Sapphire Ventures

$8.5B has been invested into AI-native applications, with nearly 50 of these companies now generating $25M+ in ARR—a sharp increase from just 34 at the start of the year. ?? This growth isn’t just about adding AI to existing tools. It’s driven by applications built from the ground up to leverage AI as a core feature, creating new capabilities and transforming enterprise software. In our latest blog, we dive into: ?? What it means to be AI-native, with examples of how these companies stand apart. ?? Our 5-dimensional framework for evaluating AI-native applications, spanning design, data, domain expertise, dynamism, and distribution. ?? What’s next for AI-native apps and how they're changing enterprise software, including key trends like adaptive user-centric design, unlocking untapped data, and evolving business models. Check out our market map below, and read the full blog, AI-Native Applications: A Framework for Evaluating the Future of Enterprise Software, detailing the AI-native 5D evaluation framework, plus the players and ideas shaping the space. Linked in the comments below. ?? CC: Cathy Gao, Kevin Burke, Lou Segall, Aditya Reddy, Jake DellaPasqua, Misty L. #AINative #GenerativeAI #EnterpriseSoftware

From building a data-driven business to exploring IPO-readiness and lessons from this year’s $14B in GenAI enterprise spending—the Cerebral Valley AI Summit this week was packed with incredible insights and we’re thrilled to have been part of it. ? To kick things off, we teamed up with Eric Newcomer to bring together the brightest minds in AI for a dinner with startup CEOs and select press. We’re still buzzing from such an amazing event and are looking forward to the next one! A big thank you to Eric Newcomer, Volley, and Latham & Watkins for the partnership. CC: Jai Das, Cathy Gao, Casber Wang, & Anders Ranum #AI #CerebralValley #Innovation #VC

One of the biggest ways AI is revolutionizing the sales and GTM process? Shifting from broad, account-level targeting to precise, individual-level engagement—making sales and marketing more personalized and effective than ever. Sapphire Ventures’ Demi Obayomi joined Grace Gong live on LinkedIn earlier this week to discuss how AI is shaping sales processes and strategies, the key trends in the GTM software market, as well as his predictions for the future of GTM technologies. ?? Listen to the episode linked in the comments. #AI #GoToMarket #Sales #VentureCapital?

Congratulations to Cyera co-founders Yotam Segev and Tamar Bar-Ilan and the entire team on the $300 million Series D! We’re thrilled to co-lead this round and partner with a true innovator in cybersecurity, empowering businesses to secure their data at scale while driving innovation forward. ?? As AI adoption accelerates across industries, organizations face growing challenges in securing sensitive data amidst increasingly complex environments. Cyera's AI-driven platform is revolutionizing data security, harnessing advanced AI and machine learning to enable organizations to swiftly discover, classify, and safeguard their data. Learn more about why we’re excited to back Cyera and read the news linked in the comments. ?? CC: Casber Wang, Adam Liu, Justin Liu & Julie Nguyen #CompaniesofConsequence #datasecurity?

Congratulations to Kong Inc. co-founders Augusto Marietti and Marco Palladino and the entire team on the $175M Series E! ?? As organizations shift to an API-first approach, they face challenges in building AI applications quickly while ensuring security, governance, and scalability. Kong’s unified API platform addresses these needs, empowering businesses to accelerate development, reduce risks, and scale AI capabilities. ? We’re proud to continue backing Kong as it enables organizations to thrive in an increasingly AI-driven world. ?? Read more about the news at the link in comments. ?? CC: Anders Ranum & Justin Liu #CompaniesofConsequence #APIFirst

October 2024 shook up the venture landscape in unexpected ways. ?? Our latest market memo dives into October’s surprises across VC, crypto, and GenAI. ?? October saw $40B invested across 1.8K deals globally—the highest monthly funding since January 2023, largely driven by mega-rounds like OpenAI’s $6.6B raise and Waymo’s $5B round, which together accounted for 30% of the month’s total investment. ?? AI-native applications are gaining momentum, with companies like Perplexity, poolside, Sierra, Writer, EvenUp, and 11x at the forefront. Keep an eye out for our upcoming piece next week, where we’ll explore the companies driving this wave and what’s next for innovation at the application layer. ?? ?? Bitcoin’s price briefly surged past $93K, lifting the total crypto market cap past $3T for the first time since 2021. This rally, fueled by regulatory optimism and expanding use cases like stablecoins and prediction markets, is reigniting excitement across the sector. Check out the chart below and download the full memo for more (Link in comments) ?? CC: Kevin Burke, Lou Segall, & Jake DellaPasqua #VentureCapital #GenerativeAI #Crypto

On the heels of our recent enterprise AI investments, we’re excited to team up with Eric Newcomer for the Cerebral Valley AI Summit—this time in San Francisco for what promises to be an unforgettable day for those building the next generation of AI companies. ? With AI at a critical turning point marked by some of the largest rounds ever seen and startups showing real traction in the space, we’re thrilled to support this invite-only summit, which brings together top founders and CEOs, investors, and influential media. Don’t miss Sapphire Ventures President, Partner, and Co-Founder Jai Das's breakout session at 12PM PT, where he’ll dive into the upcoming wave of AI IPOs expected before year-end and into 2025, the real exit opportunities for AI, and what sets companies up for IPOs versus acquisitions. ??? If you’re a CEO or VC, it’s not too late to apply for a ticket! (See the link in comments) #AI #CerebralValley #VC

As AI gains momentum, creating community is proving to be a game-changer for women in the space. ?? Sapphire Ventures Partner Cathy Gao shared with Business Insider how building authentic connections is opening doors for women in AI. Her approach? Hosting events that go beyond networking—think fireside chats mixed with casual meetups, where real mentorship and collaboration can happen. ?“These relationships stick, and there are business opportunities that actually form from them." ? Read the article for more on how building community is shaping the future for women in AI. ?? #AI #WomenInTech #Community

Honored to be a top 10 VC in Venture Capital Journal's annual VCJ 50 ranking! We’re thrilled to be recognized as a top VC in the world for what we do best - backing visionary founders building Companies of Consequence.??? ?? Learn more about this year’s ranking (link in comments). #VCJ50 #VentureCapital #CompaniesofConsequence Disclaimer: “Tracing the VCJ 50”, Venture Capital Journal, November/December 2024. Sapphire did not provide compensation to participate and be considered within third-party ranking. Additionally, Sapphire played no role in the compilation of the third-party analysis. The full extent of the scope of firms and data included in the related surveys or evaluations is unknown.

What does it mean for an app to be truly “AI-native,” and how will this reshape competition in enterprise software? In a forthcoming piece of research, we’re distilling our insights on this question gathered from extensive product demos, conversations with technical leaders, and founders building with GenAI. Our market map preview below highlights emerging AI-native companies as just one aspect of this work, focusing on those that have raised at least $5M to capture the meaningful players shaping this evolving ecosystem. ?? We’ve also developed a 5-part framework to help us evaluate AI-native apps and identify their potential to create lasting differentiation: 1?? Design to enable new ways to interact and simplify complex tools with intuitive, powerful interfaces. 2?? Data to gain a competitive edge by leveraging proprietary data and advanced management techniques. 3?? Domain expertise to embed industry knowledge, transforming workflows to be faster and more efficient. 4?? Dynamism to deliver real-time personalization and adaptive experiences, creating seamless, engaging user journeys. 5?? Distribution to offer flexible pricing and deployment models that align closely with customer value, combining app and agent capabilities. Check out the emerging AI-native companies in the market map below, and stay tuned for our full blog, where we’ll dive deeper into this framework, the landscape, and our thoughts on how the space will evolve in the next few years. CC: Cathy Gao, Kevin Burke, Lou Segall, Aditya Reddy, & Jake DellaPasqua #AINative #GenerativeAI #EnterpriseTech