StrictlyVC Download General Catalyst's plan to eat the $16 trillion services market
Sep 9, 2025
This week, Marc Bhargava, a partner at General Catalyst, shares insights on targeting the $16 trillion services market through AI-powered rollups. With a focus on innovative companies like Udia and Crescendo, he explains how they aim to disrupt traditional industries by embracing outcome-based pricing. Bhargava highlights the alarming statistic that 95% of corporate AI pilots fail, attributing this to the lack of deep expertise in applying AI effectively. The discussion also covers strategies for nurturing second-time founders and the role of relationship-driven businesses in this transformative landscape.
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Services Are The Next Big AI Frontier
- General Catalyst's Creation Fund targets the $16T services market using AI to automate 30–70% of tasks.
- Automation can shift service margins toward software-like profitability and create new roll-up opportunities.
From Togomi To Coinbase Prime
- Marc Bhargava co-founded Togomi to solve institutional crypto trading and later sold it to Coinbase, which became Coinbase Prime.
- That operational background shaped his approach to building applied-AI businesses and products.
Pair Founders With Industry Experts
- Incubate AI-native teams by pairing applied-AI founders with industry experts and fund their first acquisition rounds.
- Plan to deploy roughly $100M over the first two years for high-conviction roll-up plays.