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Navin Chaddha, 55-year-old Silicone Valley Venate management director MayafieldThe EU bets on the ability to convert heavy areas such as consulting, law and accounting. Winning Lyft, Poshmark and Hashicorph, recently discussed Veteran investor in TechCrunch StrictyVC evening in Menlo Park Why “AI teammates” can traditionally create a similar edge in labor-intensive sectors, and why should the beginnings should target unpredated markets with giants. This conversation has been lightly edited for length and clarity.
You think that law firms, consultants and accounting services – collectively, a $ 5 trillion market will be completely reconstructed by AI-first companies operating a similar edge. Prove. What have you seen outside of PowerPoint presentations?
I think that for more than 50 years, the advantage of a company in the business, on all trends, motif-to-to-to-to-Internet, mobile clouds, social and now this is to see all trends from the AI period. The example of the deceased of the 1990s, the concept of this e-work came, I was: if I had a physical work, I just can’t be brick and mortar; I have to click and be a mortar. Then the outsourcing became a trend and was a great trend of offshore. You could not set up a program services company in one of India or the markets. The same thing happened with the supply chains and production – Chinese and Taiwan flowers. What is this new era with AI? Obviously, AI is 100x and with AI people, I hope it is united to make them better. I think this will help ReIMAGINE.
Many repetitive tasks will be made by AI … and there will be two models. One is that you grow organically. The second is that you can grow unusually. . .
Can you give a special example of how it will work?
What are the types of things that LLM or AI can do? Well, say that I have to carry out the seller’s force. Who wants to do this work? The man will go in and say: “I am your customer manager. You need to apply Salesforce.” Use the AI as a horse and whatever you can’t do is the one in the loop.
Now, if you start doing such things, more work done by people and AI can be done and [customers] Only when to pay for AI [they] use it.
And the market [entry] Then you won’t go [big consulting and IT companies] Accenture, such as infosys or tcs. Go after the neglected masses. There are 30 million small companies in the United States and 100 million in the world who can not get knowledge workers. Provide services as software. They say, “I need a reception. I need Scheduler. I need my website …” EU should be used [create] Start-financing forms, with some people [involvement] for negotiations. You do not compete with the cries of the world. Instead of charging a month instead of charging a clock, instead of charging a event, instead of charging an event, go after fragmented markets.
It is not a time-based calculation, the result based on the result.
This result is based on, yes. . . Cloud shipping is like this; The electricity is. . . The 80% of the user will be made by AI and have a total margin of up to 90% to 90%. People can still have a margin of up to 40% to 40%. You can earn net income from 70% to 70% to 70% to 70% of 60%. Believe me, most services are making money. There are no technical companies. Venture money and then live in public market money.
You just led a company with a company company A few weeks ago. This is the beginning of AI Tech Consulting. What did you see in early customer pilots?
I think this is the place where inorganic and organic compounds occur. [Gruve was founded by] Very successful builders with two service companies before [and] Bootstred and them reached $ 500 million each and earned $ 100 million for $ 50 million. They started this time and said, ‘What do we know? We know the safety. “Thus, the $ 5 million security consulting company acquired [that offers managed security services]. They said, “Let’s look at the people. All the growth from this point will happen through AI.” And they grew up on it [$5 million in revenue] Up to $ 15 [million in revenue] in six months. They literally have an 80% common margin in the true sense. The result is well-founded. Customers love him. Cisco loves it. They say, “Hey, I don’t get hack. Why do I pay for all these security people?” If you are abroad, [a vendor has traditionally charged] $ 10,000 per month. [Gruve] says: ” [You pay us] zero. If you are hacked, if you have an event, if I look, then you pay me. “
Do companies like McKinsey just can’t buy this AI capabilities? There are large businesses they do not want to lose.
Yes, I think that what will happen, that the dilemma of the innovation is the place. Enterprise companies with an enterprise program, SAAS did not create, did not want to accept [the model] because [SaaS companies] Charging companies monthly in five years. Enterprise companies also collected 20% maintenance. It was hard [for them] To get that medicine off the road and “Oh, I will fill you monthly.” The work model was the main thing in innovation. They didn’t do it. Thus, McKinsey and Accenture, with so much dislocation, will be engaged in serving their customers [which is why I advise founders to] Go after the neglected masses. Understand a unique market strategy and serve someone [an Accenture can’t come down market to serve].
But they will meet again. Thus, these small companies, who do not compete with them today, celebrated my words: they will compete with them in 10 years. And he has large companies – McKinsey, BCG, Accenture, TCS, infosys – all of the innovative dilemma [and are asking themselves]: When do I do that? [When do I switch to an outcome-based AI model?] Because as a public company, my income will descend from income from income from expected income to income.
You are you $ 100 million From your recent funds to dedicate “AI teammates” in the last fall. What is a true AI teammate against an AI tool?
There are many buzzwords in the industry. First Copilots, then AI tools, AI agents, AI teammates. Thus, Mayfield is the first of the AI teammate that is a digital parriage that cooperates with a person with a person shared with a person and achieves better results. It can be technology agent technologies or copilots that can be built. “I’m a teammate for one hour. I am a teammate.” The goal is not to replace; The goal is to collect each other and cooperate together.
When people began to talk about teammates and assistants, the novel sounded, but I wonder if they lost more human work. Is Silicone Valley a? Marketing problem?
It is completely right and I think we should not swell it. We have to make him happen. . .Well will be displacement, but people are smart. They are jokey. Horse AI here. We will re-share ourselves. We will rediscover ourselves. Today, the spending in the center of attention, but we will understand how to expand our markets and how to increase income. This happens with the wave of every technology coming. When Microsoft Word came to PC on desktop people thought [executive assistants] was off work. Then Excel came and the accountants who had calculations – everyone thought they were off work. We saw the same as Uber and Lyft. People thought taxi drivers would go. But what happened instead? Markets expanded.
Developing markets such as thesis, India, China and Africa have never been urban lines – no copper digest, therefore wireless, the cell will happen in the market. AI will do what people do not do so to serve this customer. So very long, I’m too drowning too much. There will be pain in a short time, but there will be no profit.
Speaking about coding, recently announced “Vibe coding “Deal, a six-month-old Israeli company and monthly income earned in the month and monthly income per month. This is another Israeli company purchased by Wix $ 80 million in cash. Does this math make sense to you?
In fact, no mathematics mean these days. We are in AI. You don’t know what to happen. I am surprised by $ 2.4 million [annual recurring] They only sold their income to $ 80 million. I thought it would be $ 800 million, isn’t it? [Laughs.] You don’t know in today’s world. This is a market.
How do you invest in that market?
Comes from people with proven investors in the secret recipe. They broke the code. This is not science; It is an art. This is like 10,000 hours [rule]: The more you train this, how good you are. Firms around 50 or 60 years – we saw all kinds of bubbles.
Number-a rule, you have your own north star. Fomo is for Fomo Sheep because there is no discipline and fomo because it is for Fomo Sheep. If these two or three things do not have their own strategy and fear, [you’ll do well]. Just remember one thing: for people [in this audience] Who are VCS, we are in cash management. We are not about to collect logos. We are going to take a small amount of money and make them bigger.
In this part [of the cycle]will earn many money. But I think 80% of people will lose money. They don’t know what they do.
