Hot in Enterprise IT/VC - What's 🔥 in Enterprise IT/VC #358
It’s that time in the cycle 👇🏼 Case in point 👇🏼 AI-related cos now stand at 134 or 60% of the current YC batch (The Information) I get it, it’s been a rough couple of years and investors need the next new new thing. The 🔥 investment categories went from consumer mobile to SaaS to dev tools and now AI - more importantly the once dead vertical SaaS sector will be on 🔥 again packaged as AI. For those infrastructure investors who once chased every git star and helped overfund the dev tools market, they can now pivot and point their infrastructure 💰 to all things AI and cover everything from dev tooling to vertical SaaS cos. And founders are smart - they will give VCs what they want to raise the 💰. The bigger question for former infrastructure/dev tools investor/now AI investor is what value will you be adding for a startup selling to veterinarian clinics? Here’s an example convo at a VC firm: AI Partner - I found this amazing SaaS co selling to veterinarian clinics, massive data moat, and about to add AI VC Partner - what do you know about veterinarian clinics? What value will you add? AI Partner - But it’s an ai co. It has a data moat. I can help them figure out how to use OpenAI, the pricing model… VC Partner - Ahhh, Ok. But do customers need or want and will pay? AI Partner - But it’s an ai co VC Partner - But what do you know about veterinarian clinics? AI Partner - It’s ai. I also have a cat and a dog and have been to a number of these. This reminds me of the Blades of Glory scene where Chaz Michael Michaels (Will Ferrell) is talking to Jimmy MacElroy (Jon Heder) about their upcoming routine. Yes AI gets the VCs going. I know, it’s a bit extreme, but I can promise you the once dead vertical SaaS market will be revving up again and rightly so given the specialized data sets many of these companies are sitting on. It still begs the question - isn’t this just a SaaS company selling to veterinarian clincs and not an AI business? Yes!!!! So let’s all get back to basic business and refocus on first principles: What problem are you solving? How big is the pain? How are you uniquely doing so 10x better than existing solutions? And finally, how will AI impact your offering and will customers get 10x better value and be willing to pay for it because AI ain’t cheap! Don’t get me wrong - this is a transformative technology but it will be so ingrained into every piece of software that we MUST get back to focusing on how your product is going to make the lives of customers infinitely better. As always, 🙏🏼 for reading and please share with your friends and colleagues. Scaling Startups
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What's 🔥 in Enterprise IT/VC #357
Saturday, September 2, 2023
Fundraising tips for the post-Labor Day sprint
What's 🔥 in Enterprise IT/VC #356
Saturday, August 26, 2023
IPOs are back? Nvidia 🤯 + AI still early in the enterprise + top of mind for CISOs
What's 🔥 in Enterprise IT/VC #355
Saturday, August 19, 2023
Sales reps need to win and get paid 💰- on hiring your first reps + scaling (Palo Alto Networks)
What's 🔥 in Enterprise IT/VC #354
Monday, August 14, 2023
On huge ambitions in today's venture market vs. what investors are telling you now
What's 🔥 in Enterprise IT/VC #353
Saturday, August 5, 2023
How not to blow your hard-earned Series A round + Andy Jassy - we're just steps into a marathon for Generative AI in the enterprise
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