Sir Jack A Lot returns with a startup for retail traders

Kevin Xu, AfterHour, startups, VC

When former YouTube product manager Kevin Xu, known as “Sir Jack A Lot” on Reddit, turned $35,000 into $8 million trading stocks between 2020 and 2022, many people thought his fortunes, and his way of investing, had peaked, just like 2021’s memestock craze had.

Xu doesn’t agree, though, and he’s now building a startup for retail investors that aims to bring the good-natured investing advice and community that people used to enjoy on platforms like the WallStreetBets subreddit, but with a layer of accountability that discourages scammers and grifters.

Launched in April 2022, AfterHour lets users link to their stock brokerage accounts and, under a username of their choosing, post their investments to a social feed. “The only reason people trust me and Roaring Kitty is that we are transparent,” Xu told TechCrunch. “Why not show your actual positions or prove you are actually in something? [AfterHour] brings back a level of credibility and trust. You connect your brokerage and share real verified positions and screenshots.”

The company currently has more than 23,000 users, and while that’s not an eye-popping number by any means, its user base is growing, and early adopters seem dedicated — Xu said that more than 70% of its users are on the app every single day. The company is currently focused on growth, Xu said, but has plans of how to monetize in the future.

“Monday to Friday, 9:30am to 4pm is the game,” Xu said. “When we started, I was so scared that it would be quiet on the weekends, but on Monday, people just come back. We don’t do any scammy push notifications to get people back on Mondays, but they naturally come back.”

The startup recently raised a $4.5 million seed round led by Founders Fund — Keith Rabois’ last investment at the firm — and General Catalyst. Pear VC, Daybreak Ventures and F4 Fund also participated, among several others. Xu said AfterHour is now focusing on growing its user base and its team.

Xu believes letting users be pseudo-anonymous is why AfterHour’s approach works. He recalled that he used to feel awkward about the thought of talking to his colleagues at YouTube about trading stocks during his off hours, and thinks he’s likely not alone in feeling that way.

But on the flip side, he recognizes that an environment that encourages zero accountability is not a good idea for a platform like his. That dynamic breeds the grifters and scammers like you see on Reddit and X, who are looking to pump and dump their positions, or post fake trades to get other people to invest.

He added that because people can only post their actual trades, it weeds out a lot of the bad actors. Of course, there will be some bad apples, but Xu said the startup works to monitor posts, and flag anything suspicious with a system of warnings and community notes — not unlike X’s community-based approach to moderation.

Xu acknowledged that such a monitoring system won’t remain effective as the platform continues to scale. “Right now it is basically me being in the app and reminding people that independent thinking is sexy,” Xu joked. He added the company is working on a plan to curb bad behavior, and is thinking of ideas like an algorithm that can automatically flag posts that look fake.

This deal stood out to me because I think it’s a smart play to build services for retail investors. The trajectory of this space reminds me a lot of the crypto world. While very different, they are both investing areas that had their 15 minutes of fame, but as they faded from the mainstream, they still kept dedicated and growing communities of people interested in their approach.

Still, AfterHour is an especially smart idea because, as with crypto, there is much money to be made here — and just as much to lose. Such platforms can’t guarantee their users will find financial success, but that doesn’t mean average people should be fully locked out of the stock markets, which companies like Robinhood, and more recently Destiney Tech 100, have worked to democratize.

“The big misconception in the valley was that retail trading was a fad in 2021, referencing the stimulus check,” Xu said. “It’s only growing. The data backs it up.”

For context, 2023 was the most active year ever for retail trading. Robinhood saw more than $86.6 billion in trading volume in May alone.

AfterHour isn’t the only company realizing the potential of this space — Robinhood’s media expansion is a good example. The trading app bought the Snacks newsletter, focused on retail investors, back in 2019. More recently, it launched Sherwood Media, a financial publication aimed at the same audience.

While he’s starting with the stock market, Xu hopes that AfterHour will move into other areas of finance down the line to become the one-stop-shop for retail investors in the future.

“AfterHour needs to exist,” Xu said. “I see the internet of finance and how it is evolving, and I’m disappointed in all the other attempts [to build a similar platform]. They were just disappointing.

I’m thinking really long-term. I want it to be fun and accessible. I think it’s more entertaining than sports, and I think a growing number of people online do, too.”

We’re about to learn a whole lot more about how the human body reacts to space 

Image Credits: Inspiration4 (opens in a new window)

We could be entering a renaissance for human spaceflight research, as a record number of private citizens head to space — and as scientists improve techniques for gathering data on these intrepid test subjects. 

A sign that the renaissance is imminent appeared earlier this week, when the journal Nature published a cache of papers detailing the physical and mental changes the four-person Inspiration4 crew experienced nearly three years ago. That mission, in partnership with SpaceX, launched on September 15, 2021 and returned to Earth three days later. 

During the mission, the crew experienced a broad set of modest molecular changes, dysregulated immune systems and slight decreases in cognitive performance. But researchers are only able to analyze the data — more than 100,000 health-related data points — because the four-person crew was able to reliably collect it in the first place. 

This is a bigger accomplishment than one might realize. The Inspiration4 crew received plenty of training, in large part with SpaceX, which provided the Dragon capsule for their ride through orbit. But their preparation is still a far cry from that of NASA astronauts aboard the ISS, and who also regularly perform a battery of health tests on themselves. That includes ultrasounds, cognitive tests, biopsies, blood and saliva testing, skin swabs and sensorimotor tests. 

“You can do research with private individuals in space, that is the number one result [of the research],” said Dr. Dorit Donoviel in a recent interview. Dr. Donoviel is co-author of one of the papers published in Nature and associate professor in the Center for Space Medicine at Baylor College of Medicine. She’s also the executive director of NASA-funded research consortium Translational Research Institute for Space Health (TRISH), which conducts and funds cutting-edge research to improve human safety in space. 

“I’ll be honest, nobody was sure that we were going to be able to gather a reasonable amount of data, that we were going to be able to implement it, that regular people who have never had exposure to scientific research could do something that we would actually be able to analyze,” she continued, referring to the Inspiration4 mission. 

In some obvious ways, the Inspiration4 crew are far from ordinary: The mission’s leader, Jared Isaacman, is a billionaire that founded a payment processing company when he was 16; Hayley Arcenaux is a physician’s assistant at the world-renowned St. Jude Children’s Research Hospital; Sian Proctor is a pilot with a PhD who teaches geology at the college level; and Christopher Sembroski is a former U.S. Air Force journeyman whose long career as an aerospace engineer brought him to his current workplace, Blue Origin.

The Inspiration4 crew.
Image Credits: Inspiration4

And yet, they still came to Inspiration4 as spaceflight novices. That meant TRISH researchers had to come up with a testing suite that could be performed with minimal training. The Inspiration4 crew also wore Apple Watches, and the capsule was outfitted with environmental sensors that researchers were able to correlate to the other testing results. Correlating the data is “unusual,” Dr. Donoviel said, but it gave researchers unique insights into how changes in the confined environment affected things like heart rate or cognitive performance. 

Overall, researchers are trying to move toward digitizing testing and making more of the data-gathering passive, to lower the cognitive overhead on the private astronaut. (NASA astronauts also take cognitive tests, but they are using a very old test developed in the 1970s, Dr. Donoviel said.) 

Gathering such information will be critical as the number of private citizens heading to space increases, as it seems almost certainly poised to do in the coming decade. Researchers will be better able to understand the effects of spaceflight on people that don’t fit the mold of the typical NASA astronaut: male, white and in the top percentiles for physical and cognitive performance. But they’ll only be able to do so if the future space tourists are willing to collect the data. 

More data means a better understanding of how spaceflight affects women versus men, or could help future space tourists with pre-existing conditions understand how they will fare in the zero-G environment. The results from Inspiration4 are promising, especially for space tourism: TRISH’s paper found, based on the data from that mission, short-duration missions do not pose significant health risks. This latest preliminary finding adds to existing data that longer-term stints in space — in this case, 340 days — may not be as dangerous as once presumed.

So far, commercial providers ranging from Axiom Space to SpaceX to Blue Origin have been more than willing to work with TRISH, and agreed to standardize and pool the data collected on their respective missions, Dr. Donoviel said.  

“They’re all competing for these people [as customers], but this allows them to contribute to a common knowledge base,” she added.  

This is only the beginning. The rise in non-governmental spaceflight missions raises major questions related to the norms, ethics and regulation of human research in space. While more private citizens are likely headed to space than ever before, will they be interested in being guinea pigs in order to further scientific research? Will a private astronaut paying $50 million for a luxury space tourism experience want to spend their time in orbit conducting ultrasounds on themselves or meticulously measuring their temporary cognitive decline? 

Possibly; possibly not. Last year, Donoviel co-published an article in Science calling for, among other things, the development of a set of principles to guide commercial spaceflight missions. One of those principles the authors called for is social responsibility — essentially, the idea that private astronauts arguably have a heightened social responsibility to advance this research.

“If you’re going to space, you’re resting on the laurels of all of the public funding that has enabled you to go to space. The taxpayers paid for all of those space capabilities that have now enabled you to go to space. So you owe the taxpayers the research,” Dr. Donoviel argued. She added that advances in wearable tech have only lowered the burden on the research participants — not just with the Apple Watch, but with tech like the Biobutton device that continuously collects many vital signs or a sweat patch.  

“We’re not going to make it miserable for you, we’re not going to poke you with a needle, we’re not going to make you do an ultrasound, but wear the Biobutton and put on the sweat patch.” 

The story has been updated to reflect that Dr. Donoviel works at Baylor College of Medicine, not Baylor University, and that NASA’s cognitive tests were developed in the 1970s.