00:30:00 · Jason Calacanis, Lon Harris, Jake Newfield
[00:30:00] S0: I'm gonna meet with my CFO. I got a lot going on today. [00:30:03] S1: Oh, yeah. Very busy. Well, let's get you to your plans. But before we do that, our next guest won the LAUNCH pitch competition, and he won it again the following week. He's Jake Newfield, the co founder and CEO of Hermetiq, which builds an AI build engineer. It's named Barn Owl. Jake, the floor is yours. We can't wait to hear your pitch. Welcome to the show. [00:30:25] S2: Yeah. Hey, Lon. Jason, good to see you guys. [00:30:27] S0: Good to see you. Now for people who don't know, you're in the Launch Accelerator class thirty seventh, our thirty seventh cohort. Been doing this for over ten years now. And every week, we have a handful of investors come. They hear your pitch. You're in week, I don't know, five or six right now. And you pitch for two minutes. They give you feedback, but we ask all the investors. Pick your number one, your number two, and you can give an honorable mention. First place gets two points. Second place gets one point. Third place gets a half point line. You add all that up every week, and then we keep those scores for the whole twelve weeks. Then we do these, intensive weeks like we had last week in San Francisco. How many VC firms and investors did we take you to see last week, Jake? [00:31:10] S2: It was like three per day. 15? Pretty much, yeah.
00:31:10 · Jake Newfield, Jason Calacanis
[00:31:10] S2: It was like three per day. 15? Pretty much, yeah. [00:31:14] S0: Yeah. And then we're going to do a New York tour, a track. So we did the LA, we did the San Francisco track, went to New York track. So instead of, you know, a demo day with a bunch of dentists who put twenty five, fifty k checks, what we do is we go to the early stage funds. We say, Hey, I got a proposition for you. What if we brought our top seven companies to your office? They pitch for two minutes each in, you know, ninety minutes soup to nuts. You're in and out, you meet seven companies. We're like, Oh, usually that takes us, you know, ninety minutes per company. And these are pre sorted by Jake Al and his team. Okay, that's really a great value for those folks. And so I think this time we're going to bring you to 20 or 30 different VC firms and just put you in their office. And what that does is, Lon, this is my strategy, I always try to do a little bit better for our founders. Now when the founder follows up with them, Hey, I don't know, Fred Wilson, I was at your office on this date. I met with your partner. This person wanted to give you an update on our business if you were willing to look at it. I loved your podcast about X, Y, and Z. Boom. So you're building that relationship fabric. You're getting anointed to a certain extent. And then whoever's first place gets super anointed. Jake, congratulations on being first place this past week. You have two minutes on the clock. Three, two, go.
00:32:31 · Jake Newfield
[00:32:31] S2: Hi, I'm Jake Newfield, co founder and CEO at Hermetiq. Because of agentic coding, tools like Claude, Cursor, and Codex, coding and creating code is no longer the bottleneck that it was a couple of years ago for companies. The bottleneck is now the build process, which is the process of compiling, verifying, and testing code. And this is a massive problem, right? Because every company from the AI labs down to AI native startups, that is becoming the bottleneck for their software development process. And we are solving this today for one of the top AI labs who's paying us $2.40 ks to provide analysis into their over 2,000,000 builds per day that they run, which is 4,000,000,000 build events. And we're solving this at the protocol level, the protocol being the RBE protocol, which is implemented by Bazel. So we're doing to Bazel what Databricks has done with Apache Spark, thus becoming the data layer between builds and the AI agents themselves. So the data that these AI agents can use to automate builds. My co founder and I worked together previously. So Tim was a senior engineer at Apple, leading a team over there. He was the chief architect at Lucidworks. My background is more sales product, Columbia Business School MBA, sales at Salesforce and Cloudera, and product management at Akamai. And we're taking on a big market. We see a $25,000,000,000 market opportunity that we aim to tackle. We've raised $2,200,000 to date, including Launch dot co and Niranjan Tulpule, who's a VP of Developer AI Google and Gokul Rajaram, and several other partners. And that is the under two minute pitch.
00:34:13 · Jason Calacanis
[00:34:13] S0: I know a lot of you out there listening are wanting to start your own company. So if it's finally time for you to make your dream into a reality, you can't find a better partner than our pals over at Northwest Registered Agent. Northwest Registered Agent is now offering free identity services. That means a free domain name, open source web hosting, a business email and phone number, and everything else that's going to make your new startup look and feel like a professional company, all with no purchase required. And this is free done right. They're not passing your data along to any third party vendors, and they're never going to sell it. So if you have an idea you can't get out of your head, or if you're already building something amazing, get started with Northwest for free and upgrade as you grow. Learn more at northwestregisteredagent.com/twistdomain. Love it. I love it. So tell me, what are the most common questions you've gotten from investors? We track this as well, Lon. So even before AI and note taking, I had my team transcribe on the video, like, the next day. We would take from the TriCaster, this is ten years ago, the TriCaster output. They would go back to the office. They would carry the TriCaster back, and they would transcribe the questions and the answers. Then... And sometimes we'd pay a transcriber a dollar a minute, whatever, and we would workshop with the founders like, Hey, how good was the question and the answer that they gave? Jake, what's the question you get over and over again from investors here?
00:35:43 · Jake Newfield
[00:35:43] S2: Question I get over and over again, Jason, is why the heck would one of these AI labs be paying for your product? You guys are a startup. At the time they started paying for us, we're a two person startup, barely any funding. So why don't they just build it themselves? This is a critical path issue for them. And the reason I give I have two answers to that. One is kind of the theoretical philosophical answer, which is for the same reason that these AI labs don't want to build their own data lake and they use Databricks for the data lake, the same reason they don't want to build their own single sign on product, they use Okta or something. Whether you're talking about Google and AI Lab, whatever, just because a company is big and successful doesn't mean they want to build everything under the sun, because that takes resources away from core stuff that they're building, which in the case of the labs is LLMs. What do these labs care about? They care about building the best LLMs. They don't want to get into the real estate business or building data pipelines for Bazel data. So that's the philosophy of it. It's strategic misalignment for them to build it themselves. But then there's the reality of it, which is that they are paying us. So beyond me saying, hey, I think this is what they should do and might do because of these reasons, that's philosophical. The reality is we get the wire every month, which validates
00:36:56 · Jason Calacanis, Jake Newfield
[00:36:56] S0: that Yes. All right, listen. This is one of the great lessons of entrepreneurship. When you get a lighthouse customer, you lean into it and you say it upfront. Always start with what's strongest. You want to build credibility. Investors, Jake, you know this, are very busy. They see a lot of companies. The issue for investors now is not that there is no companies to pick from, it's they have a limited amount of time and the signal to noise ratio is absurd. It's absurd for me. And I have typically 10 associates, researchers and analysts working for me at any given time. I overstaff my programs with the revenue from the media company in some cases or other things so that I can spend more time with founders and find these great companies. But if you start with, hey, we hit our first quarter million in revenue, and we have a Lighthouse customer. We have a second Lighthouse customer. Now you're immediately going to get the meeting. Period, full stop. Lighthouse customer, if the investor invests at your stage, if the investor invests in your category, like, you know, marketplace, software, dev tools, whatever it happens to be, you're just getting the meeting. What founders then do is they try to do everything else to try to get the meeting. Sometimes you wanna do less in your pitch and spend more time on just getting a great customer and having that customer speak for you. Now, you don't have a testimonial from that customer yet, right? Do you have like a quote from them? [00:38:35] S2: I don't, yet. I will.