Software Snack Bites

#18 - Jake Saper (General Partner, Emergence Capital) - Moats in SaaS, AI's Impact on SaaS, Learnings from Salesforce, Zoom, Gusto & more

Aug 23, 2023

Jake Saper, General Partner at Emergence Capital, discusses SaaS business models. Topics include single-player vs. multiplayer product modes, various moats in SaaS, evolving SaaS pricing & business models, scaling anecdotes from Zoom, Guru, Textio, and more. They also explore how AI and LLMs will impact SaaS and how founders should use LLMs in their products.

01:05:06

Creator website

Episode guests

Jake Saper

AI Summary

Highlights

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Coaching Networks empower workers with real-time guidance and recommendations, creating network effects and improving business outcomes.

Startups can find opportunities in the LM space by targeting niches, exploring neglected use cases, or exploiting incumbents' vulnerabilities.

Unique insights, serving underserved markets, and delivering better user experience are key factors for success in crowded markets.

Deep dives

Coaching Networks: Using AI to Improve Job Performance

Coaching Networks use AI to help workers perform their jobs better. This concept involves using AI to provide real-time guidance and recommendations to workers based on historical data. Companies like Chorus and Guru have implemented coaching networks in the sales and knowledge management domains. The idea is to empower workers with valuable insights and suggestions that can enhance their performance and improve business outcomes. Coaching Networks are evolving and have the potential to create network effects in B2B environments, where users can learn from each other's experiences and continuously improve.

Evaluating Product Market Fit and Customer Desperation

02:04

The Opportunity for Startups

01:00

The Differentiation Perspective on AI Sales Tools

01:43

Challenges in Benefits and Cash Flow Solutions

04:13

Introduction

3min

Importance of Persistence and Evaluating Uniqueness

6min

The Role of Irrationality and Followership in Founders

3min

Multiplayer Elements in SaaS Products

9min

Product-Led Growth vs Sales Lead Strategies

17min

Building Communities Around Specific Personas in the Enterprise Space

3min

Coaching Networks Thesis and AI in Knowledge Management

24min

Jake Saper is a General Partner at Emergence Capital which has backed leading SaaS companies like Salesforce, Zoom, Gusto, Bill.com, and Veeva. Jake is a Board member of companies like Guru, Textio, Ironclad, Maze & many others. When I wanted to do a deep dive into SaaS business models, I could think of no one better than Jake and this episode absolutely delivered. We cover everything from single-player to multi-player product modes, various moats in SaaS, and how SaaS pricing & business models are evolving. We dive into specific anecdotes from companies like Zoom, Guru, Textio and others around how their products scaled. Finally, we end with how AI and LLMs will impact SaaS in the future and how founders should think about using LLMs in their products.

Where to Find Jake:

* Twitter: https://twitter.com/jakesaper

* LinkedIn: https://www.linkedin.com/in/jakesaper/

* Emergence’s Blog: https://www.emcap.com/thoughts

Where to Find Shomik:

* Twitter: https://twitter.com/shomikghosh21

* LinkedIn: https://www.linkedin.com/in/shomik-ghosh-a5a71319/

* Software Snack Bites Newsletter: https://www.shomik.substack.com

* Software Snack Bites Podcast: Apple Podcasts, Spotify, Google.

In this episode, we cover:

(01:11) - Learnings from Zoom, Salesforce, Veeva, Gusto & Others

(04:52) - Jake’s Framework for Evaluating Messianic Founders & Lasting Products