The Scarcity Of Presence
Investors favor brands and companies that can be optimized through AI applications, thereby further strengthening their economic fundamentals and physical presence.
Why are "offline" startups attracting high investment at the moment?
10 Years ago, I helped food and consumer goods startups find the right path for their sales strategy. The startup world was fascinated by new online shops for physical goods and software that provided innovative service solutions.
Recent investment rounds show a growing share of funding for robotics applied to manufacturing, energy, logistics, and defense, rather than pure software startups. AI is meeting the physical world, where capital flows to companies that move a cereal packing in a supermarket as well as bits.
The advances in AI, robotics, and automation make previously low-margin, operationally heavy sectors more attractive by lowering labor intensity and improving efficiency. The question is, how many people will lose their jobs because of this, or can they quickly adapt and find a profession in the new AI-driven economy?
AI approaches help physical startups scale faster by automating workflows and reaching cash-flow positivity earlier, reducing reliance on endless funding rounds.
Capital from now on will be concentrated in sectors solving large, tangible problems, like energy transition, infrastructure, healthcare delivery, and advanced manufacturing, where solutions are inherently offline but enabled by tech.
This trend shows how significant the AI impact will be on our economy and society as a whole. With this hype, creating a code-based business solution that yields lower costs and time investment, we will see a dehumanization in many branches.
So, is your leadership felt through a screen, or only in a room?
Jens Koester is a strategic advisor focused on the structural friction between exponential technology and the enduring patterns of human culture. Through The Human Datum, he provides the intellectual architecture and foresight necessary for leaders to navigate the AI-driven decade with clarity and intentionality.
