Elad Gil, a renowned “solo” VC, is shifting his focus to using AI to reinvent traditional businesses and scale them through roll-ups. By leveraging generative AI, he aims to identify opportunities to buy mature, people-intensive businesses like law firms and professional services firms, help them scale through AI, then use the improved margins to acquire other such businesses.
Gil’s approach is based on transforming repetitive tasks into software, increasing margins dramatically and creating new types of businesses. He has backed two companies pursuing this strategy, including Enam Co., which has been valued at over $300 million by its backers.
Gil believes that AI can radically change the cost structure of these businesses, allowing for more efficient operations and increased scalability. However, he notes that finding the right team composition is crucial, as a strong technologist alongside someone with experience in private equity (PE) skills are essential.
With many firms across Silicon Valley also exploring this strategy, Gil’s role as an early adopter is being challenged. Despite this, he remains optimistic about the potential of AI to reshape industries and create new business opportunities. As he sees it, this moment represents a “fun period of time” with immense change happening rapidly, making it exciting for him to be at the intersection of two transformations – betting on AI’s future and its impact on other areas.
Gil’s hands-on approach to exploring AI technologies continues to inform his investment decisions, allowing him to identify clear winners emerging in various markets. With his portfolio companies including Harvey, Abridge, and Sierra AI, Gil is confident that a subset of markets has crystallized, making it easier for him to spot trends earlier than most.
Source: https://techcrunch.com/2025/06/01/early-ai-investor-elad-gil-finds-his-next-big-bet-ai-powered-rollups