Our view of the world
AI is the next platform shift
It’s happening again. Software is seeing its third platform shift in 25 years. With each wave comes a new set of winners.
The late nineties saw the shift from on-premise application software to SaaS, which would be the dominant trend for the next two decades. We led investments in Box, DocuSign, RingCentral, ExactTarget, Bill.com, Hubspot, and many other products that remain the industry standard today.
2010: Public cloud
To power the shift from enterprise data centers to the public cloud, companies needed a whole new set of development tools, systems management tools and security products, which led us to supporting infrastructure-focused teams at CircleCI, JFrog, BigID, Expel, AppOmni, and Honeycomb.
In 2017, we identified the rise of AI as the next dominant trend, ushering a new era of what we started referring to as intelligent software. Since then, 70%+ of our new investments have included some form of AI in the product.
In this new era of intelligent software, our relationship with work and technology will evolve, from software being something we work with to being something that works for us.
The net impact of this innovation is a transformation of the way we work
The story of the last 20 years has been cloud software replacing on premise software. That story is nearly done.
The story of the next 20 years will be software companies, enabled by AI, reaching beyond the enterprise technology budget to take advantage of untapped spend previously considered outside the realm of technology vendors. Automation and augmentation of work will massively expand the dollars available for tech companies but will require a whole new architecture and business model.
AI expands software TAM
Software companies can now go beyond merely “eating” the spend of old world, on-premises software vendors to now “eating” untapped spend previously considered outside the realm of technology vendors.
Our portfolio companies like Forter and Socure built their own machine learning models to keep our credit card information and identities safe from those who wish to do us harm.
Computer-vision based companies like Viz.ai and Proscia help doctors and other healthcare professionals reduce time to treatment.
NLP-centric companies like Observe AI, Regie AI, and Textio augment the workflows of customer support, sales, and HR professionals.
We believe the technology sector is only in the early innings of a new software supercycle catalyzed by companies adding intelligence to software.
We couldn’t be more excited to work with the entrepreneurs leading the change.