If not us then who?

Jump to the key discussion at 7:50

1. Analyze Selected Y Combinator Startups

• Review Y Combinator seasons: X25, W25, F24, S24, W24, S23, W23.

• Identify startups that stand out or align with our interests.

2. Examine Each Startup’s Core Elements

• For each selected startup, document:

1. Problem: What issue are they solving?

2. Solution: How do they address it?

3. Industry: Which sector do they operate in?

4. Revenue Model: How do they make money?

3. Create a Structured Dataset

• Open a shared spreadsheet to log findings.

• By the end, we’ll have a data-driven understanding of promising startup models.

4. Use This Dataset for Deeper Research

• The collected insights will help define our sector of interest and potential opportunities.

• This will guide further exploration into emerging trends and successful business strategies.

5. Idea Formation is a Process, Not an Instant Spark

• Finding a startup idea isn’t about a Newton-style apple-falling moment—it doesn’t just strike suddenly.

• It comes from deep immersion, identifying the best possible outcome for a challenge, and refining the solution through research and iteration.

Revenue Models

1. Subscription: Users pay a recurring fee (monthly, yearly) to access a product or service. Netflix, Spotify, Figma

2. 🔥 SaaS: Businesses offer cloud-based software solutions with a recurring fee. Slack, Zoom, Notion

3. Advertising: Platforms provide free content or services while earning revenue from ads. Google, Facebook & Instagram, YouTube

4. Marketplace: The platform connects buyers & sellers and takes a commission per transaction. Airbnb, Uber, Etsy

5. Freemium: Offers a basic free version while charging for premium features. LinkedIn, Dropbox, Tinder

6. Transaction-Based: Customers pay per transaction or usage instead of a fixed fee. PayPal, Stripe, AWS

7. Licensing: Companies charge a fee to use their technology, patents, or content. Microsoft Office, Adobe Creative, Arm Holdings

8. Affiliate Marketing: Companies earn a commission for referring customers to other businesses. Amazon Associates, YouTube & Instagram Influencers, NerdWallet

9. API Monetization (Pay-Per-Use or Subscription): Developers & businesses pay per API request or subscribe to high-volume API access. OpenAI API, Claude AI API, ElevenLabs (AI Voice API)

• 🔥 SaaS is Most Common one for AI-driven businesses.

• 🌟 API Monetization (Pay-Per-Use or Subscription) is Growing Trend

💡 Which Revenue Model is Best for Your AI Startup?

• If you sell to enterprises → Enterprise Licensing + API Monetization

• If you want mass adoption → Freemium + SaaS Subscription

• If you build AI infrastructure (LLMs, APIs) → Pay-Per-Use API + SaaS

• If you monetize AI-powered automation → Transaction-Based Model

📌 Questions We Need to Ask Ourselves:

1. Which Y Combinator startups stand out, and why?

2. What common problems are these startups solving?

3. Which industries show the most innovation and growth?

4. What are the most common revenue models among successful startups?

5. Which monetization strategies align with our potential startup ideas?

6. How can we leverage this dataset to refine our business direction?

7. What market gaps exist that new startups can fill?

8. Are there any emerging business models that haven’t been widely adopted yet?

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This document serves as a record of my journey in developing a new business model. By documenting each phase, I aim to capture both strategic insights and challenges along the way. The foundation of this work is organized in my Notion workspace. For a deeper dive, check out: A Prelude to the Inevitable.