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Investing in Yoodli

May 21, 2025

By: Nate Bek & Kirby Winfield

Today, we’re excited to announce our follow-on investment in Yoodli, the enterprise platform for AI roleplays. Neotribe Ventures led the $13.7 million Series A, joined by our friends at Madrona, Cercano, and AI2. 

We navigate the most important moments in life through conversation: closing a sales deal, interviewing for a job, or even prepping for a first date. Clear communication is often the difference between success and missed opportunity.

But most modern tools designed to improve our communication skills fall short. Corporate training still leans heavily on static formats like slide decks and recorded videos, which do little to build the real-time reflexes that define high-stakes conversations. These methods offer information, but they don’t develop skill.

Yoodli is one of the first-movers in a crop of companies innovating in this arena. Through its AI roleplays, users can rehearse high-stakes scenarios, receive real-time feedback, and improve with repetition. It’s an experiential learning tool built on a modern generative AI stack. As Founder Varun Puri puts it, “Yoodli is the batting cage before the big game — but for communication.”

Yoodli started as Project Speakeasy, a lightweight NLP tool that tracked filler words. But it has since evolved into an enterprise platform used by companies like Google, Databricks, RingCentral, Snowflake, BDO, and the University of Washington. These organizations use Yoodli to onboard employees faster, improve sales performance, and reduce the coaching burden on managers and administrators.

Rochana Golani, Databricks’ VP of learning and enablement, told The Information that one-on-one coaching is too expensive and that listening to call recordings doesn’t offer the personalized feedback employees need. Databricks, which employs thousands of sales reps, is now one of Yoodli’s largest enterprise customers.

We invested because we believe Yoodli fits squarely within our SaaS 3.0 thesis — B2B AI applications that target specific workflows and pain points with measurable impact. Communication is an overlooked domain in enterprise software. It’s critical to sales, management, and leadership, yet historically hard to train and assess at scale.

The rise of generative AI has changed that. AI roleplay is a new category that is quickly gaining traction. Salesforce, Gong, and Microsoft are all building in adjacent areas. This validates the space but also signals competition ahead. Yoodli’s edge lies in product depth, speed of iteration, and early enterprise traction. (Read Varun’s take on the competition here.)

We’ve supported Yoodli, a Seattle startup, since its first institutional round in 2022. Kirby met Varun through the AI2 Incubator and wired one of the first checks into the company. Varun previously worked with Sergey Brin at Google and brings the same level of focus to building his team. Co-founder Esha Joshi was a product manager at Apple and brings strong operational depth.

The use cases for Yoodli continue to expand. Sales enablement, manager training, leadership development, performance reviews, public speaking, media training, healthcare simulations — all benefit from practice-based learning. Roleplays can be tailored by persona, difficulty level, language, and feedback style, making them flexible and effective.

With the new funding, Yoodli will grow its team across sales, customer success, and engineering, while deepening its technology to make roleplays more realistic and personalized. You can find those jobs as they go live on the Ascend Job Board. Since our first investment, we’ve helped place multiple team members and advised through early product evolution.

We’re proud to have been early investors in Yoodli and look forward to supporting the team as it grows.

The Information first reported the round, followed by additional coverage in GeekWire.

Tags Yoodli, Ascend, Funding

SaaS 3.0: Why the Software Business Model Will Continue to Thrive in the Age of In-House AI Development

January 29, 2024

The rise of OpenAI’s API and Anthropic’s Claude model brings up a big question: Is this the end of SaaS?

The concept is bold: Train AI models on company data to handle boring tasks like employee onboarding and customer-relationship management. The allure is to do it all in-house, bypassing the need to pay for a slew of off-the-shelf software tools. It’s a direct challenge to the established software-as-a-service (SaaS) model. A do-it-yourself future for businesses.

It’s an easy argument to make. More than 2 million engineers have downloaded OpenAI’s API, while Claude and other open-source models are quickly gaining traction in the enterprise. Consulting firms are offering services to help companies implement AI. And blog after blog contend that SaaS as we know it is all but dead.  

That’s ludicrous.

We’re not seeing the death of SaaS. Instead, we’re just moving to its new phase: SaaS 3.0. 

Evolution of SaaS

SaaS 1.0 represented the initial leap from physical software installations to cloud-based solutions, changing the way businesses accessed and scaled technology (think Salesforce). SaaS 2.0 built on the concept, embracing mobile integration, enhanced user interfaces, and collaboration tools to meet the evolving demands of enterprises (think Slack). 

For decades, machine learning and iterations of AI have been embedded into these B2B applications. Everything from semantic search, automated content generation, recommendation engines, and big data have found their way into product suites. This made managing backend operations much easier for enterprises.

Now, with the emergence of large language models (LLMs), AI isn’t just an add-on but at the core of the application. 

Enter SaaS 3.0: In this new phase, AI and machine learning are enhancing B2B applications to more effectively handle business-critical tasks. Through LLMs and deep learning, B2B vendors can automate entire processes, including payments, HR, CRM, content creation, and so much more. 

To be fair, OpenAI’s API and enterprise-grade chatbot, along with other LLM vendors, have enabled some tech-savvy startups and hyperscalers to build their own tools to automate tasks. 

But the reality is that most companies suddenly aren’t engineering powerhouses, capable of pumping out their own vertical software just by calling an API. Engineers lack the time and expertise to build proprietary tech. And executives don’t want to invest in developing tools that already exist — ones that benefit from the experiences of thousands of customers and come with the assurance of being third-party provided.

The SaaS business model is alive and well. 

SaaS 3.0 in Action: Insights from our portfolio

Our portfolio companies are living proof of the demand for ready-made software solutions, now supercharged by AI: 

  • AI role play platform Yoodli teamed up with Databricks to offer bespoke sales-training to its thousands of sales employees. 

  • Mesh partners with large enterprise customers like Amazon and Plaid to help with business identification processes; Another Ascend company, Vouched, helps customers like Hims and Tennessee State Bank verify identities. 

  • Clarity is stepping in to combat the rise of AI-generated deepfakes, providing essential content moderation tools. The startup’s tech recently detected a deep fake audio message from President Joe Biden, even as other digital-detection software tools and officials failed to sound the alarm.   

While Coca Cola might dabble in a custom-built AI art competition, its CRM backbone remains Salesforce. The scenario is similar across industries; long-standing businesses are not rushing to create in-house tax management software or identity verification solutions. Yet, these functions remain essential cogs in the machinery of modern business.

Investor confidence in the space remains strong, despite the broader pull back in venture capital funding. Essential.AI raised $56 million to automate workflows. Slope scooped up $30 million for B2B payments. And Kognitos landed $20 million to streamline back-office tasks.

To suggest that the rise of in-house AI development will eclipse SaaS is to overlook the complexity of technology development and conventional business wisdom. 

As we enter the SaaS 3.0 era, expect to see an undeniable surge of its market capture.

Tags SaaS 3.0, Yoodli

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