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TLDR "AI will transform industries, it hasn't happened yet, some companies have given up because it's too hard, some companies haven't, mobile apps are cheap an
by dave_sullivan 9y ago
TLDR "AI will transform industries, it hasn't happened yet, some companies have given up because it's too hard, some companies haven't, mobile apps are cheap and so too will AI be."
This is the best business model for AI startups right now: Raise money (at least $10m) to start a private equity fund. Now find businesses that YOU know will massively benefit from AI but their management simply doesn't understand. Buy the company. Use AI to increase margins. Sell the company. Profit.
This is a massively better idea than selling your time for X to companies run by people who don't understand what you'd be doing for them.
Actually, there's a bit more to it, but that's where the next wave of AI profits will come from (PE funds, not startups and not VC).
Speaking of which, if anyone is doing something similar, feel free to contact me.
- staticautomatic 9y agoThat's a great idea.
- tim333 9y agoThe subset of people who can raise >$10m for a private equity fund and that understand current AI is probably quite small.
- dave_sullivan 9y agoIt's a pretty open strategy at this point. In a few years, everyone will be doing it. Also, PE itself is such a messed up industry. Very conservative, hasn't changed their playbook in 2 decades. The guys at KKR aren't the ones that are going to figure this out.
- tim333 9y agoMaybe a PE expert should partner with an AI expert. They seem rather different skill sets.
- CabSauce 9y agoThe only problem is this is almost every non-tech company. I guess you could focus on companies where the core business can easily be improved by an algorithm. But there's opportunity everywhere.
- deleted 9y ago[deleted]