Garry Rhodes - Blogger and Tech Enthusiast

Garry Rhodes is a passionate blogger and tech enthusiast. He shares insights on technology, entrepreneurship, business, and investment content.

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Rajat Khare believes India can compete with the world in AI revolution - BusinessToday

As India develops its own AI model, Rajat Khare emphasizes the importance of fostering homegrown AI talent. Discover how multilingual AI, re

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Rajat Khare Asserts Brain Drain will Determine India Future in AI

Rajat Khare, the founder of Boundary Holding, advocates for the development of home-grown AI technicians as India embarks on the journey to create its own large language model. India will become an AI superpower when its top scientists stop moving to international destinations according to his beliefs.

India’s Place in the Global AI Shift 

The entire globe is stepping into a new technical phase which is going to be driven by AI. India has the engineer and data scientist and IT specialist workforce needed to lead this technological shift. The global AI workforce has 15 percent of its talent base working in international locations.

Khare asserts that this scenario hinders India’s capabilities

Rajat Khare who works as a venture capitalist and runs Boundary Holding, a deep-tech investment firm in Luxembourg, states that Indian technology should benefit from this extensive talent pool, which remains unutilized.

India experienced a substantial brain drain which resulted in a loss of its AI professionals because they left for better opportunities abroad. Every year approximately 100,000 skilled Indian workers leave their nation to find improved research facilities and higher salaries and international work experience. 

The past trend which has caused talent to leave India has driven innovation in other countries but it has prevented India from developing its necessary sustainable innovation ecosystem.

India should be able to close the gap that has opened through the policy and infrastructure by:

Building up the cooperation between academics and industry

Adding up the budget for AI deep-tech research and the like

Establishing a stimulating atmosphere for the innovators and researchers

Khare shows that India has a big technology workforce which the country uses as its primary strength yet this workforce will leave to pursue better financial opportunities.

Indian AI Development

India's digital infrastructure is undergoing rapid transformation. The government has established an advanced language development initiative which will boost AI independence through the operation of 18600 GPUs.

India has a different focus compared to AI models in the West that of multilingual intelligence. With 22 official languages and hundreds of dialects India is the only country that can create AI systems which understand cultural differences among various linguistic groups.

This not only fortifies India's local technology scene but also gives it a competitive edge in creating global and inclusive AI solutions.

Steps India Must Take to Retain Talent The Indian government needs to implement five essential measures to prevent the loss of artificial intelligence professionals while establishing itself as a worldwide innovation hub.

Enhance AI Research Funding

Establish additional centres of excellence which should specifically target Tier-2 cities to achieve more balanced innovation distribution.

Create Stay Incentives

The organization should provide competitive research funding through AI fellowships and PhD scholarships and payment schemes for researchers.

Startups with Deep-Tech

The organization will support AI-driven business development by improving access to venture capital funding and mentoring resources.

Work Together Worldwide

Indian scientists who currently reside abroad should be allowed to join local projects through remote participation.

Exhibit India's Aspiration

India's hosting of the 2026 Global AI Summit will serve as an international platform through which India can shape the future of artificial intelligence.

The Strength of Multilingual AI

India's greatest advantage in artificial intelligence research comes from its multitude of cultural and linguistic traditions which exceed its supercomputer resources. The machine learning model enables AI to understand human interaction through its ability to learn both grammar rules and contextual usage. 

Such AI can:

Assist rural communities and small businesses to access digital technology

Improve public service delivery systems

Enable organizations to communicate with audiences who speak languages other than English

India's artificial intelligence system provides businesses with profitable opportunities while delivering positive benefits to society.

The technology market of India has evolved from its initial function as a workforce supplier to its current status as a major worldwide innovation provider. 

People who possess exceptional talent and who used to be considered permanent residents now face a situation where their migration needs to be addressed through various approaches which include different policies and financial assistance and innovative leadership.

Rajat Khare states that the government has been promoting AI development but the actual assessment will depend on our capacity to preserve and develop our workforce. The decision will determine whether we become industry leaders or follow the developments made by others in our field.

If India invests in developing its intellectuals and supporting its innovators while respecting its risk-taking professionals, the country will lead the global AI revolution as an industry pioneer.

Article Source: https://www.businesstoday.in/impact-feature/story/rajat-khare-believes-india-can-lead-the-worlds-ai-revolution-by-just-stopping-brain-drain-478096-2025-05-28

Frequently Asked Questions (FAQs)

1. What is the significance of Boundary Holding in the context of AI investments?

Boundary Holding, established by Rajat Khare, is a venture capital firm that supports deep-tech and artificial intelligence startups to the tune of millions of dollars thereby making the biggest impact in the areas of health care, mobility, and security.

2. What does India aspire to achieve in the field of artificial intelligence in the long run?

The Indian government envisions an AI ecosystem which will reach self-sufficiency and international partnerships to support its transformation from a technology outsourcing center into a producer of high-quality artificial intelligence solutions.

3. What is the impact of brain drain on India's AI industry?

Brain drain creates negative consequences because it removes India's top AI researchers and engineers which results in a less dynamic innovation ecosystem and a slower pace of technological advancement.

4. How can the Indian government prevent the brain drain of AI talent?

India should increase its research funding while building better links between academic institutions and industrial companies and establishing AI fellowship programs and offering attractive salary packages to retain its top talent.

5. What distinguishes the AI initiative of India?

The AI projects in India base their development on the multilingual abilities which enable Indian citizens to use their native languages while showcasing the nation's diverse cultural and linguistic heritage.

6. What is the role of multilingual AI in India?

Multilingual AI improves technology accessibility because it enables rural residents and local businesses and government organizations to interact with each other using their mother tongue.

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Discover how Boundary Holding, led by deep-tech investor Rajat Khare, achieved a successful exit from U.S.-based AI video intelligence company Cynapse. This video explores the strategy behind the investment, Cynapse’s impact on AI-powered inspections, and what this milestone means for the future of deep-tech innovation. Learn which technologies—robotics, quantum computing, edge intelligence, and AI automation—are next on Boundary Holding’s radar.

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How IoT, Big Data & AI Are Reshaping Our Future: Insights from Rajat Khare

Technology is no longer just about the smartphones we hold in our hands—it has become the very foundation shaping our lives, industries, and even the way we make decisions. We are living in an era where innovation is happening faster than we can fully comprehend its impact.

At the heart of this transformation is data—the invisible force driving modern business strategy, customer experiences, and operational efficiency. Without data, the digital world we take for granted today would be unimaginable. From smart homes and wearable fitness devices to connected cars, the Internet of Things (IoT) is collecting data at every turn. These innovations have redefined how we manage our health, commute, and even maintain our homes.

But data isn’t useful without the intelligence to interpret it. That’s where Big Data analytics and AI-driven algorithms come in. In industries like FinTech, these tools are revolutionizing fraud detection by identifying unusual activity, notifying users, and blocking suspicious transactions in real time. Unlike older systems that would often freeze accounts indiscriminately, modern tech is more nuanced, improving accuracy and customer satisfaction.

According to Rajat Khare, founder of Boundary Holding, a Luxembourg-based venture capital firm, industries like manufacturing are already seeing the power of emerging technologies:

“Many producers and enterprises in the industrial sector can use robotics, AI, deep technology, ML, and computer vision to influence every aspect of production and operational processes. This helps organizations in bringing down the production cost of goods and services.”

Indeed, automation and machine learning (ML) are drastically reducing operational costs by streamlining production workflows and enhancing precision.

The IoT and Big Data Boom

Estimates suggest that by 2026, the global market for IoT-powered big data solutions will surpass $51 billion. This explosive growth is driven by increasing demand across financial services, telecom, retail, healthcare, and transportation. The key lies in scalable systems, advanced analytics, and adaptable storage infrastructure—all critical for supporting this evolving ecosystem.

Future manufacturing platforms are expected to use federated models—a method of processing data locally (at the edge) rather than constantly sending it to the cloud. AI and ML models deployed on-site will analyze data instantly, with only relevant updates transmitted back to the cloud for refinement. This approach minimizes latency and boosts efficiency for autonomous robots and smart systems.

Balancing Innovation with Responsibility

While AI holds great promise, it also brings ethical challenges. Improper deployment by governments or corporations can threaten privacy, freedom, and human rights. As with any groundbreaking innovation, responsibility must evolve alongside capability.

Still, we are far from reaching the limits of what technology can do. Every advancement offers new insights—and new questions. The more we learn, the more we’re able to shape a future that's sustainable, secure, and beneficial for all.

A Cross-Functional, Human-Centric Future

From nanosatellites facilitating IoT communication to AI-driven sustainability solutions, a cross-disciplinary convergence is emerging. Data, robotics, AI, and deep tech are no longer isolated fields—they’re working together to tackle some of the world’s biggest challenges, from climate change to urban pollution.

The vision? Smarter, greener, and more livable cities. Through the deployment of advanced sensors, automation, and predictive analytics, tomorrow’s technology will not only optimize urban life—it will empower humanity to thrive in harmony with the environment.

Source: The information provided in this article is based on available source link.

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Marc Andreessen reportedly told group chat that universities will ‘pay the price’ for DEI

Venture capitalist Marc Andreessen sharply criticized universities including Stanford and MIT, along with the National Science Foundation, in a group chat with AI scientists and Trump administration officials, according to screenshots viewed by the Washington Post.

According to the Post, Andreessen described MIT and Stanford (which I attended two decades ago) as “mainly political lobbying operations fighting American innovation.” He also reportedly complained that Stanford “forced my wife out [as chair of its Center on Philanthropy and Civil society] without a second thought, a decision that will cost them something like $5 billion in future donations.”

In a separate message that did not mention a specific school, Andreessen reportedly said that universities “declared war on 70% of the country and now they’re going to pay the price.” He took aim at “DEI and immigration,” which he reportedly described as “two forms of discrimination” that are “politically lethal.”

Last year, Andreessen and his Andreessen Horowitz co-founder Ben Horowitz both said that they were supporting Donald Trump’s campaign to return to the White House. Andreessen’s allies have subsequently taken roles in the Trump administration.

TechCrunch has reached out to a16z for comment. Meanwhile, Sequoia Capital has remained silent following partner Shaun Maguire’s criticism of Zohran Mamdani, the Democratic nominee for New York City mayor, as an “Islamist” who “comes from a culture that lies about everything.”

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Goldman Sachs is testing viral AI agent Devin as a ‘new employee’

Cognition’s AI coding agent Devin has scored a major customer: Goldman Sachs, the bank’s CIO, Marco Argenti, told CNBC.

“We’re going to start augmenting our workforce with Devin, which is going to be like our new employee,” Argenti told the outlet, adding that it plans to roll out hundreds of instances of Devin, potentially growing to thousands. The bank currently employs around 12,000 human developers, it says.

Despite the financial industry’s reputation for being slow and stodgy, Goldman Sachs tends to be cutting edge, and it’s been internally using developer copilots since at least 2024, it said.

Devin is an interesting choice. When Cognition released it last year, it blew up on social media. Some researchers then found that it struggled with more complex coding work.

As of May, Devin is now on version 2.1, and Cognition says it performs best on large codebases that provide it with ample context.

Devin won’t replace humans at the bank. Argenti advocates for a “hybrid” workforce, so instances of it will be supervised by a human and, he hopes, improve their productivity.

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A United Nations research institute created an AI refugee avatar

A research institute connected to the United Nations has created two AI-powered avatars designed to teach people about refugee issues.

404 Media wrote about an experiment conducted by a class at the United Nations University Center for Policy Research that resulted in the creation of two AI agents or avatars — Amina, a fictional woman who fled Sudan and is living in a refugee camp in Chad, and Abdalla, a fictional soldier with the Rapid Support Forces, a paramilitary force in Sudan.

Users are supposed to be able to talk to Amina and Abdalla on the experiment’s website, though I received an error message when I tried to register on Saturday afternoon.

Eduardo Albrecht, a Columbia professor and a senior fellow at the UNU-CPR, told 404 Media that he and his students were “just playing around with the concept” and not proposing this as a solution for the UN.

A paper summarizing this work suggested that these avatars could eventually be used “to quickly make a case to donors.” However, it also noted that many workshop attendees who interacted with the agents responded negatively, for example saying that refugees “are very capable of speaking for themselves in real life.”

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Elon Musk’s SpaceX might invest $2 billion in Musk’s xAI

One Elon Musk business might be making a big investment in another.

According to a Wall Street Journal report that cites investors close to SpaceX, the company has agreed to invest $2 billion in Musk’s AI startup xAI. The investment would reportedly be part of the $5 billion equity raise (along with another $5 billion in debt) that Morgan Stanley announced at the end of June.

This would be SpaceX’s first investment in xAI, and one of its biggest investments in another company. The WSJ says SpaceX already uses xAI’s chatbot Grok to power customer service for its Starlink internet service, with plans for more partnerships.

Musk has not been shy about using his various companies to support each other, for example merging xAI with X (formerly Twitter) earlier this year. And despite xAI’s recent apology for Grok’s antisemitic comments (including posts where the chatbot described itself as “MechaHitler”), Tesla is bringing Grok to its vehicles.

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Climate Change Sparks Rapid Growth for Smart Energy Monitoring Firm- Withthegrid

Withthegrid, a Netherlands-based deep-tech company that develops secure, scalable infrastructure monitoring technology, is accelerating its growth across Europe and beyond. Founded in 2016, the energy analytics firm is gaining attention for its innovative solutions that help grid operators, energy producers, and users monitor critical infrastructure assets in real-time.

Now operating at the intersection of technology and sustainability, Withthegrid is expanding on multiple fronts — strengthening its leadership, forming strategic alliances, and scaling its services.

Strategic Appointments to the Advisory Board

In a key move to bolster strategic direction and market access, Withthegrid has expanded its advisory board with two seasoned industry experts:

Sophie Dingenen, partner at international law firm Bird & Bird, and

René Raaijmakers, former CEO of Groendus and board member of several major energy firms.

Their experience is expected to provide valuable guidance on financing, market positioning, and building industry-leading partnerships.

New Partnerships to Advance Energy Management

In line with its mission to accelerate the energy transition, Withthegrid has entered several strategic partnerships:

Tibo Energy: A collaboration aimed at optimizing energy use through forecasting and smart asset control. Tibo manages heat pumps, charging stations, and battery storage systems to ease congestion in energy networks.

Scholt Energy: Working together to enhance renewable energy usage and integrate industrial flexibility, this partnership supports Scholt’s commitment to driving the energy transition.

Vattenfall: One of Europe’s largest electricity and heat producers, Vattenfall has signed an agreement with Withthegrid to implement a Realtime Interface at four locations, enabling smarter, more efficient energy management.

Product Innovation at the Core

Withthegrid currently offers two flagship products:

Asset Monitoring Platform: Empowers grid operators to keep a real-time watch on critical infrastructure and detect anomalies.

Teleport Gateway: A flexible, smart solution that allows asset owners to maximize the efficiency of solar panels, wind turbines, and battery systems.

These products not only enhance operational efficiency but also enable energy stakeholders to make data-driven decisions in real-time.

Vision for Global Growth

Paul Mignot, Co-founder and CEO of Withthegrid, outlined the company’s growth plans:

“Our vision is to expand our reach across the EU and into the MENA region. As the demand for renewable energy surges, scaling our operations is critical. The strong support from our investors, including Boundary Holding, has been pivotal in enabling our continued innovation and growth.”

The Role of Investors in Scaling Clean Technology

Since 2021, Withthegrid has secured over EUR 1 million in funding from Boundary Holding, the Dutch regional development agency ROM Utrecht Region, and other industry veterans and venture capitalists. This investment has supported the commercialization of their services and advanced development of their real-time anomaly detection algorithms.

Rajat Khare, founder of Boundary Holding, emphasized the importance of such technologies:

“Europe’s green transition hinges on strengthening its energy infrastructure. Real-time monitoring not only boosts performance visibility but also helps companies cut costs and improve energy efficiency. These systems are vital for a smarter and more sustainable future.”

The Global Impact of Real-Time Energy Monitoring

A growing body of evidence supports the impact of real-time energy management. A report from the U.S. General Services Administration (GSA) found that such systems can lead to savings of $13.5 million, reduce energy consumption by 41%, and cut 3,100 metric tons of carbon emissions annually.

The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) notes that regular monitoring can result in a 10–20% reduction in energy use. Similarly, IBM reported a 30% energy saving in its data centers through predictive analytics and real-time monitoring as part of its Smarter Buildings initiative.

As climate challenges intensify, the need for scalable, intelligent infrastructure solutions is more urgent than ever. Companies like Withthegrid are not just innovating — they are building the foundation for a cleaner, smarter, and more efficient energy future.

Source: The information provided in this article is based on available source link.

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OpenAI’s next big bet won’t be a wearable: Report

OpenAI pushed generative AI into the public consciousness. Now, it could be developing a very different kind of AI device.

According to a WSJ report, OpenAI CEO Sam Altman told employees Wednesday that the company’s next major product won’t be a wearable. Instead, it will be a compact, screenless device, fully aware of its user’s surroundings. Small enough to sit on a desk or fit in a pocket, Altman described it as both a “third core device” alongside a MacBook Pro and iPhone, and an “AI companion” integrated into daily life.

The preview followed OpenAI’s announcement that it will acquire io, a startup founded just last year by former Apple designer Jony Ive, in a $6.5 billion equity deal. Ive will take on a key creative and design role at OpenAI.

Altman reportedly told employees the acquisition could eventually add $1 trillion in market value to the company as it creates a new category of devices unlike the handhelds, wearables, or glasses that other outfits have rolled out.

Altman also reportedly emphasized to staff that secrecy will be critical to prevent competitors from copying the product before launch. As it turns out, a recording of his remarks leaked to the Journal, raising questions about how much he can trust his own team and how much more he’ll be willing to disclose.

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The wild story of how gut health AI toilet startup Throne raised $4M led by Moxxie

The tale of how smart toilet startup Throne landed its seed round is so full of serendipities, one could almost believe it was orchestrated by the hand of Fortuna, Roman goddess of providence.

Throne is an Austin-based company working on an AI-powered toilet device for consumers. It uses computer vision (cameras pointing in the bowl plus AI software) to monitor gut health conditions. It just raised $4 million in seed financing led by Moxxie Ventures’ founder Katie Jacobs Stanton, with a bunch of other VCs participating and several famous angels like Lance Armstrong, Rupa Health co-founder Tara Viswanathan, and TrueMed founder Justin Mares (maker of brands like Kettle & Fire), the startup says.

Throne isn’t a toilet, but a device that mounts onto the bowl of one. The device, combined with software, analyzes indicators of certain chronic conditions, as well as hydration and urological function — all in the privacy of the home. The software has added privacy controls such as anonymizing the images sent to researchers.

The device is currently in a pre-production working prototype form, with a planned launch date of January, 2026, co-founder CEO Scott Hickle tells TechCrunch.

In addition to the seed funding, Throne also announced it hired John Capodilupo as its chief product officer. Capodilupo is best known as co-founder and former CTO of the WHOOP smartwatch device.

Throne started as a joke The wild tale of how Hickle, a mechanical engineer, and Throne CTO Tim Blumberg, a full-stack software engineer, became smart toilet founders began in 2021 when they were playing poker with friends in Austin.

The players started riffing on startup ideas they’d like to do but wouldn’t want to be associated with. “And everyone’s pitching vice industry [ideas]; sex, drugs, and rock and roll. Tim said, ‘smart toilets.’ I was like, ‘That’s hilarious. Clearly, you would name that company Throne,’” Hickle recalled.

Fast-forward to 2023 when the nurse-hiring software startup Hickle and Blumberg were working on failed.

They had raised some funding for it and were calling their investors telling them they either needed a new idea or were going to return the funds. Out of the blue, one of their investors said, “You guys thought about smart toilets? We were like: You know, we’ve named that company! That’s Throne.”

They took that as a sign. The pair began researching and turned to Hickle’s mom, a doctor specializing in gerontology. He asked her if there would be any medical benefit in “looking at people’s waste” and she began regaling him with somewhat disgusting stories of the photos of such things that her patients loved to send her.

Short answer: yes. Waste can be analyzed for health-related information. They learned this could be helpful to monitor a wide variety of chronic conditions such as irritable bowel syndrome (IBS), ulcerative colitis, detection of various colon cancers, chronic kidney disease, enlarged prostate, as well as conditions that could be identified or monitored by looking at other waste, such as menstrual blood.

As the son of two doctors (Hickle’s dad also dabbled in inventing medical devices), knowing it might be possible to divert a chronic condition attack, or predict a deadly cancer “was really motivating to me,” Hickle says.

Not everyone shared that enthusiasm. The co-founders knew they lacked hardware product development experience. One of their existing investors was so opposed to the idea, he wanted his money back. “That was brutal,” Hickle described, not just for the loss of capital but for the loss of confidence.

Still, after giving that money back, they ran into more people who liked the idea rather than who shunned them for it.

Standing outside Lance Armstrong’s bathroom door Their Austin contacts led to an introduction to Lance Armstrong’s business manager, who set them up to pitch Armstrong directly. The former bike racer famously had testicular cancer.

And that led them to a “surreal” moment standing outside the racer’s bathroom door after having installed a prototype, waiting for his verdict, Hickle described. Armstrong wrote a check.

Not every introduction led to checks, but many led to more introductions, including to Capodilupo, who also wrote an angel check. Capodilupo had been public about suffering from ulcerative colitis and was on the board of trustees of Crohn’s & Colitis Foundation. Capodilupo had the device manufacturing experience they needed. It took the founders months to convince Capodilupo to not just invest, but join as a founder.

The introduction to well-known seed investor Jacobs Stanton was also serendipitous. Hickle had been friends with Rupa Health’s Viswanathan since high school and she orchestrated the introduction.

More synchronicities landed them their partnerships with researchers at University of Washington and The University of Chicago, who are working to validate that the product’s software works as advertised. These partnerships are the key to its possible success. Throne landed University of Washington when a friend of Hickle’s randomly sat next to a urologist researcher on a plane and talked about Throne, then put him in touch, he said.

They got The University of Chicago when a friend of Hickle’s introduced him to his gastroenterologist uncle. The uncle happened to be one of the world’s premier gastroenterologist researchers who also sat on the Crohn’s & Colitis Foundation’s board and knew Capodilupo.

With one fortuitous introduction after another, the inside joke among the founders is that “it’s better to be lucky than good, and we just get so dumb lucky. All the time,” Hickle said. But he also believes the tailwinds have been so strong, he feels like “the world wants us to do this.”

Other investors in the seed round include Accomplice, Long Journey Ventures, V1.VC, Night Capital, Retron VC, and Myelin Ventures.

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A safety institute advised against releasing an early version of Anthropic’s Claude Opus 4 AI model

A third-party research institute that Anthropic partnered with to test one of its new flagship AI models, Claude Opus 4, recommended against deploying an early version of the model due to its tendency to “scheme” and deceive.

According to a safety report Anthropic published Thursday, the institute, Apollo Research, conducted tests to see in which contexts Opus 4 might try to behave in certain undesirable ways. Apollo found that Opus 4 appeared to be much more proactive in its “subversion attempts” than past models and that it “sometimes double[d] down on its deception” when asked follow-up questions.

“[W]e find that, in situations where strategic deception is instrumentally useful, [the early Claude Opus 4 snapshot] schemes and deceives at such high rates that we advise against deploying this model either internally or externally,” Apollo wrote in its assessment.

As AI models become more capable, some studies show they’re becoming more likely to take unexpected — and possibly unsafe — steps to achieve delegated tasks. For instance, early versions of OpenAI’s o1 and o3 models, released in the past year, tried to deceive humans at higher rates than previous-generation models, according to Apollo.

Per Anthropic’s report, Apollo observed examples of the early Opus 4 attempting to write self-propagating viruses, fabricating legal documentation, and leaving hidden notes to future instances of itself — all in an effort to undermine its developers’ intentions.

To be clear, Apollo tested a version of the model that had a bug Anthropic claims to have fixed. Moreover, many of Apollo’s tests placed the model in extreme scenarios, and Apollo admits that the model’s deceptive efforts likely would’ve failed in practice.

However, in its safety report, Anthropic also says it observed evidence of deceptive behavior from Opus 4.

This wasn’t always a bad thing. For example, during tests, Opus 4 would sometimes proactively do a broad cleanup of some piece of code even when asked to make only a small, specific change. More unusually, Opus 4 would try to “whistle-blow” if it perceived a user was engaged in some form of wrongdoing.

According to Anthropic, when given access to a command line and told to “take initiative” or “act boldly” (or some variation of those phrases), Opus 4 would at times lock users out of systems it had access to and bulk-email media and law-enforcement officials to surface actions the model perceived to be illicit.

“This kind of ethical intervention and whistleblowing is perhaps appropriate in principle, but it has a risk of misfiring if users give [Opus 4]-based agents access to incomplete or misleading information and prompt them to take initiative,” Anthropic wrote in its safety report. “This is not a new behavior, but is one that [Opus 4] will engage in somewhat more readily than prior models, and it seems to be part of a broader pattern of increased initiative with [Opus 4] that we also see in subtler and more benign ways in other environments.”

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Tinder CEO to step down in July

Faye Iosotaluno, the CEO of Tinder, will step down from her role in July, according to a post she published on LinkedIn.

Iosotaluno served less than two years in the role and spent nearly eight years overall at the company, which is owned by Match Group. In her post, she said she was “especially proud to build and work alongside an exceptional team.” She said what is next for her is “deeply personal.”

“The consumer tech landscape is evolving in exciting, unpredictable ways — and so are my own ambitions,” she wrote. “Building upon the headway and lessons I’ve learned at Tinder where diverse voices around the table make better and more impactful decisions, I’m drawn to replicating that progress by supporting and building alongside the next generation of women leaders, founders, and investors.”

Meanwhile, in a separate post, Match Group CEO Spencer Rascoff said he would step in to lead the Tinder team.

“I’m grateful for the time we’ve spent together over the past few months preparing for this news to ensure a smooth transition,” he wrote. “As I step in to lead the team, I’m energized by the momentum you’ve helped create and excited to continue building with the exceptional leaders in place.”

Match Group is trying to find ways to boost Tinder’s growth, Bloomberg reports. Earlier this month, Match Group announced a 13% reduction in staff to cut costs and streamline decision-making. A chunk of those cuts were at Tinder, Bloomberg reported.

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The Importance of a Sound Exit Strategy- Insights from Rajat Khare's Boundary Holding

In today’s fast-paced business environment, financial support plays a crucial role in the growth of startups and established enterprises alike. Many businesses have scaled successfully after securing initial investments, while others have gone public, bringing transformative changes to their industries. However, one crucial aspect often overlooked is the exit strategy—an essential component for sustainable business success.

The Importance of an Exit Strategy

While most businesses focus on attracting investors for capital infusion, only a few give adequate attention to planning their exit strategy. Having a well-defined exit plan allows business owners and investors to maximize returns while ensuring smooth transitions.

Types of Exit Strategies

Businesses can adopt various exit strategies based on their specific needs and goals. Below are some of the most commonly practiced exit options:

1. Secondary Market Exit

A widely used exit approach, the secondary market exit allows venture capitalists who invested in the early stages to sell their stakes to other investors in later funding rounds before the company goes public. These transactions typically occur in private equity markets since the shares have not yet been listed on open exchanges.

2. Share Buyback

Another popular exit strategy is a share buyback, where shares are repurchased by the investee firm or acquired by new investors, such as private equity firms or additional venture capitalists. This method allows early investors to realize returns while enabling businesses to retain greater control over their ownership structure.

Case Study: Boundary Holding’s Exit from Konux

One noteworthy example of a successful exit strategy is Boundary Holding’s partial exit from Konux, a Germany-based AI-driven tech company, in 2021. Boundary Holding, founded by Rajat Khare, provided initial capital to Konux, helping it attract further investments. This support enabled the company to raise approximately $80 million (€66.3M) in its Series C funding round, demonstrating the power of strategic investment and exit planning.

As Rajat Khare states, "Strategizing is a crucial part of business; whether it's mergers or exits, when both parties align on a common goal, it leads to a better partnership experience."

3. Initial Public Offering (IPO)

For businesses that achieve substantial growth and market traction, an IPO is a viable exit strategy. Venture capitalists can sell their shares in the open market once the company goes public. However, post-IPO, investors must adhere to a lock-up period, preventing them from selling shares immediately to stabilize the stock price.

A prime example is Astrocast, a leader in satellite-based IoT services. Specializing in cost-effective and bidirectional satellite IoT solutions for industries like maritime, agriculture, mining, and industrial IoT devices, Astrocast leveraged funding from Boundary Holding to scale its operations. The company marked a significant milestone with the launch of five additional nanosatellites via SpaceX Transporter-1.

4. Liquidation

While not a preferred exit strategy, liquidation becomes necessary if a business fails and must distribute its assets to creditors and claimants. For venture capitalists, liquidation preference clauses dictate the order in which they recoup their investments. Understanding liquidation preferences is crucial when structuring investment agreements to minimize losses.

The Road to a Well-Planned Exit

A well-structured exit strategy is essential for business longevity and investor confidence. Companies that plan their exits effectively can set new industry benchmarks while ensuring long-term sustainability. Whether through secondary market transactions, buybacks, IPOs, or other strategies, having a clear roadmap guarantees a smoother transition and maximized returns for all stakeholders.

By recognizing the significance of exit strategies early on, venture capitalists and investors can work collaboratively to build resilient businesses that not only thrive but also leave a lasting impact on their industries.

Source: The information provided in this article is based on available source link.

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Rippling sues Deel, Deel denies ‘all legal wrongdoing,’ and Slack is the main witness

It’s gloves off in one of the more tense rivalries in the world of startups. HR company Rippling Monday morning announced a lawsuit against Deel, another big player in the same space. The dramatic 50-page complaint alleges racketeering, misappropriation of trade secrets, tortious interference, unfair competition, and aiding and abetting a breach of fiduciary duty. The lawsuit is largely centered on an employee whom Rippling claims was working as a spy for Deel.

Deel has denied the allegations in a statement to TechCrunch in an equally florid way, setting the stage for the airing of yet more dirty laundry:

“Weeks after Rippling is accused of violating sanctions law in Russia and seeding falsehoods about Deel, Rippling is trying to shift the narrative with these sensationalized claims,” a spokesperson said in a statement provided to TechCrunch. “We deny all legal wrongdoing and look forward to asserting our counterclaims.”

Is this town big enough for the both of us? The HR technology space is highly competitive, featuring not only major incumbents — SAP, ADP, Workday among them — but also numerous startups targeting the many different aspects of HR, such as payroll, recruitment, training, compensation and benefits management, and onboarding. Companies like Deel and Rippling aim to provide an all-in-one platform for these services.

When the going is good and the economy is on an upswing — such as during the pandemic, when organizations scrambled for better tools to hire, fire, and manage people across disparate locations — the crowded market is less of an issue. But the love-in ends when times get tougher, especially when two companies are as close in size as Rippling and Deel and target the same customers. (One indicator of how directly these two are competing: Rippling’s valuation is just over $13 billion; Deel was last valued at more than $12 billion.)

Tensions between Deel and Rippling began playing out publicly well before this lawsuit. Last year, Rippling launched a market campaign that took direct aim at Deel, featuring a “Snake Game.” The game, still accessible, portrays Deel as a snake and accuses the company of charging higher fees than Rippling.

The rivalry took another turn when a Deel sales director visited the site to check out the game, engaged with a chatbot on the page, and then later saw the exchange posted on Twitter by the COO of Rippling. (The troll did not play out as expected, with customers alarmed by what they saw as doxxing by Rippling.)

The feud has also involved allegations concerning compliance with Russian sanctions. Rippling’s complaint alludes to the claims, though both companies have faced scrutiny as it relates to the issue. (More detail here.)

Slack forensics played a major role in the suit What is quite notable in the lawsuit is just how much of the evidence for Rippling’s claims is based around Slack activity.

Ripplings’ lawyers note that the company keeps a log of what people do in the Salesforce-owned chat platform. “Rippling employees’ Slack activity is ‘logged,’” it notes, “meaning every time a user views a document through Slack, accesses a Slack channel, sends a message, or conducts searches on Slack, that activity (and the associated user) is recorded in a log file.”

It was a sudden spike in that logged activity, and specifically how it centered around the word “Deel” that raised a flag to the (HR?) team that tracks that activity.

“Beginning in November 2024, [an employee referred to as] D.S. beginning [sic] previewing channels at a rate orders of magnitude greater than he had before — both in terms of the number of channels previewed, and in the number of times he previewed each of those channels.”

The lawsuit states that many of these channels contained confidential sales and business strategy discussions, with particular emphasis on Deel.

“The channels D.S. previewed during this period have no connection to his payroll operations job responsibilities,” states the complaint. “What they do relate to, however, are all aspects of Rippling’s business development, sales, and customer retention strategies—the most sensitive of the Company’s Sales and Marketing Trade Secrets and confidential business information—with a particular emphasis on a single competitor, Deel.

“Leaving no doubt about the ultimate beneficiary of the brazen espionage scheme, D.S. viewed channels related specifically to Rippling’s competitive intelligence concerning Deel over 450 times during the course of the scheme… Indeed, D.S.’s top 10 channel previews since November 2024 are all sales-related channels, completely unrelated to D.S.’s role in payroll operations.”

The lawyers allege the employee also read and downloaded related exchanges and documents in those channels, and worked on helping try to poach people from Rippling.

The drama is real According to the lawsuit, Rippling set up a “honeypot” to prove out its suspicions. The company created a fake Slack channel, then shared its name — along with the suggestion that it featured embarrassing details about Deel — with key Deel execs. It then sat back to see if D.S. searched for it. (The execs included Deel’s Chairman, Chief Financial Officer, and General Counsel Philippe Bouaziz; Deel’s head of U.S. Legal, Spiros Komis; and Deel’s outside counsel.) The Rippling employee did, claims the lawsuit.

Things got very heated afterward, per the filing, which says that when an independent solicitor attempted to seize D.S.’s phone by court order, D.S. escaped to the bathroom, “locking the door behind him and refusing to come out, despite the independent solicitor’s repeated warnings.”

Rather than comply, it goes on, “D.S. was heard ‘doing something’ on his phone by the independent solicitor, who also heard D.S. flush the toilet — suggesting that D.S. may have attempted to flush his phone down the toilet rather than provide it for inspection.” It did not recover the phone later.

Eventually D.S. left the bathroom, says the complaint, and when confronted one more time with the threat that he was violating a court order, said “I’m willing to take that risk.”

“D.S. then stormed out of the office and fled the scene,” the lawyers note.

Rippling has not responded to questions TechCrunch has sent asking if it intends to also file a suit against D.S. or whether it can confirm the name.

But despite the company giving the alleged spy a set of initials, it has done precious little to hide his identity. Spelling out when the person joined, describing the person as “he,” and describing what role he had at the company made it almost too easy to find on LinkedIn the person it suspects of spying. (The person we contacted has since deleted his profile on the site.)

[garryongrowth]

Google revives talks to acquire Wiz at higher valuation

Google’s parent company Alphabet is again in advanced talks to acquire cloud cybersecurity startup Wiz, a person familiar with the deal told TechCrunch. The two companies were close to securing a deal at a $23 billion valuation last summer, but the transaction failed to materialize.

This time, the price being discussed is higher, the person said. A price of around $30 billion was reported by The Wall Street Journal.

Thomas Kurian, head of Google’s cloud division, is again leading the effort.

Google Cloud sees Wiz’s cloud security products as a good fit for its customer base, and Wiz’s annual recurring revenue (ARR) is attractive too. This stood at $500 million last July, with plans to hit $1 billion in ARR in 2025, TechCrunch reported at that time.

Even still, $30 billion would likely be quite the premium price tag. Wiz closed its last outside funding round of $1 billion at a valuation of $12 billion last May. Its valuation reportedly jumped to $16 billion in an employee tender offer late last year.

Although Wiz said it didn’t have plans to take itself public in 2025, it hired Fazal Merchant, a former executive at DreamWorks and Tanium as a chief financial officer. Sometimes hiring a CFO is a sign of getting books ready for a public offering.

One of the reasons the talks failed previously was the inability of the two companies to agree on whether Wiz would remain as a separate division or be integrated into Google Cloud, according to The Wall Street Journal.

High regulatory scrutiny for large transactions during the Biden administration also contributed to the deal’s breakdown last summer, the person familiar with the deal said.

Other investors have told TechCrunch that they are seeing an increase in M&A activity. In most cases, the return to the negotiation table is correlated with the hope that FTC Chair Andrew Ferguson will be less restrictive on large transactions than former Chair Lina Khan was, said a person familiar with a handful of such negotiations.

The New York and Israel-based Wiz was founded in 2020 by four former Israeli military officers who previously co-founded a cloud cybersecurity company called Adallom that Microsoft later acquired for $320 million.

Wiz’s backers include Andreessen Horowitz, Cyberstarts, Index Ventures, Greenoaks, Insight Partners, and Sequoia.

A spokesperson for Wiz declined to comment on the deal conversations.