The extreme capital intensity of AI startups makes them fundamentally flawed as seed-stage venture investments due to massive dilution.
Silicon Valley culture has for too long encouraged founders to neglect etiquette, putting them at a disadvantage in building trust.
Most startups (99.9%) do not have technology so revolutionary that they can afford to ignore professional and social norms.
Opportunities Identified
Founders can gain a significant competitive edge by mastering etiquette and building strong, trust-based relationships.
Investing in companies that leverage AI to solve cultural or user-facing problems is a more viable strategy than investing in capital-intensive core AI models.
AI presents a massive opportunity as an enabling technology to improve efficiency and create value within existing businesses.