Platforms to pipelines 💡

March 20, 2024

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 fourth installment of this five-part series, I will break down the fourth tenet of Flybridge’s Third Wave Thesis. Follow along, share your perspectives, and let me know what founders you’ve found building an AI-powered future.

Part Four: AI-Infused Complex Systems

Certain industry applications are too complex for standalone AI components. Instead, they require system-level solutions that integrate software, hardware, and data into one offering. When domain constraints require end-to-end control, this approach enables startups to capture more value than individual AI building blocks.

Autonomous vehicles are an example of this systems model. Tesla produces fully integrated self-driving cars rather than offering standalone autopilot systems to manufacturers. This strategy better meets consumer needs. Other industries, from agriculture to robotics, present similar opportunities through vertical integration.

Historically, a systems approach faced high hurdles at the seed stage. Between capital intensity, long development cycles, and go-to-market barriers. But AI progress is reducing these barriers. AI toolkits reduce software costs. Cloud-based simulation lowers overhead. Distribution is more accessible.

Full-stack AI startups are well-positioned to disrupt complex systems. Bowery harnesses AI to optimize agriculture factors via BoweryOS, which goes beyond traditional farming capabilities. AeroVect offers the premier self-driving technology for airport ground support equipment - OEM agnostic and highly scalable.

Startups building AI for unique challenges have highly transferable expertise. Data, simulator environments, algorithms, and research will spread into robotics, smart spaces, and more. Expect alumni from top AI labs to transition into founder roles.

As AI technology improves, more verticals will shift from API plays to AI-powered complex systems. With patient backing and capital efficiency even at the seed stage, long-term investments can pay dividends.

Until next time,

Jesse

🌱 Bowery is available at Whole Foods, Amazon Fresh, Walmart, Instacart, and tons of other locations. To find a store near you, click here.

🚀 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.

🗽 NYCEDC is seeking program operators for a NYC-based founder fellowship. The Venture Access Founder Fellowship program supports diverse founders through networking, fundraising, mentorship, community building, and business development. Learn more.

💼 Teal is hiring a Growth Marketing Manager. The individual will report to Matthew Sterkenburg, Director of Growth. Let me know if you’d like an intro. 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.