Why AI Startups Fail, And How to Succeed [The Opportunity Ep.175]


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Mar 04 2025 24 mins   7

Is the AI boom just another bubble waiting to burst, or is it the start of a power wave of business opportunities?

Well, that depends on how sustainable AI-driven businesses are in the long run.

In this episode, Greg dives into the realities of AI-driven businesses—covering what makes them valuable, the risks buyers should watch out for, and whether AI businesses have long-term staying power.

Greg explores how AI is being used in eCommerce, marketing agencies, and SaaS, and why some models succeed while others struggle. With rapid advancements, AI businesses can scale quickly, but they also face challenges like dependence on third-party technology, evolving regulations, and increasing competition.

Thinking about selling your AI business? We cover what buyers are actually looking for—like strong recurring revenue and proprietary data. And if you’re considering buying an AI business, Greg shares tips on how to spot real opportunities and avoid risky deals.

Whether you’re an entrepreneur, investor, or just curious about the AI boom, this episode is packed with insights to help you make smart decisions.

Topics Discussed in this episode:

  • The AI business boom & overheating market (01:26)
  • The risk of AI business obsolescence (02:46)
  • The best strategy: build fast & sell fast (05:46)
  • The reality of selling AI businesses (09:16)
  • eCommerce and AI media companies as a safer business model (12:03)

Mentions:

Sit back, and grab a coffee as we discuss the opportunities and pitfalls of the AI boom.