Bristlemoon Global: Salesforce ($CRM) Investment Case
Introduction In their June 2025 quarterly report, Bristlemoon Global Fund introduces a new position in Salesforce Inc. ($CRM) as part of three strategic investments initiated during the quarter. Bristlemoon Capital, known for their concentrated investment approach and focus on identifying businesses with strong competitive moats, presents Salesforce as a compelling opportunity positioned at the forefront of the next major technological shift: agentic AI. The fund’s decision to invest in Salesforce reflects their strategy of gradually deploying capital into positions with idiosyncratic catalysts and attractive risk-adjusted returns on a 12-18 month horizon.
Investment Highlight: Salesforce Inc. ($CRM)
Business Overview
- Pioneer and commercializer of the software-as-a-service (SaaS) model
- Leading customer relationship management (CRM) platform with 150,000 customers
- Positioned at the forefront of agentic AI transformation through Agentforce platform
- Owner of comprehensive enterprise data ecosystem including Slack and Data Cloud
Market Position
- Dominant position in enterprise CRM and customer data management
- Strategic control of the “app layer” providing built-in distribution advantages
- Proprietary access to valuable customer and sales prospect data across its platform
- Data feudalism strategy limiting third-party access to enhance competitive positioning
Performance Analysis
- Agentic AI Opportunity:
- Agentforce enables autonomous agents for sales and service task automation
- Bank of America estimates global agentic AI market could reach $155 billion by 2030
- Potential to substitute digital labor for human labor, unlocking enormous value
- Early traction with Agentforce reaching $100 million ARR (estimated 5x quarter-over-quarter growth)
- Competitive Advantages:
- Data Advantage: Serves as system of record for users, capturing valuable customer insights
- Distribution Advantage: Controls app layer connecting to customers’ disparate data sources
- Zero Copy Architecture: Data Cloud enables real-time, context-rich AI without traditional bottlenecks
- Strategic Data Control: Limiting third-party access to Slack data enhances proprietary AI capabilities
Growth Drivers and Catalysts
- Data Cloud and AI combined ARR exceeding $1 billion (120%+ year-over-year growth)
- Agentforce moved to General Availability in October 2024
- Initiatives to reduce customer adoption frictions for Agentforce
- Potential for agentic AI to become meaningful contributor to total growth
Valuation and Investment Thesis
- Attractive Valuation: Trading at just 17x free cash flow
- Option Value: Current price treats Agentforce as a call option rather than core dependency
- Re-rating Potential: Continued traction with Data Cloud and Agentforce could drive positive valuation re-rating
- Defensive Qualities: Strong base business provides downside protection while AI upside represents significant optionality
Market Dynamics and Opportunities
- Positioned to benefit from enterprise AI transformation as companies seek automation
- Data ownership creates sustainable competitive moats in AI era
- Early mover advantage in agentic AI with established customer base for distribution
- Technological shift mirrors company’s historical success in pioneering SaaS model
Key Metrics and Performance
- Data Cloud and AI ARR: >$1 billion (2.4% of anticipated FY26 revenues of ~$41 billion)
- Customer base: 150,000 enterprise customers
- Agentforce ARR: $100 million (rapid early adoption since October 2024 launch)
Investment Rationale Bristlemoon views Salesforce as well-positioned to capitalize on the agentic AI technological shift due to its proprietary data assets and distribution advantages. The fund believes the current valuation provides an asymmetric risk/reward profile where investors can benefit from the established SaaS business while gaining exposure to potentially transformative AI opportunities. The investment represents a strategic bet on Salesforce’s ability to repeat its historical success in pioneering new software delivery models, this time in the realm of autonomous AI agents.
Risk Considerations
- Execution risk in transitioning to agentic AI model
- Competition from other enterprise AI providers
- Uncertainty around actual market size and adoption timeline for agentic AI
- Dependence on continued innovation to maintain competitive positioning
Bristlemoon Capital views Salesforce as offering compelling upside potential through its agentic AI initiatives while providing downside protection through its established SaaS franchise, representing an attractive risk-adjusted opportunity in their concentrated portfolio strategy.
