Prediction certainty 4/5 debate potential 2/5

Tunguz: AI will transform vertical SaaS at cloud computing scale

Tomasz Tunguz · AI: The New Platform for SaaS · Jun 2, 2017 · at 7:38

Tomasz Tunguz of Redpoint Ventures discusses how machine learning will expand SaaS beyond horizontal software into offline vertical industries.

0:00 / 0:39exact quote · 39.2s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“The big theme about machine learning is, it's going to change the world of SAS because all of a sudden, it's not just, The machine learning innovations will happen in the core categories that we've seen in the past. Those horizontal companies selling to customer support, customer service, sales, products, but it's also going to broaden out SaaS. We're going to see an expansion in the world of vertical SaaS, and these are just some of the examples. All of a sudden, all these offline industries, the key processes are going to be revolutionized, and that's a huge potential for innovation. The scale of which is similar to the mobile phone and cloud. That's how big of a wave we at Redpoint think it's going to be.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

More from Tomasz Tunguz

Assertion Not checkable as stated
Tunguz: AI app gross margins will expand as inference costs drop 95%
“And when we were looking like a typical software companies, probably at 75% gross margin. Yeah. AI software application companies are like a zero to 30%, and now their single biggest cost has been reduced by 95% overnight, and they didn't have to do a thing.”
Tomasz Tunguz Jan 31, 2025 ▶ 12:15 The Future of AI in B2B SaaS: Insights from Synthesia and Theory Ventures. Hosted by Jason Lemkin
Prediction Not checkable as stated
Tunguz predicts AI startup margins and multiples will match classic SaaS
“Before they used to have Challenging gross margins. And now they'll probably look the same as SaaS companies, which means you have pretty significant multiple and valuation expansion.”
Tomasz Tunguz Jan 31, 2025 ▶ 12:46 The Future of AI in B2B SaaS: Insights from Synthesia and Theory Ventures. Hosted by Jason Lemkin
Insight
Tunguz: Software startups tripling growth without AI are a hard sell
“If you're tripling, doubling without AI, it's a hard sell.”
Tomasz Tunguz Jan 31, 2025 ▶ 27:13 The Future of AI in B2B SaaS: Insights from Synthesia and Theory Ventures. Hosted by Jason Lemkin
Insight
Tunguz: AI is in a "Groupon era" where GTM outpaces product differentiation
“It's a Groupon era for AI where one company takes off and then there are 15 to 20 others because you're wrapping the API, you have a lot of capability out of the gate, and then long-term product differentiation probably matters less than go-to-market execution…”
Tomasz Tunguz Jan 31, 2025 ▶ 27:49 The Future of AI in B2B SaaS: Insights from Synthesia and Theory Ventures. Hosted by Jason Lemkin
Prediction Open · timeframe Jan 2028
Tunguz: Enterprise app counts will flatline while total software spend rises
“And so I think maybe what we see is application count stays flat or maybe even decreases, but the total amount of software spending increases because it's capturing some fraction of that labor spend.”
Tomasz Tunguz Jan 31, 2025 ▶ 35:57 The Future of AI in B2B SaaS: Insights from Synthesia and Theory Ventures. Hosted by Jason Lemkin
Insight
Tunguz: The 20-year SaaS go-to-market playbook no longer applies
“The playbook that we've built over the last 20 years, basically no longer applies. And we need to re-instrument and re-determine what this new world looks like.”
Tomasz Tunguz Oct 24, 2024 ▶ 4:11 The State of SaaS Go-to-Market l Theory Ventures General Partner Tomasz Tunguz #saas #b2bsaas
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 400 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.