Hello, and welcome back to Equity, the podcast about the business of startups, where we unpack the numbers and nuance behind the headlines.
This is our Wednesday show, where we sit down with a guest, talk about their work and dive deep into the rest. This week, we had Nathan Baschez, the CEO and founder of Lex on the show. Lex is an AI-infused online writing tool, and Alex covered the company when it recently raised capital.
Alex really liked his last conversation with Baschez so we decided to have him on the podcast to talk through a few key topics that have been top-of-mind in recent months:
- How many AI-powered writing tools can the market support?
- How far into the generative AI moment are we, and how much we should anticipate the technology to improve?
- We also discussed the nuts and bolts of pricing an AI-powered service and other financial matters related to building a service today that leans on the tech.
That last question is not simply idle musing. Not too long ago, back in 2020, investors could be observed discussing the economics of AI startups, with the perspective at the time indicating that while the cohort might have more difficult early economics, their numbers (gross margins) would improve over time. But what about when a startup is using, say, an OpenAI API for its core AI work? Will similar efficiencies bloom?
Equity is back into its regular groove now that Disrupt is behind us — there’s more to come!
And before we go: Check out the UpFlip Podcast where they unravel how great businesses are built, how they are run behind the scenes and how their success can be replicated. We think you’ll love episode 79 where they featured this guest who transformed his passion for gardening into a $7.3 million-a-year venture. You can find the podcast on Youtube or where ever you listen to podcasts.
For episode transcripts and more, head to Equity’s Simplecast website.
Equity drops at 7 a.m. PT every Monday, Wednesday and Friday, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts. TechCrunch also has a great show on crypto, a show that interviews founders and more!