Startup Founders Pressured to Prove AI Won't Replace Their Business

Venture capitalists are increasingly wary of business models that could be disrupted by AI, forcing founders to justify their long-term relevance.

As 2027 approaches and the debates heat up, the specter of the "great replacement" is resurfacing. But not the one you might expect. In the French tech scene, the real fear is elsewhere: that artificial intelligence could make entire business models obsolete. To raise funds, startup founders now have to convince investors that their business can withstand the rapid advances of AI.

Alexandre Fitussi, founder of Beanstock, a platform that streamlines real estate investment, has had to master this art of persuasion. "It's impossible to avoid questions about artificial intelligence," he says. "Investors are almost obsessed with it. It's all they think about, to the point where the business plan has become secondary compared to the uncertainties around AI. You have to prove you can withstand it and that your business won't be replaced."

"The business plan has become secondary"

Do investors on the other side of the table see things the same way? Has the business plan really become "secondary" in the face of the AI threat? "Corentin Orsini, founder of Super Capital and Cercle Privé, offers a more nuanced view: "Go-to-market strategy and customer relationships are still essential. Yes, barriers to entry have come down: what used to take a week of development can now be done in an hour. But you still have to know how to win customers."

Still, our expert admits he's already "turned down investments in companies" out of fear that their business could one day be replaced by AI. So how can founders reassure investors that their startup can withstand this threat? "Honestly, no one is immune. Any company could see its model challenged. But those that offer only a single feature are the least attractive to us. Overnight, that feature could be replaced by a single line of code," warns Corentin Orsini.

Another red flag: a payroll that's too heavily weighted toward administrative and management tasks. "We think a new entrant in the same market could do without much of that headcount and become more competitive." Finally, the investor warns companies that are reluctant to adopt AI: "Refusing to integrate it sends a very bad signal. Using AI to evolve your product is the bare minimum."

Highly vertical SaaS are protected

On the other hand, some startups still seem to have investors' favor, no matter how spectacular AI's progress may be. "Highly specialized B2B SaaS, focused on niche markets that AI hasn't yet penetrated, remain attractive investments," says Corentin Orsini.

Companies with more hands-on, field-based activities are also managing to stand out. "Today, there are investors who are all-in on AI, and others who prefer to fund more traditional businesses that are less exposed to its disruptions. Startups in these sectors continue to attract capital." By contrast, it's mainly generalist software companies that are suffering from this polarization. "These businesses are a kind of soft middle, increasingly threatened by AI. Many of them now have little reason to exist," concludes Corentin Orsini.

This article was automatically translated from French. Read the original version: https://www.journaldunet.com/start-up/1557753-les-vc-ne-pensent-qu-a-ca-pour-lever-des-fonds-les-fondateurs-obliges-de-prouver-que-l-ia-ne-les-remplacera-pas/