"As for companies being built, she has a preference for the founders looking to create something entirely new. "Where I tend to get excited is when I see someone who is using AI to do something that isn't 10x better. It's actually to create a whole new experience or workflow or behavior," she said. "That's what we're looking at. Less of the incremental changes and more totally new behaviors.""
""Where I think founders are breaking through is when they can communicate to investors why what they're doing is really different than the other dozens of startups that are doing that and why they are the team to go after that," she said. Whether we are in the so-called AI bubble or not, Neundorfer says a market correction is probably coming, and a lot of the companies getting windfalls of investor money now might not survive."
Founders and investors are focused on AI, and venture firms are exploring AI to improve due diligence and competitive analysis. Preference exists for startups using AI to create entirely new experiences, workflows, or behaviors rather than incremental improvements. Many AI startup ideas now sound similar, causing founder fatigue and raising the bar for clear differentiation. Successful startups will clearly communicate how their approach differs and why their team can execute. A market correction is likely, and many well-funded startups may not survive. Long-term winners will build truly category-defining companies and anticipate evolving customer needs.
Read at TechCrunch
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