The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Do Margins Matter in AI? | Is Defensibility Gone For Good? | Is Vertical SaaS Dead in a World of AI | What SaaS Rules Are BS and No Longer Apply in a World of AI | The Future of Venture: Why Chanel vs Walmart is BS with Byron Deeter
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Aug 25, 2025 Byron Deeter, a Partner at Bessemer Venture Partners and celebrated SaaS investor, discusses the shifting landscape of venture capital in the AI era. He questions if traditional metrics like margins still matter and explores the fate of vertical SaaS in a world dominated by giants. Byron highlights the potential for billion-dollar businesses to emerge from small teams and addresses the urgent need for innovative growth strategies amidst a rapidly changing market. He also shares insights on how AI could reshape workforce dynamics and investment strategies.
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AI Is A Generational Inflection
- Byron believes AI's stakes are far higher than previous waves and will create many trillion-dollar businesses.
- He says this era is a generational moment we'll tell our grandchildren about.
Evaluate Margins Over The Long Horizon
- Evaluate margin profiles as forward-looking, not only current gross/net margins.
- Invest when unit economics can materialize once the investment and scale phase completes.
Accept Dilution For Potential Hyperscalers
- Be willing to be a small investor in massive, capital-hungry winners if you believe in a generational outcome.
- Accept dilution when the upside is a potential hyperscaler worth trillions.
