🚀 𝐓𝐡𝐞 𝐟𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐀𝐈 𝐢𝐬 𝐯𝐞𝐫𝐭𝐢𝐜𝐚𝐥. 🚀 After decades of vertical SaaS investing, we learned that businesses can unseat incumbents, transform industries and how people work, and become highly profitable generational businesses. We saw a new class of LLM-native applications harnessing novel business models and AI capabilities to serve functions and even entire industries that didn’t meaningfully benefit from the previous wave of vertical software. It dawned on us: 𝐕𝐞𝐫𝐭𝐢𝐜𝐚𝐥 𝐀𝐈 𝐢𝐬 𝐜𝐡𝐚𝐧𝐠𝐢𝐧𝐠 𝐬𝐭𝐚𝐫𝐭𝐮𝐩 𝐩𝐡𝐲𝐬𝐢𝐜𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐞𝐧𝐭𝐞𝐫𝐩𝐫𝐢𝐬𝐞 𝐬𝐨𝐟𝐭𝐰𝐚𝐫𝐞 𝐥𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞. We’re seeing this emergent category address an even more massive TAM, offer new capabilities, serve new sectors of the economy, and grow at unprecedented rates. In Part I of our 𝐕𝐞𝐫𝐭𝐢𝐜𝐚𝐥 𝐀𝐈 𝐬𝐞𝐫𝐢𝐞𝐬, we distill why this moment is so significant in software history, the key opportunities driving this category’s massive value creation, and the core and supporting workflows underpinning these emerging businesses. We also highlight promising startups already gaining speed within their industries—including EvenUp, Abridge, Fieldguide, and more. Dive into Part I today and subscribe to get all future installments. ⤵️ H/T to our authors: Kent Bennett, Byron Deeter, Michael Droesch, Sameer Dholakia, Brian Feinstein, Aia Sarycheva, Maha Malik, Sam Bondy, Caty Rea, Alex Yuditski. https://lnkd.in/gw7D54u6
Bessemer Venture Partners
Venture Capital and Private Equity Principals
San Francisco, California 178,088 followers
For the entrepreneurs who want to build revolutions of their own.
About us
Bessemer Venture Partners helps entrepreneurs lay strong foundations to build and forge long-standing companies. With more than 145 IPOs and 300 portfolio companies in the enterprise, consumer and healthcare spaces, Bessemer supports founders and CEOs from their early days through every stage of growth. Bessemer’s global portfolio has included Pinterest, Shopify, Twilio, Yelp, LinkedIn, PagerDuty, DocuSign, Wix, Fiverr, and Toast and has more than $18 billion of assets under management. Bessemer has teams of investors and partners located in Tel Aviv, Silicon Valley, San Francisco, New York, London, Hong Kong, Boston, and Bangalore. Born from innovations in steel more than a century ago, Bessemer’s storied history has afforded its partners the opportunity to celebrate and scrutinize its best investment decisions (see Memos) and also learn from its mistakes (see Anti-Portfolio).
- Website
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http://www.bvp.com
External link for Bessemer Venture Partners
- Industry
- Venture Capital and Private Equity Principals
- Company size
- 11-50 employees
- Headquarters
- San Francisco, California
- Type
- Partnership
- Founded
- 1911
- Specialties
- Seed Stage, Early Stage, Growth Stage, Venture Capital, Consumer, Enterprise, Healthcare, and SaaS
Locations
Employees at Bessemer Venture Partners
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Sameer Dholakia
Partner at Bessemer Venture Partners. Investor, Board Member, Former CEO. Passionate about building great companies with great people.
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Jeremy Levine
Partner at Bessemer Venture Partners
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Jeff Epstein
Bessemer Venture Partners
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Robin Joy
Advisor | Board Director | Stanford DCI Fellow | former DocuSign SVP
Updates
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🚀 𝐌𝐚𝐬𝐬𝐢𝐯𝐞 𝐯𝐚𝐥𝐮𝐞 𝐜𝐫𝐞𝐚𝐭𝐢𝐨𝐧 𝐢𝐬 𝐡𝐚𝐩𝐩𝐞𝐧𝐢𝐧𝐠 𝐢𝐧 𝐕𝐞𝐫𝐭𝐢𝐜𝐚𝐥 𝐀𝐈. 🚀 At Bessemer, we're already seeing generational businesses—such as EvenUp, Abridge, Fieldguide, and many more—transform their industries. Based on our cohort's data, Vertical AI startups with meaningful scale (>$4M+ CARR) show early signs of being enduring businesses. (Special h/t to Caty Rea, Brian Feinstein, and Kent Bennett, who authored this research on Atlas.) 𝐅𝐢𝐯𝐞 𝐭𝐡𝐢𝐧𝐠𝐬 𝐰𝐡𝐚𝐭 𝐰𝐞'𝐯𝐞 𝐥𝐞𝐚𝐫𝐧𝐞𝐝 𝐬𝐨 𝐟𝐚𝐫 — 1️⃣ Complementary, not competitive: Vertical AI isn't trying to replace your legacy SaaS. It's enhancing it, unlocking new value in established markets. 2️⃣ Impressive financials: These startups already capture 80% of traditional SaaS ACVs and are just getting started. 3️⃣ Hypergrowth at scale: Vertical AI companies beyond ~$4M ARR and beyond? They're growing at a mind-blowing 400% YoY. 4️⃣ Efficiency matters: With 65% gross margins and a 1.1x BVP Efficiency Ratio, these aren't just growth stories; they're built to last. 5️⃣ Model costs? Not an issue: Only 10% of revenue goes to model costs. That's just 25% of COGS. These Vertical AI applications built on top of LLMs are already generating margins of ~6X the underlying model expenses. Get the full report to learn more about this massive opportunity — link in the comments. ⤵️ #verticalai #venturecapital #VC #startups #ai
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✨ 𝐏𝐫𝐞𝐝𝐢𝐜𝐭𝐢𝐨𝐧: Voice AI applications will unlock $10 billion of new software TAM over the next five years. ✨ The rise of multimodal models and AI Agents is driving the next wave of AI innovation, opening up a whole new world of possibilities. Unlike early text-based models, these advancements allow AI to expand into a wide range of applications, from voice and image recognition to video processing and agent-based workflows. 𝐅𝐨𝐫 𝐀𝐈 𝐞𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫𝐬, 𝐭𝐡𝐢𝐬 𝐢𝐬 𝐚 𝐠𝐫𝐞𝐞𝐧𝐟𝐢𝐞𝐥𝐝 𝐨𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲 𝐭𝐨 𝐜𝐫𝐞𝐚𝐭𝐞 𝐬𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐬 𝐭𝐡𝐚𝐭 𝐭𝐚𝐩 𝐢𝐧𝐭𝐨 𝐭𝐡𝐞𝐬𝐞 𝐧𝐞𝐰 𝐦𝐨𝐝𝐚𝐥𝐢𝐭𝐢𝐞𝐬, 𝐠𝐢𝐯𝐢𝐧𝐠 𝐀𝐈 𝐭𝐡𝐞 𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐭𝐨 𝐬𝐞𝐞, 𝐡𝐞𝐚𝐫, 𝐚𝐧𝐝 𝐬𝐩𝐞𝐚𝐤 𝐥𝐢𝐤𝐞 𝐡𝐮𝐦𝐚𝐧𝐬. This evolution unlocks AI's potential to augment the many tasks that rely on these abilities, significantly impacting our work. We expect voice AI applications to experience significant growth in the coming year. Looking further ahead, agent-first products have the potential to revolutionize business operations by setting new standards for the complexity and variety of tasks that AI can manage. Learn more from Michael Droesch and Aia Sarycheva in our State of the Cloud report—link in the comments. Here, we share a market map of several startups leading multimodal innovation. ⤵️ #artificialintelligence #startups #AIfounders #multimodal
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Bessemer Venture Partners reposted this
Congratulations to the Pledge 1% members on the Cloud 100 list this year! We're excited to celebrate you alongside Forbes, Bessemer Venture Partners & Salesforce Ventures! We're so proud of the impact you're making we're sharing it LIVE today on the Nasdaq Tower in Times Square! https://lnkd.in/etRHGNfs #Pledge1 #Cloud100
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🔎 Preview our latest Atlas Newsletter: 🛒 The return of Consumer Cloud 🇮🇳 Our flagship India SaaS report 📰 Bessemer news & highlights Read: https://lnkd.in/gHwzPh2g Subscribe: https://lnkd.in/g7fUBrm7
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Bessemer Venture Partners reposted this
Startup leaders must know ✨ 𝐓𝐡𝐞 𝐖𝐡𝐲, 𝐓𝐫𝐲, 𝐁𝐮𝐲, 𝐅𝐥𝐲 𝐌𝐞𝐭𝐡𝐨𝐝.✨ The leader who built AWS’s beloved user community programs from scratch breaks it down. ⤵️ The foundation of developer relations is a good understanding of the developer journey—the process or funnel that technical users go through, from discovering your product to purchasing. And did you happen to know? 𝐃𝐞𝐯𝐑𝐞𝐥 𝐬𝐡𝐨𝐮𝐥𝐝 𝐦𝐚𝐤𝐞 𝐮𝐩 𝐫𝐨𝐮𝐠𝐡𝐥𝐲 𝟏% 𝐭𝐨 𝟑% 𝐨𝐟 𝐲𝐨𝐮𝐫 𝐭𝐨𝐭𝐚𝐥 𝐨𝐫𝐠𝐚𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧’𝐬 𝐡𝐞𝐚𝐝𝐜𝐨𝐮𝐧𝐭. Adam FitzGerald, Bessemer's Operating Advisor for Bessemer and the VP of Developer Relations at HashiCorp, explains how to build, scale, resource, and measure the impact of developer relations at any startup — no matter if DevRel reports serves Marketing, Product, or Engineering. ✨ Get the guide. ✨ Link in comments!
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Bessemer Venture Partners reposted this
On 20VC, Toast's CEO Aman Narang shares five essential lessons on scaling its business to a $13.4 billion market capitalization. What you need to know about the Toast business today: 🍞 $1.2 billion in ARR with 48.4% from payments 🍞 Toast Capital has reached $1 billion in annualized loans originated 🍞 875,000 restaurants in the US (Toast has 112,000: 13% market share) 🍞 75% of locations are coming from inbound channels Thank you, Harry Stebbings! 👀 Watch the full episode—link below. We also share Bessemer's investment memo from when Kent Bennett first backed the business in 2015. ⤵️
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As part of our Operating Advisor spotlight series, we’re highlighting some of the incredible advisors within our network. With that in mind, please meet— Geeta C. ✨ Geeta is a seasoned expert in strategic Go-to-Market (GTM) initiatives with deep expertise in Cloud, XaaS, and hybrid cloud engagements. She has a proven track record of driving global business growth by expanding diverse teams, products, and services. As a current Senior Director at Accenture, Geeta leads GTM initiatives for Generative AI solutions across North America between AWS and Accenture. Additionally, she champions the establishment of Gen AI Innovation Studios in North America. Previously, Geeta was a Director at AWS, where she managed a team of senior leaders focused on strategic, high-value customers, ISVs, and startups across North America. Her responsibilities included revenue attainment, pre-sales, marketing, channel management, and P&L oversight across the region. In her role as an Operating Advisor, Geeta guides Bessemer startups, founders, and senior leaders in developing profitable GTM and channel strategies. We’re thrilled to partner with Geeta and glad to have her as part of the Bessemer team. Learn more about Geeta below⬇️
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On 20VC, Toast's CEO Aman Narang shares five essential lessons on scaling its business to a $13.4 billion market capitalization. What you need to know about the Toast business today: 🍞 $1.2 billion in ARR with 48.4% from payments 🍞 Toast Capital has reached $1 billion in annualized loans originated 🍞 875,000 restaurants in the US (Toast has 112,000: 13% market share) 🍞 75% of locations are coming from inbound channels Thank you, Harry Stebbings! 👀 Watch the full episode—link below. We also share Bessemer's investment memo from when Kent Bennett first backed the business in 2015. ⤵️
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Startup leaders must know ✨ 𝐓𝐡𝐞 𝐖𝐡𝐲, 𝐓𝐫𝐲, 𝐁𝐮𝐲, 𝐅𝐥𝐲 𝐌𝐞𝐭𝐡𝐨𝐝.✨ The leader who built AWS’s beloved user community programs from scratch breaks it down. ⤵️ The foundation of developer relations is a good understanding of the developer journey—the process or funnel that technical users go through, from discovering your product to purchasing. And did you happen to know? 𝐃𝐞𝐯𝐑𝐞𝐥 𝐬𝐡𝐨𝐮𝐥𝐝 𝐦𝐚𝐤𝐞 𝐮𝐩 𝐫𝐨𝐮𝐠𝐡𝐥𝐲 𝟏% 𝐭𝐨 𝟑% 𝐨𝐟 𝐲𝐨𝐮𝐫 𝐭𝐨𝐭𝐚𝐥 𝐨𝐫𝐠𝐚𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧’𝐬 𝐡𝐞𝐚𝐝𝐜𝐨𝐮𝐧𝐭. Adam FitzGerald, Bessemer's Operating Advisor for Bessemer and the VP of Developer Relations at HashiCorp, explains how to build, scale, resource, and measure the impact of developer relations at any startup — no matter if DevRel reports serves Marketing, Product, or Engineering. ✨ Get the guide. ✨ Link in comments!
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