
Naganand Doraswamy, Managing Partner and Founder at Ideaspring Capital, discusses how he is thinking about investing in AI. There’s a lot of confusion around AI right now. The hype is astronomical. Amidst this noisy environment, we’re trying to bring you some signal, some wisdom.
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Say, you have a non-AI SaaS product with a $5M ARR.
A competitor has come into the market with a new AI SaaS product addressing the same target customer.
You have to defend your turf and refurbish your SaaS product with AI to get the renewals.
>>>Sramana Mitra: So this brings us to what? Fall of 2021?
Chris Sinkinson: Yes. Right after all that back to school stuff, Dave and I were completely exhausted and one of our biggest competitors out of the Boston area reached out to us. They had been noticing that we’d been winning some deals and we were starting to step on their toes a little bit.
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There is a commonly held misconception among operators who do not understand positioning: We don’t want to invest in Positioning. We will be selling the company.
>>>Sramana Mitra: Now, between when you started with your first client and as you went along, how long did it take you to get to $1 million ARR?
Chris Sinkinson: As I’d mentioned, we charged a one time setup fee at the beginning. That hurt us a little bit. I would say it was around late 2015-2016 when we hit that $1 million ARR. The first million is the toughest.
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Perhaps you have come to the conclusion that you will not seek further funding.
Instead, you will look for an Exit.
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