Tunguz: High toil and labor shortages make buyers accept 75-80% AI accuracy
Tomasz Tunguz · Inside Theory Ventures: Tomasz Tunguz’s $688M Thesis on Go-To-Market Disruption · Sourcery with Molly O'Shea · Jan 23, 2025 · at 29:48
Tomasz Tunguz (founder of Theory Ventures) explains his investment framework for software and AI automation startups during an interview with Molly O'Shea.
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“We look for three things when we invest in software companies. We look for toil, lots of repetitive, really boring work. The second thing we look for is a labor market that cannot supply enough people to do that work. There aren't enough graduates or people who are excited to do it for the pay or people leave that job fairly often. And then the third is a hiring manager who desperately needs to fill that seat. And so going back to the point we were talking about Molly before, if these systems are only 75 to 80% accurate, well, The confluence of those three parameters, there's somebody who's willing to accept the 75 to 80% accurate solution.”
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