Vector Databases and RAG Stacks: Evaluating Product Moats and Defensibility

Strategic acquirers are looking past early pilot buzz to evaluate which data platforms possess genuine enterprise stickiness.

Valuation Considerations

1. Integration Breadth: Platforms integrated deeply into Snowflake, Databricks, AWS, and GCP data workflows create high switching barriers.
2. Gross Margin Stability: Software gross margins above 75% separate true software platforms from compute-heavy managed services.