Full ratchet
474. The VC Myth, AI Hype, Mastering GTM
and Achieving Startup Success (Kyle York)

aired [03.17.2025]


Host: Nick Moran

Guest: Kyle York, CEO and Managing Partner at York IE


• At Dyn, he bootstrapped revenue to $30 million ARR

before raising a dime, shaping his view on scaling.

• York IE merges hands-on advisory with seed-stage B2B SaaS investments, reflecting his operational roots.

Key Insights

  • York IE blends advisory services with venture capital to fill an operational support gap for early-stage startups.

  • Sustainable growth trumps rapid scaling, as seen in Dyn and Vetro, preserving ownership and boosting outcomes.

  • Vertical markets need basic software before AI, though AI shines for internal efficiency.

  • Venture capital is shifting toward more M&A opportunities, rewarding pragmatic growth.

  • Top founders evangelize their markets and build teams to delegate effectively.
1. York IE’s Playbook: Advisory Meets Investment

  • York IE splits its efforts: advisory for tech firms from startup to pre-IPO, and venture capital for pre-seed/seed B2B SaaS.

  • Its advisory arm teams up with private equity and growth firms to bolster operations.

  • The venture side targets SaaS across cybersecurity, data platforms, and apps, using a rolling fund for steady capital.

  • Pragmatic growth drives their ethos, favoring efficiency over reckless expansion.
2. Steady Wins: Tackling Startup Growing Pains

  • Seed-stage founders often chase cash without nailing operational goals, a pitfall York IE counters with hands-on help.
  • Dyn’s $30 million ARR bootstrap and Vetro’s measured rise to mid-eight figures show sustainable growth pays off.
  • Quote: “The reality is most of us can build good, healthy companies and make life-changing multi-generational wealth by owning more of our business.”
3. AI in Niches: Less Hype, More Basics

  • Kyle York warns against AI overkill in vertical markets, quipping about “the AI company for the shellfish industry” when fishermen just need software first.

  • AI’s real edge lies in streamlining internal operations, cutting costs and hires.

  • Private equity roll-ups are juicing vertical software demand, turning fragmented industries into bigger targets.

  • Niche software, not billion-dollar unicorns, is the hot bet for solid returns.
4. Venture’s Next Wave: Pragmatism and Buyouts

  • Winning founders master their markets and build teams, with Kyle York that Elon Musk lives “in Chairman land,” not the daily grind.

  • He predicts a surge in M&A as more buyers—private equity and public firms—snap up pragmatically grown startups.

  • The “growth at all costs” mindset may linger for mega-funds, but Kyle bets on saner strategies for the rest.
5. Founder Toolkit: Wisdom and Reads

  • Kyle York suggests grilling a big-firm VC on their lavish investment logic—think $30 million for an idea.

  • He touts “Think and Grow Rich” and “How Rich People Think” as must-reads for cap-table-bound entrepreneurs.

  • His edge? A flow-based work style, leaning on a sharp chief of staff and an organized wife.

  • Hit him up at @KYork20
 or York IE at @YorkGrowth
 on social.
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