AI represents the fifth major technology product cycle, building on the PC, internet, cloud, and mobile eras, and is now the primary driver of net new revenue in the software industry.
A core investment thesis is that AI creates entirely new markets by performing valuable cognitive jobs that were previously uneconomical for humans, leading to unprecedented growth for startups (e.g., zero to $100M revenue in 1-2 years).
Companies with proprietary, "walled garden" datasets (e.g., in legal, medical, or financial domains) can build highly defensible moats by layering AI on top to create finished products, not just providing raw data.
AI is disrupting traditional business models, such as per-seat software pricing and the billable hour in professional services, creating opportunities for startups with value-aligned models.
12 quotes
Concerns Raised
Foundational model providers (e.g., OpenAI) may compete with their own application-layer customers.
Incumbents with misaligned incentives, such as law firms billing by the hour, may resist adopting productivity-enhancing AI.
Startups without a proprietary data or workflow advantage risk being commoditized as AI capabilities become more accessible.
Opportunities Identified
Investing in AI-native companies that are creating entirely new market categories.
Backing companies that possess or can build proprietary 'walled garden' datasets.
Identifying startups that are disrupting legacy industries with new, AI-enabled business models and pricing.
The rapid, inbound-driven growth of AI companies allows for more capital-efficient scaling compared to traditional enterprise sales models.