Technology – Nathaniel Stevens https://nathanielstevens.com Sat, 05 Sep 2026 20:32:33 +0000 en-US hourly 1 https://wordpress.org/?v=7.1.2 https://nathanielstevens.com/wp-content/uploads/2025/12/cropped-imgi_5_Punchey_Inc_Nate_Stevens-32x32.jpg Technology – Nathaniel Stevens https://nathanielstevens.com 32 32 The Operating Layer of Local Business: A Vertical-SaaS Thesis https://nathanielstevens.com/operating-layer-local-business-vertical-saas-thesis/ https://nathanielstevens.com/operating-layer-local-business-vertical-saas-thesis/#respond Sun, 14 Jun 2026 04:42:53 +0000 https://nathanielstevens.com/operating-layer-local-business-vertical-saas-thesis/ .nsp p,.nsp li{font-size:16px;line-height:1.75;color:#22304a} .nsp h2{color:#16243f;border-left:5px solid #f0a92e;padding-left:12px;margin-top:32px} .nsp .lede{font-size:18px;line-height:1.6;color:#16243f;font-weight:500;margin-bottom:8px} .nsp .gold{background:#fdf6e7;border-left:5px solid #f0a92e;padding:16px 20px;border-radius:0 12px 12px 0;margin:24px 0;font-size:15.5px} .nsp .xlinks{margin-top:32px;padding-top:14px;border-top:1px solid #dbe2ee;font-size:14px} .nsp .pull{font-size:20px;font-weight:600;color:#16243f;border-left:5px solid #1f8a8a;padding:8px 0 8px 18px;margin:26px 0} .nsp ul{margin:14px 0 14px 4px} .nsp li{margin-bottom:8px;list-style:none;padding-left:22px;position:relative} .nsp li:before{content:"▸";color:#f0a92e;position:absolute;left:0;font-weight:800}

The biggest software opportunity of the next decade is not another tool for enterprises. It is the operating system for the local business on your corner — and there is room for a category leader in every trade.

I have spent twenty years on one idea, approached from three directions. I founded Yodle to help local businesses get found. I founded Punchey to help them get paid and stay organized. And through Stevens Ventures I now invest in founders chasing the same prize. The idea is simple to state and hard to execute: own the operating layer of local business.

Why “horizontal” software keeps failing Main Street

For years the conventional wisdom was that small businesses would adopt the same general-purpose software as everyone else — a generic CRM, a generic scheduler, a generic payments tool. They mostly did not. Not because they are behind the times, but because a tattoo studio, a pet grooming shop, and an auto-detailing business do not run the same way, and a tool built for “everyone” is built for no one in particular.

The person behind the counter does not want a platform. They want their day to work. They want the booking, the deposit, the reminder, the payment, the review request, and the rebooking to happen without them thinking about it — in the specific language and rhythm of their specific trade. General software cannot do that. Vertical software can.

A salon is not a “small business.” It is a salon. The software that wins will know the difference.

The pattern I keep investing in

Look at the companies clustered around my work and the strategy is not subtle:

  • TattooPro — the operating system for tattoo studios.
  • GroomPro POS — point of sale built for pet groomers.
  • DetailPro — software for auto-detailing businesses.
  • Punchey — payments and operations for service businesses broadly.

Each one takes a single trade seriously enough to build the whole system it runs on, not a feature it tolerates. That is the bet, placed many times: in every meaningful category of local service business, there is a vertical operating system waiting to be built, and the company that builds it well becomes the default — sticky, beloved, and very hard to displace.

What I look for as an investor

Because I have actually been the customer — I have taken payments at a dealership and sold software to small businesses — I tend to weigh things differently than a purely financial investor. A few of the questions I care most about:

  • Does the founder know the trade in their bones? The best vertical-SaaS founders often come from the industry they are now arming.
  • Does the product make the day work, or just add a dashboard? Software that creates work loses. Software that removes work wins.
  • Is payments in the model? The operating layer and the money layer belong together; that is the lesson of Punchey.
  • Can it become the system of record, not a side tool? Tools get switched. Operating systems get kept.
The opportunity, in one line. There are thousands of local-business categories and very few of them have their category-defining software yet. The founders building those companies are, to me, the most interesting and under-covered entrepreneurs in technology — and backing them is the most natural extension of everything I have built.

I learned this thesis the hard way, in a Ford dealership and at a company that scaled to fourteen hundred people. I am betting the next decade on it. The corner store is not too small to deserve great software. It is exactly the right size.

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My Second Ring: The People Behind the Work https://nathanielstevens.com/our-professional-network/ https://nathanielstevens.com/our-professional-network/#respond Mon, 13 Apr 2026 07:31:46 +0000 https://nathanielstevens.com/our-professional-network/

People · Conversations · Shared work

Six documented connections across Yodle, Punchey, public radio, and the work of explaining local-business technology: Kartik Hosanagar, Ben Rubenstein, John Berkowitz, David Olk, David Martin Davies, and Dennis Yu.

Nathaniel Stevens and Dennis Yu taking a photograph together indoors
Nathaniel Stevens and Dennis Yu, from Dennis’s April 2026 article about Nathaniel’s personal website. Photo context.

The people behind a company tell a richer story than its milestones alone. Here are six people whose work connects with mine through Yodle, Punchey, public radio, and the challenge of explaining local-business technology.

Kartik Hosanagar, Ben Rubenstein, and John Berkowitz helped build Yodle. David Olk brought point-of-sale experience to Punchey’s board. David Martin Davies brought the customer’s questions to public radio. Dennis Yu helped bring years of stories and photographs into a personal website.

Kartik Hosanagar: turning a service into a repeatable product

Kartik Hosanagar and I co-authored a Knowledge at Wharton retrospective published on April 6, 2016. It describes a pivotal part of Yodle’s development: Kartik joined the founding team in fall 2005 to help move the business from labor-intensive services toward a repeatable marketing platform.

The account connects his work on keyword selection and bidding algorithms to a concrete product problem: serving local businesses without rebuilding every account by hand. That shift from individual service to a repeatable system is the central teaching thread in our retrospective.

For someone building a service business, the useful question is where expert judgment belongs and where a repeatable process can do the work. A strong collaborator connects expert judgment and a repeatable process to the company’s real problem. The original article is the place to explore that transition and the tradeoffs involved.

Source 1 · Source 2

Ben Rubenstein: taking an idea into customer conversations

Ben Rubenstein and I were childhood friends before Yodle. Allison Fass’s May 2013 Inc. profile follows Ben from graduating at Penn in May 2005 into the early work in Philadelphia: getting the idea in front of local customers and listening to what they needed.

The profile follows the effort to turn an online-marketing idea into a business that local customers would actually pay to use. Its example of a local dentist makes the early challenge understandable: the service had to connect a business’s online presence with an interested prospective customer. Ben’s story makes the customer-facing work visible.

A useful reading exercise is to separate an idea’s appeal from the evidence of demand. What problem did a customer recognize? What did the team have to explain? Why would that customer keep using the service? Those questions make this an operating story. Ben’s experience puts a person and a customer conversation behind the much shorter phrase founding a company.

Source 1 · Source 2

John Berkowitz: learning from customers instead of protecting an assumption

John Berkowitz’s IdeaMensch interview identifies him as a Yodle co-founder alongside Ben Rubenstein and me. In that interview, he explains the original local-business problem through my work at my father’s dealership: people were searching online, while many smaller businesses were difficult to find there.

John’s answers are especially useful because they connect method with milestones. He describes talking with customers, working through problems, and learning to test assumptions more carefully. His reflection on early go-to-market decisions shows how customer evidence can improve an initial approach.

For a founder reading the interview, turn that into a review question: what evidence would change the plan? The value of a working relationship grows through thoughtful disagreement and the ability to put a better explanation or test in front of the team. John’s answers give this part of the Yodle story a practical voice: keep learning, ask questions, and examine the approach.

Source 1

David Olk: matching operating experience to a specific problem

Punchey announced David Olk’s appointment to its board on April 29, 2024. The announcement identifies him as a ShopKeep co-founder and former chief operating officer, and quotes me as Punchey’s founder and chairman. It also quotes Sylvain Mansier as CEO at the time of that release.

The connection was point-of-sale software for local service businesses. Punchey’s announcement emphasized David’s operating experience at ShopKeep and the perspective he could bring to product and customer decisions.

The linked company announcement explains the appointment in its original terms. For someone assembling an advisory group, the transferable question is which specific operating experience the business needs and how that person is expected to contribute. A useful introduction connects that experience to a real question about the product, customers, or organization; it does more than add a recognizable name.

Source 1

David Martin Davies: asking what a checkout screen means to people

David Martin Davies hosted To Tip or Not to Tip? on Texas Public Radio’s The Source in November 2023. We discussed the questions that surface when a checkout screen asks someone to leave a tip: the social pressure, the expectations, and where the money goes.

The program description raises questions about tipping prompts, customer pressure, and transparency about who receives a tip. Those are human questions around a technology interface. A payment screen may be easy to implement while remaining difficult for a customer or worker to interpret.

That is why this interview belongs beside the product-building stories. A useful discussion of software includes both the people affected by its design and the business installing it. The original audio is on the linked broadcaster page. Listen with the customer’s question in mind: what does this screen ask me to do, and what does it tell me about what happens next?

Source 1

Dennis Yu: keeping a long-running story connected to its sources

Dennis Yu’s archive contains both early Yodle-era mentions and a later article about building my personal website. His older writing discusses knowing me during the Penn and Yodle period. His April 2026 website article brings that connection forward and includes a photograph of us together.

A founder can accumulate interviews, company histories, photographs, and explanations across many places. Dennis’s website work brings those materials together so a visitor can move from a photograph to an interview, or from a company chapter to the person who helped build it.

For a reader, the practical habit is to follow a story beyond its headline. The photograph gives the website account a human setting, and the earlier articles add a sense of continuity. This is the value of keeping an archive: a new piece can connect to work already explained, instead of making every visitor start from the beginning.

Source 1 · Source 2 · Source 3

Read the people stories alongside the company stories

Explore these conversations alongside the company chapters: Yodle for the founding story, Punchey for local-business software, and Stevens Auto Group for the dealership work. Each gives the people stories a different setting.

Nathaniel Stevens outdoors wearing a blazer, with trees and a stone wall behind him
An outdoor portrait from my existing photo library. Photo context.

Choose the story that matches the question in front of you: product repeatability, customer demand, testing an assumption, relevant operating experience, or a more understandable checkout screen. Start with a person, follow the conversation, and bring a useful question back to your own work.

Source 1 · Source 2 · Source 3 · Source 4

More moments from the work

Explore the people and the ideas

Where should I begin with the Yodle story?

Start with the retrospective Kartik Hosanagar and I wrote for Knowledge at Wharton. Then read Ben’s Inc. profile and John’s IdeaMensch interview for the customer and operating perspectives.

What did David Olk bring to Punchey’s board?

Punchey’s April 2024 announcement highlighted David’s experience as a ShopKeep co-founder and former chief operating officer, connecting that work with point-of-sale software for local service businesses.

Where can I hear the tipping discussion?

The original November 2023 episode, To Tip or Not to Tip?, is on Texas Public Radio’s The Source. The Davies section links directly to the broadcaster’s audio page.

Which story is most useful for a new founder?

Choose the question you are working on: Kartik for repeatable products, Ben for customer demand, John for testing assumptions, David Olk for relevant operating experience, or Davies for the human side of a software interface.

Keep exploring

Sources & further reading

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How Businesses Are Using AI and Automation to Personalize the Customer Experience and Boost Sales in 2026 https://nathanielstevens.com/how-businesses-are-using-ai-and-automation-to-personalize-the-customer-experience-and-boost-sales-in-2026/ https://nathanielstevens.com/how-businesses-are-using-ai-and-automation-to-personalize-the-customer-experience-and-boost-sales-in-2026/#respond Wed, 14 Jan 2026 20:58:21 +0000 https://nathanielstevens.com/?p=89 Nathaniel Stevens

Bladerunner, The Matrix, WALL-E, the Jetsons, and countless others prophesied an era when humans and artificial intelligence would cross paths. The day has finally come for avid moviegoers of the last thirty years: AI is at the forefront of our technological zeitgeist. While we might not use AI to vacuum the house or do the dishes, Artificial Intelligence fundamentally changes how we approach B2B and customer-facing interactions. According to a recent study, 91% of companies worldwide consistently commit to investing in AI. Even small to medium-sized firms are beginning to harness this cutting-edge technology for continual growth advancement and to stay competitive in today’s automation frenzy. While many big-tech firms have built out robust AI teams and set aside millions in AI investment, mid-cap market companies, and even small businesses, are brainstorming how AI can help them cut costs and sharpen the overall customer experience to boost sales. This brings us to the ultimate question that tops the minds of business owners in 2026 — how can businesses leverage AI and automation to personalize and better the customer lifecycle?

AI Chatbots and Virtual Assistants

Easy-to-use chatbot solutions are currently flooding the SaaS market. While chatbots are incapable of sustained human contact, they diligently respond to a number of upfront customer questions, inquiries, and statements. Continual enhancements with audio and visual elements promote an easy and efficient way to implement them across company websites, making AI chatbots an approachable solution to everyday problems.

The next tier above AI chatbots would be virtual assistants, which rely on Natural Language DRSz Processing (NLP), and handle more complex activities and customer demands online. Today, virtual assistant tools are driving a new era of highly sophisticated IoT products, providing 24/7 customer support without requiring human intervention. These assistants can answer various customer questions, provide shopping assistance, and even make personalized product recommendations based on customer preferences and previous interactions with the brand or website. Major strides aside, when a business is ready to use virtual agents for more complex activities, they shouldn’t forget to prep their customer care staff on how to specifically handle any questions that virtual assistants aren’t yet capable of managing.

Personalized Marketing Campaigns

Targeted emails, social media ads, and personalized product recommendations…via AI. This year, companies will ramp up the use of AI to swiftly analyze vast customer data sets, segment audiences, and create personalized marketing campaigns curated to specific demographics, interests, or buying behaviors. Furthermore, AI does things much quicker than humans — including searching through a person’s browsing and purchase history, shopping behaviors, and social media activity — to quickly identify patterns that can be used for personalized marketing strategies.

After collecting all of that relevant raw data, AI can segment customers into smaller, more targeted groups, allowing marketers to build parceled-out campaigns that resonate with each segment’s specific needs. On a subtler note, AI can track and analyze user behavior across different touchpoints to understand how they interacted with a marketing campaign — helping marketers refine their strategies in the future for a higher likelihood of conversion.

Dynamic Pricing

Dynamic pricing (aka surge pricing) is a real-time strategy that adjusts prices based on variables like demand, supply, competitor pricing, time of day, customer behavior, and more. AI has become critical in this type of pricing thanks to its ability to quickly analyze large data sets and make rapid pricing decisions for items with fluctuating costs — such as hotels or car rentals. As a result, AI models can predict future demand for products or services by weighing elements such as historical sales data, seasonality, promotions, events, and even external factors such as holidays or economic conditions. As a result, businesses can then adjust prices to optimize revenue and manage their inventory effectively.

AI can also work to facilitate A/B testing of differing pricing strategies and flag the most effective pricing models. Businesses can run experiments with test groups, analyze their results, and refine pricing strategies that improve performance over time. As more companies pull pricing data with AI, they will continue to make better data-driven, market-responsive, and personalized pricing strategies that drive revenue and profitability.

AI will be in every corner of business development in 2026. Through better, more targeted, and personalized customer experiences, brands are embracing AI’s swiftness and accuracy to generate immediate support, more authentic marketing experiences, competitive pricing, and an overall strategy that better matches each individual customer’s needs and interests.

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What the Future of EV Adoption Will Really Look Like https://nathanielstevens.com/what-the-future-of-ev-adoption-will-really-look-like/ https://nathanielstevens.com/what-the-future-of-ev-adoption-will-really-look-like/#respond Wed, 14 Jan 2026 20:51:07 +0000 https://nathanielstevens.com/?p=86 Nathaniel Stevens

A few years ago, electric vehicle (EV) adoption was the headline discussion of every dealership in town — investors listened, and EV vehicles were on a fast track to occupy every home in America. Today, however, consumer adoption of EVs has not followed how we thought it would: Hertz recently sold a third of its U.S. fleet of EVs (20,000 cars) following their ambitious strategy to acquire 100,000 Teslas in 2021. Germany’s electric-vehicle sales sank in December, Ford halted production of the F-150 Lightning, and GM cut near-term investment in EVs. But what happened? EV fervor was reaching record highs following mainstream exposure by Tesla and renewed calls for fossil fuel awareness during COVID-19.

This slump is a stark reminder of optimism vs. reality: EVs still have miles to go and a significant adoption curve before making it to the forefront of consideration for the mainstream buyer. Still, all of this back-and-forth begs the answer to one question: What are the key concerns we need to address to truly adopt EVs in America?

A Dearth of EV Technicians

Before we can even drive an EV model out the door, it needs to be built, and electric vehicles are a horse of a different color compared to their combustible engine counterparts. The auto industry faces a shortage of EV technicians, as they require a specific skill set separate from that of a typical auto technician. On top of that, EVs have been subject to countless quality issues and recalls, and only a certain number of technicians are qualified to work on them. The higher cost of entry is repelling younger workforce members from getting EV trained (source). This necessitates demand for affordable specialized training programs for EV adoption to rise across the U.S. We can’t operate a motor vehicle if we don’t have a competent workforce to service them.

Charging Infrastructure Expansion

The availability and accessibility of charging infrastructures remain key factors in EV adoption, with various challenges surrounding implementation and accessibility.

Implementation — Many governments, businesses, and utilities are investing in expanding charging networks to address battery life and travel distance anxieties, encouraging more drivers to switch to electric. That said, many roads and highways — particularly in “flyover” parts of the country — are suited for traditional long-distance travel and don’t have the network necessary for fast-charging stations. On top of this, charging stations are facing universality issues as manufacturers put their own spin on different connectors, protocols, and overall standardization issues.

Accessibility—Other challenges include the accessibility of home and workplace charging stations, incorporating renewable energy to offset the large amounts of electricity needed for charging stations, and ensuring equitable access to EV chargers in underserved areas. Efforts to establish common standards and promote interoperability are necessary to streamline the overall charging experience for EV owners.

Market Competition & Accessibility

When we think of EVs, Tesla is often the first thing that comes to mind. Unfortunately, Tesla’s cheapest model is worth $40,000 (a considerable cost for most Americans), and prices only go up from there. While other motor companies are beginning to dabble in EVs by testing potential models, current options remain much more expensive than non-EV vehicles. Almost all automakers would need to roll out EV models to drive pricing reductions and enforce competition. Consumers need a wider range of EV options to choose from to drive innovation and lower prices from carmakers, which, in turn, would make EVs more accessible to a broader pool of car shoppers.

Government Incentives Aren’t Enough

Government incentives are crucial to break down some of the barriers associated with the transition to electric transportation. Historically, this has included subsidies, tax incentives, and stricter emissions regulations. Although incentives can help offset the higher upfront costs of EVs and other expenses (such as operational costs, maintenance expenses, and charging infrastructure installations), EV vehicles still contend with financial barriers for consumers. These are innately longer-term issues for EVs, as the overall cost of ownership may remain a big concern for potential buyers.

Although EVs are hot topics in the news, most Americans are still using gasoline automobiles. While various factors naturally push us towards EV adoption, the issues that remain in the broader ecosystem related to the price, upkeep, maintenance, and charging requirements of EVs are more problematic than the car itself.

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