Seth Levine of Foundry Group on Capital Evolution, AI, and the Future of Company Leadership
Seth Levine, Managing Director at Foundry Group and co-author of Capital Evolution, joins Between Two COOs to talk about how the American economy is changing - and what that means for the people actually running companies. This is not a theoretical conversation. Seth explains why this moment is a structural shift, not a cycle. We talk about how power has moved from government to business, why companies are now carrying responsibilities they were never designed for, and how AI is accelerating both strong and broken operating systems inside organizations. We also dig into what Seth is seeing from his seat as an investor and board member. How high-functioning executive teams behave during uncertainty. The traps leadership teams fall into when change outpaces their operating model. And a real crisis inside a portfolio company that shows what great operational leadership looks like when things break. If you’re a CEO, COO, operator, or investor trying to understand how AI and economic realignment are reshaping leadership, this episode will give you a clearer view of what’s coming next.
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Guest: Seth Levine
Book: Capital Evolution
Podcast: Between Two COOs
Host: Michael Koenig
What we cover
- Why Seth wrote Capital Evolution and why now
- Why today’s economic shift is structural, not cyclical
- How power has moved from public institutions to businesses
- What companies are being asked to carry that they weren’t built for
- How AI fits into this broader realignment
- Early signals that companies are adapting well to AI
- What strong executive teams do differently during uncertainty
- Common leadership traps when change happens too fast
- A real crisis from a portfolio company and what the executive team did well
- The new leadership muscle operators need for the next decade
Episode Chapters / Timestamps
00:00 – Introduction
01:40 – Seth’s 30-second pitch for Capital Evolution
04:05 – Why this shift is structural, not cyclical
07:20 – What’s broken in the current economic model
11:00 – The power shift from government to business
15:10 – What leaders are quietly losing
18:45 – Where AI fits into this realignment
23:30 – What boards see when AI adoption works
28:05 – How strong executive teams handle uncertainty
33:40 – Leadership traps during rapid change
38:10 – A crisis inside a portfolio company
44:00 – The new muscle operators must build
48:50 – A moment Seth never thought he’d see
