As frontier AI labs expand into applications, where should startups build? a16z Partner Joe Schmidt joins HubSpot co-founder and CTO Dharmesh Shah to explore why the software opportunity is growing, and how founders can stay off the “Yellow Brick Road” the labs are racing down.

Drawing on HubSpot’s evolution, Dharmesh explains why founders should start with a narrow market, learn quickly, and solve the whole customer problem. They discuss where application companies can build lasting value as models become infrastructure: workflows, customer context, and the systems where work happens.

They also explore HubSpot’s AI experiments, the rise of one-person businesses, and why cheaper software creation could unlock markets that previously couldn’t support a software company.

Resources:

Follow Dharmesh Shah on X: https://x.com/dharmesh

Follow Joe Schmidt on X: https://x.com/joeschmidtiv

Read Joe’s essay, “Avoiding Death on the Yellow Brick Road”:
https://a16z.com/avoiding-death-on-the-yellow-brick-road/

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Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.

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