Venture with Grace
00:18:03 · Jake Saper
[00:18:03] S0: It's it's a really good question. This microphone is more powerful, which is amazing. I'm a singer, so I'm always excited when I have like an amazing microphone. So let's talk about the accounting example. I invested in accounting firm called Hanover Park that does accounting for private equity firms. It's called Fund Administration, and it's an AINS business not a roll up. So they started from scratch, and I'll explain to you what... How this looks different from a roll up. In their case, they started by building the GL, the general ledger that is the core thing for accounting, themselves specific to their customer base, their their private equity firms. Then they build agents that work exclusively with that GL, that can manipulate that GL. Then they hired people like Nicole from impressive existing fund administration accounting firms to sit on top of that and deliver the service. An accounting... An AI roll up, you take, you know, five, 10, 20, 30 existing accounting firms often like regionally distributed that have been using an existing GL that's often off the shelf by definition. You try to kind of slam them together, do a private equity move where you eliminate back office redundancies, and then you try to build an AI product and then try to change the way they behave to use this AI product. I think the odds of success of that are much lower. What I'd say is the odds of success of a massive venture scale outcome are lower. I think you'll have some really impressive private equity style outcomes where, like, you buy something, you know, at this price and then you're able to sell it, you know, eight years later at two and a half times the price. What I'm trying to do is venture. I'm trying to invest in the next Zoom, but I'm trying to do it through the services thing. So I need Hanover Park to be able to do their service a 100 times better than the incumbents and grow without having to hire hire too many Nicole's over time. And to me, like, doing it from scratch without all the cultural baggage and the human baggage and the software baggage of the legacy thing is cleaner and more likely to hit. I'm getting an end of panel thing. So thank you guys all. Sorry. I've... Where... She's, like, done it for a while, so I gotta cut it. Thank you, guys. Thank Dan.
00:20:11 · Dan Mishin, Jake Saper
[00:20:11] S1: Thank [00:20:11] S0: you. Great job.