Love this breakdown, and I’m with you, the “AI bubble” feels less like tulip mania and more like a brutal sorting hat for who’s building real infrastructure versus noise.
From where you sit, which part of the stack do you think is still underpriced by the market – security, data infrastructure, or something even more hidden?
Melanie, thank you for commenting. I am happy you agree with that, too much noise already in AI. Cybersecurity is still underpriced. The market sees it as “consulting-heavy,” but the fundamentals say otherwise: cyber spend is growing 12–15% CAGR, breaches are up >250%, yet security still gets only 4–6% of VC dollars despite delivering higher exit multiples than general SaaS.
Beyond that, the most overlooked parts of the stack are sectors that aren’t pure software and require manual adaptation: industrial automation, OT security, vertical data infrastructure, gov-tech, and regulated critical systems as energy, healthcare or space. These markets are huge (often $100B+ TAM), defensible, and budget-anchored, but investors avoid them because they’re messy and slow to scale.
Love this perspective! So much fascinating AI funding here. Honestly, I'm just picturing AI optimizing my next Pilates session. You really break it down perfectly.
Love this breakdown, and I’m with you, the “AI bubble” feels less like tulip mania and more like a brutal sorting hat for who’s building real infrastructure versus noise.
What jumps out is how concentrated the bet already is, with AI startups attracting around 58% of global VC dollars in Q1 2025 alone, according to PitchBook data (https://economictimes.indiatimes.com/tech/artificial-intelligence/et-graphics-ai-startups-are-still-hot-investment-picks/articleshow/121577650.cms) – that’s not a side theme, that’s the main story.
From where you sit, which part of the stack do you think is still underpriced by the market – security, data infrastructure, or something even more hidden?
Melanie, thank you for commenting. I am happy you agree with that, too much noise already in AI. Cybersecurity is still underpriced. The market sees it as “consulting-heavy,” but the fundamentals say otherwise: cyber spend is growing 12–15% CAGR, breaches are up >250%, yet security still gets only 4–6% of VC dollars despite delivering higher exit multiples than general SaaS.
Beyond that, the most overlooked parts of the stack are sectors that aren’t pure software and require manual adaptation: industrial automation, OT security, vertical data infrastructure, gov-tech, and regulated critical systems as energy, healthcare or space. These markets are huge (often $100B+ TAM), defensible, and budget-anchored, but investors avoid them because they’re messy and slow to scale.
Love this perspective! So much fascinating AI funding here. Honestly, I'm just picturing AI optimizing my next Pilates session. You really break it down perfectly.