Bowery Capital

Early-stage venture capital investors focused on helping our founders build the next generation of B2B market leaders.

[Pat McGovern @pw_mcgovern]

https://t.co/mIANaZxMLL

[Pat McGovern @pw_mcgovern]

Field reps run their business from the road but use tools built for a desk. Enata (https://t.co/ILgzJjjm5f) fixes that with a voice-first AI platform to manage your territory on the go. A former field sales leader teamed up with two product & eng vets to build what he wished he had in the field. Proud to lead this one.

[Pat McGovern @pw_mcgovern]

I used Claude to scrape SEC filings/media reports/employee data, etc. on 85+ vertical AI companies to drill in on everyone's favorite metric - ARR per FTE.

Introducing Vertical Velocity.

[Pat McGovern @pw_mcgovern]

Norm Law LLP represents the first AI-native big law firm but not the last.

Instead of rolling up professional services firms, they are hiring lawyers, AI engineers, and building from scratch.

[Pat McGovern @pw_mcgovern]

My view: the labs will make immense money providing inference to this next wave of apps. Think of foundation models as raw commodities and vertical AI as the finished product.

Every company needs to leverage AI, but horizontal models and their UX won’t cut it for most business settings.

[Pat McGovern @pw_mcgovern]

But vertical AI founders should still pay attention to vibe coding.

It makes the bar for earning budget is higher. If ChatGPT can solve the workflow, or an ambitious associate can build an internal tool that does what your startup does, you've got a problem.

[Pat McGovern @pw_mcgovern]

Everyone's watching megafunds roll up accounting firms and inject AI. But the venture scale returns aren't in fixing old firms - they're in replacing them.

[Pat McGovern @pw_mcgovern]

A new class of AI startups is quietly redefining enterprise software.

They don’t sell off-the-shelf tools; instead, they build automation systems unique to each company’s needs.

Meet the rise of Custom Automation Platforms (CAPs).

[Pascal Unger @PascalUnger]

Are you a startup founder that is building a vertical AI company? If so, here's an investor you should have on your list.

This week's findfunding spotlight is on @pw_mcgovern from @BoweryCapital. He:

🗽 Is NYC based
🕵️‍♂️ In a past life, worked at a licensed private investigative agency
✉️ To get in touch, make sure to email him at [email protected]
➡️ Follow Patrick on X @pw_mcgovern

For more, check out our funder spotlight card below along with @BoweryCapital's profile on findfunding[dot]vc (link in comments).

[BuccoCapital Bloke @buccocapital]

Good piece from @matt_slotnick on what it means for software, especially the giants like WDAY/CRM/NOW, when there are more agents than people doing the work

[Jason ✨👾SaaStr.Ai✨ Lemkin @jasonlk]

Workday has 98% GRR at $9 Billion in ARR

No one leaves

Ever

[Matt Harney @SaaSletter]

THREAD - My "State of AI + Software" slides debuted at @BoweryCapital AGM:

Obviously, frontier models are getting better...

[Pat McGovern @pw_mcgovern]

For any NYC founders building Vertical AI, we are hosting a meetup this coming Thursday @ Bowery HQ. Come through! (Next post for details).

[Pat McGovern @pw_mcgovern]

Registration here: https://t.co/1II457dDLM.

[Matt Harney @SaaSletter]

For sellers looking at "founding AE" / get-in-early roles,

some framing

ServiceNow $NOW did $200m of AI revenue in '24

across 3,755 sellers =

$53,000 of AI sales per seller

Keep that in mind when thinking through quota $ you agree to

[Bowery Capital @BoweryCapital]

GTM is changing drastically for b2b companies. Check out Mike on the blog today discussing some of the major changes. Highlights:

❓ No more SDRs? Maybe. Agents can do that stuff.
🚂 GTM Engineers are instrumenting.
🤑 Pay Per Result will be the future.
💪 Complex deals, not yet productized...still early

https://t.co/UZHfyStuBh

[Pat McGovern @pw_mcgovern]

11 years after publishing v1.0, today marks the release of the 6th edition of @BoweryCapital's Opportunities in Vertical Software report.

In this latest update we offer up our view of eight key verticals and survey the wider vSaaS market.

[Pat McGovern @pw_mcgovern]

Last month I sat down with @lynx_collective to talk through some areas where @BoweryCapital sees opportunity to make investments in vertical AI.

By using AI to solve for industry-specific back office tasks, we see a wedge to build next-gen systems of record in categories like healthcare, energy, transportation, and financial services.

(link in following post)

[Pat McGovern @pw_mcgovern]

As the holidays draw near, we are throwing another edition of the NYC Vertical AI Meetup on December 17th. If you are a founder or operator building vertical tech you can RSVP below: https://t.co/tygmO7RwPj

[Bowery Capital @BoweryCapital]

Wild

[BuccoCapital Bloke @buccocapital]

Pretty crazy visualization of the private software unicorn "backlog"...and the 3 IPOs in the last two years

Yuck