Why Dispo’s co-founder made the leap from social media to steelmaking

Daniel Liss, who co-founded the social platform Dispo and the dating application Teaser AI, is now venturing into an unexpected field: steelmaking. His journey into this industry began with a series of opinion pieces he wrote for TechCrunch about antitrust issues in social media, which caught the attention of influential figures in Washington D.C. This led to an invitation for him to serve as a guest judge at a war game exercise hosted by the National War College in spring 2023, where he engaged in a scenario involving U.S.-China tensions over Taiwan and the South China Sea. The experience left a profound impact on Liss, who noted, "Our core supply chain of the arsenal of democracy — literally, the ships that my grandfather fought in — we don’t have the ship-building capacity. If we did, we don’t have the steel to make it." This revelation ignited a deep interest, indeed an obsession, with the steel supply chain, ultimately leading to the establishment of his new startup, Nemo Industries. Nemo Industries aims to meld the realms of steelmaking and artificial intelligence, operating under the radar until now. Liss revealed that the company intends to utilize AI technology to streamline the production of pig iron, a critical component in steel manufacturing, in an industry he describes as severely outdated. "These plants are run on, at best, Excel spreadsheets. At worst, clipboard technology," he remarked, acknowledging the immense expertise of the workforce but also highlighting the inefficiency of current operations. Liss envisions Nemo as more than just another industrial software solution; the company plans to develop its own furnaces. He believes that companies that integrate AI from the beginning will secure a significant margin advantage—estimated at 20% to 30%—over their competitors in the steel sector. However, entering the steelmaking arena is no small feat. Hyundai Motor Group recently announced a $6 billion investment in a steel plant in Louisiana to support its U.S. operations, yet Nemo's focused approach on pig iron production could allow for a more modest financial outlay. To reduce carbon emissions, Nemo intends to power its furnaces with natural gas instead of the coal commonly used in the industry. Liss has also mentioned the potential for capturing carbon emissions from the furnaces, especially with favorable tax incentives available under the Inflation Reduction Act. Partnering with Liss is Michael DuBose, a seasoned investor with a background in natural gas infrastructure at Cheniere Energy. Together, they aim to scale Nemo effectively. The startup has already secured $28.2 million in funding and is currently negotiating a $100 million Series A round with existing investors. Additionally, they've received offers exceeding $1 billion in incentives from two southern states for the construction of three plants over the next 15 years. While this ambitious plan poses significant challenges, Liss is confident that such bold aspirations are necessary to meet the expectations of venture capitalists in the steel industry. He reflects on the historical significance of basic industries like steel, stating, "When you look at the history of our country, many of the greatest companies that created outsized outcomes for their initial investors were in these categories."