Short answer: Sam Nadler says Gamma raised a $68M Series B at a $2.1 billion valuation and is profitable. Jordan Metzner cites Andreessen Horowitz leading, $100M in ARR, 70 million users and 30 million gammas created monthly.
Watch this answer from Episode 21 (starts at 21:15) · Episode 21 notes and transcript
From Episode 21: Not your STANDARD Market, starting at 21:15.
Sam Nadler [21:15]: Amazing. Amazing. Okay. I'm gonna transition to three news stories. The first one, I think, is exciting. One, because we've covered Gamma as one of our favorite product tools. But Gamma, which is a really cool AI tool that allows you to build beautiful presentations within seconds, a really simple prompt. It'll kinda build the outline and then design the presentation, almost completely for you. There is usually a little bit of a prompt tweaking after that, but just raised a massive series b at 68,000,000. And, apparently, they're profitable at a $2,100,000,000 valuation with a really lean team of 50 people. Jordan, I know you've used Gamma. Angie, have you ever used Gamma?
Angie Westbrook [22:05]: No. I haven't used Gamma, but I've used some of the similar products in market too.
Sam Nadler [22:09]: Cool. It's fun. I recommend checking it out. But, Jordan, any top of mind thoughts as I know you're a fan?
Jordan Metzner [22:15]: Okay. Yeah. Let's first talk about some of the stats. So $2,100,000,000 valuation led by Andreessen Horowitz, 100,000,000 in ARR, a team of just 50 people. Let's say, according to them, 2,000,000 in ARR per employee, which is incredibly large. This is a market some of the other numbers are crazy too here. 70,000,000 users and 30,000,000 Gammas created every month. I mean, these are just bonkers numbers. Okay? First of all, PowerPoint was is a flat presentation format. You would expect AI to just kill PowerPoint. This has been completely dominated by Microsoft historically until Google Slides came into the picture. You would expect Google and Gemini and Microsoft with their copilot to present like something similar to the market to be competitive to this. And I think it just shows like how fast small startups can build a niche inside a market like, presentations and slide decks to build just a massive user base. And yeah.
Jordan Metzner [23:13]: I mean, it seems like Google Slides and Microsoft will probably still go after Gamma, but 70,000,000 users is just I mean, that's an incredible amount of users for a early stage company, and hats off to them.
Sam Nadler [23:25]: Yeah. I think as, someone who's in the start up building space, there's always the question that we get whenever we're launching a new product that's can't an incumbent build that? Can't Google build that? Can't Microsoft build that? And, yeah, they probably can, but I think Gamma's an example of they sometimes won't or, are, thinly spread or, don't have you know, can't innovate fast enough. So I think Gamma is a great example of, how you can disrupt some of these major players where it would theoretically seem easy for them to build.
Angie Westbrook [24:05]: Yeah. I think these are I'm I'm so fascinated with there's, like, a few of these companies, especially, that came out right in that 2022, 2023, generative AI launching pad that happened then that recognized if you leverage AI for because I really consider this not just like a tool to disrupt PowerPoint, but it's it's like a workflow automation and content creation. It's it's so much more than that. Right? It's like completely reimagining how you build a slide deck. And I think that's why, we're seeing that those types of, innovation in those areas are getting adopted. It's just it's such a much better experience than what we had before, and they know they're a customer. They're gonna be completely focused on this product, which I think is what makes them be able to stay ahead of the big ones. Right? And, the other thing I'll say that I loved about, once again, the operator nerd in me, but, like, they talk about profitability.
Angie Westbrook [25:13]: That is still relatively new in the VC world. I mean, it was only a few years ago when it was growth at any cost, and now you see these, like, really lean teams accomplishing awesome innovation, and doing it with a focus on, like, the business fundamentals at the same time. Awesome.
