So we’ve all watched the mega VC rounds for OpenAI, Databricks, Anthropic etc as VCs deploy billions into the AI winners at scale.

But just how much of venture capital overall is going to … the top names?

Far more than ever, per Redpoint’s latest data.

• In 2024, 31% of all VC capital went into just 20 deals.  A record.
• From 2020-2022, the top 20 deals were just 6%-8% of all VC capital.

Now there’s a lot going on here and part of the rush in 2024 and 2025 is that more capital is coming into VC again.

But it still shows where the energy and momentum are. Massive investments, at massive valuations, into the biggest leaders of AI.

At a scale we haven’t seen before.

So many VCs I’ve known for years are all-in on massive checks to the break-out winners here.  It’s the game most, at least by dollars, are playing today.

GBGH is back — with vengence — in venture capital.

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So when growth slows, the conversations change.

You start to hear:

• A ton of talk about raising prices. A lot. There are reasons to do this, but not because you are missing the plan.
• Deleting low-end and free editions. To force users and customers to pay more.
• Forcing customers to buy multi-year contracts. This hides churn, but really only defers it.  If smaller customers want to pay monthly and are happy, why force them otherwise?
• Threatening to sue customers over autorenewals, nonpayment, etc. You’re really going to go sue a customer?
• Hanging on to low performers. Because recruiting gets harder.  You start to hear a lot of excuses for underperforming management when growth slows.
• Moving customer success into sales. But then who will care about the customers, really?

2025 is year that AI takes over all of support and customer success … that isn’t sales.

This is how the 2 related but different categories are segmenting out.

A lot of support is questions and problems from existing customers.  Almost all of this is going to AI, as much as possible. And this trend is accelerating. Many are already seeing 40% or more of tickets resolved by AI in Intercom, Zendesk, Gorgias, Dialpad, Talkdesk, etc. And some are pushing this much higher.

But, where support is really sales, humans will handle it still.  We’re already seeing this bifurcation in e-commerce, because there the “support” chat is often used for sales questions. Which shoes, which size, does this run large, etc. AI for returns, humans to convince you to buy. Etc.

The same is happening, just more slowly across customer success.

Humans are still deployed in customer success for upsell. To get you to buy more stuff. Directly, or in “QBRs” and similar which now have become mainly about upsell.

And the rest is being handed off to AI, support, etc. Or just being eliminated for now, to be replaced by AI soon.

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That’s okay—plenty of successful startups have been built by solo founders. I’m investing in fact at SaaStr Fund in a solo founder right now. But I’ll be honest: it’s harder.

Most of us need someone to share the burden, especially in the early days when you’re doing everything yourself. Without a co-founder, you’ll need to be strategic about how you build your team and find ways to replicate the benefits a co-founder would bring.

Here’s how I’d approach it:

1. Hire an “Ex Post-Facto Co-Founder”:

This is someone who isn’t technically a co-founder but acts like one. It could be a VP of Product, Sales, or Engineering—someone who takes ownership of a big chunk of the business and cares almost as much as you do. They’ll help carry the load and make key decisions alongside you. Many solo founders find this person later, and it works just as well.

2. Prioritize Great Early Hires. And Save A Lot of Equity For Them.

This is what Eric Yuan did at Zoom as a solo founder. He brought 20+ engineers with him, with outsized equity packages.

Without a co-founder, your first 10 hires are even more critical. You need people who can operate independently, take ownership, and fill in your gaps. If you’re technical, hire someone who can sell. If you’re business-focused, hire a strong technical lead. These hires will define your company’s DNA and help you scale faster.

3. Build a Support Network:

You don’t have a co-founder to lean on, so you’ll need to find other ways to get support. This could be a mentor, an advisor, or even a peer group of other founders. These people can help you think through tough decisions and keep you grounded when things get hard [6].

4. Be Brutally Honest About Your Limits:

Without a co-founder, you’ll have to do more with less. That means being clear about what you’re good at and where you need help. Don’t try to do everything yourself—it’s a fast track to burnout. Delegate early and often.

5. Don’t Rush Into a Co-Founder Relationship:

If you’re considering bringing on a co-founder now, take your time. A bad co-founder is worse than no co-founder. Look for someone who complements your skills, shares your vision, and is 100% committed. If you can’t find that person, it’s better to go solo and hire great people instead.

Early-stage hiring is one of the most critical things you’ll do as a founder, and it’s also one of the hardest. Most founders aren’t naturally great at recruiting—it’s a skill you have to force yourself to develop.

Here’s how I’d approach it.

• Spend 20% of Your Time Recruiting
  You’re probably not spending enough time on this. Almost no one is.  Be honest.  Recruiting isn’t something you can delegate early on. You need to be in the trenches, meeting candidates, selling the vision, and making the call. If you’re not spending at least 20% of your time on recruiting, you’re not doing enough .
• Hire for the Stage You’re At
  Early on, you don’t need someone who’s scaled a company from $100M to $1B. You need someone scrappy who can roll up their sleeves and figure things out. But—and this is key—don’t fool yourself into thinking that person will grow into a senior leader if they’ve never done it before. Be honest about what you need now and in 6, 12, and 18 months .  You can hire someone from one stage above, but don’t hire anyone that hasn’t at least had a senior role at a start-up no more than 12 months ahead of where you are now.
• Force Yourself to Interview 30 Candidates for VP Roles
  Yes, 30. It sounds like overkill, but magic happens when you commit to this. You’ll stop settling for mediocre hires, and you’ll build a real pipeline. If you find the perfect candidate at #12, great—but plan for 30.
• Use Screening Filters
  Create simple tests to weed out unqualified candidates before the first interview. For example, ask engineers to complete a quick coding challenge or have marketing candidates critique your product. The best candidates will find these tasks engaging, and it’ll save you hours of wasted meetings.
• Beware of Mis-hires
  A bad hire at the VP level can set you back 6-9 months. That’s time you can’t afford to lose. If you’re unsure about a candidate, just don’t hire them. Get help from advisors or mentors to review your picks. Whatever it takes, avoid making a bad senior hire.  If you are sure, but they have holes, or are a smidge too junior, take that risk instead.  Don’t make any VP hire you don’t 100% believe in.
• Don’t Get Blinded by Resumes
  We all do.  But don’t.  A candidate with a flashy resume from Datadog or Wiz or even Cursor or Codeium or your competitor might look perfect on paper, but that doesn’t mean they’re the right fit for your startup. Focus on what they can actually do for you, not where they’ve been.
• Close Like Your Life Depends on It
  Don’t assume your charisma alone will close candidates. Bring in your co-founders, investors, and anyone else who can help sell the vision. And don’t underestimate the power of PR—podcasts, blog posts, and events can make a big difference in attracting talent.
• Hire an Internal Recruiter Early
  Once you’re hiring more than one person a month, it’s time to bring in an internal recruiter. They’ll help manage the process, coordinate with external recruiters, and keep things moving. Don’t wait too long to make this hire—it’s worth the investment.

Early-stage hiring is about building the foundation for your company. Get it right, and you’ll set yourself up for success. Get it wrong, and you’ll spend months cleaning up the mess. Be deliberate, be patient, and don’t settle.

So as we gear up for 2025 SaaStr Annual, May 13-15 in SF Bay, we wanted to take a look back at the top sessions from recent years.  One of the best was when Michael Seibel from Y Combinator came to share his guide to pitching your seed stage startup to VCs.

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