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  1. This Week in Startups
  2. How to Make Billions from Exposing Fraud | E2234
How to Make Billions from Exposing Fraud | E2234

How to Make Billions from Exposing Fraud | E2234

This Week in Startups · Jan 13, 2026

This episode explores Boom Supersonic's origin story and a startup using AI to collect government fraud bounties. Plus, tips on building teams.

A 30% Efficiency Gain Can Make a Failed Technology Economically Viable

Boom Supersonic's founder explains that the Concorde was a commercial failure. However, a mere 30% improvement in fuel economy—achievable with modern materials and aerodynamics—is the key threshold that makes supersonic travel profitable at business-class prices.

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How to Make Billions from Exposing Fraud | E2234

This Week in Startups·a month ago

Monetize Investigative Journalism by Becoming the Whistleblower, Not Selling Ads

The Anti-Fraud Company's model uses the False Claims Act to collect government bounties on uncovered fraud. This provides a direct financial incentive for investigative work, bypassing traditional, broken media revenue models like advertising or subscriptions.

How to Make Billions from Exposing Fraud | E2234 thumbnail

How to Make Billions from Exposing Fraud | E2234

This Week in Startups·a month ago

External Recruiters Elicit More Honest Feedback Than Direct Hiring Managers

Candidates are more likely to be fully transparent with an external recruiter than with a potential employer. The recruiter acts as a trusted intermediary, allowing them to gather honest feedback on compensation, role, and concerns, which is critical for closing top talent.

How to Make Billions from Exposing Fraud | E2234 thumbnail

How to Make Billions from Exposing Fraud | E2234

This Week in Startups·a month ago

Use Litigation Finance to Generate Non-Dilutive Capital for Legally-Focused Startups

Startups with legal claims as assets can sell portions of their cases to litigation finance firms. This provides immediate, non-dilutive capital to fund operations, de-risking the business model while waiting for lengthy legal proceedings to conclude.

How to Make Billions from Exposing Fraud | E2234 thumbnail

How to Make Billions from Exposing Fraud | E2234

This Week in Startups·a month ago

Apply Silicon Valley's "Hacker Ethos" to Accelerate Hardware Development

Boom's founder describes Mojave's aerospace community as "hacking on airplanes" like software. This mindset involves resourceful, rapid, and iterative prototyping, challenging the slow, traditional processes in capital-intensive industries and enabling faster progress with less capital.

How to Make Billions from Exposing Fraud | E2234 thumbnail

How to Make Billions from Exposing Fraud | E2234

This Week in Startups·a month ago

Hire HR Leaders from "Chaos Environments" to Manage Hypergrowth

For startups experiencing hypergrowth, the ideal HR leader has experience not just in growth, but in chaotic, high-stress environments. These individuals, often veterans of companies like early Uber, have the resilience and scar tissue necessary to navigate the inevitable cultural and organizational challenges.

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How to Make Billions from Exposing Fraud | E2234

This Week in Startups·a month ago

AI Unlocks Centuries-Old Economic Incentives by Solving Information Processing Bottlenecks

The 1863 False Claims Act created a financial incentive to report fraud, but its impact was limited by the difficulty of detection. Modern AI solves this information processing bottleneck, finally allowing companies to act on the law's incentive at a massive scale.

How to Make Billions from Exposing Fraud | E2234 thumbnail

How to Make Billions from Exposing Fraud | E2234

This Week in Startups·a month ago

Use Non-Binding Pre-Orders to Finance Capital-Intensive Hardware Startups

Boom Supersonic secured non-binding Letters of Intent (LOIs) from major airlines early. This demonstrated market demand was crucial for convincing suppliers and investors to commit the significant capital needed for development, turning customer interest into a financing tool.

How to Make Billions from Exposing Fraud | E2234 thumbnail

How to Make Billions from Exposing Fraud | E2234

This Week in Startups·a month ago

Attract Top Talent on a Budget by Targeting Mission-Driven, Financially Secure Veterans

Early-stage startups can't win on salary. The ideal hire is a veteran from a top tech company who has already achieved financial security. They are motivated by passion for the mission, not compensation, and are more likely to accept an equity-heavy package.

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How to Make Billions from Exposing Fraud | E2234

This Week in Startups·a month ago

Teach Yourself Industry Fundamentals to Credibly Hire World-Class Experts

Boom's founder, new to aerospace, spent six months studying engineering fundamentals. His goal wasn't to become an expert himself, but to learn enough to effectively judge, recruit, and lead the actual world-class experts he needed to build the company.

How to Make Billions from Exposing Fraud | E2234 thumbnail

How to Make Billions from Exposing Fraud | E2234

This Week in Startups·a month ago

Vet Key Hires by Hosting a "Brain Trust" to Critique Your Company's Strategy

To find its first engineers, Boom invited several top candidates to a multi-day workshop to critique the entire business and technical plan. This "audition" not only generated valuable feedback but also revealed which candidates were the most collaborative and insightful thinkers.

How to Make Billions from Exposing Fraud | E2234 thumbnail

How to Make Billions from Exposing Fraud | E2234

This Week in Startups·a month ago

Frame High-Risk, Long-Cycle Ventures Like Biotech Portfolios to Manage Investor Expectations

The Anti-Fraud Company compares its legal cases to a biotech drug pipeline. Both have long, uncertain timelines but massive potential payouts. This framing helps manage investor expectations for ventures where revenue isn't immediate or predictable, justifying a portfolio strategy.

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How to Make Billions from Exposing Fraud | E2234

This Week in Startups·a month ago

De-Risk Hardware Ventures by Building Sequential, Lower-Cost Prototypes

Instead of building its final passenger jet, Boom first developed a smaller, sub-scale prototype to prove its Mach 2.2 technology. This startup-like, sequential approach proves the core concept at a much lower cost, making the capital-intensive project more manageable and fundable.

How to Make Billions from Exposing Fraud | E2234 thumbnail

How to Make Billions from Exposing Fraud | E2234

This Week in Startups·a month ago