I recently had a great conversation with John Furrier of theCUBE and NYSE Wired at the HF0 Residency in San Francisco.
We talked about a major shift happening in how companies are built, the current AI boom, and why San Francisco is once again becoming the epicenter for entrepreneurs.
Having been both a founder and now an investor with Austin Capital, I’ve seen both sides of the table, and the changes we’re seeing today are unlike anything I have ever experienced.
Keep reading below for a summary of the interview.
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Watch the full interview below, or click here to watch it on YouTube.
A New Model
For a short time, especially around COVID, there was a belief that everything could be done virtually. The idea was that teams could be distributed, and you could get the same work done. While that worked to some extent for certain roles, the current AI boom has changed the game.
The opportunities presenting themselves now are incredible, but they require people to be in person again. We need to be in hubs that have all the tools and resources to build momentum quickly. That is what makes a model like the HF0 Residency so powerful. It is a new way to build companies where founders can lock in for several weeks and accomplish what would normally take two years. It is a fellowship that provides the focus needed to innovate at a rapid pace.
San Francisco’s Resurgence
We are seeing a convergence of the digital and physical worlds. This is clear in areas like physical AI and robotics. This shift is bringing people back to key hubs. San Francisco is seeing a resurgence of resources, capital, and talent. If you are building an AI company, this is a better place to be building a business right now.
I think about the influx of resources again, that is investors, that is capital, that is talent. You are starting to see this resurgence of people kind of coming back to San Francisco and I think it is a place to be if you are, especially if you are building an AI company.
Founder-Led Investing
The entire landscape of venture creation and capital has evolved. We have gone from traditional incubators to super angels and micro VCs. Now, we are seeing something even more impactful: founders investing in other founders.
It is great that founders are supporting each other. In probably 8 out of 10 pitches that I see today, the first money in is not from a traditional VC, but from another founder. This is partly because there is more liquidity in the secondary market, allowing successful founders to reinvest in the ecosystem. But more importantly, it creates a network of trust and value-add that is hard to replicate.
The Fintech Opportunity
It no longer costs as much to start a company, thanks to cloud and now AI. This has opened the door for massive disruption, especially in financial technology.
Consider the difference in technology spending:
- JP Morgan: Spent around $20 billion on technology last year.
- Community Banks: The remaining 4,000+ community banks combined spent about $3 billion.
There is a huge gap there. This is an immense infrastructure opportunity. Many community banks are struggling. Their technology is outdated, and they are losing deposits as older generations pass away. They have trouble attracting new customers who expect a modern, digital experience.
This opens opportunities for new companies to provide better services. For example, a farmland marketplace I founded realized that crop insurance was a huge opportunity. We already had the distribution of hundreds of thousands of farmers visiting our site, so we could bolt on this new, lucrative service. Companies that own their distribution can now add financial services on top, creating new and powerful business models.
Conclusion
The key takeaway is that we are in a new era of entrepreneurship. It is defined by intense focus, in-person collaboration, and a supportive ecosystem where founders help each other succeed. Models like the HF0 Residency are accelerating this trend by compressing timelines and providing unparalleled resources, making it possible to build faster and smarter than ever before.
This is a once-in-a-lifetime opportunity. The combination of accessible AI, a new culture of wellness and high performance, and the changing dynamics in major industries like finance is creating a new generation of builders. These “tech athletes” are reshaping the world, and it is an incredibly exciting time to be building and investing.
To learn more about how we’re supporting the next generation of founders, connect with me and the team at Austin Capital.