things. Yeah, fuck, okay. And stuff like that. Yeah, it's amazing. It's funny, 'cause it's like, YC on YC on YC violence, but it's really just like, look, like, They're going to sort their thing out. You guys are just having to ad catalyze around for you guys. It did in some ways. Yeah, yeah, yeah. I think a ton of investors in bound off that. Yeah, exactly. Yeah, no, no, it really grounds it because, like, not everyone works in cybersecurity every day. It can be a little abstract. There we go, boys. Let's go. What do you do with that? You push it up or something? Yeah, we're figuring out. We got a lot of these. Congratulations. Exactly. I'm super excited for you guys. I think we got to give them a different hat for this. I mean, it's the best. We can give you, yeah, we can give you two of these. Let's go. Congratulations. Really great chat with you guys. Yeah. Great chat. We're excited for you. We'll follow up. Yeah, we'll talk to you soon. That was fantastic. I'm so glad we got to talk to those guys. That was such a good video out of the year. And, and, and right at the perfect time because we, we were just hitting, like, peak Vibe real, right? And then they did it even a month later. Welcome to the stream. I'm John. Nice to meet you. Nice to meet you. I'm John. How you doing? Or die. She's in too soon. They. Everyone died. Everyone died. You didn't hear the story about PMF or die? They died. They died. It happens sometimes. Never. Never lock yourself in a room for the 90 days. No, no, no. Move to San Francisco. Do YC? That's what I recommend. They should stay the same. From here on out. Anyway, please introduce yourselves in the company. Yeah, I'm Tom. I'm Eric. Are you guys? You guys look, you're not related. How'd you guys meet? Right? We're not related. You could go by brothers. People ask us, people ask us. What does the company do? We're doing agentic people search. We have a database, people database of around 200 million people. We use a generic search or search over that for companies and businesses to do like sales recruiting, GTM. So are we talking about specifically like I am a recruiter and I need a sales person and I'm going to go to you to try and hire them? No, no. So basically like you can put in a criteria. Like essentially what we do is- Hold the microphone up. Yeah, yeah, yeah. Yeah, there you go. Yeah, I mean essentially what we do is we like deploy an LM. Assign every profile to that LLM and then given your criteria that could be like one paragraph long. We would just ask the LLM if this profile meets that criteria. And then we built a load distributor to run 10,000 LLM calls in parallel. Wow. Do that at scale. We can search over like 5 million profiles in 30 minutes. Okay. Insane. So walk me through one of the key examples. I'm sure this is live. You have customers. What's an example of someone this. So for example, you know, we had a query come in yesterday actually, it was just like every founder that was acquired, that was a CTO of their startup was acquired by Databricks or Snowflake in the last three years and they still work there. And then there's only probably 25 people in the world that fits that profile and we found all 25 of them just by using, because we can use and have an LLM go in just like because we have like, we can throw as much compute at the problem as we want. Interesting. And then LLMs get better the more compute you throw at it. It's interesting to be able to find you're able to find information that is historically, effectively impossible to find without doing all the work that you guys did ahead of time. Yeah, yeah, yeah. Makes total sense. So who's, who, what buyer or what buyer archetype within an enterprise or business is most excited to buy your product? Yeah, I mean, like, mega recruiters by far. Recruiting firms. Yeah, I know, just like people that, you know, hyper scaler or like a big recruiter at. I mean, we work Mercury, for example. Mercury, okay. So, you know, like, just like people hunting for talent, but it's like a generalized type skill, right? So, for example, you know, like, in AI Labs training a new voice model and they need, like, people that speak Cantonese. Sure. It's like, okay, I find me every Cantonese speaker in the US that has, like, a podcast presence. Yeah. And they're like, okay, great. These guys can come train our voice models. Right? Like, that's kind of. Or they might even need someone who speaks Cantonese and also is an expert in biology. Yeah. So they can talk about the biology. terms. And that's something that- how are you going to start searching? It's so funny because I run these type of queries in my own head where I'm like, we need a videographer who's in LA. Yeah. That has experience in film, but, you know, it's also part of Teapot. That's basically what we need. It has a sense of humor. It's like, how would you even know that? Well, if you look through their posts, I'm sure you could figure that out. Yeah, it's basically as close as you can. If you just give a criteria to human recruiters. Totally. so you can imagine like 5,000 human recruiters manually looking over profiles and then, you know. Okay, business model. Are you, most recruiting firms, they charge on like a per fee basis, $30,000 to place an engineer somewhere. Are you doing like a seat-based pricing, consumption-based pricing? This sounds expensive if you're talking about running 20 million LLM queries at the same time. It's actually not as expensive as people think because, you know, open source models gotten so good. Okay. Yeah. Like, like, I'm guessing, like, you know, any, like, deep research query costs us, like, ten dollars, maybe. Okay. But then, you know, like, we. We recharge for conversion with our conversion. Okay. Yeah. We charge by conversion. So that's probably pretty expensive. Exactly. Yeah. And also we have, like, a platform that's just available to everybody. So they can pay us a subscription fee, search as much as they want. Very cool. Do email enrichment phone number. I feel like we could use We might be potential customers. Yeah, we need a guest that doesn't hate tech. Yeah, how did you two meet? What were you doing before YC? Yeah, so we met in elementary school actually. So we were originally from Canada. Let's go. We went to an elementary school and we became close friends. Yeah, it's been great here. But we became close friends when Eric, he uninstalled Windows on my computer. And I was really pissed at him for a day, and then we fixed it. So then we became great friends after that. That's our great friendship. Couldn't load anything. Yeah, like you didn't even have homework. No, I had homework. That was it. It was during school. And then- Ultimate prank. Uninstall Windows on your best friend's computer. Always being boys. And then we spent one semester at college each. Still got. So I was at Penn, he was at UC San Diego. And then come January, we were both like, like, why are we even there? Let's drop out. Yeah, right? It's 18, 19. We're both 18 right now. Wow. Let's go. Here we go. Years ago. Yeah, what's the youngest team that you've met here besides yourself? 17. There is a high school senior. Okay. I did not know that when I dinner. Okay, yeah. I'm doing some robotics here. It is getting younger, yeah, yeah. Yeah, we have a bottle of wine here. We're gonna give it to the youngest. We received one from, hopefully you're not going back through YC in three years. Hopefully you're at the Nasdaq or something. Talk to me about traction, metrics, anything that you're sharing here at Demo Day. Anything to get the venture capitalists Yeah, 270 paying customers. Wow. So, I don't know if you guys heard about Linked. Linked? No. Yeah, yeah. So, a very early version of this product we launched, which is like Rank Stanford, like Stanford Rank. Okay. Which was, so we basically built this, we basically scraped the entire alumni database of Stanford. I'm sure they love that. Yeah, they were okay with it. We put it online, and then we had this app where people people can see two random alumni next to each other, and then you vote for who's more cracked? Who's more cracked? And that version of the app picked up like 80,000 users was how we got into YC and stuff. Very cool, very cool. And then we came down here, 207 paying customers, about 16,000 my monthly recurring revenue. That's great. Since the profitable. Yeah, profitable. Yeah, wow. Is it just you two? So there's three of us. We were two co-founders. Founding engineer is from high school. He just graduated. Yeah, we all went to the same high school. That's amazing. No, I think we're good. I'm super excited for you guys. Congratulations on Westside. Thank you. We're gonna launch the product and I actually have a bunch of people to send this to. Yeah, this is fantastic. You should give it a try. Fantastic. Thank you so much. Yeah. We'll talk to you guys. Great meeting you guys. Fantastic. Let's bring in the next team. If we have one. Come on down. How you doing? Aaron, what's up Aaron? So this is a YC alumni. He just raised a series A today. Congratulations. Yeah, so we were trying to make this happen for the last week. But he just announced his series A today, 17 million. 17 million. Congratulations. There we go. I mean, we have stuff to celebrate. I already got the hat. Congratulations. Seems like you've done that a couple times. Yeah, yeah, yeah. This is the biggest round of the day. Who did the round. How far along are you? How big is the company? Give me some stats. Yeah, yeah. Okay. So 8VC did the, by the way, guys, this is awesome. I did like the interview with VentureBeat and this. I'm way more starstruck by this. So, like, I'm not just saying that, but I'm like, all right. Yeah. So 8VC led the round. Let's go. Let's go. One of my absolute dog. What partner are you working with? Jack Moskowitz. Oh, cool. He's fantastic. Yeah. Yeah. So how far along? So we are, And were you in the last batch? No, we were a couple batches ago. We're summer '23. Cool. Great vintage. Was that still remote? Or was that batch? No, we were the first batch. There you go. We had an advantage. Very nice. But yeah, so Outset does AI moderated research. Okay. So what does that mean? It's like when big companies have to do a ton of research, like Nestle has to go figure out whether they should launch this weird version of DiGiorno pizza or something. They go do research. So either they're running massive surveys and they're getting like very low fidelity data. They really know much. It's just a bunch of numbers or they're running interviews and that's where it's a one on one interview with everybody, right? Which is not actually cost effective. So totally. So now you can run AI led interviews. That's AI is leading the conversation, digging in, following up, probing deeper and synthesizing all that for you. Got it. And we were how big is that? How big is the legacy market? So the research market is like 140 billion. It's actually a really big one. Yeah, just like, yeah, there's like huge companies that you probably may have never heard of, like Ipsos and Kantar and these like big guys that are just kind of sitting there. So there's a lot of opportunity. And yeah, we work with like Microsoft, Nestle, Weight Watchers, who have been super enterprise focused. And yeah, we're a couple of years in. What are the interaction patterns that you like or you think are kind of unlocked by AI? I imagine that voice phone calls is topping mine versus It was just like forms, which was always available and already computerized, essentially. It's actually, I think the cooler thing is what you can get from participants and synthesize. So it's like, so now we do video interviews and we do audio and they can even share their screen. Yeah. So all of that is being ingested. And then like people ask like, to say, I have an avatar when it's interviewing. And we actually did research and people don't want that. They don't want the avatar. No, they don't want the avatar. Yeah, that was a weird uncanny valley stuff where I'm like, and you're just like, you're not used to phone calls. Yeah, people used to phone calls and they're fine sharing their video, but like, if you suddenly see an AI, you're like, I'm trying to make, you know, 15 bucks doing some research. Totally. Like, you suddenly see that, you're gonna be all weirded out. So it's actually much better to have AI come through with voice and text. Yep. Talking to me about recruiting, you said 15 bucks, that's enough to get someone to jump on, but how do they even find out that 15 bucks is on the table? Yeah, so we partner with a number of different, like, companies that do nothing but panels, like nothing but recruiting. Nothing but recruiting. So you have, like, user interviews, prolific, are they- They probably get some demographics and some basic data. They get all that. And they have millions of people that are like ready to like, it's like gig work, right? And so they said, okay, and you know, 100,000 people that drink energy drinks to give me feedback. Exactly, exactly. And you could, yeah, you could do all that through our platform. Is there a certain unlock when an AI doesn't need to like, you know, if a human is scheduling research calls, you know, you can imagine they do like four, 30 minute blocks and then they take a little break and they do some more or something like that. I don't know how it works, but an AI could hypothetically talk for hours and hours and hours and hours and hours. Yeah, 100%. So there's like, you know, I think a lot of AI stuff is like, oh, where can it replace the human thing? And now it's cheaper. But actually, like, this is taking on the stuff that humans can't physically do. We only have 24 hours in a day. And so it happens that people use it to interview 500 people in a day or two. And that's literally not possible. It's just laws of physics, don't allow it. And so they're able to do that. Multilingual, they kind of do it all at once so you can wind up like unlocking actual like stuff you've never heard. Can I curse on this? Oh, we usually don't, but it's free to you. Stuff that they would not have uncovered anywhere else. Yeah, yeah. And they actually are able to get that in this way. Yeah. What's your stack under the hood? What models are you using to get the most value out of? Yeah, we're using a combination. So it's, you know, it's like we're hitting multiple models constantly, but Azure, we're using a lot of Azure actually. to open AI models under the hood to Azure. Is your model router helpful? I saw they announced that at Build. I haven't talked to anyone that's actually used it. I don't know yet, actually. So I don't think we've played with that yet. So basically, what we need is just incredible amount of reliability because what we'll have is three customers are all running 500 simultaneous interviews. So we have to actually scale very, very quickly. And also a lot of our customers, like the Nest things of the world, they care a lot about Super safe, super reliable. So we kind of like wind up needing the kind of Azure. Yeah, and then you were also probably going through like peak LLM usage hours too, because you're not doing it in the middle of the night. No, no. We can't just like process it on our own time. It has to happen in that moment. But then we also fall back to OpenAI, we use Gemini for stuff, so we're like hitting a lot. Yeah, talk about the, the, is the voice modality beyond the uncanny valley at this point? Is that why voice is valuable? Are you using voice a lot because you can imagine that this might have been possible via text interactions. You're texting your responses back and forth. Probably get more out of a voice interaction. Are we just, if we talk to you again in two years, do you think it'll be like, okay, yeah, now I'm a believer in the avatar thing because it is photo real. Okay, so two things. So one, right now what matters most is obviously the modality of the participant. If you think about all we care about is the most deep, like, like thoughtful, in-depth data that we can, like, pull from you that response. Yeah. That matters. And that's gonna be way better than text. And that's way better than our first product that we got to get them talking. Yeah. Our first, like, pilot with Weight Watchers back in 2023 was, like, all text, and it was actually pretty good. But, like, it's nothing compared to what people actually say. Sure, sure, sure. Yeah. And so that's what matters most, is, like, video screen share, uh, voice from the participants from AI. Yeah. Like, so we use voice a lot, so there's a voice voice mode where there's like no buttons, it's just conversation. And like, people like it, but like not as much. And I think there's still just, if it's not a person, then it's still got the minor imperfections, the kind of slight bits of latency. And so I do think in two years we'll talk more about that. But ultimately, like, people know it's a computer, they know it's AI. And like, they're kind of cool about it. Like, we've done a bunch of this research where like, do you care that it's AI? Like, no, like, I get it. Yeah. Right. In fact, they have even expressed that they'll share more because there isn't a person. Sure, sure. It's this idea of social desirability bias. You're like, I don't want to come off as a person that is X, Y, and Z to another human. I will just tell you, look, I want this to be faster. Yeah. Or I want this to taste better. Yeah, yeah, yeah. Or the real reason I'm not using your product is this. I'm not going to say that to a PM or a researcher who's like at the company. Right. But instead you'll tell the real truth. Yeah, yeah, yeah. And that was like, Our initial pilot with Weight Watchers was all about weight loss and like that was like a thing people don't want to share a lot about. But with AI, they like shared everything about their lifestyle. Yeah, I mean it sounds like you've done like, you've worked with really big companies and that's where the money is. But when you went through YC or if you're here, you know, there's a big theme of talk to your customers. Yeah. Has there been any pull at the lower end of the market? Yeah, it's funny, I sometimes you get a founder reaching out like, I really want to use this because I don't want to talk to my customers. Yeah. I might be like, no, no, no, you need to talk to your customers. We don't want you as a superintelligence. We're not superintelligent. You don't want to be a superintelligence. Yeah, basically, I think a good reason not to use an AI moderator is like, if you could sell to that person, probably don't outsource that. Maybe build the relationship yourself. So the truth is, especially all the B2B stuff, there's not as much, we usually turn around and say, come back when you're like a couple hundred people, and you're kind of scaling that out. But yeah, with some consumer stuff where you really have millions of people you're trying to learn from, It can make a ton of sense. Talk to me about the data processing and the intelligibility that goes into once you have all that data. It's very nice to be like, hey, we have 5,000 hours of video. Yeah, we repaired a 200-page report. Yeah, but nobody reads that. So how are you thinking about actually compressing that down? Because that seems uniquely suitable for AI. But there's still a lot of art in terms of a lot of people say, yeah, I did a deep research report, and then the next query was, Give me ten bullet points about that because I didn't actually want the full report. Yeah, yeah. So all right, so our vision here is like we should be building, we are building the like deep research, but for primary research. So you think about deep research is like, all right, all desk research is now commoditized. So what if you just ask a question, you just want to like learn from real people that's much more up to date that whatever, like your own proprietary data, it should be the same kind of idea, right? End to end agents are doing that. But today, like the premise of AI kind of scaling your qualitative research is that you also have to help them do something with all that conversational data, right? Because otherwise you're left with just hours and hours of transcripts. I'm like, I'm not going to review that. The application of this is, I know this is not what you're focusing on, but if I was a VC that wanted to write a multi $100 million growth check, being able to get live interviews with 500 customers. I mean, people are going to do this with GLG. Yeah, that's right. No, this is a huge opportunity, actually. So, Yeah, I have a whole side thought. Like I think one of the challenges there is with the expert networks is all about finding the right people. But if you're in a situation where you can find the right people and you can find 100 of the right people, well we just had Plato AI on you because you should talk to them. They're in this batch, they do like LLM based people search so you can find like every person that at Databricks that was a former founder. No, there is an opportunity to connect all of that through that. But what I was gonna say with the synthesis is what we do is basically taking all the videos stuff, and then we process it and we give you basically reports, but it's not just a here's what it's telling you, deep research style. But what you could do is start slicing and dicing it. We quantify it, we give you breakdowns, we build highlight reels for you, and then people can cut it and segment it. And so it's like a whole analytics suite on top of qualitative data, which is not a thing that has ever been done. What were you doing before this? so before this, I was a VP of product at Triplebyte, if you know that. Oh yeah, yeah. Yeah, exactly. Exactly. He, yeah, anyway, so I worked at Triplebyte at Jumpstart, another company. So I was like leading product and design teams, but earlier in my career, I was like a consultant where I was doing like this work non-stop where I was like, are you a nominative determinism guy? Yeah, yeah, you're an absolute cannon. fire a billion dollars into research. I have not capitalized on exactly. I was looking at that. We're big. We're big. We're big into the names or the truth. The names are really good. I like that. I like that. It works well for you. I have a friend who always calls me the loose cannon. Yeah. Oh, that's great. Yeah, yeah, yeah. You can never know what to expect from a loose cannon. That's a little bit too much. You might dial it in the capital cannon. Yeah, yeah, yeah. You can trust it with your capital. Just give it to him. He'll fire it in the capital cannon. And boom. Yeah, I'm gonna pivot off of loose cannon onto capital. Aaron Capital Cannon. There you go. Anyway, this has been fantastic. Thanks so much for having me. We'll have you back on sometime. Yeah. 17 million dollar series A. Let's go. Fantastic. Biggest round we've heard yet. Let's bring in the next guest. Operative. Oh, we got a lot of questions on the pitch. This is the second round of pit vipers. Welcome to the stream. How you doing? Hey, how's it going? Good to meet you. I'm John. Eric, nice to meet you. Nice to meet you, guys. Good to meet you. You're going to want to keep those mics close to you because it is noisy here at YC Demo Day 2025. Good to meet you. Can you introduce yourself and the company? Awesome. Yeah, we're operative. I'm Chris and Chris Settles. This is my co-founder Eric Kintanah. Very nice. You can introduce yourself as well. We're friends from high school. We met at West Aurora High School. at school in Aurora, Illinois. In 2014, we were doing our first Java programming class together. And 10 years later, here we are. Deep. What did you guys do between then and now? Yeah. Do you want to tell more of the story? I mean, we went to college. Maybe you still write Java. I don't know. Yeah, we went to college, worked at a couple big tech companies, worked at a couple startups. Amazing. Alright, Chris was at Uber. You can talk about that. There you go. Nice. Did you wear the pit vipers during your main pitch? Sorry? Oh, you're asking where the sun is shining. Did you wear them while you were pitching the phone? Oh, no, I just got these from Marco. I don't know. We saw Marco in here wearing these. We're like, Marco, you look so cool. Yeah, what are you guys doing? Alright, so we're working on web app code generation for internal APIs. So you can imagine having a lovable plus a retool for your company where you can on demand just create any kind of application that you're thinking about, whether it's a new dashboard or it's some kind of app to manage your Airflow and you want to have a nice UI with it and you want to connect it to all these different pipelines. I mean, that's just one use case you can think about, but you can build any kind of front-end application that connects to existing APIs that you have in your company. Yeah, I remember when you you set up like a Django website, you kind of get like the Django admin out of the box, and you can just investigate all the different classes that you've kind of defined in the database. What are some examples you could give us of these internal APIs that typically float around in companies, or you can either give a precise example or just a general example? Yeah. Do you want to give one? Yeah. I mean, a lot of the use cases are centered around customer service. Okay. So people want to interact with a database, Sure. Who are doing support, want to change payments and stuff like that, data visualization, stuff like that. Okay. So, yeah, I mean, is it unique about bringing different services together? Because a lot of smaller companies would say, you want to look at the payments admin, head over to your Stripe dashboard, Stripe's already built that. Where are companies currently falling short? Is it that they're not bringing the data together across services? Or is it that they're developing their own databases and their own tables that just don't have an API out of the box or don't have a web app in front of their API out of the box? Yeah, yeah. So definitely startups are super easy to just say, okay, yeah, check out the Stripe dashboard. Manage that. And that's what Stripe does. Typical customer service flow. You go to Shopify for this, and then you go to the CMS for this, and then you go to Stripe if there's a problem over there. Yeah. Payroll. It's all SaaS products. Yeah. But one of the things we noticed, especially at our jobs in big tech, is that eventually your product gets really complicated and you actually don't-- there's not a SaaS product that those services offer. Sure. So you end up needing to build something on top of it in order to manage it. And then you end up needing to build all these different internal tools to have all of that organized in a nice way where you can connect it all together because the traditional SaaS doesn't-- support the features that you're looking for. Got it. And so then as a result, you hire a team to build out those kinds of applications and then- Spend a lot of money. And that's what we're trying to bridge that. What was the aha moment for you guys? Were you seeing the kind of explosion of tools like lovable and things like that? And then you saw, wait, why aren't people doing this internally? Or what was the kind of moment that you guys decided to focus on this? I mean, I think for us, We saw, like, we launched this, like, lovable type product, and we saw a lot of people from companies using it as a consumer product, actually, at first. Yeah, to build internal tools for their company. So we actually, we were like, oh, we should just bring this directly, B2B. Cool, very cool. Yeah. In some ways it makes sense being able to, like, quickly generate something, test it, and then, like, it's very different than sort of these, like, ephemeral products that exist and ultimately will need to be, I don't know, sometimes completely rebuilt. Yeah. Talk about the go-to-market motion. It sounds like this is not a company where you need to sell to every other startup in YC. Who are you selling to? How are you actually convincing them to take the leap and go with you? Yeah. So we're starting from the initial sort of traction we saw with the consumer product. We decided we want to work on this enterprise direction and/or larger organization direction because of these use cases we saw with people signing up from all of their work emails and building apps. so we're starting some design partnerships with large organizations. I can't say, I won't say the exact name. And we're planning to kind of just leverage our Warm Intro Outbound Network, Warm Intro Network, to be able to talk to some more organizations. And I think there's some, there's actually a large percentage of companies that even will try to use Retool to build internal apps. And so we think we can work with some of the other YC companies that are doing things like that, or using that, but maybe have some more... Do you guys work with Retool? Are you guys working with Retool or are you competing in some other way? Kind of competing. Good luck. We have a pretty cool direction that's pretty unique at least at the moment. Yeah, we have a pretty cool direction. That's pretty unique at least at the moment. So yeah, talk to me about the actual instantiation of the web app. I'm sure you're using AI and co-generation. What's working? What? How much are you leveraging 03 or Claude or open source or Gemini? What are you looking for? Where are the models falling short? Where are you trying to stay ahead of the puck because everything's developing so quickly? You want to take it? Yeah. So I think on the platform, I think the foundation models provide a nice foundation. But we try to leverage good tools. So viewing a file tree, We had a browser agent on top to test and validate the app. Okay. The models far short in I think they're good at like going zero to one, but I think like if you go zero to one and then there's a bug going back and finding what file it is, what's implicated in it. I think it's very hard for the models and it's better to just start over. Okay. Yeah. Have you benchmarked against how long it takes someone to build a web app for a on top of a private API using Cursor and just saying, I'm gonna vibe code this myself versus your product. Because it feels like it's getting faster and faster. And there's a lot of, I mean, there's like, there's whole, there's whole open source projects for like build out the API docs around an API just from, you know, this was programmatic. This wasn't even, this wasn't even AI. You know, you just have like, oh, you want to, you want to put the, you want to instantiate this as a blog. Okay, here you go. Yeah. What do you benchmarking against? Yeah, actually. Maybe a cool story like on the back story of how we came across this is that we actually started with people wanting to develop apps inside Cursor. Sure. And so one of the kind of unique insights we had is that today, developing any kind of front end requires that you ask Cursor for a prompt and then you open up the webpage and go click on it and just verify that it looks how you wanted to. Sure, sure. And you can go and then tell Cursor, okay, I want to move the blue button inside the black box. And then you have to just keep prompting it until it does that. So actually, the first thing Eric and I worked on was actually an MCP tool that allows people to opens up a browser agent that can go and view changes that a coding agent makes. And it will just test to see if the visually if the app actually works. Actually, there's one of our users over there. He's actually just giving us feedback on it. And we grew that to around 1,000 GitHub stars. Yep. And so people got really excited about that, but we wanted to bring those same tools into a product like Lovable or like CodeGen and be able to have all of this code generation with testing built in. So that way we can allow users to like just go from prompt to a working web page without any interaction. Very cool. Are you guys still raising? Raising right now? We're still raising. We have, we've been back by weekend fund and also a few to other angel investors. And we are, we're still raising and open to chatting with other investors. We have an angel investor in Retool. Play the hits. Play the hits. Play the hits. Find something you love and just, do you have any metrics that you shared here at Demo Day? Yeah. As I mentioned, we had GitHub repo. We scaled to 100 or sorry, a thousand stars. That's pretty good. We just launched the consumer product, we had it got around 2,500 different users building using open-source to build apps. That's crazy. Yeah, that's great. And right now there's like about a 4% conversion from free to Pro Plan. We have a pretty generous free tier, so you can go and use that however much you want. But for the power users, like there's around 4% of them converting. So we have about 1.5K monthly revenue at the moment. Amazing. And we're, that's our, that's with the consumer product, but we're planning to scale more revenue. I think the enterprise, you could probably get that on your first contract. Exactly. Thank you for stopping by. Please, congratulations, guys. Thank you so much. Have fun out there. It's great having you on. Thanks for coming. We'll talk to you soon. All right. Let's bring in the next crew. We are at YC Demo Day. Hey, how you doing? What's up? Time to talk sleep scores. Let's talk sleep scores. We didn't sleep last night. It was brutal. I was at the Rosewood. The Rosewood doesn't have eight sleeves. This is a big problem. Yeah, yeah, 90% of the guests are. Good to see you. Good to see you. I want to talk F1. I want to talk F1. You just did an interview with Charles Leclerc. Yeah. Break it down. What did you learn from him? His obsession for every single detail in his preparation. He goes for two weeks at the mountain in January to prepare for the season. Is that for elevation or elevation? And then he does every sort of skiing for like eight hours a day and then he goes to the gym and then he brings the pod, he sleeps on the pod while he's there. That is when he really prepares the season. Yeah. And then his obsession for every single detail when he travels, all the gadgets that he brings with himself from devices for recovery. Sure. Ice bath, obviously the pod, the neck training, is he doing the leg compression thing? That's a big one right now. And I don't know if you saw it. So Charles was talking to us about the fact that when he's on the grid, it's really hot. And a lot of athletes in Formula One now, they use this vest. Oh, yeah. Oh, interesting. But they don't really work. Okay. And so the way you want to really cool your body, you need to cool pull the palm of your hands. Oh, and so I was with my co-founder Max and we said, what if we build the cooling gloves for you? He said, oh, that would be interesting. So we built the gloves in three days. No way. And then one of us, one of our people, they flew to meet him in Barça. In Barça, they were like 35 degrees Celsius. It was super hot. And so Charles started using these gloves, cooling gloves, we built for him. And then as he goes in the Box, Ferrari takes a picture of him. Just know for Scuderia Ferrari, blah, blah. And so he was on the COVID of the Instagram account with his. With his sleep. Let's go. And so it was free branding for us with the device we built for him. And so now you see that with the tires, they have the tire warmers. Then you have the hand coolers. Every different part of the F1 machine needs to be temperature controlled. Perfect. And then he saw him using And so paddle players, tennis players, they all say, oh, can I use it? And say, but man, we did an-- you know, it's a one off. And so now we have a team that is building this pulling gloves for a few athletes. That's incredible. Great partnership. What has YC Demo Day been like for you? Are you here just trying to sell eight sleeps, or are you also doing some investing? What are you getting out of YC Demo Day today? Yeah, yeah, I do a bunch of investing. Okay. invested, like, probably 20 companies in this batch already. Wow. You gotta get it. Yeah, you gotta get them in here. You need to start early or then you're out. Oh, yeah. You gotta get in early. And so in every batch, I try to invest in around 20 of the batch. Oh, cool. More or less. That's great. And I have been doing this for two years. Have you seen anyone doing cool Hardware, cool consumer devices? I know that there's a ton of AI, there's some hard. tech, defense techs becoming cool. But I always like, I like the eight sleep because it's a gadget. You can give it to someone for, you know, Christmas, and they, like, experience it every day in a very different way than just nap on their phone. Have you seen anything? So I I I I I I'll answer your question, but it's cool because I walk around with my head and people stop me and they say, oh, I sleep on your product. I just met two Founders and one had a 75 score, the other one 48. Oh, no, that's the real 48. The night we're down there, we're never bad. We're never bad. We're never bad. It doesn't work. I've been smoking Jordi this week. I got, I beat him twice. I got it. Yeah, I'm up in the 90s. I'm doing great. I've had a rough one. But there is not a lot of consumer hardware. It's hard. It's so hard. Yeah, it's really hard. I was just talking to a few founders, even when I look back at other companies starting with us, they all struggle. So we have been so lucky to be here today. Yeah. But you see a lot of really cool stuff now in robotics. Yeah, yeah, Matic robots. We've played with those, which has been really cool. And so usually there is an hardware section and that is the first section where I go. So hard tech or hardware, that is my passion. And then yeah, AI is everywhere. Yeah, yeah. I mean, you see a lot at CES, you'll see the AI connected oven and the AI connected toaster. And why these kind of stayed away from that? Because it feels like it's hard to build like an independent business around. But I am optimistic that once the software side of AI is so commoditized so just ubiquitous, we'll see another revolution in hardware, another thing. And I think with the robots, things will get easier because robots will explode and a lot of consumers will buy different shapes. Yeah, yeah, this is what Nat Friedman was talking about. He wants the robot that picks up the leaves one by one instead of leaf blower. And it's like a funny idea, but it feels like, yeah, it's only a couple of years away and then it'll just be a common thing. Coming for security, I have this idea about a robot that goes around your house for security. Cameras everywhere, with cameras and lights. Yeah, I would immediately buy that. People could go around my house and make sure that, especially if you could put a gun on it. I mean, Amazon did launch a drone that will, or maybe they just launched a video about this. There's a drone that takes off from a base station where it charges and it can fly around your house and kind of patrol inside your house. But yeah, I wanted that to happen. When the fires were happening I figured out that a lot of fires in LA are just started from a single ember landing in like a backyard or on a house or get stuck. And you just realize that, you know, there's probably an opportunity for drone-based. Yeah, there's actually a couple companies that did like water turrets that you mount to your roof. And then if they see fire, they can just spray it right there. It's literally just a hose on an articulated arm. It's like not that complicated, but you could say, what about an eight? Any other hardware coming down the line that you can talk, you can kind of allude to yet? So actually we have an office in Sef, so I just landed, I came here, I'll be here for a couple of hours, then I go to the office to see the new products. Very cool. I'm already sleeping on the next generation. Oh, I'm already sleeping on the future. That's such an edge. That's such an edge. You're on pod five, I'm already on pod six. All my friends, they always now make jokes because I always always sleep on the next generation and there are new devices. So they buy the latest, but I'm already one generation ahead. That's your edge. This is how you win. We started working with some new sensors that are incredible in terms of computer vision. So we really want to double down on body scanning and scan your body while you're asleep to save your life. And that, to me, is one of the most exciting things, because if we can convert your bed in a health platform save your life. That's pretty sick. Yeah, that's amazing. What are the companies that you're most excited about in the batch without picking too many favorites out of the 20? Anything that you're most kind of excited about? At the end of the day, I just get excited with founders. I mean, I just met this guy and he's a high school dropout. He's 18. And he's here. What? Yeah, because I was at school, I decided to drop out. I thought there was this opportunity for reality to help teachers. And so I dropped out, I built it, and now I'm selling it to my teachers. I said, what? That's amazing. So when you see these people, right? I don't even, I don't care what happens with your company, but I admire you so much. Can I, can I, of course, I want to back up the founder. Right. Exactly. And so that is what excites me, like to stay young. Yeah. And see these Generations shaping the future. That's fantastic. Amazing. Well, thank you so much for stopping by. We will see you soon. Great job, guys. Thank you. It's been great. Let's bring in the next team. Welcome to the YC Demo Day 2025 stream. That's sounding good. I put so much of the, the, yeah, yeah, it's okay. I'm working through it. How you guys doing? Oh, you guys already got the hats on. We'll see if there's, if there's other surprises in store. We might need to blow the whistle. Welcome to the stream. How you doing? I like how you guys just said, made in SF, not Made with love. Made with. Made with. I mean, taking shots. We have a Made with Love in San Francisco as well. Oh, you do? Okay. Well, what is Throxy? Break it down for us. Explain the business. We're building AI agents that help people selling into traditional industries such as manufacturing, distribution. There are sectors in which selling is very hard, especially from a B2B perspective. Sure. So we're helping those companies prospect into legacy industries. Okay. And we manage the entire outreach to those. Okay. Whenever someone's interested in speaking with my clients, I connect them with their buyers. Sure. And to help them grow. So that's like selling super technical products. What does that look like? Yeah, it's selling super technical products, but also professional services such as consulting. The important thing is we help people selling into traditional spaces like manufacturing. Okay, so there's a manufacturing company out there, they're making microphones for example. I am a company that's gonna sell better software design software that runs on this or automates the facility. You're gonna help me find clients to sell to. Is this more about the prospecting and developing a lead list, doing the actual outreach? Is this an AI business development representative SDR play? Are we gonna see a billboard on the 101 for you pretty soon? What's going on? So it's a bit of like everything you've mentioned. So like we don't like to micro ourselves as AI SDRs because they have like a bad reputation. And we think like focus is a multiplier on like the work we do. And that's why we're like serving these traditional industries which are like traditionally like underserved. Yep. Everyone's ignoring them, but they're like huge market opportunity and like really high average contract values. So we can like have people serving these industries both with AI, but with a bit of human in the loop right now. And now we're automating those humans in the loop as models get better, as agents improve and like rolling them out. So talk about the co-pilot era. Where is it important for in the sales process to keep the human in the loop right now, what is the most automatable part of that process? So the most automatable part is qualifying the whole companies. So like, okay, actually like we just like pull a list of companies from like our crawlers and then we look for like specific stuff with agents and we just qualify them. Could they even be a buyer? Do they have budget? Are they big enough? Are they declining in sales? Are they about to get rolled up into some private equity thing? the thing is, like, because we're focusing only in manufacturing companies, we can check for very specific stuff for, like, okay, does this machine, like, fit, like, any specific specifications? Do they have, like, this grind type? Do they do, like, CNC milling? Yeah, that kind of stuff, which is really important where, like, horizontal AISD's fail. Sure. And they fail to serve them because they're too generic. Because if I'm selling CNC software and some manufacturer doesn't use CNCs, why should I even talk to them? so you're saving me time that way. How did you guys get into this? So I think it's, I was in sales. I was doing a lot of manual work myself. I've been an SDR, three companies, completely different value propositions. But I think one of the big issues was actually finding the company I can sell to. I was doing all of that very manual research. Do they have buying power? Do they have this specific certification? When I was selling into hospitals, I had to check. what their team stuff look like to see whether fit my software. And I hated my life. I was like, you were still performing. You were still performing, right? You were putting up big numbers. Yeah, I actually was. And. But, yeah, I. I genuinely felt like my. My job was going to be replaced soon, so I was like, let me. I gotta get ahead of this. Let me replace myself. Talk to me about what it takes. to actually qualify a lead. What are the data sources? I've heard LinkedIn is extremely rich, but it's very locked down and they don't let you play with the API anymore. Obviously, you can crawl around on Google search and some companies have a lot of information on their websites. Some of these manufacturers barely even have websites at all. How are you getting data? That's our insight. Like our insight is like LinkedIn doesn't like serve these manufacturing people because the owner of like a manufacturing company is not on LinkedIn. Their prospects Yeah. So we've built our own crawlers, which are calling the whole Google Knowledge Graph from scratch, and then sending agents to qualify these people, which have access to specific tools with directories of other manufacturing companies, or API access to machine specification, access to vision, so we can check out the content of the website, take a screenshot. Oh, interesting. Take a screenshot. Hey, that's a CNC. Exactly. this is a CNC company talk about traction when did you guys come into YC with this idea and you've just been working on it or did you iterate towards it yeah we came in with this idea in six months we've gone to 1.5 million in annual revenue that might be the biggest one we've heard yet that might let's go 1.5 million baby let's go congratulations that's That's amazing. So the round's already closed, I imagine. Yeah. Absolute dogs. That's fantastic. What's your guys' backstory? How did you get to YC? We met in high school and we've always been like building stuff since we were kids. Awesome. Pablo was like, I hate sales, but like, I love money. I was like, Let's go build a company together. I was working in AI at JP Morgan. I was like, the most boring thing to do ever. Working in a bank. So I was like, let's go do it. For the money. That's amazing. That's amazing. How big is the team? I mean, it sounds like you've already scaled this business a little bit. Yeah. So we're a team of four right now. Okay. Focus is very important. Yeah. So when you're asking where does humans perform better than AI, that's what we're testing. Whenever AI does better, we'll automate it. But if not, we have us actually doing that work. We want to be very thick into the workflow, understand the problem, and at the end of the day, my reputation down the line is not the AI SDR of Troxy. It's me. So we're showing face in front of our clients and ensuring that this works. Yeah, that makes a ton of sense. Well, good luck to you. Amazing, guys. Thanks for popping on. Cheers. Nice meeting you. We will talk to you soon. and we will continue our coverage of YC Demo Day 2025. We will bring in the next guest. I see some people out there. Come on down to the Palace of Party Rounds. Tell us about your company. How you doing? Morphic in the studio. I see one hat. Let's go. I got to give out a second hat. How you doing? Welcome to the stream. Good catch. Come on down. Good catch. Who are you? What do you do? We are Morphic and we build open source multimodal search for AI agents and applications. Okay. Open source multimodal search. What are, give me some examples of the multimodality. What are we searching? Because some of these datasets, I'm imagining if you're trying to search over YouTube videos, YouTube's going to shut you down if I'm trying to search across that. No, that's a great question. So for multimodality, it includes not only like just plain textual documents, but documents that might have pictures, photos, images embedded inside of them. Yeah. What a lot of other people approach it as is, Trying to do OCR parsing on top, but that doesn't work because documents are- yeah, PDFs are a nightmare. The PDF spec is a disaster. We know this. We've done this for decades. It's not getting any better. Adobe, clean it up. What we do is we take pictures. Pages directly as images and retrieve over those. That is much higher accuracy, much better performance. Yep, very cool. Are you guys going to be able to fix the Photos app? Searching photos, very hard. gives us a shot. Yeah, yeah, yeah. Give them a shot. Give them a shot. It does seem like they're trying to do that type of multimodal search on cross of it, but they're just not there yet in terms of like, I'll be searching for, you know, a dog jumping on a couch. I know that I have it in my camera roll, but it's a video and that scene happened later and they haven't indexed it properly. So lots of opportunities. Talk about where people are implementing this. Is it enterprise private data sets? Is it public scrape the web? I want to search everything. Narrow it down for me. It's a little bit of both. The most adoption is in the legal tech space. Oh, interesting. Also in the health tech space. They have lots of documents with tables, charts. Patent drafting, for example, has a lot of technical diagrams in there. Yeah, of course. And it works really well for those people as well. Okay. Talk to me about the other major players in the space. We saw Glean yesterday raised, what, $150 million? It's $7.2 billion. This feels somewhat adjacent. You're kind of eating off their plate a little bit. Is that a direct competitor or? Is there something different where you can play nicely with them? Yeah. So I mean, the kind of benefit for us is that we provide APIs and we're much more of a developer to it. Sure. And the way we see this going is actually not as a competitor to Lean, but more of like a provider to Lean. Okay. Right. And not just Lean, but to people that are building like Cursor for X and you need to deal with multimodal documents. Sure. That's exactly what we can help you with. So we're starting with Search, but that's not it, right? One of the things that cursor, the reason why tools like cursor and coding agents have become really good is because code is low entropy, which means you can predict well into the future what code is going to look like. One thing that we can do is help you get that low entropy with multi-modal information. And so what video editing looks like, kind of like three or four steps in the future, if I cut a clip and cut another clip, I kind of know that I'm going to delete the thing in the middle. And so if you can, use that and essentially provide that to models as like code that ends up like performing a lot better. And you can start building cursor for video editing and you can start building. How did you guys meet? What were you doing before YC? We're both brothers. Oh, no way. Yeah. Before YC, I was a software engineer at MongoDB. Oh, cool. And this guy dropped out of the open source thing, tracks. Dropped out of where? Exactly. Cornell. Nice. Very cool. Yeah. Talk to us about the open source strategy. How closely are you mimicking MongoDB? earlier on the show that MongoDB didn't have a managed service, a SaaS product until they almost went IPO. Are you planning to monetize the open source program earlier? What is the play between, am I using the open source version or am I paying you look like? Yeah, good question. The way we see it is for people who, if it benefits a single community member, then we want to open source it. If it benefits it with a team, then we want to leave it close source. Interesting. So things like SSO, things like connectors like Google Drive, et cetera, or maybe like speeding it up for sure, like making queries much faster. This is all going to fall apart when people start building one person billion dollar companies because you're going to be like, it all has to be open source because you only have one person. That's true. That's gotta be a good problem. That's a good problem to have. But digging in more into the open source, what's the traction been like? Do you have a GitHub project that has a lot of stars? What are you tracking in terms of rollout? 2,600 stars today. Congratulations. That's fantastic. 4,000 monthly downloads. Amazing. Thank you, Jordan. 200 active deployments in production. Fantastic. There we go. Audience is probably mad at me in the chat for that one, but it's amazing. Yeah, it's fantastic. You guys came into YC with this specific idea, or did you iterate to it throughout? We came in with a much broader idea. We weren't too focused or indexed on multimodal before. We were like, hey, just we want to be the data layer. What sort of helped us was trying to narrow down on the multimodal aspect, seeing how people are building more and just building on from there. Did you always want to start a company together? Yes. That's been a dream since we were kids. Incredible. Incredible. That's great. How's fundraising going? Fundraising's going well. We're kind of close, but yeah, looking to do it faster. Well, congratulations. It's been great chatting with you. Good luck on the next stage of your journey. Very exciting. We'll be following along. We're excited to use Cursor for video whenever that-- that would be huge. Send them our way. Yeah, they'll probably build it on top of your company. So thank you so much for stopping by. Sounds really good. We'll talk to you guys. Thank you so much. Thanks for coming on. Do we have anyone else? There's a little bit of lunch break going on, giving you some inside baseball here at YC Demo Day 2025. But we have one more team. They don't need to take lunch breaks. They're owning purple. They're working purple. They're owning purple. And the pit vipers have made a return. I think it's all one pair of pit vipers in here recycling. We know the pit viper found its way back. There's not enough color going on here. Let's put on some yellow hats. There we go. Let's just really get crazy with the fever dream that's going on with the orange, the purple, the yellow. We love it. What are you guys up to? What are you guys building? We're building automatic technical documentation for code base. Okay. So saving 30% off employee time. Okay. Explain the first customer. Are you going after larger enterprises? Are you selling to other YC companies? Yeah, ideally to enterprises. But we're starting off with Series A, B, onwards companies. Majorly because that's when you start onboarding people. You need internal documentation to actually give technical specification for your product, so on. So, yeah, initial focus is Series A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y, Z. Specifically for companies that are delivering APIs that they sell access to. Not just APIs, but any sort of, right now it's a web application, but any sort of application in theory. So like API is part of it. Yeah, there's a number of open source projects that kind of allow you to stand up a boilerplate for open source documentation or API documentation. How is your product different? What are you hydrating? Because at a certain point, if there's kind of internal sacred knowledge around how an endpoint works, you have to get that from the person that designed it. Or can you instantiate everything from the code? Yeah, that's the plan. The idea is for us to not depend on one person. The idea is we actually go across the organization, all the code bases, and understand those technical specifications in the background. So there's no dependency. How are you dealing with security? I imagine that if you're going across all the code bases, all of a sudden there's secrets that could leak, there's internal tooling that they maybe they don't want to have out there in their documentation. How do you think about that? So we make it completely self-hostable. Okay. So especially for an enterprise, they have to be compliant, the regulations and so on. So we completely make it self-hostable. People can actually just use our product like it's packaged. So you can spin it up, put the repositories in and nothing leaves their network. How did you guys get to YC? Like in terms of the place? Yeah, what's the backstory? Car, plane, whatever. What was that means? I mean, through plane, that was the last time. I've known this guy. We've been through so many places. I've known him for about 10 years. We met in uni, hackathons, tons of projects. Very cool. And to get to YC, just a couple failed applications and here we are now. Always a story. So many. Everyone has one at least. How's the traction been? What are you sharing today? Yeah, so we launched about two and a half weeks ago. We already are around 3,000 in revenue. Congratulations. There we go. We have a Six, six, seven customers now. So we are, yeah, it's going well. We have, we're increasing 30, over 30% week on week actually. There we go. We can't wait for week on week. Just do that for the next like a thousand weeks. We're gonna go, hopefully, yeah. Then we need to raise again. Nice, how's fundraising going? You guys in the midst of it? Yeah, we are about 40% there, 40-50% there. So we're getting close, hopefully. Yeah. What is just you on the team right now? Do you have anyone else? Just two of us. Okay. Keep it that way for a while, or you think you'll start really scaling up? I mean, we are thinking of getting people on board, but yeah, we want to make it, we want to keep it lean. We're trying to automate documentation, so. Yeah, you gotta live it. That's great. Well, thank you so much for coming on the stream. Thanks, guys. Awesome day. We'll talk to you soon. Bye. And we are ready for our next guests coming into the Palace of Party Rounds. Welcome to the stream. The hum of YCDemo Day has died down as people move across the street to lunch. Good to meet you. How are you doing? Nice to meet you. I'm John. Nice to meet you. Pleasure. Nice to meet you. How are you doing? What's happening? What's happening? Big day. Yeah, it's a big day for us. How'd the pitch go? Smooth. We're gonna be in the afternoon. Okay, now are the nerves. Good luck. Are the nerves. Honestly, we are using Yeah, alumni I use. They do a good job of kind of like getting you so many reps that it just feels like anything else. Yeah, honestly. They work you up to it very easily. Introduce the company. What are you guys building? So, I'm Francesco, the founder of Kua. Alessandro is the CEO. So we are building computer using AI agents. Okay. Meaning AI agents that can solve any problems like a human would do in the terms of clicking, typing, scrolling. Okay. What At what layer of the AI stack are you working at? Are you sitting on top of just like a Chromium instance, or are you actually sitting on top of something like a browser base? Or do you can keep people with them? We wrap an entire operating system in an isolated environment, kind of like a Docker for the user agent. And that means that we can use system level events for injecting these commands like click type and really any mesh or PowerShell Yes. And then what's working in computer reuse right now, there was theory that you just read the HTML at some point. Now there's more multimodal image generation, like actually take a screenshot, process that, understand where to click, what's working. Yeah, so screenshot is working way better than Accessibility Tree for operating system in general. You don't type any HTML, DOM to parts, really. You don't press any system. You throw it all out. We just like use screenshot and pixel based models for that. And it's also being proven by research that's working way better than interacting with what categories of agents are you guys seeing the most, you know, having the most excitement around traction? I think anytime you're building a gentec infrastructure, you got to have companies that are building great products on top of you. That can be a challenge, but I'm sure there's a lot of other companies companies in the batch. Yeah, yeah. So we haven't chased any verticals, meaning that you haven't chased any verticals. Any verticals. Okay. Meaning that we had to build the tools and figure out what people want. Yeah, exactly. Because like actually we first month in WayC, we were getting the most esoteric ask from the users in terms of, hey, I have this bunch of contractors that are simply trimming videos on video editing software on macOS. Can I use CUDA for that? Sure. And like really we couldn't converge to like very common workflows and that's why Companies that are our customers are chasing those verticals for us. Okay. Do you see the market fragmenting? Do you think you will find a vertical and niche down or do you want it all? Honestly, we want it all. Okay. That's great. And we're here to talk about that. Then what is the, what are the key deliverables that you have to optimize against? Is it speed, reliability, price, some sort of combination? How do you think about that? Like probably for computer use AI agents, we are still like six months away from the ChatGPT moment, maybe for browser use AI agent, that's still the moment is today. So once we get that level of intelligence for models, we need to come prepared with a very good infrastructure to scale this isolated environment. Because like our leap of faith is that five years from now, most of the AI agent A multi-agent system, we rely on API, maybe 80% of the scenarios, and the other 20% are going to be based on browser and computer tools. What were you guys doing before this? I was working on Microsoft for over five years. Oh, cool. Awesome. Myself, I was a Notion and I built also a few startups in the past. Nice. Are you guys Italian? We are Italian. Nice. When did you come to the US? Three months ago now. Three months ago. For YT. For YT. Crazy. Crazy. How's it been living up to expectations? Yeah, definitely. People ask me, Ferrari or Lamborghini? People ask me, how is San Francisco now? Is it better? And I don't have any comparison. How old were you when you knew you wanted to do YC? I think it was pretty recently, like three years ago now. Okay. Yeah, for me, maybe since I was 16 and I'm 26 now. Wow, so it's been like a long dream for me. seen still like, see, I don't know if it's reality or not, but yeah, it's just like living the dream. What's the go-to market been like? So the go-to market right now, we've been focusing mostly on startup and scale up because we wanted to prove that we were on the right path and eventually fail also faster. But we have an open source framework of 8K stars. Whoa. 8K stars. Oh, you hit that. You buried the lady on us. Darry to head the league. And please go and start already. Yeah, yeah, yeah. You can head over to GitHub right now, give it another star. Yeah, try Kua. That's amazing. Yeah, so yeah, I mean, what's the monetization strategy around that open source project? So we, like first month in YC, we were all these customer inbound that were basically asking us, how do I even productionize on a computer is our agents today? so we are providing a pathway for the user from the open source to bring in the same workflow that are working locally for them and scale them on cloud. So we're really charging only based on compute today. You simply have to input an API key on our platform, but what's going to happen also for us? Are we going to become a LM inference provider for these computer vision AI models? Because maybe the public sense is that there are only two computer vision AI models, maybe the one from OpenAI and Anthropic. Yep. And that's only because they have a better PR office than other models. But honestly, like even on Agence face, you'll find models from BIDANCE UI/THINK 1.5. That's also outbeating OpenAI and Anthropic on computer benchmarks? On computer benchmarks, like OS word. Sure. And they are so hard to set up and also hard to discover. And also we're going to be the go-to catalog and platform where... Yeah. How good are the evals right now are the benchmarks for computer use? It feels more abstract than just, you know, do some math problems. Yeah. So I was actually working with the Windows team when I was at Microsoft doing a build for computer agents on a benchmark called Windows Agentrina, which is derived from OS word. Really like this benchmark, they like tasks are not very meaningful. Like for instance, you will find tasks like, hey, can you go and open VLC and add subtitles? We're using VLC any, any, any. So that's the question. Even like using LibreOffice in instead of like, or even Google Docs. So what's gonna happen? My leap of faith here is that the next generational benchmark will measure like real-world tasks. Yeah. Do you think there'll be a sort of like LM arena style benchmark where a human is watching two computer use models use computers and there's kind of like a vibe check almost? Yeah. Or even like a Wiki Race where you have like a-- A Wiki Race. Yeah, yeah, yeah, yeah. Even like, yeah. Now, okay, so Wiki Race is like, you know, you start with Y Combinator and you have to end at Christopher Columbus. And how many clicks do you have to click to get from one to the other? So you might say, why see San Francisco? San Francisco is America. America is Columbus. And so you try and race through. And yeah, it's an intelligence test, but it's also, yeah, great computer use test. That's hilarious. Yeah, but also, I mean, I imagine that there could be like a big model smell, like a vibe check on the computer use, because if it looks very jerky and it looks confused, that's something that might not even come across in a quantitative benchmark, but a qualitative human might evaluate it differently. Interesting. And also there is this whole problem, okay, I have this workflow that now is working maybe 80% of the time, how do I make sure that I'm able to reproduce the same kind of workflow all over again? So we're also working on episodic memory that will let you basically use RPA 1.0, the old-fashioned RPA and UI automation for-- Workflows that are very deterministic and then say that you have a deviation from one trajectory due to noise or changing on a web page. Then that's when you use full computer use. When it really makes sense. That makes a ton of sense. Any other Italian YC founders? We haven't met many. Are you guys hometown heroes back in the Italian tech scene? You gotta go do the local press. Now you're in YC. Bulgaria. celebrity over there. Yeah, yeah, that. And over here, you know, couple 100K. There is a wise key WhatsApp group now. Okay. They're aging like this week on the mountains. Oh, yeah. That's reason enough alone to apply to white. Yeah, yeah. But then most Elite group chat. Yeah. Yeah. Yeah. Anyway, thank you so much for congratulations, guys. We will see you. Thanks so much. Let's bring on the next. Do we have, who do we have next? Oh, Delian! We were just talking about you. What's up? How you doing? Oh, you got the hat on already? I got the hat. Oh my gosh. Let's go, baby! Shots fired. Shots fired. I can't believe you hit him with that. We've been doing that when we hear, like, big numbers, big ARs. We didn't bring the gong. Should I, so I was a Y Combinator summer '14 company. Oh yeah, that's right. Do you want me to go through my Summer 14. Please give us the pitch. So hi everyone, my name is Delyan Asenov. I'm the CEO of Nightingale. We build software that helps autism therapists that work with young children to basically help them capture data on those children's behaviors, pull that into reports that you then send off to your insurance companies to get reimbursed. Today, all this is done by paper and pencil. Super manual takes these therapists like 30% of their workday just doing a bunch of bureaucratic actions. We cut that down, make it super fast, they get reimbursed more quickly, and they get to spend more time with the kiddos rather than on a bunch of paperwork. I was about to say, cursor for autism. Cursor for autism. So if you ever wonder where all the autism came from, it's because my first company, literally all I did was spend time with autistic kids. And so, you know, if I had some in me already, it got amplified. How did your demo day go? Did you raise, like, what was it hard to raise back then? It feels like everyone here can put together a million dollar seed round. What was, what was like the, The comp that you use. A lot of YC companies obviously like to give Uber for work. Uber for work. And Anderall for dog walking. Yeah, and like summer 14, you have to remember at the time, it's not like there was a ton of healthcare SaaS things that had worked. It's like you had like Epic as like an EMR that were obviously done super well. It was Epic, the story fully. Yeah, and we weren't really any EMR. So honestly, I think, you know, I remember like Sam, you know, at the time, 'cause he was like the head of YC back then, you know, two weeks before Demo Day, basically told me like, your pitch is fucking trash. And then I went, And, you know, we're gonna say this on live stream, but, yeah, I took some psychedelics on a weekend and, like, you know, really thought about my pitch, you know, for that weekend. Made a lot of improvements. And then Sam afterwards told me he was like, you know, relative to where your company's at and, like, performance, phenomenal presentation. Wow. But phenomenal presentation in 2014 turned into, like, 600k seed round. That was a fucking grind. Grinding to get to that round. Yeah, I was like, still two months after demo day, like, you know, doing individual calls. Crazy. And it's just like, when you look at, like, the amount of capital that's like, you know, whatever, like, the next next door building. There was like a two, somebody said there was like a two hour wait this morning. If you tried to show up like right at the start, there was like the line was like two blocks down. Summer 14, like we like filled up like a small little like area, like cocktail area in like the Computer History Museum down in there. So it's like, I think if you had just given 10 grand to like every batch member with you, you would have a billion dollars now. Yeah, I think Summer 14 did have some hits and I have to go back and remember Summer 2012, my batch had a ton. Coinbase, Instacart, that was a gap year. That was a gap year. Yeah, it was a good batch, a bunch of good ones. But yeah, it's interesting to study just like, I feel like you can use Demo Day. This is my first time coming to Demo Day in like, I think seven years or something like that. Partially like in 2018, I went, spent a bunch of time on it, and honestly just like didn't lead to any investments. And so I was like, at some point, what am I doing here? And obviously COVID really killed it off. And so excited to be back. But it's also an interesting just like marker of like the industries, you know, sort of maturity of just like, The amount of companies, what the companies are working on. Now also the amount of comps that you can look at. In 2014, if you had said my comp is like I would like to be a $100 billion publicly traded company, it's like, okay, there's basically two of those in the entire history of technology. Now you have to come because people are doing Varta for X. You got to track those guys down and figure out how to acquire them so we have a Desi Varta. Yeah. Have you seen any of the hard tech companies yet, any of the pitches? Gary said like 11% of the batch is hard tech. Yeah, yeah. It's interesting to see like, I mean, I remember in like 2018-19 when I was doing like hard tech, industrials, defense, aerospace, it was just like so uninteresting to so many people. Like they would all like literally like, you know, we talk about this like ever in my former colleague is just like, oh, like if anything is like, you know, negative gross margins and like highly CapEx intensive, send it to Dell and he like said that as a joke. Yeah. And then everybody's realizing like, actually CapEx intensity is like the best mode ever. Because like if you just build software, AI SLOP can replicate it basically overnight. So yeah, I definitely looked at it, you know, shameful of them. I think it's cool to see that like YC's leaning into this because it's not something that they've- They also did a couple hard runs with like Pebble was a really big, like hard go because like they got so Sherlocked by Apple with the Apple Watch. Totally. Yeah, what are you gonna do? But at the same time, like there's been now like Astronauts and Oaklo and like a few really even harder tech companies that have made it through and scaled. So Astronaut said, do you think is like the best? Like, Oklo obviously, like, you know, sort of trading, but like, you know, hard to figure out. Yeah, hard to figure out, but Astronaut feels like it's like it's got some, you know, sort of real momentum. Like, you know, you go to buy works is another one that's like 300 feet down. Yeah, yeah. I admit though, like, look, I think like, I mean, if you look at, you know, the like, YC deep tech, you know, sort of portfolio and like hit rate and outcomes relative to like the FF or Delian seed deep tech industrial portfolio, there's definitely one that I would want to buy in the basket. pick it up and one that I wouldn't. And so, you know, I, I mean, maybe I shouldn't be speaking. Maybe Gary's gonna kick me out. I think like the bold case is that like, like it is great to have exactly what YC is, which is an incubator and accelerator, like a pool for that type of talent to come out of. And if you wind up picking over at it at some point, like that's fine. And then actually part of the ecosystem. And yes, like you're gonna get earlier stuff, but it's nice that there's at least an ecosystem. Some of the people that go through YC with hard they might become employees at these companies, they might become acquisition or acquihires. It opens the Overton window for like the average day trader to like not just work on anything else. How many multi-stage VCs have pulled back from doing demo day investing at all and just saying, you know, we're not going to try to go. I mean, I feel like in like, you know, sort of 2019, it was like the consensus thing. Like at some point, like everybody was like, why are we doing this? It's just like way too many companies that like, you know, sort of seed rounds, you know, feel like and again, You know, maybe Gary's gonna kick me out for this, but it's like the seed rounds felt like they were really overpriced, and especially as a multi-stage firm, it's like, well, you can just wait for the series A and like on a risk-free, it's not like the companies are going to die if oh, yeah, there's so many YC specific funds that would come in and just write 100K check into tons of companies. So like everyone was getting their rounds done. But yeah, I mean, yeah, it just speaks to like how they're playing. Also, there's this weird dynamic where YC used to say like, I don't know if you got this advice, but it was like, pitch any investors until YC Demo Day. And then everyone was like, oh, well, like, the game theory is like, if I'm the only one pitching before demo day, I should do it. And so, and so, like, there's still, like, I'm sure, like, you will, you will take a pitch with a YC Demo Day founder a couple of weeks earlier because they're inventive and creative and they got to you before. Totally. You just might not find them through this. I do think there's some amount of, like, a lot of the, like, you know, so companies have already closed their rounds by, like, the time this happens, which was very much so. not the case in 2014. 2014 is like, oh, maybe one company the entire batch. And by the way, for what it's worth, if you study those early batches, there was basically an extreme negative correlation between the ones that raised early and that actually ended up being the batch returning sort of outcomes. I remember there was one company in YC Summer 12 that had a super viral video because they were in the viral video making business, and so they got a ton of attention, and they'd also kind of ramped revenue by saying like, yeah, well we'll produce a video for $100,000. Like that's not really like, like durable scalable revenue. It was clearly before Cluey. It was clearly before Cluey. And they raised $60 million round before demo day and everyone was like, what's going on? Cluey is sitting there, it's like, did you see that ad? It was a company called CoTool. They did like a skit based on the deal rippling thing. No way. They went to a prank on it. You got to see this video. It was hilarious. But they're in this batch. Yeah, yeah, yeah. They have a service that will monitor slacker chats for honey pots and create honey pots for you and do all this different cyber security stuff. It's great. I think back, I just had this memory from 2017 when I was at Coastal Ventures where like, you know, Vinoda basically have like the junior team go through and like crawl through the entire batch of like everybody, like the week beforehand basically. On the Sunday night before like the, like, you know, she had a Tuesday demo day. We would invite like 15 companies to present at KV on Sunday from noon until literally midnight, we would be there. I remember letting founders in at 11:30 at night to come pitch the firm. And it actually felt like we had this really deep R, it was an alpha, nobody else was doing it, et cetera. And then literally it's like, like you said, now there's these infinite YC funds where I actually just feel like the alpha there, on doing the pre-work, et cetera, getting into it. It's not to say there might not be some good outcomes, but many, many more people run that strategy. And then even the fact that something like this exists, the idea in 2014 that there'd be like, a live show that anybody would give a fuck about and actually want to tune into to talk to YC. Like, we could barely get anybody to pay attention to any of us, let alone the idea that there's like whatever gonna be like 15,000 people on Twitter. So yeah, this entire industry has just gotten like, you know, I mean like this is, we are like the new Wall Street. It's like kids grow up, you know, in like 2008 being like, I want to be like an investment banker. Yeah, the kid right here, I just said it. I knew I wanted to join YC when I was 16. Yeah, he's 26 now. So it's like decades. I mean we talked about this in relation to the like Thiel Fellowship where it's like in 2012, they're like off track thing to do was to like drop out, build a company, join an accelerator, work in technology. Now this is the track. And so we like need to practically find a way to make money. There's a high school drop out in this batch. Yeah, yeah. I mean at this point, like, I mean there's an article in Business Insider today by Julia Hornstein who wrote the article about, the first article about us talking about how like not just not even going to college at all is the new drop out. dropping out. It's like just the default. It's just the default versus like in my year at MIT, in my team, there was like three of us that dropped out. It's like, what a big deal. He has applied to college, get accepted, and then get the branding. Be like MIT accept E, but that's all the I had a whole riff on this. It's like, yeah, Delian, you dropped out of MIT. I knew that I would drop out if I went there, so I didn't even apply. Yeah, exactly. It's like, I just go to a different college and graduate. But it's just like, yeah, yeah, you're a sucker for even having gone for a day. You paid for a day. a five I could pay a full year issue I shouldn't got boom my thousand dollars back I could have put that in fucking in vidion I' be aillionaire. boomer. Anyway, thank you so much for stopping by. God to see you boy, see howball stom thannk you got some big new new investment from you coming on. lastm, we'll see you back to back days. Welcome to the demo day Sream twenty twenty five. It's good to meet you. How are you doing? I'm John. this me Dave Dave to kill. Did you photograph us out there? Was that somebody else? No, I didn't photograph you. Okay. Who was photographing your buddies? Someone else at GV, Han. Okay. He took a picture of us. Put us on the time. Oh, yeah, we love it. We love the paparazzi. It was good. It was good. Can you introduce yourself for the stream? Yeah. So, Dave Munichello, Google Ventures, our managing partner there. I've been there about 13 years. Yeah. Investing in AI and enterprise software from the early days. Lots of stuff to do here. Yeah. I was just standing in a room downstairs hanging with a bunch of folks. and Gary came in and said, hey, you got to go do this. I mean, I'm amazed. Thanks for joining on. I'm here, excited to hang. Yeah, what trends are you following? What are you seeing that you like? What's interesting? Well, first break YC into chapters for us from your point of view. I'm sure you're invested in companies at this point, maybe not on right around demo day, but in every batch show. I was in Cambridge in the early days in grad school when like Paul Graham and those folks were in Cambridge doing their thing. And so at that point in time, YC was like the cool place to be connected to. Totally. And I think, you know, a lot of us, I met, you know, a partner of mine that now runs our life sciences team, and I co-lead our digital team here at GV. We met in Cambridge, and we used to like get really excited about any Cambridge YC events. That's amazing. So the place has totally evolved. Oh, totally. It's a machine. It's two chapters. Totally. Was fortunate enough to do GitLab in the early days, so like knew Dalton from day one, and like Sid has always shared his enthusiasm. Patrick Collison, as a portfolio founder, comes in and talks to the batch, and then we hear the cool stuff from him. What was the perception around GitLab at the time? I feel like I remember it and it was kind of discounted because it was open source. GitHub was already such a success. It was like, how are they going to do anything when there's already this winner? I literally just stepped out before this step out to do the earnings call with the CEO and the CFO to do the call. Investor callback, because we're public market shareholders, of course, the company. Oh, wow. So we invested just after the Series B. We actually passed on the Series B. Oh, no way. And we had a bunch of concerns. And if I look at those concerns, they were-- Hold the mic a little bit closer, just angle it. Sorry. They were one of the first companies to be remote only. Oh, yeah, that was a word press. GitLab. Yeah. We're like, this remote only thing seems strange. How are they gonna run a company like this? Sid is extremely technical. And I think remote only works really well for him because of the way that he shows up as a human. But he writes everything down. And so that works for a subset of people in society. So he wrote down GV passed. Then he still let you in. I mean, we talked constantly, like passing out a company. It's just like this stage isn't right for us, but we want to continue to talk to you over time, right? What's your approach to demo day now? I'm assuming you don't have a lot of FOMO. You guys write bigger checks. We've met something like 30 companies so far. Okay, so you are writing checks even-- At this early stage, we write checks into YC companies. We love YC companies. So even though we're multistage, $100 million into a public company, we're just talking about, we also do seed and everything in between. A is our sweet spot, A's and B's. Great. We do an event a few weeks before Demo Day every year with all the YC founders. And then we know all the group partners, right? So they're constantly paying us with ideas. That's great. That's great. What is the integration with Google like now? We're entirely separate. Entirely separate. Yeah. So we raise capital from Google. They're our sole LP. It's an LP relationship. Yeah, because it's such an interesting dynamic because on the one hand, on the one hand, like that could be incredible value add. It's like, hey, we'll introduce you, you can sell into Google. The incredible thing is we have a stable LP that's there forever. Permanent capital, essentially. Plenty of capital and an appetite for risk. So we have a great LP that we have a half an hour conversation with every couple of years. Yep. And plenty of capital. Wow. We don't spend any time pontificating about where we think the market is. It's why I had to call our comms people before I came on here. It was like, we don't we don't usually do, you know, marketing or sure, sure, sure, like comms events or podcasts or stuff like this. Yeah, yeah. Excited to talk to you guys. Of course. But yeah, I think we're unique in that we spend all of our time with founders. Yeah. So I shared the like it's such a hack. I mean, I think you're the envy of every no matter how successful our GP friends and the GPs on the show. having a dynamic where 100 people could call you on a Saturday at 5:00 p.m. and you kind of owe them your time to some degree. And that's like that LP dynamic. I mean, I talked to obviously tons of friends at the GP level across different firms. It does keep them sharp. They get a lot of pressure from LPs, constant questions, deal flow, connectivity. I think that's really positive. But we don't have to deal with a lot of that stuff. And so we spend time connecting with founders and other GPs. what do you think the nature of those questions usually are? Is it just like trying to understand markets and trends and how the questions from investors? Yeah, I haven't really sat on that. I've been to like one or two LP days. So for both of you, what's this transformer? I didn't want to say it, but I've seen the movie. I mentioned this idea of like we invested in GitLab in the early days and now they're a public company. Hedge funds invest in the stock, call us to ask us for our perspective on the company. I'm sure. And they're thinking about like what happens in two weeks. And I imagine LPs are like slightly farther out. It's like 90 days, maybe. They're like, you know, what's happening today? What's hot today? Are you in the right deals? That sort of things. Our LP doesn't care about any of that stuff, right? So we don't have that conversation about like what we're in, what we're not in, et cetera. It's like, do you have generational founders? Do you have a particular understanding of how the startup landscape is interfacing with the Mag 7, the big tech companies right now. We're in an interesting time. The big tech companies, they all kind of like went from 100 billion in market cap to a trillion very easily. And it was kind of like it was kind of like the easiest 10x of their entire career, you know, in kind of some sort of unexpected way. You would think that would be the hardest one, but a lot of them just did it. At the same time, it feels like there's more opportunity for startups than ever, but the big companies have more resources than ever. What are you talking to founders? I mean, specifically around AI, we're wondering constantly, like, is AI going to make incumbents stronger? Yes, it's like a sustaining innovation. Totally. And yet I've been talking to companies that are doing millions of dollars in ARR over two days. That's right. That's right. And I think the question for us is, you know, does each incumbent, each big SaaS company, do they bolt on AI? Sure. Do they acquihire? I know. Yeah, we're seeing this with the wins. Every big tech company needs them. Yeah. It's the new hot structure. It's the new M&A. I'll take 49 and all your best people. I could do this valuation or double it and you get half. It's like the same number. But I think having loads of capital right now in a time when the seats are shifting in tech is quite interesting. The Mag 7 might be the Mag 70 in the next 10 years, right? Well, you might have a zero to it. I would like more big tech companies. We're on the side of big tech. And so, yeah, we want there to be as big as possible. I mean, this is actually little tech. The 70 would be little tech. We're fans of all of it. All of it. Just all of it. High tech. We're defending tech. Yeah, yeah, totally. Yeah, I think this idea that like people want to say AI is good for big tech or it's an extending innovation, but it can be good for both, right? It could be so transformative. Like the internet was good for some big companies that adapted well to it. It was good for a bunch of completely novel ideas. And so we don't have to pick one and pick a side. It can be an extending innovation and it can also enable all of this. I think we're in this exciting place where the most high agency humans in our lives that we're all connected to, they're empowered not just to have the underlying cloud be present for them, but intelligence be present for them. And so now they're building, I met a company out there that was one person, no engineers. Already have tons of revenue. Like, I think that, you know, he told me he's gonna be the first billion dollar company. Oh, he's going for it. I always get hung up on that because it's like, if you attach, if you attach, it does feel like a vanity metric. It's a total, I mean, it'll be amazing when it happens, but a total vanity metric that can, like, guide you towards bad decision making. It feels like it might, like, happen accidentally. Yeah, if it happens accidentally, it's gonna be something that's maybe delivered. Or the way to do it, but it's gonna be a billion in the lay off every other person but yourself. Yeah, yeah. The private equity guys are really going to be the ones that do it. They're gonna be like, yeah, we bought a 10,000 person company and we fired everyone except for one person. There are a few VC companies right now looking at VC firms that are looking at, you know, the PE roll up. Sure. Yeah. Something that has massive distribution. Have you looked at anything? We have looked at them. We have passed on a lot of them. I think it feels like a PE play where you're trying to like, it's hard to change as a result of the industry It's all a question of how big the I just look at this, right? A lot of the founders that are running that strategy, they just should change the structure and just say like, we're going to run a PE playbook here and we're going to be two and 20. We're going to be two and 20. Yeah. Because if you can raise 20 million on 100 for the strategy and keep like a lot of the economics, sure it's great for the team, but it should probably be like the basically the comp incentive structure should be look more like private equity. Totally. Totally fair. Yeah. You guys are friends with a buddy of mine, Sean McGuire, has been here a couple of times. Yes, of course. Sean introduced me to a founder on Friday night at like 9 o'clock over text, and I respond back and the guy's like, Do you want to meet tonight? Nice. Do you want to meet tomorrow morning? Like, I'll come to you. I live like an hour away, I'll drive to you. I'm like, that kind of high agency human is going to be empowered by, you know, an entire set of tools, a whole software suite. You know, AI will be the thing that powers all of these incredible humans that were sort of of meeting today for sure. Yeah, the thing I hope we get some more of these companies on, we've had a lot of developer tool teams on, I think this idea of like business automation is being heavily explored around agents. But we were talking with Dylan Patel last week and he says like the next category besides consumer tech, you know, with like LLMs, like, you know, ChatGPT, then you have, you know, co-gen as like big revenue categories and like this third category of of just actual business automation. So how do you just make the machine work? And everybody's thinking about it in the concept of agents, which is kind of, I think, almost a simplistic way to view these things. And what is the next iteration of that where it's actually an autonomous system that doesn't have to interact like a regular employee? So we'll see. Yeah, I mean, we're seeing it across an organization like a Sierra or a Decagon, Harvey is a legal AI company that we're invested in. There's some medical AI companies. So like every vertical has AI, but it looks a lot like a human. It's like replacement of a human. It's replacement of a human, but how do you replace 20 humans at once? Like whole function. Across cross functionally. Yeah. Do you worry when a YC deal that you're looking at gets hot, do you worry? Do you think it's a cat and mouse? No, I don't worry at all. But I mean, historically, you know, if I think if you do look at the data, a lot of these companies that some of the hotter companies at demo day don't end up, you know, always I mean, we're investing in super hot companies at the A and the B and the most sought after companies get marked up incredibly. Right. So it's a sign of the heat is a sign of enthusiasm from great people, talent, opportunity. Totally. Yeah, totally. And so like you have to if you're if you're choosing to get exposed to that asset class, you have to be willing to pay the price to enter that asset class and play in that asset class. Here, the challenge is that you have like three months of data. And so you're talking about the company that grows revenue the fastest in two weeks, three months, whenever they actually launch is not necessarily the company that's going to grow revenue the fastest over two years, three years. We've seen that a bunch of times where we invest in a YC company and then after demo day, it kind of chills out a little bit and then it accelerates. There's a standard in the founder's batch. Yeah, totally. Founder in this batch that raised, I think, like almost $8 million of uncapped convertible notes. And so it's just like humans. Dog. An absolute dog. Incredible. He's an incredible founder, incredible team. And like, I understand why people are sort of leaning in to working with him. But that has to be pretty difficult. Yeah, yeah. You're thinking about that next call in a year or two with Google being like, you know, trying to explain, like, you know, Entering a party round on an uncapped note. It's easy to do. Our investor literally has no visibility in the deal. Yeah, sure. That's good. So maybe it's easier for us. But for us, the thing that we care about is we want to be your lifelong partner. Like the thing that we think about for founders is how can we be for them there for them over every round and into the future. What's your messaging around signal risk? Because I think there's this, if you're truly a multi-stage fund, you could do an early round and you you could say, you know, we're good with our ownership right now and like we're going to help you raise this round. But we actually, I think this concept of signaling risk is like totally possible for you to want to invest in a company today and three years from now. So just because you don't do the in-between rounds or this is the exact conversation I was having when Gary walked up and said, Hey, should I talk to these guys? So I was talking to NeeRaj from General Catalyst. Oh, yeah. And we were chatting about like, do you play when the price gets to an uncomfortable place. What signals that send? You're essentially sending a signal to the market that your firm is excited about this company. They have a separate seed program. So they can kind of categorize this as like, this is a seed bet. We're going to put $1,000,000 in this company. We'll see how it goes. We don't have a separate seed program. When we do an early stage bet, we use similar criteria to what we use in the A. Obviously they don't yet have A metrics, but the question is, if they had A metrics, would we lead the A in this company? So there is a big signal when we do it. So it makes it harder for us to do like 30 or 40 companies. Yeah. We talked to 30 or 40. We might do a handful. Yeah, it makes sense. Very cool. Well, thank you so much for having me on. Thank you guys. Thank you. Good to meet. And we are ready for our next team or individual or investor or yapper. Who will it be? We will be surprised because we are at YC Demo Day 2025. Welcome to the stream. How are you doing? Good to see you already have the hat. Hi. Hi, how you doing? You're on live, you're on a live stream. You'll need to introduce yourself. You can wear your hat. You don't need to wear that. Whatever you feel. Yeah, don't wear that. Thanks, man. I'm John. John, what's up? Andrew, Jordy, how are you guys? Introduce yourself. Hi, my name's Andrew Lee. I'm a partner at Andreessen Horowitz. Fantastic. Both working in the games fund and also at a16z speedrun. Very cool. Are there any games companies here today? There are no game companies here. None. Which is somewhat sad. Because they just sucked them all into Steam. Yeah, they're about like, hey, it's your fault. There's about four or five of them. I would say that for YC, there's about four or five consumer companies, which is pretty good. So you can look at those. For sure, for sure. Four or five in the whole batch. I mean, there's like five to six-ish. But here's the good thing. I mean, like, there were a couple companies who previously in the past were like B2B companies. They're like, you know what? This is really boring. Yeah. I don't wanna do this. It's really fun. And a number of them like ended up in gaming, and they ended up Entertainment, so that was exciting. And then also, I just generally think that like, if you're gonna build something that's, you know, your mom or your 17-year-old D-gen friend is gonna go ahead and play, then yeah, you know, it makes sense for them to go ahead and build B2B stuff as well. Yeah. I wanna talk about the Games Fund. I've been super interested in how hard it is to get into the hot games because they kind of blow up out of nowhere. Yeah. Like, you're like getting on a plane to Sweden. It's more like investing in movies. By the time you get there, they've doubled ARR. Yeah, yeah. There was this Balatro game that was a massive thing. There was Among Us. Was that the one? Yeah. I mean, that was probably one of the top ones ever played during COVID During COVID these kind of flash in the pan games that become very viral, but I don't understand if they're necessarily good businesses. So how are you thinking about finding great games or games-related companies or even just consumer companies? What are you looking for? Because the signal seems so much more noisy than in If there's noise around an enterprise dev tool company, they're probably selling that and it's probably going to be pretty sticky. Whereas Balatro, I don't know, it seems like local funk, I think his name is fantastic developer, but who knows if that's going to turn into Activision? I think fundamentally for us, the way that we tend to think about it is there's a couple of different things to care about. One is that if there's a large audience that has a bunch of folks that are going to play, if you do one innovation in that audience, that makes sense. For example, big fans of League of Legends if you're all out there. Oh, yeah. If you're trying to create like a MOBA that sort of makes sense. Sure. But I think that for us, honestly, the big wave we see is in the world of AI, right? Whether it's like changes in 3D animation, we fundamentally think that the future of entertainment is actually going to be there's going to be an AI Pixar. Mark my words, someone's going to make an AI Pixar. It may not actually even be Pixar. Right. Because usually what happens is we tend to think that like an incumbent, for example, like, you know, Disney or something like that. Exactly. Is going to make like the next thing or potentially take the next wave. But I don't know if you guys see any of these Veo videos. Oh, incredible. I mean, the Bible bros, the whatever, like Stormtroopers walking all over the place. I'm like, it's astounding. And I don't think that's something that could ever occur. There's like a sort of innovator's dilemma that's occurring with the existing folks. So even just from like a PR pressure, like, I don't know if you saw that show, the Studio, there's this whole sequence where they're very worried about the casting for this new Kool-Aid movie, and then it is revealed that no one cares about the casting. All they care is that they used AI a little bit and it's this really hot button issue, there's massive PR backlash. And so that's this counter positioning where if you come to the market and you say like, yeah, we're an AI Pixar, we're just making AI stuff, you don't have the expectation. People expect Pixar not to use that. That's right. How are you thinking about investing at the game layer versus kind of the infrastructure layer? It feels like there's a bunch of new tooling around just creating these generative worlds into games. And is the is the roadblocks of AI roadblocks or is it something, you know, new? Yeah, it's interesting because I think the thing is what we've seen is well, we go where the founders go and it seems the number one area that the founders are going is into more tooling and primarily using AI. I mean, there was a bunch of stuff. There's still a ton of, I think, experiments happening in the web three layer, potentially in the content layer. But the main problem is honestly, is that distribution is tough. I don't know if you guys are like invested in any consumer companies lately, but it's hard. It's hard. It's hard because there's a reason why every DDC company has basically had all their margin eaten by all the big tech companies, right? And fundamentally, I think that's the same problem in Steam, which is usually the platform for folks who want to build games, is not nearly as liquid as it possibly could be. Sure. So as a result, I think the thing is the one thing that I think we've seen that's a very positive out there for Liquid-- as in there's not enough demand coming from Steam itself. Or really that your ability to get more bang for buck Right? Like that it's fast enough that you don't have to pay a huge amount of marketing spend. It's gotten a lot tougher and you should be very good at it. So there's great teams that are able to do that. There's a lot of gaming going on on there too with like wish listing, driving early sales. And so you're paying people to wish list your product and it's like there's kind of schemes on top of schemes. Right, right. And the thing is like, I think we could do it. I mean, like there's definitely people who do that, but it just seems that if you create a 10x product that is able to grab some great cut consumers out there, That seems to be something that has natural growth. I mean, I'm sure we're all familiar with Midjourney. That was built on Discord. Yeah, yeah, yeah. Still in building Discord. It's not as if it was something that naturally would have grown. So the thing is, I think the, and obviously I'm talking about Veo because that's like my latest thing that I'm just doom scrolling on every single night. But when you can basically grow from zero to all of a sudden 120,000 followers with four videos over the course of like two days, That's amazing. That's an astounding thing. And if someone is able to do that, that shows me that there's like a natural consumer pull. And that's the thing that's pretty interesting. So mark my words, I still think that there will be an AI Pixar. I also think that fundamentally the world of AI, tech and entertainment are going to converge and we're going to basically see somebody create that 10x product that then hopefully just basically skips all the distribution problems. Sure. But I don't know who might know. Are you seeing enough weird? Stuff, right? Like there's this concept of like, you know, kind of trying to leverage AI in the sort of existing paradigm, but when you think about the intersection of like tech and AI and entertainment and sort of like, you know, I can just imagine like entirely new ways of playing games. You already have kind of seen this on some of these, you know, people basically creating games within games. But yeah, but are people being, are people being, Like, is the average pitch, you know, really trying to rethink things from the ground up, or is it, hey, we think we can build the next candy crush? Yeah, I think a lot, well, for us as a fund, we'd want to obviously have people who are going to be willing to build the next unicorn company. But that doesn't mean that I think great developers out there won't create amazing experiences. I definitely agree with you that you have to basically aim for the weird. Like, you have to do things that are basically in the frontier of what's possible, because otherwise then what you're doing is, you're most likely just basically doing a MeToo, which is then hard because in a distribution channel, we have to basically pay for your customer acquisition. That's super hard. I think something that's also pretty interesting that I was telling some folks about was that the one thing that's interesting about both consumer experiences in games is that if there's a limitation, take for example on, let's say that you can only network 20 people on a server together, right? Well, the way you do that then is you just make it so your game has 20 people playing all at the same time, and there's called Fortnite, and then 20 people have to kill each other all, and then it eventually ends up with only 20 that you'll be able to go network with each other. Sure. So the good thing is you can just basically change, it's not like a bug, it's actually a feature. That's kind of interesting. Yeah, yeah. But I think also generally what we're seeing in AI though is when it's, you guys are probably familiar with this, which is the sort of cycle between B2B to the app side, which is basically you have B2B infrastructure that allows you to, for example, to create really powerful video models. That then allows you to have apps that use those video models and then create content that create new network models, for example. And then that leads into other things happening with the Infralayers. We're seeing a lot of that happen. Unreal Engine was a BB play. Exactly. Birthed Fortnite. And then there's another company in the Andreessen portfolio that does kind of like world scale sharding so that you can basically build a big MMO that you can walk through. I forget what this company is, but they were doing Some scientific computing and some economic analysis. It was years ago. But there's obviously a lot of work done on the infrastructure layer. And are they going to be the one to build the next great consumer game? Maybe, maybe not. Maybe it's built on top of their platform. What are you seeing in VR? Oh yeah. In VR, let's see here. There is one great company that came through before from Speedrun in the past, and the very first one was a company called Trass Games. Okay. you know, it's one of those things where basically, I think just like people grew up in the mobile generation, you need to have people who grew up in the VR generation. So if you talk to anybody who's under the age of like 16, most of them will be like, I play a lot of VR. Really? And it's crazy, like they all go home, they just play VR a lot. And they have to obviously have the device installed. But for them, they spend a lot of time there. So we backed this team that was like a bunch of teenagers who like, they won a bunch of Apple awards, and then they're just like, look, we just spent all our time in VR. So they built a game that basically is taking one of the bigger ones, attacking one of the bigger ones, which is Gorilla Tag. They made a game that is astounding. Their most recent game, actually, it's called Yeeps. Yeeps actually has, you know, I can't describe it because I'm too old. But basically it's like, you know, we're all in a world together and we get to go and do stuff together. But then we all collect Yeeps. We Yeep at each other. Okay. And it's like, We're Yeeping. Yeah, we're reading all the shout outs to all the Yeeps out there. But they're doing great because the thing is, I think ultimately it's not just a hangout spot for a lot of these kids, but it is ultimately taking advantage of, you know, what VR and the general install base. I think I still think that like VR still needs like a shot to the arm in terms of, you know, we all know this, that it probably needs more installs, it probably needs a find a way there, but it needs like lower churn and relics, to the device sales. That's right. That's right. Or the device sales have to be way less expensive. Yeah. Or find a way to, you know, just get as good of sales as the Meta Ray-Ban glasses potentially, right? We need VR games that are truly addicting, not just novel. Yeah. Yeah. I was really hoping for the first you probably shouldn't. I mean, I remember I remember and the kids love it too. With the original PlayStation, like Metal Gear Solid, that game was like 100 hours or like Final Fantasy 7. That was a 100 hour experience. GTA 4. That was like a 100 hour experience. And I've played a lot of VR games, have yet to find one that it's like, okay, the progression in this game is so addicting that I need to keep putting it on to play. It's like more like, okay, it's a cool demo. I set a high score. Okay, I'm done. I'm not like, I need to finish this. I need to know where the story goes. And it's hard because it's a very expensive investment. I think that's why it's easier, honestly, if you're going to innovate in the world of entertainment, to innovate on that B2B layer, which is where we're seeing it. We're seeing a bunch of sort of AI sort of video creation tools. We had one company, Hedra, who came through that was honestly just astounding. When the Studio Ghibli sort of content started exploding, people were like, well, how can I animate the Studio Ghibli content? And then everyone was using Hedra as a result. Yeah, I saw that. I saw your partner doing that. Can we have a studio? So the magic of Studio Ghibli was that it could one-shot these beautiful outputs. And has there been, are you anticipating that kind of moment for sort of ephemeral gaming where I could like take a picture of the three of us and say like make a boxing game where we can like fight and you get swords and then it's like it creates that and it's like fun and viral. Uh, can that happen in the near like are you expecting that at all? Well, never say never. I think that ultimately, we have to get past this sort of distribution problem, but my hope is that it gets a mid journey moment like we've had in the past. And the good thing is, I mean, I've talked to a lot of investors about this, that I think a lot of folks are in that cycle right between B2B back to the sort of like app layer is a bunch of the investors are pretty interested in obviously the B2B side. And I think that will then drive a lot of innovation, which then gets you to ten X here. And hopefully if someone builds a good network, then you have sort of like unwarranted or really sort of differentiated customer acquisition. That makes sense. well, thank you so much for doing this. This was fantastic. Come back. Come on when there's big game. Of course. Of course. Games correspond. I'm going to take this hat. Please do it. Enjoy it. All right, see you guys. Let's bring in the next. The next person. This guy is actually 2025. Eat data. Make chonks. Welcome to the stream. I'm John. Nice to meet you. Nice to meet you. Can you introduce yourself? My name is sh. I am the co-founder of chonky. Chonky. Chonky. That's the name of the Company? Yes. What do you do? We take really complex documents, split them up into meaningful pieces, such as one piece is one idea. And then we send your LLM only the data it needs to answer a question. Give me an example of a really complicated document. Financial reports. You've got graphs, you've got actual text data, paragraphs, you've got tables. And if you're asking- Kays are so annoying because there's like so much boilerplate you need to just skip to the right thing. Yes, exactly. And like most of the time when you're asking questions to an LLM, you really only need one Or maybe you need a summary, that's it. Why don't I just throw all of that in a big context window, Gemini, 1 million tokens or something, and then just ask it, what's the summary? It'll work with maybe one PDF, but you have a whole database of PDFs. You've got like 100 page PDFs, thousands of those, 10,000s of those. You've got schematics, which are really complex. Models get confused. We actually ran this eval yesterday after the price drop on 0.3, which is we took relatively simple documents. We took classic literature, you know, David Copperfield, Lewis Carroll, everything like that. And we gave it to 03, we asked very pointed questions. 03 got a retrieval accuracy of 75%. Okay, great. We chunked the data through Chunky, then we asked Joe to do the same thing. Always 100%. Always Chunk. Always Chunk. This is my favorite name since last YC batch, which was a company called Pig. Yeah, I think a trend here. You just like large animals. I mean, it's just, it's gonna stick. We're gonna be talking about this next demo day. Talk about the pipeline. I have a bunch of huge PDFs on S3 or something. I feed it into your system. Am I getting Postgres table? Am I getting a MongoDB unstructured? You don't have embeddings? Am I getting embeddings? So it's like a vector database? Yeah. So you get embeddings out there. You can put it on your own vector database, or we can also wrap around your vector database. That's totally up to you. Okay. It's really developer friendly. The idea is to just make a dev tool that people just enjoy using and they can have it be two lines of code, five lines of code, whatever it is. So what's actually happening with it's not open source, right? It is open source. It is open source. We have an open course strategy. And so we are open source first. We started as a side project on the open source and we love open source. So is this something that I should be running in an ingest process as I'm generating new large documents, I'm chunking them and then loading them into my vector database, which I may be also hosting on AWS. Chonk, but if you're building a code gen tool, then you want a live Chonk. Okay, live Chonk. Yeah. And so if you're doing like code gen on the fly or if you're like, you know, things that if you're working with a corpus that's changing all the time, then you do want to, you want to do it live. Did you come in, you came into YC with this idea? You already had it as an open source project? Yes, yes. We had an open source project all set up in like February. Yeah. And we came into YC with this idea. How many people on the scene? It's just me and my friend from seventh grade. The boys group chat made it out of the group chat and then we're not like, how many chunks have you chunked? How many stars do you have on GitHub? How much revenue you making? What do you get for us? Oh boy. The quantitative metric side. So the metrics I really like are, we've got over 180,000 downloads. Very nice. We've got over 200 projects using us. Wow. We're core dependency on projects like Llama Index. Oh, cool. And we've got, like, 10 to 12 badge companies using us. Good inbound coming in from there on. Fantastic. Already done. What was that? Round is almost done. We're trying to wrap it up this week. Thank you. Preliminary. Yes. Just weighing our options and just like making sure by Friday it'll be done. That's amazing. Well, good luck out there. Well, thank you so much. Thank you for having me. Never stop chonking. We'll be following you. What's it? What's the Domain C-H-O-N-K-I-E dot AI and if you want this merch, it's shop.chunky.ai. Oh, he's already selling merch. He's selling merch. He's selling merch. Let's bring in the next great to meet you, the next participant of the demo day stream. If we have one, we got. Welcome to demo day 2025. We are live from Y Combinator in San Francisco. Let's go. Great to meet you. Nice to meet you. I'm John. I'm Cinnamon. Hi, Cinnamon. Hi, John. Nice to meet you. Can you introduce yourself? fix yourselves. Yeah, I'm Cinnamon. I'm a mechanical engineer by background. Cool. Built hardware for Apple, Google, Slack. Wow. Hardware. Hardware. Hardware for Slack. What? Yeah. Yeah. What do they have? RF Xway. Oh, sorry. The Stanford Linear Accelerator Center. Oh, that. Okay. That makes more sense. What hardware device did they have? Good clarifier. Yeah. Cool. Awesome. So I'm Abhijit. I worked as a research researcher at Stanford, research at Harvard. I was like an intern at Intel. Cool. Built a lot of stuff, I guess. Can you pull up on the mic a little bit more? Yeah, absolutely. Yeah. And then tell us what your company does. Yeah. So we're Goddella. We're building a frontier physics model for mechanical engineers. Okay. So currently AM models can't handle physics accurately because a lot of them are language based. Yes. Ours are different. Ours are built to handle physics accurately. Okay. Which means it can be used as a faster, cheaper replacement to simulations and physical prototypes. This is something that I think a lot of labs like to promise, right? Solving, you know. It was a big problem. Yeah, they like to bring up this idea of solving these problems in physics. So walk me through, it sounds like you're actually training a model. Is it all reinforcement learning with verifiable rewards, or are you generating a whole bunch of training data? Is there a human data labeling component? Like, what is the pipeline to create what you're creating? So at a core, we extract embedded physics from data, and that makes it generalizable. Okay. I mean, did you want to share more about that? Yeah. So we don't use reinforcement learning or anything. It's basically like this sort of like, you know, encoding framework, like where we actually like take the mesh itself. Like we work with meshes, right? Because we're like in simulation and stuff. So we take the fluid mesh and then we like encode into like this lower dimensional space and that allows us to like learn the actual physics of the system. Interesting. And this allows, and when you do like symbolic regression on like the latent space, you get like a lot of, you know, like you get a lot more generalizability than you would get with like regular models. Okay. Yeah. When did you guys start working on this? Did you bring it into YC or did you pivot to this? We brought it into YC. So we were T-ing a computational mechanics class together at Stanford, which was teaching undergrads in mechanical engineering how to use the traditional simulation software. Yes. Kind of bred a hatred for those softwares. Meanwhile, Abhijit's doing insane research at Stanford to use ML to model the physical world in these crazy accurate ways. He's like building ML models for Intel that are replacing months of trial and error in their plasma edge process. And I realized, like, hey, there's this huge opportunity to out with these old simulators. Let's bring physics-informed ML to the broader group of engineers who could really benefit from these faster, cheaper answers. Okay. Try and make it a little bit more concrete for me. I'm familiar with CFD, computational fluid dynamics. I have an engine, and I'm trying to simulate how the air will flow over the jet that I'm building. Is that an example that to kind of build off of, is it just faster inference than calculating everything deterministically? Is that the goal? Yeah, absolutely. Like all of simulation, every time you start with a simulation tool, the engineer is starting with a question, right? You've got a question in your 3D model. You want to know what does drag on that? What's the drag on that? Yeah, exactly. How's that going to change as I change thickness or angle of attack with my airfoil? Now imagine instead of needing to learn a simulation software, you can ask with natural language, drop in your CAD, Cool. And get simulation quality results instantly. Interesting. When we say instantly, it's 4500 times faster than a benchmarked GPU accelerated solver that we tested against. Wow. Wow. Okay. Very cool. What's the go-to market like? I mean, I imagine you're selling to like very large aerospace defense companies or who else is building stuff? I mean, Apple, Google, these companies could buy this. Yeah, exactly. I think the huge benefit of physics-informed ML is we can tackle problems that traditional simulators cannot tackle multi-physics, multi-scale, make it extremely feasible to tackle those problems. And we can also fill in the gaps where your idealized equations don't suffice to capture the complexity of the problem. Sure. So these problems that Apple, Google, maybe aerospace are throwing millions at in terms of R&D and building and testing. We can give you accurate physics models that can replace your need to physically build and test a product. And they can probably like reality check your faster results with the traditional system that they have in place whenever they need to run that overnight. Yeah, while we're live. It's been great. So we launched two weeks ago. We entered a 25K year contract with an engineering firm to replace ANSYS, which is $30 billion incumbent. However, I think our stronger pull right now is we have some exciting opportunities with enterprise customers to again tackle those highest value problems where you don't have, there is no solution. for. For modeling something like drop simulation, right? Like there is no great simulator that gives you that fast accurate answers, even though it's, you know, governed by the simulation software gets like 70% accuracy or something. Yeah, yeah. Interesting. It's also very slow though. It's like two weeks to compute a drop simulation on a 14-inch MacBook Pro today. So like these really high value problems for enterprise customers, we have the opportunity to go apply our software and give them more accurate answers. Very cool. How big is the team? Where are you going next? How's the fundraise going? Yeah, it's three core, one advisor. The fundraise is going well. It's great. Well, it's very exciting. We're just, yeah, it's very big. Whoever's bidding, I'm sure they're gonna watch this. Congratulations on a fantastic demo day. We've been giving out hats to folks who come on the stream. Thank you so much. Thank you so much. Nice to meet you guys. Congratulations. We will talk to you soon. Let's bring in the next team. whoever it is and we got don't forget to go to vanta.com adio.com numeralhq.com adquick.com aidsleep.com wander go to every website right here look at the bottom bar what's going on guys hey how you doing good to have you on the stream nice to meet you welcome to the show can you introduce yourself for the stream I'm Linus Linus pleasure it is a pleasure does that you want me to go into any more detail sure yeah look at Justin's name my name's Justin and what are you guys We're building Den. Okay. What is Den? Den is cursor for knowledge workers. Okay. Break it down. We're an AI native Slack replacement. If you load up to the app, you'll see a bunch of AI agents. Slack replacement. Okay. So I'm not in Slack at all. I'm just in Den when I'm doing knowledge work. Okay. What is the typical knowledge worker experience with Slack? Because I feel like there's a lot of just like managerial overhead status updates that are going on. This sounds like something a little bit more mature than that. What am I doing in Den? In Slack, there's a lot of kind of lost threads, like kind of lost information and just a lot of communication, ultimately, but no actions. With Den, we're all about actions and we work backwards from what you need to get the task done. So give me an example. Yeah, so I guess in Slack, you would be asking your co-worker for how many users signed up last month. That's gonna be like an async process where it literally just happened in one of my Slack I mean, it's like, are we reviewing last week's numbers or the week before or the week before was a developer on a team talking to the CEO? Yeah, for sure. You know, in Slack, that task might just get lost in the background. Totally. You don't know what the status is in Den. An AI agent's just going to pick that up. So, you know, we're all about that multiplayer aspect. Your inputs are building the agents and kind of configuring your tools and configuring the tasks. And then we've kind of provided the multiplayer environment where you might be orchestrating thousands of AI agents. Yeah, talk about the path of AI agents, long running agents. We have this idea of 10 minute AGI, 20 minute AGI, 03 Pro seems to work for 13 minutes every time you kick something off. Are you putting these things on cron jobs? Is there some sort of long running process that can run through my den installation and say, hey, every single hour I want you to check on things that aren't getting done. Pretty much. We break it down into three things. You've got your ad hoc tasks, you've got your crunch job tasks, your scheduled tasks, and then you also have things that respond to triggers. It's like, oh, hey, run this task whenever I receive an email. Got it. Okay. There was this idea, I think it was in AI 2027, around the idea that an AI would just spin up a Slack instance and use that to communicate. AI's would use Slack to coordinate with each other. And I can see a world where that makes sense. what was the catalyst for you guys to realize that you needed to kind of rethink the communication stack from the ground up to serve agents over, you know, first and foremost over humans? I guess what we realized was that there's tools like Zapier, tools like Relevance AI, but they're external to your communication source. Knowledge workers spend more than 80% of their time in Slack and Notion. And so we wanted to bring the agents to where people actually did the work. And the most important thing is now the agents can escalate tasks to the CEO, the head of customer success, whereas they couldn't before because they were siloed. So we had to build it from the ground up for agents in that way. Do you think we'll still call ourselves knowledge workers in 10 years if knowledge is instantly accessible by all machines? Taste workers? There will be taste workers when agency workers, because knowledge is commoditized now, and intelligence is too cheap to meter. Like taste curators. Yeah, exactly. Taste makers. That's the only job that will remain in the the future, maybe. Who knows? How you guys are creating a platform that other agents can work on top of. How do you rank the quality of different agents across categories? Obviously, there's like coding agents. We're friends with the cognition team and the factory AI team and things like that. So coding agents are great. I haven't heard a lot of people saying, like, I love my AI BDR. Right, maybe there's some use cases, maybe they don't want to talk about it, but like what are the categories that you guys are most excited about? Yeah, deep research is obviously another category. Yeah, deep workflow. I think it's gonna slowly move down like the stack. I spoke with Sholto Douglas, who is a researcher at DeepMind. We had him on the show recently. We have great like coding agents and kind of math agents because research is like math and coding. Interesting. But, you know, it's not just the verifiable reward thing. It's that as well. Okay. That as well. I think we're kind of building in the infrastructure that's going to allow those iterations to happen where you do actually get a really good BDR agent. We're already building customer success agents that haven't existed before because we're providing the primitives and the building blocks. And I think the verifiability will come. It's just interesting. How's the traction been? What's the rollout? What's the go-to market? Go-to market is handing out 500 business cards. Yes. To everyone a demo day. So you want every company here, all the small startups, the early stage companies, that feels easier than ripping out some massive Slack installation, right? Exactly. Okay. We take a lot of inspiration. Start with Dan, stay with Dan forever. Got it. Okay. Seat-based pricing? Yes. Interesting. Agent-based pricing? Yeah. Do the agents have to pay? What if I have a thousand agents? Okay. So the one-person company, you're cooked. Exactly. Good luck, though. You'll figure it out, I'm sure. I'm sure it'll be fine. Have you shared your story with anyone? What were you guys doing before this? I previously started a company when I was 19. I would go to like zero to 5 million ARR, 50 people. Congratulations. Thank you. You know, start this three months ago now, so it's been awesome. Awesome. Three months right before YC. Exactly. Yeah. Justin, what were you doing? Yeah. I mean, Linus is a beast. He hired me actually at his previous startup, so I was able to kind of go from like that 500 $100,000. Yeah, 1,000 ARR to 5 million. Yeah, yeah, yeah. And we just loved working together. That's awesome. This is what we wanted to spend the next 20 years on. Yeah. Yeah. Amazing. Well, fantastic. Thanks so much for hopping on the stream. This was fantastic. Good luck, guys. See you on the next one. And we are ready for our next guest coming on in to the Palace of Party Rounds to YC Demo Day 2025. Welcome to the stream. How are you doing? Nice to meet you. Very nice to meet you. I'm Joe. Tuche. Tuche. Hey, Jordan. Nice to meet you. Hi, I'm John. Pleasure. What's happening? I'm kicking this over. Would you mind starting with an introduction on yourselves and the company you're building today? Absolutely. This is Tuche. I'm the CEO of Eloquente AI. And I'm Aldo. I'm the Chief AI Officer of Eloquente AI. Fantastic. And what are you building? We are basically building an AI platform for financial services to automate complex regulated operations. What's an example of that? For example, in a bank, if you want to unfreeze an account or handle a regulatory dispute, run KYC, KYB, this usually goes currently to support teams. And you have a big queue, right? It might take up to two weeks to open a new business account. It happens all the time. So we solve that problem, rather than that going to support team, it comes to our dedicated AI operator. Our AI operator takes on the job, and here's the real magic. It basically navigates your existing core banking portal, just like your support team does. We don't need any APIs or any engineering. Exactly right. So this is coming from Aldo's research for more than five years. They developed this technology that allows us to do computer use and browser use in a reliable way. for very specific tasks. How much of what you're doing is purely enabled by the advances at the foundation model labs versus fine-tuning or any sort of scaffolding that you're doing on top of the state-of-the-art models? That's a fantastic question. Do you want to tell a little bit about that? Yeah, of course. It's a little bit of both, right? Foundation model, of course, gives us a lot of synthetic data on which we can train on. Sure. But we multi-agentic architecture to actually perform the actions reliably. What's the response been from big regulated financial institutions? They are not traditionally the earliest adopters of new technologies, but everyone's talking about AI every day, so I'm sure they're excited to at least talk to you. What's the response? You know, things have changed. We are finding it actually we reached half a million ARR in four weeks. Congratulations. I love that. Congratulations. And the reason is because I think all these banks now have the mandate. Sure. Did you say four and a half? Four and a half. It was four weeks. Half a millionaire in four weeks. There we go. All right. Just do that every four weeks for the rest of the year. Well, at this stage, we actually have a waiting list. We have more customers than we can onboard because, as I was saying, things changed in the financial industry. They want to bring this Cutting Edge AI in-house as quickly as possible. That's amazing. Very cool. How's YC been? Honestly, in any metric, it's massively exceeded my expectations. That's amazing. Amazing. I'm a second time founder. Okay. So I thought, okay, do we really need to come to YC? You know, we already have the investor networks. But what was really beyond my expectations is the customer Network, especially in financial. institutions is incredible. A lot of IC alumni are now running big fintech companies, banks, and they have been very welcoming, which I'm definitely feel the love. That's amazing. That's amazing. How big is the team? Where are you going next? I'm sure you're raising money. What's happening down the road? What's in the next 12 months? Absolutely. So we raised a big seed round. We closed last week. Congratulations. Do I get another one? We're doing another one. Woo! That's a big one. We close the seat around everyone. I love that. I love the speed here. That's amazing. It's so intense. It still surprises me every time. It's amazing every time. Yeah, it does. It does still surprise me. I love it. And yeah, we close the seat round. Congratulations. At the moment it's basically heads down. We are building. We are six people. Yes. Aldo is leading our technical team. Fantastic. I do sales. And we are hiring 10 more people. 10 more people. If anyone is watching who is looking for a new role, they are very welcome to contact us. That's amazing. Well, thank you so much for stopping by. This is fantastic. We'll see you soon. Let's bring in the next guests. We are live from YC Demo Day 2025. Book a wander. Find your happy place. Find your happy place. Bring a book on in. Go to wander.com Hey guys, welcome to the stream. How are you doing? Good to meet you. How are you doing? Good to meet you. Why don't you kick us off with an introduction on yourselves and the company you're building? Sure, I'm Somi and I'm Achuth and we're building Ulearn. Okay. It's an AI tutor for students. Very cool. What's the go-to market? I tried to build a ed-tech company back in 2012. That was actually the first company I applied to YC for. It was a disaster. It was extremely hard. Never really I made a dime off of it. I think I got like 500 installs on the iOS app I built. Yeah, yeah, yeah. Not exactly one of these. How are you solving that? It's notoriously hard to sell into education. It is. We're seeing a change, especially with AI. We have over 200,000 students active on our website. There we go. 1,000 more than what I got during my YC days. Thank you. Thank you. keep talking. Okay. 200, 000. We love it. Absolutely. So, well, what is the channel? Is it let me guess? You guys. Bunch of Tik Tocks. Yep. Yep. Yep. We have, I think, over 500, 000 followers on Instagram. That's Tik Tok. And how long? You gotta help us. We're trying to blow that up. We. It was a side project for a while, but I think. eight months is like, like, for the past few. Okay. And how do you. I'm picturing kind of like an LLM style chat interface. Is that the wrong. Yeah. So essentially, like, students upload their, like, learning material, like textbooks, and we give them, like, concise notes. Sure. Like, you can have a conversation with an AI tutor. Like, you can have quizzes, you can create exams, all the study tools. You create, like, podcasts based on. Yeah. So right now, it's a conversational experience. We want to make it, like, more so you can listen. Yeah, I remember. And are you getting to the point where teachers in schools are kind of asking their students to get on the platform and use it? Yeah, so we're talking to a bunch of school districts and stuff, but I think our main focus for now is students. We just want to like get the product down for them and then move up. And what level are we talking? Middle school? Yeah, where's the option been strongest? Yeah, so undergrads are like number one right now, and then it's higher than that. And now we're seeing a lot of high schoolers as well. How are you monetizing it? Yeah, so we have a freemium subscription. It's free for a limited amount of time and then 20 bucks a month. 20 bucks a month. I have an idea. Surge-based pricing. Right before exam season. We actually give a discount on exam season. And it worked really well. It worked very well. Even post-exam, there's always a summer sale. Yeah, it's really good. I think it just works out really well. That's amazing. Wait, so how long have you actually been building this? I missed that. So we started eight months ago. Eight months ago. And then YC. Okay, great. So have you been focusing on specific growth metrics during YC to kick off demo day? Yes. Just growing everything. Yeah. So MRR is like our key metric. Fantastic. And then retention as well. We want to make sure like a key part in learning is retaining. Did you share an MRR number today? Yes. Can you share anything with us? Yes, we can. Fantastic. Let's hear it. We are at $75,000. Let's go, congratulations. I mean, honestly, I gotta say sorry, 'cause just- yeah, I know. 83. 83 would have been one million. You're close. You're close. Next week. Next week. Put another sale on. Go to every person in the back. Every other person. Let's get him to one mill. Let's get him to one mill. You actually, we're not gonna let you leave till you get two million. Okay, okay. Yeah, you gotta stay in this room walking. Last question, obviously tons of developments from all the foundation model labs. What's working? What's most exciting? What are you taking advantage of? Are you focused on cost optimization, looking for open source? Do you want to use the best? Are you a beneficiary of the O3 pricing drop? Are you a beneficiary of O3 Pro? 100%. Every model improvement benefits us directly. Yeah, we want to focus on accuracy the most. right now, you want to make sure everything that a student gets is as accurate as possible. Are students cooked by AI? Are you leveraging it more just to study smarter? And that's what our vision is. And also an interesting thing is they really like our voice mode. So it's not just text-based. They can have a, you know, like a natural conversation. Yeah. So is it like you leave it open on your desk when you're studying? Yeah. you can do that. Yeah. And it can, like, create mind maps for you. It can create, like, flowcharts. You can do whatever you want. It's very cool. Yeah. How are you seeing the, the, the, the competition? You guys drop out in the process. In the process. Legally, legally not yet. School for you, but not for me. How are you seeing, like, the obvious competition between just, like, using chat gbt 20 bucks a month? That's right at the pro tier or, like, the, the plus here. There's a lot of, Tyler Cowen's been writing about, I used to feed in a snippet from a book and ask ChatGPT about it. Now I just say, Hey, summarize this book and it already knows. Or you can just go out and find it. That feels like the logical competitor. But how are you differentiating in terms of actual UI design? Because it seems like as we move to the application layer narrative, there is a world where AGI aggregating demand around AI tools around a specific niche works, but there's a lot of secret sauce that goes into the UI. What are you doing to stay ahead? So yes, definitely a UI is a big component, but the main thing is we just asked our users, why do they use us or charge cards? Sure. Yeah. What's the answer? And they say we have a feature called the quizzes, flashcards, and we create that very accurately for them. And what they can do is they can upload a thousand page textbook, even 2,000 page textbook. Someone uploaded like the entire exam. Yeah, imagine how does it hallucinates and you just fail your exam I remember in college I had a textbook and I wanted a digital version I took it to a scanning and they scanned it all and they were like do you have the right to do this? This sounds illegal I would try and download illegal PDFs. It was very sketchy how is how are college students uploading 2000 page documents? Yeah, so if it's available digitally they can upload it okay, like if not or anything Mobi. Yeah. So, I mean, they can upload anything they want, but it's on them. Okay. Okay. Yeah. They have to figure out that part of it. Okay. Got it. But eventually, maybe you could do Partnerships with. Oh, yeah. We want to, like, partner with, like, ebook. That makes sense. That'd be very, very cool. Yeah. Yeah. Amazing. Well, congratulations. Yeah. Thank you so much. Thank you. And let's bring in the next team. Let's do a lightning round. Let's speed these up. Right. Speed these up. There's demand. Is there demand out there? Okay. We only have two seats. Oh my god, there's six. We gotta go to the mic. Okay, come in. Come in. Okay, realistically only one of you or two of you can talk because there's only so many mics. Okay, keep going. Can you guys move to my camera to show everyone for a second? Just tilt that camera. Look at this army. Yeah, yeah, yeah. Tilt over a little bit. Go to the wide. I want to show these guys. Are you guys, is this the founding All the founding team, all the founding team. Yeah, what's going on? All the founding team. Founders, the world record. Who's a founding engineer? There's one guy who kind of... There's one guy who kind of... What are you building? Break it down for us. So we are building AWS for AI agents. Okay. Imagin, we are 20 years ago, it was mostly infrastructure for software as a service. No AI agents are becoming like the de facto new software. So we are building this infrastructure for the. What is important about infrastructure that needs to be different? Why would I not just deploy this on AWS? Yes. Or Microsoft? I mean, you saw Satya Nadella at Build, he was saying like, we have model router, we have everything from Deepsea to Llama to they vend every model. How are you going to stand out? Yeah, we stand out because today, first, people who are building agents are not cloud architect, cloud infrastructure experts. Sure. So a new generation of of software developers, software engineers. The second thing is agents are going to build themselves their infrastructure. So they need new interfaces to interact with the infrastructure. And the type of workload that they are using, like the technology they are using, the lifetime of the computing platform is not the same. So serverless is one thing, traditional virtual machine is another thing. I mean, even going back to the YC story, Roku. Yeah, exactly. It was that story of like, yes, you could always spin up EC2, but Heroku made it easier. Exactly. And right now we are doing the same for agents. So when your agent is generating code, it needs to have access to some resources to run this code. So we provide these kind of resources called sandboxes to help them to run this code for 15 minutes, an hour, or maybe months or years. How did you start the company? Did you start started three months ago when YC started or you guys have been at it for a little bit? Yeah, so actually we both all worked in my previous company. We sold to a cloud provider. So we know each other. The traders hate over here. It's like Intel again. What happened? They can't retain any of you. You couldn't be bought. I see what happened. I know it's the six of us. That's amazing. Congratulations. You guys stick together. I love it. How's adoption who are you selling to? Who loves this product? So we launched seven weeks ago and like most of the generation companies from this batch, even in the next batch are starting using us. Really? Really? Paying consumers in production right now. The economic model, I assume, it's consumption based on top of the underlying cloud platforms that you're building on top of. Is that correct? Yeah, exactly. We started actually to do something with a unique subscription, with monthly subscription, just to be sure that people were serious about using us, being sure that we get the right traction. Like we they are using actually in production our software. Now we want to expand. So we are basically offering more just a usage based model for the next batch. You guys live in the office? So we leave, we sleep when we can sleep. Yeah. But we leave in that office. Yeah, it's a lot of mouths to feed. Have you raised money? Yeah. Ron's close? Yeah, Ron's close. Congratulations. Thank you. Thank you. I think Jordy's got some for you. Fantastic. Well, congratulations. Thank you so much for coming out. Thank you so much for calling. Thank you guys. Fantastic team. Look forward to following your journey. have a great time. We got a good idea coming in next. We got Waffle. Let's bring in Waffle. Come on in to the Palace Party Rounds. Oh, yeah, they're a customer. That's great. Grab some seats. Put the microphones as close to your face as you can because we are live from YC 2025. We're building agents for agents. We're building an AI operating system for small to medium businesses. So what that means is we help you build your website, set up your business email address, your phone number, your bookings, your payments, all that kind of stuff. Are you guys replacing Google Workspace? We're starting building on top of it. We're starting off replacing Wix. So we've just launched our AI website builder three weeks ago. We've had 700 projects built on there. And yeah, people are building websites. Okay, so you build the websites and then you also are able to instantiate all the downstream I imagine you're not rebuilding everything, so who are you plugging into? Like you're not rebuilding Stripe, right? No, we're not rebuilding Stripe. It's like wrapping on top of these developer tools. There's so many of them now. There's so many and they're so cheap. Yes. You know, like if let's take just like outbound email marketing. Yeah. Someone could use something like Mailchimp. Mailchimp. Yeah. That's much more expensive than how much me and Diogo pay when we set up a project with Resend. Yeah, because it's a developer tool. It's super cheap. Interesting. And then we can make money on this. Okay, interesting. How's adoption been? Adoption has been really interesting these first few weeks because we've done no marketing. We're just like full-time coding, working on the product. So we've had people come in from the YC launch, from the Twitter. And now in the in the coming months, what we're doing is like going in and doing more go-to-market stuff. So one of the things we're doing is taking people's existing Wix or Squarespace website and just cloning it, putting it to Waffle and then just sending it to them. Sending it to them. I've seen a lot of Wix and Squarespace. You see the web, you see the ads, the Super Bowl ads, and it's always a small business, a restaurant or a pub. And do you have a couple customer avatars that you really like or, or want to use to fuel your go-to market? Yeah. Right now, I think what's really interesting is, like, these small family-run businesses, like these small family-run travel agents or law firms, I think long long term, e-commerce is really where it's at. They care a lot more about their website. Yeah, yeah, yeah. How important is design in that? Are agents good at design yet? It doesn't seem like it's something that would come native and yet, a lot of the art that's being produced is beautiful. Yeah. Yeah. I mean, yeah, it's interesting. The default clouds, like if you just ask Claude to generate some UI, it's actually quite good, but it's very unopinionated. opinion is. Yeah, it's just like some generic type website. I think if you start giving examples and just really working the system from you can get it to a point which is pretty good. What we've been doing is using 21st Dev. It's a tool to have a lot of UI and they're building out their magic chat which allows you to kind of take your UI components and have remixes of it. Very cool. work on that specific technology and we're working with them. So yeah, it's actually pretty good at UI, but it's making stuff which is still quite generic and we're trying to push the boundary. What were you guys doing before this? Yeah, so we've never worked full-time jobs. Me neither. Let's give it up for unemployment. I think you guys are founders. Yeah, yeah. So we both did computer science. I was at Oxford, Yugo was at Ecole Polytechnique, Los Angeles. Met up in London. Yeah. Moved in with him and then we've just been working. We got you to America. Yeah. Goodness gracious. They said it was impossible to build a company in Europe and you're testament to the fact that you gotta come to America. Congratulations. Yeah, it's been insane. I was listening to you guys two days ago. Oh, really? And when the Cluey founder was on. Yeah. And now we're here. Yeah. It's important to get attention, but there is a limit. That's our message. Where's the line for you? Cluey has their line around what they're willing to do for a 10% raise. It's pretty crazy. You know, he's willing to go that far. Why is he goes the other end of the spectrum where they're like, just don't focus on your pitch. Let the numbers speak for you. Yes, yes. And they're like, just put your graph up and that's what matters. I think it's good. Did you have a number that you shared today? Yeah, yeah. So we got 700 projects built in the last three weeks and then that's grown 14% over the last week. Congratulations. Well, good luck. With the rest of Demidead. We have one last hat here. There might be more out there. Share that. Based on days. There's more hats. Let's give them two hats. Are we out of hats? Yeah, we don't want to run. Thank you. Anyway, congratulations. Let's bring in the next team. And let's tell you about linear. Linear app. Use it to manage your projects. At least half the badges. I think so. Welcome to the stream. How you doing? Good. Nice to meet you. In water, I'm gonna not shake your hand. Good to meet you. Let's start with an introduction. Who are you guys? What are you guys building? And please, microphone as close as possible. Yeah, I'm Daniel. Cool. And this is Musa. Cool. We're the co-founders of Vibe Grade. What do you guys do? So we help teachers save time grading papers directly in their existing learning management system. What's the response been like? Do the teachers love it? Yeah, actually all of our customers are paying out of pocket. Really? Wow. Okay. Interesting. You said in their LMS. So who are you plugging into? Who's the most dominant platform providers right now? So the main one, the best integration is on Google Classroom. Oh, interesting. So a lot of blackboard, not a thing anymore? Not that much. We got a request for it, but most teachers are on Google Docs in Canvas. So like most K-12, which we serve, are on Google Docs in the classroom. We have Toodle as well, but it's mainly those few. make sense. Yeah. But for universities, like Canvas is great. It'll go and highlight actual sections. So can you add that on as like one of those, like if I'm in Google Docs, I can do an extension. It's a Chrome extension. Okay. So we realized that teachers, they don't want to have to learn a new tool and go to a new platform to do that. So we built an integration that works directly with Google Docs and directly with Canvas. So it's easiest clicking a button. And then we open up a inside Google Docs. Yes, walk me through the typical like workflow homework I assume. Yeah, it's like the student uses chat, the teacher needs to write the questions. The student uses chatGPT to write the answers and then the teacher goes back and uses chatGPT to grade it. You guys grade it. But what's the actual workflow? Or are students sending Google Docs links to their teachers when they're done? So Daniel was just in high school so he really knows how this works. I dropped out of high school. You dropped out of high school. Get the bottle of wine. Congratulations. Yeah. Yeah. High school dropout. So the word on the street. Yeah. Yeah. You front ran everybody. Everybody that was like coming into Demo Day. Oh yeah, I dropped out of college. It's like, that's how it played out. You had to go farther. Yeah. I mean, like selling, I think we heard about you earlier. You're selling it back to your teachers now. like that you dropped out of? Sort of. I mean, they don't really like me that much. No, for some reason. Yeah. Like on my final exam, well, I mean, I skipped finals to go fly to, we went to this EdTech conference in Orlando. Nice. So I guess they don't really like me because of that. But we had to bring in some more teachers. They'll like you when you're the commencement speaker in a couple of years. Maybe. Yeah. Hopefully. So the workflow is where teachers, usually students submit on Google Classroom or Canvas. They submit a Google Doc or a PDF and then the teacher opens it up, the doc, and they grade it within by highlighting certain sections, adding comments, a summary of the feedback. So we do that whole process right into Google Doc and then we have the teacher review everything. They can speak to our system to understand their tone and their style. So then we add those comments. How is the actual testing and grading and homework process changing? 'Cause I imagine that the solution to ChatGPT homework is probably everyone's on a laptop typing the answers in the classroom and there's a monitor watching that you're not just AIing it. And then it can be AI graded and then that's a win for everyone. Is that roughly what's happening? Yeah. The thing that we've seen is people say all the time, students are writing with ChatGPT, teachers are going to grade with AI. What's the whole point? Well, the objective of the student is to learn. And if you're just using like ChatGPT and mindlessly submitting something, well then you're not doing the right thing. There's always going to be a way to get around it if you really don't want to learn. But for teachers, the main objective is to give students the best feedback and instruction. So what we're doing is just enabling them to do that a lot better. Because even in school, when our teachers would give us just generic copy-paste feedback, so we just want to give students the best feedback possible. Give teachers their time back and they really get the value because they're the ones experiencing the benefits. Yeah. Talk to me about the top of the list. Why would you not at one point just give the tool to students as well? Yeah. 100%. That's actually what we're working on next. So we just signed three contracts with schools last week. Okay, congratulations. And they want to be able to give this tool to students so that while they're writing, they're gonna get get real-time feedback on their Google Doc as if the teacher were adding comments in real time. So it's sort of like, you submit a rough draft to your teacher, they have to grade it, and then give it back to you, and then you can do a final draft. Instead of that, why not just have the assistant give you feedback in real time? Oh yeah, that makes sense. On the doc. Yeah, that's great. Talk to me about the top of funnel. How are you telling teachers that this works? I imagine that the price point you can't do Hand-to-hand combat sales. How are you getting in front of teachers these days? We have 100 teachers that are paying completely out of pocket. And all that has been organic through either the Chrome Web Store. They find us when they install another extension like Grammarly. And then they tell their friends about it. Word of mouth has been really strong. We got 600,000 views on Instagram and Facebook in the past 30 days. There we go. We just started posting memes and things like that. Teachers really, they share it and then they look at our page and so they find us there. That's great. So that's the top of funnel up until this point and we're gonna start pumping out more like UGC style content. We're actually going to the biggest ed tech conference in the US. Let's go. At the end of this month. The Super Bowl of ed tech. Yeah, there's gonna be 20,000 teachers there and we got a really big, we bought a 400 square foot booth there and we're going all out for it, trying to reach as many teachers as possible. Congratulations. How did you guys make your first money on the internet. How do we first make? Like, back in the day, I used to make websites for, like, random people. I charged, like, this pastor in New Jersey, like, three thousand dollars to make his church website. Wow. Yeah, that was back when I was maybe 16. I mean, like, a mental health chat app in, like, grade 10. Nice. And, like, a couple of people, like, one person in Japan found it and they installed it and paid for it. They paid for it. Yeah. Let's go. That's amazing. Congratulations. Great to see you. Yeah. Appreciate it. Really rooting for you. High school's cooked. Call us when you meet the first. Yeah, we're good. Middle school dropouts. The next middle school dropout. That's how I was going with that. Welcome to the stream. We are live from YC Demo Day 2025. Good to meet you. I'm John. Nice to meet you. Welcome to the stream. How you doing? We're gonna have you sit down here. We're gonna have you pull this microphone as close as you can. Talk directly into it, introduce your company. What do you do? We are building AI agents for insurance claims operations. Okay. How's that going? Is business ripping? Yeah, we're 200k AR now. Let's go. Let's go where the money is. That's why people rob banks, because that's where the money is. That's right, John. Go to the insurance industry. It's expensive. Who are you selling to? I assume that the insurance industry is very oligopolistic. There's a few big players, but is that not right? We're selling to third-party administrators, which are these like claims outsourcing companies, of which there is a surprising number of. Yeah, it's like 42,000 across Europe. When did you realize that you guys loved insurance? It was like six years old, I wanted to process claims. No, I'd seen it in my job before, like sort of had some exposure. My roommate is an insurance adjuster, so it was like, interesting. Look over his shoulder, I would put you had a job so you can hang out and go to more movies on the weekends. I don't like you working late. I want to play video games with you. That's the best. Awesome. So yeah, walk me through what you're actually building, what the product experience is like, how it plugs in. I assume this is some sort of like co-pilot experience right now or is it fully agentic? It's a fully agentic experience. So the goal is to replace autonomously parts of the workflow for the adjuster. So the thing we're live with our customers is like a claim intake agent. So when you crash your car and you call in, you basically ask you a set of structured questions and then create structured data and writes it into the system of record. Got it. Okay. And previously that was handled with someone on the phone talking and typing everything in. Did you get him as a customer yet? No, not yet. He works a very big carrier, so that's gonna be a long game with that one. Okay. And what were you doing before? I was doing product consulting and then worked as a software engineer at Agentive, which is another YC startup. Oh, very cool. How's the round coming together? What's the look like yesterday? Close to yesterday. Congratulations. Well, thank you so much for hopping on. Good luck with everything. We are, we're moving into lightning rounds. I'm gonna give you one of these. Let's bring in the next team. We're moving through these quicker. Thank you so much for hopping on. We are live from YC Demo Day 2025. Welcome to the stream. Come on, sit down. What do we got? Text AI. That's a good domain. No, no, we don't have the right gear. Pleasure, pleasure to meet you. Nice to meet you. How you doing? Sorry, we don't have an extra chair. I caught like 30 seconds of a two-minute pitch. Give it to us again. What's the pitch today? Yeah, we're AI agent right in your group chats. Okay, in the group chats. Yes, sir. How are you plugging in? Because I feel like I message they really don't like when other companies plug in 100%. We're carrier based. Okay. So as long as you have a number that you can just add to a group chat instantly. Yeah, it's right then and there. Are you a beneficiary of the RCS update? Yes, we are. We are. How? Yeah, we're working through a couple of providers that give us a number. So all working with all the carriers, like Rideshare, T-Mobile, AT&T, and then we're applying for the RCS. It's still in the beta stages, even though it's rolled out. But SMS infrastructure is one of the best infrastructure in the world. So that's working. Whoa, hot take. I feel like everyone's annoyed by it. That's why Twilio exists. But, you know, is it good now? It feels like it was terrible for a long time. I feel like the big question around adding an AI to your group chat is security. Security. Things that happen in, you know. Yeah, signal group chats. You don't, you want to be very careful about who you are. Yeah, yeah. journalists. How are you handling security? Yeah, no, great question, guys. We don't sell your data. You can kick out the AI whenever you don't want it, right? You bring it in, bring it out. Nothing compared to like Meta AI where it's always living in there ambiently. It's completely under your control. So we don't sell any of that data either. What's the most obvious use case? Like the family group chat creating a grocery list or something? Give me some examples of how people are using this. It's actually actually a lot of friends using this to get a restaurant recommendations, roasting each other. Okay. When do we need to actually all meet up? Have reminders in there. That's our first agentic. Yeah. Because in. And when you're planning trips and trying to go out, there's always that one person. It's like, no, I'm too busy, or this doesn't work for me. And someone has to put in the screenshot. Someone's always taking the lead. Simplify it. Instead of adding agents to group things, it feels like, like, I saw this meme that was like, I to Zoom call and it was seven AI agents. Do you see this one? Everyone sees this. Yeah, everyone sees this. And it was like the one poor girl and then like this person's no taker and fireflies and Lou and this one and this one and this one. Yeah. How are you thinking about building the agents yourself? Definitely like you're just letting people build on top of text AI. I think two things. Number one is like the quality control that has to come in along the things like you said on the data piece. We're a consumer company. We're like text.ai. People interact you want to be very careful of allowing third parties to come in here and see what they do with the data. That's prevalent. And second is like, we build it ourselves so we can really figure out specific use cases like calendaring, for example, working with other people's calendars, giving you an exact answer like, Hey, between all five of us, when's the best time where we can actually grab coffee later this evening? Yeah. And it can actually find it done and dusted right then and there. How much of the go-to market is just pure viral growth because someone when it gets added, you realize that it's text AI and you add it to the next group chat and it just kind of goes from there. Do you add a studio Ghibli machine to the group chat? That is a great question. We have Ghibli images working. I wish I can put it on live stream right now, but we actually have collaborative AI where we can actually start doing images. People can edit it together. I mean, that was the beauty of mid-journey is that they use Discord, right? And then, so if Jordy writes a great prompt, I can kind of spin off that. Makes sense that would happen in iMessaging. There's so many fun. I'm already thinking, like, anytime somebody shares any photo, just immediately make it, like, a Star Trooper version of that. That's, like, half of our group chat. Is, like, somebody just me sending Ghiblis of all the other guys in the chat. It's a great. Isn't it exhausting that everyone, like, cuts and pastes? Yeah, yeah, you go back and forth, back and forth, back and forth. Make it so that everyone is accessing it equally. Yeah, yeah, yeah, yeah, yeah. And the beauty is you can create an image, he can edit it. Yeah. And someone else can edit it on top of it. Yeah, yeah. So much more collaborative. There is no need to really copy paste images. Yeah. Yeah. That's a fun use case. This is the best part of being consumer, right? Is that you get to put this out there and you're gonna see what people do it. Hinge dates. No. Someone goes in, brings them into a text thread, says, hey, by the way, I have my AI staff here. Do you have any restrictions? Do you have any favorite restaurants? Yeah. Yeah. Can you imagine, like, this is well above Beyond use cases you could have imagined. Yeah. Yeah. It's going to place. places where people are being really thoughtful about how do you bring it in to make it more easy for us to have a human connection. What were you guys doing before this? So I was at Tesla for four years leading there. Can you explain what Tesla is? No idea. Your guess is best as mine. Now I was leading the digital supercharging team there and the vehicle subscriptions team. That's great. And then Perar. Yeah, I was leading an engineering team at Walmart. And then before that I used to work at-- Let's give it up for big retail. I wonder what Walmart is, huh? But before that, I was at Eventbrite and OpenTable doing a lot of consumer personalization. So that's why I think one of the main reasons we found at TextAI was our rich sort of consumer background. Yeah. Yeah, no, I've had a blast of being in media for a long time. Most recently, I was the CEO of a B2B media company down in Los Angeles. We exited it. I sold it over in October. Cool. I've known these guys for eight years. Yeah, yeah, yeah. His first job was at a crypto startup my wife was at. No way. She hired him and then he wouldn't leave our house. He just showed up. And so I've seen him do everything and then for her, of course, these guys went to school together. And so the opportunity after going in and doing a lot of executive jobs at like publicly traded companies and whatnot, I think if you want to know what's happening, you got to get hands on keyboard. There's no talk, the executive talk and pretend like you understand it, you got to get back on. And so for me, this was a great opportunity to go work with these two guys and start from scratch and just get to know what's happening because this is going to be the platform for the next 15 years. That's amazing. Well, congrats. Thank you very much. How's the watch game at in your guys' batch? I see you guys each the Texas time zone. He has a better gauge. He's leading the way. I might be the oldest founder ever to go through YC. So yeah, what are you like 32? Oh, yes, yes, lucky guess. I'm gonna say 50, then I am to 32. Okay, okay, cool. Pleasure, pleasure, thank you. We'll see you soon. Bye. Up next, we have another team coming in to studio. Welcome. Good to see you. Come on, welcome to YC Demo Day. I see these two sweatshirts. Pull the mic up. Hey, hey, what is that? Why? Just preliminary. You just assume that they're blowing out their metrics. How you doing? Good to meet you. Can you kick us off with an introduction on you and the company that you're building today? Hey guys, we're building ValuMate. We're automating real estate appraisals. Okay. With AI. When did you realize you wanted to evaluate real estate appraisals? Yeah, so a little bit, you know, family background, like things are the short. We kind of discovered this pain point. We both study AI at CMU. Families had a background in it and, you know, seen appraisals and things of the sort, super inefficient process. And we were like, it's one of those industries just perfect, like just ready, you know, to, you know, to become a lot more efficient. And that's kind of how we got into the space. What is the structure of the legacy market today? There's, you guys are providing a tool for people that do appraising. Yeah, exactly. so like the current, like the current competition has literally existed for 40 years, right? And it's just like, like appraisal reports is like a snapshot of like a property that you have. Human goes in and looks at pictures and writes down a lot of quality of the trim and exactly, exactly. So we bring this entire thing down to just a scan. Okay, right. So you scan it, we put a 3D model, 3D floor plan, computer vision takes notes. Sure. And then we pull data from all these various sources. Got it. Right. And then, you know, we use the ad obviously fill out this kind of report. So it's a, you know, it's a pretty time consuming process that we're about to, that we're able to bring down. Is it a partnership with Zillow to do a better Zestimate or truly augmentation co-pilot for the existing true appraisal reports that are used in underwriting? For the true appraisal reports that are using underwriting. Got it. Because the issue with Zillow and every appraisal Razer will kind of tell you this. This is like super inaccurate. Like, the estimate is like, you know, like people are like, oh, like, yeah, mostly based on, like, recent sales in the area. It's not actually the quality of the building. Exactly. Right. So we're able to do even take into account remodels. Exactly. They don't know. Right. They don't know. They don't have the data. And what we're able to do is have this digital twin, like, literally of a property. So it's actually along the way, as we're, you know, we're building this and selling, you know, software presentations, the sort. We also have the most level property data set that anybody's going to kind of have to build future models. Super accurate. What were you guys doing before this? Sure. Before this, we were students at Carnegie Mellon University. We dropped out. Yeah. Yeah. I'm sorry. There was a bad. A couple guys dropped out of high school. It's not really special anymore, but, you know, not cool. Yeah, yeah, yeah. Talk to us about traction. How are Things going. This has been going super well. We started selling 20 days ago. 20 days. And we're at $124,000 in revenue. Congratulations. You were correct to bust the confetti. You guys get the round down already? We are still filling out a round. Okay. Late stage talks with some leads. Good luck. But it's looking like we're gonna run out of money. When did you first discover YC? Oh, yeah, that's a good question. Let's cover YC. So my freshman year roommate from Carnegie Mellon was actually YCF 24. Oh, there you go. And I told you about it. In my mind since then, I was like, okay, I have to do this. Okay, you got it. And then, you know, we did it. So welcome. You're in the league now. You're in the league. Welcome to the league. Welcome to Silicon Valley. And welcome to Demo Day. Thank you for stopping by. We will talk to you guys. Good to meet you. Well, let's bring in the next crew. Thank you so much. We got a line. We got a line out the door. We're gonna bang through these. We got these guys got QR codes on their sleeves. Bloom. Yes. Bloom. Are you building bloom filters? No, no. What are you- easiest way to- Bloom and onions. Nope. Okay, break it down. So lovable, but for native mobile apps. Okay, cool. Oh, interesting. Interesting. We'd love to just like show you- okay, so have you guys tried to build mobile apps? Three touches. What is that? I've never seen that in a row. UI from the future. So have you guys ever tried to build? Yes, I wrote Objective-C. It was terrible. I wrote Xcode. It was awful. We love Apple, but we're very excited about the Anthropic Partnership. Yeah. So typically you'll have to write code. You'll have to build the app in Xcode or something. You'll have to supply apps to review. You'll have to get your users to download it on TestFlight, enter an invite code. Okay. So with us, I can literally Literally just like talking to my phone, build a native app, and then I can send it to you via literally bumping phones. Oh, do you have an iPhone? Yeah, I do. Wow. Let's see this. Okay, let's load the app right onto the home screen. Okay. Malware installed. All personal information extracted. Here we go. I don't know. Let me see. That's right. We got half. I mean, this is just a demo. I think, do you need to turn it on again? Oh, no live demos. Yeah, AirDrop. Like maybe we need another AirDrop. Are you on the same Wi-Fi? You wanna try? Yeah, I'll try. Let's see. AirDrop. AirDrop is on. Oh, contacts only. Yeah, now it's on everyone. Okay, I got it. Okay, cool. Let's try it now. There we go. Skill issue. Skill issue, maybe? Okay. Oh, Jesus. Is it going? I got the wave. You saw the wave, right? Yeah, yeah, yeah. I only have RAM, public, ad quick eight, sleep, wander. installed right now. Those are going to be absolutely... Let's give it one more shot. We can take it. Otherwise we'll have to try on your phone. Yeah, it's okay. It's not like this is live or anything. Okay, you try. Anyways, keep, keep... Yeah, so when someone like tries to build an app with Bloom, right? It's doing the wave, but it's not doing the internet. The internet just sucks. I think the internet Let's play on the internet. Anyway, so what you would see is you'd be able to open this app on your phones like instantly, right? And it uses app clips under the hood. Oh yeah, okay. Okay, so that's how you're getting the app on without me actually installing it. Exactly. And then also really hacking the aspects. That's awesome. Okay, exactly. And so the other thing is like when you prompt to build an app with us, we also automatically deploy a backend for you. Yeah. Real time syncs between devices. As I understand app clips, it's like, There's like one app, like the Uber app exists, and then there's an app clip that ties to Uber. Are you creating like custom app clips? It's all around one iOS. Oh wow. One Bloom app clip. One Bloom app clip. And then load it. So it's like an app store within an app store. Yeah, kind of. Yeah, we've talked on our show before about this idea of like ephemeral apps. Yeah. Memes. Exactly. There's a lot of things that should exist, but only like a day. Yeah, exactly. We've had so many ideas for like funny apps, but we don't want to actually go pay, you know, find someone to build that. There's so many people, people have an idea for an app and you're like, well, you realize it'll cost like a million dollars to build that. Exactly, so it's not actually valid. Exactly. Like with us, we built an app for demo day in five minutes that everyone in the audience could just scan to like vote on our valuation in five years. And it like had a graph that updated in real time for everyone. because it has a backend connected to it. And so what we want to enable is a creator economy but for software. Okay, under the hood, what are the best co-generation LLMs that you're using? What do you like? What's exciting? And how is that market developing? Yeah, so I mean, right now we're obviously for the smartest models, we're using Claude Force on it. But we're also experimenting with, you know, a smart mode and a fast mode. Because sometimes people just want to make like a quick edit to their And like literally you can just speak into our phones, right? You just go into like this like edit mode and then you can just type, hey add this feature or whatever. Very cool. And so sometimes you just want those changes fast. And what's cool is like if you had this app open, it would also hot reload on your device. Yeah, yeah, yeah. So very, very cool. What use cases are you most excited about? What are you seeing? What categories broadly? Yeah, I mean so right now we're seeing people that already think as software as a creative outlet use this. So developers, designers and entrepreneurs. So especially for designers and non-technical entrepreneurs, it's great because they can just like, their creativity gets unlocked with this. And so we're seeing people build all kinds of things like personal apps, but also apps that I wouldn't have imagined before, like someone in Africa building like a wildlife tracking app for their conservation. And then people building like funny apps for weddings. It's one of the most delicious animals. to go after. To conserve the animals for my own hunting. For my next hunting expedition. But yeah, what I'm really excited about is the apps that I can't even imagine, right? It's kind of like when the YouTube founders put out YouTube. I'm sure they weren't imagining Mr. Beast or MKBHD. Just like, you know, you put out images and chat GPT. They didn't really imagine Studio DL exactly happening. And for us, I mean, it's software, so you can literally do anything. Congratulations. Thank you so much. How's your round going? Oh, round is closed. Let's go. All right. Thank you. Good stuff. We'll bring in the next team. Welcome to the demo day stream. I'm breathing in the microplastic. Oh, yeah. It's really. This is violating everything I know about you. You put your life on the line. How's it going? Hey, what's happening? Hi. Nice to meet you. I'm Sean. Pleasure. Hey. All right. Giveaway. I don't have one. Yeah, no worries. Can you introduce yourselves? What are you building? Sure. So we're Morpho AI. We're building a software tool for engineers that are building new robots and new machines. Oh, interesting. Yeah. So I came from the manufacturing tech world. We both met at Harvard. I was an MBA. He was a postdoc and you should talk about yourself too. Yeah, absolutely. And yeah, I met her when I was at Harvard. Like she said, we got an introduction from a mutual mentor. I did my PhD at MIT focused on automating the design of robots. So it seemed like, you know, wanted to bring that into some sort of product, show people in the world how useful it was and how it could change the way people design. And she was super excited about changing all the pain points in manufacturing. So we're doing this. What is exciting in terms of robotics in manufacturing? There's a lot of noise about humanoids, but we talked to a lot of people who are just saying, Robotics in manufacturing or is it a tool to accelerate the manufacturing of robots? Oh, yeah. Second one. Oh, second one. But the main The beachhead market is really in industrial robots. Okay, yeah. Okay. So we are both aware of what those look like. So the crazy stat that we found is, you know, if you're actually buying a robot off the shelf, you can't actually just like put it in the factory floor, like 90 plus percent go through a customization process. So that's like six months of lead time and, you know, it takes up a lot of engineering hours. So one of our customers, they were trying to build a full new industrial robot arm. Sure. Six months gone in, you know, arms not lifting. They came to us. and in two days we basically redid their entire hardware design. Interesting. So quite literally we're allowing engineers to build new robots overnight is the hope. And in the future in a matter of minutes. How concentrated is the robotic arm market? Are there just a few companies that you really need to integrate with deeply or do you need to create something more generalizable out of the gate? So we're starting out with a little bit more of the OEM side of things, but also these integrators that are buying these arms and saying, I now need a new hand. So out of the what 50,000 robots that get deployed in a given year, most of them have a new hand that's made. And so now you have a journalist engineer trying to make a new hand for four to six weeks in a new design. So really plugging in in that early stage of what do I build before we even get to the programming part of it? Yeah, the whole idea is you just have to input the test specifications that you need it to solve. And then as much as possible, we're automating of the mechanical and somewhat the control design side of things. Is there a lot of data that you need to feed in? Is there a lot of data that you need to pull from the manufacturer before you can-- We work with parts that manufacturers have and that they like to work with. Okay. And aside from that, it's test specifications. But we, unlike a lot of the Gen AI companies out there, we do employ some Gen AI solutions, but they're all trained from simulation and not from data sets. That's interesting. And that's really important because the data for how do you go from design to how well it's going to work, that doesn't really exist. Nobody takes logs and and curates data sets of things they've built and how well they worked. Sure, sure, sure. Talk about traction. Yeah. Sounds like you guys already are in market. Yeah, so we actually just got a grant from the UK government, two and a half million British pounds. Fantastic. Last couple of months. Non-dilutive? Fully non-dilutive. Congratulations. We love it for that, Jordy. Oh my God, my ears. No, I'm not lying. That's not something that happens in here than out there. I mean, Europe just shooting themselves in the foot. Not getting on the captain. They're gonna be like, why didn't we get a quarter point or something? Anyway, congratulations. Thank you. None of us are British, but they basically have this. We're setting up an office in London. Like, we're really excited about working with them and setting up a office. Yeah, of course. Of course there's benefits to the research community. Yeah, we have a lot of collaborators there as well. That's good. It'll be an amazing outcome for that. Last thing, Bull Bear on humanoids. Yes, humanoids. What's your take? I'm Bear, but like, medium Bear. I don't know. It was like, okay, if you're gonna build a humanoid, which humanoid? Like, people come in all sorts of sizes and shapes. A construction worker is not the same as like a toddler or something. Okay, not a toddler, but like ballerina. Exactly. Linebacker looks different than it is. So you're gonna need custom designs, regardless of what you do. But I mean, the other side of things is just like, what is the application right now of the humanoids that isn't solved better by re-engineering the things around the humanoids? And that's, there's a long tail there. So, we hope we can help people to design the humanoids of the future. Just don't think it's here yet. Yeah, yeah, yeah, yeah. I think there's a, yeah, you're not saying embarrassing a 100-year timeline. Or even maybe a 10-year timeline. I just think it's a little, I completely agree with you. Very reasonable stance. Awesome. Thank you. I'm gonna give you a small progress so we don't have to deal with the whole-- oh, we could do a charades fest like it's COVID or-- okay, perfect. Anyway, let's bring in the next team. We're putting the word out. Thank you so much. The table is now covered with confetti. We predicted that this is gonna happen. Millions of dollars. Yes. Head over across the pond. This will be the greatest capital extraction event. The greatest wealth creation event in history. In history. Since the Boston Tea Party. Anyway, good to meet you. What's up? Welcome to the stream. My name is John. How are you doing? Can you introduce yourself and the company? Yeah, absolutely. Yeah, so I'm Rajith. We're Prism. Okay. Prism is an agentic observability company. Okay. So we let developers configure agents to watch their production systems. Okay. So read logs for them, watch videos of their customers using software, and then enable them to take certain actions. So like create issues on linear. There we go. Sponsor the stream. Let's go. Yeah, I did that on and send reports to Slack. That's great. That's great. How's adoption been? How are you selling in? Are you going medium-sized scale-ups, other startups, YC companies, enterprise? What are you thinking? Bottom up. So this is a tool that every developer needs and every developer can use. So we're starting with the YC community. Cool. We're completely self-served. So there's 23 people on the platform and counting. Yeah. More people sign up and start using it every time. Were you guys iterating through the the We were oh yeah, yeah, we were so the first version of the product so it's like we watch videos of people using software so the first version of the product was these two watching everyone's videos and just giving them issues and like sending them slack messages and stuff like guys this is broken you need to fix this. Yeah, yeah so that we were basically like a services business But we didn't tell everyone we told them it was AI so that was the first version of the business start somewhere. That's awesome. Yeah, what how's how's This fundraising going, you guys in the midst of it? It's going great. We're in the midst of it. Still trying to finish up the round. Yeah. Good luck. But yeah, we're excited. That's fantastic. Awesome. What were you doing before? I was at Greptail, which is a code review company. Yeah. I think you guys are crazy. Crazy website. We love the website. Dragon with eating the bones. That's amazing. That's a great website. Yeah. Yeah. You too. I was a software engineer at Palantir. Oh, cool. And I worked in product at Johnson & Johnson. Oh, very cool. Alex, Alex, from Big Pharma. Yeah, yeah, yeah. So, Landon and I met in high school and then all three of us were I drew a tech together. Oh, cool. But Alex actually had a post on LinkedIn this morning about how he left 850k a year behind at Palantir to come work with us. So, there we go. Oh, I think you'll make it all back. We're gonna burn the boats. Just burn the boats. Anyway, good luck with the rest of demo day. Awesome. We are ready for the next guest on the YC Demo Day stream. Tyler's 10 questions left. 10 minutes left and then we gotta go? Yeah, we can speed through this as much as we can. We got 10 minutes until we gotta go to the airport. Is that right? We're starting packing? We got 10 minutes more. Come on in. Don't even bother introducing yourself. Just tell us what you do. What company are you building? How do you- We are Klarm. We are perplexity on internal documents. Okay, so search is being heavily disrupted by AI at the moment, as you know. Google is being disrupted by Perplexity and we're doing that for internal enterprise search. Okay, competition with Glean, they just raised a bunch of money. How are you thinking? We're gonna replace them. You're gonna replace them? They're just getting started and you're replacing Google. We're replacing Glean. Okay, okay. So how do you do it? What's different? How do you actually integrate? Are you building a bunch of integrations or you're building on top of an integrator? We have our own integrations. We found that the only way to do this, to actually build AI agentic search, is to build it from the ground up. And that's why all these legacy players have to do that as well. What's more important in integration with Google Docs, for example, or integration with the data lake? That maybe somebody has a Snowflake installation. What's more important? I mean, it's important to have both of those. So that you can connect to both. So you integrate both and then you can connect to Snowflake. We have about 45 connections. okay, how about customers? How many of those you got? We have eight. We only launched two weeks ago. Congratulations. What's the biggest challenge is permissioning hard? Maybe at smaller companies, it's not as much of an issue. But as you go kind of up market, dealing with all the different types of data. And this is why B2C companies don't play in enterprise space, because when you have to look at Salesforce data alongside messy Excel sheets, then it becomes it's harder to, to connect them together, but that's the value in it. Where can companies go to get started? They can go to calm.com. they can try our live demo. Own the five letter domain already. Congratulations. Congratulations on demo day. You can talk to us directly. And fantastic jlc reverse. Thank you very much. It's a fantastic. Well, guys, we'll see you soon. Let's bring in the next team. We're doing lightning round. Lightning round. Lightning round. Lightning round at YC Demo Day 2025. Welcome to the stream. What do you do? What are you building? AI co-pilot for solopreneurs. Exactly. Exactly. Okay, get out of here. Good job. How's it going? How many customers do you have? What data are you sharing today at YC Demo Day? Who's more cracked? He's definitely the most cracked engineer we have ever seen. He's the most cracked engineer at YC. At most. So we have gone from zero to 300k ARR in just last nine weeks. Let's go. Congratulations. Yes, so that's what we're doing. And yeah, we're seeing the future where solopreneurs are going to completely wipe code and run their entire business on Cactus. So, right? So that's what we're building. Great name. Thank you. What were you guys doing before this? We built a previous YC company. He was a founding engineer. We scaled it up to 2.5 million. Yeah, that's it. He's the crack sales guy and the crack engineer and together we are the crack founders. So, crack sales guys. How are you actually selling this thing? Is it hand-to-hand combat with these solopreneurs or are you doing viral marketing? We've seen levels get a lot of attention for solopreneur stuff. How are you actually attracting people? Absolutely. So it's mainly through word-of-mouth that's been spreading. What we also do is outbound where we call them. So think about a caterer, a private chef, they're busy cooking all day long. Call them, they don't pick up as expected. They're busy. We leave them a message saying, Hey, you just missed an opportunity, guys. So yeah, they get back and then They set up cactors, they get incremental 10 to 15K in a month revenue. And the biggest thing is the headache for them is gone, right? They don't have to answer the phone. Yep. That's the best thing. That's amazing. 300K ARR. How's the fundraise going? It's going great. We just got completely over-subscribed. Oh, exactly. Well, congratulations. Thank you. Thanks for coming on the stream. We're bringing in the next team. Have a great rest of your demo day. Come on down. We're live from YC Demo Day 2025, and we have our next team in the building. Nice to meet you. Nice to meet you, Sean. Welcome. Good to meet you guys. Hi. Would you mind introducing your company? What are you building? Yeah, for sure. So we are building Lumari, which is essentially helping go-to-market teams build tools internally instead of having to buy super expensive SAS. What tools do go-to-market teams need? Like, golf clubs. Yeah, yeah, yeah, yeah. Golf club buying, machine on subscription, and stick dinner booking. That would be nice. That would be nice. I wish we did that. But we are helping them, like, from anything from deal scoring, qualifying leads, making contracts, like anything down, like the sales pipeline. Got it, got it. Okay. Yeah. What is the future of the stack look like? Are you guys gonna basically, are you trying to verticalize effectively and allow people to build custom software at every point? At every point. Yeah, I really think we're going to look back to this era of SaaS, of like having all these generic tools that you're using and think that was really silly because why wouldn't you have software that's custom built for your company, for your process? And so I think exactly that we're going to start with replacing some of these really point solution software. But I think in the future, every company's going to have their own CRM. What were you guys doing before this? What were we doing before? I was at Stripe, Sam was at Google. Amazing. Yeah, we were sort of a non-traditional background. Who's the key person actually using the tools? Is this for a non-technical person? Is a non-technical person within these go-to-market teams? Often like a revenue operation, sales operations. That makes a ton of sense. Awesome. How's traction? It's been great. We're at 90k ARR. Congratulations. Yes, obviously we're out of confetti. Yes, yeah we are. We're pretty much out. We got a couple left. Okay, I'll be there. They're kind of busted. Yay. Anyway, thanks so much for coming on the stream. We will catch you guys. Let's bring in the next team. We have five more minutes, right? Something like that. Let's go. Five more minutes. I'm losing his voice. Let's go. I'm losing my voice. Welcome. Welcome to the stream. Introduce yourself. Introduce the company. Good to meet you, man. What are you wearing? I'm Yoav, and this is Shuria. We're second time exited YC founders. We're second time exited YC founders. This is our second time exited YC founders. This is our second time exited YC founders. Thank you. Addicted to startups. Addicted to startups. We're building third chair. Okay. Agents for in-house legal teams. And we're starting with media and entertainment companies. Interesting. Very niche down, not just like legal AI, but you've actually found a way to dominate a small market. No, it's a massive market. But we're starting by dominating media and entertainment. Yes, yes. We're starting by helping media and entertainment companies find IP infringements. Oh, interesting. And we collect evidence around it. And that's revenue driving immediately. Exactly. It's a revenue generating workflow. Is that the business model? You take a cut of whatever you get, or is it more seat based? We have a software model, but we also take a cut of what we get. It's kind of a two-bite deal for the Apple. I like that. That's great. How's traction been? You're finding the IP infringements, and then you're actually sending letter, demand letters. Someday we're going to be a vertical AI law firm. And yeah, there's a lot of, we're handling the entire workflow right now and a lot of it is being done through agents. But our customers just think of us as people who get things done and they don't care about how the other, like the black box is working. That makes sense. Yeah. What metrics have you been sharing? How's demo day going? Is it, is this your third demo day then? It is. Second demo day. Yeah. Second demo day. Second demo day. Cool. Now you guys are starting to grow. time. What's that? Were you co-founders together last time? No, we had separate startups. Different companies. Joining forces, social media. Yes. Now we're in legal. So why the alumni network is strong, you know, we teamed up and yeah, traction's going great. We just crossed 100, 000 ARR. We're working with the biggest media entertainment companies in the world now expanding to brands, doing stuff like marketing compliance. So yeah, that's great. Well, congratulations. Thank you guys so much for stopping of the stream. We will talk to you soon. Let's bring in the next team. How are you doing? Q, I like this. Q-Facts. Introduce yourself. How you doing? I think Solar Founder, we gotta give him a hat, a TVPN hat. Oh yeah, definitely. Introduce yourself. Here. Perfect. Let's swap. Yeah, so hi guys, I'm Anand I'm CEO of Q-Facts. Cool. We're making a 24/7. 247 stock exchange. Okay, so we're gonna let institutions and retail trade traditional assets like US equities and commodities real time 24/7 without brokers with loads of leverage. Just like you have loads of leverage. Who does a lot of leverage, right? How's the traction been? It feels like it's really hard to get. What's the underlying? Is this a sneaky blockchain company? There's no blockchain. There's no blockchain. It's completely off chain. It's basically, it's like a crypto exchange, but without the blockchain parts, we've taken those improvements and moved them over to the traditional assets world. Okay. And the traction is good. We've been running it, oh well, we've not been running it to the YC batch because we're not licensed yet. Sure. But we've been running some internal experiments. Yeah, some internal experiments, the current YC batch. And due to those experiments, we're launching in a couple of months. With the license and. Offshore. Offshore. Offshore in Bermuda. We'll get you. Bermuda. Bermuda. That's a nice place. If you guys have. Yeah. It's a great. A lot of trips there. Yeah, exactly. Free rum if you come visit our office. There you go. Fantastic. There you go. How do you get into this? Yeah. I was a Quant. Yeah. Tower research before. Oh, cool. And my co-founder was at Citadel. Well, you're our Quant now. Yeah, exactly. Well, congratulations. Congratulations. We'll talk to you soon. Yeah. Great to meet you guys. We'll talk to you soon. Come on down. Loads of leverage. Loads of leverage. We love to see it. Welcome to the stream. Tell us what you're building. Wait, were you here last time? Were you not? No, no, no, no. Okay. Sorry, sorry. I thought I recognized another Minerva. Yeah, it does seem like a similar name. Anyway, introduce yourself. What do you do? Yeah, I'm building an AI accounting for small businesses. Okay, cool. How's it going? Do you have Small businesses on the platform already? Yeah, yeah, we have a few small businesses. We're just trying to automate all of their bookkeeping. So, you know, chase people down for receipts, make calls. I feel like there's so much that's already built into the accounting suites. Like, do you have to sit on top of QuickBooks or do you actually pitch people, Hey, let's rip out the what, your existing accounting solution? No, we're sitting on top of QuickBooks. There's no point replacing this off Square. Yeah, we're just really replacing the service side of things. So yeah, consolidating all the scattered data. That makes sense. You know, sits in all different kinds of places. Your WhatsApp, your email, your stripe, sure, everything. How were you doing before this? Sorry. What were you doing before YC? I was building a health tech business. We were selling AI patient triage software to clinics. Awesome. Cool. How's traction been? How's the raise going? How's Demo Day been? Yeah, demo It's been great. We are raising $2 million and roughly like three quarters finished, so he's trying to wrap it up. Congratulations. Classic 220. That's really funny. Love it. Well congratulations. Hope you have a great rest of your demo day. Last one. Bringing it in, closing it out strong with-- what's going on? Is it Sim Studio? Are you simulating things? Yes, we are simulating. How are you? We're simulating. Okay. How you doing? Great, I'm doing great. How are you? I'm great. Break it down for us. What are you building? It's an open source platform to build AI agents. Okay. Yeah, so it's developer focused. It's like a Figma-like canvas to build agents. Interesting. How many GitHub stars you got? We gotta ask. 50 to 4,000 in the last two months. Wow. Wait, wait, you were at 50 and now you have 4,000. Yes. Wow. Congratulations. Thank you. I appreciate that. Thanks. Yeah. 4,000 GitHub stars. You'll love to see it. Yeah. Congratulations. We got two more. I can't believe Gary let us bring these in. Oh, yeah. He let us clean up after. It's gonna be interesting. Anyway, how's traction been on the sales side? I imagine you have a product that you actually sell on top of it, not a nonprofit. Yeah, yeah. So, yeah, we can't disclose revenue numbers, but we have a lot of great customers. Cool. So, yeah, Department of Defense. Oh, wow. Epic Global. Oh, wow. A bunch Huge, huge, huge. So the round's definitely done. Definitely done. Yeah. What were you doing before this? So I was at Berkeley in Michael Coffey's class. Oh, let's go! Let's hear for Berkeley, baby. Right across the bay. Go Berkeley. Right across the bay. We love it. We love Berkeley. Yeah, I'm completely covered. It's everywhere. Congratulations. I appreciate it. Yeah, thank you. Yeah, that's great. What's next for you guys? Next is just making our customers happy. You got after the Department of Defense, where do you even go from there? Yeah, I mean just making developers happy, like building the product out more and more. And I think developers love us and big customers love us, so we're just like keeping that energy going, keep launching new products, the team. We have a really great killer engineering team from friends at Berkeley. So yeah, we're excited to just keep growing and keep building. What's the key value prop for building a platform for AI agents? Is it interoperability between different models? Is it the ability to scale? Is it just price and cost? I think the question I have is even last YC batch, there was companies with this pitch. And I think the challenge is everybody wants to build infrastructure and troubles for agents, but then it feels like you can build good software, but it's maybe even harder to get the kind of companies that can build high quality agents that actually have value. What's the secret to finding even customers that are not just going to sign up but actually get value out of the product? Yeah, that's definitely true. I think a lot of people, especially right now, it's very in vogue to adopt AI. And so there's a lot of top down push from companies to adopt these AI implementations, but I think The biggest thing for us is that we're focused on not creating easy abstractions to make it easy to use. And I think that's where a lot of people fell short. It's like you're creating these abstractions that make your platform easy to use, but it's actually not powerful enough to really put AI into your production system. And so for us, we're really focused on actually might be a little more, like might be harder to use, but because we remove the abstractions, you can actually power relatively complex Applications like real-world simulations, deep research, data transformations, because a lot of companies are sort of going after the sales and marketing, you know, use case. And for us, we're more focused on the developers and actually production systems. Interesting. Awesome. How much is real-world simulation like scaling right now? We've talked to some of these companies and it seems like it's almost like video generation. It feels like very nascent. We really haven't had like this breakout studio Ghibli moment for real-world world simulation. How is adoption going there? Yeah, it's actually going quite well, I think. What are the applications? Yeah, so the applications of that are essentially simulating, I guess one that would be interesting would be international affairs. So understanding how global events are going to play out. We're using agents. No one. Yeah, so that's a broad topic that yeah, yeah. I've heard about that with, like, economic modeling. Exactly. And, like, housing prices. You can actually have agents running. And it was always like, just like, Grand Theft Auto level. Right, right. But now it's like, oh, what if each of them has, like, an internal reasoning engine powered by an LLM and 130 IQ instead of, like, turn left, I'm running Astar. Right. It's much better. Yeah. And I think the thing that really our, our platform unlocked was being able to run thousands of agents in parallel at the same time. And I think that was one of our our grounding thesis, was that we wanted to create this environment. Sim Studio comes from building simulations of things. So launching 10,000 agents at a time, and perhaps some of them are going to come back and give you an accurate result, or some of them might inform you in an interesting way. And so you take those aggregated results and you go do something with it. Very cool. Thank you so much. Thank you for having me. Yeah, yeah. Great meeting you both. Fantastic. And that is the end of of our demo day stream. Tune in tomorrow. We will be back in Los Angeles tomorrow, live from the TVP and Ultra. Yeah. Thank you to the white Combinator team. It is fantastic. We're major white hill. San Francisco's back. Gary's hands back. He never left. YC never left. But Rosewood is back. It's just a fantastic time in San Francisco. Fantastic time to be here at YC demo day. Thank you for watching. We will see you tomorrow. Goodbye.