As **tech giants** continue to expand their **AI capabilities**, concerns are mounting about the challenges faced by **startups**. Despite these challenges, **Seasalt.ai** maintains an optimistic outlook, asserting that there are still **ample opportunities** for startups to thrive in this dynamic industry. The rise of **hybrid and vertical applications** presents new niches where innovation can flourish, allowing startups to carve out their own space amidst the competition.

As tech giants expand their AI capabilities, concerns arise over the challenges startups might face. However, Seasalt.ai remains optimistic, believing there's still ample opportunity for startups to thrive in the industry.

Are Startups Losing Ground to Tech Giants? Uncovering New Niches for Innovation

### The Rise of Storm Smart
Brian Rist **founded Storm Smart** nearly 30 years ago with just **three employees** and minimal leadership experience. Today, he reflects on his journey and the **leadership lessons** learned along the way.

### Transition of Leadership
After selling the company to **Rotunda Capital Partners** in 2021, Rist has remained involved as a shareholder. The new CEO, **Scot Burris**, has overseen significant growth, expanding the workforce from 250 to **500 employees** amid unprecedented hurricane damage.

### Making a Difference
Burris highlights the company's impact during **Hurricane Ian**, stating, "**We saved lives**. We take that very seriously." His leadership philosophy draws from books like **Stephen R. Covey's *The 7 Habits of Highly Effective People***, emphasizing the importance of understanding others.

![Storm Smart Team](https://www.gulfshorebusiness.com/wp-content/uploads/2024/12/241113GSB0536.webp)

### Resiliency and Growth
Rist and Burris have cultivated a brand synonymous with **resiliency**, especially after the devastation of **Hurricane Charley** in 2004, which propelled the company into rapid expansion. Rist recalls, "It went from 23 people when Hurricane Charley happened, and three months later, we had 100 people."

### Innovative Products
The **Storm Catcher**, a unique hurricane protection product, became a game-changer for the company. Rist describes it as a blend of materials used in **trampolines** and **bulletproof vests**.

![Storm Catcher Product](https://www.gulfshorebusiness.com/wp-content/uploads/2024/12/241113GSB0308.webp)

### Leadership Evolution
As the company grew, Burris adopted a coaching approach rather than micromanagement. He believes that empowering employees leads to greater ownership and success. **Lean Six Sigma** manufacturing principles were implemented to enhance operational efficiency.

### Building Culture
Burris emphasizes the importance of building a strong company culture, especially after the experiences brought about by Hurricane Ian. Rist, who initially struggled during the early years, learned the value of community engagement and empowering employees. "**You have to trust the people that you hire**," Rist advises.

![Team Collaboration](https://www.gulfshorebusiness.com/wp-content/uploads/2024/12/241113GSB0359.webp)

### Strategic Partnerships
Rist's journey included strategic hiring, such as bringing on **Barry Feldman** as vice president, which allowed him to focus on growth while Feldman managed the financial aspects. This partnership proved crucial for Storm Smart's success.

### Future Prospects
Under Burris's leadership, Storm Smart continues to expand, recently opening a new showroom in **Palmetto** and installing products in over **100,000 homes** in Southwest Florida. Burris is focused on accelerating growth and maximizing employee potential.

Brian Rist founded Storm Smart almost 30 years ago with three employees, limited experience as a leader and little idea how large and how fast his company would grow.

From 3 to 500 Employees: The Inspiring Leadership Journey of Storm Smart's Founders

**Kaly Group**, a pioneering seaweed farming startup based in Scotland, has successfully secured a **£300,000 funding round** led by **Tricapital Angels**, with additional support from **Scottish Enterprise**. This funding will enable Kaly to expand its operations and develop a **sustainable seaweed supply chain** along Scotland’s picturesque west coast.  

The European seaweed industry is on the rise, with the market projected to reach **£9 billion by 2030**. Scotland stands to gain significantly from this growth due to its extensive coastline, which is ideal for seaweed cultivation.  

**Moray Martin**, CEO of Tricapital Angels, expressed enthusiasm about the investment, stating, *“We are proud to back this exciting and innovative business as it seeks to establish a large-scale, profitable, and environmentally sustainable seaweed-based supply chain.”* He highlighted the growing investor interest in the **blue economy** and the potential of seaweed to drive **economic growth** while delivering important **environmental and health benefits**.  

Kaly is committed to a **community-first approach**, collaborating with local marine stakeholders to ensure that seaweed farming is beneficial for both local communities and ecosystems. The startup aims to tackle challenges across the supply chain, from biomass cultivation to producing **high-value products**, thereby supporting the scalability of the UK’s seaweed sector.  

Co-founder **Daniel Hillman** emphasized Kaly's vision to unlock the full potential of seaweed farming in Scotland, stating, *“We are thrilled by the continuing support from Tricapital and Scottish Enterprise, which will help us take critical steps toward scaling this exciting industry.”*  

With its innovative approach and significant funding, Kaly Group is poised to make a substantial impact on the seaweed industry, driving both **economic and environmental progress**.

A Scotland-based seaweed farming startup has secured a significant six-figure investment as it moves to scale-up operations and develop a sustainable seaweed supply chain on the country's West coast.

Investing in the Future: Scottish Seaweed Startup Secures £300,000 for Sustainable Growth

## The Rise of Low-Cost Carriers

Start-up airlines like **Breeze** and **Avelo** have emerged as low-cost or ultra-low-cost carriers, capitalizing on the growing trend towards affordable travel. In a market where legacy airlines dominate, these newcomers have found their niche, making up a significant share of the airline capacity in the U.S.

![Breeze Airways Airbus A220-300](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2024/12/shutterstock_2424165139.jpg)
*Photo: Robin Guess | Shutterstock*

Since the pandemic, low-cost carriers have increased their market share by approximately **13%**, while legacy carriers have struggled to recover fully. According to **Forbes**, the low-cost model thrives on simplicity, allowing these airlines to minimize costs by avoiding complex operations.

## Meeting the Needs of Travelers

Passengers often have mixed feelings about low-cost carriers. While they appreciate the **affordable fares**, they sometimes express frustration over service quality and additional fees. **Breeze** and **Avelo** focus on leisure travelers and those visiting family. Breeze operates the **Airbus A220** while Avelo utilizes the **Boeing 737** family, offering a no-frills experience with some added perks like power outlets and different seating classes.

![Spirit Airlines Airbus A321neo](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2024/12/spirit-airlines-airbus-a321neo-at-the-gates-in-baltimore-shutterstock_2463328209.jpg)
*Photo: Ceri Breeze | Shutterstock*

Breeze has a fleet of **35 Airbus A220-300s** and **13 Embraer 190/195s**, while Avelo maintains **20 Boeing 737-700s** and **737-800s**. Both airlines have expanded their reach significantly, with Avelo flying from about **54 airports** and Breeze from **66 airports**.

## Targeting Overlooked Markets

These start-up airlines are targeting airports often neglected by larger carriers, creating a new paradigm in the airline industry. They focus on smaller or medium-sized destinations, avoiding the traditional hub-and-spoke model. For instance, Tweed-New Haven Airport, previously serviced by a limited number of flights, now enjoys a boost in connectivity thanks to Breeze and Avelo.

![Breeze Airways CRW](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2024/11/466947242_984836280352675_4850642770726941280_n-1.jpg)
*Photo: West Virginia International Yeager Airport - CRW*

The New York Times highlighted how these airlines have transformed Tweed-New Haven Airport, increasing daily flights from just a handful to around **30**. The airport is now expected to see nearly **500,000 enplanements** in 2024, a significant jump from just **50,000** in 2019.

## Future Growth and Expansion

Looking ahead, Breeze plans to expand its destinations to include cities like **Charleston** and **Jacksonville**, while Avelo is set to launch new flights from Tweed to **Dallas/Fort Worth**. Notably, Tweed is a critical hub for Avelo, accounting for **one in five** of its scheduled flights.

![Avelo Airlines Plane Taking Off](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2024/02/tweed-nov-3_2808.jpg)
*Photo: Avelo Airlines | Bruce Snyder*

Both Breeze and Avelo demonstrate that success in the airline industry is possible by focusing on underserved markets and offering affordable travel options without the complexities of larger carriers.

Avelo and Breeze are showing how its possible to find a niche in an industry dominated by legacy airlines. 

How Startup Airlines Are Redefining Travel: The Success of Breeze and Avelo in Small Markets

### KoBold Metals: Leading the Charge for Critical Minerals

**KoBold Metals**, a startup backed by industry giants **Bill Gates** and **Jeff Bezos**, has recently been valued at an impressive **$2.96 billion**. This innovative company is setting its sights on spearheading the race for **critical minerals** essential for the **energy transition**.

### The Importance of Critical Minerals

As the world shifts towards sustainable energy, the demand for critical minerals like cobalt, lithium, and nickel is skyrocketing. KoBold Metals aims to meet this demand by utilizing advanced technology and data analytics to identify and develop new mineral deposits.

### Vision and Strategy

KoBold's strategy focuses on harnessing the power of **artificial intelligence** and **machine learning** to streamline the exploration process. By analyzing vast datasets, the company is positioning itself to discover new sources of these vital minerals faster and more efficiently than traditional methods.

### Investment and Future Outlook

With backing from influential investors, KoBold Metals is well-equipped to make significant advancements in the mining sector. This venture not only promises to reshape the landscape of mineral exploration but also plays a crucial role in supporting the global transition to renewable energy sources.

KoBold Metals aims to lead race for critical minerals needed for energy transition

Bill Gates and Jeff Bezos Back $2.96 Billion Mining Startup: A Game Changer for Critical Minerals

### Vapi's Ambitious Vision
Vapi is pioneering an **infrastructure tool** designed for developers to create **AI voice agents**. This innovative startup has successfully raised a **$20 million Series A** funding round from **Bessemer**.

### The Future of AI Agents
Venture capitalists are predicting that **AI agents** will become a significant market by **2025**. Vapi's pitch deck, which we provide an exclusive look at, played a crucial role in securing this funding.

![Vapi employees](https://i.insider.com/67740a9f9de00e389eb3fb30?width=700)

### Exclusive Insights
This story is available exclusively to Business Insider subscribers. If you're curious about the strategies that led to this successful fundraising, you can explore the details further.

### The Pitch Deck
Vapi's pitch deck showcased their **unique value proposition** and their roadmap for future development. The images below highlight key moments from their presentation:

![Slide 1](https://i.insider.com/67507874ef9a5d904789d876?width=600&format=jpeg&auto=webp)
![Slide 2](https://i.insider.com/67507874e45a68623a27bf32?width=600&format=jpeg&auto=webp)
![Slide 3](https://i.insider.com/67507879e45a68623a27bf39?width=600&format=jpeg&auto=webp)
![Slide 4](https://i.insider.com/67507875ef9a5d904789d878?width=600&format=jpeg&auto=webp)
![Slide 5](https://i.insider.com/67507876ef9a5d904789d879?width=600&format=jpeg&auto=webp)

And many more slides that illustrate their vision and market strategy.

Vapi, which is building an infrastructure tool for developers to create AI voice agents, just raised a $20 million Series A from Bessemer.

Inside Vapi's $20 Million Series A Fundraise: The Pitch Deck That Captivated Investors

### Major Investments in Rare Earths

**BMW** and **Yamaha Motor** have made significant investments in **Phoenix Tailings**, a U.S.-based startup focusing on rare earths processing. This move is part of a broader strategy by manufacturers to enhance the production of these strategic metals outside of China.  

### Understanding Rare Earths

Rare earths consist of a group of **17 essential metals** used primarily to create magnets that convert electrical energy into motion, crucial for powering **electric vehicles**, **cell phones**, and various electronics.  

### The Challenge of Current Refinement Methods

The traditional method for refining these minerals, known as **solvent extraction**, is not only costly but also environmentally damaging. This process, developed in the **1950s**, has seen declining popularity in the U.S. as Chinese competitors have mastered it over the last three decades. With recent **export restrictions** from Beijing, there’s a growing urgency in the West to develop alternative technologies.  

### Phoenix Tailings' Innovative Approach

Phoenix Tailings claims to have developed a process that can produce rare earths from both mined ore and recycled materials with **minimal emissions**. Their recent **$43 million Series B funding round**, which closed on **December 20**, has attracted various investors, including venture capital firms like **Envisioning Partners**, **MPower**, and **Escape Velocity**.  

### Future Plans and Growth Potential

The funds will be allocated to construct a **$13 million facility** in Exeter, New Hampshire, with an expected annual production capacity of **200 metric tons** of rare earths by **June 2025**. Additionally, Phoenix has signed supply contracts exceeding **$100 million**. If successful, they plan to expand their processing capabilities across the U.S.  

### Industry Landscape

While **MP Materials** and **Lynas Rare Earths** are among the largest non-Chinese miners and processors, they have faced challenges due to stiff competition from Chinese firms. However, Phoenix believes that its unique model—operating without a mine—positions it well for success. The company is actively seeking **U.S. government loans and grants** to support its growth.  

### The Political Climate

Phoenix's CEO, **Nick Myers**, expressed optimism about the incoming administration under **Donald Trump**, anticipating that it will favor domestic manufacturing and critical mineral companies.  

**Phoenix Tailings** previously closed a **$10 million Series A funding round** in August 2021, setting the stage for its ambitious plans to go public within the next three to five years.

BMW and Yamaha Motor have invested in U.S.-based rare earths processing startup Phoenix Tailings, the latest move by manufacturers to boost production of the strategic metals outside of China.  Rare earths are a group of 17 metals used to make magnets that turn power into motion for electric vehicles, cell phones and other electronics.  Phoenix says its process can produce rare earths from mined ore or recycled equipment with little to no emissions.

Revolutionizing Rare Earths: How BMW and Yamaha are Fueling a US Startup's Green Vision

One of the most important concepts for startup founders to grasp is that despite being in the business of **innovation**, **innovation itself can often be your enemy**. Finding innovation that truly works is challenging, so while you search for it, avoid **reinventing the wheel** in other areas of your business. Here are **9 timeless aphorisms** to inspire your startup journey in 2025.

## 1. Solve a Real Pain Point
Or don’t sell **aspirin to a person without a headache**. Consumers demand solutions that address **tangible problems**. The search for **product-market fit** is crucial for early-stage startup success, as failing to meet market needs is the primary reason startups fail.

## 2. If You’re Not Embarrassed by Your First Release, You Launched Too Late
This quote by **Reid Hoffman** emphasizes the importance of **speed over perfection**. Launching an imperfect **Minimum Viable Product (MVP)** allows you to collect user feedback quickly and iterate.

## 3. Focus is Saying No to a Thousand Good Ideas
**Steve Jobs** highlighted the necessity of **prioritization**. With the distractions of emerging technologies in 2025, it’s vital to narrow your focus to build expertise and deliver superior products.

## 4. What Gets Measured Gets Managed
**Peter Drucker’s aphorism** underscores the significance of **data-driven decision-making**. Startups can leverage advanced analytics to track metrics like **customer acquisition cost (CAC)** to optimize their strategies.

## 5. A Startup is a Temporary Organization Designed to Search for a Repeatable and Scalable Business Model
This definition by **Steve Blank** highlights the **experimental nature** of startups. Utilize tools like **digital twins** to test business models and validate assumptions continuously.

## 6. Build Something People Can’t Live Without
Creating **indispensable products** is key to long-term success. For instance, leveraging AI in 2025 to automate tasks can make your offerings essential.

## 7. Your Brand is What People Say About You When You’re Not in the Room
**Jeff Bezos**’ insight into **reputation** stresses that startups must prioritize branding. Transparency in your practices builds trust and loyalty.

## 8. The Best Way to Predict the Future is to Create It
**Peter Drucker’s aphorism** encourages proactive **innovation**. Startups can shape the future through groundbreaking technology, which can inspire their teams.

## 9. Culture Eats Strategy for Breakfast
In 2025, maintaining a strong **company culture** is crucial, especially in remote work environments. Startups that foster collaboration and inclusivity are more resilient.

![Startup Success](https://specials-images.forbesimg.com/imageserve/6773f7d58d3d4d52948aa06e/Read-about-9-timeless-startup-aphorisms-to-inspire-you-on-your-startup-journey-in/960x0.jpg?fit=scale)

Read about 9 timeless startup aphorisms to inspire you on your startup journey in 2025. 

Are Startups Losing Ground to Tech Giants? Uncovering New Niches for Innovation

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Unlocking Startup Success: 9 Timeless Aphorisms for 2025