Compliance Startup Scandal... Is Delve Guilty? | E2266

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Mar 24, 2026

Guest

Elizabeth Yin, Hustle Fund GP and early-stage investor, talks about how AI is reshaping startup teams, founder expectations, and venture math. Ryan Mahdavi, Ceel CEO in automated compliance, digs into the Delve controversy, trust, and diligence gaps. Seg Sheng, Brick CEO building AI energy tech, shares how hardware and software can cut power bills. Gavin Zaentz, LeadPoet co-founder, demos decentralized lead gen on Bittensor.

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ADVICE

Be Exact About Customers Or Risk Securities Fraud

Separate customers, users, and pipeline with exact wording when fundraising, because fuzzy language can become securities fraud.
Jason Calacanis gave examples like listing pilots as customers or meeting contacts as employees, while Elizabeth Yin said even one misclassified customer claim can kill an investment.

INSIGHT

Hot Deals Push Investors Into Diligence By Proxy

Big investors still miss fraud when they rely on hot-round momentum and other firms' diligence instead of testing the product themselves.
Jason Calacanis linked Delve to FTX-style pressure tactics where founders cite oversubscribed rounds and reputation to rush investors past verification.

INSIGHT

A Ten Minute Demo Could Have Exposed Delve

Ryan Mahdavi said Delve's warning signs were visible months earlier because a short demo exposed missing features behind aggressive AI-native claims.
He described the product as "screenshot native rather than AI native" and paired that with heavy donut and doormat growth tactics.

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Today’s show:

Hustle Fund general partner Elizabeth Yin joined Jason and Alex to discuss how rapid advances in AI have changed the venture capital game, and how the same AI updates are changing how founders build. Founders may need less capital than before, which could reduce their reliance on venture dollars over time.

Ceel founder Ryan Mahdavi joined next to help Jason and Alex dig into the Delve story. Well-funded Delve was publicly criticized for allegedly overselling their compliance tool’s capabilities and not being honest with customers. Delve has responded to the allegations, though Mahdavi said that he had his doubts about the competing startup even before the news story broke.

Next, TWiST invited Brick founder Seg Sheng on to explain his startup’s plan to use a combination of physical hardware and artificial intelligence to help buildings and data centers reduce their energy bills. Given how much juice the AI era demands, Brick could be onto something big.

And to close out the show, Gavin Zaentz and Pranav Ramesh from LeadPoet (Bittensor Subnet 71) to show off their technology (the pair put in motion a lead hunt for Brick while on-air). It’s a packed show with something for everyone. Let’s go!

Timestamps:

0:00 Intro

1:18 Plaud: If your work depends on conversations — interviews, meetings, calls — you need a Plaud NotePin. You can check it out at https://Plaud.ai/twist and use code TWIST for 10% off!

3:45 Elizabeth Yin from Hustle Fund on how AI tools have changed her workflow

9:21 How founders use AI to learn how to suck less

10:34 Sentry - New users can get $240 in free credits when they go to https://sentry.io/twist and use the code TWIST

13:17 Ryan Mahdavi from Ceel joins to explain the Delve SOC 2 scandal

18:39 Is Silicon Valley's "bend the rules" culture at fault?

20:38 Red and pink flags, and how investors can spot potential fraud

21:41 LinkedIn Jobs - Hire right, the first time. Post your first job and get $100 off towards your job post at https://LinkedIn.com/twist

23:45 How to not do securities fraud: a simple guide

26:50 Ryan asks: How did the company get through diligence?

31:03 Northwest Registered Agent — Get more when you start your business with Northwest. In 10 clicks and 10 minutes, you can form your company and walk away with a real business identity — Learn more at https://northwestregisteredagent.com/twist

32:25 Were there early warning signs about issues with Delve?

33:26 On Delve's use of tactical donuts

36:55 What about the Delve board? If there is one?

45:24 Seb Sheng stops by to tell us about how Brick Data saves companies massively on energy costs

49:38 Who are Brick's customers and how much are they paying?

54:16 Lightning Round: A quick history of Brick

56:02 Why Jason is so bullish on $TAO

56:45 Ro.co: Ro's insurance checker will let you know if your coverage includes GLP-1s for FREE. Go to https://Ro.co/Twist for your free insurance check.

1:06:35 How do LeadPoet's "miners" track down the best leads?

1:13:09 How Bittensor subnets map to traditional startup forms

1:17:15 How can agents build up authority if they can't get hired for their first job?

1:21:03 Jason: "I think the game of Bitcoin has ended…"

1:23:22 Why Jason likes to place a bet, then learn

1:24:16 The inherent risks in crypto investment

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