STARTUP X
The F42 brief #029
Here’s your Monday dose of The F42 Brief.
📈 Trending Now
The one thing that’s making all the noise …. with a bit of fact checking.
💸 New Funds looking to give you cash
The Raise Report
💡Innovator Spotlight
Founders that are doing stuff differently.
🛠️ Tool of the Week
Something useful to up your startups velocity.
📌 Note to Self
Stuff I constantly remind myself about, don’t want make the same mistakes again.
📈 Trending Now
AI Agents Flop in the Wild
Carnegie Mellon ran a bold experiment: they built a fake company staffed entirely by AI agents. The goal? See if these bots could actually handle real-world work. The result? A spectacular failure.
Tasks went unfinished. Emails were ignored. Agents made up shortcuts, misunderstood simple instructions, and struggled with anything that needed basic common sense. Even the best models only completed a fraction of tasks — most barely scraped 10%.
It’s a reality check. Agents are promising, yes — but far from ready to replace humans. For now, they’re more intern than executive: helpful at times, but absolutely not ready to run the show solo.
The smart play? Train your teams to work with AI, not against it. Cyborgs, not robots.
💸 New Funds looking to give you cash
Look out for the The Raise Report this wednesday, bring you all the new funds that have raised capital and looking to deploy.
Coming up at GSA this week.
Keep the momentum going:
Full event calendar: https://lu.ma/Fusion-42
(And yes, the 100 Challenge is still running — keep sharing your updates!)
Your feedback is invaluable to us. Please take a moment to share your thoughts on Week 1 by completing our short survey
💡Innovator Spotlight
Industry Shifts
• VCs are now using AI not just to invest in AI, but to transform their own operations. Nearly 76% of VCs use AI for automating daily tasks, and over 60% use it for deal sourcing and company research, up significantly from last year.
• Investor focus is shifting from generic AI-powered SaaS to platforms with deep data moats, proprietary datasets, and infrastructure that directly addresses VC pain points (e.g., workflow automation, compute efficiency, and fund administration).
• Applied AI for VC is moving beyond hype: Investors are prioritizing tools that deliver measurable productivity gains and real-world impact for fund managers and startups alike.
The most relevant AI innovations for the VC/startup ecosystem this week are not headline-grabbing billion-dollar raises, but rather the rapid adoption and evolution of specialized AI platforms like Decile Hub, Affinity, and TechScout. These tools are fundamentally changing how VCs source deals, evaluate startups, manage LPs, and run their funds-delivering efficiency, insight, and competitive edge to the venture ecosystem.
If you have not joined the Fusion42 Community on Telegram — A space for Founders, Framers, and Funders who show up to get **it done,
it is probably time to do so.
For the ❤️ of Startups
🛠️ Tools of the Week.
AI Companies Doing Legal Work for Startups
Several emerging companies are building AI-powered platforms specifically to help startups manage legal tasks-making it easier, faster, and more affordable to handle contracts, compliance, fundraising documents, and more. Here are some of the most notable young companies in this space:
1. Cimphony
What it does: Cimphony is a modern law firm built for startups, using AI agents to deliver fast, affordable, and always-available legal services. Their platform handles everything from incorporation and IP protection to employment contracts, equity management, and regulatory compliance. They also help with fundraising paperwork (SAFE, convertible notes, Series A) at a fraction of traditional legal costs.
Why it stands out: AI-driven document generation, 24/7 automated legal agents, transparent pricing, and tailored compliance for startups in multiple jurisdictions.
2. Genie AI
What it does: Genie AI empowers startups to draft, review, and manage contracts quickly, reducing legal costs and time-to-market. Their tools cover everything from NDAs and IP agreements to employment contracts and equity documents. Genie AI also provides expert-crafted templates and AI-assisted drafting, with features for real-time collaboration and compliance tracking.
Why it stands out: Focused on startups, flexible pricing, and strong support for fundraising and equity management documents.
3. LegalFly
What it does: LegalFly automates repetitive legal tasks for startups, helping teams save time on document review, contract drafting, and compliance. Their AI platform is designed to streamline legal workflows and reduce reliance on expensive law firms.
Why it stands out: Built by former AI leads at Tinder, LegalFly is focused on making legal automation accessible to early-stage companies.
4. Lawrina
What it does: Lawrina offers an AI-driven tool (Loio) for streamlined contract drafting and review, plus a comprehensive library of legal document templates. The platform helps startups and legal professionals navigate U.S. law efficiently and provides accessible legal guides.
Why it stands out: Combines AI-powered drafting with a searchable directory of attorneys and extensive template library.
5. Robin AI
What it does: Robin AI uses machine learning to draft, review, and negotiate contracts, making legal work faster and less expensive for startups and small businesses.
Why it stands out: AI-enhanced contract negotiation and risk assessment, helping startups close deals faster and with more confidence.
If you’re stuck with legal work as a founder, these companies offer AI-driven solutions to handle everything from basic contracts to complex compliance and fundraising paperwork-helping you save time, reduce costs, and focus on growing your startup.
📌 Note to Self
Thank you for reading. If you liked it, share it with your friends, colleagues and everyone interested in the startup Investor ecosystem.
If you've got suggestions, an article, research, your tech stack, or a job listing you want featured, just let me know! I'm keen to include it in the upcoming edition.
Please let me know what you think of it, love a feedback loop 🙏🏼
🛑 Get a different job.
Subscribe below and follow me on LinkedIn or Twitter to never miss an update.
For the ❤️ of startups
✌🏼 & 💙
Derek
Seth Godin said the same today “When the investment committee is unanimous, it’s unlikely that the idea is a brilliant one.
Significant division and strong opinions (and widespread skepticism) don’t cause great ideas, but they’re often present when they arrive.”