FROM THE BOOK

Monetizing Agentic AI

Chapter 7 · The Agency That Already Has a Harness
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General Catalyst’s AI-Enabled Roll-Up

YC is not alone. General Catalyst Managing Director Marc Bhargava has been executing a parallel thesis through what the firm calls the AI-enabled roll-up. After scanning 70 service industries, General Catalyst landed on a shortlist of 10 with enough automation potential to meaningfully transform their margin profiles.

The firm has made investments in companies like Eudia (law), Crescendo (call centers), Titan (IT services), each representing an attempt to acquire an established services business and re-engineer it around AI-native delivery. The thesis is the same as the harness argument: these businesses have accumulated the domain expertise and institutional memory that constitutes a harness. The opportunity is to encode that harness into software and capture the margin expansion that follows.

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