#631
The Robot in the Room
A man wanted to drive his robot vacuum with a PlayStation controller. Instead, he found roughly 7,000 of them, scattered across 24 countries, faithfully reporting their serial numbers, cleaning routes, and room maps to his laptop. Sammy Azdoufal, an AI strategist, used Claude Code to reverse-engineer how his DJI Romo spoke to its cloud servers. He didn't brute-force anything. He simply extracted his own device token. Within nine minutes, his scanner had cataloged 6,700 devices and ingested more than 100,000 data packets, including room maps, battery levels, and IP-derived locations. A 14-digit serial number was all it took to generate a journalist's floor plan from another country. DJI has since issued patches, citing a backend permission flaw.
The episode underscores broader security concerns as AI tooling advances. OpenClaw, a viral open-source assistant that runs locally with access to files, credentials, and messaging apps, has raised warnings about prompt injection risks and sensitive data exposure. The risks extend beyond OpenClaw itself. Researchers at Wiz recently breached the misconfigured database of Moltbook, a social network populated largely by OpenClaw-built AI agents, in under three minutes, exposing 35,000 email addresses and private messages between agents.
The throughline is velocity. AI systems are being granted deep access to homes, workflows, and identities before the guardrails are mature. The risk vectors are proliferating faster than anyone can audit them.

Portfolio News
Vestwell powers Carta's new enterprise-grade 401(k) for high-growth companies - Together with Morgan Stanley, Vestwell is bringing modern, integrated retirement infrastructure to high-growth companies on the Carta platform—connecting equity, wealth, and workplace savings in one seamless experience. Read more
American Prison Data Systems (Orijin) acquires honest jobs - The acquisition unites Orijin's education, rehabilitation, and workforce preparation platform with Honest Jobs' national employer network and reentry technology, creating the only comprehensive end-to-end pathway connecting incarceration to meaningful employment. Read more
The Robot in the Room
The accidental hacker: how one man gained control of 7,000 robots - When Sammy Azdoufal found he had access to data from robot vacuum cleaners around the world, he told a tech publication. But the implications could be mind-boggling. Read more
The DJI Romo robovac had security so poor, this man remotely accessed thousands of them - Sammy Azdoufal claims he wasn’t trying to hack every robot vacuum in the world. He just wanted to remote control his brand-new DJI Romo vacuum with a PS5 gamepad because it sounded fun. But when his homegrown remote control app started talking to DJI’s servers, it wasn’t just one vacuum cleaner that replied. Roughly 7,000 of them, all around the world, began treating Azdoufal like their boss. Read more
OpenClaw and Moltbook have security researchers worried - OpenClaw runs locally on a user's computer and requires access to users' files, credentials, passwords, browser history, and more. That could be particularly risky for prompt injections, a type of attack in which an AI encounters hidden instructions on web pages, which could trick it into doing things like sharing private information or publishing on social media. Read more
Industry News
US banks build tokenized deposit network to guard their turf - Five regional US banks are launching a blockchain-based tokenized deposit network with Cari, aiming for regulated, always-on settlement to defend core deposits against stablecoins and rising digital-asset competition. Read more
How insurance became the lifeblood of private credit - Over the past decade, private equity firms like Apollo have reshaped the life insurance industry by loading insurers with complex private credit investments, often at higher risk and leverage than traditional rules would allow. This strategy boosted returns enough that private capital-backed insurers like Athene and Global Atlantic could undercut competitors on price, steadily winning more market share. Read more
Wanna bet? How Polymarket and Kalshi are gamifying truth - Boosters say prediction markets create economic and social value by providing better information about what will happen in the world. People could use them to hedge against risk. Both Polymarket and Kalshi pitch themselves as sources of truth in a time of epistemic precarity. Detractors call prediction markets glorified gambling. Read more
Taleb, Citrini fuel AI scare trade - A bearish report by Citrini Research outlined potential risks to various segments of the global economy due to AI disruption, using hypothetical scenarios set in the future. The report described a potential scenario where AI agents disrupt industries such as food delivery and payment processing, causing anxiety in the stock market and leading to a decline in shares of affected companies. Read more
Nubank’s AI model helps fuel net interest income expansion - Nubank’s credit margins increased in the fourth quarter of 2025, as Latin America’s largest fintech expanded its use of a credit model powered by artificial intelligence. Read more
Anthropic links AI agent with tools for investment banking, HR - Anthropic PBC is expanding the reach of its Claude chatbot into new sectors, weeks after the startup sparked a market meltdown with the release of tools that raised questions about AI’s potential to render entire businesses obsolete. Anthropic said they were developed with partner companies, such as a plug-in created with financial data provider FactSet. Read more
Harvard-led study says AI can predict 71% of active-fund trades - The study's findings imply that the justification for active-management fees increasingly rests on the smaller share of decisions that depart from the predictable template, rather than the majority of portfolio adjustments that can be anticipated by an algorithm. Read more
White House offers new details on its push to ban housing investors - In a memo sent Thursday, the White House proposed banning investors with more than 100 single-family homes from purchasing additional homes. That designation is likely to upset many midsize investors, who had hoped the White House would go with a looser restriction. Many counted on the administration targeting only investors who own 1,000 homes or more. Read more
Goldman Sachs launches AI-free index - Typically, you buy an index because it's diversified, but the AI trade and its impact on the market caps of the top stock in the S&P has made the index concentrated on the tech theme. However, an index that drops that theme entirely could be a way to give investors the diversification they're craving. Read more
Better partners with Framework Ventures on $500m Sky stablecoin credit plan amid mortgage tokenization push - Under the arrangement, Better plans to access capital allocated through Sky’s ecosystem, where sector-specific “Stars” deploy funds to generate yield that flows back into the stablecoin network. Read more
Jack Dorsey’s Block to cut nearly half its workforce in AI overhaul, shares surge - In a post on social media platform X, Dorsey said Block opted for a single deep round of cuts instead of multiple smaller layoffs over time. He said a smaller company would also give it space to grow the business the right way, instead of constantly reacting to market pressures. Read more
Santander expects to generate €1b in business value from investments in AI - In addition to increasing customer base from 180m to more than 210m by the end of 2028, the bank is betting on enhancements from AI and data initiatives to grow revenue mid-single digit and reducing total costs every year to achieve a profit of more than €20b by 2028. Read more
LSE and Crowdcube launch first offer for retail investors - Crowdcube's deal with the LSE is meant to open private markets to retail investors and create a more inclusive and liquid ecosystem. The partnership will allow Crowdcube's two million members to invest in later-stage, high-growth, private companies on the same terms as large institutional investors. Read more
MetaMask crypto debit Mastercard launches across the United States - Created in collaboration between Ethereum software firm Consensys and Mastercard, the card was initially rolled out in 2024 for a limited pilot in the United Kingdom and European Union, allowing users to make everyday purchases using their crypto balances, and is now live throughout the US. Read more
Chase to open 160 branches in 2026 - While many banks have been cutting their branch networks as customers go digital, in 2024 Chase committed to opening another 500 sites, renovate another 1700, and hire 3500 employees across the country over three years. The expansion is bringing Chase into new markets—including low-to-moderate income and rural communities. Read more
Select Financings
Allica Bank - UK based digital business bank raised $155m in Series D funding led by Ventura Capital, GLG, and Sona AM. Read more
Based - Singapore based web3 consumer app for crypto raised $11.5m in Series A funding led by Pantera. Read more
Basis - New York based agent platform for accountants raised $100m in Series B funding led by Accel. Read more
Cicada - New York based electronic trading platform raised $13.5m in Series A funding led by Citi. Read more
Croissant - Tennessee based fashion fintech raised $14m in new funding led by Portage, Third Prime, and George Roberts. Read more
Dots - San Francisco based global payouts software platform raised $8.9m in Series A funding led by DCM. Read more
General Magic - Canada based company developing SMS native AI agents raised $7.2m in Seed funding led by Radical Ventures. Read more
Happyhotel - Germany based revenue management software provider for independent hotels and hotel groups across Europe has raised €6.5 million in Series A funding led by Reimann Investors. Read more
Harper - California based insurance brokerage startup raised $46.8m in Seed and Series A funding led by Emergence Capital. Read more
Hypercore - Israel based loan management platform for private credit funds raised $13.5m in Series A funding led by Insight Partners. Read more
Inscope - San Francisco based AI-powered financial reporting platform raised $14.5m in Series A funding led by Norwest Venture Partners. Read more
Mogul - California based music industry revenue tracking platform raised $5m in new funding led by Yamaha Music Innovations Fund. Read more
Rowspace - San Francisco based data AI platform for financial firms raised $50m in Seed and Series A funding led by Sequoia Capital and Emergence Capital. Read more
Sherpas - Missouri based software maker for wealth managers raised $3.2m in Seed funding led by 1248. Read more
TBD - New York based Solana prediction market protocol raised $3m in Seed funding led by CMT Digital and ParaFi. Read more
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