Article

Good news: AI Will Eat Application Software

a16z · a16z.com

The macro argument for why agents expand rather than shrink the market.

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The question it answers

  1. Is there a real startup opportunity in building vertical AI agents?

Read with it

  1. The episode that defined the category thesis; 300 potential billion-dollar companies. ycombinator.com Video Vertical AI Agents Could Be 10X Bigger Than SaaS Y Combinator Lightcone (Garry Tan, Jared Friedman, Harj Taggar, Diana Hu)
  2. The earlier YC talk with the playbook for picking your vertical. ycombinator.com Video Why Vertical LLM Agents Are The New $1 Billion SaaS Opportunities Y Combinator
  3. A VC's operating manual for going from wedge to platform in a vertical. bvp.com Guide Building Vertical AI: An early stage playbook for founders Bessemer Venture Partners
  4. The expanded book with revenue benchmarks from Harvey, EvenUp and peers. bvp.com Guide Building Vertical AI (full book, PDF) Bessemer Venture Partners
  5. Market sizing: services are 10x the software market, and agents tap them. bvp.com Article The State of AI 2025 Bessemer Venture Partners
  6. Where a16z partners saw agent openings across industries. a16z.com Article Big Ideas in Tech for 2025 a16z
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