Third South Capital

A lot of my time in the past month has went to our two verticals:

• M&A

• Services

As a reminder, the model for Third South is we buy software companies. We are back searching! Up until June, we were dormant on this front. But we’ve since increased the deal sizes that interest us. Instead of just sourcing at “micro” companies, we are now in the “lower middle market”.

For Services, we did an onsite client visit, and tons of calls with prospects and clients. We are spending more time getting tools spun up, doing workshops and sessions, and getting the flywheel here going. Colin wrote quite a bit about what we are up to. Give it a read.

The first post is about the fallacy of being able to “one-shot” applications. Or perhaps one-shotting shouldn’t be your goal. It’s also just not the most important thing. Our approach is to build feedback loops with AI. That way, you are able to improve exponentially as time goes on. Feed it more data, and AI will be able to self-learn into forever with this approach. - One-shot

Joel Greenblatt finds a catalyst, then invests. I wrote about the time he was the catalyst. Or, at least he tried to be. The result of this investment were poor, especially when you observe the other opportunities he had and the opportunity cost of tying up himself here for multiple years. - Greenblatt as an Activist

Best, Myles