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Back to Re-Founding Incumbents for the AI Era with Sequence Holdings Co-Founder and CEO Michael Lee, with Michael Lee.

Why Use a Holding Company to Add AI to a Company?

Michael Lee says a permanent holding company is the way to add AI to a market leader, because the work needs shared engineering, capital that stays, and a culture that is not built to deploy funds.

Sequence wants to partner with strong organizations, bring a frontier engineering team, and share one platform across the companies it owns. A holding company lines up the life of the capital with the years of investment and operating work a full transformation takes. The culture has to aim at forging market leaders, not at deploying capital. Retained earnings then have a place to go: support the companies already owned, and fund the next ones. For that job, a holding company was the only structure that fit.

Transcript

Re-Founding Incumbents for the AI Era with Sequence Holdings Co-Founder and CEO Michael Lee ·

No Priors: Artificial Intelligence | Technology | Startups

More from this episode

  1. Why Does Sequence Holdings Acquire Incumbents?Michael Lee founded Sequence on the idea that acquiring the right incumbent, then inheriting its brand, scale, network effects, and regulatory advantages…
  2. Can AI Re-found an Incumbent Instead of Replacing It?Michael Lee says an incumbent can be re-founded for AI from the inside, and neither a software purchase nor a consulting contract does that work.
  3. Why Is Insurance Brokerage Hard for Startups?Michael Lee says insurance brokerage is a very difficult industry for startups to get into. The customer does not pay the broker. The carrier does.
  4. Is Hiring Engineers Hard for Private Equity Firms?Michael Lee says recruiting world-class engineers to come work at a private equity firm is really difficult.
  5. How Did Sequence Cut Consumer Underwriting Time by 94%?Michael Lee says that about six months after investing in the bank in March, Sequence built a system that can take on all consumer loans, and average consumer…
  6. What Matters Most in Private Investing?Michael Lee says betting on exceptional people is the only thing that matters in private investing.

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