Can the biggest AI labs simply walk into any market and replace the software companies already sitting there?

Storm Ventures has spent 26 years building an answer for B2B founders. The firm has made close to 200 investments, backed 11 unicorns, and produced some of the cleanest enterprise exits in Silicon Valley, from AirGap Networks selling to Zscaler to earlier winners like Marketo and MobileIron. Its portfolio today runs from Tekion in automotive retail to Atomicwork in IT service management, Krisp in voice AI, and Synthpop in healthcare.

Arun Penmetsa is a Partner at the firm. He built enterprise software at Oracle and Google before moving into venture, and he now leads Storm's work in AI, security, and digital health. In this conversation, he is unusually specific about how the decisions actually get made. He meets ten to twelve founders every week; the entire partnership makes only six to eight investments a year, and the single filter he trusts most is urgency. If a buyer can comfortably wait six to twelve months, the pain is not real, and the company is already in trouble.

Arun is direct about the question every AI founder now gets asked, which is whether OpenAI or Anthropic will simply take their market. He answers that the foundation model companies will own a handful of core verticals and leave the rest, so the durable business is the one that owns the full stack between the model and the interface and delivers a real outcome inside law, healthcare, construction, or a market as unglamorous as convenience retail.

He also lays out where he is placing his next bets, from physical AI and humanoid robots that can retool an assembly line on the fly to vertical companies like Tote that rebuild the software running gas stations and corner stores, where a single day of downtime can cost an owner tens of thousands of dollars.
If you are excited about building enduring B2B and AI companies, this episode is for you.

00:00 - Trailer
01:21 - The 26-year-old B2B fund behind AirGapp, Marketo and Tekion
02:47 - The patterns Storm has seen repeat across 200 investments
05:37 - What actually drove seven clean exits
06:37 - The airgap story: the agentless bet that Zscaler bought
13:10 - The one signal Arun trusts more than pedigree
14:37 - Where the moats survive once the models get this good
18:01 - Why Storm backed Atomicwork against ServiceNow
20:00 - Two weeks to decide: how the fastest deals happen
25:27 - The cold email that gets a venture partner to reply
28:52 - The funnel: 500 founders a year, 6 to 8 checks
35:31 - Why Stanford on the resume buys you nothing here
38:13 - The pattern behind every 4 billion dollar outcome
40:44 - The question every AI founder gets: can OpenAI replace you
46:16 - The mistakes that killed companies Arun believed in
50:14 - The million-dollar wall every B2B founder hits
53:30 - Why buyers have already decided before they call you
58:12 - AI agents that stay on a one-hour insurance call
1:08:33 - Physical AI: assembly lines that rebuild themselves
1:12:39 - Tote: the fuel pump they built to win gas stations
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This video is for informational purposes only. The views expressed are those of the individuals quoted and do not constitute professional advice.

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