Former DOGE Officials Launch AI-Focused Startup With Backing From Andreessen Horowitz
Former Department of Government Efficiency (DOGE) members Nate Cavanaugh and Justin Fox have launched a startup called Special, backed by venture capital firm a16z and other former DOGE associates, to apply efficiency principles to private sector industries. The company plans to acquire and operate businesses in sectors like senior care, construction, and manufacturing using an AI-powered operating system. The venture represents a transition of DOGE's government efficiency model to the private sector, with initial focus on identifying and eliminating waste in regulated industries.
Nate Cavanaugh and Justin Fox, who led efforts at multiple government agencies during their time with the Department of Government Efficiency, have founded Special, a holding company backed by Marc Andreessen's a16z venture capital firm and several other former DOGE members and tech figures. The startup aims to build an operating system to transform American industries through AI and vertical integration, beginning with senior care through a subsidiary called FigureHealth. According to the founders, they plan to expand into labor-intensive, highly regulated sectors including construction and manufacturing, applying lessons learned from their government efficiency work. The venture's pitch emphasizes identifying and eliminating waste in state-level businesses that receive taxpayer funding, citing examples from Minnesota childcare centers and California hospice businesses. Funding participants include Steve Davis (Elon Musk's coordinator for DOGE operations), Antonio Gracias, Baris Akis, and executives from Coinbase and Palantir, among others. During their DOGE tenure, Cavanaugh and Fox were involved in controversial actions including the takeover of the US Institute of Peace and the National Labor Relations Board.
What's missing
The article does not provide details on Special's specific business model beyond vertical integration and acquisition strategy, the size of the funding round, or concrete metrics the company plans to use to measure efficiency improvements in the private sector.
What different sources said
- WiredLeft
The DOGE Boys Get VC Funding to Support Their Latest Enterprise
- The AtlanticLeft
The Second Act of the DOGE Bro
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