Tom Erickson

Imagine swallowing the competition whole. That's what many players in tech do via roll-up strategies, gobbling up smaller firms to deliver richer solutions and amass greater market share. Where else are roll-up strategies common? // HEALTHCARE Picture being a patient at a medical practice that’s been part of a roll-up in Healthcare Services. It's an industry ripe for roll-ups due to its fragmented nature and potential for greater efficiency. // CONSUMER SERVICES Or let's say you needed your HVAC serviced, and notice your local repairman is now part of a bigger Consumer Services entity? Centralized management and scale economy turn these localized businesses into roll-up targets. // FINANCIAL SERVICES Think about your insurance agent or wealth management advisor. They're working in complex, highly regulated environments. In the Financial Services sector, roll-ups offer an effective way to consolidate expertise, streamline operations, and enhance customer offerings. // MANUFACTURING Now, imagine driving past factories under a new name — the result of Manufacturing and Industrial Services roll-ups. Bulk purchasing reduces costs, enhances production capabilities, and expands geographical footprints. // REAL ESTATE Lastly, envision your real estate brokerage firm. The industry sees roll-ups as a strategic move to increase market penetration, enhance service offerings, and hike up portfolio value. Roll-ups play a huge role in most industries, rather like a snowball rolling downhill, gaining momentum, and size. Are you seeing roll-ups in your sector or considering M&A?

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Thanks, Axial, for your findings. I'd rank the Management Team high in the business description. As investors, we are buying their core competencies, track record, market position, and strategic fit. #privateequity #buyout #independentsponsor #growthequity #food #beverage #CPG #healthwellness

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How Do You Drive Growth in an Ever-Changing Industry... Last week, Joe and I had the pleasure of hosting Dan Mottram on The Assembly Line Podcast. Dan has over 20 years of experience in the industrial sector, moving from engineering roles to advising top firms as a strategic consultant. In this episode, Dan shares his insights on how he overcame industry challenges, fostered innovation, and drove business growth. His personal journey is full of valuable lessons for anyone looking to push their business forward. Curious about how to navigate these challenges yourself? Don’t miss this episode! 🎬 Watch the FULL EPISODE on YouTube & Spotify 🎙️ (Link in the comments 🔗) #BusinessGrowth #IndustrialLeadership #Innovation #Podcast

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VC Market Update: Riding Out the Post-Boom Bumps. 2021's high-flying valuations and growth have given way to a more complex reality. With longer private timelines, tough exit markets, and capital tightness, startups face unique challenges—but also fresh opportunities. For those navigating today’s VC landscape, strategic planning is key. Whether it's balancing growth with capital efficiency or exploring secondaries smartly, there’s a path forward. And with boosts from AI and future rate cuts, brighter days could be ahead!

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I'm happy to announce our investment in OnSight Technology! OnSight’s robotics platform helps solar operators scale without additional headcount; improves operations, maintenance and safety; and stops fires before they happen! Feedback from their customers is among the best I’ve ever heard 🤖☀️ Some of the macro tailwinds that make this timely:  🔋 Utility-Scale Solar: Large-scale projects, often spanning hundreds of acres, are becoming a cornerstone of renewable energy strategies worldwide. In the US, utility-scale solar grew by over 20% in 2023, and there is a massive backlog of new projects planned or waiting for grid connection. 🏠 Commercial/Rooftop Solar: On the smaller scale, businesses are increasingly adopting solar panels. This reduces energy bills and contributes to a greener planet. The dirty secret is that many business turn off their rooftop solar because of the threat of fire and business interruption. OnSight’s OWL fixes this. ⚠️ Growth in Thermal Events: With the rapid expansion of solar farms, there has also been an uptick in "thermal events," or fires. These incidents destroy infrastructure and threaten nearby communities. 👷‍♂️ Labor Challenges: Like so many other industries, the solar industry is facing labor challenges. The availability and quality of skilled workers is crucial to maintaining and expanding solar infrastructure. Additionally, workers often have to operate in extremely hot environments, which can impact productivity and safety (hi, OSHA). Derek Chase Doug Matlack John Shepard, PhD Graham Ryland Jeff Struhm Jeff Olyniec Rick Spencer Bill Clerico Aiden Cathcart 

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What's the fast river in alts? Listen to the latest Alt Goes Mainstream podcast with Mercer's Gregg Sommer & CAIS' Neil Blundell to hear how they are helping advisors approach private markets. Gregg, Neil, and I had a fascinating discussion about how the wealth channel can approach alternatives and how they can think about both diligence and customization. We covered: * The case for alternatives. * How advisors currently approach alternatives and how they can think about it differently going forward. * How to think about portfolio construction that includes alternatives. * How alts can help advisors differentiate their practice and attract clients. * Following the fast river in a career and why alternatives are “the fast river.” * The meaning of “structure over strategy.” * The rise in popularity of evergreen funds. Thanks Gregg and Neil for sharing your thoughts and expertise on private markets. Thanks to our sponsor, Ultimus Fund Solutions, for making this episode possible. https://lnkd.in/eBtyw6Fm

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Exciting news! We just sent out the inaugural newsletter for Future Frontier Capital, our pre-seed venture fund backing frontier tech startups. As I hit "send," I realized how launching FFC parallels the path of the founders we support. Starting FFC has required the same passion, perseverance, and self-belief that drive entrepreneurs. Just like a startup, getting a VC fund off the ground demands relentless hustle—building the brand, perfecting the pitch, and networking tirelessly. There are constant challenges that test your resolve and endless hours of unglamorous work behind the scenes. And perhaps most daunting - the self-doubt, wondering if you're crazy for attempting something so bold. Pushing through that negative self-talk requires unshakable faith in your mission. Raising this VC fund reminds me of starting our IP strategy and patent analytics firm two decades ago. It’s a powerful reminder of the perseverance, creativity, and resilience needed to turn an ambitious idea into reality. This experience makes us more empathetic partners, ready to support the founders we back. Our work is just beginning, and this inaugural newsletter underscores our commitment to supporting frontier tech startups every step of the way. #startups #VentureCapital #EmergingManagers #Entrepreneurship #InnovationMindSet

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Successful ventures that have achieved Product-Market Fit and have scaled their operations will probably face this new reality: 𝗧𝗵𝗲 𝗻𝗲𝗲𝗱 𝗳𝗼𝗿 𝗹𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗳𝗿𝗼𝗺 𝗽𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀. As explained by Mark Suster, this liquidity is most likely to come from Private Equity firms, who have the expertise to evaluate companies based on long-term fundamentals, much like the approach taken by Warren Buffett (rather than the speculative one from crypto-traders 😉). Valuation is not a one-time event but a dynamic process that follows a chain-like logic, where each link is interconnected. An irrational (high) valuation early in the chain can have significant repercussions later on, leading to fewer financing or liquidity options - as professional investors will not accept it. You may avoid this by establishing a clear valuation roadmap that demonstrates a consistent risk/return rationale for each type of investor, from business angels and venture capitalists to Private Equity firms and the Public Market, spanning from the first funding round to the eventual public offering. #EntryPriceMatters #ValuationRoadmap #PrivateEquity

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🧬 This week's Austin Bio & Health Roundup features nearly $200M in funding & new capital, M&A, more infrastructure coming, & hopefully an opening of the Texas Bio & Health IPO window🧬 💰 Funding Function Health has closed its Series A, securing $53M in total funding. Function’s platform offers 100+ tests for $499 per year, focusing on prevention and empowerment. The round was led by a16z Bio + Health and includes several celebrity investors. Congrats to Mark Hyman, MD, Pranitha Patil, Jonathan Swerdlin, Mike Nemke, Seth Weisfeld, and Dan Swerdlin. Sensi.AI raised a $31M Series B led by Insight Partners and Zeev Ventures to enhance its 24/7 monitoring technology for seniors and home care. Way to go Romi Gubes and the entire team! Ironspring Ventures raised $100M for their second fund, focusing on “manufacturing, construction, transportation, and energy.” Exciting times for Ty Findley, Adam Bridgman, Peter J. Holt, and the expanding Ironspring team! Now, why include this in a Bio & Health newsletter? I believe there will be a value migration from drugs, devices, and diagnostics to the bio innovation tech stack itself. One key area of that stack is biomanufacturing. As new modalities like cell and gene therapy rise, the challenge of scaling these therapies presents a significant opportunity for innovation. While as far as I know Ironspring hasn't invested in this subsector yet, I look forward to seeing what they do with Fund 2. 🤝 M&A and Partnerships Significo, a software development that builds healthcare apps and solutions, acquired Bunch, an AI leadership coach app. Congrats to Rick McCartney and team! 🚀Launches, Expansions, and Milestones BrainCheck, a cognitive assessment software platform, announced their adoption by the Physicians Hearing Network (PHN), bringing insights to 270 members across 12 states.  Keep up the momentum Kim Rodriguez and team! 🏗️ Infrastructure Texas State University is partnering with Concept Companies to build a life sciences incubator at their round rock campus. The incubator will have labs, offices, admin support, and collaboration spaces. The teams hope to complete construction by the end of 2025. DES Architects + Engineers opened a new office in Austin, aiming to bring their expertise to the city’s burgeoning life science market. Welcome Kevin D. Norman, Tracy Wong, and the rest of the DES team! 🚩 Texas Bio Triangle Fort Worth-based biopharma company Actuate Therapeutics, Inc. is preparing for an IPO, targeting a raise of about $50M. What’s Next? #AustinNext #LifeSciences #Healthcare #Biotechnology

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Juniper Square recently released their look back at the state of venture in Q2 2024, and the data is interesting. 👉 The liquidity drought continues to stifle fundraising, with $37.4B committed to 255 funds YTD. 👉 In the current climate, established managers are securing 77% of fund value YTD, the highest concentration in the last decade.  👉 Over 63% of capital raised in 2024 so far is in funds of $500M+, the second-highest percentage in the last decade. 👉 Q2 reflects an uptick in US venture deal momentum, with quarterly deal count climbing to the highest level since Q2 2022. 👉 Q2 data shows a third consecutive upward quarter in both exit value and the total number of exits.  👉 Q2 hit a 9-quarter high in total number of exits, and the total exit value recorded was the second-best quarter since Q1 2022. The data shows that the landscape is especially competitive for emerging managers. When it comes to generating returns though, a fresh perspective can help find the most interesting deals. I wrote a bit about this last week, if you’re curious to dig into stats on unicorns at the seed stage, and the funds they’re raising from. You can check out the full report from Juniper Square here: https://lnkd.in/eN6VnY-k #emergingmanagers #stateofvc

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Excellent 45 second explanation of why organizations with the best intelligence, in today's Global Competition environment - win.

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🚀 Elevate Your Investment Game with Hyde Park Venture Partners🚀 Join top-tier investors in backing the Midwest's premier early-stage venture capital firm, Hyde Park Venture Partners (HPVP), as they close their impressive $98 million Fund IV. 🤝“A lot of institutional LPs seem to be focused on existing managers,” Turner said. “That being said, we’re really happy with how the fundraise turned out for us and we were able to bring out a lot of great institutions that were new to our funds and to our firm. We’ve been building over the years and have seen larger funds become more institutionalized. That’s important for funds and geographies like ours.” The limited partner makeup for this fund includes approximately 25% institutional, 35% family office and the remainder is ultra high-net-worth individuals. Led by Managing Partners Greg Barnes and Guy Turner, along with Partner Allison Lechnir, HPVP is a force to be reckoned with in the world of technology investments. 💼💰 HPVP often leads deals, writing average check sizes between $500,000 and $4 million. The new fund will be deployed into 20 to 22 companies.📝 🔎With a keen eye for spotting promising startups in the Midwest and Toronto, HPVP has already deployed capital into two groundbreaking companies: Diffit and CivCheck. These investments showcase HPVP's commitment to supporting innovative solutions, leveraging generative AI and urban development technologies, respectively. 🎤"Our companies go through similar challenges, which gives us valuable insight when fundraising," says Greg Barnes. "We're thrilled to have new institutions backing our fourth fund, including NVNG Investment Advisors, LLC and Cintrifuse Capital." They join repeat backers, including the @Illinois Growth and Innovation Fund, RK Mellon Foundation, and Renaissance Venture Capital. 🦸‍♂️Hyde Park Venture Partners boasts a remarkable track record, having been early backers of successful startups like ShipBob, FourKites, Inc., G2, LogicGate, and Dentologie. Their investments have paved the way for notable exits, such as Workday VNDLY and Tock, solidifying their reputation as a powerhouse in the VC world. As the Midwest emerges as a hotbed for startup innovation, HPVP remains at the forefront, leveraging its extensive network and expertise to fuel growth and success. With a focus on bringing top talent to their portfolio companies, HPVP is committed to nurturing the region's burgeoning tech ecosystem. 🌟Congratulations to the Hyde Park Venture Partners team! 🌟 ✅ Looking to raise capital for your #fund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #HydeParkVP #VentureCapital #InvestmentOpportunity #TechStartups #MidwestInnovation

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That’s very accurate. PE Buyout Funds. Publicly traded parent companies with corporate VC arms scooping up the most profitable sector-specific subsidiaries. Fund of Funds get more popular and much more strategic. Family Offices dominate the landscape. Not investment advice.

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No matter how you feel about how the recent election turned out, I hope that you will remember that epistemic spillovers are a thing and try to remain objective about non-political decisions no matter who your decision involves. One person who will is Matthew, who responded that he loved learning about the idea, and also that it was an interesting complement to the idea of Gell-Mann Amnesia. Well, I didn’t know what that was so he pointed me in the right direction: "Briefly stated, the Gell-Mann Amnesia effect is as follows. You open the newspaper to an article on some subject you know well…You read the article and see the journalist has absolutely no understanding of either the facts or the issues…You read with exasperation or amusement the multiple errors in a story, and then then turn the page to national or international affairs, and read as if the rest of the newspaper was somehow more accurate about Palestine than the baloney you just read. You turn the page, and forget what you know." This hit close to home because I was immediately reminded of the long form analysis (and accompanying discussion) a guy did on Brent Beshore and Permanent Equity a year or so ago. When that came out, we couldn’t believe that (1) the guy didn’t talk to us and (2) how much in the piece wasn’t quite right. It was a great example of a “searing experience” with a media article where we had “meaningful personal knowledge” that was wrong. Now, I don’t think there was any malintent here or anything like that. Rather that, when one doesn’t have deep expertise or personal experience in a subject, it's difficult to accurately report on details and the nuance. But if that’s true, why should we believe much of anything that we read (shoutout fake news!)? A good answer to that is because we have to. We’re mostly hardwired to take things at face value and accept shortcuts because the world is a vast place, but learning as much as you can about it is worthwhile, so doing otherwise would be incredibly inefficient. Further, most things that are wrong (like facts about Permanent Equity) are either correctable or inconsequential, so it’s more efficient to let them slide until one needs to do otherwise. Yet you can see the inherent danger of so much misinformation in the world when it comes to items that are not correctable and/or consequential. In these instances, accuracy and deep expertise matter, so we should take the time to understand them and get them right even if that’s inefficient. Further, there can be thin margins between being a mark, naive, a thoughtful inquisitor, a skeptic, a conspiracy theorist, and a quack, so stay self aware. Also there’s the pickle of consequences and permanence being hard to predict ahead of time, so good luck with that part too.

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In other news, foxes think the henhouse doesn't need any guarding. The author's argument basically boils down to: 1) trust us and 2) merchant transmission development usually runs over budget or gets abandoned, resulting in higher costs to the customers. The first argument is categorically weak and problematic, but the second has some validity. There are a number of solutions to the second problem beyond right-of-first refusal, however, including higher security deposits (to prevent walking away) and various provisions that disallow cost escalation after bidding (or defined indexing provisions). I don't know how anyone can plausibly argue with a straight face that preventing competition is good for customers. https://lnkd.in/dZYExb26

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Two encouraging developments for Group14 Technologies and electrification efforts more broadly last week. 🔋⚡   Lightrock partnered with Group14, led by Rick (Eric) Luebbe, in 2022, recognising the groundbreaking nature of its SCC55™ material. Compared to conventional lithium-ion batteries, SCC55™ offers up to 50% more energy density and extremely fast charging. Moreover, it can seamlessly integrate into existing lithium-ion manufacturing lines without the need for retooling. 1) 100 battery manufacturing customers, representing over 95% of the world’s battery production for both electric vehicles and consumer electronics, have received their first shipments of SCC55™. This follows the establishment of the initial production factory in Woodinville, Washington, and a joint venture with SK Inc. in South Korea. 2) The U.S. Department of Energy (DOE) has awarded Group14 up to $200 million to build a factory capable of producing 7,200 metric tons of silane, addressing a critical bottleneck in the US battery manufacturing industry. This grant will also create 300 new jobs for the factory’s construction and an additional 150 roles for commissioning, ramping up, and sustaining production. Group14 is scaling battery production to new heights and accelerating the electrification and sustainability of our society. Their BAM-1 factory in Woodinville has been operational since 2021, and the SCC55™ produced there is already in over two million smartphones. The new JV factory has an initial annual capacity of 2,000 tonnes of SCC55™, enough to power roughly 100,000 to 250,000 electric vehicles per year. Group14’s BAM-2 factory site in Moses Lake, Washington, is expected to add another 4,000 tonnes of capacity in 2025, bringing the combined annual capacity for SCC55™ material to over 30 gigawatt hours. Huge congratulations to the entire Group14 team on this milestone and award. I encourage you to follow Group14 and check out the links in the comments for additional details. #Group14 #Electrification #Sustainability

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Amid the rapid innovation in PE portfolio monitoring technology, Holland Mountain and Chronograph hosted a panel discussion on how modern solutions are unlocking exciting new functionality that gives managers a competitive edge.   I was pleased to share my views on this topic alongside Charlie Tafoya, Sam Price and Billy Dix. If you missed the event, our recap article highlights opportunities with data warehousing and #AI and outlines the strategic approach firms must take for successful technology implementation.   Read it now 👉 https://lnkd.in/eGAz7j2s #privatemarkets #privateequity #portfoliomonitoring

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The words Private Equity have been distorted with the passage of time. The truth is PE done well is not only a value creation platform but also a force for good. We back good businesses, good teams, and together we build. More on Traub Capital Partners in this short video.

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