518. Inside AI-Native VC Diligence

<p>In this episode, host Michael Marchuk sits down with Melanie Nabar, Principal at Volition Capital, a growth equity firm known for backing capital-efficient, founder-led software and internet businesses. With a decade of experience investing in growth-stage technology companies, Melanie offers a rare double perspective: how AI is transforming the portfolio companies being invested in, and how it&#39;s transforming the investment firms themselves.</p><p><br></p><p>From AI agents running sourcing and diligence workflows inside Volition, to a candid assessment of today&#39;s AI valuation bubble, to what actually makes a company &quot;AI-native&quot; versus &quot;last gen,&quot; this conversation goes deep on the practical realities of growth investing in the AI era, including the risks that don&#39;t make headlines.</p><p><br></p><p><br></p><p>⏱️ Timestamps</p><p> 00:00 — Introduction &amp; Melanie&#39;s background in growth equity</p><p> 02:45 — AI inside PE/VC firms: agents, sandbox laptops, and scheduled tasks</p><p> 05:15 — Why contrarian thinking still beats AI&#39;s &quot;regression to the mean&quot;</p><p> 06:30 — Using AI as a sparring partner in investment diligence</p><p> 08:15 — The AI valuation bubble: 50x revenue multiples and their consequences</p><p> 10:30 — Growth equity vs. venture capital: why concentrated portfolios change the game</p><p> 11:30 — Diligence on hyper-growth AI companies: churn, usage data, and product-market fit</p><p> 16:35 — Regulated industries vs. SMB: how sector changes risk tolerance</p><p> 18:40 — Retention benchmarks: consumer vs. enterprise standards</p><p> 19:55 — What makes an AI-native investment firm (hint: it&#39;s culture)</p><p> 21:40 — Managing AI budgets, token usage, and model selection</p><p> 24:40 — Platform risk: will foundation models eat vertical software?</p><p> 27:10 — Data moats, stickiness, and the switching-cost flywheel</p><p> 29:20 — Vendor lock-in, open source models, and orchestration layers</p><p> 31:00 — Leadership in the AI era: change management as the core skill</p><p> 33:40 — How to spot AI-forward companies (and where the market really is)</p><p> 35:00 — Wrap-up and key takeaways</p><p><br></p><p><br></p><p>Visit us on our socials:</p><p>🦾 Get started with SS&amp;C Blue Prism: https://okt.to/JcMLdU</p><p>🧑‍💻LinkedIn: https://okt.to/k8zIdp</p><p>✖️Twitter: https://okt.to/fHyd9G</p><p>🙋‍♀️Facebook: https://okt.to/Vyjfiz</p><p>📸Instagram: https://okt.to/5nYvIf</p><p>💭Blog: https://