Project capital has always focused on investing in companies that benefit from technology either to disable existing industries or create completely new business categories.
But some VCS started at the heart of the text program on their investment methods. Instead of financing startups, they acquire mature business – such as communication centers, accounting companies and other professional services companies – and improve them with artificial intelligence to serve more customers through automation.
This strategy, which is often similar to private stock lists, is employed by companies such as companies General catalystand The capital is flourishingAnd Vc Solo Selling a generation. GENERAL CATALEST, which is promoted by this as a new assets category, has already supported seven such companies, including Long Lake, a startup that raises home owners’ associations in an attempt to make community management more simplified. Since its foundation less than two years ago, Long Lake has received $ 670 million of funding, according to Pitchbook data.
Although the strategy is still new, some other TECHCRUNCH clothes have also been thinking that they are also considering experimenting with the investment model.
Among them is the ostensis of Women, a company known for the manufacture of early stakes on risk -fraught techniques with tall development tables.
“I think we will look at a few of these types of opportunities,” Samir Cole, the Khosla Ventures, told Techcrunch.
Interestingly, this PE’s Pacific approach can be a sudden benefit for the group of startups supported by VCS. If VC marries old companies with new technology, startups that want to serve these industries will mainly get immediate access to adult customers.
According to Cul, this access will be useful when new startups face difficulties in securing customers on their own. With the rapid change in artificial intelligence, the number of startups that enter the market, and historically long sales courses participate in selling institutions, these difficulties apply to many startups of artificial intelligence.
But Khosla Ventures wants to move forward with caution. “It is unlikely to lose the companies we are looking for as money,” Cole said, but he does not want to destroy the strategy, record the strong return of the company. “The biggest pressure in life is that I manage the money of others, and I want to make sure that I am still a good host.”
While Khosla Ventures started in “Dabble” in AI Roll-UP investments, Kaul explained that the company wants to do some deals to assess whether these investments offer strong returns to the company before collecting money for a type of vehicles specifically aimed at this investment strategy.
If the early bets come out, it is possible that you share a volume with a company similar to the PE to help it in the acquisitions instead of employing a team. “We will not do it alone, we do not have this experience,” he said.
