"Right now you're seeing it all the way from chips all the way up through the application layer."
"companies that are able to actually embed and fully overtake an existing workflow, while building significant switching costs."
"integrated in usability and in all the other solutions that it needs to be in order for the workflow to be fully functional?"
"With every new user, does the solution get better, does it get cheaper, does it get faster?"
A true technology wave involves changes across the entire tech stack, from chips through the application layer. Valuations for some companies have climbed beyond fundamentals while certain companies show unprecedented growth curves. To identify durable startups, apply a three-question test: determine whether the product is a feature or a workflow that can overtake an existing workflow and create switching costs; confirm whether distribution is built in through integration and usability across required solutions; and assess compounding durability by checking if the solution improves, becomes cheaper, or speeds up with each new user.
Read at Fortune
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