Vertex Network

How is AI is Reshaping VC? In our latest Vertex Roundtable Series, our General Partners Jonathan Heiliger (Vertex Ventures US), Tami Bronner (Vertex Ventures Israel), Zhi Jin Xia (Vertex Ventures China) and Genping Liu (Vertex Ventures SE Asia & India) discuss a burning question: How has the ChatGPT era transformed venture capital? Two years into the LLM boom, the impact has been profound and varies dramatically by region: ???? In Israel: The number of Gen AI startups has grown exponentially, making Israel third globally (after US and UK) in vertical Gen AI companies and VC funding. An impressive 20% of our portfolio companies there are now AI-related. ???? In the US: The prototype paradox has emerged - founders can build AI prototypes in 48 hours, but this speed creates both opportunity and challenges around defensibility. As one partner noted, "Despite being able to build a prototype over a weekend, building a product takes actually longer." ???? In China: ChatGPT's release created a "period of panic" as the market realized it was lagging behind US AI development. Now there's consensus to build a domestic AI ecosystem, though challenges remain with enterprise software adoption. ?? In Southeast Asia & India: The region is seeing AI companies adapt global models to local datasets and business challenges. India stands out with SaaS companies bundling Gen AI capabilities into global offerings. The pace of innovation is breathtaking - what used to take months of development can now be conceived in a night through conversation with AI. But that also raises the bar for what is a defensible moat. Investors, how has AI changed your due diligence process or investment thesis? Leave a comment below! ?? #VertexRoundtable #VentureCapital #AIinVC #GenerativeAI #StartupInnovation

Calling all AI nerds and geeks! ?? I'm thrilled to host the upcoming AI Agents Hackathon at GTC 2025 in San Francisco. Join me and fellow enthusiasts to geek out and build cutting-edge multimodal AI agents for exciting enterprise challenges. Let's push the boundaries of what's possible with large language models and have some fun while we're at it! We've got over $50,000 in prizes lined up, along with APIs and tools from industry leaders like Google DeepMind, ElevenLabs, LaunchDarkly and more! Spots are super limited (we're already oversubscribed), so don't miss out—register here to apply:?https://lu.ma/meofrw3d

?? Can AI startups thrive outside traditional AI hubs such as Silicon Valley and Tel Aviv? In this episode of our Vertex Roundtable series featuring Jonathan Heiliger (Vertex Ventures US), Tami Bronner (Vertex Ventures Israel), Genping Liu (Vertex Ventures SE Asia & India), Zhi Jin Xia (Vertex Ventures China), we explore the rapid development of AI and the role of global tech hubs. Despite the "reckless speed" of AI development making it easier than ever for small teams to build applications, we're witnessing a fascinating contradiction - tech talent continues to cluster in hubs like San Francisco and Tel Aviv. But is this about to change? According to Stanford's AI Index, Israel is emerging as a powerhouse in AI talent, combining deep expertise in machine learning with their entrepreneurial culture. As Tami noted: "Israel will become a category leader in vertical Gen AI as we became leaders in cybersecurity." Meanwhile, Singapore is attracting core tech teams despite its high costs, with AI boosting productivity and lowering average costs. Vietnam is leveraging its tech talent reputation while working to develop product design and business development capabilities. In China, Beijing remains the AI epicenter with the "Six Tigers" - major LLM startups, many emerging from Tsinghua University. The US sees a similar pattern, with foundational AI work concentrated in hubs while application-level innovation spreads more widely. The big question: Will Gen AI be the great equalizer? Could we see the rise of the "one-person company" that can "scale infinitely" from anywhere? Or will the human element prevail? What do you think? Is Gen AI the trigger that will democratize tech innovation beyond traditional hubs? #AIInnovation #TechHubs #FutureOfWork #VertexHoldings #GenAI #GlobalTech

New from me: My thoughts on how AI will upend the observability market ?? Observability is at an inflection point. The confluence of AI-generated code, non-deterministic systems, and agentic workloads will push today's tools beyond their limits. Debugging through dashboards alone won't cut it anymore, the complexity and volume of telemetry data is outpacing human capacity to sift through it. But AI may also be the solution. AI-driven observability has the potential to shift us from a reactive to a predictive paradigm, catching system failures before they happen rather than surfacing them after the fact. The question isn’t whether AI will transform observability, it’s who will win the race to define this next generation. Incumbents face deep structural challenges in adapting, while AI-first startups are rethinking observability from the ground up. This article dives into how AI-native approaches are emerging, where incumbents are vulnerable, and why at Vertex Ventures US we’re excited about investing in the future of autonomous systems engineering. Huge thank you to Ian Nowland, Uma Chingunde, Ilan Rabinovitch, Chris Cholette, Sandeep Bhadra, Andrew Fong, Rakesh Kothari, ??Matthew Boyle, Anish Agarwal, Richard Crowley, Rustam X. Lalkaka, Sesh Nalla, Yotam Yemini for sharing invaluable insights and notes on this article ?? Would love to hear thoughts from more infra MVPs and developers, how will AI change observability?

This week, we welcome back Northflank COO (and former Vertex investor) Chase Roberts as he shares his thoughts on how self-service can be a better business model for customers and companies alike. In short: Stop making your software so hard to buy, he says. Read more at the Vertex Angles newsletter: #cloud #cloudcomputing #saas #startups #startupadvice

?? Startup Exit Strategies: IPO or M&A? At Vertex, we believe the entrepreneurial journey is never a one-size-fits-all path. In another episode of our Vertex Roundtable Series hosted by Yaara Kassner, our General Partners Aviad Ariel (Vertex Ventures Israel), Noah Carr (Vertex Ventures US) and Piyush Kharbanda (Vertex Ventures SE Asia & India) shared nuanced perspectives on startup exit strategies for startups in their respective ecosystems. Key Takeaways: ?? Dream Big, But Stay Practical: The most successful founders balance ambitious vision with strategic adaptability ??IPO Remains the Gold Standard: While M&A can be valuable, going public often maximizes long-term value, especially in markets like India ???? Israel's booming M&A Market and why Regional Ecosystems Matter: Exit strategies vary significantly across markets like India and Israel The ultimate goal? Building enduring companies that create meaningful value – whether through public markets or strategic acquisitions. Founders, what's your perspective? IPO or M&A – which path resonates with your startup's vision? #VentureCapital #StartupStrategy #EntrepreneurshipInsights #Vertex

"I Know Kung Fu” Moments—Powered by Vectara In The Matrix, Neo wakes up and says, "I know Kung Fu." That’s exactly what we’re after at Vectara—enabling professionals across industries to access knowledge instantly and operate at an expert level. In this conversation with Vertex Ventures US, our CEO & Co-founder Dr. Amr Awadallah shares how Vectara is making this vision a reality. Imagine a world where AI doesn’t just give you information—it gives you understanding. Whether you’re a doctor diagnosing complex cases, a lawyer researching legal precedents, or an engineer troubleshooting a system, Vectara’s Retrieval-Augmented Generation (#RAG) technology is designed to accelerate expertise, enabling people to operate at the highest level in their industries. #GenAI #RAGaaS #TheMatrix #Vectara #AIassistant #AIagent #AgenticRAG

You know what they say about the best-laid plans of mice and men. It's true for startups, too: You could have the most beautiful, ambitious, elegant annual operating plan (AOP) for the year. But if that plan hinges on selling things companies don't need to customers who don't want to work with you, that AOP is doomed before it starts. In this week's edition of the Vertex Angles newsletter, hear from LaunchDarkly CRO Marcus Holm about how the voice of the customer is the crucial element that defines a successful AOP. #startups #startupadvice #AOP #businessplanning

Every enterprise engineering leader is thinking about AI right now. But what's still missing before dev agents can take over? ?? Last week in NYC, we packed the room with infra founders, staff+ engineers, and platform leaders to debate the future of autonomous software engineering over pizza and beer ????, in collaboration with Gitpod and Stainless ?? Christian Weichel (CTO and Co-Founder, Gitpod) shared the key blocker holding back dev agents in the enterprise and how the Gitpod SDK helps companies overcome it. ?? Watch the clip to hear it firsthand. Big news: Since this event, Gitpod has partnered with a Fortune 500 company to fast-track their first autonomous software engineering agents! ?? The future of AI in engineering isn’t just being imagined, it’s being built by the people in this room. Want to be there next time? Join us at infra.nyc, sign-up link in the comments for events in NYC and SF??

?? What makes a Successful Startup Exit? ?? In our recent Vertex roundtable episode moderated by Yaara Kassner, our General Partners Aviad Ariel (Vertex Ventures Israel) Noah Carr (Vertex Ventures US) and Piyush Kharbanda (Vertex Ventures SE Asia & India) dove deep into what truly defines a successful startup exit. Spoiler alert: It's not just about the dollars! Key takeaways: ?? Exit success is a nuanced equation of capital invested, valuation, and timing ? Early-stage investors see opportunities where later-stage investors might see challenges ?? A billion-dollar exit is great, but the story matters just as much ??The ultimate measure? Creating value for acquirers, employees, and the broader ecosystem Watch the full session here: https://lnkd.in/gkekV65j At Vertex, we're not just looking at numbers – we're looking at sustainable, meaningful innovation that creates lasting impact. #VentureCapital #StartupExit #InvestmentStrategy #InnovationEcosystem