Borderless founders, Apple EU fees, and ARR in AI deals
International founders are building their own networks first
International founders who crack Silicon Valley tend to cluster. They find others who made the same journey, back each other, and share deal flow. These communities have a practical edge: they know the strongest engineers in their home markets before the broader talent market catches on. They can also land early customers from large companies back home, which gives them proof points that speed up the next raise.
The a16z piece on borderless founders goes deep on how these networks operate and why having a foot in two markets is a structural advantage, not just a nice origin story.
Apple’s EU App Store rates change October 1
Apple published new App Store terms for the European Union, effective October 1. Agreements can be signed now. Here is the breakdown:
- Standard in-app purchase commission: 26%, or 15% for qualifying developers
- Alternative payment processing: 20%, or 10% for eligible program members
- Apps distributed outside the App Store: 5% Core Technology Commission on digital transactions, plus notarization required
- For the first time, a single app can offer both Apple in-app purchase and alternative payments simultaneously
- Once a payment option is selected, it stays locked in for 12 months
If you distribute iOS apps to EU users, review the terms now. The 12-month lock-in on payment option selection means the choice you make at signing carries real consequences.
ARR won’t tell you if an AI acquisition is worth the price
A post making the rounds argues that buying an AI company based on ARR and growth rate alone is a mistake. Because many AI products are wrappers on top of third-party models, strong revenue numbers can mask fragility. The recommended diligence checklist: score the target on model dependency, data moat, talent concentration, and substitution risk. Premium valuations need defensible proprietary technology underneath them, not just a clean ARR chart.
Lovable hit $10M ARR in 60 days, and the brand was prototyped on 30 machines
Lovable launched in late 2024 and reached $10 million in annual recurring revenue within 60 days. The visual identity was prototyped across 30 machines. The First Round write-up covers how Lovable’s first designer built a brand identity over two and a half years, and what it actually takes to translate a feeling into a design brief.
Why the next fundraise is harder than the last
The math behind fundraising rounds rarely gets explained plainly. An accelerator writing checks at $330K to $2.5M post-money only needs a $33M to $250M exit to work. A seed at $5M to $10M post-money requires the investor to believe in a $500M to $1B outcome. A Series A investor is underwriting a path to roughly $100M in annual revenue, which is why $1M ARR does not move them. Dilution compounds to 50% or more by exit. The post names three escape valves, including customer-funded growth and capital structures that don’t require a 100x return.
I’m founder of BizStack at Cagri Sarigoz LLC and a passionate advocate for entrepreneurs.
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