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Geek Wire
8 hours ago
- Entertainment
- Geek Wire
Semiconductor startup Lumotive boosts Series B round with help from Amazon
Week in Review: Most popular stories on GeekWire for the week of July 13, 2025
Geek Wire
a day ago
- Business
- Geek Wire
Navigating the Seattle startup ecosystem: A guide for Microsoft and Amazon execs
GeekWire's startup coverage documents the Pacific Northwest entrepreneurial scene. Sign up for our weekly startup newsletter , and check out the GeekWire funding tracker and venture capital directory . Since I left Microsoft in May, I have been inundated by Microsoft executives and employees wanting to explore and engage in the Seattle startup ecosystem. Prior to joining Microsoft, I always wondered why I would never see Microsoft or Amazon employees at startup events. Now I know Microsoft is its own all consuming ecosystem, where internal networking can be way more important than external networking. Here's a guide on how Microsoft and Amazon employees can get involved in the Seattle tech scene, with limited time commitments. Engage as an advisor or board member Advising startups is a common way to contribute your expertise. Generally, in my experience, advisor positions are not a big time commitment, often involving meetings once a month or every couple of months initially. Your involvement may decline once a company raises venture capital unless your expertise is highly specific to their needs. Compensation: Advisor compensation typically ranges from 0.1% up to 1% of the company's stock with the median grant of 0.25%, depending on the stage, your engagement, your expertise and chemistry with the founding team. Peter Walker of Carta does a good breakdown on LinkedIn. Board roles: Becoming a board member often occurs after a startup's first round of financing, with venture capital firms seeking outside perspectives. They look for specific expertise that investors are not going to add — like unique industry or technology insights, go-to-market strategies, sales and marketing, or finance. Later stage startups will often hire 'been there done that' CEOs or CFOs who can add credibility or guidance for a startup as they prepare to go public or be acquired. Strategic investing in startups There are two primary paths for investing: Direct angel investing This is a hands-on approach. Angel investing is a lot of work! A successful angel investor like Ron Conway in Silicon Valley can make a lot of money by being early to investing and then introducing startups to venture capital firms. To potentially make money, I believe you need to consistently invest in at least 20+ companies over four to five years, making four-to-five investments a year. The vast majority of these startups will fail, but you will start to see some success. Over that time period, you will build your reputation in the market as an investor, start learning what to look for, and then entrepreneurs can start coming to you for advice and funding. Seed funds Personally, I don't have the time to commit to angel investing, but I want to support my fellow Seattle entrepreneurs and support the Seattle ecosystem. I have made investments in Seattle seed funds which are venture capital firms investing in Seattle entrepreneurs at the earliest stages of the journey. Many of these firms will entertain smaller funds, instead of $1 million minimum at more established funds. Seattle seed funds also value the local network and expertise to help develop their portfolio companies. Larger funds often have venture partners and deep industry relationships, when smaller funds do not. Some notable Seattle pre-seed and seed funds are: Unlock Venture Partners Ascend Founders' Co-op AI2 Incubator Flying Fish Partners Two Ravens VC Pioneer Square Labs Madrona Voyager Capital FUSE Maveron Tola Capital Second Avenue Partners Seed funds are known for building a community around entrepreneurs and their investors. You can choose how involved you want to be. Most seed funds welcome investors with experience (particularly in enterprise and AI). You can mentor founders and help with the go-to-market and build a network across their investors as well. It's been a great way for me to stay relevant in the market and keep expanding my network. Expected returns & risks The goal for most venture capital firms is to achieve at least a 20% internal rate of return (IRR) or greater. Venture investments are highly speculative, with 90% typically failing and fund returns can vary significantly. For example, a fund's first fund might track 2-3X returns, while others might be flat or lose money. Diversification across multiple funds is crucial to mitigate risk. Seed funds are considered the earliest and riskiest stage of venture capital. Large public investment firms like CALPERS, Washington State Investment Board, and the University of California publicly report many of the investment returns for private equity and venture capital firms. You can see the broad spread of returns based on the firm. Diversification and getting into the 'right' funds for the right vintage (i.e. the right year) is often key to success. It is easier to make money in a rising tide environment. Networking and finding opportunities The most important thing is getting started! Instead of sitting on Teams meetings in Redmond or South Lake Union, just get started by attending some events. My rule of thumb is that I am willing to go to any event where I think I can meet one person with whom I will do business in the future. I also try to meet at least one new person I have never met before at every event. Meet people who are moving and shaking in the startup scene – would be entrepreneurs, co-founders, entrepreneurs, the startup curious, angel investors, incubators, seed funds and the service providers like the lawyers that work with start-ups like Perkins Coie, Wilson Sonsini, Fenwick & West, DLA Piper, and Cooley LLP. Law firms often have a finger on the earliest stages of the startup journey. Below are a number of organizations that regularly host startup get togethers for the Seattle community: AI2 Incubator TiE Seattle Pioneer Square Labs Foundations GeekWire Seattle Tech Week Ascend's Founder Bash Get started! The Seattle startup ecosystem offers great learning, networking and potential investment opportunities. Plus you can give back and contribute to the growth of the next Amazon or Microsoft right here in our backyard.
Geek Wire
2 days ago
- Entertainment
- Geek Wire
Alaska Airlines grounds flights across U.S. due to IT outage
is GeekWire's editor, responsible for coordinating the newsroom, planning coverage, and editing stories. A native of Portland, Ore., and graduate of the University of Washington, he was previously a GeekWire staff reporter, covering beats including startups and sports technology. Follow him on LinkedIn or email taylor@
Geek Wire
6 days ago
- Business
- Geek Wire
Filings: AI2 Incubator raises third fund to back more early stage startups
GeekWire's startup coverage documents the Pacific Northwest entrepreneurial scene. Sign up for our weekly startup newsletter , and check out the GeekWire funding tracker and venture capital directory . Yifan Zhang, managing director at AI2 Incubator, speaks at the firm's summer party last year in Seattle. (GeekWire Photo / Taylor Soper) AI2 Incubator, the Seattle-based startup organization and venture firm, has raised about $80 million for its third investment fund, according to new SEC filings. The firm declined to comment when reached by GeekWire. The new fund would be a sizable jump from AI2 Incubator's $30 million second fund that it raised in 2023, and its $10 million first fund in 2020. The AI2 Incubator runs an incubator, which helps nurture budding startups, as well as its venture fund. In 2022 the AI2 Incubator spun off from its original home, the Allen Institute for Artificial Intelligence, into a separate entity. The organization describes itself as 'one of the few pure artificial intelligence incubators in the world,' and has spun out more than 40 companies worth $1.25 billion. The firm's main technical focus areas include task-centric AI; foundation model operations; domain-specific foundation models; and generative/creative AI. Past spinouts from the AI2 Incubator include which was acquired by Baidu; Lexion, acquired by Docusign; and acquired by Apple. Its startups have raised more than $250 million collectively. The firm invests in companies across North America. Venture capital heavyweights including Madrona Venture Group, Sequoia Capital, and Two Sigma Ventures invested in the firm's second fund. Earlier this year AI2 Incubator moved into a new headquarters building at Pier 70 on the Seattle waterfront dubbed the 'AI House,' which is designed to bring entrepreneurs, investors, students and community leaders together to enhance collaboration on artificial intelligence. AI House has financial support from the City of Seattle and the state of Washington. AI2 Incubator is led by managing directors Jacob Colker and Yifan Zhang.
Geek Wire
11-07-2025
- Business
- Geek Wire
Microsoft President Brad Smith on AI investments, job cuts, and the uncertain future of work
Microsoft President Brad Smith unveils the new Microsoft Elevate AI skilling initiative Wednesday at the Museum of History and Industry. (GeekWire Photo / Todd Bishop) After Microsoft this week unveiled a $4 billion, five-year global initiative to help millions of people adapt to the rise of artificial intelligence, the first question for Brad Smith, the company's vice chair and president, wasn't about the new program. It was about the company's own layoffs. What does he say to laid-off Microsoft employees who blame AI for taking their jobs? Smith addressed that question and offered his broader perspective about AI's impact on work — at Microsoft and across the global economy — during a press conference Wednesday and later in an interview with GeekWire. Here are the key takeaways from his comments. Smith said AI efficiency gains weren't the primary driver of the layoffs — but acknowledged that rising capital expenses have added pressure to reduce operating costs. Efficiency gains from AI were 'not a predominant factor' in Microsoft's layoffs totaling about 15,000 people over the past two months, Smith said. He pointed instead to shifting business priorities, changing market conditions, and the need to reallocate resources toward growth areas. Long term, he said, AI will fundamentally reshape jobs at Microsoft and everywhere else. But addressing the recent Microsoft cuts, he said, 'The notion that AI productivity boosts have somehow already led to this, I don't think that's the story in this instance.' In the follow-up interview, he acknowledged that rising capital spending have created pressure to rein in operating costs, which in the tech sector are 'more about the number of employees than anything else,' he said. Microsoft logged an estimated $80 billion in capital investments in its recently completed fiscal year, a record sum driven by the expansion of its infrastructure for training and running advanced AI models. Smith acknowledged the human toll of the cutbacks. He defended the layoff process, calling it difficult, necessary, and carefully considered. He also disputed reports about impersonal or anonymous layoff notices. Smith, who has been at Microsoft through multiple rounds of layoffs over the years, called each one 'painful' but at times 'indispensable' to setting the company up for future growth. 'We can talk about what's good for the company as a whole, but if you're the person who's not part of that success that day, it's not a good day,' he said. Responding to reports that employees weren't notified personally, Smith said Microsoft makes a point of delivering layoff news face-to-face whenever possible, treating people with respect, and providing severance packages that are more generous than industry norms. He said the reductions were driven by business needs, not employee performance. 'We want the world to know that,' he said, 'so that when they see somebody from Microsoft applying for a job, they know that in all likelihood, they have the opportunity to hire an extraordinarily talented individual.' Addressing concerns about Microsoft's culture, Smith said the company needs to stay true to its core values. He also cited the need for employees to adapt. The job cuts have fueled employee concerns about a shift in Microsoft's culture and whether the company is still living up to its stated values, as reflected in recent reporting by The Seattle Times and others. Asked about the risks and opportunities for Microsoft's culture during the AI transition, Smith said the company needs to stay focused on clear communication and a growth mindset. 'Even in a world of extraordinary GPU power, people are still our greatest asset,' he said. At the same time, he said, 'success on a sustained basis requires adaptation. It does require a focus on high performance. It does require on certain days that people work harder or smarter, or ideally both. And the nature of work itself will change the nature of jobs in certain areas.' Referencing the 50th anniversary of the company's founding, he said, 'The jobs we have in 2025 are very different from the jobs we had in 1975. … And I think the key to success at an individual level is to constantly be asking, 'What do I need to learn next?'' There's still a lot of uncertainty about the types of skills that will be required. 'I think we all are on a collective journey to discern and develop the new skills that are going to be needed' for success in the AI era, Smith said. 'They're not yet completely clear.' That's part of the thinking behind Microsoft Elevate, the new $4 billion, five-year program that consolidates the company's philanthropic, education, and social impact programs with a focus on AI. Microsoft says it wants to help 20 million people worldwide earn AI-related credentials over the next two years through partnerships with schools, nonprofits, unions, and community organizations. As for the broader economy, Smith framed the current workforce changes as the latest in a series of pivotal moments dating back to 1800. He cited the shift from horses to automobiles as one historical parallel. He also pointed to his experience as a lawyer, seeing PCs reduce the need for legal assistants while creating new IT roles at the same time. What would he say to longtime Microsoft employees who lost their jobs and then saw the company commit billions to broader workforce development? Smith acknowledged the difficult juxtaposition but defended the separate moves as necessary. 'Success in life, whether it's for an individual or a company or any kind of institution, is always about prioritization, and it's always about investing in the future,' he said. 'This is something that Microsoft should do for the future.' He added, 'It doesn't mean that anyone should feel better. That's not what I'm arguing. These kinds of decisions are always difficult.'
