You’re probably watching established startups face pressure from AI disruption and wondering how they’re actually responding. In 2025, four major companies publicly announced “refounding” strategies. We’ve got real implementation data to work with. This case study guide is part of our comprehensive understanding of startup refounding and AI-driven business model transformation, where we examine the strategic frameworks and practical implementation approaches behind this emerging trend.
Airtable, Handshake, Opendoor, and MoneyGram each took different paths. Product-first transformation. Adjacency-driven growth. Software-first pivots. Network-asset leverage. Each case study includes specific financial metrics, leadership decisions, organisational changes, and technical approaches.
What makes these worth examining is they’re navigating the same transformation challenges you might face. They’ve documented timelines, workforce impacts, and measurable outcomes. Let’s dig into what they actually did.
What Does Startup Refounding Actually Mean in Practice?
Refounding is when established startups publicly declare they’re rebuilding their company from first principles. It’s a formal strategic transformation. Understanding what refounding means and the difference from pivots is essential—it emphasises “founding moment” gravity rather than course correction.
Airtable CEO Howie Liu told the NYT the company considered calling it a relaunch or transformation, but ultimately chose “the language of founding because the stakes feel the same”.
Yale research on institutional drift provides the theoretical foundation. Organisations gradually lose their founding character over time through accumulated decisions. Success itself accelerates this drift through expansion complexity and acquisition-related cultural shifts.
Understanding why companies choose “refounding” over other terms reveals their strategic intent. Companies explicitly select this language to signal high stakes and commitment to fundamental change. Handshake’s chief marketing officer Katherine Kelly said the company is trying to bring startup culture “back into an existing business.”
It’s a comprehensive reassessment of goals, culture, and operational frameworks. Usually in response to market shifts. All four case study companies tie refounding to AI integration as the primary catalyst.
Refounding involves simultaneous changes across business model, product architecture, organisational culture, market positioning, and stakeholder communication. That’s a lot at once.
Mature startups possess competitive advantages established companies lack, but they also carry organisational complexity that can impede rapid innovation. Refounding addresses this paradox.
How Did Airtable Approach Product-First Refounding?
In June 2025, Airtable launched this movement by treating AI adoption as a foundational company reset rather than incremental feature development. CEO Howie Liu announced “every software product must be refounded for AI” rather than just adding AI capabilities to existing platforms.
Airtable concluded that AI-native design requires architectural decisions, not just feature additions. Companies that merely bolt AI features onto existing products will lose to AI-native competitors built from the ground up.
The company shifted from a simple project management tool to a comprehensive platform for collaboration and creativity. But the real change was architectural.
What Architectural Changes Did Airtable Prioritise?
Airtable reorganised into two groups following Daniel Kahneman’s thinking model. The fast-thinking team focuses on rapid AI feature experimentation and weekly releases to customers. The slow-thinking team handles foundational infrastructure decisions with longer planning horizons. Database architecture, security frameworks, and platform scalability investments that require months of deliberate planning. These technical architecture patterns demonstrate how companies rebuild data-centric systems for agentic AI.
This dual-speed structure lets them rebuild the collaborative work management platform with AI-native design while maintaining velocity. They’re integrating AI agents into workflow automation. Shifting from user-configured automations to AI-suggested intelligent workflows.
Howie Liu uses AI hourly and is Airtable’s number one inference-cost user globally. That’s leadership by example.
What Were Airtable’s Organisational Changes?
The company restructured its entire engineering organisation around AI-first methodologies. Product design methodology shifted. The cultural change supports a “refounding moment” mentality.
Liu urges PMs, engineers, and designers to play with AI products daily, not just read about them. He calls this becoming an “IC CEO”—leaders who roll up their sleeves and engage directly with building, coding, and experimenting.
The financial results are there. The company achieved over $100 million in free cash flow following its transformation.
The lesson here is when product architecture matters more than business model flexibility, you commit to the rebuild.
What Can We Learn from Handshake’s Adjacency-Driven Refounding?
While Airtable rebuilt product architecture, Handshake took a different path. They leveraged an unexpected business adjacency.
The company, valued at $3.5 billion, announced its refounding in October 2025 built on validated success. They grew an AI business from $0 to $100 million in annualised revenue in eight months.
CEO Garrett Lord’s adjacency-driven approach leveraged existing assets. The company was built on a simple belief: “talent is everywhere, opportunity is not.” They serve 20 million job seekers, 1,600+ universities, and 1 million employers. But they also had a network of 500,000 PhDs and 3 million Master’s degree holders.
When AI labs needed human experts to validate and improve models during post-training, Handshake filled that demand.
The financial validation came first. Current combined ARR hit $200 million. Projected year-end combined ARR: $300 million. The 2026 forecast reaches into the “high hundreds of millions.” The AI business is expected to surpass core recruiting operations by year-end.
That $100 million ARR in a new business line demonstrated product-market fit sufficient to justify company-wide refounding. Lower risk than exploring unproven AI capabilities.
How Did Scale AI’s Acquisition Create Handshake’s Opportunity?
Scale AI pioneered the expert network model for post-training AI models. When Meta partially acquired Scale AI in June 2025, it created market uncertainty.
Handshake entered a competitive landscape that included Mercor, Surge AI, and Turing. They rapidly scaled by leveraging their existing university partnerships and Fortune 100 relationships. All 100 of the Fortune 100 companies already worked with Handshake—American Express, McDonald’s, and Nike.
The timing was perfect. As Lord stated, “There are times in your life when you’re like, ‘Oh gosh we could not be more well-positioned'”. On competitive urgency, he emphasised: “Winners and losers are being defined right now.”
What Were Handshake’s Specific Organisational Changes?
The organisational transformation was substantial. Handshake implemented a 15% workforce reduction, affecting approximately 100 employees from a U.S. staff of 650.
They mandated five-day office weeks with expectations for employees to operate “with a pace and number of hours that is meaningful and will help us hit goals.” The company’s chief marketing officer Katherine Kelly said Handshake is trying to bring startup culture “back into an existing business.” These cultural transformation approaches illustrate the people-side challenges that accompany strategic refounding.
The AI division scaled rapidly. From 15 to 150 employees within months.
Lord acknowledged the difficulty. On employee departures, he said “it really, really sucks”. But he argues complacency risks decline. Without aggressive AI investment, Handshake becomes merely “okay.” Trapped in incremental improvements generating modest quarterly gains.
Board member Mamoon Hamid from Kleiner Perkins initially responded with surprise, noting this “was not on my bingo card”. But the board ultimately supported the direction when they saw the financial validation.
The lesson from Handshake is clear. Leverage existing network assets. Time market gaps. Validate the adjacency before full refounding.
How Did Opendoor Execute Software-First Refounding with Leadership Transition?
Opendoor took a third approach. In Q3 2025, new CEO Kaz Nejatian announced, “We are refounding Opendoor as a software and AI company.”
The timing matters. Leadership transition coincided with strategic refounding. Nejatian brought a software-first philosophy focused on profitability over growth-at-all-costs. He stated: “In my first month as CEO, we’ve made a decisive break from the past—returning to the office, eliminating reliance on consultants, and launching over a dozen AI-powered products and features that demonstrate our renewed velocity.”
This represents a business model transformation. Previously, Opendoor’s model required purchasing homes with company capital. Millions of dollars tied up per transaction. The software-first refounding prioritises technology platform and AI capabilities over real estate transaction volume.
The strategic goal centres on a path to profitability through margin improvement and operational efficiency rather than market share expansion.
What Does “Software-First” Mean for Real Estate Technology?
The shift moves from transaction-based to platform-based revenue. AI integration handles property valuation and market analysis. Capital intensity reduces through partner networks. Technology infrastructure becomes the primary business asset.
Nejatian continued: “Our business will succeed by building technology that makes selling, buying, and owning a home easier and more joyful—not from charging high spreads and hoping the macro saves us”.
The company set three management objectives. First, transact with more sellers. More volume means more revenue from transactions and ancillary services, plus better leverage of cost base. Second, improve unit economics and resale velocity. Speed and profitability per transaction determine whether they build a sustainable business or remain vulnerable to macro swings. Third, build operating leverage. Scale transactions faster than fixed costs so each additional home adds profit. These margin improvement strategies align with the broader shift toward sustainable unit economics in AI-first companies.
By the end of next year, Opendoor aims to drive to breakeven on a 12-month go-forward basis.
How Does Leadership Transition Affect Refounding Strategy?
New leadership brings fresh strategic perspective. Nejatian avoided founder attachment to the original business model. Board alignment on profitability priorities created space for transformation.
The cultural changes under new leadership were immediate. Return to office. Cutting consultants. Rapid product launches. These signal a different operating mode.
Q3 2025 financials showed the current state: revenue $915 million, gross profit $66 million (7.2% margin), homes sold 2,568, homes purchased 1,169.
The lesson from Opendoor is combining leadership changes with strategic refounding can work when capital efficiency drives the transformation.
What Lessons Does MoneyGram’s Network-Led Fintech Transformation Offer?
The first three cases examined startup-to-startup refounding. MoneyGram demonstrates how companies with decades of legacy operations can apply the same framework.
Founded in 1940, the company has undergone transformation since going private in 2023. Evolving from a traditional remittances-focused player into a fintech company built around its global payments network.
The network-led transformation strategy uses MoneyGram’s global payment infrastructure as foundation for fintech services rather than building from scratch.
CEO Anthony Soohoo articulates the strategic pivot: “Remittances was the old way to think about the business, now the network is our business. You have really limitless possibilities for how you think about it”.
The financial validation is there. Digital transactions now represent one-third of total volume, up from less than half in 2022. Cross-border volume increased approximately 8% since privatisation.
How Did MoneyGram Integrate Stablecoin Technology?
Stablecoin integration represents core technical innovation. Blockchain-based digital payments enable low-cost cross-border transactions using existing network relationships.
The company navigated regulatory requirements for cryptocurrency payments. Integrating blockchain with legacy systems. Integrating blockchain technology into an 80+ year old infrastructure required navigating decades of accumulated technical decisions, compliance frameworks, and partner integrations.
The transformation represents a fundamental reconceptualisation of MoneyGram’s business model, positioning its global network as the foundation for diverse financial services opportunities.
What Is “Network-Led” Refounding Strategy?
Network-led refounding means leveraging existing infrastructure as transformation foundation. For MoneyGram, this meant identifying the global payment network accumulated over decades as their core asset. They converted established relationships with banks, regulators, and partners from remittance liabilities into fintech advantages. The balancing act involved maintaining legacy operations while gradually building new digital capabilities on top of that foundation.
MoneyGram’s refounding initiative emphasises digital-first capabilities. Network expansion and leverage. Stablecoin integration strategies. Artificial intelligence implementation. Market repositioning beyond traditional money transfer services.
The lesson from MoneyGram is legacy companies can refound successfully. Network assets provide transformation advantages. A phased digitisation approach works. Established trust and compliance matter.
What Are the Common Success Patterns Across These Four Case Studies?
Each company’s AI approach varies—from product features to operational efficiency—but the catalyst remains consistent. Airtable focuses on product features. Handshake saw business opportunities. Opendoor and MoneyGram emphasise operational efficiency.
Each case study demonstrates strategic asset leverage. Airtable had its product platform. Handshake and MoneyGram had network relationships. Opendoor had market position.
Public announcement strategy proves important. Formal declarations to stakeholders signal commitment. Attract talent. Reposition market perception. Create accountability pressure. TechCrunch and The New York Times reported on this phenomenon as a notable and growing startup trend in December 2025.
Organisational culture transformation appears universal. Whether return-to-office mandates at Handshake, leadership changes at Opendoor, or institutional renewal at Airtable, cultural reset accompanies strategic shifts.
Financial validation precedes or validates refounding. Handshake’s $100 million ARR proof. MoneyGram’s 33% digital transactions. Opendoor’s path-to-profitability focus. Airtable’s $100 million in free cash flow. These demonstrate measurable traction.
Investors appear to view these announcements as necessary adaptations to technological disruption rather than indicators of organisational distress. Refounding demonstrates adaptability, which investors increasingly favour.
What can you take from these patterns? First, refounding works best when built on existing strengths rather than completely abandoning your foundation. Second, financial metrics matter. Validation either precedes the announcement (Handshake) or guides the transformation (Opendoor’s profitability focus). Third, expect cultural resistance and plan for it. The decision frameworks and criteria can help you systematically evaluate which approach suits your circumstances.
What Distinguishes These Four Refounding Approaches?
Product-first refounding at Airtable treats architecture as competitive advantage. Adjacency-driven at Handshake uses validated new business to justify refounding. Leadership-transition at Opendoor enables fresh perspective for strategic shift. Network-asset at MoneyGram treats legacy infrastructure as digital foundation.
Each approach fits different circumstances. Product-first works when architectural decisions matter most. Adjacency-driven reduces risk by validating the new business first. Leadership-transition creates space for change without founder attachment. Network-asset leverages what you already have.
What Risks Did These Companies Accept?
Workforce disruption creates potential talent loss. Handshake’s layoffs and return-to-office mandate illustrate this. Customer confusion during positioning changes is real. Execution risk matters because committing publicly creates accountability pressure. Investor sentiment needs management during transformation uncertainty.
The timing consideration matters too. Why did 2025 become the refounding year? AI reached a point where established companies felt competitive pressure. The technology matured enough to enable real transformation. Market conditions created space for bold moves.
What Implementation Challenges Emerge from These Examples?
Workforce resistance and cultural friction emerged as universal challenges across all four companies. Handshake’s layoffs and return-to-office mandate illustrate the difficult people decisions these companies made.
Research shows return-to-office mandates create significant retention risks. Companies implementing RTO policies experience 13% higher annual turnover, with 46% of hybrid workers indicating they would quit if forced back full-time. Stanford economist Nick Bloom notes: “You’re going to get negative selection. The ones who leave are the ones that can pull an outside offer, who are the better employees”.
Technical execution complexity varied by approach. Airtable’s architectural rebuilding differs from MoneyGram’s legacy system integration. These require different engineering capabilities and timelines.
Timeline ambiguity persists across case studies. Most refoundings were announced in 2025, with outcomes still developing. This creates planning challenges for companies considering similar transformations. How long does transformation take? Six months? Two years? Five years? We don’t have complete answers yet.
Market validation timing creates a chicken-egg problem. Handshake validated its adjacency before refounding with $100 million ARR. But Airtable and Opendoor committed to refounding before full validation. Which approach is right depends on your risk tolerance and competitive situation.
Communication complexity spans multiple stakeholder groups. Employees need different messaging than investors. Customers have different concerns than media. Each group requires tailored messages about transformation rationale and expected outcomes.
What People Challenges Did These Companies Face?
Employee morale during transformation announcements takes a hit. Talent retention versus intentional workforce restructuring creates tension. Do you want to keep everyone or is the reduction intentional?
Research shows companies that issued return-to-office mandates saw decreases in employee satisfaction scores. 80% of organisations globally admit they’ve lost talent due to return-to-office mandates.
Maintaining productivity during uncertainty requires clear communication and short-term milestones. Leadership credibility and trust maintenance matters.
What Technical Execution Lessons Emerge?
Architectural rebuilding versus incremental enhancement was Airtable’s key decision. Legacy system integration challenges mark MoneyGram’s experience. Maintaining service continuity during transformation is non-negotiable.
Resource allocation creates tension between new capabilities and technical debt. Build versus buy decisions come up during refounding. Do you build the new AI capabilities or acquire them?
Handshake’s experience with market timing demonstrates the importance of validating business opportunities before full organisational commitment. Opendoor’s leadership transition shows that fresh perspective can overcome founder attachment to original models. MoneyGram’s legacy system integration reveals that established infrastructure can be an advantage rather than a liability when approached strategically.
These transferable implementation practices apply across different refounding types and company circumstances.
The common thread across all four case studies is these challenges are real but manageable with proper planning and stakeholder communication. Each company accepted these risks as necessary for transformation rather than showstoppers.
For a comprehensive overview of the strategic landscape and the frameworks that underpin these transformation decisions, see our refounding overview and frameworks resource.
FAQ Section
These case studies naturally raise questions about applying refounding frameworks to your own situation. Here are the most common questions and what the evidence shows.
Which Companies Have Publicly Announced Refounding Initiatives?
Airtable (June 2025), Handshake (October 2025), Opendoor (Q3 2025) and MoneyGram (ongoing 2020s transformation) represent publicly documented refounding cases. New York Times and TechCrunch coverage in December 2025 established refounding as a recognised industry trend.
How Long Does Startup Refounding Typically Take?
Current case studies provide limited timeline data since most refoundings announced in 2025. Handshake demonstrated rapid AI business growth—eight months to $100 million ARR—before refounding announcement, but full transformation timelines remain in progress across all four companies.
What Financial Metrics Indicate Refounding Success?
Handshake’s $100 million ARR in new business line and MoneyGram’s 33% digital transaction rate provide concrete validation metrics. Opendoor focuses on path-to-profitability indicators. Airtable metrics remain private but achieved over $100 million in free cash flow.
Where Can I Find Airtable’s Refounding Announcement?
Airtable CEO Howie Liu discussed the company’s refounding philosophy in June 2025 public statements and media interviews, emphasising that “every software product must be refounded for AI” rather than adding incremental AI features.
Where Can I Read Handshake’s Refounding Details?
Handshake CEO Garrett Lord announced the refounding in October 2025 through company blog post and media interviews, detailing the $0 to $100 million ARR AI business growth and organisational transformation.
How Does Handshake’s Refounding Compare to Airtable’s Approach?
Handshake pursued adjacency-driven refounding (validated $100 million AI business before company-wide transformation). Airtable chose product-first refounding (architectural rebuilding before revenue validation). Different risk profiles and strategic rationales.
What Role Did Scale AI Play in Handshake’s Refounding Decision?
Scale AI’s acquisition by Meta in June 2025 created market gap and uncertainty in data labelling sector. This provided competitive opening that Handshake exploited by rapidly entering expert network market for AI post-training services.
Why Did MoneyGram Call It Refounding Instead of Digital Transformation?
MoneyGram’s transformation follows refounding framework by emphasising high stakes and “founding moment” gravity rather than incremental digitalisation. Positioning stablecoin integration and fintech services as fundamental company identity shift.
What Organisational Changes Are Common During Refounding?
Case studies reveal workforce restructuring (Handshake’s layoffs), return-to-office mandates (Handshake’s 5-day policy), leadership transitions (Opendoor’s CEO change), and cultural resets emphasising “startup intensity” as frequent organisational transformation elements.
How Do Investors Respond to Refounding Announcements?
Kleiner Perkins’ Mamoon Hamid initially responded with surprise to Handshake’s refounding noting “was not on my bingo card” but the board ultimately supported the direction. Investors appear to view these announcements as necessary adaptations to technological disruption rather than indicators of organisational distress.
What Are the Main Reasons Companies Decide to Refound?
AI disruption pressure. institutional drift (Yale research framework). Validated new business opportunities (Handshake). Competitive positioning requirements (Airtable). Capital efficiency needs (Opendoor). Digital transformation imperatives (MoneyGram). These emerge as primary refounding drivers.
Can Legacy Non-Tech Companies Successfully Refound?
MoneyGram’s network-led fintech transformation demonstrates legacy companies (founded 1940) can successfully apply refounding framework by leveraging existing infrastructure assets and relationships as foundation for digital business models.
