Sapphire Ventures on LinkedIn: #vc #saas (2025)

Sapphire Ventures

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Is AI going to kill software? This is a question we’ve heard many times in thepast year. Our short answer – No. At Sapphire Ventures, we’ve seen how progress in AI has led to even more software being developed to automate even more workflows and tasks across many job functions. In our latest market memo, we share 6 reasons why we remain bullish on AI’s impact on software.👇1️⃣ AI is going to massively expand software’s TAM, tapping into IT spend, IT services spend, and ultimately, labor spend. AI-native systems could unlock $7.5T-$12.5T in value within a decade. 2️⃣ AI-native products will drive a new best-of-breed cycle by offering better pricing and capabilities. Early signs are emerging in data, code, customer service, and vertical applications like EliseAI and Glean, (Sapphire Ventures portfolio companies).3️⃣ Agentic systems, like digital workers, could consolidate capabilities from multiple apps, disrupting legacy software as they shift workflows to single services.4️⃣ “Build” won’t replace “Buy.” While AI will accelerate internal development, companies will still rely on third-party software. Building everything in-house comes with compliance, security, and capacity risks.5️⃣ AI will drive leaner company building by reducing development costs, enabling faster prototyping, and creating more flexible GTM strategies. Companies could permanently reset cost structures.6️⃣ AI could disrupt seat-based pricing, aligning costs with outcomes. New pricing models will offer startups competitive advantages, even as incumbents depend on higher-priced models like Co-Pilot.Download the full memo for deeper insights linked in the comments and let us know what you think. CC: Kevin Burke & Jake DellaPasqua#VC #SaaS

  • Sapphire Ventures on LinkedIn: #vc #saas (2)

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Sapphire Ventures

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Download the full memo for deeper insights. And let us know what you think - where you agree or disagree: https://bit.ly/47zao9b

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Tekki Web Solutions Inc.

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Exactly, AI is revolutionizing the software landscape, but not replacing it! 🚀 From expanding market potential to driving innovation and efficiency, AI is set to unlock trillions in value. Exciting times ahead for tech! 💡

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David Cutler

Sales Growth B2B Strategy & Actions - AI for Business Development Partnerships

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Hey Nino Marakovic - Long time since our Draper/MIT chat... and a long way from Austin! I am a fan of "Consequence" and Sapphire reports. I recently shared your Sales Landscape with my group at MIT Enterprise Forum.So Thanks! ... and FYI:https://www.linkedin.com/posts/cutler_aiinsales-salestech-realitycheck-activity-7245526545098838016-6XX0 - - David

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Nick Latz

Helping surgery centers keep their staff happy and revenue high

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Nice job Kevin Burke!

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