AI itself is no longer a durable differentiator, argues guest author SC Moatti of Mighty Capital, who says the strongest startup moats are counter-positioning and network economies.

If your pitch still leads with “we use AI,” you’re describing infrastructure, not a business. 97% of products nominated for this year’s Products That Count Product Awards are deeply integrated with AI, showing AI as a differentiator is gone. The real moat investors seek is what will survive a well-funded competitor who could launch tomorrow with a better model. We analyzed Crunchbase data on 576 venture-backed, AI B2B companies that raised $50 million-plus rounds since the start of 2025 using Hamilton Helmer’s 7 Powers framework.

Counter-positioning is when a newcomer builds a model so structurally different the incumbent can’t copy it without destroying their own economics. Only 5% of companies leverage it, yet investors price that scarcity at a median enterprise value of 5.3x per dollar raised.

Network economies arise when a product becomes more valuable as more users join. They appear in only 5% of companies but command a 4.2x multiple. The B2B variant connects companies, and data compounds in ways that become harder to replicate.