Leveraging AI for Go-To-Market Advantages: Insights from Tomasz Tunguz

In this episode, Kyle Coleman interviews Tomas Tunguz, General Partner at Theory Ventures, about his journey as an entrepreneur and VC, the future of AI in Go-to-Market, and reinventing sales workflows.

Key topics include:

- Theory Ventures invests in early-stage software companies that leverage technology into go-to-market advantages
- Cost of customer acquisition (CAC) is rising while ACVs are not, so CAC advantages are a competitive moat
- AI can reinvent workflows, create leverage, and help sellers reimagine their roles
- The best sellers map solutions to prospects' strategic initiatives; AI can help with pattern matching at scale
- 10X sellers powered by AI may warrant more equity compensation, not just cash incentives
- Tomasz recommends the book Narcissus and Goldmund about different paths in life reflecting the startup ethos

Timestamps & Highlights

00:37 - Tom's background starting a company at 17, working at Google & Appian, and 16 years as a VC
01:23 - Theory Ventures' focus on software companies using tech discontinuities for go-to-market advantages
02:58 - Rising CAC is a problem; any CAC advantage is a moat. Funnel analysis is key.
06:06 - Blindly copying other companies' playbooks doesn't work; think creatively about your own GTM
08:47 - AI can reinvent workflows and create leverage like a "robotic intern" doing repetitive work
11:43 - Implementing AI is about process owners using new datasets to re-architect workflows
15:58 - Outbound prospecting example: AI research and synthesis helps sellers focus on the best accounts
18:26 - Parallelization allows 10X sellers to run many more sales processes and engagement streams
22:01 - AI helps 10X sellers pattern match prospects' initiatives to tailor messaging and run deals
25:58 - Evolving to selling AI agents that act on behalf of users; sellers need to reimagine their roles
29:39 - Frame the business value of AI capabilities in a condensed, understandable way to drive adoption
31:28 - Follow Tom's writing at tomtonguz.com and learn about Theory Ventures at theory.ventures
32:37 - Book recommendation: Narcissus and Goldmund by Hermann Hesse about different paths in life