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Early AI investor Elad Gil finds his next big bet: AI-powered rollups | TechCrunch

Jun 01, 2025 - techcrunch.com
Elad Gil, a prominent venture capitalist, has been investing in AI startups like Perplexity, Character.AI, and Harvey before the broader market recognized the potential of AI technologies like ChatGPT. He is now focusing on using AI to transform traditional businesses through roll-ups, particularly targeting mature, people-intensive sectors like law and professional services. By integrating AI, these businesses can significantly improve their margins, allowing for further acquisitions and scaling. Gil believes that owning the business outright provides a strategic advantage in rapidly transforming its cost structure and leveraging increased cash flow for competitive acquisitions.

Gil has backed companies like Enam Co., which focuses on worker productivity and has attracted significant investment from firms like Andreessen Horowitz and OpenAI’s Startup Fund. He emphasizes the importance of having a strong team with both technological and private equity expertise for successful roll-ups. Despite the challenges, Gil is optimistic about the future of AI, noting that the market is beginning to crystallize with clear winners emerging in sectors like legal, healthcare, and customer support. He remains deeply engaged with technology, driven by a passion for innovation and progress, and continues to explore the transformative potential of AI in reshaping industries.

Key takeaways:

  • Elad Gil is focusing on using AI to reinvent traditional businesses and scale them through roll-ups, particularly in mature, people-intensive sectors like law and professional services.
  • Gil has backed companies like Enam Co., Harvey, Abridge, and Sierra AI, which are leveraging AI to improve productivity and efficiency in various industries.
  • He believes that AI can radically change the cost structure of businesses, allowing for increased margins and competitive advantages in acquiring other companies.
  • Gil emphasizes the importance of having a strong team composition for successful roll-ups, ideally combining technological expertise with private equity experience.
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