Top News | Microsoft can’t stop firing people: After losing 6,000 roles in May, and around 1,000 in January, Microsoft is cutting another 9,000 or so workers, according to the Seattle Times. You’d be forgiven for getting the long list of Microsoft layoffs confused. You might have the 2025 cuts mixed up with the several four-figure cuts that Redmond enacted last year, or the massive early 2023 cull that saw some 10,000 jobs slashed. In the past, we’d associate layoffs with poor corporate performance. Today, major tech companies are slashing roles with abandon, as if to flex that they really didn’t need all those pesky humans to begin with. Perplexity pines for powerusers: On the heels of Cursor announcing a new, higher-priced ‘Ultra’ service tier that will cost $200 monthly, AI search startup Perplexity has brought its own $200 monthly service to market. Called ‘Perplexity Max,’ the service will offer first access to new Perplexity services, its upcoming Comet browser, more supported models, and upgraded support. We’re seeing AI pricing land along three tiers: Free, SaaS-ish (from $10 to $30 per month), and a mid-three figure level from the strongest AI companies. You can view the new, more expensively priced offerings as good for the industry, if not your wallet; Perplexity, Cursor, OpenAI and others wouldn’t be able to sell more pricey service tiers if they weren’t serving up commensurate value. Talon One snags $135M: Based in Berlin, Germany, Talon.One’s brand loyalty and promotion service just raised a nine-figure round. The company is further evidence that European startups are able to raise capital in 2025, despite the world’s startup industry once again congregating around Silicon Valley and California’s Bay Area. Talon claims 270 companies as customers, and intends to use its new capital — a funding event led by Silversmith and Meritech, with participation from prior investor CRV — to invest in its product with an eye towards AI tooling.
| TWiST500 | What does growing from zero to $75 million worth of annual recurring revenue in seven months get you? A massive new funding round at a valuation that could land around $2 billion, according to the Financial Times. | Yes, Lovable is apparently prepping to tap the capital markets yet again. Recall that the vibe coding startup raised around $17 million earlier this year in a round led by Creandum. That funding brought the company’s total capital raised to $22.5 million, even before this fresh $150 million infusion. | In revenue multiple terms, Lovable would be valued at around 27x ARR. That’s less than OpenAI is worth today, if you contrast its $300 billion valuation against its own $10 billion worth of ARR. But it’s more than Anthropic costs, having scaled its revenues to a reported $4 billion run rate this year against a now modest-seeming $61 billion pricetag. | | There’s valuation oddness in and around the AI market today. Palantir is worth more per dollar of revenue than OpenAI by a factor of about three, per Bessemer data. And Lovable is growing so quickly that, by the time its new round closes, it could have made material progress in cutting its implied multiples. | This investor enthusiasm comes with a side of market concerns. Some AI companies are building impressive gross revenue tallies that either feature substandard margins, or retention metrics, and no one is really sure if today’s leading startup lights are under- or overpriced. But with market-clearing prices being found, at least that uncertainty isn’t slowing venture to a crawl. — Alex | A message from Vanta | Compliance and security shouldn't be a deal-breaker for startups to win new business. Vanta makes it easy for companies to get a SOC 2 report fast. TWiST listeners can get $1,000 off for a limited time at https://www.vanta.com/twist | This Week in Startups | E2146: Jason’s away, but Alex is hosting founders from not just one or two but FOUR of our favorite startups! First up, Grammerly CEO Shishir Mehrotra AND Superhuman founder Rahul Vohra join together to talk about their companies coming together, and how they plan to use AI to reshape the future of work. PLUS Manu Sharma from data labeling innovators LabelBox AND Jeff Cardenas from humanoid robot startup Apptronik. Now that’s a packed show! | E2145: In a special TWiST, recorded during Jason’s trip to Singapore, he chats with entrepreneur and investor Balaji Srinivasan about The Network School and his wider vision for an internet-native, decentralized society. Is the future going to be “sharp societies” creating civilizations united by shared values rather than physical boundaries? MAYBE! | E2144: It’s an auto-heavy Friday TWiST, with Jason and Alex looking at Xioami’s cheap, high-quality electric vehicles that could find themselves at the center of a global tariff war. Plus Uber’s rumored team-up with former CEO Travis Kalanick, Telsa’s cautious robotaxi rollout, Meta’s ongoing talent shopping spree, a new edition of Reddit Rapid Response, and much more. | TWiST Partner Offers | Northwest Registered Agent: Starting your business should be simple. With Northwest Registered Agent, you can form your entire business identity in just 10 clicks and 10 minutes. From LLCs to trademarks, domains to custom websites, they’ve got you covered. Get more privacy, more options, and more done—visit https://www.northwestregisteredagent.com/twist today! Retool: Bridge the gap between AI demos and business impact with technology that's designed for developers, and built for the enterprise. Visit retool.com/twist and try it out today. AWS Activate: AWS Activate helps startups bring their ideas to life. As you build and scale your business, Activate Credits* grow with you to support your changing needs. Apply to AWS Activate today and receive up to $100,000 in credits. Visit aws.amazon.com/startups/credits *All AWS Activate Credits are in USD and subject to the AWS Promotional Credit Terms & Conditions.
| LAUNCH Accelerator | We’re hosting an in-person Demo Day for LA34 in SF on July 16 from 9a-12p PT, the latest cohort from Jason Calacanis’ Accelerator. | If you are an early-stage investor and interested in attending, please reach out to bianca@launch.co. | Want to Work for This Week in Startups? | We’re looking to fill two in-person sales positions at our Austin, Texas HQ! First, a high-performing Sales Executive to help us seek out and promote clients, sponsorships, branded content, and more. Plus an experienced Sales Manager to lead, coach, and scale our sales executive team, while setting performance goals. Love the podcast and have B2B sales experience? We want to hear from you! | SF Live-Work Space Now Available | Need a flexible living and working environment in San Francisco? This thoughtfully designed loft-style residence at 787 Bryant St., the heart of the vibrant SOMA district and the city’s creative hub, is now available for rent or purchase. Check the listing for more details. | Founder University | Applications are open for Founder University Cohort 11, a 12-week remote pre-accelerator program tailored towards navigating early-startup practices, building an MVP, and growing traction. Submit your application at Founder University— Cohort 10 will kick off Summer 2025! | The TWiST500 newsletter is the new, updated, and improved TWiST Ticker. |
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