AI & Headcount: The Surprising Truth from a Top VC

Hi, I'm Amy Shapiro, journalist at CEK Hi, I'm Amy Shapiro, journalist at CEK and as part of our annual VC survey, and as part of our annual VC survey, and as part of our annual VC survey, we're here with Atad Pelin, the partner we're here with Atad Pelin, the partner we're here with Atad Pelin, the partner of Red Dot Capital. At thank you so much of Red Dot Capital. At thank you so much of Red Dot Capital. At thank you so much for joining us today. for joining us today. for joining us today. >> Thank you for having me. >> Thank you for having me. >> Thank you for having me. >> It's a pleasure to have you. Um, to

>> It's a pleasure to have you. Um, to >> It's a pleasure to have you. Um, to start off with Atad I want to ask you start off with Atad I want to ask you start off with Atad I want to ask you being honest in the age of AI, does being honest in the age of AI, does being honest in the age of AI, does headcount matter anymore or is it just a headcount matter anymore or is it just a headcount matter anymore or is it just a van vanity metric? van vanity metric? van vanity metric? >> Um, it's a very good question. I do

>> Um, it's a very good question. I do >> Um, it's a very good question. I do believe headcount still matters in some believe headcount still matters in some believe headcount still matters in some point of time. Um for specific verticals point of time. Um for specific verticals point of time. Um for specific verticals I do believe we'll see more companies I do believe we'll see more companies I do believe we'll see more companies leaner and meaner like fewer headcount leaner and meaner like fewer headcount leaner and meaner like fewer headcount um growing like crazy but in some more um growing like crazy but in some more um growing like crazy but in some more traditional u verticals such as deep traditional u verticals such as deep traditional u verticals such as deep tech or maybe even cyber tech or maybe even cyber tech or maybe even cyber um we still believe we'll see headcount um we still believe we'll see headcount um we still believe we'll see headcount as another metric that predicts company as another metric that predicts company as another metric that predicts company growth and health. Um so it's a good growth and health. Um so it's a good growth and health. Um so it's a good question. It's at yet to be announced I question. It's at yet to be announced I question. It's at yet to be announced I guess. guess. guess. >> Okay. And and uh continuing on the theme

>> Okay. And and uh continuing on the theme >> Okay. And and uh continuing on the theme of AI with AI agents uh rising and uh of AI with AI agents uh rising and uh of AI with AI agents uh rising and uh taking over I suppose which uh which uh taking over I suppose which uh which uh taking over I suppose which uh which uh industry do you believe will be the industry do you believe will be the industry do you believe will be the first to let AI agents run fully on first to let AI agents run fully on first to let AI agents run fully on autopilot? autopilot? autopilot? >> Another interesting question. Um I do

>> Another interesting question. Um I do >> Another interesting question. Um I do think that customer success is already think that customer success is already think that customer success is already being um quite away from the other pack. being um quite away from the other pack. being um quite away from the other pack. um anything that is related to support. um anything that is related to support. um anything that is related to support. I think most of the global uh consumer I think most of the global uh consumer I think most of the global uh consumer industry is annoyed by that for on a industry is annoyed by that for on a industry is annoyed by that for on a daily basis. Anything automating that daily basis. Anything automating that daily basis. Anything automating that process is um is a pure joy to everyone. process is um is a pure joy to everyone. process is um is a pure joy to everyone. So customer success is definitely the So customer success is definitely the So customer success is definitely the one that will break through faster than one that will break through faster than one that will break through faster than others in 2026. And finally, uh, in

others in 2026. And finally, uh, in others in 2026. And finally, uh, in 2026, Atad, if there would, if there's 2026, Atad, if there would, if there's 2026, Atad, if there would, if there's one financial metric that you would use one financial metric that you would use one financial metric that you would use to value a company, what would it be and to value a company, what would it be and to value a company, what would it be and why? why? why? >> Honestly, I don't think there going to

>> Honestly, I don't think there going to >> Honestly, I don't think there going to be any change in 2026. I still believe be any change in 2026. I still believe be any change in 2026. I still believe that growth, topline growth is going to that growth, topline growth is going to that growth, topline growth is going to be the leading indicator for successful be the leading indicator for successful be the leading indicator for successful companies uh to get premiums. On top of companies uh to get premiums. On top of companies uh to get premiums. On top of that, um, in the age of AI, retention that, um, in the age of AI, retention that, um, in the age of AI, retention metrics are going to be matter than, uh, metrics are going to be matter than, uh, metrics are going to be matter than, uh, than other metrics um, than other metrics um, than other metrics um, dramatically. So, net dollar retention, dramatically. So, net dollar retention, dramatically. So, net dollar retention, gross dollar retention, all of those gross dollar retention, all of those gross dollar retention, all of those will definitely predict a company health will definitely predict a company health will definitely predict a company health and premiums uh, in the future. and premiums uh, in the future. and premiums uh, in the future. >> That's amazing. So, fascinating uh,

>> That's amazing. So, fascinating uh, >> That's amazing. So, fascinating uh, insights and predictions. Satar, thank insights and predictions. Satar, thank insights and predictions. Satar, thank you so much for your time and enjoy the you so much for your time and enjoy the you so much for your time and enjoy the rest of your day here at the conference. rest of your day here at the conference. rest of your day here at the conference. >> Thank you very much and great to be >> Thank you very much and great to be >> Thank you very much and great to be here.