## From Drug Lord to Crypto Entrepreneur: Ex-Silk Road Boss Now Fights Fraud

Blake Benthall, the former leader of the notorious online drug marketplace Silk Road 2.0, has traded his criminal past for a new career in the cryptocurrency industry. After serving his sentence, Benthall now runs Fathom(x), a startup dedicated to helping businesses and government agencies track digital currency transactions and ensure legal compliance.

**A surprising turn of events:** Benthall's journey from running a multi-million dollar drug operation to becoming a compliance expert is a fascinating one. He now uses his experience to combat the very type of illicit activity he was once involved in.

**The power of redemption:** Benthall's story is a testament to the possibility of redemption and second chances. While his past is undeniably dark, he's now committed to using his knowledge to create a safer and more secure cryptocurrency landscape.

**Fathom(x)'s mission:** Benthall's startup, Fathom(x), aims to provide businesses and governments with the tools they need to navigate the complex world of cryptocurrency compliance. The company's software helps identify potential fraud and ensure that transactions are legal and transparent.

**From criminal to compliance:** Benthall's shift from criminal mastermind to compliance expert is a remarkable story. He has become a key player in the effort to make the cryptocurrency industry more secure and trustworthy.

After Blake Benthall was arrested for running Silk Road 2.0, the infamous illegal drug bazaar, things didn’t go the way you might expect.

From Drug Lord to Crypto Entrepreneur: Ex-Silk Road Boss Now Fights Fraud

### The USS Bonhomme Richard Incident
In the summer of 2020, a **devastating fire** broke out on the USS Bonhomme Richard, a naval ship docked in San Diego Bay. For over four days, the ship was engulfed in flames as firefighters and helicopters struggled to control the blaze. **Lidar (Light Detection and Ranging)** scans were quickly taken to assess the damage and investigate the fire's cause.

### The Challenge of Sharing Lidar Data
Unfortunately, the investigation faced delays due to the **difficulty of sharing massive lidar files**. Leading cloud storage services like **Google Drive, DropBox, iCloud, and OneDrive** don't support these large files, which can sometimes reach multiple terabytes. As a result, the naval unit had to send thumb drives and Blu-ray discs with the scans to authorities across the country.

### The Birth of Stitch3D
This challenge inspired **Clark Yuan**, a U.S. Army veteran, to create **Stitch3D**. This innovative **browser-based platform** allows users to view, share, annotate, and manage large 3D files. Each file is stored as a **“point cloud,”** a digital representation of a 3D scene made up of millions of points with x, y, and z coordinates. If Stitch3D had been available during the USS Bonhomme Richard incident, sharing the lidar scans would have been significantly easier.

### A Solid Foundation
Yuan, who has experience working with lidar systems, recognized the inefficiencies in transmitting these files during his service. The U.S. military considers lidar scans crucial for preparing accurate maps and equipment for missions. **Lidar technology** enables the creation of 3D mappings by measuring the time it takes for light beams to bounce back from surfaces, providing detailed information about terrain that 2D images cannot.

![Stitch3D 3D Viewer](https://techcrunch.com/wp-content/uploads/2024/10/Stitch3D-3D-Viewer.jpg?w=680)
*Source: Stitch3D*

### Funding and Future Applications
Stitch3D has secured a **$1.8 million grant from the Air Force** to develop its technology securely, along with a **$750,000 pre-seed round** from friends and family. The Air Force intends to use it for measuring coastal erosion and assessing damage to airfields.

However, Yuan envisions a broader application for Stitch3D beyond military use. In a demonstration with TechCrunch, he showcased how the platform could allow users to navigate detailed 3D maps of college campuses, measure dimensions, and annotate areas with notes and colors.

![Stitch3D Analyze](https://techcrunch.com/wp-content/uploads/2024/10/Stitch3D-Analyze.jpg?w=680)
*Source: Stitch3D*

### Expanding Horizons
Yuan believes Stitch3D could benefit various industries that utilize lidar, including **forestry, mining, architecture, land surveying, and oil drilling.** There’s also potential for integration with **augmented reality (AR)**, allowing users to create interactive scans using the lidar sensor on their phones. While this technology is still developing, Yuan is optimistic about its future possibilities.

In the summer of 2020, a fire broke out onboard a naval ship docked in San Diego Bay. For more than four days, the USS Bonhomme Richard burned as

From Naval Disaster to Startup Success: How a Veteran is Revolutionizing 3D File Sharing

### Sierra's Impressive Growth

**Sierra**, the innovative AI startup co-founded by former Salesforce co-CEO **Bret Taylor**, has recently achieved a remarkable **$4.5 billion valuation** following a new funding round, significantly up from its previous **$1 billion valuation** in January. The startup successfully raised **$175 million**, led by **Greenoaks Capital**.

![Bret Taylor at Viva Technology Conference](https://image.cnbcfm.com/api/v1/image/108045968-17285664491728566444-36608438686-1080pnbcnews.jpg?v=1728566447&w=750&h=422&vtcrop=y)

### Background of the Founders

Bret Taylor, who also serves as the **chairman of OpenAI's board**, has a notable history in the tech industry, having co-led Salesforce alongside **Marc Benioff**. Taylor's entrepreneurial journey includes significant contributions to **Google Maps**. His co-founder, **Clay Bavor**, brings nearly two decades of experience from **Google**, where he led efforts in **virtual reality** and **Google Labs**.

### Sierra's Mission and Innovations

Sierra focuses on empowering enterprises, including notable clients like **ADT**, **Sonos**, **Weight Watchers**, and **Casper**, by personalizing and integrating **AI agents** for customer service. In a recent interview, Taylor emphasized their vision: **"We think every company in the world can benefit from AI, and the technology is ready right now."**

### Unique Approach to AI

Describing Sierra as **"conversational AI,"** Taylor differentiates it from traditional chatbots, aiming for a more **empathetic and engaging** interaction. The company allows clients to customize their AI agents' personalities to align with their **corporate branding**. For instance, **Chubbies** chose a sarcastic tone for their agent, while luxury brands prefer a more serious British accent.

### Technology Behind Sierra

Sierra employs a **constellation of AI models** to enhance interaction quality. This system uses a primary model for core tasks, complemented by additional models to ensure **accuracy** and reliability. Currently, they leverage large language models from **OpenAI**, **Anthropic**, and **Meta**.

### Competitive Landscape

The AI agent market is becoming increasingly competitive, with major players like **Salesforce** and **Microsoft** exploring similar avenues. Taylor likens Sierra's journey to companies that capitalized on **cloud software** developments, believing Sierra is well-positioned as a leader in AI-driven customer service solutions.

### AI Investment Trends

Sierra's recent funding aligns with a broader trend in Silicon Valley, where **one in three venture dollars** this year has been allocated to AI startups. Taylor remarked on the significance of this technology wave, stating, **“Clearly customer experience and customer service is a huge opportunity.”**

Sierra, the startup founded by ex-Salesforce co-CEO Bret Taylor, has raised a fresh round of capital that values the company at $4.5 billion. 

Bret Taylor’s Sierra Startup Soars to $4.5 Billion Valuation with New Funding Round

Universal Music Group (UMG) has formed a **strategic partnership** with the AI company **KLAY Vision Inc.** to create an innovative ethical model for **AI-generated music** that aligns with the music industry and its creators. The collaboration was announced on **October 28**, just days after UMG’s **Sir Lucian Grainge** was recognized as one of the most powerful figures in AI by Business Insider.

### What is KLAY Developing?
While specific details about KLAY's projects remain under wraps, the company has hinted at developing a **Large Music Model (KLayMM)** aimed at enhancing music AI capabilities. They are also working on a **global ecosystem** for AI-driven experiences that will respect artists’ catalogs, ensuring they do not compete with traditional music services.

### Exciting Future Ahead
KLAY is currently in **stealth mode** but plans to unveil a product soon that promises to **revolutionize music experiences**. Michael Nash, UMG's Executive Vice President, expressed excitement about this partnership, emphasizing the need for **ethical solutions** for artists while advancing **generative AI technology**.

### Insights from KLAY's Leadership
KLAY’s founder, **Ary Attie**, highlighted the importance of engaging with culture to ensure that AI music becomes a vital part of daily life rather than a fleeting trend. He believes the next generation of great artists will emerge from their collaboration with KLAY.

### Notable Team Members
KLAY's leadership includes:
- **Thomas Hesse**, former President of Sony Music, known for pioneering tech-driven innovations.
- **Matt Avent**, ex-Tech Lead of the SAMI initiative at TikTok's parent company, ByteDance.
- **Björn Winckler**, who will soon join as Head of Research from Google’s AI lab, DeepMind.

### UMG's Broader AI Strategy
This partnership is part of UMG’s broader strategy involving various collaborations with **AI developers** to enhance both backend functions and music creation. Recent partnerships include:
- An **AI incubator** with YouTube.
- A collaboration with **ProRata.ai** to ensure accurate revenue sharing for AI platforms.
- A strategic relationship with **BandLab** and a deal with **Endel** for creating artist-driven functional music.

Earlier this year, UMG also partnered with **SoundLabs** to provide artists with access to an AI vocal plugin, leading to the first AI-driven release of a Spanish version of Brenda Lee’s classic holiday hit.

### Recognition in the Industry
Sir Lucian Grainge’s recognition as a leading figure in AI underscores UMG's commitment to innovation and the protection of artists’ rights amid the evolving landscape of generative AI.

The announcement comes a week after Business Insider named UMG’s Sir Lucian Grainge one of the most powerful people in AI.

Universal Music's Game-Changing Partnership with AI Startup KLAY: What to Expect

## Armis Raises $200 Million in Series D Funding

**Armis Security**, a leader in the cybersecurity space, has successfully completed a **$200 million** Series D funding round, elevating its valuation to **$4.3 billion**—a remarkable increase of **$900 million** since its last funding round less than three years ago. This funding round was led by **General Catalyst** and **Alkeon Capital**, with participation from existing investors such as **Brookfield** and **Georgian**, along with notable backers including **Insight Partners**, **CapitalG**, and **One Equity Partners**.

![Armis co-founders](https://pic1.calcalist.co.il/picserver3/crop_images/2024/08/06/rJnuC515C/rJnuC515C_0_0_3000_2000_0_x-large.jpg)

## Company Overview

Founded by **Yevgeny Dibrov** (CEO) and **Nadir Izrael** (CTO), Armis currently employs around **750 people** globally, including teams in Israel. The company boasts an impressive client roster that includes **United Airlines**, **Colgate-Palmolive**, and **Mondelez**, the parent company of well-known brands like **Oreo**, **Milka**, and **Toblerone**. The **Armis platform** is pivotal for businesses as it enables them to monitor, secure, and manage their critical assets, which range from IT and OT systems to medical devices and cloud infrastructure.

## Recent Achievements

This latest funding comes on the heels of Armis announcing that it has surpassed **$200 million** in **annual recurring revenue (ARR)**. The company has also made headlines with two strategic acquisitions in 2024: **Silk Security** and **CTCI**. Armis is now setting its sights on an **IPO**, with key milestones including reaching **$500 million** in ARR on its ambitious path towards **$1 billion** and beyond.

## Acquisition Highlights

- In April, Armis acquired **Silk Security** for **$150 million**. Silk specializes in sustainable cyber risk resolution and raised **$12.5 million** in Seed funding last August.
- Earlier this year, Armis purchased **CTCI (Cyber Threat Cognitive Intelligence)** for approximately **$20 million**, a company known for its AI-driven pre-attack threat hunting technology.

Armis previously raised **$300 million** at a **$3.4 billion** valuation in November 2021, bringing its total funding to **$600 million** after its acquisition by **Insight Partners** and **Google's Capital G** for **$1.1 billion** in January 2020.

Cybersecurity leader Armis secures new funding led by General Catalyst and Alkeon Capital, setting sights on $500M ARR milestone. 

Armis Secures $200M Funding, Eyes $500M ARR and IPO Aspirations!

Now that we have **numerous startups** offering AI bots capable of transcribing meetings, taking notes, and surfacing insights, differentiation has become crucial. **Read AI** is stepping up by integrating its AI bot with platforms like **email**, **Slack**, and enterprise tools such as **Hubspot**, **Jira**, and **Confluence**. To expedite product development, the startup recently raised **$50 million** in a **Series B funding round** led by **Smash Capital**, just six months after securing **$21 million in Series A funding**.

### Strong Demand and Rapid Growth
Co-founder **David Shim** revealed that the company has experienced **remarkable customer growth**, with over **100,000 new accounts** created among enterprises and individual users. Shim stated, "In less than six months, we’ve doubled our sign-ups, active users, and monthly recurring revenue, surpassing even our most aggressive projections."

### Product Evolution
Earlier this year, Read AI began supporting integrations with **email, messages, and meeting apps**. The company has now released a **Chrome extension** that showcases schedules, meeting reports, and insights from meetings. This extension can:
- Highlight key points from lengthy email threads.
- Generate email drafts based on previous conversations.
- Offer quick notes from meetings or Slack messages relevant to ongoing email threads.

![Email Draft Example](https://techcrunch.com/wp-content/uploads/2024/10/Read-AI_Email-Draft.jpeg)

The Chrome extension is offered for **free** as part of the company's strategy to develop and scale its products. Shim emphasized that their goal is to provide summaries and recommendations across various platforms.

### Future Outlook
With plans to expand its staff from **40 to 100 employees** by the end of Q1 2025, Read AI aims to maintain its lead in the **meeting notes** space while exploring broader opportunities. **Smash Capital**'s **Brad Twohig** sees potential in Read AI's model, stating that while meeting transcription services are becoming commonplace, Read AI's comprehensive approach can lead to a sustainable business model.

![Email Summary Example](https://techcrunch.com/wp-content/uploads/2024/10/Read-AI_Email-Summary.jpeg)  
The Series B round also included participation from existing investors **Madrona** and **Goodwater Capital**.

Now that we have so many startups offering AI bots that can do everything from listening to your meetings and transcribing them, to taking notes and

Read AI Secures $50M to Revolutionize AI Summarization Tools for Businesses

## Reflexivity's Major Funding Round
A startup looking to **transform how investors and traders use data** just received funding from some of the biggest names in the hedge fund world. Reflexivity, formerly known as Toggle AI, **recently raised $30 million in Series B funding**. This round was led by **Interactive Brokers and Greycroft**, with participation from notable investors like **Stanley Druckenmiller** and **Greg Coffey**.

![Reflexivity Cofounders](https://i.insider.com/671bc4089b3250dbbcea24fa?width=700)
*Reflexivity cofounders Jan Szilagyi and Giuseppe Sette.*

## What Reflexivity Does
Reflexivity was founded by two former hedge fund traders who understood the **challenges of managing disparate data sets** to gain an investing edge. The startup's platform combines **third-party data** from a dozen providers, including **S&P Global**, and proprietary internal information to offer comprehensive analysis, flagging how world events can impact portfolios.

> "When you are an investor inside a major hedge fund, one big fear that is always present is that you are going to miss something," says cofounder and CEO **Jan Szilagyi**.

The company estimates a potential market of **$16.4 billion** and currently serves around **20 institutional clients**, including major banks and hedge funds.

## How Reflexivity Works
Reflexivity's platform allows stock-picking investors to analyze data covering about **40,000 securities**. It alerts clients, primarily discretionary investors at hedge funds and asset managers, about market events and their potential impacts. For instance, if treasury yields rise, Reflexivity flags related stocks in user portfolios.

The platform employs a **proprietary knowledge graph** and a **generative AI-powered user interface** to enhance decision-making.

> Szilagyi emphasizes the importance of accuracy in finance, noting Reflexivity's **closed system** approach to AI, which prevents it from generating misleading information. 

With a valuation between **$115 million and $150 million**, Reflexivity is recognized as one of the **up-and-coming fintechs** in 2023, aiming to reshape how hedge funds approach data analysis.

## Reflexivity's Pitch Deck
The startup's **pitch deck** used for its funding round serves as a testament to its innovative approach in the fintech space, showcasing its potential to disrupt traditional methods used by hedge funds and institutional investors.

![Pitch Deck](https://i.insider.com/671aa6d8a0a0cc14f223c07b?width=600)  
*Pitch deck that Reflexivity, formerly Toggle AI, used for its $30 million Series B.*

The startup has signed on ExodusPoint, Soros Fund, and Millennium Management, whose founder Izzy Englander also invested in a past round.

From Drug Lord to Crypto Entrepreneur: Ex-Silk Road Boss Now Fights Fraud

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