#099: AI Agent App Stores, EvenUp Vertical AI Valued At $1B+, Growth Rate Impact On EV

One vSaaS breakdown. One biz story. One 'how to'. In your inbox once a week.

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Alright, let’s get to it…

One vSaaS Breakdown:

AI Agent App Stores

Dream with me for a second...

Imagine an AI Agent App Store.

As AI continues to evolve, and begin to complete the same type of work as a human employee, it begins to beg a serious question...

Will we all eventually hire AI Agents to complete specific tasks?
Full time? Part time?

There are start-ups already claiming their AI Agents can complete 75%+ of the tasks of full-time employee equivalents.

A few examples:

• Devin: Software Engineers

• Beam: Customer Support Reps

• Rhinestone: SDR's

• Thinkchain: PE/VC Associates

• Hebbia: Finance

And a few industry specific, vertical AI Agents including

• Harvey: Legal

• Hippocratic AI: Healthcare

• SixFold: Insurance

• Constructable: Construction

So let's say it's true, or it becomes true in the next decade.

The most valuable company on planet earth could be the marketplace that supplies these agents. As AI eats services and the workforce, the de-facto destination we go to to hire these folks will quite literally become the biggest company on planet earth.

Will there be a handful of destinations similar to what it looks like today with Apple and Google? My guess is probably, at least on the consumer side...

On the business side, I foresee vertical-specific Agent App Stores. As the companies that have all the key data for an industry are going to be the ones that can pull this off.

There are 174M Employees in the U.S. workforce who make $11 TRILLION per year. If AI Agents penetrate a tiny fraction of this we will see some ABSURDLY large companies.

You can do this same type of analysis for

EVERY. SINGLE. INDUSTRY. ON. THE. PLANET.

People use to say that "data is the new oil". But it's going to be more true now than ever.

Getting your hands on a vast array of industry specific data, even in what look like small/niche industries, will yield insanely large outcomes as Agents take on more and more of the workload of Employees.

Wow.

It's scary...

But there is an insane amount of opportunity here.

The future is going to be quite something.

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One Biz Story:

EvenUp - Vertical AI For Personal Injury Law Achieves Unicorn Status

EvenUp, the Vertical AI company for Personal Injury Law just raised at a BILLION DOLLAR valuation.

🏢 Founding Story:

EvenUp was founded by 3 friends, one of whose fathers was permanently disabled in an accident, and the inadequate legal representation motivated them to do something about it. Who are they?

• Rami Karabibar: Previously worked at Bain, Waymo, and Warburg Pincus in Investment and Corp Dev Roles.

• Raymond Mieszaniec: Previously a co-founder of an EdTech start-up & prior to that worked in banking.

• Saam Mashhad (Chief of Product, Co-Founder): Previously an Injury Law Attorney

  

💼 The Personal Injury Law Market:

The Market in the US is listed at $57 Billion as of '24. It's growing at a CAGR of about 2.0% over the past 5 years There are around ~60K law firms specializing in personal injury & 160K personal injury lawyers practicing in the US.

The vast majority of firms in the space are SMB's. These firms typically have <50 employees. They often handle a high volume of smaller cases with the vast majority being automobile accidents or medical malpractice.

💼 Product Suite:

EvenUp offers a suite of AI tools:

• Demand Packages: Automated creation of detailed demand letters.

• Case Valuation: AI-powered assessments to determine case value.

• Document Automation: Streamlined document generation and management.

They also launched 4 new products as part of their fundraising announcement including Case Preparation, Negotiation Preparation, Executive Analytics, and a Settlement Repository.

Injury law seems like a near-perfect use case for today's AI capabilities. They are moving FAST.

💲 Product Pricing:

EvenUp’s pricing is flexible and tailored to the needs of each law firm. Which is another way of saying it's probably pretty expensive 🤣 They offer subscription pricing and usage pricing, ensuring that firms of all sizes can benefit from their technology.

📈 Customer Acquisition:

EvenUp acquires customers through a mix of direct sales efforts, strategic partnerships with legal associations, and strong word-of-mouth referrals from satisfied clients. Their reputation for delivering results has been a key driver of growth.

🌐 Customer Base:

Today, they serve over 1,000 law firms across the United States that have processed over $1.5B in damages .

💰 Revenue & Fundraising Figures: EvenUp has experienced rapid growth, with annual revenues now reaching into the tens of millions. They also just raised a $135 million funding round valuing them at over ONE BILLION.

🔮 Future Outlook:

It's one of the first break-out Vertical AI solutions that we've seen crack the billion dollar valuation.

The future looks promising for EvenUp, injury law is a great vertical to focus on for today's AI, and it should only get better with time...

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One ‘How To':

In Case You Forgot…

Just in case you forgot...

GROWTH

RATES

GREATLY

IMPACT

VALUATION.

Cement it into your brain.

Cement it into your teams brain.

Make it a north star metric & tie bonuses to it.

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And go grab a copy of the Vertical SaaS Bible if you haven’t yet. 1,000+ pages of content on everything Vertical SaaS - Case Studies, Industry Breakdowns, etc.

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Have a product or service that would be great for our audience of vertical SaaS founders/operators/investors? Reply to this email or shoot us a note at ls@lukesophinos.com