eToro's IPO is ALIVE!

Top News

• eToro’s IPO comes back from the dead: In a surprise move, eToro is taking on the task of re-opening the domestic IPO market. With a fresh SEC filing (an F-1/A if you were curious), the Israeli consumer trading service is taking aim at a market cap that could reach $4.5 billion on a fully-diluted basis. eToro is targeting $46 to $50 per share for its equity. The company included preliminary Q1 2025 data in its filing, indicating that it grew funded accounts by 14% on a year-over-year basis.

• Cursor snags $9B valuation: FT reports that Anysphere, the company behind Cursor, has closed a $900 million funding round led by Thrive Capital with other venture players chipping in cash to the transaction. The same article writes that Cursor’s revenues have reached the $200 million ARR milestone — lower than what some reports have indicated, but still an impressive haul given that the company has at least doubled so far this year.

• 11x CEO steps down: A few weeks back, TechCrunch reported that startup 11x was keeping logos of non-customers on its site too long, and was perhaps seeing more churn than the market anticipated. Today the company announced that its CEO Hasan Sukkar is leaving the role, heading instead for a non-executive chairman slot on the company’s board. On one hand, the company is spinning the move as merely Sukkar finding more strength in building early-stage companies than handling their growth stage. On the other, if you were trying to make a CEO exit as market-palatable as possible, waiting a month or two and then allowing that person to snag a different, non-operational role at the same time would be the best way to do it.

TWiST500

Five alarm TWiST500 Update: OpenAI is no longer working to entirely shed its non-profit arm!

After running into suits and complaint from the market concerning its effort to shift from a non-profit into a for-profit conceit, OpenAI has changed course. Now, the company explains, it will retain is non-profit-led structure, but retool is capped for-profit arm as a public-benefit corpoation, or PBC.

OpenAI writes that “PBCs have become the standard for-profit structure for other AGI labs like Anthropic and X.ai, as well as many purpose driven companies like Patagonia.” True enough, and as OpenAI has a pretty clear mission (AGI) and approach (safely), going the PBC route makes sense.

It might also do away with a whole lot of headache that the company was dealing with instead of, say, building more stuff. So, points there.

How might a non-profit controlled PBC be valued on the open market? Who knows! Microsoft doesn’t, Sam doesn’t, and neither do the boffins over at SoftBank. But what the new structure should do is allow OpenAI to keep going. With a simpler shareholding scheme to boot. The company writes that its new plans allow it to employ “a normal capital structure where everyone has stock.”

That should help with retention, I reckon.

How well — or not — OpenAI would fare its for-profit transition was a key question in front perhaps the most valuable TWiST500 company. Now we have a slightly clearer view of the road before it.

Tomorrow, even more new TWiST500 companies, but we could not not talk about the biggest news of the day. — Alex

A message from Pilot

Focus on your product, let Pilot handle your bookkeeping. Pilot provides the most reliable accounting, CFO, and tax services for startups and small businesses. Head to https://www.pilot.com/twist and get $1,200 off your first year.

This Week in Startups

E2121: On a Monday TWiST, Jason, Lon and Alex welcome Magical Toys chief Fateen Anam Raffid to talk about building next-generation AI toys and his company’s mega-growth ahead of the holiday season. PLUS the latest on Cursor’s explosive growth and massive $9B valuation, Uber’s latest autonomous vehicle partnerships, and Jason shares some anecdotes from F1 in Miami.

E2120: It’s a brand new This Week in Startups, featuring Beehiiv founder Tyler Denk’s thoughts on building in public, rapid product iteration, and the perils of innovating TOO FAST. Plus Jason, Lon, and Alex break down all the week’s biggest news, including a judge striking down Apple’s 27% link-out fee, and the controversy striking Reddit’s r/ChangeMyView community.

E2119: Jason, Alex, and Lon are joined for today’s full episode by crypto insider and “Hash Rate” host (and long-time friend of the pod) Mark Jeffrey. He’s here to walk us through Bittensor and TAO, which some are calling the third “great coin” after Bitcoin and Ethereum. Plus the latest from Meta’s first-ever LlamaCon for developers, Alexis Ohanian’s advice for cold email marketing, AND a chat with LayerNext CEO Buddhika Madduma about the secret to onboarding new customers.

TWiST Partner Offers

• Northwest Registered Agent: Starting your business should be simple. With Northwest Registered Agent, you can form your entire business identity in just 10 clicks and 10 minutes. From LLCs to trademarks, domains to custom websites, they’ve got you covered. Get more privacy, more options, and more done—visit https://www.northwestregisteredagent.com/twist today!

• Lemon.io: Hire pre-vetted remote developers, get 15% off your first 4 weeks of developer time at https://Lemon.io/twist

• Fidelity Private Shares℠: Manage your cap table and data room, get faster, more accurate 409A valuation and fully automate your next financing round. Visit ⁠https://fidelityprivateshares.com⁠! Mention our podcast and receive 20% off your first-year paid subscription.

Want to Work for This Week in Startups?

We’re looking to fill two in-person sales positions at our Austin, Texas HQ! First, a high-performing Sales Executive to help us seek out and promote clients, sponsorships, branded content, and more. Plus an experienced Sales Manager to lead, coach, and scale our sales executive team, while setting performance goals. Love the podcast and have B2B sales experience? We want to hear from you!

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.

Founder University

Applications are open for Founder University Cohort 11, a 12-week remote pre-accelerator program tailored towards navigating early-startup practices, building an MVP, and growing traction. Submit your application at Founder University— Cohort 10 will kick off Summer 2025!

LAUNCH Accelerator

Are you a pre-Series A founder with a product in the market? Applications are now open for LAUNCH Accelerator's 35th cohort—starting Summer 2025—where you'll perfect your pitch, grow your business, and connect with top Silicon Valley investors. Apply here and take your startup to the next level!

The TWiST500 newsletter is the new, updated, and improved TWiST Ticker.