Hello, rainmakers.
Investing in technology used to be relatively easy. Find a solid SaaS business, be impressed by the recurring revenue, get a nod from the retention rate, and hire multiple companies to do the work for you. That playbook is now being quietly shown out the door.
We heard such brilliant insights all day long at the Rainmakers Summit, but how will all this impact our future actions?
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At Rainmakers Summit, AI is more than just a topic; of The point of the story. Two sessions focused on it, but it quickly took over the conversation throughout the day. If you’re not talking about AI in today’s trade, you’re probably talking about AI.
Tom Dunlop, CEO of Summize, said: “AI has disrupted the entire way we work.” There is no disputing this.
Investing in technology used to be relatively easy. Find a solid SaaS business, be impressed by the recurring revenue, get a nod from the retention rate, and hire multiple companies to do the work for you. That playbook is now being quietly shown out the door.
The question has changed from “Is this a good business?” “Will this still be viable as a business in 18 months?”
In one panel, Codurance CEO Mash Badar and YFM Equity Partners Partner Mike Clarke explored how AI is reshaping the landscape, while Codurance Managing Director Steve Lydford outlined the impact of AI across three areas: optimization, automation, and differentiation. Sounds easy, but the final point is to do the heavy lifting. If we don’t maintain our presence, we risk being replaced.
They agreed that “SaaS isn’t going away, but it’s no longer the default answer.” As Zygens co-founder Charlie Bartle pointed out, companies are turning to AI-driven tools first. Neil Vose, CEO of EHE Venture Studio, took a more reassuring view, suggesting that SaaS and AI are likely to complement each other.
Execution is what makes things real. Take up Moneypenny. Under CEO Jesper With-Fogstrup, the company introduced an AI voice agent to support growth and expand into new markets. But it didn’t work perfectly at first. The technology lacked context, was error-prone, and didn’t sound particularly human.
In other words, it’s typical early-stage AI.
The turning point came by introducing controls, tailoring the system to specific use cases, and combining it with human input, rather than replacing people completely. This hybrid approach, using AI where it works and talent where it matters, is emerging as a more investable model.
AI is also forcing founders to make bigger strategic decisions. As Jesper highlighted, companies must now decide whether to build or buy capabilities, whether to go all-in on AI or incorporate it into existing products, and which parts of their operations may become obsolete. These aren’t small product tweaks; they reshape the entire business.
There is also less room for bluffing. As Alex Craven, CEO of The Data City, pointed out, companies need to properly understand the technology they are using. Simply labeling something as AI-powered is no longer enough. Investors are asking tougher questions, and vague answers are easier to find.
Outside of London, regions such as the North West are gaining momentum. Talented talent, low costs and a willingness to take risks create the conditions for technology companies to grow without relocating. The opportunity is clear, but it requires early support for the idea and acceptance of additional uncertainty.
One of the most surprising conclusions is that prudence may now be the most costly strategy. Some companies are focused on reducing costs, while others are investing in AI to improve efficiency and accelerate development. Stopping is not a neutral position, but a gradual retreat.
All of this leaves the investment case elsewhere. AI is no longer a differentiator in itself, but is becoming a fundamental expectation. SaaS still has a role, but increasingly as part of a broader AI-enabled model. Execution, especially the ability to turn AI into something that actually works, is more important than ever. Speed in both decision-making and deployment is becoming more evident in evaluations as well.
There remains a clear sense of optimism. The opportunity is there. The real question is who is ready to act fast enough to take advantage of it?
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