True AI native startups are just getting started as tech incumbents fail to impress at NRF 2025

Incumbents rarely change the world as was shown by the showfloor at NRF 2025 in New York this month. So says Kelly Goetsch, COO at Pipe17.

In a LinkedIn post, he flagged up examples of "big companies issuing shallow 'Hey, don't forget about us - we're AI too' type press releases".

"Big companies care far more about their existing business and the next quarter's revenue. True innovation from within is often a direct threat to the existing business and is therefore quickly snuffed out," Goetsch argued.

A good example of this is cloud, he added. "Back in ~2008, public cloud became a "thing." The established vendors all quickly relabelled all their products and offerings to include the word "cloud." Some actually delivered some incremental cloud-ish features - but nothing native."

"But by ~2011, a new crop of truly cloud native vendors arose and now dominate. We're seeing the same pattern now repeat with AI - established vendors marketing AI but not fundamentally changing their products, while the true AI native startups are just getting started."

He concluded: "I think about this a lot: "A 20-year US study found that 70% of wealthy families lost their wealth by the second generation, and 90% by the third." The same could be said of companies. It's awfully rare that a company makes it > 25 years. Complacency sets in, risks aren't taken, and they eventually fade into obscurity."

Pipe17

Pipe17, a provider of AI powered composable order operations, recently announced a $15.5 million funding round and appointed Goetsch as its first COO.

Goetsch joined from commercetools and also co-founded and ran the MACH Alliance, an industry consortium of 100+ vendors advocating for composable MACH (Microservices, APIs, Cloud, and Headless) technologies.

“Joining Pipe17 feels like history repeating itself. When I joined commercetools, I saw a massive market opportunity to redefine how businesses power e-commerce via headless and composable commerce infrastructure – and we did exactly that,” he said.

“Now, with Pipe17, I see the same potential - this time in pioneering the future of composable order operations. This platform is fast, scalable, and uniquely designed to unify systems and channels, enabling businesses to stay competitive and deliver exceptional customer experiences.”

Pipe17 powers the operations of brands such as Allbirds, Made In Cookware, Orthofeet and MaryRuth Organics, and logistics providers like Ryder, UPS and FedEx.

The funding round was led by LFX Venture Partners, with participation from current investors GLP and others, including convertible note funding.

“We are at a pivotal moment in commerce, where businesses are under immense pressure to adapt to an increasingly complex and fragmented landscape,” said Mo Afshar, CEO and Co-Founder, Pipe17.

“We are uniquely positioned to address these challenges and shape the future of commerce. This funding round, combined with Kelly’s hire, signals the next phase of our growth. We will continue to build - and scale - the infrastructure businesses need to unify their operations and unlock new levels of efficiency.”

RTIH AI in Retail Awards

RTIH, organiser of the industry leading RTIH Innovation Awards, proudly brings you the first edition of the RTIH AI in Retail Awards, which is now open for entries. 

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.

As AI sees increasing adoption in the retail space, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our 2025 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Thursday, 3rd July. This will kick off with a drinks reception in the stunning Conservatory, followed by a three course meal, and awards ceremony in the Garden Room.

Please email our Editor, Scott Thompson, if you have any questions or need further information: scott.thompson@retailtechinnovationhub.com

FAQs

Is there a fee to enter the awards?: No, it is free of charge.

Can I enter across multiple categories: Yes.

Do I need to complete all the sections in the entry form? No, but the more information you provide, the better chance you have of producing a successful submission.

Is there a certain timeframe for nominated projects, initiatives etc? Yes, nominated projects, initiatives etc should have been completed (or substantially completed) during the last 12 months.

Who has visibility of our completed entry form and what information will be public should we win or be shortlisted? Only our Editor, Scott Thompson, and judging panel will view submissions. The information provided in the summary section of the entry form will be made public.

Do you only accept entries from UK-based companies? No, we accept entries from all parts of the world.

What is the shortlists process? Shortlists will be announced in April 2025, then shortlisted entries will be sent to our independent judging panel who will decide upon the winners and highly commended submissions. Shortlisted companies will be invited to attend an awards ceremony at The Barbican in Central London on Thursday, 3rd July 2o25.

Do winners and highly commended companies receive post-event coverage? Yes, post-event coverage includes articles on our website and also an in-depth awards review in our printed magazine. There is also the opportunity for a company profile type piece to be published on our site and within our magazine.

When is the deadline for 2025 submissions? Friday, 23rd May 2025.

When will the 2025 winners be revealed? Winners will be announced at an event at The Barbican in Central London on Thursday, 3rd July. This will kick off with a drinks reception, followed by a three course meal, awards ceremony, and after party featuring DJ until midnight.

Who will be judging submissions? Details of our 2025 judging panel will be announced in the near future.