4 ms·

Per this statement from their conclusion: > Startups are working faster than ever, and both businesses and consumers are demonstrating high willingness to pay

Per this statement from their conclusion: > Startups are working faster than ever, and both businesses and consumers are demonstrating high willingness to pay for new products. ..I feel like the focus was more "offering (generative) AI features" than "built with AI", as in startups being AI forward for their ICPs are building businesses faster than the incumbents who are still trying to figure out how to wedge AI into their tech debt laden product landscape.

nilirl 1y ago
Even so, the increased rate of revenue generation cannot be explained by AI features since all the other (read: not skyrocketing) startups also offer AI features. Did these portfolio companies just get the UX right? That would mean their entire portfolio, across industries, just happens to be filled with exceptional designers of products, who all simultaneosly cracked the UX for their respective industries. A simpler inquiry: What if the cause of this revenue growth is not on the startup/VC side but on the buyer side? Why are more companies rushing out there willing to spend more than before? Here we have some candidates to consider: FOMO, labor efficiency, excitement. Now, we have economics (behavioral and regular) to form a causal narrative; we have loss aversion and job cuts as incentives. So, based on this post can we say this is a better time to start a startup than before? I don't think so. Can we say that if you do start one with the same odds of success as before, grow it to a VC happy size, and have AI somewhere in the offering, you'll probably have more revenue than companies of a similar size from a few years ago? Yes, I think we can say that.