Born This Runway

Top News

• Runway’s new video model impresses: TWiST500 stalwart Runway has a new text-to-video model called Gen4.5 and, per public leaderboards at least, it’s a scorcher. The well-funded company raised a massive $308 million Series D earlier this year, and has clearly put that money to good work. Runway’s latest model competes with offerings from Google and OpenAI, putting it up against the tip of the AI spear; to see it best its behemoth rivals in its chosen AI category is pretty impressive.

• India pushes security app you can’t delete: The Indian government has given handset manufacturers a 90 day window to install a new ‘security’ app, Reuters reports. Ostensibly designed to limit phone theft and the abuse of stolen phones, the app — Sanchar Saathi — concerns privacy advocates, who fear that it could be misused by the Indian government. Apple has refused similar demands before; we’re potentially heading for another privacy-government collision, just after it appeared that Europe was set to avoid breaking encryption in its own market.

• Microstrategy builds cash buffer: As the price of bitcoin has retreated in recent weeks, so too has the value of Microstrategy stock — the company calls itself just ‘Strategy’ today. Given their history of using convertible debt to purchase bitcoin, the fall in value of both has raised concerns about its ability to service its borrowings. So, the trailblazing bitcoin treasury company has raised a $1.4 billion cash capital pool to handle its debt costs sans the need to sell its digital assets. Shares of $MSTR sold off sharply this morning, but recovered most of their red ink by the close of regular trading.

TWiST 500

Thrive Capital is one of several venture capital firms that buy companies outright, with plans to infuse them with modern technology, make them more efficient, and generate significant returns. Firms like Khosla and General Catalyst are in on the game, too. To make room for the new strategy, Thrive set up Thrive Holdings earlier this year to “buy up and consolidate services providers like accounting firms,” the NYTimes reports.

Enter OpenAI, which is taking a stake in Thrive Holdings — Thrive Capital is a backer of the AI giant — adding its arsenal of artificial intelligence services to Thrive’s quiver. But this deal is more than yet another circular AI funding arrangement. Instead, OpenAI expects to learn.

In a release, the most valuable TWiST500 company said that it plans to help Thrive Holding’s portfolio with “accounting and IT services” work, because those categories of work are “high-volume, rules-driven, workflow-heavy processes where [its] platform can drive immediate benefits.” That sounds pretty obvious, so what makes the arrangement interesting? That OpenAI isn’t just buying itself more demand, but also insight:

With that in hand, OpenAI working with the subsidiary of one of its investors makes more sense, and it no longer appears to be back-patting symbiosis. OpenAI expects to learn lots by helping fit AI into companies that need it, information it can then filter back into its product teams to design even more enterprise-ready products.

This will, in turn, drive large incomes, at least in theory. It’s easy to be cynical about AI deals in late 2025. This time, however, I think OpenAI is being quite savvy. — Alex

A message from Enterpret

Enterpret turns feedback noise into Customer Intelligence, so your team knows exactly what to fix and build next. Head to Enterpret.com/twist to book a demo and see it in action.

This Week in Startups

E2215: Alex chats with Neubird CEO Gou Rao about the intricate complexity of IT Ops, and the vast amount of layers and components that have to be delivered very quickly to your phone in order to stream a simple video clip. Then Subject AI CEO Michael Vilardo stops by to tell us how the app uses gamification to keep kids learning and engaged. Finally, we’re flashing back to a remarkably prescient 2019 interview with then-Scale AI chief Alexandr Wang, who tells us why he thinks the AI Doomsday scenarios — AND the elaborate AGI promises — are both way overblown.

E2214: The team from Familify had released a well-reviewed storytelling app for kids and parents… but it just wasn’t growing! Then they noticed that Bible stories and faith-based content were particularly popular. So, they decided to release a brand-new app, Theo, specifically designed for these types of lessons and stories. And the new product overtook Storybook in just a few weeks! PLUS, we’re chatting with Collin from En Vérité about how AI can make due diligence much less painful for investors AND checking out our latest Gamma Pitch Deck competitor. Find out why Jason says Jake Triton from Pitch Prfct might just be closing in on Product Market Fit.

E2213: Google and Meta had their cases dismissed (or received a slap on the wrist)… Despite all the backlash and cynicism, AI companies continue making bank and releasing hot new products… What does it all mean? For Jason Calacanis, the signs are pointing to a “major M&A moment,” with huge opportunities for increased efficiency and consolidation among America’s favorite brands and largest companies?

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• Quo: Founders move fast. Their phone systems should too. Quo (formerly OpenPhone) gives you a clean, modern way to handle every customer call, text, and thread all in one place. Try it free at quo.com/TWiST.

• Squarespace: Turn your idea into a beautiful website! Go to http://www.squarespace.com/twist for a free trial. When you’re ready to launch, use offer code TWIST to save 10% off your first purchase of a website or domain.

• Miro: Help your teams get great done with Miro. Check out miro.com to find out how!

Founder University is headed to Tokyo!

Applications are now open for the 2026 cohort. Selected startups will take part in a global, three-part experience designed to accelerate growth and expand international reach:

• Tokyo Bootcamp: January 12–16

• Online Acceleration Program: January 19–March 6

• U.S. Travel Program: March 9–20

If you’re building something big and ready to go global, this is your moment. Apply now at launch.co/tokyo.

LAUNCH 35 Public Demo Day

Our 35th LAUNCH Accelerator cohort is graduating in just a few weeks and we’d love for YOU to attend their Public Demo Day!

• WHEN: December 8 at 12:30 pm PT

• WHERE: Zoom

• REGISTER: https://www.launch.co/live

Investor Networking Lunch in SF

Jason and LAUNCH are hosting an investor networking lunch, followed by pitches from our latest Accelerator batch. Join us for Dim Sum in San Francisco on Friday, December 5th. (Or forward this to your investor friends.)

• Date/Time: Friday, December 5th, 2025 at 12-3PM PT

• Format: Dim sum lunch, followed by founder pitches & investor networking

• Location: TBA (Chinatown area)

Spots are limited, please RSVP here. The LAUNCH team will email you confirmation once your registration is accepted. You must be an accredited investor or work for a VC Fund to join.

SF Live-Work Space Now Available

Need a flexible living and working environment in San Francisco? This thoughtfully designed loft-style residence at 787 Bryant St., the heart of the vibrant SOMA district and the city’s creative hub, is now available for rent or purchase. Check the listing for more details.

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