Connect with us

Tech

From Moon hotels to cattle herding: 8 startups investors chased at YC Demo Day

Investors have flocked to Y Combinator’s Demo Days for years to get their hands on promising startups building cool tech. After all, the accelerator has produced some of the biggest tech companies in the world, from Airbnb and Reddit to Dropbox, Zapier and Stripe.

That’s why we make it a point to keep an eye on the event to spot the most interesting companies from each batch. As I’ve been doing nearly every quarter now that the accelerator has moved to four cohorts a year, I asked nearly a dozen investors which startups were most in demand at Y Combinator’s Winter 2026 Demo Day earlier this week.

To ensure our list included truly sought-after standouts, a company had to be flagged as a ‘fave’ by at least two different venture capital investors to make the cut.

As for valuations, I’m hearing that at least a couple startups have raised funds at a $100 million price tag, though notably, those startups are already bringing in run-rate revenue of $1 million or more. Even for the less buzzy startups not on this list, the “default” valuation this quarter seems to be around $30 million, which investors told me is roughly two-fold the current seed market average.

Without further ado, here’s the list:

Beyond Reach Labs

What it’s building: Deployable solar arrays for satellites.

Why it’s a fave: The startup claims it has developed solar arrays that are the size of a dining table at launch, but unfold to the size of a football field when they reach orbit. The founders say their system can increase available power ten-fold while slashing costs by 88%. Beyond Reach already has a flight planned for 2027, and says it has secured $325 million in letters of intent from leading space companies.

Techcrunch event

San Francisco, CA
|
October 13-15, 2026

Byteport

What it’s building: A ridiculously fast file transfer protocol.

Why it’s a fave: According to Byteport’s founder Jayram Palamadai, existing file transfer protocols like TCP are too slow for the AI age. That’s why he built DART, short for Dynamic Accelerated Record Transfer, which can apparently transfer large files at an average of 10 times faster than TCP, and even up to 1,500 times faster on “reliable connections.”

Hex Security

What it’s building: Continuous AI-powered security testing tools.

Why it’s a fave: To fight hackers using AI to launch non-stop cyberattacks, Hex is building AI agents that can act as penetration testers, constantly probing for vulnerabilities and security gaps in companies’ infrastructure. By automating what was once a manual process performed infrequently, Hex claims it can prevent attacks at a fraction of the cost. The startup claims it has crossed run-rate revenue of more than $1 million in just eight weeks, which may be why VC investors, as one person told me, “were fighting” to invest in the company.

Grazemate

What it’s building: Autonomous drones to herd and monitor cattle.

 Why it’s a fave: Moving cattle on massive ranches is an expensive and dangerous undertaking, often involving helicopters and motorbikes. GrazeMate’s founder, who grew up on a 6,000-head cattle station in Australia, saw a way to make life easier for ranchers, so he dropped out of college where he was pursuing a robotics degree.

GrazeMate’s drones can automatically guide cattle to different areas of a ranch, estimate animals’ weight, grass availability and growth, and can follow pre-specified route plans.

GRU Space

What it’s building: Permanent lunar infrastructure, starting with a hotel on the Moon.

Why it’s a fave: “Humanity will become interplanetary. It’s a matter of not if, but when, and the time is now,” says GRU Space founder Skyler Chan, a recent Berkeley grad who previously built software at Tesla and worked on NASA-funded space tech.

Chan claims his startup has developed a “moon factory” that can turn lunar soil into structural bricks, which he plans to use to build a luxury hotel on the moon as a “wedge” for broader lunar infrastructure. GRU’s astronomical aspirations, including its goal to open the first lunar hotel by 2032, have made it one of the most talked-about startups of this YC batch. The company has already secured $500 million in letters of intent, an invitation to the White House, and even a reservation from the Trump family.

Luel

What it’s building: A marketplace for human-captured data to train multimodal AI.

Why it’s a fave: Founded by two UC Berkeley dropouts, Luel is building a data marketplace that connects AI model makers with contributors who can submit “daily-life” activities, such as ironing or patient-doctor conversations, to provide audio, video and image data. The company claims it’s generating ARR of nearly $2 million within six weeks, fueled by high demand from robotics and voice AI labs.

Pax Historia

What it’s building: An alternative-history strategy game powered by AI.

Why it’s a fave: Pax Historia allows users to rewrite history in a way traditional strategy games can’t. Using generative AI, the game responds to infinite, complex geopolitical scenarios, from “What if Rome never fell?” to “What if the USA took over Greenland?” The founders claim the game currently attracts 35,000 daily users who have played nearly 20 million rounds.

Stilta

What it’s building: Agentic AI for intellectual property and patent lawyers.

Why it’s a fave: Stilta’s founders claim that patent disputes can cost up to $4 million per case, largely due to manual document review costs. The startup says its AI agent can search and analyze patents across databases and scientific literature, saving both time and legal fees.

The company’s agents are already being used by IP lawyers at pharmaceutical giant Roche. For investors, another attractive aspect is that the founders hail from Sweden — recent Swedish successes like Lovable and Legora have created something of a “halo effect” around companies from the region, one VC investor said.

source

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

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.”

ScreenshotImage Credits:Attie from Bluesky

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.”

Techcrunch event

San Francisco, CA
|
October 13-15, 2026

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.

ScreenshotImage Credits:Attie from Bluesky

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.”

source

Continue Reading

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.)

Techcrunch event

San Francisco, CA
|
October 13-15, 2026

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.

source

Continue Reading

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. 


source

Continue Reading