One token over the line

Top News

• ICOs are back! As domestic crypto companies revel in a more relaxed regulatory environment. Coinbase announced a new way for companies to sell new tokens to its user base. The product choice by the crypto giant evokes memories of the ICO boom that rolled over tech like a wave back in 2017. At the time, many startups sold tokens to fund development of the eventful product that those tokens would facilitate. Of course, the era was famous for impressive flameouts. Coinbase is reputationally conscious, however, so it’s doubtful we’ll see the same saga repeat.

• Neros is incredible: Neros — a startup based on El Segundo, California — is building drones for the United States and its military. Flush with a fresh $75 million investment led by Sequoia, Neros is working to reforge drone supply lines to avoid Chinese inputs, no small task given the prominence of China in global UAV production. Its products have secured domestic military contracts, which makes sense as one of the company’s co-founders had become “fixated with helping Ukraine” fend off the Russian army, according to the New York Times. The startup’s growth helps cement the rise of ‘Gundo’ as a hub for modern startup defense tech. Primes, beware.

• Gamma raises $68M: AI-imbued presentation maker Gamma has raised $68 million at a $2.1 billion valuation, after a16z led its latest funding round. Accel, Uncork, and other investors backed the startup that announced at the same time as its raise that it has crossed the $100 million annual recurring revenue (ARR) milestone. In times past, Gamma would be cruising for an IPO. In today’s market, it’s probably three years and a few hundred million dollars worth of ARR shy of listing, but its growth underscores how AI products and services are quickly scaling thanks to ample market demand.

TWiST 500

Today on the podcast, Jason and I discussed 1Password, Mercury, and Ledger as possible 2026 IPO candidates. The TWiST500 is proving a fertile ground for new listings.

Klook — a company that’s not part of our list — intends to beat those three to the public markets. Why isn’t travel-focused, Hong Kong-based Klook on the TWiST500? I think it slipped our grip due to its corporate location; we tend to focus our attention on non-Chinese companies, as they are often less siloed to a single market.

So much for that bias, Klook argues in its F-1 filing. Klook served “more than 10.7 million annual transacting users in 2024, spanning more than 200 geographic markets worldwide,” it said. And it’s growing quickly, with revenue expanding from $284.0 million in the first three quarters of 2024 to $407.4 million in the first nine months of 2025. Better yet, the company’s operating losses fell from $32.7 million through Q3 2024 to just $9.8 million during the first three quarters of 2025.

• Klook has retreated from operating cash flow positivity (2024) to regular cash burn (2025) it’s worth noting.

SoftBank holds 14,364,947 shares in Klook, while HSG owns an even greater 20,041,436 shares in the firm. Klook’s IPO will therefore recycle some capital for startup investors, but we’re not looking at a Figma-level event in this particular IPO.

There’s only so much time left in 2025 to get companies public, with the end-of-year holiday morass nearly upon us. I’ll take the Klook deal as a sweetener to close out the tech IPO cycle of the year. It was maybe half of what we needed. Here’s to an even more active 2026. — Alex

A message from Zite

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This Week in Startups

E2205: On a special edition of TWiST, Alex chats with three of our favorite TWiST 500 startup founders. First, Billy Thalheimer introduces us to REGENT’s part-aircraft/part-boat autonomous Seaglider vehicle, which they’re building for both consumer and defense purposes. Then Ayan Parekh of Convexia tells us how they turn other labs IP leftovers into new drugs and treatments. Finally, we’ve got Hunter Leath of Archil discussing their unique approach to cloud data architecture.

E2204: It’s another special VC Roundtable episode, in which Jason and Alex welcome esteemed guest Deedy Das of Menlo Partners and Jay Eum of GFT Ventures. Together they discuss Roelof Botha’s unexpected exit from Sequoia, why being a VC may no longer be the best way to get rich, the growing importance of the pro-sumer market for AI apps, some tasty ChatGPT smile curves, and much more.

E2203: Starcloud has sent its first chips into orbit… so we’re debating whether or not we’ll one day keep our datacenters up there… and also wondering whether or not wifi connections work in the vacuum of space. (See, we ask the IMPORTANT questions.) PLUS will OpenAI ever be able to earn back the trillions it’s dropping on power and GPUs? Can ChatGPT still help me identify this rash? AND why Jason thinks Netflix should consider picking up CNN along with the rest of Warner Bros. Discovery.

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• Gusto: Check out the online payroll and benefits experts with software built specifically for small business and startups. Try Gusto today and get three months FREE at Gusto.com/twist.

Founder U and Angel University in Japan!

Jason’s coming to Tokyo on Nov 14 to launch a partnership with JETRO — bringing Founder University and Angel University to Japan, and connecting Japanese founders and investors with the global ecosystem. This event kicks off a ten-week program that we're starting in January, all culminating in an Immersion Week and Demo Day in SF. Register here: https://luma.com/cm0x90mk

We’re Hiring a Program Manager!

LAUNCH is seeking a program manager to help organize and manage the Japanese versions of Founder University and Angel University. Candidates must be fluent in both English and Japanese, and should plan on splitting their time between Tokyo and our home base in Austin, Texas. If you’re interested in this exciting opportunity, reach out to [email protected]!

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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