Bureaucracy is fundamentally a tool for managing / filtering the flow of information in an organization. Great executives find ways to short-circuit bureaucracy to get to the ground-level truth. AI will enable a new paradigm to eliminate bureaucracy from all businesses 1/

At a certain point there are diminishing returns to a “smarter” model (more training data / compute). GPT has made massive strides in usability since its “4” model by improving workflows around when it decides to search the internet for more information or prompt users to take

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General Catalyst is taking an aggressive approach to capture value from AI - acquiring "legacy" companies to transform them with specialized AI workflows. The market size for this strategy is enormous--major opportunities exist across all industries

AI will give companies the opportunity to replace their bureaucracy with a high-functioning corporate "monarchy" - by synthesizing large amounts of information and bringing it straight to the executive team

Mining tech has been stagnant for 50 years, the workforce is aging out, and demand is rising. Those rocket catches, conflict missiles, and ai robots all need the same thing for development: critical minerals. Here are some the problems and startups in play: 🧵

🧵 The classic private equity playbook—financial engineering & cost-cutting—is hitting limits. Higher interest rates & fierce competition are squeezing returns. Meanwhile, the US industrial sector is under-optimized, ripe for transformation. Enter the “venture buyout” model

JP Morgan just released an "open letter to third-party suppliers" - warning about the security risks of software / AI providers prioritizing speed to market over security. At some point enterprises will realize they can't afford to trust 100s of AI apps with their data

If OpenAI can crack online shopping, it could be a huge disruption for Google & Amazon. Depending on their approach, maybe a big windfall for Shopify and independent stores, or else for big box stores (Walmart)

More and more funds raising capital to acquire traditional businesses and transform them with AI...

Critical to remember that the second 150 courses could only be generated because of the human work that was invested in the first 100. AI can only build off of what humans have done first

As private equity firms are focusing in on operational improvements, Bain has added over the past 2 years a service offering to its Private Equity practice: Operational Due Diligence. 1/

A Data Theory of Operational Excellence: A business's operational maturity can be measured by the maturity of its use of data.

Most industrial businesses have 1-2 leverage points which effectively bottleneck growth. These are the highest potentials for AI automation, which when complete can unlock significant growth. (Examples below)

Good interview with the godfathers of search funds. They note how search space bifurcating into: - Funded search: $20M TEV, 6-8x multiple, low-30s% returns, moving up-market and competing with Private Equity - Unfunded search: <$1M EBITDA, 3-4x multiple, 50%+ returns

PE roll-ups rely on two macro tail-winds: - Cheap debt stack: low rates -> buyouts with 6–7× EBITDA of debt, at sub-5% interest rates - Reliable multiple arbitrage: buy mom-and-pop targets at 4-6× and exit scaled platform at 10-12× Both of these "pillars" are under threat 1/

1/ The extractive industries are critical to reinvigorating our industrial base. Two key drivers of improvement in these sectors: innovative tools and effective use of data. New Founding has made a big bet to help realize this—highlighted by a $100M mining case study. 🧵

On the ground in Côte d'Ivoire One of our engagement managers is on-site this week, supporting the rollout of our mining data platform at a major open-pit operation. We believe that transformation starts with reality. That means collecting real-time, ground-level data—not just

Trend in private markets seems to be growing demand for secondary liquidity. Thesis: advanced data/BI solutions (like Palantir and Volis) can help enable this by reducing information asymmetry and making it easier for minority buyers to analyze private company equity.

If used correctly, AI will revitalize Middle America and bring back the archetype of the American Builder. Unlike SaaS, whose value accrues to huge enterprises, AI’s value accrues to individual users. If true, the main question is how to find and equip these potential Builders