Re:I'm tired of "AI" products wrapped over and selling at hi...
by Workaccount2 on Sunday May 19, 2024 @11:47AM
(#40407681)
I can't help but feel that a lot of these AI SaaS "start-ups" are just single dev or a small team running a flight by night operation to grab whatever they can before the giants come around and squash them.
A flashy platform with crafty prompt injection to hopefully net a few thousand in low effort recurring revenue.
Even if they were doing the same thing as the others but developing their own model with a better cost structure that would be innovative.
To that they have to get some money together somehow, probably from investors. Two steps up from a pitch deck is a pitch deck and a prototype that got some customers. So there you go.
If I were trying to pitch to a VC though I would be thinking of a plan that is going to make a lot more money, that could justify an enterprise value of $50M at the very least based on conservative multiples. So they have to have something better than “dominate some small area” such as being able to replicate that success for a large number of small areas.