Technology
VC on how to “survive and thrive” after a round of losses

Founders hope their startups will continually raise larger rounds of funding at rising valuations. However, unexpected challenges, comparable to a global health crisis or a sudden increase in rates of interest, could have a significant impact on a company’s ability to maintain its valuations.
Some of these startups could have to resort to seed rounds, which is recent financing at a lower valuation than the corporate’s previous price. While founders and investors generally try to avoid inheritances, contrary to popular belief, these deals don’t necessarily have a devastating impact on a startup’s future.
“Our first investment when we founded the company in 2021 was to take stock of the company, which had to make a complete change during the pandemic,” said Nikhil Basu Trivedi, co-founder of Footwork, on the TechCrunch Disrupt 2024 stage. “Their initial business was in the university housing market, which was decimated when the pandemic hit.”
Footwork reset the corporate’s cap table and created a recent pool of stock options for the whole team, Basu Trivedi said, adding that the corporate’s recent business, a restaurant subscription platform called Table22, “managed to survive and thrive because of this experience.” Last week, Table22 announced Series A for $11 million led by Lightspeed Venture Partners.
Although definitely not all corporations which have to undergo a round of declines make a full recovery. Elliott Robinson, a partner at Bessemer Venture Partners, said on stage that if a company is struggling, “there’s a pretty good chance that someone else in your space or a competitor is struggling with a lot of the same challenges.”
Robinson encouraged startups in these positions to stay the course. “If you lose a defensive round, there’s nothing wrong with that,” he said. “In a difficult market environment, this might actually be a victory. You may not see or feel it until the fourth quarter or six, but most of the time the market can open up to you if you happen to’re willing to hang in there.
Notable corporations which have seen valuation hits include Ramp, which was valued at $5.8 billion last yr, a 28% reduction from its previous price of $8.1 billion. The fintech gained some of its value in April this yr when Khosla Ventures valued it at $7.65 billion.
Down rounds weren’t quite common throughout the pandemic boom, but their incidence as a percentage of total deals has greater than doubled from 7.6% in 2021 to 15.7% according to PitchBook data in the primary half of 2024.
Startup prices dropped significantly after the US Fed raised rates of interest, and many corporations’ valuations remain inflated relative to their performance, said Dayna Grayson, co-founder of Construct Capital. Some of these corporations are likely considering probate rounds, but many founders find such deals very stressful.
In the probate round, employees and founders receive a smaller percentage of ownership of the corporate.
“I think the scariest thing for a lot of founders is managing morale,” Grayson said. “But you can absolutely motivate people through down rounds.”
Robinson, who has guided three portfolio corporations through periods of decline and decline over the past yr and a half, explained how investors motivated employees and executives at one of those corporations to stay engaged after a round of declines. He explained that while everyone at the corporate experienced a valuation loss, investors created a bonus pool to reward the whole team with money bonuses in the event that they managed to achieve a 60% revenue increase inside a certain time-frame. Robinson said founders and top executives can even receive additional capital in the shape of stock options in the event that they meet certain revenue goals.
“This allowed us to make the company-wide goals and management goals very clear,” he said, adding that it “reminded people that the core business is still solid.”
Many enterprise capitalists are currently wondering what is going to occur when multiple AI corporations raise capital at high valuations.
“I think it would be hard to argue that there aren’t overly inflated valuations in the market right now,” Grayson said.
Basu Trivedi, who has invested in several AI startups including AI detector GPTZero, said many AI corporations “have the fundamentals to justify the hype and valuations,” but later added that it’s still hard to say. which artificial intelligence corporations will succeed. “Some of these categories are very competitive,” he said. “There are about 20 companies that do something really similar.”
Technology
One of the last AI Google models is worse in terms of safety

The recently released Google AI model is worse in some security tests than its predecessor, in line with the company’s internal comparative test.
IN Technical report Google, published this week, reveals that his Flash Gemini 2.5 model is more likely that he generates a text that violates its security guidelines than Gemini 2.0 Flash. In two indicators “text security for text” and “image security to the text”, Flash Gemini 2.5 will withdraw 4.1% and 9.6% respectively.
Text safety for the text measures how often the model violates Google guidelines, making an allowance for the prompt, while image security to the text assesses how close the model adheres to those boundaries after displaying the monitors using the image. Both tests are automated, not supervised by man.
In an e-mail, Google spokesman confirmed that Gemini 2.5 Flash “performs worse in terms of text safety for text and image.”
These surprising comparative results appear when AI is passing in order that their models are more acceptable – in other words, less often refuse to answer controversial or sensitive. In the case of the latest Llam Meta models, he said that he fought models in order to not support “some views on others” and answers to more “debated” political hints. Opeli said at the starting of this yr that he would improve future models, in order to not adopt an editorial attitude and offers many prospects on controversial topics.
Sometimes these efforts were refundable. TechCrunch announced on Monday that the default CHATGPT OPENAI power supply model allowed juvenile to generate erotic conversations. Opeli blamed his behavior for a “mistake”.
According to Google Technical Report, Gemini 2.5 Flash, which is still in view, follows instructions more faithfully than Gemini 2.0 Flash, including instructions exceeding problematic lines. The company claims that regression might be partially attributed to false positives, but in addition admits that Gemini 2.5 Flash sometimes generates “content of violation” when it is clearly asked.
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“Of course, there is a tension between (after instructions) on sensitive topics and violations of security policy, which is reflected in our assessment,” we read in the report.
The results from Meepmap, reference, which can examine how models react to sensitive and controversial hints, also suggest that Flash Gemini 2.5 is much less willing to refuse to reply controversial questions than Flash Gemini 2.0. Testing the TechCrunch model through the AI OpenRoutter platform has shown that he unsuccessfully writes essays to support human artificial intelligence judges, weakening the protection of due protection in the US and the implementation of universal government supervisory programs.
Thomas Woodside, co -founder of the Secure AI Project, said that the limited details given by Google in their technical report show the need for greater transparency in testing models.
“There is a compromise between the instruction support and the observation of politics, because some users may ask for content that would violate the rules,” said Woodside Techcrunch. “In this case, the latest Flash model Google warns the instructions more, while breaking more. Google does not present many details about specific cases in which the rules have been violated, although they claim that they are not serious. Not knowing more, independent analysts are difficult to know if there is a problem.”
Google was already under fire for his models of security reporting practices.
The company took weeks to publish a technical report for the most talented model, Gemini 2.5 Pro. When the report was finally published, it initially omitted the key details of the security tests.
On Monday, Google published a more detailed report with additional security information.
(Tagstotransate) Gemini
Technology
Aurora launches a commercial self -propelled truck service in Texas

The autonomous startup of the Aurora Innovation vehicle technology claims that it has successfully launched a self -propelled truck service in Texas, which makes it the primary company that she implemented without drivers, heavy trucks for commercial use on public roads in the USA
The premiere appears when Aurora gets the term: In October, the corporate delayed the planned debut 2024 to April 2025. The debut also appears five months after the rival Kodiak Robotics provided its first autonomous trucks to clients commercial for operations without a driver in field environments.
Aurora claims that this week she began to freight between Dallas and Houston with Hirschbach Motor Lines and Uber Freight starters, and that she has finished 1200 miles without a driver to this point. The company plans to expand to El Paso and Phoenix until the top of 2025.
TechCrunch contacted for more detailed information concerning the premiere, for instance, the variety of vehicles implemented Aurora and whether the system needed to implement the Pullover maneuver or the required distant human assistance.
The commercial premiere of Aurora takes place in a difficult time. Self -propelled trucks have long been related to the necessity for his or her technology attributable to labor deficiencies in the chairman’s transport and the expected increase in freigh shipping. Trump’s tariffs modified this attitude, not less than in a short period. According to the April analytical company report from the commercial vehicle industry ACT researchThe freight is predicted to fall this yr in the USA with a decrease in volume and consumer expenditure.
Aurora will report its results in the primary quarter next week, i.e. when he shares how he expects the present trade war will affect his future activity. TechCrunch contacted to learn more about how tariffs affect Auror’s activities.
For now, Aurora will probably concentrate on further proving his safety case without a driver and cooperation with state and federal legislators to just accept favorable politicians to assist her develop.
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At the start of 2025, Aurora filed a lawsuit against federal regulatory bodies after the court refused to release the appliance for release from the protection requirement, which consists in placing warning triangles on the road, when the truck must stop on the highway – something that’s difficult to do when there isn’t a driver in the vehicle. To maintain compliance with this principle and proceed to totally implement without service drivers, Aurora probably has a man -driven automotive trail after they are working.
(Tagstranslate) Aurora Innovation
Technology
Sarah Tavel, the first woman of the Benchmark GP, goes to the Venture partner

Eight years after joining Benchmark as the company’s first partner, Sarah Tavel announced that she was going to a more limited role at Hapeure Venture.
In his latest position as a partner Venture Tavel will proceed to invest and serve existing company boards, but may have more time to examine “AI tools on the edge” and fascinated with the direction of artificial intelligence, she wrote.
Tavel joined Benchmark in 2017 after spending a half years as a partner in Greylock and three years as a product manager at Pinterest. Before Pinterest, Tavel was an investor in Bessemer Venture Partners, where she helped Source Pinterest and Github.
Since its foundation in 1995, the benchmark intentionally maintained a small team of six or fewer general partners. Unlike most VC corporations, wherein older partners normally receive most of the management and profits fees, the benchmark acts as an equal partnership, and all partners share fees and returns equally.
During his term as a general partner of Benchmark, Tavel invested in Hipcamp on the campsite, chains of cryptocurrency intelligence startups and the Supergreaty cosmetic platform, which was purchased by Whatnot in 2023. Tavel also supported the application for sharing photos of Paparazhi, which closed two years ago, and the AI 11x sales platform, about which TechCrunch wrote.
(Tagstotransate) benchmark
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