Khosla Ventures among VCs experimenting with AI-infused roll-ups of mature companies

The capitalists of the initiative have always focused on investment in technology -lifting companies to disrupt established industries or create a whole new business department.

However, some VCs have begun to flip the script in their investment style. Instead of financing startups, they are acquiring mature businesses such as call centers, accounting companies and other professional service companies – and make them favorable with their artificial intelligence to serve more customers through automation.

This technique is, often compared to private equity roll-ups, as being employed by companies General catalyst, SuccessAnd Single VC Sale GillThe The General Catalist, identifying it as a new resource class, has already supported a seven organization, including Long Lake, a startup that removes the homeowners’ associations in an attempt to further organize the management of the community. Long Long has raised $ 670 million in funds according to Long Long Pitchbook since its establishment less than two years ago.

Although the strategy is still new, some of the other initiatives have told TechCrunch that they are also considering trying the investment model.

Of these, Khosla Ventures are a company known for creating a preliminary bet on unnatural technologies, risky with long development periods.

“I think we will look at some of these opportunities,” Sami, general partner of Khosla Ventures, told Kaul Techchen.

Interestingly, this PE-flavored method can be an amazing benefit for the AI ​​Startup VCs for many. If a VC marries old businesses with new technology, AI startups willing to serve these industries will basically gain immediate access to large, established clients.

According to Cowle, this type of access will help when customers have difficulty securing themselves in new startups. With the rapid rate of change in the AI, the Histor Tihassically long sales cycle involved in the number of startups in the market and the sale of initiatives is applicable to many AI startups.

However, Khosla Ventures want to move forward with caution. Kaul said, “The companies we are seeing have very little chance of losing money,” Kaul said, but he does not want the strategy to destroy the firm’s powerful return track record. “The biggest stress of my life is that I’m managing the other guy’s money and I want to make sure I’m going to be a good steward of it.”

When the Khosla Ventures are starting to “disguise” in AI Roll-Up investments, Kaul explained that this investment strategy specially noticed that the firm would like to make a few agreements to determine whether these investments provide the firm’s return for the firm before collecting money for any type of vehicle.

If the initial bats go out, Khosla will probably part with a PE-style firm to help acquire a party than hiring. “We won’t do it alone, we don’t have that skill,” he said.