Investors, now more discerning about what constitutes a true AI startup, look for credibility and uniqueness in the AI space. With the rise of large language models, creating an AI startup has become easier and cheaper, making it crucial for startups to establish their credibility and differentiate themselves from the competition.
Key takeaways:
- Raising a Series B for AI startups has become more challenging due to the saturation of the market and the slowing of venture capital.
- AI startups should be prepared to explain the measurable impact of AI on their product offering, using quantitative metrics, business value measures, and qualitative proof points.
- AI startups need to articulate their unique competitive edge, such as proprietary datasets, unique business workflows, or domain expertise, to stand apart from major players like OpenAI.
- Investors have become savvier about identifying what is and what isn’t AI, so establishing ironclad credibility is crucial for AI startups.