Tech
Secondary sales shift from founder windfalls to employee-retention tools
In May, AI sales automation startup Clay said it was allowing most of its employees to sell some of their shares at a $1.5 billion valuation. Coming just months after its Series B, Clay’s offer of liquidity was a rarity in a market where tender offers, as these types of secondary transactions are known, were still uncommon for relatively young companies.
Since then, several other newer, fast-growing startups have allowed their staff to convert some of their stock into cash. Linear, a six-year-old AI-powered Atlassian rival, completed a tender offer at the same valuation as the company’s $1.25 billion Series C. More recently, the three-year-old ElevenLabs authorized a $100 million secondary sale for staff, at a valuation of $6.6 billion, double its previous value.
And just last week, Clay, which has tripled its annual recurring revenue (ARR) to $100 million in one year, decided it was again time for its employees to cash in on the company’s fast growth. The eight-year-old startup announced that its staff can sell stock at a valuation of $5 billion, a more than 60% increase from its $3.1 billion valuation announced in August.
These secondary sales at increasingly higher valuations for young, perhaps still-unproven companies may initially appear to be a premature “cash-out” reminiscent of the 2021 bubble. The most infamous example of that time was Hopin, whose founder, Johnny Boufarhat, reportedly sold $195 million worth of his company’s stock just two years before the company’s assets were sold for a tiny fraction of its peak $7.7 billion valuation.
But there is a critical distinction between the 2021 boom and today’s market.
During the ZIRP era, a large portion of the secondary deals provided liquidity almost exclusively to founders of buzzy companies like Hopin. In contrast, the recent transactions from Clay, Linear, and ElevenLabs are structured as tender offers that also benefit employees.
While investors these days largely frown upon the outsized founder payouts of the 2021 boom, the current shift toward employee-wide tender offers is viewed far more favorably.
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“We’ve done a lot of tenders, and I haven’t seen any drawbacks yet,” Nick Bunick, a partner at the secondary-focused VC firm NewView Capital, told TechCrunch.
As companies stay private longer and talent competition intensifies, allowing employees to turn some of their paper gains into cash can be a powerful tool for recruiting, morale, and retention, he said. “A little liquidity is healthy, and we’ve certainly seen that across the ecosystem.”
At the time of Clay’s first tender offer, co-founder Kareem Amin told TechCrunch that the main reason for giving employees a chance to cash out some of their otherwise-illiquid stock was to ensure that “the gains don’t just accumulate to a few people.”
Some fast-growing AI startups are realizing that without offering early liquidity, they risk losing their best talent to public companies or more mature startups like OpenAI and SpaceX, which regularly offer tender sales.
While it’s hard not to see the positive aspects of allowing startup employees to reap cash rewards from their hard work, Ken Sawyer, co-founder and managing partner at secondary firm Saints Capital, pointed to unintended second-order effects of employee tenders. “It is very positive for employees, of course,” he said. “But it enables companies to stay private longer, reducing liquidity for venture investors, which is a challenge for LPs.”
In other words, relying on tenders as a long-term substitute for IPOs could create a vicious cycle for the venture ecosystem. If limited partners don’t see cash returns, they will be more reluctant to back the very VC firms that invest in startups.
Tech
Bluesky leans into AI with Attie, an app for building custom feeds
The team from Bluesky has built another app — and this time, it’s not a social network, but an AI assistant that allows you to design your own algorithm, create custom feeds, and, one day, vibe-code your own app.
At the Atmosphere conference over the weekend, Bluesky’s former CEO, Jay Graber, now chief innovation officer, and Bluesky CTO Paul Frazee, presented the AI app, called Attie, for the first time. Conference attendees will become the initial beta testers for the new experience, which leverages Anthropic’s Claude under the hood to create an agentic social app built on Bluesky’s underlying protocol, the AT Protocol (or atproto for short).
“It’s a new product — it’s not a part of the Bluesky app,” explains interim CEO Toni Schneider in an interview. (In addition to his CEO role, Schneider is a partner at Bluesky backer True Ventures.) “We’ve launched a lot of things inside Bluesky — Starter Packs and custom feeds, and all those kinds of things. This is a standalone product, and it’s the first one that’s built by Jay’s new team.”

With Attie, anyone will be able to build their own custom feed just by typing in commands in natural language, the same as if they’re chatting with any other AI chatbot. To use the app, people will sign in with their Atmosphere login (meaning their login for any app that runs on atproto, which includes Bluesky). Attie will immediately understand what you’ve been talking about, what sort of things you like, and more, because Bluesky and the wider ecosystem are open systems that share data across apps.
You can ask Attie questions, like what posts you might like to see or repost, and you can use the app to curate your own custom feed, personalized to you.
“You control it, you shape it, without having to write code or know how to set up these feeds,” Schneider says. “It’s the beginning of just having a lot more people be able to build on top of the Atmosphere.”
Plus, he adds, “It is an AI product, but it’s an AI product that’s very people-focused … We think AI is a very powerful technology, but we want to make sure that we use it to build things that really benefit people.”
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At launch, Attie can be used to build and view these feeds, which will later become available to you within Bluesky or any other atproto app. Over time, the plan is to allow Attie’s users to vibe-code their own social apps as well as build tools for other people.

Schneider says that Graber and her team began working on the app a few months ago, which was around the same time she decided to return to building, instead of running the company.
“I think she realized that there was so much more that she wanted to build, and just doing the CEO job kept her busy, and she felt like she wanted more time,” Schneider tells TechCrunch. “As she spent more time, [and] got freed up, I think it became clear that this is her happy place. She’s an amazing leader and visionary, and we want her building more things and not worrying about operating the company,” he says.
Graber says today, AI is being used by the major platforms to serve themselves, not their users, by trying to increase people’s time spent in their apps, harvesting data, and controlling their algorithms.
“We think AI should serve people, not platforms,” Graber said in her announcement of Attie. “An open protocol puts this power directly in users’ hands. You can use it to build your own feeds, create software that works the way you want it to, and find signal in the noise.”
Graber’s decision to once again focus on protocol and product was followed by the company’s announcement that it now has $100 million in additional funding from a round that closed last year. The team hopes that news serves as a signal to the wider community that Bluesky will continue to be around.
“It means we have three-plus years of runway, which is great. That means stability and security for the rest of the ecosystem,” Schneider tells TechCrunch. It also means that Bluesky’s team has time to tackle the bigger challenges ahead, which include adding privacy controls to the protocol and finding a way to monetize the social network of 43.4 million users.
One thing that Schneider assures us is not in the works, however, is any crypto integration — despite the financial backing from multiple crypto investors. That’s something that had worried some Bluesky users, who feared the app would be filled with crypto scams or become a payment tool.
“It’s the kind of investors who were attracted to crypto because of its decentralization, and they were investing in things built on the blockchain that were super decentralized,” Schneider says of Bluesky’s backers in the crypto space. “This is decentralized social, so it fits those who are invested to believe in the platform and the ecosystem opportunity.”
Instead, the company may experiment with other means of monetization. The team hasn’t yet decided if Attie will ultimately require a fee, as it’s only a private beta for the time being. Other ideas being batted around include subscriptions and hosting services for those who want to host their own communities on the protocol.
Schneider, the former CEO of Automattic, the home of publishing platform WordPress.com, sees the potential for the Atmosphere as being similar to WordPress in this way.
“At the center of [the Atmosphere] is a completely open system, so anybody can participate,” he says. “You can have all of these independent, decentralized pieces that work together. With WordPress, that turned into a huge ecosystem with billions of dollars — over $10 billion a year, now — flowing through it.”
Schneider continues, “So it’s gotten very big, even though it’s completely decentralized. And this is what we’re hoping for, for the Atmosphere to have that similar ability for lots of these apps and services to coexist and work together and build an ecosystem.”
Tech
David Sacks is done as AI czar — here’s what he’s doing instead
David Sacks has used up his days as Donald Trump’s AI and crypto czar.
Speaking with Bloomberg on Thursday, the longtime entrepreneur, investor, and podcaster confirmed that his non-consecutive 130-day stint as a special government employee is over and that he’s moving on to co-chair the President’s Council of Advisors on Science and Technology (PCAST) alongside senior White House technology adviser Michael Kratsios.
“I think moving forward as co-chair of PCAST, I can now make recommendations on not just AI but an expanded range of technology topics,” he told Bloomberg via a video interview. “So yes, this is how I’ll be involved moving forward.”
What that means in practice is Sacks will be much further from the power center in Washington than since the outset of this second Trump administration. As AI czar, Sacks had a direct line to Trump and a hand in shaping policy. PCAST is a federal advisory body, so while it studies issues, produces reports, and sends recommendations up the chain, it doesn’t make policy.
The council has existed in some form since FDR, though Sacks made a point to Bloomberg of noting that this particular iteration has “the most star power of any group like this” ever assembled, and it’s hard to argue he’s wrong. The initial 15 members include Nvidia’s Jensen Huang, Meta’s Mark Zuckerberg, Oracle’s Larry Ellison, Google co-founder Sergey Brin, Marc Andreessen, AMD’s Lisa Su, and Michael Dell, among others. (That’s a lot of billionaires.)
Sacks told Bloomberg the council will take up AI, advanced semiconductors, quantum computing, and nuclear power, and that near-term attention will go toward pushing Trump’s national AI framework, released just last week. The framework is aimed at replacing what Sacks described to Bloomberg as a mess of conflicting state-level rules. “You’ve got 50 different states regulating this in 50 different ways,” he said, “and it’s creating a patchwork of regulation that’s difficult for our innovators to comply with.”
What Sacks didn’t address head-on was why the transition is happening now and whether his recent comments were a factor. Earlier this month, on the popular “All In” podcast that he co-hosts, Sacks publicly urged the administration to find an exit from the U.S.-backed war with Iran, walking through a set of worsening scenarios — attacks on oil infrastructure in neighboring countries, the destruction of desalination plants, the possibility of nuclear use by Israel — and calling for a polite way out. Trump responded by telling reporters that Sacks hadn’t spoken to him about the war. (The U.S.-Israel war on Iran has now been going on for approximately 27 days.)
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Asked about the podcast episode on Thursday by Bloomberg, Sacks figuratively threw his hands in the air: “I’m not on the foreign policy team or the national security team,” he said, adding that his podcast comments represented his personal view, not an official one.
For all the marquee names Sacks is bringing to PCAST, it’s worth reflecting on what the council has historically been, which is an advisory body with some influence in some administrations and almost none in others.
President Obama’s version was seemingly the most productive on record, churning out 36 reports over eight years — two of which led to concrete policy changes, including an FDA rule that opened the market for over-the-counter hearing aids.
President Trump’s first-term council, by contrast, took nearly three years just to name its first members, produced a handful of reports, and made no particular mark, while President Biden’s council skewed heavily academic — Nobel laureates, MacArthur fellows, National Academy members — and issued a modest number of reports before the administration ended.
The current PCAST is a completely different animal, built almost entirely from the executive suites of the companies shaping the technology it will advise on.
Now, Sacks is again one of those unencumbered executives, free to resume his life as an investor and entrepreneur. A spokesperson for Craft Ventures, the firm Sacks co-founded and where he remains a partner, has not yet responded to related questions about next steps; TechCrunch reported last year on the ethics waivers Sacks obtained to maintain financial stakes in AI and crypto companies while shaping federal policy in both areas — an arrangement that drew sharp criticism from ethics experts and lawmakers.
Tech
OpenAI shuts down Sora while Meta gets shut out in court
When an 82-year-old Kentucky woman was offered $26 million from an AI company that wanted to build a data center on her land, she said no. Sure, that same company can try to rezone 2,000 acres nearby anyway, but as AI infrastructure stretches further into the real world, the real world is starting to push back.
That tension is everywhere this week, from OpenAI shutting down its Sora app to courts finally starting to hold social platforms like Meta accountable. On this episode of TechCrunch’s Equity podcast, Kirsten Korosec, Anthony Ha, and Sean O’Kane dig into what it looks like when the AI hype cycle meets reality.
Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.
