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Khosla Ventures among VCs experimenting with AI-infused roll-ups of mature companies
VC firms are pioneering a new investment strategy: acquiring established businesses and optimizing them with AI to boost efficiency and customer reach.
Rather than funding startups, they are acquiring mature businesses –such as call centers, accounting firms, and other professional service firms—and optimizing them with artificial intelligence to serve more customers through automation. General Catalyst, touting this as a new asset class, has already backed seven such companies, including Long Lake, a startup that scoops up homeowners’ associations in an effort to make the management of communities more streamlined. If a VC marries old businesses with new technology, AI startups wanting to serve these industries would essentially gain instant access to large, established clients.
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