Artificial intelligence is the new steam, posed to introduce dramatic productivity increases across multiples industries and business functions. The maturity achieved by AI, whether machine learning, neural networks and recently by generative AI, marks a significant turning point. It opens a blue ocean of opportunity for highly innovative technology companies that are proficient in using data and AI models to solve complex business problems and challenges.
The massive investments, led by the global tech heavyweights, in the fundamental models at the core of AI technology development has resulted in a set of very advanced tools that can be used to create an infinite number of solutions and applications. It’s expensive to build the large foundation models that power AI, particularly generative AI, but once they exist, it’s relatively inexpensive to experiment with these models.
This is where the productivity promise is delivered. In the application of AI capabilities to deliver value to businesses and consumers.
According to McKinsey (2022), the global SaaS market is currently worth about $3 trillion, and estimated to grow to $10 trillion by 2030.
New B2B SaaS technology companies are coming to market with new products and services built on the AI fundamental models, that address new or existing needs that incumbents cannot or are too slow to solve, or serve their clients more competitively – whether on cost or on value delivered.
In order to succeed in their target markets, these new companies need to gather a set of characteristics :
- Understanding: the markets and problems they are addressing, of how AI can be used to solve those problems
- Be focused on growth. The best scalers will dominate their markets and segments.
- Be full time innovators: With the constant and rapid change in the underlying technologies, continuous innovation will be driver for sustainable competitive advantage
- Knowledge: If knowledge is power, in the AI world, data is knowledge. Access to relevant and unique data sources is key to continuously improve the AI models being used.
New technology companies that address complex business / sector problems with AI based solutions and services are facing a blue ocean of opportunities.
Alea Capital Partners is uniquely positioned to support these companies in their scale up, with capital and tools for a more efficient use of capital and access to non-dilutive sources of capital.