Jaden Schaefer

So generic horizontal tools, light product management software, and surface level analytics.

If an AI agent can replicate the core value quickly, I think investors are not seeing this as very defensible.

So maybe even some of my previous examples weren't the greatest because

In a sense, what they want tools to be able to do is have some sort of custom data set, some sort of deep integration into something that's super, super critical.

And it's not something that just like a chat GPT or Anthropic can replicate easily.

And the reason being, Anthropic right now is rolling out all of these new tools, right?

They're doing like Anthropic for finance and Anthropic for legal.

And basically, you have a company like even Harvey AI, who's raised a ton of money.

And I'm hearing, you know...

anecdotal stories from people who are saying like, you know, I've used Harvey for my law firm and now I'm using Anthropic just rolled out Anthropic for legal and I don't need this whole other tool.

I just use my Anthropic account and all of a sudden this is, you know, just as good as Harvey.

So

It's really interesting what is actually being seen as defensible today.

So Abdul Abdirhan of F prime added that vertical software without any proprietary data moats is no longer super compelling.

So they actually want you to have a data moat, maybe you ran a you know, an

an FAQ legal website.

So you have all of this data on, you know, legal FAQ questions.

I've seen some startups do this.

And that is like a proprietary data moat where maybe you have, you know, information that no one else has.

Or maybe you have information because you have a company and you can see what your users, you know, what their behavior is.