VCs Are Buying Up Mature Businesses and Injecting Them with AI
2025-05-26
Venture capitalists are shifting from solely funding startups to acquiring established businesses like call centers and accounting firms, then leveraging AI to optimize operations and expand customer reach. General Catalyst, having invested in seven such companies, highlights this as a new asset class. Khosla Ventures is exploring this strategy, seeing it as a way to connect AI startups with large, established clients, but is proceeding cautiously, prioritizing strong returns and potentially partnering with PE firms for acquisitions.
Startup
Acquisitions