Everything on Market Entry

Vertical AI success depends on proprietary data access and high-economic-value problem solving. Thin wrappers on foundational models are obsolete unless they integrate unique data or address non-obvious challenges inaccessible to general providers.

Impact: Entrepreneurs should target domains with unique data moats and high stakes, avoiding generic applications that model providers can easily replicate or absorb.

— from Reid Hoffman on AI Valuations, SaaS Moats, and Vertical Strategy · Masters of Scale· Jun 27, 2026

Adi's focus on Colombia, a market with high smartphone adoption but fragmented financial infrastructure, allowed the company to capture significant share without competing in saturated markets.

Impact: Entrepreneurs can find alpha by targeting underserved markets with unique structural inefficiencies rather than following consensus plays in larger economies.

— from Adi CEO Reveals AI-First Fintech Strategy in Latin America · a16z Podcast· Jun 17, 2026