[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Chamath Palihapitiya [@chamath](/creator/twitter/chamath) on x 1.9M followers Created: 2025-05-26 17:26:30 UTC Venture firms including Khosla Ventures, General Catalyst, and Thrive Capital are testing a new investment strategy, involving acquiring mature, low-tech service businesses and modernizing them with AI tools internally. These targets, such as call centers, accounting firms, and homeowners associations, offer steady cash flows and entrenched customer bases that could be made more efficient with internal AI tools and automation. General Catalyst has already backed seven such companies, including Long Lake, a platform rolling up HOAs, which has raised $XXX million. Khosla Ventures is evaluating similar deals and may partner with experienced PE firms to handle execution, aiming to stay capital-light while providing AI startups with built-in distribution. The shift reflects a broader recalibration in venture, as firms look for more scalable and capital-efficient ways to monetize AI in mature companies. Rather than waiting for AI startups to crack enterprise sales from the outside, VCs are beginning to buy the customer base directly and apply AI internally to expand margin and throughput. This could shorten the path to revenue and avoid long procurement cycles. It reduces dependence on binary outcomes by backing proven businesses that can still benefit from internal AI tools and automation. If it works, this model could emerge as a new hybrid category that sits between traditional venture and private equity, designed to industrialize the rollout of AI into mature businesses. XXXXXX engagements  **Related Topics** [accounting](/topic/accounting) [coins ai](/topic/coins-ai) [investment](/topic/investment) [asset allocation](/topic/asset-allocation) [thrive capital](/topic/thrive-capital) [Post Link](https://x.com/chamath/status/1927053745646375290)
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Chamath Palihapitiya @chamath on x 1.9M followers
Created: 2025-05-26 17:26:30 UTC
Venture firms including Khosla Ventures, General Catalyst, and Thrive Capital are testing a new investment strategy, involving acquiring mature, low-tech service businesses and modernizing them with AI tools internally.
These targets, such as call centers, accounting firms, and homeowners associations, offer steady cash flows and entrenched customer bases that could be made more efficient with internal AI tools and automation.
General Catalyst has already backed seven such companies, including Long Lake, a platform rolling up HOAs, which has raised $XXX million.
Khosla Ventures is evaluating similar deals and may partner with experienced PE firms to handle execution, aiming to stay capital-light while providing AI startups with built-in distribution.
The shift reflects a broader recalibration in venture, as firms look for more scalable and capital-efficient ways to monetize AI in mature companies.
Rather than waiting for AI startups to crack enterprise sales from the outside, VCs are beginning to buy the customer base directly and apply AI internally to expand margin and throughput. This could shorten the path to revenue and avoid long procurement cycles. It reduces dependence on binary outcomes by backing proven businesses that can still benefit from internal AI tools and automation.
If it works, this model could emerge as a new hybrid category that sits between traditional venture and private equity, designed to industrialize the rollout of AI into mature businesses.
XXXXXX engagements
Related Topics accounting coins ai investment asset allocation thrive capital