Baris Aksoy

At our recent LP Advisory Council meeting, LPs asked about headlines claiming AI is undermining SaaS. Our view is that the two are mutually reinforcing, not mutually exclusive. We are bullish on AI, and we believe certain SaaS leaders (with systems of record/action, first-party data and data rights, network effects, ambitious AI roadmaps, etc.) are well-positioned to capitalize on the agentic AI opportunity. There are multiple reasons for this. To start, consider what’s happening today with SaaS. The median company in the SEG SaaS Index grew 13% in Q2 while doubling its EBITDA margin year over year, with a top quartile growth rate above 20%. SaaS accounts for only 25% of overall software revenue in 2025, according to Gartner, so secular growth from on-premise to SaaS migrations should continue for years. Notably, this growth largely comes before many SaaS firms monetize a new wave of agents. Meanwhile, small AI startups with little revenue are burning cash and trying to sell. At the other end of the spectrum, Klarna’s much-hyped move to replace Salesforce with AI proved overstated; the CEO later said he was “tremendously embarrassed” by the fallout. SaaS pessimists might ask themselves: Has any large enterprise successfully replaced SaaS systems of record with an LLM? Rather than the AI-SaaS story being one of complete disruption, I believe it’s moving in waves, not unlike how businesses have historically incorporated new technologies:  ● Wave 1 (2023): “Get me some AI so we’re not left out” (a reprise of 1996’s “build a web page and we’ll figure it out later”). ● Wave 2 (2024-mid 2025): “Show me the budget and ROI. Also, why do we need an expensive AI model over a cheap one?” ● Wave 3 (late 2025): "I need enterprise-grade AI that integrates seamlessly, delivers measurable results and won’t disrupt core ops with experimental tools." We can’t say for sure what will happen next, but we do know how software brings value to the enterprise. SaaS is more than software code; it’s digital business intelligence using code to express that intelligence. That takes massive data sets and business experience brought to bear on enterprise functions, at scale and over time. It’s about executing tasks efficiently today, then innovating new tasks over time. For these reasons, we see a supercharged future of AI-enabled enterprise software that enhances productivity and innovation in dramatic ways. That future is less about ever-larger foundation models or narrow AI startups that complicate the stack. Instead, we see integrated software systems that orchestrate digital services to accelerate complex tasks, with agents as the 2026 step-function. AI is a massive force multiplier in that equation, but not a radical disruptor. At Thoma Bravo, we welcome the AI-SaaS conversation. We’re healthily paranoid as part of our mindset. But evidence, history, and business logic suggest that the AI revolution is set to accelerate SaaS value and growth, not undermine it.

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Frontier tech finds its ground zero in the Midcontinent The Midcontinent is now emerging as a pivotal region for frontier tech and investment. SVB’s recent insights spotlight this growth, particularly in industries like energy, infrastructure, and deep tech—momentum that the Midcontinent region is already capitalizing on. At Cortado Ventures, we’re doubling down on early-stage frontier tech that reimagines legacy industries. Our 2025 Midcon VC Summit in Tulsa underscored this momentum in an outstanding presentation by Josh Pherigo, who builds on that theme with this article. https://lnkd.in/gpFVeDVw

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What is the true cost of a technology solution for an asset manager? In the latest Alt Goes Mainstream podcast, Arcesium MD and Head of Client & Partner Development David Nable discusses how private markets technology infrastructure is being architected for the future and how operations and streamlining technology processes can be turned into a strategic advantage for asset managers. David and I had a fascinating conversation. We covered: ➡️ How David’s background in prime brokerage and fund admin helped him approach the technology problems for asset managers. ➡️ How asset managers should approach where and how technology can be a strategic advantage. ➡️ What does it mean to be a tech-forward asset manager? ➡️ How does the growth of evergreen funds impact how firms manage their data and serve investors? ➡️ What still needs to be built next to continue to improve private markets market infrastructure. Thanks David Nable for sharing your experience and wisdom on private markets and market infrastructure. Thanks Ultimus Fund Solutions for your support of Alt Goes Mainstream. https://lnkd.in/eshC3AFJ

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Excited to talk AI in GTM tomorrow at Clay's Sculpt conference. Mark Lail & I will be covering in detail the approach we've taken at Vanta, which has been tackled in three primary phases: 1. Identify opportunities to eliminate busywork through a field time study 2. Democratize great performance by automating top rep plays 3. Empower the field by enabling them to become builders This framework can be applied in any organization at scale, and it's been transformative in ours. We'll be spilling all the spicy deets tomorrow on stage!

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Gemini CLI extensions ramping with great list of partners to start - well done Snyk, Carey Stanton and team! "Gemini CLI is an open-source, AI-powered agent for your terminal, and extensions are its power-ups — pre-packaged, easily installable integrations that connect it to external tools including everything from databases and design platforms to payment services. Each extension contains a built-in “playbook” that instantly teaches the AI how to use the new tools effectively. In just three months since Gemnini CLI launch, more than one million developers are building with Gemini CLI! more here: https://lnkd.in/ePRa8XKT

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