Donkeys, Not Unicorns

The era of "commoditized magic" in AI is fundamentally changing the rules for startups and venture capital. While it's easier than ever to build useful AI products, this has eroded the defensible moats necessary for venture-backed success, leading to an explosion of competition and making it difficult to build a "unicorn" company. Instead of chasing a single massive outcome, entrepreneurs should consider building a "herd of donkeys" by using AI to automate and manage a portfolio of smaller, niche businesses. This approach distributes risk, generates sustainable revenue, and allows founders to retain full ownership without relying on venture capital. For many founders, this may be a smarter strategy than the traditional high-risk, high-reward venture model.