Twelve Labs’ Post

AI start-ups generate money faster than past tech companies🚀 According to Financial Times: “The AI start-ups in the cohort took a median 11 months to hit $1mn in annualised revenue after their first sales on Stripe, compared with 15 months for the previous generation of SaaS companies, the data showed.” “AI start-ups that have scaled to more than $30mn in annualised revenue achieved the milestone in 20 months — five times faster than past SaaS companies.” “Goldman Sachs this month has raised concerns about the profitability of AI businesses given ‘the AI winners of today are no longer capital-light businesses’, referencing the significant costs required for computing infrastructure to run and train AI models.” Interesting data. Would love to see the full sample of AI companies though.. Join 28k+ thought leaders from VCs like a16z, Accel, Index, Sequoia, and more to get free data-driven insights like this via https://lnkd.in/dV62qJ5y

This chart explains how C-level of enterprise companies should think now about how to become a GenAI/AI-first company before a startup takes over your business.

Thank you Amazon Web Services (AWS) and HubSpot for inviting me to speak at their Gen AI Summit this week! I joined Yamini Rangan and Steph Smith for a great conversation discussing the AI landscape and how HubSpot and Snowflake have embraced AI. It was a pleasure to share insights about AI adoption, data governance, and how startups can make an impact in the fast-paced AI era. It’s no surprise that AI is accelerating innovation, and it can be difficult for some startups to break through. Remember, you will stand out from the crowd if you can deliver value to customers. For all the startups out there: be curious and keep on innovating! 🚀 💡

The future belongs to AI startups...

Don't miss your chance to join a leading panel of #VCs as they share best practices for building and pitching your #AI and data strategy to investors. Learn how to: ⚡️ Raise capital in a fiercely competitive market ⚡️ Build a well-defined data strategy to attract investors ⚡️ Leverage technical partnerships and integrations to grow your ecosystem ⚡️ Implement a tech stack with burn rate, scalability, and customer experience in mind https://okt.to/nCXpvF

These numbers are crazy. The company is less than a year old, has raised a $6B Series B, and is valued at $24B. Pause and repeat that out loud. Here are some market caps of some companies for comparison: Delta Air Lines = $33B Biogen = $31B eBay = $27B Snap Inc. = $25B GoDaddy = $19B Building frontier models is super expensive and the reality is that there are only a handful of companies that can/are willing to invest in developing these models. xAI has the data (through X and Tesla), they have the hyperscaler (Oracle), they have the talent, and now they have the money. At this point, it's just following scaling laws. It's only a matter of time before they become a serious contender. #AInews #AIforeveryone #AIforall https://lnkd.in/epaJbRwG

AI start-ups generate money faster than past tech companies🚀 According to Financial Times: “The AI start-ups in the cohort took a median 11 months to hit $1mn in annualised revenue after their first sales on Stripe, compared with 15 months for the previous generation of SaaS companies, the data showed.” “AI start-ups that have scaled to more than $30mn in annualised revenue achieved the milestone in 20 months — five times faster than past SaaS companies.” “Goldman Sachs this month has raised concerns about the profitability of AI businesses given ‘the AI winners of today are no longer capital-light businesses’, referencing the significant costs required for computing infrastructure to run and train AI models.” Interesting data. Would love to see the full sample of AI companies though…

The SaaStr Annual 2024 event heavily focused on the integration of AI into SaaS. Here's a complete list of AI-focused sessions: Jonathan Rosenberg (Five9) - “10 Things Enterprise Customers are Demanding Today” Duncan Lennox (Google Cloud) - “6 Ways to Transform Businesses with AI” Yasir Motiwala (DeepL) - “Scaling DeepL’s Americas Business” Amruta Moktali (Skyflow) - “How AI Affects Data Breaches” Elizabeth Pemmerl (GitHub) - “How to Successfully Bring AI Products to Market at Scale” JD Weinstein (Oracle) / (Bain Capital Ventures) Aaref Hilaly- “AI Unleashed: Powering the Future with Cutting-Edge Infrastructure” Saanya Ojha (Bain Capital) - “Reducing Churn in AI Adoption” Jason M. Lemkin (SaaStr) - “Hiring a Great VP of Sales: AI Edition” Andrea Wang (General Catalyst) - “Supercharge Your GTM with Product-Driven Growth” Bradley Lawrence (Coursera) - “Driving GRR Turnaround with AI” Wyatt Jenkins (Procore Technologies) - “Scaling a Category-Defining AI Company” Tim Zheng (Apollo.io) - “Transitioning to Product-Led Growth and Scaling to $100M ARR with AI” John Kelly (Remote) - “How AI Could Have Prevented Common Business Mistakes” Anant Vidur Puri (Bessemer Venture Partners) - “AI Productized Services: The Next Unlock for SaaS” Glasswing Ventures, Zetta Venture Partners, and B Capital Group Mastering Growth in the AI Era: "How to Stand Out, Acquire Customers, and Raise VC Dollars" The SaaStr Annual 2024 made it clear that AI is becoming indispensable in the SaaS world. What really stood out was how AI is reshaping everything from scaling companies to optimizing customer success and product development. It’s exciting to see how it’s no longer just about efficiency—it’s about driving growth and opening new opportunities. I’d love to continue the conversation on how these developments can apply to our context and discuss the potential AI holds for what we’re building. Let me know your thoughts! #SAASTR #AI

As the age of AI-driven search continues to usher in, Perplexity, the young startup building it entirely from scratch, is reaping the benefits. Today, the Aravind Srinivas-led company announced it has raised an additional $62.7M in funding in a round led by Y Combinator’s former head of AI Daniel Gross, doubling its valuation to over a billion. Just a few months ago, it raised $74M in a series B round. While it is not surprising to see an AI company become a unicorn these days, what’s interesting is Perplexity has done it in a little over a year and in a space where Google dominates: Search. It plans to double down on this work with global expansion, driven by new partnerships in Japan and Germany, and a new Enterprise Pro plan designed specifically for organizations looking to take advantage of AI-driven knowledge discovery in their workflows. In a blog post published today, Perplexity said multiple leading enterprises, including Zoom, HP and Databricks, are using the new B2B plan and saving hundreds of hours at work. What exactly does Perplexity have on offer? At a time when Google and Microsoft have enhanced their existing search products with AI models like Gemini and GPT-4, Perplexity is taking them on with an AI-native search experience built entirely from scratch.

AI is set to break the dominance of professional services firms — but maybe not how you'd expect. We're bullish on companies COMBINING AI & humans to deliver comprehensive solutions that'll be hard to compete against. 🤖 💪 We bet on this with our recent investment in Mechanical Orchard (bringing humans and AI together to run migrations from mainframe to cloud that were once thought impossible). And we're keen to see more! 👀 Our own Jake Saper & Jessica Cohen just blew this trend out into a framework for founders looking for opportunities to dig into (and overtake) the market share locked up by 50-year-old behemoths for way too long. Read it here: https://lnkd.in/gptSYJWC