Mary Ann Azevedo
June 12, 2024
27 minutes
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Vanessa Larco, a partner at New Enterprise Associates (NEA), believes that generative AI’s impact on the world of SaaS could be huge. The investor joined Mary Ann Azevedo on Equity to discuss her theories about how GenAI could alter the pricing models SaaS businesses use when charging customers.
Value-Based Pricing: A North Star for SaaS Products
"I think where [SaaS] people aspire to get to is value-based pricing," Larco said. "This is really, really hard." But she emphasized that it’s a goal that many SaaS products aim to achieve. "I think it’s a North Star for a lot of different SaaS products."
Generative AI and the Future of SaaS Pricing Models
Larco also touched on how incumbents’ AI strategies may impact the startup world in general, as well as what Apple’s new intelligence offering might mean for founders.
The Power of Consumer Investing
Despite being a big believer in the enterprise, Larco is still bullish on consumer investing. "I’m bullish on it," she said. "Look, I think the consumer is always going to spend. They just are." She emphasized that it’s not about what they’re going to spend on, but rather their priorities.
The Next Wave of Fintech: Less Neobanks and More SMB Focus
In addition to discussing the SaaS and consumer spaces, Larco shared her thoughts on what she believes the next wave of fintech will look like. "Spoiler alert," she said. "Think less neobanks and more SMB focus."
The Full Episode Transcript
For those who prefer reading over listening, check out our full archive of episodes over at Simplecast.
About the Guest: Vanessa Larco
Vanessa Larco is a partner at New Enterprise Associates (NEA). She has more than 10 years of experience in investing and is known for her expertise in SaaS, consumer technology, and fintech.
About the Hosts
Mary Ann Azevedo is a senior reporter at TechCrunch, focusing on fintech. She has more than 20 years of business reporting and editing experience for publications such as FinLedger, Crunchbase News, Crain, Forbes, and Silicon Valley Business Journal.
Equity Podcast: The Flagship Podcast of TechCrunch
Equity is the flagship podcast of TechCrunch, produced by Theresa Loconsolo. It posts every Monday, Wednesday, and Friday. Subscribe to us on Apple Podcasts, Overcast, Spotify, and all the casts.
Follow Equity on Social Media
You can follow Equity on X and Threads at @EquityPod.
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