Commerce Ventures’ Post

Pretty interesting article linked below Focus is on how AI-powered service businesses, unlike traditional service firms, could attract venture capital investment due to their potential for high margins and scalability. These businesses leverage AI to automate tasks, reducing the need for large workforces. This approach simplifies sales cycles, increases total addressable market (TAM), and could disrupt industries https://lnkd.in/gQZcGMwh

AI adoption in business faces four key barriers, as highlighted by Tomasz Tunguz, venture capitalist and General Partner at Theory Ventures, in his recent newsletter... but's it's absolutely not impossible for even early stage startups to get around them: 1. Understanding AI's capabilities: The rapid evolution of AI technology makes it challenging for business leaders to grasp its full potential. 2. Security concerns: The unpredictable nature of AI systems raises questions about data security, including model security, prompt injection, RAG authentication/authorization, and data loss prevention. 3. Legal uncertainties: AI introduces new complexities in contracts and intellectual property rights, leaving many legal teams grappling with unprecedented questions. 4. Procurement hurdles: Unlike established software, AI lacks standardized certifications for security and compliance, complicating the buying process. As a 1-yr old startup that has sold to large enterprises and even public companies, here's how Tofu has navigated these challenges: 1. Customers want guidance. They want vendors to not only inspire but prescribe how they should be using AI. We take a consultative and opinionated approach and proactively create plans for how customers can get the most value out of our product and AI tools for their Marketing efforts. 2. Everyone is figuring out what questions to ask and what to care about when it comes to security. Our approach has been to document as much as possible (and continually update since it's changing so quickly) and jump through the hoops when every customer wants you to answer their specific questionnaire (despite it have 85% overlap with what we've already documented). 3. We proactively drafted clauses that we can add to our order form that has specific language around which LLMs we use, in what capacity, how we use Customer data, assurances that we comply with existing privacy laws, and what we do to mitigate things like hallucinations. 4. It feels like we're a long way off from actual AI "certifications" and we've seen that every company has their own tolerance and appetite to let their teams leverage these tools. We try to ask questions and discover the current reality for each company early in the sales cycle so we can spend time with the right and have a clear sense of how to navigate as early as possible. No question these barriers can extend sales cycles, but overall, if you're building a product that has serious value and ROI to a business unit, your internal champions paired with some thoughtful processes on your end can make the hurdles not as high as you think 😉

Services are a mammoth industry; accounting for a whopping 63% of Australia's GDP. Yet as venture investors, we tend to skirt service businesses as traditional wisdom dictates they can't be scaled. With the advent of AI - things might be changing. We took a long, hard look at the evolving AI landscape and explored whether the AI-powered service model could fit the mould of venture capital returns. In this article, we outline eight key conditions that can help AI-powered service businesses thrive. Through startups like Hnry, PropHero and Matilda, we learn how they leverage AI to transform their industries while maintaining a focus on delivering exceptional outcomes for their customers. This is a nascent, exciting field, changing rapidly. All thoughts very welcome. https://lnkd.in/gPcB3gXQ #AI #CustomerExperience #ServiceBusiness #VentureCapital #Innovation #TechEnabledServices

As the tech landscape evolves, so must your fundraising approach. In our blog, we explore key trends like sustainable investing, AI-driven platforms, and the importance of diversity. Learn how to craft a compelling value proposition and leverage AI and data analytics to secure the investment your startup needs. Whether you're navigating regulatory challenges or building strong investor relationships, Rooled's expert guidance can help you stay ahead of the curve. Discover actionable insights and tips to enhance your fundraising strategy in 2024. LINK: https://lnkd.in/gMHedka2 #Accounting #CFO #Tax #Finance #AI #Startup

This report highlights the growing recognition among startup leaders that AI is not just a nice-to-have technology but a critical competitive advantage in today’s data-driven business landscape.

How Agentic AI is Transforming Enterprises – Insights from the Forum Ventures Report - Forum Ventures, an early-stage B2B SaaS fund, accelerator, and AI venture studio, today announced the release of its latest comprehensive report, “2024: The Rise of Agentic AI in the Enterprise.” The report offers a detailed analysis of the current state and future trajectory of agentic AI, providing valuable insights for businesses, investors, and startups alike. Based on a survey of 100 senior IT decision-makers across the U.S. and interviews with leading AI innovators, the report highlights the challenges, opportunities, and strategic priorities surrounding the adoption of AI agents in enterprise environments. The rise of agentic AI—autonomous, AI-powered systems capable of […] - https://lnkd.in/eP--NPrp

How Agentic AI is Transforming Enterprises – Insights from the Forum Ventures Report - Forum Ventures, an early-stage B2B SaaS fund, accelerator, and AI venture studio, today announced the release of its latest comprehensive report, “2024: The Rise of Agentic AI in the Enterprise.” The report offers a detailed analysis of the current state and future trajectory of agentic AI, providing valuable insights for businesses, investors, and startups alike. Based on a survey of 100 senior IT decision-makers across the U.S. and interviews with leading AI innovators, the report highlights the challenges, opportunities, and strategic priorities surrounding the adoption of AI agents in enterprise environments. The rise of agentic AI—autonomous, AI-powered systems capable of […] - https://lnkd.in/eP--NPrp

We’re pumped to be recognised by HFS Research as an innovative startup in two predominant categories for the Finance & Accounting value chain! 🎉 This recognition is a testament to our team's hard work, relentless innovation, and dedication to delivering exceptional value to our customers. Big thanks 🙏 to our customers, investors, and every team member who made this possible. Let’s keep pushing boundaries and setting new standards together! 💪 Link to the article in the first comment. #AnalystRecognition #TeamWork #Innovation #Growth bluecopa Raghavendra Reddy (RR) Satya Prakash Buddhavarapu

Leveraging AI for Success-- Check it Out 'AI for Startups: Leveraging AI for Success,' is designed to introduce startups and business teams to the fundamentals of AI. This comprehensive course includes an initial overview and 10 modules covering various aspects of AI, such as strategy, data management, and practical applications. The course has been beneficial for a range of professionals. An entrepreneur seeking to apply AI in administrative tasks said it provided the necessary foundation to start with AI. Similarly, an HR leader from a larger organization shared that the course helped her and her team of five to begin formulating their AI strategy. To access this course, visit www.scaleupedge.com. It's a resource for those looking to understand AI's role in business, whether you're at the beginning of your AI journey or planning to develop a detailed AI strategy. #ailearning #scaleupedge #aistrategy

A lot of VC money moving into AI, but not much M&A happening… yet Though as Thomas Smale mentioned on our SaaS Buyers’ Club episode, AI is a technology to watch because it will transform the way businesses operate and every business can incorporate AI in some way. And while we haven’t seen much M&A activity in the AI space yet, the M&A activity we have seen related to AI seems to be a strategic benefit to acquirers acquiring companies (see the Casetext acquisition by Thomson Reuters for reference). What are your thoughts?