How to Win in Generative Tech Right Now Given that everyone is having similar ideas right now (see NFX’s Generative Tech Market Map – collectively, these companies have raised $12B+ already) – then how do you compete?
- Product Speed
You need to get product in market, see what works, what doesn’t. See what makes people uncomfortable – and get them through that cycle. Watch your competitors closely and borrow the best ideas. Don’t make it perfect. Don’t spend too much time hunting down specific data in hopes of building the perfect model if it comes at the expense of other layers in the stack (your application, API or OS layer). Launch the feature first, let the model learn over time. One good example of this is Jasper’s recent “Tweet generator” which according to users is “an absolutely god-awful beta.” Jasper clearly needs a specific AI model for this feature. I suspect they’re building one or planning to borrow one, but they did the right thing by launching the beta anyway and getting on the field with it. You should follow their example with whatever you’re working on.
- Fundraising Speed
NFX’s Generative Tech FAST initiative is intended to help with this. It’s for founders building in generative AI who are bold and sprinting and looking for funding. It’s open now. When you apply, you get feedback in 4 days and a decision in 9 days.
- Sales Speed
As Generative AI moves from feature to product to real businesses, you might consider that aggressive sales and marketing, not just AI and ML, will rule 2023 – 2024. Aggressive sales will help embed your product in your customers and give you the right to expand into other categories. Aggressive sales will help you build network effects to help your defensibility. Sales will help you with advantages #2 and #1 above.
- Network Effects
Network effects will help you win, particularly at the application and OS/API levels. We’ve written a Manual and produced a 3-hour Masterclass season to help you think about these.
- Embedding
If the AI models, layers 1-3, trend to commodities, then it might make sense to look at how the applications and APIs you build on them help you keep your customers by embedding them in their workflows or their daily lives.