13 Comments
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Mike Vladimer's avatar

I'm building a data business with plans to avoid VC investment as much as possible. I actually appreciate how this article validates aspects of my approach. Thanks for your critical reflections on past positions.

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Auren Hoffman's avatar

good luck!!!

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Phillip Zakas's avatar

1000% Agree

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Imran Patel's avatar

Thought provoking post! AI makes it super easy to activate data so we will see if 'this time it's different'. Also I think a lot of daas companies that package open/public datsets are in trouble e.g. we see it in our space with Zoominfo getting outflanked by Apollo and Clay whereas LinkedIn seems to be doing okay monetizing their own data.

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Liron Shapira's avatar

Banger. Great blog

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Auren Hoffman's avatar

thx!!

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Ken Denman's avatar

Same mistake here. It’s now clear that it’s imminently more valuable to use/productize access to propriety data in the AI age, versus sale/share raw data. By that I mean create applications, platforms and/or products from unique access. All else is open source…

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hunterwalk's avatar

what do you think about AI training data businesses right now?

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Auren Hoffman's avatar

they can be good but still unclear why they need to raise a lot of money -- most of them can get very profitable immediately

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ericdibenedetto's avatar

What should DaaS VCs of the last 5 years invest in in the next 5 years? Are they really better prepared for it than non-DaaS VCs?

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Auren Hoffman's avatar

really good question. have been asking myself that. not sure DaaS VCs are more prepared but they certainly are not less prepared

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Tetiana Sharova's avatar

Great take. I completely agree—data businesses are much more aligned with a PE model than traditional VC. The focus should be on profitability from day one, rather than burning capital to chase scale.

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Auren Hoffman's avatar

good news is that it is increasingly easier to do with all these AI tools. and most DaaS businesses are way more profitable now.

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