Enterprise Weekly #414: AI's MAD Growth, NY Enterprise Tech Meetup, and More
In the 24/7 news cycle surrounding generative AI, this week JPMorgan and Verizon announced they were barring employee access to ChatGPT. Their reasoning is that it could compromise ownership of company and customer information entered into the chat.
While some customer-facing use cases like sales and marketing have soared in popularity, we question what data-sensitive use cases are suitable for generative AI. As is the case with many ML models, there are legal risks around security, compliance, and model risk management. In the enterprise, these are important mandates. However, ML models can be complex and may have undetermined behaviors, so running them for business-critical use cases within heavily regulated industries like financial services, insurance, and healthcare, is not yet feasible. This ushers in a new demand for measurement of and monitoring for changes in risk and other metrics, a service offered by MLOps monitoring solutions such as our Work-Bench portfolio company Arthur.
According to Gartner, the AI software market will reach almost $135B, showing market growth from 14.4% in 2021 to 31.1% in 2025 — far outpacing overall growth in the software market and largely driven by generative AI’s boom.
So, despite the actions taken by JPMorgan and Verizon, the proliferation of generative AI in the enterprise seems inevitable…eventually. Matt Turck calls out generative AI as “arguably the formation of a new mini-bubble” in publishing his annual, massive 2023 ML / AL / Data Landscape. Don’t miss our portfolio companies who landed on the landscape – Cockroach Labs, Spring Health, Arthur, and Alkymi.
🍺 Join more events:
March 2: The Modern GTM Meetup with a panel of revenue leaders from Pace, 1Password, Cockroach Labs, Vanta, and Gem.
March 15: Our NY Enterprise Tech Meetup with a VC Panel on Today's Enterprise Seed Landscape! Our panelists will dive into which sectors VCs are looking to invest in, raising a Seed round in this environment, how to scale ahead of a Series A raise, and more. Sign up before we sell out!
📚 Read more news:
Business Insider: Elite Investors Are Privately Warning That The Market Is Headed For a 2nd Wave of Pain
CNBC: DOJ Preps Antitrust Suit to Block Adobe's $20 Billion Figma Deal
Crunchbase: VC Dollars To Black Startup Founders Fell More Than 50% In 2022
The Information: Inside Stripe’s $55B Pitch to Investors
WSJ: Generative AI Helping Boost Productivity of Some Software Developers
Company: Cockroach Labs
Role: Account Executive, Enterprise - Northeast
Technology: Cloud-Native SQL Database
Funding: $633M from Greenoaks, Altimeter Capital, GV, Tiger Global, Index Ventures, Benchmark, FirstMark, Redpoint, Work-Bench, and others
🌟 Company of the Week 🌟
Sublime Security raises $9.8M led by Decibel
Risk / Security • Seed • Washington, DC
Founders: Josh Kamdjou (CEO), Ian Thiel (COO)
IrisCX raises $4.6M led by Arthur Ventures
Sales / Marketing • Seed • Calgary, Canada
HireLogic raises $6M led by Joseph P. Landy
HR Tech • Series A • Dallas, TX
Chronicle raises $7.5M led by Accel and Square Peg Capital
Collaboration / Productivity • Seed • San Francisco, CA
Scoot raises $12M led by Woodland Capital
Collaboration / Productivity • Series A • Dallas, TX
CyberSmart raises $15M led by Oxx
Risk / Security • Series B • London, UK
Entitle raises $15M led by Glilot Capital Partners
Risk / Security • Seed • New York, NY
Replicate raises $17.8M led by Andreessen Horowitz
Data / AI / Machine Learning • Series A • Berkeley, CA
Metomic raises $20M led by Evolution Equity Partners
Risk / Security • Series A • London, UK
Vitally raises $30M led by Next47
Sales / Marketing • Series B • New York, NY
Finch raises $40M led by General Catalyst and Menlo Ventures
Future of Work • Series B • San Francisco, CA
Tome raises $43M led by Lightspeed Venture Partners
Collaboration / Productivity • Series B • San Francisco, CA
Quantum Motion raises $50.5M led by Bosch Ventures
Infrastructure / Dev Tools • Series B • London, US
ProsperOps raises $72M led by H.I.G. Growth Partners
Infrastructure / Dev Tools • Series A • Austin, TX
The AI landscape is something to keep our eyes out for in the VC world for sure. Which category of AI specifically do you think will blow up??