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Twilio founder Jeff Lawson’s next project: A startup incubator that’s also an auto shop

After purchasing The Onion, Lawson's next act is building startups and a Super Seven in the Dogpatch.

A person in a checkered shirt and jeans is happily lounging on a large, striped chair. In the background, there are pinball machines and a green wall.
After departing from his multibillion-dollar tech company last year, Jeff Lawson has started his next act. | Source: Amanda Andrade-Rhoades/The Standard
Business

Twilio founder Jeff Lawson’s next project: A startup incubator that’s also an auto shop

After purchasing The Onion, Lawson's next act is building startups and a Super Seven in the Dogpatch.

On a quiet street in the Dogpatch, Jeff Lawson is tinkering with the engine of a Caterham Super Seven 2000 he’s building from scratch. His hands are stained with engine oil and marked by a scar from when he sliced his palm open on a metal car part. 

Many wondered what Lawson would do after leaving Twilio, the multibillion-dollar tech company he founded and led for 16 years, in January 2024. His LinkedIn timeline offered few clues, saying only that he was on a career break for “personal goal pursuit.” He bought the satirical newspaper The Onion, leaving everyone wondering if they were part of the joke. 

Now, Lawson’s next act has arrived. And he isn’t just building sports cars. He’s helming a bustling startup hub called Founders Garage.

The image shows a cluttered workshop with tools, wires, and electronic equipment on a wooden bench. A "Founders Garage" sign hangs above, and sunlight streams in through large windows.
Lawson is realizing a lifelong dream of building a car from scratch, and he's doing it in his own auto shop. | Source: Amanda Andrade-Rhoades/The Standard
Four pinball machines with vibrant themed artwork stand in front of a green wall. A person is seen walking up a staircase in the background.
Lawson appreciates the intricate engineering of pinball machines and is thrilled to have space for four of them. | Source: Amanda Andrade-Rhoades/The Standard

Opened this year, the space could be described as the inside of Lawson’s brain made physical: a hobby and arts studio crossed with a professional tech incubator. The first floor, dubbed “Lawson’s Auto Shop,” is home to the nearly finished car he’s building, work benches cluttered with tools, and a rather impressive collection of pinball machines, which Lawson describes lovingly as “mechanical marvels.” Upstairs on the mezzanine is a more typical coworking space, decked out with desks, phone booths, and Lawson’s office. 

Last year, during his career break, Lawson decided to build a car and began looking for an external garage after his wife banned him from using the one at their house in Noe Valley. It was a bucket-list item he had after growing up in car-crazy Detroit and spending decades in the world of software. 

“I could rent a little garage and go there and be alone,” Lawson said. “Or I could rent something bigger and interact with people building the next generation of startups.”

A man in a plaid shirt uses a green jack to lift a car indoors, with arcade games and chairs in the background, under bright lighting.
The Caterham Super Seven 2000 is nearly ready to be taken for a spin on San Francisco's streets. | Source: Amanda Andrade-Rhoades/The Standard
A person wearing goggles uses a red angle grinder on a restroom door frame, creating sparks. A restroom sign with male and female symbols is visible.
Lawson is Founder Garage's handyman and is working on multiple projects to improve the space — including its restrooms. | Source: Amanda Andrade-Rhoades/The Standard

Lawson opted for the latter and reached out to Bessemer Venture Partners to bring the idea to life. Lawson and Bessemer go way back — the firm invested in Twilio’s seed round in 2009. The cloud communications startup rapidly grew out of its office in SoMa and went public in 2016. Lawson stepped down as CEO following pressure from activist investors and purchased The Onion shortly thereafter.

He shows no hint of bitterness about not running Twilio anymore. The often beaming 47-year-old is savoring having the pad of his dreams to work on his passion projects and experience the AI boom vicariously through the startups in residence. 

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Founders Garage will house four cohorts every year, with eight startups in each class. Unlike larger, more formal incubators like Y Combinator, Lawson and Bessemer will take no equity from startups in the program (though they plan to invest in some of them). 

“We’re interested in the personality of the founder,” said Lindsey Li, vice president of Bessemer’s San Francisco office. “Are they curious? Are they coachable? Are they willing to contribute back to the community? That’s what we’re selecting for.”  

A person with long dark hair is standing indoors, wearing a denim jacket over a light shirt, with hands clasped on a wooden table. The background is an industrial setting.
Li of Bessemer Ventures joins Lawson for Friday office hours to advise startups on attracting venture capital investment. | Source: Amanda Andrade-Rhoades/The Standard

Every Friday, Lawson and Li hold office hours for the startups, coaching founders on everything from the nuts and bolts of business plans to storytelling strategies. Wednesdays are reserved for a tradition Lawson started at Twilio, wherein he invites a special guest to have dinner with the founders. Participants have included early Twilio employees, “The Lean Startup” author Eric Ries, and Render CEO Anurag Goel. The first cohort of startups just wrapped up their residence with a Demo Day, attended by a squad of Bessemer investors. 

Having weathered several tech booms and busts during his time in San Francisco, Lawson hopes to foster a community like the one he was a part of in the early 2000s, when techies were all busy hacking together apps for the iPhone. He sees a similar opportunity for AI and wants to pay it forward. 

“There’s a lot that I can share with the next generation of entrepreneurs,” he said. “My primary goal isn’t actually to make money from these companies.”

A group of people are attending a presentation in a modern industrial-style space. A screen displays a problem related to software engineers.
Startups from Founder Garage's first cohort pitch Lawson and Bessemer investors on Demo Day. | Source: Amanda Andrade-Rhoades/The Standard

Lawson now considers Founders Garage his “headquarters” for anything he’s doing. He takes meetings about The Onion in his office, sitting at times in his curvaceous, larger-than-life Gaetano Pesce Up chair. (It retails for around $7,000). He dabbles with fun projects, like designing a 3D printed widget that displays which of the garage’s bathrooms are in use. 

Most of the time, he’s working on his car or helping startups grow — two processes he’s found have striking parallels. 

“There’s all this advice out there, and then nothing works the way it’s supposed to,” Lawson said. He thought building the car would be easy if he just followed the 150-step manual. Of course, there have been complications at every turn. “That’s what it’s like building a car and a startup.”

The result is a space that feels like a physical and metaphorical workshop. Sometimes, the startup founders help him troubleshoot car problems as they kick around new products and business plans. “As the car has been built, I’ve seen all these startups go through that same journey,” he said. 

Lawson’s taken an extendible three-year lease on the garage, giving him something else startup founders crave: optionality. “It could be a fun period of life, or it could be an enduring institution,” Lawson said. “We’ll see.”

Rya Jetha can be reached at rjetha@sfstandard.com