This week: Nvidia is launching a language model A PE roll-up opportunity in manual industries? Nuclear, and why founders, investors and the US government are bullish The 10 most important developments in solar this year ā”ļøEnergy and Climate Goldman releases āCarbonomicsā - the economics of Net Zero
RE Electric Sheep, Slow Ventures have an interesting thesis they call vertical saas buyout. Basic premise is (a) software now exists in most verticals but just isn't adopted (mainly distribution bottleneck) and (b) software (or robotics) can positively transform an operating company. IF your technology works then rather than selling benefits to all competitors at once, you can buy operating companies to capture 100% of upside, concentrate the gains and own a premium tech-enabled service. E.g. Metropolis
The franchise model can be an interesting way to do this as tends to have higher attachment rates and can require adoption as part of ops package or push strongly. Also debate as to if its better to roll-up operating co's or create de novo. Latter hard to do simultaneously, but happening a fair bit in healthcare services like tech-enabled dentistry, vets, primary care plays
Not a classic venture model (not a bad thing tho IMO), but argument that by capturing 100% upside of operating companies it provides scope for venture scale outcomes in verticals that VCs would previously dismiss
RE Electric Sheep, Slow Ventures have an interesting thesis they call vertical saas buyout. Basic premise is (a) software now exists in most verticals but just isn't adopted (mainly distribution bottleneck) and (b) software (or robotics) can positively transform an operating company. IF your technology works then rather than selling benefits to all competitors at once, you can buy operating companies to capture 100% of upside, concentrate the gains and own a premium tech-enabled service. E.g. Metropolis
The franchise model can be an interesting way to do this as tends to have higher attachment rates and can require adoption as part of ops package or push strongly. Also debate as to if its better to roll-up operating co's or create de novo. Latter hard to do simultaneously, but happening a fair bit in healthcare services like tech-enabled dentistry, vets, primary care plays
Not a classic venture model (not a bad thing tho IMO), but argument that by capturing 100% upside of operating companies it provides scope for venture scale outcomes in verticals that VCs would previously dismiss
very interesting, especially Metropolis. I wonder how many segments you could run a similar playbook in physical industries?