E435: Why Most Companies Aren’t Ready for AI

Highlights:

• What Mighty Capital learned from analyzing 550 companies
• Why traditional SaaS moats may no longer work in AI
• Why network effects and counter-positioning are gaining importance
• Why the IPO threshold may now be closer to $30–50 billion
• Why SC disagrees with the conventional power-law approach to venture
• How AI is shifting M&A from financial engineering to product innovation
• Why the best companies treat leaders like resource allocators
• How the Product Alpha Effect turns product innovation into investment alpha
• How Mighty Capital uses signals from 600,000 product builders
• The two metrics SC believes investors should watch in AI companies
• Why AI could force companies to reinvent distribution
• Which venture capital firms could survive the AI transition

Guest Bio:

SC Moatti is Managing Partner at Mighty Capital and Board Chair at Products That Count. She co-founded Mighty Capital around the Product Alpha Effect, a data-backed framework for investment outperformance, and has invested in companies including Amplitude, Netskope, and Groq. Earlier in her career, SC built products at Meta and Siebel Systems and authored an award-winning book on what makes a great product. She is a Stanford GSB alum, Kauffman Fellow, YPO member, and graduate of CentraleSupélec.

Sponsors:

Juniper Square:

Juniper Square is trusted as the operations partner by more than 2,300 private markets GPs worldwide, connecting technology, data, and fund administration services to help GPs fundraise efficiently, streamline operations, and improve the investor experience. Their unified platform centralizes data and connects LPs and GPs across every workflow, including fundraising, investor onboarding, compliance, treasury, and reporting. Today, more than $1 trillion in LP capital is managed through Juniper Square. For more information, please visit https://www.junipersquare.com/howiinvest.

AlphaSense:

AlphaSense is the AI-powered market intelligence platform trusted by 85% of the S&P 100, helping investment professionals make faster, more confident, data-driven decisions. Built for hedge funds, asset allocators, private venture capital firms, and investment bankers, AlphaSense uses advanced AI and powerful search across premium proprietary content to surface the insights that matter most—before the market moves. Elevate your research and stay ahead of the competition. Visit https://www.alpha-sense.com/howiinvest to learn more.

AlphaSummit Discount Code: AS26HII50

Are you interested in sponsoring the How I Invest Podcast? Please email David Weisburd at [email protected].

Stay Connected with David Weisburd:

X/Twitter: @dweisburd LinkedIn: https://www.linkedin.com/in/dweisburd/ Weisburd Pierce: https://www.weisburdpierce.com/

Stay Connected with SC Moatti:

LinkedIn:https://www.linkedin.com/in/scmoatti/

Questions or topics you want us to discuss on How I Invest? Email us at [email protected].

Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Pierce. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.