Tech
9 startups that stood out on YC Demo Day 2
Silicon Valley accelerator Y Combinator held the second Demo Day for its Summer 2024 cohort on Thursday, and just like we saw on Day 1, AI remains the focus of most startups in this cohort.
However, we did also find a few interesting startups that are working on cool tech like drones that can’t be jammed, carpooling for freight, and weather prediction.
Here are the companies that stood out:
What it does: Detects errors in engineering projects, proposes solutions and can even implement them itself
Why it’s a fave: I was intrigued when Entangl said it has talked to Amazon CEO Andy Jassy about automating data center verification. The fact that the startup already has deals with AWS and Vodafone is a big plus.
What it does: Energy-efficient chips for AI
Why it’s a fave: One of the problems with AI is that it consumes a ton of energy. Early tests of Exa’s chips show that they are nearly 28 times more efficient than Nvidia’s H100s. What’s better, these chips can adapt to different models — you just need to configure them with software. Exa hopes to have them ready for usage by early 2025.
What it does: Developing an autoimmune therapy that kills cancer
Why it’s a fave: Keytruda and other autoimmune drugs have been a game-changer for many cancer patients, but there’s still a long way to go. Kopra Bio is working on a drug that could change that. In early tests on animals, most were still alive after 250 days, while animals on an FDA-approved drug died in just 50 days. If the drug works the same way in humans, it could be a huge breakthrough for survival.
What it does: AI bookkeeper for startups
Why it’s a fave: LedgerUp’s AI promises to make bookkeeping easier for businesses. It can categorize transactions, find discounts and credits that you may have missed, manage invoices, and even manage taxes. I hope bookkeeping becomes a job nobody will miss.
What it does: Offers a suite of productivity apps for growing organizations
Why it’s a fave: Wayne Crosby, OrgOrg’s founder, says that his company can help businesses streamline their app usage. While many businesses may be ready to consolidate their app vendors, what caught my eye about OrgOrg was Crosby’s background: The three-time founder took his first company through YC all the way back in 2007, and later sold it to Google, where it became Google Slides. This experience is bound to attract investor interest.
What it does: Carpooling for freight
Why it’s a fave: I’m a big fan of Uber Pool, so I was excited to learn about Oway. The startup lets small businesses share truck space and save money on shipping — ridesharing for freight, essentially. It’s faster and cheaper — what’s not to like about this?
What it does: Foundational model for predicting the weather
Why it’s a fave: Silurian’s founders previously helped build one of the world’s most accurate weather forecasting models: Microsoft Research’s Aurora. But four months ago, they left the tech giant to build their own weather prediction engine, which they claim is an even better prognosticator than Aurora — the company is building foundational models for simulating the entire planet, and they’re targeting weather first.
What it does: Develops unjammable drones
Why it’s a fave: Drones have changed the game in warfare. They can spy on the enemy in real time and can even hit targets with pinpoint accuracy, all while reducing the need to put pilots at risk. But there’s a catch: There are many ways to jam drones, which makes them useless. This has been a big problem in the Russia-Ukraine war. Theseus claims that its drones can dodge jamming, even if the opponent is Russia.
What it does: Reduces congestion and accidents with smart traffic lights
Why it’s a fave: Controlling traffic lights with AI sounds like the perfect application of this technology. XTraffic says that it’s already doing it in several cities in Texas. I hope they make it to my town in California, too, because I sure am tired of waiting for the light to turn green when there are no other cars around.
Tech
Sam Altman’s biometric startup World raises $52.5M via crypto sale
World, the online verification startup co-founded by OpenAI’s Sam Altman, has raised $52.5 million through a crypto token sale to strategic investors.
Participating investors joined a 12-month lockup sale of World’s token, WLD. Lockup periods prevent asset buyers from selling or trading their tokens for a set period of time. The yearlong lockup demonstrates investors’ “long-term commitment to World’s continued growth and utility,” the company said Friday in a press release.
The money will go to the World Foundation, an exempted limited guarantee foundation based in the Cayman Islands, created to steward the expansion of World’s network.
The sale’s lead buyer is Pantera Capital, a venture capital firm focused on digital assets. Other companies involved in the sale included Eightco Holdings, Bain Capital Crypto, Susquehanna Crypto, and Selini Capital, among others.
The World project is operated by Tools for Humanity (TFH), a startup based in San Francisco and led by CEO and co-founder Alex Blania. Altman is the company’s other co-founder.
World is an unusual business that revolves around online verification and sells access to what it calls “proof of human” tools. The idea is that, as bots and AI generate much of the content online, it will become increasingly important to know who is really human and who isn’t. World’s mission is to popularize its World ID, an anonymous digital marker that verifies whether a human — not a bot or an AI agent — is behind a particular account.
To get a verified World ID (the highest level of verification within World’s system), users must have their eyes scanned by an Orb, a metallic ball that converts a user’s iris into a distinct cryptographic identifier. World’s Orbs are located at its offices and have also been deployed at partner stores around the world.
The project began as a more overtly crypto-based experiment under the name “Worldcoin” — the same name of the crypto asset involved in the recent sale. Users can trade or hold the token through World’s app, which also serves as a custodial wallet. The company later rebranded to World amidst a broader backlash against the crypto industry.
In April, the project launched a new version of its app and announced partnerships with companies, including Tinder, Zoom, and Docusign. Yet, despite its global ambitions, World has struggled to scale its business or convince consumers to care much about its mission. In June, TFH conducted a round of layoffs.
Correction July 24: An earlier version of this story incorrectly stated that World has a partnership with Ticketmaster. It does not. We regret the error.
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Tech
OpenAI’s own model went rogue before Kimi had Wall Street sweating
Chinese AI lab Moonshot’s open model Kimi went viral this week for reasons that had less to do with the model itself and more to do with how the U.S. AI industry reacted to it. Meanwhile, an unreleased OpenAI model wandered outside its test environment and ended up connected to a real security breach at Hugging Face — a reminder that “China risk” isn’t the only kind of AI risk worth worrying about.
On this episode of TechCrunch’s Equity podcast, hosts Kirsten Korosec, Anthony Ha, and Sean O’Kane dig into why Kimi K3 set off a fresh round of AI panic, the industry’s response to an OpenAI staffer’s “regulatory FUD” post, and what that OpenAI breach means for AI security more broadly.
Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.
Tech
India’s move against Jack Dorsey’s Bitchat sparks legal debate
An apparent Indian government effort to remove GitHub repositories for Jack Dorsey’s offline Bluetooth-powered messaging app Bitchat has raised questions about the legal basis for targeting open source software because of how it works.
The issue with Bitchat came to light after Dorsey posted on X on Friday what he said was a notice from India’s Ministry of Home Affairs directing GitHub to restrict access to three Bitchat repositories within three hours. The notice argues that the app’s anonymous, decentralized architecture could facilitate unlawful activity and allow users to communicate during internet shutdowns while making lawful interception more difficult.
The move comes as Indian authorities tighten internet restrictions after weeks of student-led protests in New Delhi over alleged examination paper leaks.
The demonstrations, known as the “cockroach” movement, have drawn thousands of young people demanding the resignation of Indian Education Minister Dharmendra Pradhan, with authorities also imposing restrictions on marches toward the parliament. Local media reported that some protesters downloaded offline messaging apps, including Bitchat and Briar, after internet services were suspended.
The order represents a new approach for the Indian government, which, before 2021, typically relied on Section 69A of the IT Act and the 2009 Blocking Rules when it wanted content removed nationwide, according to Mishi Choudhary, founder of SFLC.in, an Indian digital rights legal advocacy group.
She told TechCrunch that the document resembled the format of recent government takedown notices, but the legal provisions it cites do not clearly authorize authorities to seek the removal of an entire software project because of how it works rather than any specific illegal content.
Unlike many government takedown requests, the document Dorsey shared does not identify specific posts, messages, or repositories containing unlawful material. Instead, it argues that Bitchat’s ability to function during internet shutdowns and without central servers could facilitate unlawful activity.
The notice, dated July 23 and apparently issued by the Indian Cybercrime Coordination Centre (I4C), which operates under India’s Home Ministry, said Bitchat enables users to communicate “even during network restrictions” and “internet shutdowns,” making it possible to “circumvent lawful restrictions” while hampering “lawful interception, attribution, and traceability.”
In recent days, Bitchat has seen a sharp rise in popularity in India. Market intelligence provider Sensor Tower shared data with TechCrunch that showed that India accounted for about 85% of the app’s global downloads between July 17 and July 23, compared with about 1% over the previous 30 days. Bitchat was downloaded more than 91,000 times in India over the past five days, after downloads jumped thirty-two-fold on July 19 from the previous day. The app’s daily active users in India also reached more than 330,000 on Thursday, the highest level recorded for the app in the country.
Request raises questions about open source software
The Internet Freedom Foundation (IFF), a New Delhi-based digital rights advocacy group, questioned the effectiveness of the apparent takedown request.
“The order also fails on its own terms as deleting a repository does not delete the application from any phone that carries it, and the mesh keeps functioning without servers. What the takedown actually prevents is scrutiny of the underlying code,” the group said on X.
Raman Chima, global program director at the Association for Progressive Communications, a global digital rights network, told TechCrunch the apparent notice went beyond targeting the messaging service itself by seeking to remove its open source code from GitHub.
“They’re [the Indian government] not just targeting the designated service provider, but they’re trying to say that open source development of this type of product … should not occur,” he said.
GitHub did not confirm whether it had received the document. The repositories remained accessible from India on Friday. Asked about the apparent notice, the company shared a link to its public repository of government takedown requests, which did not contain any recent requests related to Bitchat.
Namrata Maheshwari, Asia Pacific policy manager and encryption policy lead at digital rights group Access Now, told TechCrunch that blocking an offline messaging platform during internet restrictions risked turning shutdowns into “a communication blackout” that violated fundamental rights. Protesters in any democracy have the right to communicate privately and coordinate peacefully, she said.
“When we receive a complete government takedown request, we notify the affected account owners and give them an opportunity to appeal,” Rose Coogan, the company’s principal online safety counsel, said in a statement emailed to TechCrunch. “We share every government takedown request we take action on publicly.”
India’s Home Ministry did not respond to a request for comment.
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