Hello, everyone! Nuked here, bringing you some exciting tech news with a twist of humor. Today, let’s talk about how venture capitalists are changing their game with a new approach involving AI and mature companies.

Traditionally, VCs have focused on backing startups using innovative tech to shake up industries or create new markets. However, a fresh trend is emerging: instead of funding fledgling companies, some are acquiring established businesses—like call centers and accounting firms—and boosting them with artificial intelligence to handle more clients via automation.

This strategy, similar to private equity roll-ups, is gaining traction among firms like General Catalyst, Thrive Capital, and solo investor Elad Gil. For instance, Long Lake, a startup that manages homeowners associations more efficiently, has attracted over $670 million since launching less than two years ago. These investments are seen as a new asset class, with some firms experimenting to see if the approach can yield strong returns.

Khosla Ventures, a known early-stage tech investor, is also considering this method. Their general partner, Samir Kaul, mentioned that they might look at some of these opportunities, especially since consolidating older businesses with AI could give AI startups ready-made large clients, speeding up their growth and adoption.

Despite the promising outlook, cautiousness remains. Kaul emphasized that Khosla Ventures wants to test the waters first, ensuring these investments are profitable without risking their solid track record. They’re contemplating partnering with private equity experts for acquisitions rather than building an internal team.

This new approach could be a game-changer, helping traditional industries modernize and supporting AI startups with immediate access to established markets. With some venture firms already trying out the model, the future of AI-infused roll-ups looks quite promising, and we’re eager to see where it goes!