## The Rise of Tiny Teams in AI-Powered Startups

AI-powered startups are proving that the **Tiny Team era** is here. Five founders and employees share the pros and cons of working alongside **AI agents**.

![Three young professionals, including two men and one woman, pose outdoors and on city streets.](https://i.insider.com/68d702f75dbc4fd10da9b460?width=700)

*Quentin Peccoux, Anada Lakra, and Shivam Sagar spoke with BI about what it's like to be part of a 'tiny team' startup in tech.*

### 'It's Like Having a Superpower'

Five people share what it's like to work at companies with more **AI** and less people. The integration of **AI agents** into daily operations is transforming how small teams function, offering unprecedented efficiency and capabilities.

### Insights from the Frontlines

Founders and employees highlight the advantages of leveraging **AI** to amplify their productivity. They discuss how **tiny teams** can achieve what traditionally required larger groups, thanks to **AI-powered tools**.

However, they also address the challenges, such as the need for continuous learning and adaptation to keep up with **AI advancements**. The balance between human creativity and **AI automation** is key to success in this new era.

AI-powered startups are proving the Tiny Team era is here. Five founders and employees share the pros and cons of working alongside AI agents.

How AI-Powered Startups Are Thriving with Tiny Teams: 5 Insiders Reveal the Superpower

![Image Credits: Michael Nagle / Bloomberg / Getty Images](https://s.yimg.com/ny/api/res/1.2/sQe_hVwP8iGGf2qPcbgABA--/YXBwaWQ9aGlnaGxhbmRlcjt3PTY0MDtoPTQyNztjZj13ZWJw/https://media.zenfs.com/en/techcrunch_finance_785/2e3ec46be0e5c601a08b2e9382b23528)

*Welcome back to **TechCrunch Mobility** — your central hub for news and insights on the future of transportation.*

The autonomous vehicle industry is years — maybe decades — from maturing. And so there’s still a Wild West quality to the sector, in spite of the steady stream of announcements that do show marked progress. Two such news items from this week illustrate my point of progress, possibility, and even a bit of peril (at least to the ups and downs a public market can provide).

## Gatik's Expanded Partnership with Loblaw

First up is **Gatik**, an AV and logistics startup that is applying its tech to middle-mile trucks. The startup, which I first wrote about in 2019, announced a multi-year and expanded commercial partnership with Canada’s largest retailer, **Loblaw**. Under the deal, Gatik will deploy 20 autonomous trucks by the end of 2025 to provide driverless delivery to Loblaw’s network of stores in the greater Toronto area. Co-founder and CEO **Gautam Narang** told me the company will add another 30 autonomous trucks to the fleet by the end of 2026.

The deal is notable, and not just because of the fleet size. As Narang explained to me, the trucks will be handling the full regional network for Loblaw. This means these third-generation AV trucks will operate autonomously to pick up products from two distribution centers and make deliveries to over 300 retail stores. "These are multiple brands within the Loblaw umbrella," he said.

In other words, this is not some fixed-route pilot program. It’s **commercial**, and it’s **complex**.

## Kodiak Robotics Goes Public

Next up is **Kodiak Robotics**, another startup I have reported on since its founding. The company, which is developing self-driving trucks for highway, industrial, and defense uses, began trading on Nasdaq this week under the tickers KDK and KDKRW.

The company, which is now called **Kodiak AI**, went public via a merger with special-purpose acquisition company **Ares Acquisition Corporation II**, an affiliate of Ares Management. The deal valued the startup at about **$2.5 billion**.

Kodiak raised **$275 million** in financing. More than $212.5 million came from certain institutional investors, including $145 million in PIPE funding and about $62.9 million in trust cash from Ares. It should be noted that the trust cash is smaller (it was $562 million), as some SPAC investors redeemed their shares.

I spoke to founder and CEO **Don Burnette** the day before Kodiak’s big debut about why he took the company public — let alone via a SPAC. It was a big moment for Burnette, whose family was on hand to watch him ring the bell and mark the milestone. The stock was trading at about $7.70 Friday, down about 10% from its market open.

Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation.

Self-Driving Trucks Take Off: Kodiak's Public Debut and Gatik's Major Retail Deal

## Kela Acquires AI Firm Pelanor in Multi-Million Dollar Deal

Defense startup **Kela** has completed its first acquisition with the purchase of **Pelanor**, an Israeli company that develops an **AI-based platform** to help organizations analyze cloud spending in real time and reduce costs through recommendations and automation. The acquisition is estimated at tens of millions of dollars.

Pelanor was founded in late 2022 by **Unit 8200 alumni** Matan Mates (CEO), Ido Kotler (CPO), and Yotam Tanay (CTO). Its system uses **artificial intelligence** to track the sources of changes in cloud expenses, automatically detect anomalies, and optimize resource allocation across customers, products, and projects. The company employs about 15 people.

![Kela founders](https://pic1.calcalist.co.il/picserver3/crop_images/2025/04/28/Hyx9oWnnJgg/Hyx9oWnnJgg_0_0_2000_1333_0_x-large.jpg)
*Kela founders. (Photo: Kobi Keunkas)*

Kela itself was founded in July 2024 and has raised about **$100 million** in under a year. It began with a $11 million Seed round led by **Sequoia**, followed by a $28 million Series A led by **Lux Capital** with participation from **In-Q-Tel** and other investors. A few months later, Kela expanded its funding with an additional $60 million from existing backers. The company currently employs 25 people.

Kela's founders include **Hamutal Meridor**, a graduate of Unit 8200, who previously managed **Palantir’s** Israeli operations, a company that develops combat management systems and has garnered significant interest since its IPO on Wall Street. In recent years, she was a partner at the **Vintage** investment fund.

Kela’s CEO is **Alon Dror**, a graduate of the **Talpiot program** who served for about a decade in the defense sector, first as tank commander and later in roles at the Directorate of Defence Research & Development where he was awarded the **Israel Defense Prize**.

Other co-founders include **Jason Manne**, an aeronautical engineer with a decade of experience in weapons development in the Israeli Air Force and the Intelligence Corps’ elite Technology Unit (Unit 81), and **Omer Bar-Ilan**, an experienced engineer and serial entrepreneur who previously led the algorithms team at **Rafael**.

Kela is building what it describes as an **“operating system for militaries”** - an open, modular platform designed to make military systems more dynamic and adaptable, in the same way civilian operating systems allow diverse applications to be integrated. The platform enables the rapid and secure connection of advanced commercial technologies, ranging from sensors and command-and-control systems to cyber tools and AI solutions, into existing military infrastructure. By collecting data from sources such as cameras, drones, and radars, processing it in real time, and presenting commanders with a unified situational picture, Kela aims to bridge the gap between fast-moving civilian innovation and the slower, more rigid processes of defense systems.

“Our strategy is to grow quickly, not just to meet demand, but to accelerate development and deliver capabilities at the pace that today’s reality requires,” said **Hamutal Meridor**, Kela’s president and co-founder. “The addition of the Pelanor team, among the brightest in Israel, is part of that effort: bringing in top talent who share our mission and vision to become the next great defense company for Israel and the West.”

**Matan Mates**, Pelanor’s CEO and co-founder, added: “We founded Pelanor out of a passion to solve hard and meaningful problems. When Kela approached us, it felt natural, we found a home where we could pursue our mission on a larger scale, alongside people who live and breathe a deep sense of purpose.”

The deal marks Kela’s first acquisition as it expands its next-generation military platform. 

Kela's First Acquisition: How This Defense Startup is Revolutionizing Military Tech with AI

## German AI Startup in Funding Talks at $4 Billion Valuation

**Black Forest Labs**, a prominent German artificial intelligence startup, is currently engaged in discussions to secure a significant funding round that could value the company at an impressive **$4 billion**. This development highlights the growing investor confidence in the AI sector, particularly in Europe.

### Exploring a Raise Between $200 Million and $300 Million

The startup is exploring raising between **$200 million and $300 million** in this round. This substantial capital injection is expected to fuel further innovation and expansion, positioning Black Forest Labs as a key player in the competitive AI landscape.

### Implications for the AI Industry

This funding round underscores the robust interest in AI technologies and the potential for startups to achieve unicorn status rapidly. It also reflects broader trends in venture capital flowing into cutting-edge tech sectors, driving advancements and market growth.

Black Forest Labs explores raising between $200mn and $300mn

German AI Unicorn Black Forest Labs Eyes $4 Billion Valuation in Major Funding Round

## A Major Shift in the Data Management Landscape

**Fivetran**, a prominent startup that helps companies manage and prepare data for analytics and artificial intelligence, is reportedly in advanced discussions to acquire **dbt Labs**, a key player in data management. This potential deal, valued in the **multibillion-dollar range**, could reshape the competitive dynamics in the data industry.

### What This Means for the Industry

The acquisition would bring together two leading data companies that have been facing increasing competition from larger tech firms and other startups. **Fivetran** specializes in data integration and movement, while **dbt Labs** focuses on data transformation and modeling. Combining their strengths could create a more comprehensive data platform, offering end-to-end solutions for businesses leveraging data for AI and analytics.

### The Broader Context

This move highlights the ongoing consolidation in the data and AI sectors, as companies seek to build integrated offerings to meet growing demand. The deal, if finalized, is expected to have significant implications for customers and competitors alike, potentially accelerating innovation and setting new standards in data management practices.

Fivetran, a startup used by companies to manage and prepare data for analytics and artificial intelligence, is in talks to buy data management companydbt Labs, according to people with direct knowledge of the deal. The deal would combine two data companies that are facing competition from ...

Fivetran's Game-Changing Move: In Talks to Acquire Dbt Labs in a Multibillion-Dollar Deal

## AI Startup Friend's Massive Subway Ad Campaign

If you've been on the New York City subway recently, you've probably seen stark white ads promoting a wearable AI device called **Friend**.

![New York City Subway Platform](https://s.yimg.com/ny/api/res/1.2/ptsd8Kaj85zKMQyaJYAKew--/YXBwaWQ9aGlnaGxhbmRlcjt3PTY0MDtoPTM5NTtjZj13ZWJw/https://media.zenfs.com/en/techcrunch_finance_785/8975947000d4fd0b3076f101910c1928)
*New York City Subway Platform | Image Credits: Joe Josephs / Getty Images*

**CEO Avi Schiffman** told Adweek that the company spent **more than $1 million** on a campaign with over 11,000 cards on subway cars, 1,000 platform posters, and 130 urban panels. Some stations, like West 4th Street, are completely dominated by Friend ads.

### The World's First Major AI Campaign

Schiffman described this as "the world's first major AI campaign," noting that while there have been other AI ads of questionable effectiveness, this print campaign is on a massive scale. He called it "a huge gamble" and admitted, "I don't have much money left."

### Controversy and Criticism

Friend's $129 device has faced backlash, with Wired writers criticizing its **constant surveillance** and publishing an article titled "I Hate My Friend." Additionally, some Friend ads have been **vandalized** with messages calling it "surveillance capitalism" and urging people to "get real friends."

### Strategic Advertising in a Hostile Environment

Schiffman is aware that "people in New York hate AI ... probably more than anywhere else in the country." He deliberately designed the ads with lots of white space to encourage social commentary on the topic.

If you’ve been on the New York subway recently, you’ve probably seen stark white ads promoting a wearable AI device called Friend.

AI Startup Friend's $1M+ Subway Ad Gamble: Controversy and Vandalism in NYC

## AI Startup Friend's Massive Subway Ad Campaign

If you've ridden the New York City subway lately, you've likely encountered the stark white advertisements for **Friend**, a wearable AI device. These ads have become ubiquitous, sparking curiosity and controversy alike.

### The $1 Million Bet on Subway Advertising

CEO Avi Schiffman revealed to Adweek that the company invested **more than $1 million** in this extensive campaign. This included over **11,000 ads on subway cars**, **1,000 platform posters**, and **130 urban panels**. Some stations, like West 4th Street, are completely saturated with Friend promotions, making it impossible to miss.

Schiffman boldly claimed this as "the world's first major AI campaign," acknowledging it as "a huge gamble." He admitted, "I don't have much money left," highlighting the high-stakes nature of this marketing move. While other AI ads have been criticized for their effectiveness, this print campaign stands out for its sheer scale.

### Controversy and Public Reaction

The $129 Friend device has faced significant backlash. Wired published a scathing review titled "I Hate My Friend," criticizing its **constant surveillance** features. This sentiment has spilled over into the real world, with some subway ads being vandalized. Messages like "surveillance capitalism" and "get real friends" have been scrawled across them, reflecting public distrust.

Schiffman is no stranger to this animosity. He noted that "people in New York hate AI … probably more than anywhere else in the country." In response, he intentionally designed the ads with ample white space to encourage social commentary, turning potential negativity into engagement.

![New York City Subway Platform](https://techcrunch.com/wp-content/uploads/2018/05/gettyimages-185054053.jpg?w=1000)
*Image Credits: Joe Josephs / Getty Images*

Why This AI Startup Blew Over $1 Million on NYC Subway Ads in a Bold Gamble

## The Reality of Startup Failure

Over two-thirds of startup founders have a **fear of failure**, according to the Founder Resilience Research Report, 2024. Building a startup has always been risky, with the five-year survival rate of small businesses in the U.S. hovering around just over 50% since 1994. By 2018, this rate was 57.3%, per the Bureau of Labor Statistics.

![Startup failure statistics](https://image.cnbcfm.com/api/v1/image/108203393-1758731669825-gettyimages-1725679453-3z6a69504.jpeg?v=1758810058&w=1858&h=1045&vtcrop=y)

*Over two-thirds of startup founders have a fear of failure, per the Founder Resilience Research Report, 2024.*

## Personal Stories of Resilience

Serial entrepreneur **Ismael Dainehine** has founded multiple businesses—two that failed, followed by three successful ones, including his latest venture, EverGive, a non-profit that invests in Bitcoin to compound donations. He described his early failures as painful, driven by self-imposed pressure due to financial constraints. Dainehine learned from these experiences, leading to millions in revenue from subsequent ventures, though he noted that even success can feel "soulless and hollow" without a deeper purpose.

Entrepreneurship is often idealized, but it's also tied to **hustle culture**, with examples like Silicon Valley's seven-day work weeks and China's infamous 996 culture (working 9 a.m. to 9 p.m., six days a week).

## Emotional Toll and Identity Loss

### 'I Lost a Lot of My Identity'

Moving on from a failed business involves admitting mistakes and disappointing others. **Klaas Ardinois**, founder of CommVision, which shut down after a year, highlighted the emotional challenge of laying off employees and facing investors. He cited market mismatch and misleading VC advice as causes.

**Ainars Klavins**, founder of augmented reality agency Overly, experienced near-bankruptcy twice before achieving a 1.5 million euro turnover in 2022, but quit due to burnout. After investing 500,000 euros in another startup that struggled, he transitioned to a corporate role, facing an identity crisis.

> "The biggest risk isn’t failure, the biggest risk is success without clarity."
> — Ismael Dainehine, Co-founder of EverGive

Klavins shared, "When you exit through an unsuccessful business, you really start to question: what are you good at? I have sacrificed so much to make this successful that I have lost a lot of my identity... It’s very scary to lose your identity."

## Founders as Employees: A Hidden Advantage

Founders returning to corporate life may face stigma, with a 2024 Rutgers Business School study showing an "entrepreneurship penalty" where recruiters are less likely to hire former business owners. However, **Alain Rapallo**, a PR specialist who started his own agency before returning to employment, argued that founders make excellent employees due to their broad skill set from handling multiple roles.

Klavins agreed, noting that his entrepreneurial experience helped him secure his current job and taught humility by eliminating ego.

## Redefining Success for Resilience

Dainehine emphasized the importance of redefining success and failure. He advised founders to commit to a mission with deep purpose to build resilience. "Once I focused on a mission I actually believed in, the same setbacks became survivable," he said, suggesting that a strong mission can help reframe failures as learning opportunities.

"When you exit through an unsuccessful business, you really start to question: what are you good at?" one founder told CNBC Make It. 

How AI-Powered Startups Are Thriving with Tiny Teams: 5 Insiders Reveal the Superpower

Summary:

The Rise of Tiny Teams in AI-Powered Startups

'It's Like Having a Superpower'

Insights from the Frontlines

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