Into the abyss 🕳️

Hi friends,

Flybridge no longer sees AI as one investment area, but as our central focus. We firmly believe entrepreneurs will shape an AI-driven future across every industry.

In the final installment of this five-part series, I will break down the fifth tenet of Flybridge’s Third Wave Thesis. I welcome your perspective, and let me know what founders you’ve found building an AI-powered future.

Part Five: AI Native Offerings

The founders who leverage AI to create entirely new value propositions represent the most exciting, high-potential – yet unpredictable – startup opportunities. When modern technology intersects with creative vision, new categories can emerge overnight. These AI-native ideas that live outside our imaginations have the greatest upside.

History displays how fast platform innovations enable once-unthinkable opportunities. Uber, Instagram, and Snap would have been impossible without the smartphone's app ecosystem. GPU progress catapulted the gaming sector's growth. AI carries a similar opportunity. Not just to overhaul software, but to fuel entirely new experiences.

Large language models like GPT-4 demonstrate early examples of text-and-image generation products (but it’s still early). Visual editors, design tools, and other apps now live on top of these models. We’ve only scratched the surface of combining data, computing power, and generative models.

Understanding the future’s potential requires collaboration between technical and creative experts. Engineers need exposure to diverse domains. Non-technical founders must deeply grasp the growing capabilities of AI. Multidisciplinary teams will most likely stumble upon a revolutionary, outside-the-box idea.

First movers who identify niche opportunities will grow entirely new categories. Platforms like ChatGPT highlight the demand for the right solution at the right time. Of course, building initial traction is challenging. But the upside for well-timed, targeted ideas using AI is nearly endless.

Until next time,

Jesse

Hot Links

🤖 Oasis is my favorite writing companion. I use it to get ideas out of my head and onto paper. I use it for emails, long-form content, and even sometimes for this newsletter. Check it out.

🚀 MongoDB for Startups offers free MongoDB Atlas credits, one-on-one technical advice, co-marketing opportunities, and access to their partner network. I’m happy to intro. Learn more.

💼 5x is hiring a Data Engineer. The opportunity is fully remote. If you or someone you know might be a fit, shoot me an email. Apply here.

👋 Hi, I’m Jesse, a seed-stage VC at Flybridge. If you’re building or investing in an AI-driven future, reply to this email with 1-2 short paragraphs. I’d love to catch up over coffee.