The Full Ratchet (TFR): Venture Capital and Startup Investing Demystified 484. Calculating the Market Size for AI, Building an "Experimentation Machine," the Bull Case for Non-Technical Founders, and the Key to PMF in the AI Age (Jeff Bussgang)
Jun 2, 2025
Jeff Bussgang, a General Partner at Flybridge Capital and author, shares insights on calculating market size for AI and the vital role of experimentation in startup success. He discusses the rise of business-savvy non-technical founders, emphasizing the importance of unique business insights and effective strategies over technical backgrounds. Bussgang explores how AI is transforming productivity and the evolving landscape of venture capital, showcasing the opportunities and challenges that accompany this technological shift.
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Harvest Liquidity Opportunistically
- Look for rare liquidity windows to sell portions of your position and generate returns.
- Partial sales reduce risk and provide liquidity even if the company falters later.
AI Market Size and Growth
- The AI market can reach trillions by automating labor and processes, beyond just software spend.
- Lower AI costs may expand demand, growing the market despite price drops.
AI Helping Non-Technical Pros
- Topline Pro uses AI bots to serve non-technical service pros like plumbers and electricians.
- The company itself builds AI-native workflows including AI-driven marketing and customer service chatbots.