Another VC-backed search/PE-like company was announced today called Splash. This follows a similar company that was created in pursuit of consolidating HVAC firms.
What is less clear is why this model (VC backing) is superior to the traditional private equity model where this has been applied many times before. As always, one should follow the incentives. It will be interesting to see if future financing of this firm requires that the managers restructure their compensation to make it more like PE.