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🍋 VCs Attempt Roll-Ups

🍋 VCs Attempt Roll-Ups

Plus: Tech bro gets exposed for holding multiple jobs, Palmer Luckey and Peter Thiel drop latest venture, Oracle keeps mooning, and Modelo CEO blames Trump for beer slump.

Short Squeez
July 03, 2025

Together With

"I’d rather build than talk." — Elon Musk"

Good Morning! An Indian scammer went viral yesterday after YC founder Suhail exposed him for juggling jobs at multiple companies. Anduril founder Palmer Luckey launched a crypto-focused bank backed by Peter Thiel.

The S&P 500 closed at another high after Trump announced a Vietnam-U.S. deal. Modelo’s CEO is blaming Trump’s immigration crackdown for hurting beer sales. Microsoft is laying off around 9,000 employees and Tesla deliveries keep falling.

Plus: Bill Ackman taking a break from writing long threads to become the oldest tennis player to win pro points, Oracle stock keeps mooning, and 8 signs you might be a problematic person.

Discover how leading firms are using Hebbia to streamline research, diligence, and reporting.

We’ll be taking tomorrow off to celebrate America’s birthday. Enjoy the long weekend!

SQUEEZ OF THE DAY

VCs Attempt Roll-Ups

Top venture firms are taking a page straight out of private equity’s playbook, pouring capital into tech start-ups so they can “roll-up” rivals and build industry leaders.

Thrive Capital (yep, the same folks behind OpenAI and Stripe) just led a $72 million round into Savvy Wealth, a New York-based wealth management startup. Valued at $225 million, Savvy plans to scoop up smaller advisory shops and solo advisors, all while using AI to tackle the paperwork avalanche that comes with managing clients’ money.

They’re not alone. General Catalyst has set aside $750 million for roll-ups spanning call centers, legal services, and property rentals. Khosla Ventures, Bessemer Venture Partners, and 8VC are exploring similar strategies.

The playbook: consolidate fragmented industries like financial advisory, real estate, or property management into bigger, tech-powered companies by acquiring smaller rivals. But instead of leaning on debt and cost-cutting like traditional PE shops, VCs are betting that sprinkling AI into operations will supercharge efficiency and margins.

Savvy Wealth is already using AI to handle tedious back-office tasks (like filling out the six different forms needed for a single transaction). General Catalyst’s Dwelly is on a similar path in the UK, gobbling up letting agencies and automating property management.

It’s a big pivot for VCs who normally swing for 100x home runs. With IPOs and big exits still elusive, roll-ups might be a way to engineer returns, and avoid those awkward conversations with LPs about underwater 2021 valuations.

Takeaway: The line between VC and PE gets blurrier every day. VCs are channeling their inner PE pros, and PE funds keep flirting with venture bets. In a market still half-frozen, everyone’s turning to financial engineering, AI, or whatever else they can find to keep LPs happy and boost returns. Only time will tell whether they’re building empires… or just rolling up bigger headaches.

HEADLINES

“The Rolls Royce of AI”

Finance professionals need tools that work as hard as they do. Hebbia’s Matrix delivers powerful solutions to streamline your workflow and give you a competitive edge. Here’s how top firms use Hebbia:

Summarize 200+ earnings calls annually without breaking a sweat.
Review offering memorandums 5x faster to keep pace with changing markets.
Identify red flags, compare risks, and extract critical terms in minutes.
Turn diligence notes into IC-ready investment memos.

Whether you’re tracking opportunities, managing risk, or drafting IC memos, Hebbia helps finance, real estate, and legal teams get more done in less time, without sacrificing quality.

CAPITAL PULSE

Markets Rundown

Market Update

Stocks closed higher after a U.S.–Vietnam trade agreement eased tariff concerns.
The U.S. will apply a 20% tariff on Vietnamese imports, down from 46%.
Vietnam agreed to drop levies on U.S. goods; transshipped items face 40% tariffs.
Technology and consumer discretionary led gains; health care and utilities lagged.
The 10-year Treasury yield rose to around 4.3%.

Economic Data Highlights

ADP private payrolls fell by 33,000, the first decline since 2023.
Weakness was concentrated in services, while goods sectors saw slight gains.
Job openings remain elevated, signaling steady labor demand.
Trade deadline (July 9) approaches; U.S.–EU and Canada talks progressing.
Japan trade talks stalled over U.S. auto tariffs.
Higher tariffs may weigh on margins and spending, though household balance sheets stay strong.

Reported Earnings

Constellation Brands (STZ) – Beat expectations, driven by strong Modelo performance.

Earnings Today

No significant earnings scheduled.

Movers & Shakers

(+) Verint Systems ($VRNT) +15% after reports the customer service software maker may be acquired by Thoma Bravo.
(+) Constellation Brands ($STZ) +4% because the company told shareholders that tariffs won’t cost as much a expected.
(–) Centene ($CNC) -40% after the health insurer pulled its 2025 outlook.

Private Dealmaking

KKR bought Spectrics for $5.6 billion
Banco Santander bought Sabadell for $3.62 billion
Climeworks, a direct air capture startup, raised $162 million
Talon.One an enterprise loyalty software provider, raised $135 million
Savvy Wealth, a platform for financial advisors, raised $72 million
Syntis Bio, an oral therapies developer, raised $38 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

Speak, Memorably

Description: A practical and deeply engaging guide from media coach Bill McGowan (of Pitch Perfect fame) and Juliana Silva. The book breaks you out of bland corporate rhetoric and teaches you how to craft memorable messages. With rooted science and strategies like "The Magnificent 7" speaking devices, this book helps you create authentic presence—whether you’re at a TED Talk, board meeting, or team presentation.

Rating: 4.5 / 5 Amazon, 3.9 / 5 Goodreads

Book Length: 272 pages
Audible Length: 8 hrs 21 mins

Ideal For: Professionals, CEOs, founders, public speakers, and anyone who wants to speak with clarity, confidence, and genuine resonance—especially in an era where everyone sounds "on message," and no one stands out.

“From first impressions to lasting lessons, Speak, Memorably is the new bible for public speaking... you'll want to give it a standing ovation.” — Angela Duckworth

DAILY VISUAL

SPAC Warnings

Source: Chartr

PRESENTED BY KALSHI

The Man, The Myth, The Legend.

No, not Buffett. Not Dalio. Not even Benjamin Graham (though shoutout to the OG).

We’re talking about Joey Chestnut and the real question on everyone’s mind: How many hot dogs will he, or the winner, consume this year?

The king of competitive eating was banned last year, but he is back! So, this Fourth of July, skip the market noise and political drama-ok, maybe check in on Elon and Trump at least once-and track the action on Kalshi.

There’s no daily Squeez tomorrow, but you’ve still got time for a little pre-fireworks action. Because nothing says freedom quite like betting and hot dogs. That’s what America does!

DAILY ACUMEN

Frozen

The core engine of American innovation—startups backed by equity and ambition—is quietly grinding to a halt.

An estimated $14 trillion is now locked up inside private companies with no clear path to liquidity.

With IPOs scarce and acquisitions slowing, the traditional cycle of building, scaling, and cashing out is breaking down.

Venture firms are tightening their wallets. Stock options—once the ultimate incentive—have become dead weight.

Why take the risk of a startup when big tech offers cash and safer equity?

As capital concentrates into a handful of megafunds backing mostly AI, smaller ventures in other industries are getting starved.

The result? A slow freeze across the startup landscape.

Talented builders are walking away, returns are vanishing, and the model that once turned ideas into empires is in serious trouble.

If this freeze persists, it won’t just delay the next big thing—it may prevent it altogether.

ENLIGHTENMENT

Short Squeez Picks

Why CEOs should start with the new year
Why promoting top performers isn’t enough
8 signs you’re a very difficult person
Navy SEAL on 2 non-negotiables for daily routine
Habits older adults wish they started sooner

MEME-A-PALOOZA

Memes of the Day

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