Josh Kerr

With RL techniques like GRPO, it’s become easy to fine-tune small models to outperform foundation models on vertical tasks. We’re open sourcing Osmosis-Apply-1.7B: a small model that merges code (similar to Cursor’s instant apply) better than foundation models. Links in comments! Using foundation models for high specificity, low complexity tasks like code merging can be overkill - instead, it’s better to use a specialized model instead for higher performance and latency. We fine-tuned the model on 100K real-world code commits where the model needs to merge a code edit snippet into an original code snippet. On the test dataset (subset of CommitPackFT), foundation model performance ranged between 0.77-0.93 reward score. In comparison, Osmosis-Apply-1.7B achieved a 0.98 reward score - while also being 3X-5X more affordable than the next cheaper model AND ~10X faster! Why this matters: the best AI agents use multiple models to ensure task specialization and reliability at scale - on top of cost and latency benefits as well. Links to the model and full write-up (with reward function, hyperparameters, etc.) are in the comments - reach out if you’re interested in using reinforcement learning!

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Weather delays. Compliance gaps. Lost days and lost dollars. Every contractor knows the pain. Pavewise, based in North Dakota and built by operators who’ve lived it, has just raised a $2.5M seed round led by C2 Ventures Fund II, alongside Connetic Ventures, Service Provider Capital, M25, gener8tor 1889, and Broadwater Capital. Their platform brings real-time compliance, weather, and production tracking to road construction, helping crews make better calls, cut rework, and keep projects on time. This is exactly what we mean when we talk about our thesis, Dirty, Dull, and Dangerous innovation: solving real operational problems in essential industries with durable tech. https://lnkd.in/eecPMHdN

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AI isn't just powering software. BrightAI just raised $51 million to automate inspection and other hardware-based AI capabilities. As Alexa von Tobel, co-founder of Inspired Capital put it: “So many people are so focused on the future of digital AI, but we’re excited about this new layer of AI: the physical world AI.” We are in the early innings of a series of AI-fueled innovations! https://lnkd.in/enhmafvH

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Check out the latest funding news from across the Techstars portfolio. → Zipline (Techstars 2011), a drone delivery and logistics startup, raises more than $600M in new funding, boosting its valuation to $7.6B, as it expands commercial deployments. → Language learning startup Preply (Techstars 2015) raises $150M and becomes the 23rd known unicorn from Techstars accelerators. → Hydrosat (Techstars 2019) raises $60M in Series B funding → Tive (Techstars 2017) receives a $20M investment, valuing the shipment-tracking systems developer at slightly more than $500M. → Parambil (Techstars 2023) raises an additional $6M in seed funding ($8M to date). → Seasats (Techstars 2021) receives $24M in Department of War APFIT funding to accelerate the fielding of its autonomous surface vessels. → Hawaiian Airlines’ newly announced $600M Kahuʻewai Hawai‘i Investment Plan features a strategic investment in Ampaire (Techstars 2018) to support hybrid-electric aviation in the islands. → Fintalo (Techstars 2025) secures $500K+ in oversubscribed Pre-Seed funding. → PraxisPro (Techstars 2024) closes an oversubscribed $6M seed round. → Samara Aerospace (Techstars 2024) closes $10M seed round to help bring more stability to sats in orbit. → MyARC (Techstars 2022), a platform that enables fitness creators to train their communities at scale, secures £1.5M investment. Massive congratulations to these incredible portfolio companies!   🔗  Read more at https://lnkd.in/dxtCTvrg 

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Drove along the Bay Bridge with Shaun Johnson, Founding Partner at AIX Ventures ($250M AUM), backing deep technical founders building category-defining AI companies from day zero. We talked about growing up in Texas selling refurbished computer parts, why he left CS for electrical engineering after a summer at Intel, and how building six startups before business school gave him the operator lens that now shapes his investing. We also got into AI’s leap from software to robotics, the case for humanoid form factors, and why AIX is betting big on TechBio, where AI-native companies are launching with 10+ therapies, skipping animal trials, and patenting proprietary wet-lab data.

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🚀 Every.io partners with Capital Factory The Texas startup ecosystem is thriving, and I'm excited to announce Every.io's partnership with Capital Factory to support their growing community of entrepreneurs. Through this collaboration: - Every's back office platform integrates with multiple CF's incubation programs. - We'll be bringing workshops, office hours, and constant founder back-office support. - Our team will support the CF community at upcoming events. - We will reduce the barrier of entry and provide special offers on formation, banking, payroll, accounting, taxes, and much more. These founders need the back-office infrastructure that scales with them. Want to learn more about what we offer? Chat with us here: https://lnkd.in/ggjPP43x Looking forward to supporting thousands of companies annually across Capital Factory's communities. #CapitalFactory #TexasStartups #Austin #BuildWithEvery

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Last week's musings. You'll notice some reoccuring themes... 𝟭. 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗮𝗹 𝗿𝗼𝗯𝗼𝘁𝗶𝗰𝘀/𝗱𝗮𝘁𝗮 𝗳𝗼𝗿 𝗥𝗟 🍇 (𝗿𝗲𝗾𝘂𝗲𝘀𝘁 𝘁𝗼 𝗷𝗮𝗺)  -recurring idea i've been mulling -robotics is happening particularly in industrial setting  -still lots of problems, but the revolution is happening and there are  work arounds until the tech is really there -prices in theory are highest they will ever be (impact of tariffs?) -folks looking for pre-training data, but eventually will also need fine tuned data -what data fidelity is good enough? 𝟮. 𝗧𝗿𝗮𝗻𝘀𝗗𝗶𝗴𝗺 𝗮𝘀 𝗶𝗻𝗰𝗿𝗲𝗱𝗶𝗯𝗹𝗲 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 + 𝗲𝘅𝗽𝗹𝗼𝗿𝗶𝗻𝗴 𝗵𝗮𝗿𝗱 𝘁𝗲𝗰𝗵 🍇  -it's an absolute monster, $75B market cap and up 300% over the last 5 years. - aircraft parts, 90% proprietary but high margin - killer aftermarket business  - how many software biz have lifetime value of 50 years?! -has lots of things software investors look for (sticky revenue, high margin, defensibility in GTM and unique flywheel, focus, etc.)  -makes me think way more about hard tech viability 𝟯. 𝗧𝗿𝘂𝗲 𝗳𝗼𝗰𝘂𝘀 - from Neil Shah on Invest Like the Best - incredible listen - few people have maniacal focus and it's so important for founders 𝟰. 𝗦𝗽𝗲𝗿𝗺 𝗥𝗮𝗰𝗶𝗻𝗴 -WTF  𝟱. 𝗖𝗼𝗿𝗹𝗲𝗼 𝘁𝗵𝗲 𝗥𝗼𝗯𝗼𝘁 𝗛𝗼𝗿𝘀𝗲 -Kawasaki released prototype and it's wild! Substack for full thoughts: https://lnkd.in/gzNtkEHk

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America cannot power its next century with the same grid it relied on last century.    This is very good news for the right energy founders. The increasing complexity of the grid financially, technically, and physically creates opportunities for cutting-edge software companies to break out, meet the moment, and build huge businesses.     Below are sixteen top startups leading the new energy economy from the front lines, divided into three broad categories.    -Utility Data: Arcadia, UtilityAPI, Bayou Energy, and Deck   -B2B Data and Simulation: Pearl Street Technologies, Texture, Bidgely, Halcyon, Innowatts, and Leap   -Electrification and Rebates: Commonweal portfolio company Pearl Edison (shoutout to Evan and Jake), 257, Sealed, Eli Technologies, Rock Rabbit, and David Energy   These three categories share the DNA of using software in novel ways to disrupt the traditional ways business was done in energy, whether by making siloed utility data more easily accessible to the long list of stakeholders who need it, by giving the long tail of energy companies ways to communicate and operate more productively, or by bringing powerful analysis to the residential level as America electrifies and policymakers roll out complex rebate programs. #AmTech   These startups have raised capital from the best climate and generalist investors including:   Aligned Climate Capital , Pear VC, Powerhouse Ventures, F2 Venture Capital, Cathay Innovation, Union Square Ventures, Keyframe, Equal Ventures, BoxGroup, Fifth Wall, Greycroft, MCJ, Voyager Ventures, New System Ventures, Abstract Ventures Inc., Lerer Hippeau, J.P. Morgan, Valor Equity Partners, Energy Impact Partners   This is part one in a series on #AmTech leaders shaping the future of the grid.    #AmTech #MeetTheMoment

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