Case Study: Strategic Support for an Early-Stage AI Startup

Venture Partner: Evgeny Shadchnev, AI and Machine Learning Specialist

Founder & Startup Name: (Confidential – AI Technology Startup, UK)

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The Challenge

A fast-growing AI startup in the UK was facing a crucial question: as large language models (LLMs) become more powerful, how do we ensure that our product remains defensible and doesn’t get overtaken by general-purpose AI?

The founders were highly aware of the pace of AI development and worried that without a clear plan, their solution could quickly be commoditised or eclipsed by better-funded competitors. They needed a way to strengthen their position, reassure investors, and confidently move forward.

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How We Worked Together

Working closely with the founders, I led a series of structured advisory sessions designed to address both strategic and product-specific challenges.

We focused on:

• Clarifying the startup’s unique value proposition in a world where AI is evolving rapidly.

• Developing a defensibility strategy, pinpointing what would make their product valuable and distinctive over time.

• Analysing customer feedback and market expectations, to ensure that the product met real and specific needs that broad AI solutions could not easily replicate.

• Auditing product development processes, uncovering hidden strengths and ways to sharpen their edge against the competition.

  
  

Rather than just focusing on abstract strategy, we worked to create actionable steps that aligned product, market, and investor messaging.

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What Happened as a Result

Through this focused work, the founders gained clarity and confidence about their next steps. Specifically, they:

• Repositioned the product and business strategy, so that advances in AI would strengthen rather than undermine their value proposition.

• Identified customer insights and product features that larger AI players would struggle to replicate, providing a clearer competitive moat.

• Refined their investor pitch, enabling them to better address key concerns around differentiation and long-term positioning.

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The Outcome

Within a matter of weeks:

• The business regained investor confidence, with a sharper vision for sustainable growth.

• The founders refocused their product roadmap around clear, defensible value to customers.

• The company emerged with a stronger position and a more resilient strategy to navigate an increasingly competitive AI market.

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Key Reflection

This experience reinforced a core belief: founders who take the time to confront difficult strategic questions early are far better placed to build companies that endure.

In markets like AI, where rapid innovation creates both opportunity and risk, thinking deeply about product, strategy, and defensibility isn’t optional; it’s essential.

If you’re a founder facing similar challenges or thinking about how to sharpen your product’s competitive edge in an AI-first world, we’d be happy to have a conversation.