AI is transforming Vertical SaaS, unlocking markets that were once too “small” to target.
For years, niche industries like laundromats, chiropractors, and veterinary services were overlooked because their market sizes seemed limited, and high customer acquisition costs (CAC) made them unprofitable to serve, @astrange and @jamdac, write.
But with AI, that's changing.
By automating labor-heavy processes like inbound sales and back-office workflows, SaaS companies can increase customer spending and significantly reduce CAC, transforming these small markets into highly profitable opportunities.
This chart shows how AI replaces labor with software, expanding market sizes and increasing profitability for SaaS solutions. For example, a market of 10k customers paying $1k/month grows from $120M to $1.2B when AI enables new service offerings, like automated marketing and customer support.
We believe the long tail of Vertical SaaS is now accessible like never before.
For more from Angela Strange and James da Costa, check out the full story: https://t.co/7Df5osbEhT
New high-fidelity AI tools are extending the creative impact of filmmakers, designers, animators, & photographers.
This summer, a16z recently hosted a gathering of artists & technologists in New York to explore how AI's capabilities are enhancing their work.
With the support of companies like @elevenlabs, @HelloCivitai, @krea_ai, @ViggleAI, @udiomusic & @ideogram_ai, artists were able to demo emerging features and experiment with creative new integrations.
We're opening up access to our new flagship model, GPT-4o, and features like browse, data analysis, and memory to everyone for free (with limits). https://t.co/H2dB6w7Ynz
Plus users will get up to 5x higher limits, and earliest access to features like our new macOS desktop app and next-generation voice and video capabilities.
Say hello to GPT-4o, our new flagship model which can reason across audio, vision, and text in real time: https://t.co/MYHZB79UqN
Text and image input rolling out today in API and ChatGPT with voice and video in the coming weeks.