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VCs say AI companies need proprietary data to stand out from the pack
In a market moving as quickly as AI, investors say that they aren't looking for companies with technology moats, but rather those with 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. “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.” “As a pureplay seed fund, we’re focusing most of our energy in vertical AI opportunities tackling business-specific workflows that require deep domain expertise and where AI is mainly an enabler of acquiring previously inaccessible (or highly expensive to acquire) data and cleaning it in a way that would’ve taken hundreds or thousands of man hours,” Lehr said.
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