Tech
This VC’s best advice for building a founding team
One of the most consequential decisions early-stage founders have to make is who they will bring on as their founding team. The first five to 10 employees will have a massive impact on the company culture, and the precedents set with them are difficult to change down the road. That’s why this season on Build Mode, we’re diving into what it takes to build a world-class founding team.
To kick off season two, Isabelle Johannessen is joined by Yuri Sagalov, managing director at General Catalyst and former founder, YC partner, and seed investor at Wayfinder Ventures. Sagalov has worked with hundreds of pre-seed and seed-stage companies and has seen firsthand the best (and worst) ways to hire in the early days.
In this episode, Sagalov offers his best pieces of advice for founders who are hiring their first team, strategically building their cap table, and forming compensation structures that can scale with the company.
The three types of investors (and which one to avoid)
Sagalov categorizes investors into three main buckets: the ones that are heavily involved and function as an extension of your team, the ones that will give you a check and then vanish, and the micromanagers.
The first type of investor is the most valuable according to Sagalov: “They’re going to help you with recruiting, hiring, go to market. And the most interesting thing with those investors is often it’s completely disconnected from the check size.”
Although it may feel counterintuitive to turn down investments, working with VCs who will become overly involved in the process may cause more harm than good in the long run. Sagalov said, “The only bucket that I avoid is this third bucket of investors who give you money and they’re kind of in your kitchen, meddling. They have an opinion on everything. They get stressed out when things don’t go right.”
In a fundraise, everyone is putting their best foot forward, so Sagalov suggests reaching out to current portfolio companies before committing to an investor. “The best thing you can do as a founder is actually talk to portfolio companies, talk to other founders that they’ve worked with, ask for concrete examples of how they’ve been helpful, if they’ve been helpful, and then actually ask how they were when things didn’t go right.”
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How to split equity with a co-founder
As an investor, Sagalov looks for co-founders who have created an equity split that is fair but also hedges for future misalignments. He suggests creating a slight differentiation by plus or minus one share so there is a clear way to break deadlocks.
Sagalov also reminds early-stage founders that these early decisions have staying power: “Oftentimes founders over-index on ‘I came up with the idea, so I deserve the lion’s share.’ Most of the journey of the company is ahead of them. You don’t want someone waking up five years from now feeling like they put in equal blood, sweat, and tears but own one-fifth of the equity.”
Talk to early employees about risk and compensation
The first few hires should be all in on the startup’s mission. Oftentimes, joining an early-stage startup can be perceived as risky. Sagalov emphasized the importance of discussing the risks and potential benefits: “Fundamentally, what you’re looking for when you’re hiring the first few people are missionaries who, beyond even the compensation, want to join you for the mission of the business,” he said. “You want to be honest with them that there is a lot of risk on the journey.”
Next week on Build Mode, we’re talking with Sarah Lucena, the founder and CEO of Mappa, who discusses how founders can take compatibility into account and hire the right fit for the team the first time, using their AI tool.
Isabelle Johannessen is our host. Build Mode is produced and edited by Maggie Nye. Audience Development is led by Morgan Little. And a special thanks to the Foundry and Cheddar video teams.
Tech
CISA gives US federal agencies three days to fix a VPN bug under attack by a ransomware gang
A ransomware group is actively exploiting an unpatched flaw in security tools used across the U.S. federal government, prompting the U.S. cybersecurity agency CISA to order all civilian agencies to remediate the vulnerability by end of day Wednesday.
Cybersecurity firm Check Point Software said the bug affects several of its remote access tools, firewalls, and VPNs, which act as digital gatekeepers to protect company networks from unauthorized access.
The company said in a separate blog post that it had confirmed the bug was being exploited by a known ransomware group called Qilin to hack into “a few dozen targeted organizations globally” that rely on the affected security tools.
The hacks began on May 7 but activity began to rise last week, per Check Point.
Given the risk to the federal government’s enterprise network, CISA on Monday ordered all civilian federal agencies — such as Homeland Security, the Department of State, and the Treasury — to fix any instances where agencies are using the affected products by end of day June 11. The agency cited BOD 22-01, its operational guidance memo that allows it to instruct agencies to take security action when there is an active cyber threat to government networks.
Tech
WWDC 2026: Everything announced on Siri AI, iOS 27, Apple Intelligence, and more
Apple’s WWDC 2026 event kicked off yesterday at Apple Park, starting a week packed with reveals about Siri AI, iOS 27, Apple Intelligence, and more, along with developer events and demos as Apple looks to reassert itself with users and developers who haven’t been impressed with their releases within the wildly competitive AI space. It also marks CEO Tim Cook’s last WWCD with the company, after announcing he’s handing things off to Senior Vice President of Hardware Engineering John Ternus on September 1.
Did they succeed? Keep tabs on this page, and the rest of our ongoing coverage, to find out!
TL;DR — Apple spent WWDC 2026 catching up
This is far from our consumer news editor Sarah Perez’s first WWDC, and with all that context in mind, she provides the subtext on much of what was being showcased.
For the past two years, Apple has been racing to catch up in AI while frustrations with its core software quietly added up: a design overhaul users hated, a search function that barely worked, a file-sharing feature that routinely failed, and a Health app that didn’t focus enough on half its user base. Apple didn’t say any of that on Monday. But the structure of its WWDC keynote said it for them, leading with fixes before features, and framing a better Siri as one item on a long list of improvements rather than the main event.
Apple reveals Siri AI

As expected, Apple made the case for an improved experience with its long-standing Siri assistant, which it admitted faces greater expectations from users in the age of AI. With Google Gemini under the hood, Apple claims that the new Siri updates will make it more capable, conversational, and compatible with visual intelligence, and it will be housed in a stand-alone app in addition to working across existing apps. You can get a full rundown of all the new Siri AI updates right here.
Before rolling out the enhancements and features, Apple was adamant about its privacy-centric approach to AI. “We believe privacy in AI is non-negotiable,” Apple senior vice president Craig Federighi said during the stream, going so far as to say that “data is only used to execute your request, and outside experts can continue to verify this promise at any time.”
A potential foldable iPhone tease
No, Apple didn’t make such a big reveal during WWDC, but researcher @M1Astra dug through files within the iOS 27 developer beta and found references to things like “foldState,” “angleDegrees,” and other things that allude to the states a foldable device can be put into. And it’s not like there hasn’t been a bounty of foldable iPhone rumors over the past few years. Stay tuned for Apple’s annual iPhone event in September to see if we do get a formal reveal, unless Ternus really will be changing things up in the post-Cook era.
The next generation of Apple Intelligence

To go along with its new Siri AI overhaul, the tech giant announced a slew of new Apple Intelligence updates across its apps, including tab management for Safari, one-tap password updating, cross-app context awareness, and more. Additionally, Messages is getting AI-powered reply suggestions, while the Phone app can now pull context from other apps like Mail and Messages mid-call.
Apple said it collaborated with Google and the Gemini family of models to develop the next generation of Apple Foundation Models that power its integrated Apple Intelligence experiences.
Liquid Glass gets some opt-in rollbacks

If you are among those who aren’t exactly keen on last year’s Liquid Glass design updates, you aren’t alone. And while Apple isn’t switching to a new aesthetic, you will be able to dial back some of its elements, or really highlight them if you’re vibing with it. And for the app icon critics out there fresh from Spotify’s disco ball update, Apple showed off a new, layered approach to Liquid Glass within its apps.
Everything else coming to iOS 27
As is the case every year, a number of small tweaks and updates arriving with the upcoming iOS update didn’t get their time in the sun during Apple’s broadcast, but that doesn’t mean they’re not noteworthy. Ivan Mehta brought together several of them right here, including:
- Full-screen homepage widgets.
- Separate volume controls for alarms, timers, alerts, and so on.
- Design tweaks for the weather app, with highlights on notable upcoming events.
Image Playground gets another chance

The AI image-generating app Image Playground hasn’t exactly taken the world by storm, which depending on your view on AI slop may be a good thing. However, Apple rolled out a renewed pitch for users to actually start generating images, with a focus on its possible uses across many features of your devices, with an exclusion set on any training based on photos generated using the app. That, plus performance updates coming alongside Apple Intelligence upgrades, might at least take it out of the “suck” category for TechCrunch senior writer Amanda Silberling.
iOS 27 is stretching back to the iPhone 11

Claiming that its upcoming update will be “available to more users than any iOS release ever,” Apple revealed that all devices from the iPhone 11 onward will be eligible for their upcoming software update. And that update comes with a flurry of performance improvements it’s touting across a number of its OS releases this year, with Apple claiming that new photos will appear 70% more swiftly, AirDrop transfers will be 80% faster, and CPU schedulers will be improved to help multitasking.
New parental controls for iPhones

Apple spent a significant amount of the WWDC event showcasing a suite of tools for parents looking for greater control over what their children’s devices can and can’t do. Parents will be able to determine who their kid can call on the phone and what apps and websites they can access, with Apple making suggestions about how those restrictions can change over time. By default, though, its “Ask to Browse” feature limits access, and “Ask to Buy” for App Store and in-app purchases will be set as a default for devices set up for children younger than 13. You can get more parental control details right here.
Search gets an overhaul
Frustrated with searching through your iPhone for, well, pretty much anything? Search got a dedicated session during WWDC to tout a series of improvements, which you can learn more about here.
“We’ve all had that moment where you search for something you know is there, but it just won’t show up,” Stacey Ford, vice president of OS Program Management said. “So on iOS, iPadOS, and macOS, we’ve rebuilt the foundation of search that powers Spotlight, Photos, and Mail.

To take on popular AI photo-editing apps, Apple is bringing new AI features to its Photos app. A new spatial “Reframe” feature will let you use AI to adjust the perspective of an image as if you had repositioned the camera in the original scene. The new “Extend” tool expands images to adjust the aspect ratio or add more to a scene. The app’s popular “Cleanup” tool is also getting an upgrade so users can remove distractions with better quality and more realistic infill with generative AI.
Apple takes on AI dictation apps
Apple is launching a new systemwide dictation experience that’s built into the keyboard on iOS 27 and can correct spellings, punctuation, and capitalization. The update comes as AI dictation apps like Wispr Flow and Willow have been gaining popularity. These apps clean up filler words like “ums” and “ahs” and format the text after transcribing based on context.
Subscription bundles are headed to the App Store
For the first time, developers will be able to partner with each other to provide access to different subscriptions, for a lower bundled price. It’s not an uncommon practice for anyone who’s been pitched by various streaming services searching for subscriber growth, but it’s the first time this is available for things like productivity or photography apps in the App Store.
The App Store will start giving personalized recommendations
And if a bundled offer isn’t compelling enough, your interests and behavior will power a new means of discovery for developers: personalized recommendations that will appear across several App Store locations. These recommendations will include “App Notes” that detail why they’re appearing among other apps.
Shortcuts adds natural language creation

Apple is using AI to make its visual-scripting tool, Shortcuts, easier to use in iOS 27. The updated experience will allow users to write a prompt and simply describe what they want to do. The AI update makes the Shortcuts app more approachable and expands what non-technical people can do.
Health gets perimenopause insights

Apple’s Health app is adding perimenopause and menopause support to its existing cycle-tracking feature. The update embraces a topic that has gone mainstream, giving Apple a new product opportunity in a rapidly expanding market, as digital health tools targeting this demographic have attracted significant investment in recent years.
Tim Cook says farewell
At the end of the keynote, Tim Cook had a farewell message reflecting on his time as CEO:
Over the years, you have helped people connect, create, learn, and experience the world in extraordinary new ways, and with the incredible capabilities we introduce today, and so many more still to come, I truly believe the best is still ahead at Apple. Getting the best products in the world to deliver experiences that enrich people’s lives has always been our North Star. It’s been the honor of a lifetime to help advance that mission with teams whose creativity, care, and conviction continue to make a lasting difference in people’s lives.
Catch up on the rest of WWDC 2026’s reveals here
Miss out on WWDC? You can always catch up on the archive of the full event via the stream above or on Apple’s YouTube page right here.
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Tech
Can tech companies learn to love cheaper AI models?
The AI boom has been built on a basic assumption: Bigger models are more powerful, and the most powerful models win. Now, the industry is about to learn what happens if that assumption starts to break.
Mounting costs have already pressured users to give smaller and cheaper models a second look. This cost-conscious model-shopping is new and it’s unclear how it will affect the industry, but the impact is likely to be significant.
One prediction, laid out best by Coinbase co-founder Brian Armstrong, is that it will result in the vast majority of tasks shifting to cheaper models.
“[D]emand for intelligence is near infinite, but 80% of workloads will be running on 99% cheaper models within 12-18 months,” Armstrong wrote on X. “20% of workloads will still run on latest gen models where IQ maxing is important.”
It’s hard to overstate what a significant shift it will be for the AI industry if Armstrong’s prediction comes true.
Before now, most AI companies have competed on quality, which has meant defaulting to the most advanced available model. If those same jobs can be handled by cheaper models without affecting quality, it would mean a massive shift in the economics of AI. And critically, much of the savings would be coming out of the pockets of the big labs, dealing a financial blow to OpenAI and Anthropic just as they’re heading for their IPOs.
It’s a potentially seismic change in the industry, resting on one basic question: Are companies ready to switch to smaller models?
Initial tests suggest that, when the system is arranged right, cheaper models could sub in without any sacrifice in quality. In a recent test by the legal AI tool Harvey, the company was able to reduce inference costs by 3x without reducing quality. The test, performed in partnership with the inference platform Fireworks AI, combined Claude Opus and Fireworks’ GLM 5.1, and shifted to Opus for the most intensive tasks. The result was a significantly lower load in terms of server time and overall cost.
“Quality comes first, and in legal it always will,” Harvey co-founder Gabe Pereyra told TechCrunch, referring to the AI legal services his startup provides. “However, the definition of quality is evolving from simply using the most powerful model for everything, to using the best model that gets the right answer most efficiently.”
This trend is often framed in terms of major labs versus Chinese models or open-weight ones, but that misses the bigger point. The real divide isn’t between proprietary and open models; it’s between large models and small ones. You can save money by switching from GPT-5.5 to DeepSeek’s V4 Flash, but switching to GPT-5.4-mini works just as well.
There’s an active price war going on between in-house inference from the big labs and independently served open-weight models. For the bigger question of small versus large, it doesn’t really matter which kind of small model wins out.
All of this might seem obvious — of course you shouldn’t use more compute than necessary — but it runs counter to the scaling-first approach that has dominated the industry until now. Inspired by the bitter lesson, labs have leaned hard into training the most compute-intensive models possible, pushing the frontier of what AI models can do. With prices heavily subsidized by investors, clients had no reason to choose anything but the most advanced option.
With token prices rising and subsidies slowing down, users are facing cost pressure for the first time. We don’t know whether the new cost pressure will actually drive enterprise users to smaller models. They could just as easily economize by making fewer calls, using less context, or simply giving up on the least promising deployments.
But if it turns out that most deployments can be run just as well on a smaller model, it could put a serious damper on the growing demand for inference — and raise new questions about how to justify the cost of training a frontier model.
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