## The New Startup Reality: AI or Get Left Behind

Last month, I witnessed a startup founder spend three weeks hunting for a senior developer to build a simple feature. Meanwhile, our content manager shipped it in just two days using **AI tools**. While he was bogged down in job boards and interviews, we were already testing user feedback and iterating.

This scenario repeats daily across the startup world. Founders assume they need specialized technical talent for every task, burning precious time and money, while **AI-powered generalists** move at lightning speed. The data confirms this shift: **80% of developers report increased productivity with AI tools**, and **90% of Fortune 500 companies are developing AI agents and automation**.

As co-founder of tech company HOLYWATER, I saw this coming early. Today, our 200-person team includes only **10% coders**, yet our platforms reach **55 million users worldwide**. My Drama is the top vertical streaming app in Europe and the U.S., while My Passion is the world's second-largest e-book platform with over 1,000 titles.

Our team of strong generalists fuels **3.5 times annual growth**. Here’s how you can build one too.

## Hire for Curiosity, Not Credentials

At least **1 in 3 entrepreneurs expect to be solo founders within five years**, enabled by AI tools that let individuals do work once requiring entire teams. At HOLYWATER, we’ve scaled this beyond solo ventures, treating the whole company like a startup lab. Writers, editors, designers, marketers—every employee can pitch product ideas. That’s the essence of generalists: solving problems fast alone or knowing who to ask.

Our content operations manager uses AI for brainstorming and training models to mimic writing styles. Our brand designer supplements creativity with AI-generated assets via focused prompts. Our full-stack developer uses pair programming with tools like Cursor. This approach lets us launch products faster, test more, learn from data, and grow.

## Build an AI-First Production Stack

AI won’t replace specialists who know how to work with it; instead, innovative tools **amplify your team’s productivity**. Studies show AI tools like GitHub Copilot enable **55% faster coding**, and ChatGPT boosts writing speed by about **40%**. Over half of marketers use AI to create and optimize content, delivering campaigns in days instead of weeks. McKinsey estimates **Generative AI could automate 60-70% of routine tasks**, making an AI-first stack essential for staying ahead.

At HOLYWATER, we don’t rely on single solutions. My Drama’s post-production stack includes specialized tools: Kling AI for content automation, Runway for video generation, ElevenLabs for AI voices, Flux for visual assets, LoRA for adapting storytelling models, and custom GPT agents for personalized help. We’ve also created My Muse, the first platform with AI-crafted high-quality series, redefining streaming entertainment.

But it’s not just production; we use AI cross-functionally. Marketers generate creatives with Stable Diffusion and Midjourney, and adapt content with tools like LAMA and Concepter, producing over **200,000 creative concepts monthly in 12-15 languages**.

Find tools that accelerate your startup’s needs: Cursor for AI-assisted coding, Make for workflow automation, Lovable for rapid prototyping. This lets you deliver faster than competitors.

## Encourage Creativity in Your Team

AI tools evolve every month, not every year. OpenAI releases updates quarterly, while rivals like Anthropic and Google ship weekly. Companies that don’t adapt quickly fall behind permanently. Focusing on one tool risks missing better options. The fix: foster **continuous learning and trend watching**.

I had no social media until recently, valuing my time too much. Now I’m everywhere our users are to spot trends. Every morning and evening, I spend 20 minutes scrolling social media, noting competitors’ TV series and ad creatives. The team does the same, quickly sharing insights in chats. Trends fade fast, so speed and alignment are key.

Creativity isn’t innate; it’s cultivable. Following trends and joining professional communities helps. In our startup, we hold constant brainstorming where ideas flow without criticism. Even my ideas can be challenged—truly brilliant things emerge from diverse opinions.

## What You Can Do Today to Build a Team of Tomorrow

Tomorrow’s unicorns will be built by **creative generalists leveraging AI**. To keep up, shift your strategy now.

Stop chasing expensive developers—seek curious minds with strong problem-solving skills. Ask about their favorite podcasts, lectures, books, and how they tackle challenges—it reveals a lot. Don’t wait for the perfect product. Create now, launch ASAP, and gather user feedback.

Tomorrow's winners won't outspend — they'll out-learn. Here's how to build an AI-first team that sets you up for exponential growth.

AI-Powered Teams: The Secret Sauce to 3.5x Startup Growth

While Roy Lee, the founder of Cluely, argues that startups should be **thinking harder about social media virality**, he also admits that **brand awareness alone won't lead to sustained growth**.

"I can't say if it's a mistake, but maybe we launched too early," Lee said onstage at TechCrunch Disrupt 2025 last week. "The whole idea [was] let's launch something that barely works, and if we can get enough initial users, they will find out the use cases for us."

Cluely burst onto the tech scene in April with **rage-bait marketing** for a product it claimed would help users "cheat on everything." Lee first made headlines when he was **suspended from Columbia University** for building a tool used for cheating on coding job interviews. He channeled that notoriety into Cluely, a startup that claimed to help users "cheat on everything" by delivering undetectable information during online conversations.

In late June, Cluely introduced its **enterprise product**, which claimed to serve multiple use cases, including helping with sales calls, customer support, and remote tutoring.

But earlier this week, the startup shifted and narrowed its scope when it introduced a new website that calls its product an **AI assistant for meetings**. The company's plan now is to "become the best AI note taker, starting with the consumer," Lee said onstage. As an AI notetaker, Cluely is clearly entering a crowded market, but Roy touted functionality such as "sending follow-up emails."

But he deflected questions on how well sales and retention were going, except to say: "I'll say we're doing better than I expected, but it's not the fastest growing company of all time," Lee said.

The startup's ability to grab attention helped it secure a **$15 million Series A** from Andreessen Horowitz in June. That month, a16z partner Bryan Kim said on the firm's podcast that he backed Cluely because Lee had figured out how to **convert the attention into paying customers**.

When the company introduced its product this summer, Lee boasted that the startup's ARR skyrocketed from $3 million to **$7 million within just one week**. "Every single person who has a meeting or an interview is testing this out," Lee told TechCrunch then.

But four months later, Lee is no longer eager to flaunt his company's financial metrics. "What I've learned is you should never share revenue numbers."

Lee claimed that there's no upside to revealing his company's performance: "If you're doing well, nobody is going to talk about how well you're doing, but if you're doing poorly, then everybody will only talk about how poorly you're doing."

However, dozens of founders at fast-growing AI startups have no qualms about publicly revealing their ARR numbers, making the sharing of explosive growth a standard practice amid the AI boom.

Cluely's experience thus far suggests that when it comes to software, **social media attention only goes so far** if the company doesn't have a **strong product to keep customers** once it intrigues them.

Lee declined to share Cluely's financial metrics just four months after boasting how quickly the startup is growing.

Cluely's Founder Reveals: Viral Hype Isn't Enough for Startup Success

## A Transformative Experience

At this Connecticut business, clients experience a **palpable change** from the moment they enter to when they leave. The focus is on making **wellness more accessible** through premium spa services.

## Rapid Expansion Under New Leadership

**Hand & Stone Massage and Facial Spa** is expanding its Connecticut footprint with new locations in Stamford, Cheshire, and Berlin, while also growing nationwide. This growth is supported by the recent appointment of **Matthew Stanton** as Chief Development Officer.

![Hand & Stone Massage and Facial Spa interior](https://i0.wp.com/www.courant.com/wp-content/uploads/2025/11/THC-l-handstone-1125-02.jpg?fit=620%2C9999px&ssl=1)

With a **successful franchise model** and 600 locations nationwide, Hand & Stone has created an ecosystem where "franchisees don't just survive, they thrive," according to Stanton.

## Proven Franchise Success

Rob Tobias, who owns two Hand & Stone franchises in Orange and Norwalk, confirms the brand's success. "When we converted to Hand and Stone it was the best thing we ever did," he said, noting that business has thrived under the new brand.

## Personalized, Affordable Wellness

The company emphasizes **personalized care**, **affordability**, and deep relaxation. Services focus on analyzing customers' skin to achieve their desired look, without providing medical aesthetics like fillers.

"We do more aesthetics than any other places like it in the country," said Tobias. "We make a real difference in their skin."

## Membership-Based Model

The business operates on a **membership-based model** where clients typically visit at least once monthly. Services include:

- 60-minute skincare appointments: **$89.95**
- 60-minute massages: **$89.95**

## Visible Results and Client Transformation

Tobias observes noticeable changes in clients' walk, voice, and mood after treatments. "It's palpable and you can feel it," he said. "We want to make this the best hour of our clients' month."

## Market Demographics and Gift Opportunities

Approximately 60% of clients are women, many of whom "don't really take care of themselves" because they're "taking care of others." The welcoming, comfortable environment emphasizes hospitality, and **gift certificates** are particularly popular during holidays.

## Leadership Expertise

Stanton brings over **15 years of executive franchise leadership experience**, having previously served as chief development officer at Purpose Brands (parent company to Anytime Fitness, Orangetheory Fitness, and others). His background includes strengthening development infrastructure and expanding national footprints.

![Hand & Stone Massage and Facial Spa treatment room](https://i0.wp.com/www.courant.com/wp-content/uploads/2025/11/THC-l-handstone-1125-01.jpg?fit=620%2C9999px&ssl=1)

## Unique Market Position

Stanton was drawn to Hand & Stone's **unique position in the marketplace**, combining **premium wellness experiences** with a **franchise model designed for long-term success**.

John Teza, President and CEO of Hand & Stone, stated: "Matthew's experience scaling some of the nation's top fitness and wellness franchises makes him an invaluable addition to our leadership team. His vision aligns perfectly with our mission to empower entrepreneurship within our brand and enhance the well-being of the communities we serve."

Stanton says he was drawn to the company’s unique position in the marketplace, combining premium wellness experiences with a franchise model

Unlock Wellness and Wealth: How This Spa Franchise Is Revolutionizing Self-Care and Entrepreneurship

## From Corporate Leader to AI Entrepreneur

**Tim DeSoto** made a dramatic career shift last year, leaving his position as a **senior director at Walmart** to become the sole employee at his own **AI-native startup**. At 49, with no formal tech background, he believes this leap into AI entrepreneurship is actually the **least risky career move** he could make today.

![Tim DeSoto was a senior director at Walmart. Now he's launching an AI-native startup.](https://i.insider.com/690a22870be9845f2dc5ac7c?width=700)

## The Corporate Foundation That Built an Entrepreneur

DeSoto's career path through major corporations like **The Wall Street Journal**, **Dow Jones**, **Barnes and Noble**, and ultimately **Walmart** wasn't just about climbing the corporate ladder. He intentionally sought roles that would pay him to learn the skills needed to eventually build and grow his own business. His seven years at Walmart, focused on **business strategy** and membership experience, proved particularly valuable in preparing him for entrepreneurship.

## The AI Awakening in San Francisco

Living in **San Francisco**, DeSoto immersed himself in the emerging AI scene as generative AI began transforming the tech landscape. He spent evenings at AI meetups, observing how others were building with this new technology. The timing felt urgent—he watched regular **mass layoffs** at major companies and realized that starting his AI company represented a **once-in-a-lifetime opportunity**.

## Becoming a Builder Without Coding Experience

One of DeSoto's few regrets was never studying computer science, but **generative AI** changed everything. Using **Cursor** and other AI tools, he taught himself to build despite having no engineering background. His process involved using multiple AI models simultaneously, testing code, and "interrogating" the outputs until he reached about 95% confidence in his product.

## Building an Intelligent Shopping Companion

After considering several ideas, DeSoto settled on developing an **intelligent shopping companion** that helps consumers save money through a browser extension. The tool shows shoppers available deals both on their current site and across all other platforms offering the same product. Additional features include a **smart shopping list** and other tools designed to help people shop smarter and save money. The company plans to launch during the upcoming **holiday season** and raise a formal funding round afterward.

## Why AI Entrepreneurship Feels Secure

In today's volatile job market, DeSoto argues that becoming an **AI expert** and building something meaningful represents the safest career path. Even if his startup doesn't succeed, the accelerated learning and AI expertise he's gaining would make him highly valuable to any large company should he return to corporate life. His message to others considering similar paths: if you can pick yourself up and march resiliently forward through the inevitable lows of startup life, you'll be fine pursuing the path you've always wanted.

Tim DeSoto was a senior director at Walmart before building an AI-native startup. He sees AI entrepreneurship as the least risky career move.

From Walmart Director to AI Startup Founder: Why He Calls It the 'Least Risky' Career Move

Ambitious plans to revitalize an underserved corridor in South St. Petersburg’s **MLK Business District** are already moving forward with an expanded mission and new partners.

Local developer **John Barkett** and his wife, **Julie**, have rebranded a community garden, secured multiple tenants and will now open a **Tech & Innovation Hub** sponsored by **ARK Invest**. They also formed a **Community Focus Group** of South St. Pete residents to help guide the extensive adaptive reuse project, unveiled in late August.

The **Looking Glass Initiative** encompasses several long-neglected properties along the 900 and 1000 blocks of Dr. Martin Luther King Jr. Street South. The husband-and-wife duo, who are self-funding initial redevelopment work, said discussions with two local hospitals to bring healthcare and education into the neighborhood are “well underway.”

“This needs to be a permanent solution,” Julie Barkett told the Catalyst. “And in order for it to be so, it needs to be designed by the community, for the community. We’re just a conduit.”

The non-displacing initiative’s overarching goal is to create a thriving, inclusive and self-sustaining destination that reflects the neighborhood’s identity, needs and culture. Barkett, co-founder of The Looking Glass, will also serve as CEO of the new **Healthy Roots Garden & Community Center**.

![The Looking Glass Initiative will encompass the 900 and 1000 blocks (both sides) of Dr. Martin Luther King Jr. Street South. (Rendering)](https://media.stpetecatalyst.com/uploads/2025/11/Screenshot-1274-e1762266772465.png)

She rebranded the previously announced Wonderland Garden concept to embody a holistic approach to addressing the root causes of community health and economic disparities. Healthy Roots Garden & Community Center will now feature:

- A **“Food Farmacy”** and grocery stand offering fresh, affordable produce and food.
- A **Home Garden Network**, supported by a master gardener and peer mentors, that equips families to grow food at home.
- A **Tech & Innovation Hub** to bolster **STEM** (science, technology, engineering and math) exposure, digital literacy and workforce readiness resources.
- A community center with a teaching kitchen, movement space, clinical exam rooms and health education.

“When we started this, we kind of heard of this as a grocery store problem in South St. Pete and its food desert,” Barkett explained. “But as I started looking into that, I realized it was a lot deeper than just a grocery store problem.”

She said their plan seemed wrong a decade after the couple first eyed the dilapidated strip mall. Barkett also noted that “there’s a lot of really smart people in this city” who have struggled to address the area’s persistent health and nutrition inequities.

“It’s broken systems,” she added. “I realized it’s time for a change. It’s time to change the broken systems.”

The Barketts believe that pairing economic revitalization with food access, preventive health and resident-informed development will create a comprehensive wellness and wealth-generating ecosystem. “Money is circulating within the community, resources are circulating within the community and food comes from the community itself,” Julie said.

![The Looking Glass Initiative will reinvent several neglected buildings and properties. Image provided.](https://media.stpetecatalyst.com/uploads/2025/08/Screenshot-1157-e1756393980831-1024x580.png)

Barkett noted that technology and innovation hubs typically exist in more affluent areas, and ARK Invest is one of the most prominent names in those industries. “Why shouldn’t we also see it here?” she said.

The **Community Focus Group** is “probably the most important thing that we’re doing,” Barkett said. Participants will use their lived experiences to set program priorities, identify barriers and help establish what constitutes success.

“If we’re looking at systems change, paradigms change, it’s not going to come from an outside source,” Barkett elaborated. “I can assume I know what the community needs, but that’s probably not going to be the right thing.

“Will it help? Will it serve today’s needs? Most likely, yes. But is it going to serve long-term change? Probably not.”

The redevelopment’s commercial spaces are for local and **Black-owned small businesses**, including Sober Roots Hair Products & Salon. Additional confirmed tenants include CodeWiz, which offers STEM education for children, and a neighborhood bookstore.

A planned community coffee shop will serve as a welcoming “third place” for conversation, connection and creativity. Several spaces remain available to lease.

“John and I understand that we’ve invested in a historically Black neighborhood, and the responsibility that comes with that,” Julie said of their desire to promote African American entrepreneurship and generational wealth.

![Several retail bays remain available to lease, and the Barketts will prioritize Black-owned businesses. (Rendering)](https://media.stpetecatalyst.com/uploads/2025/11/Screenshot-1275-e1762267057322.png)

Property improvements include a large shaded outdoor meeting area, “period-specific facade restoration,” landscaping, expanded parking, bike racks and a shared courtyard for gathering, murals and community events.

The Looking Glass Initiative also hopes to enhance micromobility and neighborhood connectivity along the MLK corridor by introducing e-bike and scooter access, advocating for a new push-button crosswalk and collaborating with the South St. Pete Community Redevelopment Area (CRA) to improve sidewalks and street lighting.

The Barketts hope to establish a successful model that they can recreate in other areas once the community self-sustains the initiative. While they have applied for CRA funding, the couple hopes community foundations and partners will also help support The Looking Glass Initiative.

“I’m going to ensure that this is followed through to the best of our abilities,” Julie pledged. “And I really want the community center to feel like hope for the future. That the future has arrived, and it’s theirs.”

“John and I understand that we’ve invested in a historically Black neighborhood, and the responsibility that comes with that.”…

How a Couple's Vision is Transforming a Historic Neighborhood with Tech, Gardens, and Community Power

## A New Era for Startup Innovation at Georgia Tech

Today, **Velocity Startups** joins Georgia Tech's comprehensive commercialization ecosystem, solidifying the Institute's role as a national leader and premier hub for research commercialization and startup growth. This accelerator serves as a **bridge for early-stage startup founders** focused on scaling their businesses and preparing for late-stage accelerators like the Advanced Technology Development Center (ATDC), Engage, Fusen, and Atlanta Tech Village in Atlanta.

### Collaborative Hub in Atlanta's Tech Square

To support emergent startups, Velocity Startups will establish a collaborative facility in **Atlanta's Tech Square**, the city's innovation district that fosters community growth and meaningful innovation at the heart of the tech scene. Donnie Beamer, senior technology advisor in the Atlanta Mayor's Office of Technology and Innovation, emphasized, "Atlanta is where innovation becomes opportunity, and Velocity Startups will make that journey even faster. By connecting entrepreneurs to critical resources, we are fueling more startups, creating jobs, and driving economic growth."

### Resources and Support for Entrepreneurs

As an early-stage accelerator, Velocity Startups provides essential resources, including **mentorship support, space, tools, networks, and infrastructure**. It bridges the gap from spinoff to viable startup for Georgia Tech students, faculty, researchers, and the broader Atlanta community. Startups completing the CREATE-X Startup Launch program and presenting at Demo Day events will gain access to Velocity Startups. The accelerator offers strategic programming, funding, and access to Georgia Tech's research resources, while coordinating Metro Atlanta's entrepreneurial ecosystem and advocating for policies that support startup success.

### Leadership and Vision

Raghupathy 'Siva' Sivakumar, vice president of commercialization at Georgia Tech, stated, "Velocity Startups represents a pivotal step in uniting resources, expertise, and entrepreneurial spirit to establish Atlanta as a top national tech hub. It helps startups scale from their first customer to long-term growth, translating groundbreaking research into high-impact ventures." Velocity Startups is a subsidiary of Georgia Advanced Technology Ventures and operates in partnership with the City of Atlanta, with a national search underway for a director to lead the initiative.

For more details, visit [commercialization.gatech.edu/velocity](https://commercialization.gatech.edu/velocity).

Today, Velocity Startups joins Georgia Tech’s comprehensive commercialization ecosystem, solidifying the Institute’s role as a national leader and premier hub for research commercialization and startup growth. Velocity Startups serves as a bridge between early-stage startup founders who are focused on scaling their businesses and readying themselves for late-stage accelerators such as the Advanced Technology Development Center (ATDC), Engage, Fusen, and Atlanta Tech Village within the City of Atlanta. 

Unlock Your Startup's Potential with Georgia Tech's New Velocity Accelerator

## The Shift in Israeli Entrepreneurship

**Jeff Horing**, Co-Founder and Managing Director of global venture capital firm **Insight Partners**, has invested in over 250 companies worldwide and more than 150 in Israel, including success stories like **Monday.com**, **Wix**, **JFrog**, and **Wiz**. With Insight Partners now the largest investor in Israeli high-tech, Horing warns that Israel’s next wave of innovation success depends less on inventing new technology and more on understanding how to apply it.

“Israel has historically had a phenomenal pipeline. But it looks different today, and not necessarily in a good way. Applying technology is a little harder for Israeli companies to think about,” Horing said during a fireside chat with **Startup Nation Central CEO Avi Hasson** at the **MNC Summit 2025** in Tel Aviv.

![Avi Hasson and Jeff Horing MNC Summit 2025](https://pic1.calcalist.co.il/picserver3/crop_images/2025/11/04/H1SnZswyZl/H1SnZswyZl_0_254_2416_1360_0_x-large.jpg)
*Avi Hasson and Jeff Horing (Photo: Guy Hamoi)*

## From Quick Exits to Building Global Companies

In the early 2000s, founders and investors often clashed over control and direction. “We could fight for weeks about who to hire,” Horing recalled. “It was just a different approach, a bit more confrontational.”

Today, that tension has largely given way to partnership. Founders are more collaborative and ambitious, aiming to build global, independent companies rather than sell early.

“The first generation of entrepreneurship in Israel was about **quick exits**,” he said. “But around 2010, founders started saying, ‘No, I’m going to run for the gold.’ That created a very different type of exit environment.”

## The Gap in Applying Technology

“A lot of you are phenomenal inventors of new technology or pushing the envelope on new technology,” Horing said. “In the area of cyber, it was second nature to you to think about the application of cyber in the real world.”

However, he continued, what Israel’s startups often lack is proximity to large-scale corporate users, like those found in the U.S. or Europe, creating a gap that limits understanding of real commercial challenges. “Israel has historically not had as tight a link to practitioners as other markets,” Horing said.

Thus, he continued, “You have to work doubly hard to make sure you get yourselves out there to understand what real-world problems look like. Because if you all try to solve the same intuitive problem, there’ll be a lot of ‘me-too’ business plans.”

“The value,” he added, “is understanding how to apply technology to a business problem.”

## Insight Partners’ Role in Bridging the Gap

That gap is one that Insight Partners now hopes to help close. “We’ll have some answers maybe in the next two months to think about how we can help the ecosystem here get closer to some of the problems that we see in the U.S. that are unsolved,” Horing revealed. “I’d love to help move a little bit more aggressively how founders think about business problems that are really sticky and transformative for big companies.”

## The Importance of Gross Retention

Horing noted that the companies most likely to thrive will be those that truly understand their customers, highlighting a metric he believes is undervalued by most Israeli startups: **gross retention**. “How much of your business is predictable from year to year from your existing customers, versus how much do we have to do in terms of getting new customers,” he explained.

“If anybody’s out there starting a business, and that number is less than 90%, I would rethink what you’re doing,” he said. “It may not be felt today. It will be felt in the future.”

## AI as a Force Multiplier, Not a Successor

When the discussion turned to whether software risks becoming a commodity amid the rise of chips, hardware, and other deep-tech fields, Horing refuted the claim. “We’re not too concerned about software losing its magic,” he said.

Ultimately, Horing conceptualizes the **AI revolution** as an extension of software: a force multiplier rather than its successor. “AI is a form of software,” he said. “AI is just a phenomenal tool to solve new business problems. It could be five times the size of what cloud was, which was five times the size of what client-server was.”

The veteran investor warns that Israel’s next wave of innovation success depends less on inventing new technology, and more on understanding how to apply it.

Stay up to date with our latest news

Startups Articles Published Today

Startups Articles Published Yesterday