StarZero All shows Try the podcast clipper →

Sep 26, 2020 · 27m · top-founders

MyCroft Raises $5m to Ship Home Speaker Echo Competitor That Doesnt' Suck In Data

Michael Lewis · 16m spoken Nathan Latka · 7m spoken Frank Bien · 4s spoken Eric Yuan · 4s spoken Vivek Bhaskaran · 2s spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this interview, Mycroft.ai leader Michael Lewis discusses the company's strategy to build a privacy-first, open-source alternative to Amazon Echo, detailing their Mark II smart speaker rollout, capitalization, and freemium platform business model.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 29.6% of the talking time here. How this is scored →

Nathan as informed peer 6.2 Guest teaching 4.7 Guest disagreement 3.5 Nathan pushing back 6.2
05100:0010:0020:001:37–6:10 · Nathan as informed peer 4/10 Michael Lewis's Entrepreneurial Background and Joining Mycroft Latka establishes baseline facts about Michael's background, Mycroft's mission, and hardware economics. He probes whether the offering is hardware or an SDK, which Lewis clarifies smoothly.6:11–10:29 · Nathan as informed peer 6/10 Funding Structure, Cap Table Complexity, and Institutional Capital Latka drills into the cap table risk of having 1,500+ crowdfunding backers and $2M in debt when seeking institutional VC. Lewis explains the use of dual-class non-voting shares and SPV restructuring.10:30–13:43 · Nathan as informed peer 6/10 Addressing Past Bottlenecks and Focusing on Product Delivery Latka directly confronts Lewis on how investors could be happy after four years with zero shipments and pre-revenue status. Lewis acknowledges past fundraising pitfalls and clarifies his operational role alongside founder Josh.13:43–16:39 · Nathan as informed peer 7/10 Software Platform Strategy and Retail Distribution Partnerships Latka highlights the structural disadvantage Mycroft faces against Amazon, which can distribute hardware at zero margin to monetize downstream data. Lewis responds by outlining white-label OEM partnerships and retail interest.16:41–22:40 · Nathan as informed peer 8/10 Debate on Privacy Market Demand and Big Tech Competition A heated philosophical debate where Latka asserts consumers will happily forfeit privacy for tangible discounts and delivery speed. Lewis pushes back vigorously, citing an unaddressed 30% privacy-conscious market and comparing big tech monopolies to historical cable TV lock-in.22:44–26:01 · Nathan as informed peer 6/10 Freemium Business Model and Execution Track Record When Latka points out that gaming freemium models rely on massive existing user bases that Mycroft lacks, Lewis aggressively cites his track record of launching successful semiconductor and gaming products to prove execution capability.1:37–6:10 · Guest teaching 3/10 Michael Lewis's Entrepreneurial Background and Joining Mycroft Latka establishes baseline facts about Michael's background, Mycroft's mission, and hardware economics. He probes whether the offering is hardware or an SDK, which Lewis clarifies smoothly.6:11–10:29 · Guest teaching 4/10 Funding Structure, Cap Table Complexity, and Institutional Capital Latka drills into the cap table risk of having 1,500+ crowdfunding backers and $2M in debt when seeking institutional VC. Lewis explains the use of dual-class non-voting shares and SPV restructuring.10:30–13:43 · Guest teaching 5/10 Addressing Past Bottlenecks and Focusing on Product Delivery Latka directly confronts Lewis on how investors could be happy after four years with zero shipments and pre-revenue status. Lewis acknowledges past fundraising pitfalls and clarifies his operational role alongside founder Josh.13:43–16:39 · Guest teaching 4/10 Software Platform Strategy and Retail Distribution Partnerships Latka highlights the structural disadvantage Mycroft faces against Amazon, which can distribute hardware at zero margin to monetize downstream data. Lewis responds by outlining white-label OEM partnerships and retail interest.16:41–22:40 · Guest teaching 6/10 Debate on Privacy Market Demand and Big Tech Competition A heated philosophical debate where Latka asserts consumers will happily forfeit privacy for tangible discounts and delivery speed. Lewis pushes back vigorously, citing an unaddressed 30% privacy-conscious market and comparing big tech monopolies to historical cable TV lock-in.22:44–26:01 · Guest teaching 6/10 Freemium Business Model and Execution Track Record When Latka points out that gaming freemium models rely on massive existing user bases that Mycroft lacks, Lewis aggressively cites his track record of launching successful semiconductor and gaming products to prove execution capability.1:37–6:10 · Guest disagreement 1/10 Michael Lewis's Entrepreneurial Background and Joining Mycroft Latka establishes baseline facts about Michael's background, Mycroft's mission, and hardware economics. He probes whether the offering is hardware or an SDK, which Lewis clarifies smoothly.6:11–10:29 · Guest disagreement 2/10 Funding Structure, Cap Table Complexity, and Institutional Capital Latka drills into the cap table risk of having 1,500+ crowdfunding backers and $2M in debt when seeking institutional VC. Lewis explains the use of dual-class non-voting shares and SPV restructuring.10:30–13:43 · Guest disagreement 3/10 Addressing Past Bottlenecks and Focusing on Product Delivery Latka directly confronts Lewis on how investors could be happy after four years with zero shipments and pre-revenue status. Lewis acknowledges past fundraising pitfalls and clarifies his operational role alongside founder Josh.13:43–16:39 · Guest disagreement 3/10 Software Platform Strategy and Retail Distribution Partnerships Latka highlights the structural disadvantage Mycroft faces against Amazon, which can distribute hardware at zero margin to monetize downstream data. Lewis responds by outlining white-label OEM partnerships and retail interest.16:41–22:40 · Guest disagreement 7/10 Debate on Privacy Market Demand and Big Tech Competition A heated philosophical debate where Latka asserts consumers will happily forfeit privacy for tangible discounts and delivery speed. Lewis pushes back vigorously, citing an unaddressed 30% privacy-conscious market and comparing big tech monopolies to historical cable TV lock-in.22:44–26:01 · Guest disagreement 5/10 Freemium Business Model and Execution Track Record When Latka points out that gaming freemium models rely on massive existing user bases that Mycroft lacks, Lewis aggressively cites his track record of launching successful semiconductor and gaming products to prove execution capability.1:37–6:10 · Nathan pushing back 3/10 Michael Lewis's Entrepreneurial Background and Joining Mycroft Latka establishes baseline facts about Michael's background, Mycroft's mission, and hardware economics. He probes whether the offering is hardware or an SDK, which Lewis clarifies smoothly.6:11–10:29 · Nathan pushing back 6/10 Funding Structure, Cap Table Complexity, and Institutional Capital Latka drills into the cap table risk of having 1,500+ crowdfunding backers and $2M in debt when seeking institutional VC. Lewis explains the use of dual-class non-voting shares and SPV restructuring.10:30–13:43 · Nathan pushing back 7/10 Addressing Past Bottlenecks and Focusing on Product Delivery Latka directly confronts Lewis on how investors could be happy after four years with zero shipments and pre-revenue status. Lewis acknowledges past fundraising pitfalls and clarifies his operational role alongside founder Josh.13:43–16:39 · Nathan pushing back 7/10 Software Platform Strategy and Retail Distribution Partnerships Latka highlights the structural disadvantage Mycroft faces against Amazon, which can distribute hardware at zero margin to monetize downstream data. Lewis responds by outlining white-label OEM partnerships and retail interest.16:41–22:40 · Nathan pushing back 8/10 Debate on Privacy Market Demand and Big Tech Competition A heated philosophical debate where Latka asserts consumers will happily forfeit privacy for tangible discounts and delivery speed. Lewis pushes back vigorously, citing an unaddressed 30% privacy-conscious market and comparing big tech monopolies to historical cable TV lock-in.22:44–26:01 · Nathan pushing back 6/10 Freemium Business Model and Execution Track Record When Latka points out that gaming freemium models rely on massive existing user bases that Mycroft lacks, Lewis aggressively cites his track record of launching successful semiconductor and gaming products to prove execution capability.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 59% · guest 41%0:00 · Nathan 59% · guest 41%3:00 · Nathan 12.7% · guest 87.3%3:00 · Nathan 12.7% · guest 87.3%6:00 · Nathan 22.3% · guest 77.7%6:00 · Nathan 22.3% · guest 77.7%9:00 · Nathan 25.2% · guest 74.8%9:00 · Nathan 25.2% · guest 74.8%12:00 · Nathan 8.5% · guest 91.5%12:00 · Nathan 8.5% · guest 91.5%15:00 · Nathan 47.1% · guest 52.9%15:00 · Nathan 47.1% · guest 52.9%18:00 · Nathan 19.3% · guest 80.7%18:00 · Nathan 19.3% · guest 80.7%21:00 · Nathan 37.7% · guest 62.3%21:00 · Nathan 37.7% · guest 62.3%24:00 · Nathan 18.9% · guest 81.1%24:00 · Nathan 18.9% · guest 81.1%27:00 · Nathan 95.1% · guest 4.9%27:00 · Nathan 95.1% · guest 4.9%
Sharpest disagreement ▶ 17:06 Lewis Asserts Massive Untapped Privacy TAM

Lewis forcefully dismisses the idea that big tech has captured the market, arguing that 30% of consumers actively reject Amazon and Google on privacy grounds.

 Hardest push from Nathan ▶ 17:48 Latka Mocks 'Lack of Imagination' Framing

Latka directly scoffs at Lewis's assertion, retorting that building a non-data-sucking speaker is hardly equivalent to sending someone to Mars.

 Biggest teaching moment ▶ 9:35 Structuring Crowdfunded Equity for Institutional VCs

Lewis educates Latka on corporate governance mechanics, explaining how non-voting share classes and SPV entity structures insulate future Series A investors from cap table friction.

 Nathan holds their own ▶ 15:03 Latka Breaks Down Big Tech Data Monetization Asymmetry

Latka demonstrates deep domain understanding of hardware unit economics, explaining why a startup with $100 COGS cannot compete with Amazon's loss-leader distribution model.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Michael Lewis's Entrepreneurial Background and Joining Mycroft 4313 Latka establishes baseline facts about Michael's background, Mycroft's mission, and hardware economics. He probes whether the offering is hardware or an SDK, which Lewis clarifies smoothly.
Funding Structure, Cap Table Complexity, and Institutional Capital 6426 Latka drills into the cap table risk of having 1,500+ crowdfunding backers and $2M in debt when seeking institutional VC. Lewis explains the use of dual-class non-voting shares and SPV restructuring.
Addressing Past Bottlenecks and Focusing on Product Delivery 6537 Latka directly confronts Lewis on how investors could be happy after four years with zero shipments and pre-revenue status. Lewis acknowledges past fundraising pitfalls and clarifies his operational role alongside founder Josh.
Software Platform Strategy and Retail Distribution Partnerships 7437 Latka highlights the structural disadvantage Mycroft faces against Amazon, which can distribute hardware at zero margin to monetize downstream data. Lewis responds by outlining white-label OEM partnerships and retail interest.
Debate on Privacy Market Demand and Big Tech Competition 8678 A heated philosophical debate where Latka asserts consumers will happily forfeit privacy for tangible discounts and delivery speed. Lewis pushes back vigorously, citing an unaddressed 30% privacy-conscious market and comparing big tech monopolies to historical cable TV lock-in.
Freemium Business Model and Execution Track Record 6656 When Latka points out that gaming freemium models rely on massive existing user bases that Mycroft lacks, Lewis aggressively cites his track record of launching successful semiconductor and gaming products to prove execution capability.

Statements from this episode (14)

Disclosure
Lewis: Mycroft Plans to Partner with OEMs on Voice Technology
“Down the road, we expect to partner with OEMs to provide our assistant technology in their own devices, including smart speakers”
Michael Lewis Sep 26, 2020 ▶ 4:33
Assertion Not checkable as stated
Lewis: Mycroft Mark II Costs About $100 to Produce
“About a hundred bucks right now.”
Michael Lewis Sep 26, 2020 ▶ 5:54
Prediction Didn’t hold up
Lewis: Mycroft Mark II Won't Ship Until Q2 or Q3 2021
“We're not due to really ship it, I think, until the second or third quarter next year. That's, I think, our realistic timeline.”
Michael Lewis Sep 26, 2020 ▶ 5:59
Assertion Not checkable as stated
Lewis: Mycroft has 50,000 users and is not actively monetizing them
“We have about 50,000 people who are signed up to our system and are using our system, but we are not actively trying to monetize them yet because, quite frankly, the experience isn't where we want it to be.”
Michael Lewis Sep 26, 2020 ▶ 6:22
Assertion Supported
Lewis: Mycroft has raised over $5M without institutional capital
“Mycroft over the last five years has raised over five million dollars in crowdfunding and very favorable loans. But we've never raised an institutional round.”
Michael Lewis Sep 26, 2020 ▶ 6:58
Assertion Partly supported
Lewis: Mycroft cap table includes over 1,500 crowdfunding investors
“We have over 1500 investors because we went through a crowdfunding campaign a couple years back.”
Michael Lewis Sep 26, 2020 ▶ 8:35
Assertion Supported
Lewis: Mycroft crowdfunding investors only hold non-voting shares
“First of all, we have two classes of shares. We have voting shares and non-voting shares. So, All this the cohort of the crowdfunding investors are all non-voting shares.”
Michael Lewis Sep 26, 2020 ▶ 9:37
Disclosure
Lewis has personally bankrolled Mycroft for the past year
“So for the past year, I've basically been bankrolling the company personally myself.”
Michael Lewis Sep 26, 2020 ▶ 12:30
Disclosure
Lewis: Mycroft is almost entirely a software platform play
“No it's almost entirely a software play. What we're really promoting here is a platform. Mycroft is promoting a platform.”
Michael Lewis Sep 26, 2020 ▶ 13:52
Assertion Not checkable as stated
Lewis: Mycroft has held retail talks with Walmart and Target
“We've been in talks with the big you know, the big box retail chains, right? There are people who want to put a privacy respecting solution on their store shelves. You know, we're talking about, you know, Walmart and target and, you know, these companies want …”
Michael Lewis Sep 26, 2020 ▶ 15:52
Assertion Supported
Lewis: 30% of prospective smart speaker buyers abstain over privacy
“The 30% of the people who are interested in buying a smart speaker have not done so because of privacy concerns.”
Michael Lewis Sep 26, 2020 ▶ 17:06
Opinion
Latka: Consumers do not care about privacy if given enough value
“Like if you deliver enough value, people don't care about privacy in my opinion.”
Nathan Latka Sep 26, 2020 ▶ 20:20
Opinion
Lewis: Amazon copies and sells every profitable third-party vendor product
“There's basically no vendor who's worked with Amazon that hasn't been screwed over by them. If Amazon finds a product that is making good money, they copy it and they sell it themselves.”
Michael Lewis Sep 26, 2020 ▶ 22:13
Disclosure
Lewis: Mycroft is free to developers and OEMs, monetizing via consumer upgrades
“It's a completely open source system. It's free to developers. It's free to OEMs to integrate into their system. What we charge is the consumers for basically upgrades.”
Michael Lewis Sep 26, 2020 ▶ 23:09
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 2,600 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.

Try the podcast clipper Learn more