The new VC playbook: Buy old businesses, power them with AI

Serving tech enthusiasts for over 25 years.TechSpot means tech analysis and advice you can trust The big picture: Traditionally, VCs have poured money into early-stage startups, betting on unproven technology and the promise of disruption. But a new strategy has been seen taking hold recently, one that blends the playbooks of venture capital and private equity: acquiring established businesses and supercharging them with artificial intelligence. This approach is gaining momentum among top firms like General Catalyst, Thrive Capital, and solo investor Elad Gil. Instead of funding the next big thing, these investors are buying up mature companies – such as call centers, accounting firms, and professional service providers – and using AI to automate operations, cut costs, and reach more customers. The result is a new breed of tech-enabled enterprises built on the foundations of legacy industries. General Catalyst is at the forefront of this trend. The firm, which manages $32 billion in ... Read full article.