Beyond Traditional Moats: A Founder’s Perspective

Over the past year as an AI founder, one predominant trend has become clear: most people who aren't directly building in AI don't fully grasp the scope of the space or the magnitude of the opportunity. They rely on outdated mental models and truths to evaluate whether a company will succeed, often leading to significant misjudgments.

The Early Misconceptions

One early example was the obsession with proprietary data and technology moats. Many AI founders recognized early on that these weren't critical factors—and time has proven them right. Neither defines success in this space.

Then came the common concern: "But won't OpenAI or Google just do this?" This belief overlooks a well-established truth that was already resolved in the SaaS era: companies like Google, Microsoft, and Meta don't build B2B applications. They focus on large-scale platforms and provide developer tools, leaving most B2B markets to startups. Even if they tried, founders know that startups have the edge in speed, risk-taking, and execution. Distribution is no longer the insurmountable advantage it once was.

Market Evolution and ROI

Slowly but surely, the market is beginning to shed these outdated beliefs. Verticalized AI startups are already transforming industries like support, sales, and marketing. Just recently, IDC published a study showing that for every dollar invested in AI companies are realizing an incredible 350% ROI. This is just the beginning of what's possible.

The Market Opportunity

The latest skepticism revolves around whether these markets will be winner-take-all. The answer in most markets is a clear no. We're looking at the potential for hundreds—if not thousands—of billion-dollar companies to emerge in this space, with countless others worth $100 million to $1 billion.

Right now is the time to build, focus, achieve product-market fit, and reach escape velocity. The opportunity cannot be overstated.

Looking Forward

I'm deeply grateful for the partners, advisors, investors, and friends who have supported our journey this year. Your belief in us has been invaluable. We've only just begun. Let's get it.