The Two Ways to Sell AI: Lighthouse or Landgrab?

Elena Burger is joined by a16z's Andy McCall and Joe Schmidt to break down two very different ways AI startups can go to market: the lighthouse and the landgrab. Should founders win a handful of marquee customers whose credibility unlocks an entire industry, or move quickly across a broad market where the ROI already speaks for itself?

Drawing on Joe's Lighthouse or Landgrab framework and Andy's experience building sales organizations at Samsara and Meraki, they explore how founders can determine which strategy fits their market, when social proof matters more than math, and why the current rush to adopt AI has created a rare window for startups to sell big software again.

They also get tactical on POCs, pricing and ACV, hiring early sales teams, moving from mid-market to enterprise, and why founders shouldn't spend too much time perfecting their GTM strategy before talking to customers. As Andy puts it: spend 1% of your time on strategy and 99% executing.

 

Resources:

Read Joe Schmidt's "Lighthouse or Landgrab": https://a16z.com/lighthouse-or-landgrab-how-to-pick-your-ai-sales-strategy/

Follow Andy McCall on LinkedIn: https://www.linkedin.com/in/amccall/

Follow Joe Schmidt on X: https://x.com/joeschmidtiv

Follow Elena Burger on X: https://x.com/VirtualElena

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Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.

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