Recursion Partners

Recursion Partners backs exceptional teams building vertical AI-enabled services platforms—businesses that combine applied AI, deep customer ownership, and strategic M&A to deliver outcomes for clients. Converting AI software into high-impact business outcomes is hard, and many companies lack the capacity to operationalize this at scale. Increasingly, they are turning to tech-enabled partners that can own and orchestrate this complexity, embed deeply into workflows, and be accountable for delivering high-quality outcomes. These businesses compound through a recursive loop. Each engagement deepens domain expertise, generates proprietary data, and embeds it into workflows—creating feedback loops that continuously improve AI capabilities and their application. The best platforms achieve meaningful margin expansion as AI performs a greater share of the work, while also driving revenue growth through new margin-accretive AI-enabled offerings. As a result, they exhibit more durable and attractive economics than traditional services providers, with the potential to increasingly resemble software businesses. Programmatic M&A further accelerates this compounding by aggregating capabilities, customer relationships, and datasets onto a common platform—expanding workflow footprint, deepening data advantage, and improving AI performance with each transaction. We focus on fragmented markets across healthcare, financial services, and business services—areas with complex workflows, regulatory requirements, and structurally low technology adoption. We invest across two archetypes: AI-enabled roll-ups and the AI-led evolution of incumbent mid-market tech-enabled services providers, pursuing both significant minority and control investments, with a primary focus on the US and a secondary focus on India and Australia. If youre building, scaling, or investing in this space—we’d love to connect.