Every month, I assess 5–7 companies and speak with a diverse range of individuals—from CTOs and founders to engineers, investors, and operators. That means I get a rolling, real-time feed of what it’s like to be a digital dream maker today.
It also means I see some of the patterns no one really talks about.
Here are my 7 most controversial observations from the past quarter—things we’re seeing in the trenches at Beyond M&A that might challenge your assumptions:
1. (Real) AI Might Have Broken the Lean Startup Model
The classic lean-startup playbook—iterate quickly, ship an MVP, validate with users—is under pressure in the world of genuine, foundational AI. PhDs raising $20m+ on Day 1 isn’t rare now.
Why? Because building (not just using) serious AI needs serious firepower. The result? A have/have-not market is emerging—those who can fund technical debt upfront, and those who can’t.
Lean works for users. But AI builders need deep capital just to begin.
2. Attitudes to Cybersecurity Are Deeply Personal
Across firms, cyber maturity varies wildly—and it often comes down to the personal experiences of leadership. If someone’s lived through a breach or attack, they’ll prioritise it. If not, they’ll keep cyber in the “IT thing” box.
The issue is that many firms over-index on revenue-generating tech and under-invest in infrastructure, hygiene, and resilience. Founders with outdated attitudes can unintentionally shape the entire company’s risk profile.
3. Founders Are Burning Out
There’s a visible, sharp rise in pressure among founders and CEOs. The combination of missed targets and team performance issues is leaving many emotionally drained.
Of course, some will say: “That’s just part of the job.”
But I disagree. It doesn’t have to be.
Founders have a choice—and often that choice is to design a sustainable way to win, not just a heroic one.
This is where having the right partner, investor, or sounding board becomes not just useful, but vital.
4. Technical Roles Are Quietly Being Moved Offshore
More and more companies are offshoring technical roles again—but this time, not just for cost, but for reliability.
Many of the “hidden heroes” in mid-stage scale-ups aren’t in HQ anymore. They’re in Argentina, Vietnam, Kenya, or Eastern Europe.
Global delivery isn’t a trend. It’s an operating reality.
5. Competitive Deals = Shallow TechDD
In situations where there are multiple buyers or aggressive timelines, we’re seeing less depth in diligence than we’re comfortable with.
We’ve had large deals reduced to a single “tech chat” before term sheets fly in. This isn’t just risky—it’s avoidable.
- Buyers: your pressure to move quickly shouldn’t blind you to the reality of tech and delivery debt.
- Sellers: use this moment to take control of your own narrative.
6. AI Attracts Investment, But Models Are Evaporating Fast
Investors want AI, but they’re quietly nervous. Why? Because the landscape is full of copycats, grants, hyperscalers, and sudden obsolescence.
It’s entirely possible to back a business with promise, only to see it undercut by a free tool, a new LLM release, or a pivot by a trillion-dollar competitor.
Everyone’s chasing defensibility—but in AI, that’s increasingly hard to define.
7. We’re Hiring Too Soon After Funding
This one’s simple but incredibly common:
A fresh funding round hits. Teams hire fast. Culture shifts immediately.
In some cases, we’ve seen teams undergo significant changes post-raise that render them unrecognisable from the company we assessed during diligence. That’s a huge operational risk—and one that breaks alignment fast.
Speed matters, but so does intentionality. Culture doesn’t scale just because headcount does.
Bonus: Services as Software Is Quietly Eating Professional Services
You might’ve missed it, but there’s a growing wave of tools doing what people used to do:
- AI-led financial interviews
- Drag-and-drop AI consulting
- Smart onboarding bots for B2B clients
If you’re in professional services, you must re-evaluate your delivery model. But don’t panic and throw everything at GPT-powered automation.
The best firms evolve organically, not frantically. And that means taking the time to redesign delivery around insight, value, and experience—not just headcount.
What Can You To The Magnificent Seven?
AI won’t write that title; it’s too obscure and tentative. I digress….
These seven observations aren’t just trends—they’re stress fractures in the old way of doing things.
Whether you’re a founder, investor, or operator, staying sharp means accepting that the playbooks are changing, and not everyone’s going to keep up.
At Beyond M&A, we don’t just assess firms. We listen, we learn, and we challenge. These signals are just the beginning of what’s coming next.
