This podcast episode delves into the evolving landscape of AI startups and the critical insights investors seek when evaluating these companies.

The discussion emphasises that a genuine AI business must be built on innovative technology applications rather than simply wrapping existing APIs around a problem.

Our guest, Andy Evans, explores the importance of traction and how founders should focus on solving real problems while leveraging AI as an enabler rather than the sole selling point.

He also highlights the emotional journey of being a founder, the significance of timing in business success, and the need for healthy collaboration within entrepreneurial communities.

Listen to gain valuable perspectives on navigating the startup ecosystem, particularly in the context of AI, and the potential pitfalls to avoid when pitching to investors.

Takeaways:

• Investors need to see and hear the founders' passion and articulation when evaluating startups
• AI should be seen as an enabler rather than the core business itself
• Startups must demonstrate genuine traction and problem-solving capabilities to attract investment.
• Founders often struggle with isolation, making community connections vital for support and growth.
• Relying solely on third-party AI APIs can pose significant risks to startups' business models.
• Persistence in pitching is essential; a 'no' today doesn't mean 'no' forever.

Links referenced in this episode:

• digitalfounders.co.uk

Companies mentioned in this episode:

• OpenAI
• American Express
• Thomas Cook
• Meta
• Anthropic
• ChatGPT
• Perplexity
• PwC
• Net Communities
• OnScroll
• Tunbridge Wells Media Group
• Techstars
• Digital Founders
• Adavow