The AI Roll-up Framework
A systematic approach to acquiring, automating, and scaling fragmented industries. Moving beyond "Power Law" venture capital to "Operational Arbitrage."
Why AI Roll-ups?
1
Economic Multiplier
We target industries where AI isn't just a feature, but a multiplier. By automating 50%+ of workflows, we fundamentally change the cost structure.
2
No Multiple Expansion Needed
Our model works even if we sell at the same multiple we bought. The value creation comes from tripling the EBITDA, not hoping for a hotter market.
3
Sub-linear HQ Costs
Traditional roll-ups bloat as they grow. Our AI-first HQ ensures that as revenue doubles, overhead only grows fractionally.
Unit Economics Transformation
Metric
TraditionalAI Roll-up
EBITDA Margin
10%30%+
Rev / Employee
$150k$450k
HQ Cost Ratio
15-20%< 8%
Target MOIC4.0x - 6.0x
The Execution Playbook
PHASE 1
Anchor Acquisition
Seed Stage (0-12 Months)
- All-equity purchase
- Establish AI HQ
- Initial integration
PHASE 2
AI Transformation
Series A (12-36 Months)
- Workflow automation
- Bolt-on acquisitions
- Margin expansion
PHASE 3
Scale & Leverage
Growth (36-60 Months)
- Debt financing (1x)
- Rapid consolidation
- Cash flow positive
PHASE 4
Exit
Liquidity (60-84 Months)
- Sale to PE / Strategic
- 6x-8x EBITDA
- Capital recycling