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Metadata

ID:
2025-12-03-gary-zakk-applied-ai-search-fund
Participants:

Conversation Summary: Applied AI Vision, Search Fund Strategy, and Christian Community Building

Overview​

Gary Sheng and Zakk Fleischmann reconnected after several months to discuss major life transitions, career pivots, and collaborative opportunities. The conversation centered on Gary's emerging Applied AI community concept, Zakk's search fund plans to acquire businesses, and their shared interest in building Christian builder communities in Austin.

Key Topics Discussed​

Gary's Spiritual Journey & Career Transition​

  • Three-month spiritual sabbatical: Following unexpected loss of Tulsa opportunity in August, Gary spent time deeply studying Christianity, culminating in baptism over a month and a half ago
  • Housing journey: Found himself homeless after approving Dallas to take his Austin spot, stayed with Travis Oliphant's casita and various friends throughout August-September
  • Spiritual awakening quote: "I took that as like a message from God to just learn what it means to be a Christian and read the Bible like seriously"
  • Mentor betrayal insight: Reflecting on the Tulsa person's marital infidelity: "If you don't really have a sense of loyalty to your wife, why would you... there's a reason why the Bible is like, adultery is really bad. Because it signals something bigger about your trustworthiness in general"

Applied AI Community Concept​

  • Core thesis: "The evolution of the vibe coder generally is not that everyone's going to have a successful SaaS company. It's that more likely... someone that can help a real business that's like not necessarily pure technical, weave it in in a meaningful way"
  • Travis Oliphant's enthusiasm: "Applied AI. That makes so much sense. Because like the previous term that is like related to that is like business transformation, AI. And it sounds like shit"
  • Shelling point vision: Building a community connecting two groups:
    • Engineers that want to make money solving real business problems
    • Business owners hungry to figure out how to integrate AI to grow their business
  • Current project: Working with mentor on corporate fast food chain brand asset validation agent project

Zakk's Search Fund Strategy​

  • Target profile: B2B businesses in Texas triangle with ~$1M in annual earnings, selling for 3-5x multiple
  • Current prospects:
    • Houston co-working space with franchise potential
    • Excavation utilities company specializing in utility line digging
  • Timeline: 12-18 months for search process
  • Capital needs: Raising $750K-$1M to cover down payment (10%), transaction costs, and living expenses during search
  • Strategic insight: "Excavation is great because the more the state builds, the more you need to dig more utility lines"

Applied AI Consulting Strategy Development​

  • Zakk's marketplace experience: Shared insights from Solidity Guild about connecting engineers with opportunities
  • Office hours model proposed:
    1. Free consultations with business owners
    2. Live whiteboarding/architecture sessions (Applied AI Live events)
    3. Convert to Statement of Work (SOW) for implementation
    4. Record sessions for content and case studies
  • Calendly qualification: Use screening questions to ensure serious business owners with budget
  • Pricing insight: Referenced Day One Cohort graduate making "$10K, $25K, $50K per project" for AI consulting

Community Building & Events​

  • Holiday party planning: December 17th at Zakk's house, focused on "Christians and builders" theme
  • Gary's networking approach: "Making this part of your essence to just have enjoyable, authentic interactions. Like you never know what's going to come from that career-wise"
  • Austin commitment: Gary deciding to base Applied AI community in Austin as intersection of Christian community and tech opportunity

Personal Development & Relationships​

  • Zakk's romantic life: Meeting "very cute girl" through serving at Red Rocks church, "flirting a ton"
  • Gary's approach to relationships: "If I met the right Christian, family-oriented woman, I probably wouldn't spend that long waiting to propose. I think our generation is too much overthinking"
  • Spiritual integration: Gary identifying as "engineering type Christian" - "I want to be basically an apostle... making Tech miracles happen too"

Key Quotes​

  • On Applied AI opportunity: "It's not like this word has never been used, but it's not really used. Applied AI."
  • On authentic relationships: "Not just instrumentalizing your friends... but just continually making this part of your essence to just have enjoyable, authentic interactions"
  • On entrepreneurial reality (Zakk on Cody Sanchez): "She really, I think, over-sells how easy the process is. It's a pretty hard process"
  • On life philosophy: Gary mentioned his approach of "raw dogging this life" - living authentically without substances or artificial aids
  • On ministry and marketplace: "Marketplace work is not bad. It's actually how do you fund the missionaries and your own missions?"

Action Items & Next Steps​

  1. Gary's immediate actions:

    • Set up Calendly with qualification questions for Applied AI office hours
    • Conduct exploratory calls with business owners this month
    • Continue developing Applied AI community with Travis Oliphant's sponsorship

  2. Zakk's search fund priorities:

    • Narrow thesis for investment focus
    • Raise $750K-$1M capital round
    • Continue broker networking and cold outreach to businesses

  3. Joint initiatives:

    • December 17th holiday party at Zakk's house
    • Potential collaboration on Applied AI marketplace concept
    • Christian builder community events in Austin

Strategic Insights​

The conversation revealed strong alignment between Gary's Applied AI vision and Zakk's business acquisition strategy. Both are positioning themselves at the intersection of technology and traditional business, with Gary focusing on AI integration consulting and Zakk on acquiring and scaling B2B companies. Their shared Christian faith and Austin location create natural collaboration opportunities, particularly around community building and marketplace development. The Applied AI Live concept could serve as a funnel for both Gary's consulting practice and Zakk's understanding of business operations, while their combined networks could accelerate both ventures.