VCs Say AI Companies Need Proprietary Data To Stand Out
TechCrunch's Rebecca Szkutak reports: TechCrunch recently surveyed 20 VCs who back startups building for enterprises about what gives an AI startup a moat, or what makes it different compared to its peers. More than half of the respondents said that the thing that will give AI startups an edge is the quality or rarity of their proprietary data. Paul Drews, a managing partner at Salesforce Ventures, told TechCrunch that it's really hard for AI startups to have a moat because the landscape is changing so quickly. He added that he looks for startups that have a combination of differentiated data, technical research innovation, and a compelling user experience.
Jason Mendel, a venture investor at Battery Ventures, agreed that technology moats are diminishing. "I'm looking for companies that have deep data and workflow moats," Mendel told TechCrunch. "Access to unique, proprietary data enables companies to deliver better products than their competitors, while a sticky workflow or user experience allows them to become the core systems of engagement and intelligence that customers rely on daily." Having proprietary, or hard-to-get, data becomes increasingly important for companies that are building vertical solutions.
Scott Beechuk, a partner at Norwest Venture Partners, said companies that are able to home in on their unique data are the startups with the most long-term potential. Andrew Ferguson, a vice president at Databricks Ventures, said that having rich customer data, and data that creates a feedback loop in an AI system, makes it more effective and can help startups stand out, too. [...] Beyond just data, VCs said they look for AI teams led by strong talent, ones that have existing strong integrations with other tech, and companies that have a deep understanding of customer workflows.
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Amazon To Shut Down 'Try Before You Buy' Rival To Stitch Fix
Amazon is shutting down its "Prime Try Before You Buy" service on January 31, according to a notice on its website. The offering operated similarly to apparel subscription services like Stitch Fix and Rent the Runway, allowing Prime members to try out apparel-related products and only pay for items they wanted to keep. CNBC reports: An Amazon spokesperson confirmed the move, which was first reported by The Information. "Given the combination of Try Before You Buy only scaling to a limited number of items and customers increasingly using our new AI-powered features like virtual try-on, personalized size recommendations, review highlights, and improved size charts to make sure they find the right fit, we're phasing out the Try Before You Buy option, effective January 31, 2025," the spokesperson told CNBC in a statement.
Amazon rolled out the service, which was previously called Prime Wardrobe, in 2017. It was only available to members of Amazon's $139-per-year Prime subscription program, which also includes perks such as speedy shipping and access to streaming services. Users could test out a mix of luxury, staple and Amazon-owned brands, and return whatever they didn't want to keep for free within seven days of receiving the items. The service operated similarly to wardrobe subscription services including Stitch Fix and Rent the Runway, as well as newer entrants such as Urban Outfitters' Nuuly.
Read more of this story at Slashdot.
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Now Robert Burns is sidelined in Scotland's schools...in the name of 'diversity' as education chiefs 'reposition' national poet in favour of more 'relevant' novels
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Google and Linux Foundation form Chromium love club
Right as Uncle Sam pushes for Chrome sell-off, eh?
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Supreme Court indicates whether TikTok will be banned in the U.S.
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Premier League footballer 'arrested on training pitch in front of shocked team-mates' - after he is accused of 'making a sex tape without consent'
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