ESV Times | Monthly Newsletter | August 2025

Training the Builders of the AI Age

When we first began investing in startups, we saw AI as a horizon opportunity—something to track, test, and eventually integrate. But today, in the middle of active buy-side and sell-side IT M&A conversations, it’s clear: AI is no longer a “feature” to add. It’s a capability gap to close—urgently.

Every founder we meet—whether scaling a services company or preparing for a strategic exit—asks some version of the same question:
“Where do we even begin with AI?”

We don’t claim to have all the answers. But here’s what we’ve learned, sitting on both sides of the table:

1. AI Readiness Is the New Technical Due Diligence

During M&A diligence, we’re not just scanning for top-line growth or customer logos. We’re assessing whether a delivery org has begun retraining itself for the AI economy.

• Is AI being used to reduce bench time?
• Are copilots embedded in onboarding, QA, or testing workflows?
• Has leadership mapped where automation can enable—not just replace—talent?

These aren’t nice-to-haves anymore. They’re fast becoming differentiators in how buyers assign value.

2. Automation Hygiene Beats AI Theatre

We’ve seen firms roll out flashy GPT tools for sales decks—while their backend processes remain manual and bloated. That disconnect shows. The companies that stand out don’t over-brand their AI initiatives—they quietly build automation into sprint reviews, delivery playbooks, and onboarding flows.

This is where long-term value compounds: in clean, measurable, boring operations.

3. The Best Companies Retrain Early—Before the Stakes Are High

There’s a misconception we see often: “We’ll invest in AI ops once we cross the next revenue milestone.”

But waiting until you’re preparing for a transaction is too late. By then, AI-readiness isn’t a lever—it’s a liability. The firms that command stronger outcomes are the ones that treat AI like an internal capability, not an afterthought.\

Where We Stand

At Ecosystem Ventures, we’re helping our partner companies—both startups and IT services firms—ask the uncomfortable but necessary questions:

• Where are we behind on AI adoption within delivery?
• What workflows need retraining, not just reskilling?
• How can we tie automation to real operating metrics—Not just for decks?

Whether we’re investing or acquiring, we see our role as co-builders of capability. And that means pushing for AI maturity before it’s fashionable—or fundable.