Insights from ex-VC Partner
A conversation with Jade, an ex-VC partner, unveiled a wealth of insights. I learned a lot and think it's worth sharing.
Delving Deeper, Not Wider
First, she emphasized the need for in-depth, differentiated products within specific verticals as opposed to a shallow approach. For instance, instead of creating a generic chatbot for a wide range of industries, diving deep into the healthcare sector to develop a chatbot that understands medical terms and compliances could make a significant difference.
The Trap of Familiar Circles
Another common mistake is the tendency to seek opinions from familiar circles, leading to a narrowed perspective. But in doing so, we may miss out on a global optimal solution, only resonating with a small crowd.
LLM, VC Perspective
Jade also shared that, in the past year, the VC realm has been relatively quiet, reflecting a cautious stance while awaiting clearer market directions. This scenario underscores the need for startups to thoroughly research and align their strengths with market opportunities to attract investments.
A Structured Approach to Product Development
Towards the end of our conversation, Jade outlined a more actionable systematic approach towards exploring startup ideas:
1. Market Research:
- Study the achievements of other companies, especially those who have gone public.
- Read through their annual reports to understand their outlook on the market and future AI opportunities.
2. Industry Survey:
- Identify industries with less competition but high willingness to pay.
- Align this information with your strengths to see where the best opportunities lie.
3. Engage Interest Groups:
- Reach out to interest groups from 3-5 different industries, interviewing ten individuals from each.
- Understand the features they desire and how much they are willing to pay.
