The Seven Generative AI Building Blocks for the Next Generation of Consumer Technology Companies
OpenAI’s ChatGPT reached 100 million monthly active users just two months after launch, setting the new standard for the fastest-growing consumer application in history. The landmark achievement underscored the strength of generative AI’s pull in consumer markets—surpassing even the breakthroughs of the internet and smartphones.
Economic downturns force us to get back to basics: The cost of new capital and low valuation multiples—even for top-performing public companies—force startups to make substantial progress per dollar to get a term sheet, much less an up round.
Within a broad horizontal marketplace, it becomes more difficult to achieve sufficient liquidity, whereas a vertical marketplace immediately brings together buyers and sellers seeking to complete the same category of transaction.