BuildGroup

BuildGroup is teaming up with D.A. Davidson Equity Capital Markets to kick off SXSW with a Builders' Brunch in Austin! Founders, investors, and operators--join us for breakfast tacos, coffee, and conversations with top minds in the software ecosystem. We look forward to bringing the community together! 🔗 RSVP here: lu.ma/3ymnhsfe

We had an amazing time at Utah Tech Week, surrounded by some of the brilliant minds in the industry! Jim Curry and Steve Waters kept the crowd asking questions about all things proprietary data. They shared insights on the evolution of data strategy and how companies use their unique data to power workflow automation. It would not have been a BuildGroup event without stories from Jim’s time at Rackspace and beyond. Big thanks to everyone who joined us and made this such an engaging discussion! 🚀

The DeepSeek model is open source... the best gift from China to the world since the spread of Kung Pao Chicken. While I’m rooting for Team USA, it is hard not to admire what a team of 200 engineers did on a limited budget with a fraction of the computational resources… How did that kid in college who went out every Tuesday graduate summa cum laude? => OpenAI used Dense Attention: the overachiever who memorizes the textbook and how all words relate. Computationally, 10 people at a dinner table introduce themselves = 45 total handshakes DeepSeek used: =>Sparse Attention: skimming for main points and understanding how relevant terms relate. Computationally, 10 people at a dinner table shake hands with only their neighbors = 10 total handshakes =>FlashAttention: Split a big group project into smaller sub-groups and reconvene  =>Span Corruption: Replace entire chapters with SparkNote summaries.  =>Gradient Checkpointing: Don’t memorize everything upfront but show up to the exam with an extra Red Bull. At the LLM layer, the now global competition for building the best AI Reasoning model is only going to heat up. At the application layer, falling AI reasoning costs will create huge opportunities for companies that have:  => Proprietary data moats 🏰 => Unsexy-but-critical integrations 🔌 => Empathy for what drives value for their customer base 🔍 Event plug: I’m hosting a tech investor / founder gathering in NYC on Wednesday, February 5th, 6-8:30 PM BuildGroup Register here!  https://lu.ma/65fslibj

Join us for Fulfillment with a Twist in Austin! This is a unique opportunity to connect with CPG industry leaders and explore Flowspace's innovative approach to fulfillment over delicious, handcrafted cocktails. RVSP: https://lnkd.in/eWyqrtc3 We look forward to seeing you there!

Looking forward to being a part of Utah Tech Week later this month! If you are in Salt Lake City on January 28th, please join us for breakfast and an exciting discussion on the evolving role of proprietary data in the age of AI. Register here: https://lu.ma/2tcoaz03

Congratulations to Dorian Selz, CEO of Squirro, for being named one of the Top 50 Financial Technology CEOs of 2024 by The Financial Technology Report! At BuildGroup, we are proud to partner with exceptional leaders like Dorian, whose vision and innovation continue to shape the future of data-driven insights. Squirro's cutting-edge platform is a testament to his dedication to empowering organizations with actionable intelligence. This well-deserved recognition highlights Dorian's leadership and Squirro's impact across the industry.

As we close out the year, we're reflecting on BuildGroup's origins. Our founders Jim Curry, Klee Kleber, and Lanham Napier—former Rackspace Technology executives—envisioned a venture firm that would go beyond traditional investing. Drawing from their experience scaling Rackspace, they set out to provide hands-on expertise and strategic guidance to early-growth companies navigating the challenges of expansion. Today, BuildGroup focuses on investing in and scaling companies that are leading AI adoption and transforming workflows with AI. Jim shares our journey, key learnings from our first fund, and our vision ahead. As we wrap up 2024, we're grateful for the perspective we’ve gained and excited about the future we're building together. Link to Jim's full blog post in the comments.

Zeynep Young is easily one of the most impressive and effective CEOs we know. In our recent conversation, we dove deep into her journey from nonprofit to consulting, to Founder and CEO of her own company, Double Line, to her experience working with BuildGroup as an advisor and CEO Calytera and now her current role as CEO Otto. We hope you’re as inspired by her entrepreneurial career as we are. Key lessons from our talk include: 📈 Execution is 99% of value creation. A strategic plan provides direction, but it’s only the first step toward success. 🎉 Culture matters most: when Zeynep founded Double Line, she built the culture around three core tenets: 1. Amaze yourself: I wanted that feeling of, “I cannot believe we pulled that off”. The pride that comes with exceeding your own expectations. 2. Assume goodness: I believe that the majority of people are trying to do the best they can. Everyone is motivated by doing that best, but we are all dealing with constraints and challenges that may not be obvious to those around us. If you try to meet people where they are and assume they're trying to do a great job, you can take performance to the next level. 3. Pick up the ball: Just do something. Just one yard. We're further ahead than we were before you picked it up. 🙋♀️ For women in leadership: Don't take yourself out of the game. Approach opportunities with confidence, embrace daily challenges, and cultivate a strong network. Your relationships are your most powerful asset. #CEO #entrepreneur #leadership 🔗 Link to the full blog post in the comments.

We sat down with Laura Safdie, co-founder and former Chief Operations Officer at Casetext, Part of Thomson Reuters (now Head of Innovation for Legal at Thomson Reuters) to learn about how she helped start the company, and the company’s eventual successful merger with Thomson Reuters. Casetext was one of the first companies to create an AI assistant for legal use cases, and was a BuildGroup portfolio company. Today, Casetext’s marquis product CoCounsel, a trusted generative AI assistant for legal professionals and more, is expanding globally at Thomson Reuters. Key lessons from our conversation: ⚖️ Effective technology and tools that provide access to legal information are a crucial part of achieving justice for all.   ⏩ Prioritize excellence at speed over perfection. Perfect takes too much time when you're building something new. 🤦♀️ Painful mistakes = exceptionally valuable lessons. #entrepreneur #founder Read the full conversation here: https://lnkd.in/ggWV8PUP

Scaling from Series A to Series B is one of the most critical—and challenging—phases for any startup. At BuildGroup, we’re passionate about helping founders tackle these growth hurdles with confidence. In my latest article, I unpack the strategies and focus areas that can drive success during this pivotal stage.  -The metrics that matter most: 100%+ YoY ARR growth, net revenue retention over 100%, and gross margins above 70% (though at BuildGroup, we look for above 40% year-over-year ARR growth, in the case that there is a good product that simply requires a better strategy for stronger execution).  -Profitability is key: As BuildGroup’s CEO, Jim Curry wisely says, "You are just an experiment until you are profitable." -Evidence of a strong and scalable business model: a clear understanding of your target market, a well-defined go-to-market strategy, and a proven ability to acquire and retain customers efficiently Read the full piece here: https://lnkd.in/eXgzGxwg #seriesB #entrepreneurship #venturecapital