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The Data Moat Is a Lie

Owning proprietary data isn’t a moat. It’s a mirage

Dave Friedman's avatar
Dave Friedman
May 07, 2025
∙ Paid

Every startup pitch today includes the same boast: "We have proprietary data." But in the AI economy, that’s like bragging about untapped oil in a warzone. The territory doesn’t matter unless you can defend it and extract value from it.

Data isn’t a moat. It’s an inert asset. A possibility. Moats form when data flows through product, through feedback, th…

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