
"Company Breakdowns"
If you want to make bets about the future, you have to understand the why behind a startup’s success. Company Breakdowns from Turpentine is a deep dive with influential tech insiders like Tomasz Tunguz, Alex Clayton, CJ Gustafson, and Tanay Jaipuria, hosted by Erik Torenberg. We’ll be breaking down a particular company's strengths, such as its products or services, growing customer base, business model, and potential for market penetration and domination. Special episodes will dissect S-1 filings. Companies covered this season include: Reddit, Rubrik, Databricks and more. Company Breakdowns is a podcast from Turpentine. Learn more: turpentine.co
Latest episodes

Jun 10, 2025 • 50min
Footprint: AI, Biometrics, and the Battle Against Identity Theft with Eli Wachs
In this episode of Company Breakdowns, host Lorenzo Bartolini and Footprint Co-founder and CEO Eli Wachs discuss the complex landscape of digital identity verification and fraud prevention. Wachs explains how his company addresses the growing sophistication of identity fraud through "portable identity" infrastructure, enabling secure user onboarding for financial services.
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SPONSOR: NETSUITE | SHOPIFY | ADQUICK
NetSuite
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Shopify
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RECOMMENDED PODCAST:
Check out Modern Relationships, where Erik Torenberg interviews tech power couples and leading thinkers to explore how ambitious people actually make partnerships work. Founders Fund's Delian Asparouhov and researcher Nadia Asparouhova kick off the series with an unfiltered conversation about their relationship evolution.
Apple: https://podcasts.apple.com/us/podcast/id1786227593
Spotify: https://open.spotify.com/show/5hJzs0gDg6lRT6r10mdpVg
YouTube: https://www.youtube.com/@ModernRelationshipsPod
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LINKS:
Footprint: https://www.onefootprint.com/
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X:
@lozo_the_bozo (Lorenzo)
@EliWachs (Eli)
@turpentinemedia (Turpentine)
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KEY HIGHLIGHTS:
42 million US adults were victims of identity fraud in 2023 - that's 1 in 5 people, with $30-50 billion lost annually
AI is exponentially worsening fraud by enabling sophisticated synthetic identities and deepfakes
Most current identity verification is fundamentally flawed - companies blindly send data through APIs without observing user behavior
Footprint's "portable identity" approach treats fraud as a math problem: instead of finding every fraudster, detect when two people claim the same identity
Former Macau mafia now operates sophisticated fraud networks from the Laos-Myanmar-Thai border, targeting Americans through "pig farming" operations
The identity verification market is worth $700 million with room for multiple public companies
Synthetic identity fraud accounts for 20% of credit losses at some lenders and is the fastest-growing fraud type
Fraudsters have significant advantages: no red tape, no bureaucracy, and fraud is their full-time job
Early customers won't question your trustworthiness - they believe in your vision so deeply they don't think to ask
Contrarian startup advice: win on price early, be willing to act as a "dev shop" for large customers, and measure success by customer testimonials
The Power Broker hiring rule: automatically hire any frontend engineer who has read the 1,600-page book about urban planner Robert Moses
Network effects will determine winners - first company to 150 million portable identities gains major advantage
"If you live in America, your identity's been leaked" - focus should be on detection and mitigation, not prevention
Best identity protection remains surprisingly analog: passkeys, two-factor authentication, and verification through trusted channels

Mar 5, 2025 • 1h 11min
Delta: America's Premium Airline with Gary Leff
In this episode of Company Breakdowns, host Lorenzo Bartolini sit down with Gary Leff, aviation expert and writer of View from the Wing. Gary shares invaluable insights on Delta Airlines' 100-year transformation from a crop dusting operation to America's premium carrier.
The conversation explores how Delta disrupted the traditional airline model through strategic airport slot acquisitions, turning maintenance into a profit center, and building an exceptional loyalty program that generates billions in high-margin revenue. They discuss how Delta created lasting competitive advantages in one of travel's most challenging industries.
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SPONSOR: NETSUITE | SAFEBASE
Over 41,000 businesses trust NetSuite by Oracle, the #1 cloud ERP, to future-proof their operations. Whether you're earning millions or hundreds of millions, NetSuite empowers you to tackle challenges and seize opportunities. Download the free CFO's guide to AI and machine learning at https://netsuite.com/zen.
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RECOMMENDED PODCAST:
Check out Modern Relationships, where Erik Torenberg interviews tech power couples and leading thinkers to explore how ambitious people actually make partnerships work. Founders Fund's Delian Asparouhov and researcher Nadia Asparouhova kick off the series with an unfiltered conversation about their relationship evolution.
Apple: https://podcasts.apple.com/us/podcast/id1786227593
Spotify: https://open.spotify.com/show/5hJzs0gDg6lRT6r10mdpVg
YouTube: https://www.youtube.com/@ModernRelationshipsPod
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LINKS:
View from the Wing: https://viewfromthewing.com/
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X:
@lozo_the_bozo (Lorenzo)
@garyleff (Gary)
@turpentinemedia (Turpentine)
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HIGHLIGHTS:
Delta's Strategic Advantages
Airport Infrastructure: Secured valuable slots and gates in capacity-constrained airports
Made strategic deals with US Airways for LaGuardia slots, trading their DC slots plus cash
Methodically built their New York presence through various deals, including taking United's JFK slots
Created a moat through infrastructure that competitors can't easily replicate
Maintenance Excellence:
Transformed maintenance from a cost center to a profit center
Does maintenance work for other carriers
Uses older aircraft efficiently and maintains them well, saving capital costs
Employee Relations:
Pays employees better than competitors despite being largely non-union
Outsources more than competitors to control costs
Brand and Premium Positioning:
Successfully sells first-class seats (87% occupied by paying customers including upgrades)
Effectively uses data and personalized pricing
Has built a strong presence in high-spending markets like New York and LA
Loyalty Program and Revenue Diversification
SkyMiles generates approximately $7 billion in revenue with 39% operating margins
Loyalty program was valued high enough that Delta raised $6.5-10 billion in debt against it during the pandemic
Using free inflight internet to drive loyalty program enrollment and credit card marketing
International Strategy
Owns stakes in airlines worldwide: Virgin Atlantic (49%), Korean Air, Air France, China Eastern
Strategic global presence provides growth opportunities beyond the mature US market
Future Outlook
Potential disruption from new aircraft technologies (electric, vertical takeoff)
Possibility of new revenue streams like inflight gambling
Success will depend largely on the regulatory environment

Nov 20, 2024 • 48min
Ramp: Fastest Growing SaaS Startup Ever | Eric Glyman and Jack Altman
In this engaging discussion, Eric Glyman, CEO of Ramp, shares his journey as a second-time founder in the fast-paced SaaS landscape. He delves into the transition from first to second-time entrepreneurship, emphasizing lessons learned and the importance of hiring the right talent. The conversation reveals how Ramp disrupted the corporate card industry by focusing on helping companies save money. Glyman also highlights the rise of New York as a tech hub post-COVID, showcasing its emerging innovation and talent pool.

Nov 13, 2024 • 1h 2min
Hims & Hers: Unparalleled Efficiency
William McDougall, an expert in engineering and technology consulting, shares fascinating insights into Hims & Hers' innovative business model. They discuss how the company disrupts traditional healthcare through a direct-to-consumer approach and its use of technology to streamline services. From subscription models to telehealth transformations, McDougall highlights the challenges and opportunities in the healthcare landscape. The conversation sheds light on effective marketing strategies and the importance of cost-effective solutions for better patient access.

12 snips
Aug 21, 2024 • 52min
Modal Labs
Erik Bernhardsson, founder and CEO of Modal Labs, shares insights on scaling a cloud service that offers serverless GPU solutions essential for AI and machine learning. He discusses innovative resource management strategies to optimize costs and enhance developer experiences. Erik dives into the challenges of creating a custom runtime and keeping pace with traffic demands. He also reflects on his tech journey, shaped by his experiences at Spotify, and emphasizes the importance of intuitive onboarding and fostering skilled hires in a competitive market.

6 snips
Jun 26, 2024 • 45min
Databricks Deep Dive with Tomasz Tunguz: AI, Data Catalogs, and Compute
In this episode, Erik Torenberg chats with Tomasz Tunguz about Databricks, AI impact, data catalogs, and future data trends. They discuss Databricks' growth, competition, AI development, unstructured data handling, and strategic business decisions. The conversation also covers the importance of data control, AI workload support, market dynamics, and potential growth of AI companies like Databricks in the public market.

Jun 13, 2024 • 57min
Quilter with Benchmark's Eric Vishria, Sergiy Nesterenko, and Nathan Labenz
Today we're diving into Quilter, which just raised a $10M Series A, to get a deeper understanding of venture capital's investments into AI-assisted hard tech problems. Eric Vishria, General Partner at Benchmark, and Sergiy Nesterenko, Founder and CEO of Quilter, join Nathan Labenz to discuss Quilter's groundbreaking use of reinforcement learning to automate integrated circuit board designs. They delve into the importance of thinking beyond 'co-pilots' to fully automated AI solutions, and explore the balance of research and engineering in the AI space.🔥 Apply to join over 400 founders and Execs in the Turpentine Network: https://hmplogxqz0y.typeform.com/to/JCkphVqj--RECOMMENDED PODCAST:🎙️ This Won't Last - Eavesdrop on Keith Rabois, Kevin Ryan, Logan Bartlett, and Zach Weinberg's monthly backchannel. They unpack their hottest takes on the future of tech, business, venture, investing, and politics.Apple Podcasts: https://podcasts.apple.com/us/podcast/id1765665937Spotify: https://open.spotify.com/show/2HwSNeVLL1MXy0RjFPyOSzYouTube: https://www.youtube.com/@ThisWontLastpodcast--SPONSOR: BABBEL | BRAVE🌐 Ready to achieve your 2024 goals? Start learning a new language with Babbel. Enjoy app lessons, live classes, and podcasts designed for real-world conversations. Get up to 60% off at Babbel.com/torenberg🚀 The tech world turns to the Brave browser for a private ad platform that respects user privacy. Brave Ads offers first-party targeting, and it’s been cookieless since day one. Join the future of advertising at https://brave.com/ads. Mention “Turpentine” when signing up for a 25% discount on your first campaign.--LINKS:https://www.quilter.ai/https://benchmark.com/The Cognitive Revolution podcast: https://www.cognitiverevolution.ai/--TIMESTAMPS:(00:30) Introduction (01:07) Eric's Investment Thesis(03:00) The "AI and Done" Approach(06:50) Diverging from Large Language Models(09:15) The "Idea Maze" Framework(11:54) Disruptive Innovation(12:47) Sponsor: Brave | Babbel(15:09) Exploring the Data Landscape(16:18) Data Limitations and Reinforcement Learning(18:00) Overcoming the Sparse Reward Problem(19:10) Human Heuristics and Intermediate Rewards(21:06) Extrapolation vs. Interpolation(24:37) Trusting the Reward Signal in Circuit Board Design(25:46) Physics as an Unambiguous Oracle(27:05) User-Defined Search Depthbility to adjust the search depth and iteration of the system, enabling flexibility based on design complexity and optimization goals.(29:39) Compute Allocation(31:47) Different Physics Simulation Techniques(33:31) The Diffusion Model Approach(36:00) Advantages of Reinforcement Learning(38:00) Timeline and Bottlenecks(39:37) Unsolvable Problems and Gradual Progress(41:58) The Future of Circuit Board Design(43:29) Benchmark Portfolio(45:00) Challenges and Opportunities in Each Category(51:00) The Gap Between Research and Engineering(53:00) Call for Startups(54:06) Wrap

May 29, 2024 • 60min
Stripe's Unbundling Strategy and AI's Impact on Education with Byrne Hobart [The Riff]
Writer-investor Byrne Hobart and Erik Torenberg discuss AI's impact on education, Stripe's unbundling strategy, 24-hour markets, Meta's AI involvement, TikTok's data practices, and revenue diversification. They delve into personalized learning, homeschooling, ad-supported models, and the evolving AI landscape.

May 22, 2024 • 43min
Twilio: Behind the IPO with Lee Kirkpatrick and CJ Gustafson
Former Twilio CFO Lee Kirkpatrick discusses the IPO journey, strategic pricing, navigating the IPO process, qualities of a great CFO, lessons in ego management, and amusing anecdotes on company expense culture in this insightful podcast.

May 15, 2024 • 58min
Copart: Growth Beyond Salvage with Drew Cohen
In this episode of 'Company Breakdowns', Drew Cohen from Speedwell Research joins Erik to delve into the intricacies of Copart's business, a leading tech company in the salvage vehicle marketplace. Dive into Copart's impressive financial performance, including high ROIC, consistent growth, and a strong balance sheet.🔥 Apply to join over 400 founders and Execs in the Turpentine Network: https://hmplogxqz0y.typeform.com/to/JCkphVqjSubscribe to this season of Company Breakdowns for analysis of Reddit, Databricks, and more! Subscribe to Company Breakdowns' newsletter: https://company-breakdowns.beehiiv.com/Company Breakdowns is a part of the Turpentine podcast network. Learn more: www.turpentine.co--RECOMMENDED PODCAST:🎙️ Second Opinion - A new podcast for health-tech insiders from Christina Farr of the Second Opinion newsletter. Join Christina Farr, Luba Greenwood, and Ash Zenooz every week as they challenge industry experts with tough questions about the best bets in health-tech.Apple Podcasts: https://podcasts.apple.com/us/podcast/id1759267211Spotify: https://open.spotify.com/show/0A8NwQE976s32zdBbZw6bv--RECOMMENDED PODCAST: TURPENTINE VCInvestor Erik Torenberg interviews partners at the top VCs in the world to learn their approach to the art and science of building a successful venture firm.Apple: https://podcasts.apple.com/us/podcast/id1701006772Spotify: https://open.spotify.com/show/3Yb8ErLRnyoAqn4Y6NegTx--SPONSOR:The tech world turns to the Brave browser for a private ad platform that respects user privacy. Brave Ads offers first-party targeting, and it’s been cookieless since day one. Join the future of advertising at https://brave.com/ads. Mention “Turpentine” when signing up for a 25% discount on your first campaign.--LINKS:Newsletter: https://www.speedwellmemos.com/The Synopsis Podcast:Spotify: https://open.spotify.com/show/3lGqHRKHd7t5LIpKc8f7Li--FOLLOW ON X:@eriktorenberg (Erik)@Speedwell_LLC@turpentinemedia (Turpentine)--TIMESTAMPS:(00:00) Intro (00:28) Drew Cohen and Speedwell Research(03:03) Unpacking Copart's Business Model and Market Position(06:58) The Founding Story of Copart and Its Evolution(14:59) Strategic Growth and Capital Allocation at Copart(17:11) Sponsor: Brave(20:38) Aligning Business Models with Incentives for Success(26:08) Coping with Catastrophes: Copart's Operational Excellence(29:48) Diversification Beyond North America and Salvage(32:18) International Expansion: Challenges and Opportunities(39:04) The Complexities of Entering the Salvage Vehicle Market(43:33) The Future of Copart in the Age of Autonomous Vehicles(46:53) Financial Insights and Copart's Business Model(49:59) Weighing the Bull and Bear Cases for Copart(55:40) Final Thoughts and the Price Valuation Discussion(57:01) Wrap