A new AI roll-up fund is launching in Germany, as investor appetite for trying to yield returns by buying a group of established companies and revamping them with AI continues apace.
Generation Tech Partners has raised more than €50 million, with the funds used to acquire German SME service providers, then overhaul them with AI.
An AI roll-up strategy can be described as a company acquiring several companies in a sector, such as accounting, IT or insurance, and then leveraging AI to make the acquired companies more efficient.
Major US VC firms like General Catalyst, Lightspeed and Thrive Capital are making AI roll-up plays.
Earlier this year, Berlin-based investment firm Tenet emerged out of stealth with an €80m target for its debut AI roll-up fund.
