What I’ve Learned Searching for a New Startup Idea, Part 3
This is part 3 of a series of blog posts (here’s part 1 & part 2) about what I’m learning as I hunt for a new startup idea to work on). PE Rollups Create Opportunity Private equity is rolling up every industry you can imagine 1 . Plumbers, electricians, dental offices, primary care offices, machine shops, lawn businesses, RV parks, and software. PE is brilliant at extracting returns from an unoptimized business. It’s bad at focusing on the customer and building a great product. As industries roll up, prices increase, the quality of service decreases, and opportunities for a new disruptor at the bottom of the market emerge. Why does this happen? When PE acquires a business, the original founders lose motivation…
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