How Can Startups Avoid the Cash-Burn Trap? A Lesson Silicon Valley Learns Every 10 Years

Ben Thompson, founder of Stratechery, recently nailed the blind spot in the generative AI business model.
1️⃣ Consumers don’t want to pay for software: People got used to “free + ads” long ago. Apart from content platforms like Netflix, it is extremely hard to keep ordinary people paying a monthly subscription for a pure utility app.
2️⃣ Consumers simply don’t care about productivity: The tech world is obsessed with “boosting efficiency”, but for the general public, what they want after work is entertainment, social connection and emotional value! “Write your email in one second” is essentially a business need (B2B), and the public won’t pay for it.

Hong Kong’s consumer traffic pool is limited, so monetising through ads or building a pure consumer app is very hard. It makes more sense to look at the B2B market!
Local SMEs, multinational corporations and even universities are constantly looking for ways to integrate internal systems, automate operations and cut costs. If you can solve real workflow pain points for a business, their willingness to pay and their loyalty will be far higher than those of ordinary consumers.
If you have a good idea, feel free to tell me and let’s explore it together.