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Corgi, the buzzy Y Combinator-backed insurance tech startup, says it didn’t steal an open source product
Y Combinator-backed insurance tech startup Corgi faced another controversy this week when Papermark, maker of open source data room software, accused Corgi of stealing its software for Corgi's newly released product called Dataroom. Papermark co-founder Marc Seitz posted screenshots on X showing identical language and features, calling it copyright infringement and fraud. Corgi co-founder and CEO Nico Laqua denied the allegation, stating, "No code was used from Papermark." He posted evidence showing different code, but admitted that "vibe-coding" led to replica features, saying, "Looking back, we should’ve leaned more into our own language and visual choices." A Corgi spokesperson confirmed the offending features were on two peripheral settings pages and have been immediately updated. Corgi also accused Papermark of making accusations because Corgi offers a less expensive product. Laqua wrote, "I get that this stings since we’re putting out something mostly free that competes with his SaaS." Seitz has not responded to requests for comment. The controversy raises questions about whether copying look and feel without identical code matters legally and morally, especially as AI tools make such replication trivial. Corgi has sent a cease-and-desist letter demanding Seitz remove his tweet. Separately, the founder of Hello World Cafe, which competes with Corgi’s coffee shop business, also reportedly received a cease-and-desist for a joke tweet about the controversy. This incident adds to Corgi's growing reputation for litigiousness; it has sued former employees. Laqua recently went viral for comments on a podcast about expecting employees to work seven days a week, saying, "Whatever you can get done in five days, you’ll get more done in six and seven." Research contradicts this, showing routine overwork reduces productivity. Corgi has also raised funds rapidly: last month, a $106 million Series B1 at $2.6 billion valuation, three weeks after a $160 million Series B at $1.3 billion valuation, and four months after a $108 million Series A.