When Claude Gets 10x Better, Is Your Business Safe? - Hillel Zidel (Kennet Partners)

When Claude is 10x better, is your business model still defensible? That's the question Hillel Zidel says every growth investor must answer before writing a check — because frontier models will get there faster than most founders expect.

This conversation unpacks how Kennet Partners sources and scales capital-efficient B2B software companies — businesses that have bootstrapped to meaningful scale without relying on VC funding cycles. Zidel explains why these companies tend to be more customer-centric, why their founders deploy capital more wisely, and how avoiding complex cap tables leads to cleaner exits at moderate valuations. The discussion moves from due diligence and governance structures to the messy reality of professionalizing founder-led businesses: hiring CFOs, upgrading teams, and pushing cautious CEOs to finally spend the cash sitting on their balance sheets. Zidel also details Kennet's US expansion playbook, the psychology of bootstrap founders adapting to institutional oversight, and why "team above all" is the principle that rescues deals from catastrophic pivots.

Key Discussion Points:

💡 AI test: if foundation models improve 10x, does your company gain more value or become obsolete? 🚀 Bootstrap DNA: companies that reach scale without external capital are more likely to use growth funding wisely 🇺🇸 US expansion: founder relocation and early customer referenceability are stronger predictors of success than hiring a GM 📊 Capital efficiency reality check: some portfolio companies still hold 50%+ of invested cash at exit — and that's often a founder psychology issue, not a strategy 🔄 Exit cultivation: strategic acquirers should know your business years before you're ready to sell, not when you run a process

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About Hillel Zidel [Managing Director of Kennet Partners]:Managing Director at Kennet Partners, a growth equity firm focused on bootstrapped and capital-efficient B2B software companies, which he joined in 2009 when the firm transitioned from venture capital to growth equity. Prior to Kennet, he worked at ETV Capital and KPMG, and started his career in B2B technology startups in South Africa. Over 17 years at Kennet, he has completed dozens of deals and helped lead investments including Eloomi, which was acquired by Ceridian.About Aulium:Aulium is a video show exploring Innovation and Private Capital, hosted by Thomas Viguier.Connect with us:➡ Aulium on LinkedIn: https://www.linkedin.com/company/aulium➡ Thomas Viguier: https://www.linkedin.com/in/tviguier/