Where VCs think AI startups can win, even with OpenAI in the game | TechCrunch

"Larco, who's been investing in consumer and prosumer for years, thinks we're about to see a shift in how consumers spend time online, with AI powering "concierge-like" services. The question is, will legacy consumer products like WebMD and TripAdvisor continue to exist as standalone apps, or will they just get absorbed into ChatGPT or Meta AI? And where can startups carve out an AI-powered niche for themselves"

"Watch as TechCrunch's ⁠Rebecca Bellan sat down with Larco on Equity to talk about why consumer is back, what OpenAI won't kill, and where the real opportunities are hiding. Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod."

Investment focus on consumer and prosumer startups is resurging as AI begins powering concierge-like services that change how people spend time online. Legacy consumer properties such as WebMD and TripAdvisor face the risk of losing standalone status as AI platforms absorb their core functionality. Startups can differentiate by owning vertical expertise, orchestration layers, personalization, trust and privacy controls, prosumer creator tools, or human-in-the-loop features. Distribution, UX innovation, data advantage, community, and execution speed will determine winners. Monetization is likely to shift toward subscriptions and embedded services as AI-mediated experiences become primary touchpoints.

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