Venture capital (VC) today is about a deep understanding of highly specialized sectors—software being among the most vital. Here, where technological prowess increasingly dictates the pace and direction of investments, investors with a deep expertise in technology stand out, Aman Sidhant being one among them.
A former product manager (PM) at Microsoft Azure, Sidhant has transitioned into a role as an infrastructure SaaS investor WestBridge Capital, bringing a comprehensive understanding of technology’s ability to reshape industries. He works alongside other investors to fund the next generation of big technology companies.
AI and Sustainability Investments by Venture Capital
The venture capital world of 2024 is shaped by technological advancements, particularly in artificial intelligence (AI) and cloud computing. Investments in AI startups have surged, with AI now central to operational strategies across various sectors.
The integration of AI into venture capital is transforming how investments are sourced and managed. For instance, AI’s role in enhancing operational efficiency and generating investment opportunities or “alpha” is becoming an upward trend. “We’re not just investing in AI, we’re adopting it. VC firms can now crunch numbers and assess risks at rapid speeds. We can make same-day decisions that would have taken weeks of meetings a few years ago,” Sidhant says.
Venture capitalists are also becoming more interested in companies that are good for the environment and society. Early-stage startups, supported by seed funding, have been doing exceptionally well. Seed funding grew by 17% in the last few months of 2023, primarily due to new AI startups that are easier to start.
Due to economic uncertainties and a challenging fundraising environment, the market has also seen a notable shift toward more thoughtful investment approaches. Despite a slowdown in 2023, there are signs of recovery in 2024, with fundraising and deal volume improvements indicating a more promising future for venture capital.
The Rise of Technological Expertise in Venture Capital
Sidhant’s role as a PM at Azure involved overseeing product development, from ideation and design to execution and market launch. This experience is crucial in venture capital, as understanding the product development lifecycle helps make informed investment decisions.
Sidhant credits his time at Microsoft Azure as an important learning ground for becoming an expert in infrastructure SaaS. “Microsoft Azure has established itself as a pivotal player in the realm of cloud computing, offering a comprehensive suite of services that cater to a diverse range of business needs. Its significance is underscored by the fact that a substantial majority of Fortune 500 companies rely on Azure for their cloud infrastructure, benefiting from Microsoft’s robust ecosystem and extensive expertise.”
With his background in software and technology, Sidhant exemplifies a new breed of venture capitalists who blend specialized expertise with investment savvy. Gone are the dot-com days of VC firms throwing cash at tech start-ups with minimal due diligence or competitive market analysis. Now, experts contribute their knowledge for more competent and efficient investment decisions.
As he was instrumental in developing the Azure Mobile App, Sidhant found that his technical roles gave him the edge on assessing potential investments, especially in infrastructure SaaS which covers sectors like AI, cybersecurity, and fintech. Sidhant combined his skills in these fields to launch Cost Management on the Azure Mobile App to help Azure customers gain cost visibility into their cloud deployments. The costs for these cloud deployments can range from tens of thousands to millions of dollars per year, so it is extremely important for customers to keep track of how their deployments are doing. “The flow of investing in a tech firm is quite like working the bugs out of code. Apart from the hard skills, working in software has taught me how to think objectively,” Sidhant claims.
Sidhant’s approach to venture capital is rooted in his technical background. His focus area is infrastructure SaaS. This focus is aligned with current trends, where technological innovation is a critical driver of value in startups. Infrastructure SaaS forms the backbone of modern software development and enterprise IT operations.
These technologies provide essential services such as computing power, storage, and networking, along with development environments that enable rapid deployment, scalability, and efficient management of applications. As artificial intelligence (AI) continues to advance, its impact on these foundational SaaS technologies is poised to be transformative.
AI can enhance infrastructure SaaS by optimizing resource allocation, predicting failures, and automating maintenance tasks, thereby reducing operational costs and increasing reliability. In the realm of developer tools, AI-powered features such as code suggestion, bug detection, and performance optimization can significantly boost developer productivity and code quality.
Furthermore, AI-driven analytics can provide deep insights into usage patterns and system performance, enabling proactive decision-making and more responsive service delivery. As AI becomes more integrated into these technologies, it will drive greater efficiency, innovation, and agility across the software development lifecycle, ultimately enabling businesses to innovate faster and more effectively in a competitive landscape.
While technology reaches a turning point with the surge of AI, investors like Aman Sidhant help ensure that such a future is advancing and equitable for everyone.
