StarZero All shows Try the podcast clipper →

Feb 8, 2017 · 34m · 20vc

20VC: The Radical Changes In Public Market Expectations, The Right Way To Assess Valuation & What It Means To Be A Disciplined & Diligent Investor with Randy Glein, Partner @ DFJ Growth

Randy Glein · 24m spoken Harry Stebbings · 8m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of The 20 Minute VC, host Harry Stebbings interviews Randy Glein, co-founder and partner at DFJ Growth, discussing his transition from engineering intrapreneur to growth VC, structural shifts in public tech markets, and valuation criteria for scaling growth-stage enterprises.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Harry holds 26.4% of the talking time here. How this is scored →

Harry as informed peer 3.4 Guest teaching 3.6 Guest disagreement 1.4 Harry pushing back 2.6
05100:0010:0020:0030:002:36–5:37 · Harry as informed peer 1/10 Randy Glein's Career Journey and Early Intrapreneurship The host opens with a broad prompt asking about Randy's career background. Randy provides a structured monologue detailing his progression from Hughes Aircraft engineering to intrapreneurship at DirecTV.5:37–11:01 · Harry as informed peer 3/10 Strategic Corporate Investing vs. Institutional Venture Capital The host asks a question sourced from Tim Draper comparing strategic corporate investing to DFJ's growth investing, following up on definitions of investment discipline. Randy educates the host on corporate strategic fit versus LP fiduciary dynamics and return metrics.11:01–17:00 · Harry as informed peer 5/10 Shifting Public Market Expectations and Private Growth Dynamics The host demonstrates preparation by citing specific ARR numbers for Box and Twilio, and later pushes a counter-thesis attributing delayed IPOs to aggressive private equity firms. Randy gently rejects this framing, explaining it as a byproduct while citing historical tech IPO data.17:00–24:27 · Harry as informed peer 4/10 Growth Stage Investment Criteria, LP Liquidity, and Valuation The host presses Randy on LP liquidity concerns given longer privatization, as well as specific growth metrics and valuation discipline. Randy outlines DFJ Growth's 3-6 year holding period and target operational thresholds like $10M ARR and 100%+ growth.24:27–32:01 · Harry as informed peer 4/10 Quick Fire Round: Culture, Leadership, and Unity Technologies During the quick-fire round, the host directly challenges Randy by quoting Roy at Scale on markets mattering more than teams for outcomes. Randy defends the role of leadership while acknowledging market size as a prerequisite.2:36–5:37 · Guest teaching 2/10 Randy Glein's Career Journey and Early Intrapreneurship The host opens with a broad prompt asking about Randy's career background. Randy provides a structured monologue detailing his progression from Hughes Aircraft engineering to intrapreneurship at DirecTV.5:37–11:01 · Guest teaching 4/10 Strategic Corporate Investing vs. Institutional Venture Capital The host asks a question sourced from Tim Draper comparing strategic corporate investing to DFJ's growth investing, following up on definitions of investment discipline. Randy educates the host on corporate strategic fit versus LP fiduciary dynamics and return metrics.11:01–17:00 · Guest teaching 5/10 Shifting Public Market Expectations and Private Growth Dynamics The host demonstrates preparation by citing specific ARR numbers for Box and Twilio, and later pushes a counter-thesis attributing delayed IPOs to aggressive private equity firms. Randy gently rejects this framing, explaining it as a byproduct while citing historical tech IPO data.17:00–24:27 · Guest teaching 4/10 Growth Stage Investment Criteria, LP Liquidity, and Valuation The host presses Randy on LP liquidity concerns given longer privatization, as well as specific growth metrics and valuation discipline. Randy outlines DFJ Growth's 3-6 year holding period and target operational thresholds like $10M ARR and 100%+ growth.24:27–32:01 · Guest teaching 3/10 Quick Fire Round: Culture, Leadership, and Unity Technologies During the quick-fire round, the host directly challenges Randy by quoting Roy at Scale on markets mattering more than teams for outcomes. Randy defends the role of leadership while acknowledging market size as a prerequisite.2:36–5:37 · Guest disagreement 0/10 Randy Glein's Career Journey and Early Intrapreneurship The host opens with a broad prompt asking about Randy's career background. Randy provides a structured monologue detailing his progression from Hughes Aircraft engineering to intrapreneurship at DirecTV.5:37–11:01 · Guest disagreement 1/10 Strategic Corporate Investing vs. Institutional Venture Capital The host asks a question sourced from Tim Draper comparing strategic corporate investing to DFJ's growth investing, following up on definitions of investment discipline. Randy educates the host on corporate strategic fit versus LP fiduciary dynamics and return metrics.11:01–17:00 · Guest disagreement 3/10 Shifting Public Market Expectations and Private Growth Dynamics The host demonstrates preparation by citing specific ARR numbers for Box and Twilio, and later pushes a counter-thesis attributing delayed IPOs to aggressive private equity firms. Randy gently rejects this framing, explaining it as a byproduct while citing historical tech IPO data.17:00–24:27 · Guest disagreement 1/10 Growth Stage Investment Criteria, LP Liquidity, and Valuation The host presses Randy on LP liquidity concerns given longer privatization, as well as specific growth metrics and valuation discipline. Randy outlines DFJ Growth's 3-6 year holding period and target operational thresholds like $10M ARR and 100%+ growth.24:27–32:01 · Guest disagreement 2/10 Quick Fire Round: Culture, Leadership, and Unity Technologies During the quick-fire round, the host directly challenges Randy by quoting Roy at Scale on markets mattering more than teams for outcomes. Randy defends the role of leadership while acknowledging market size as a prerequisite.2:36–5:37 · Harry pushing back 0/10 Randy Glein's Career Journey and Early Intrapreneurship The host opens with a broad prompt asking about Randy's career background. Randy provides a structured monologue detailing his progression from Hughes Aircraft engineering to intrapreneurship at DirecTV.5:37–11:01 · Harry pushing back 2/10 Strategic Corporate Investing vs. Institutional Venture Capital The host asks a question sourced from Tim Draper comparing strategic corporate investing to DFJ's growth investing, following up on definitions of investment discipline. Randy educates the host on corporate strategic fit versus LP fiduciary dynamics and return metrics.11:01–17:00 · Harry pushing back 4/10 Shifting Public Market Expectations and Private Growth Dynamics The host demonstrates preparation by citing specific ARR numbers for Box and Twilio, and later pushes a counter-thesis attributing delayed IPOs to aggressive private equity firms. Randy gently rejects this framing, explaining it as a byproduct while citing historical tech IPO data.17:00–24:27 · Harry pushing back 2/10 Growth Stage Investment Criteria, LP Liquidity, and Valuation The host presses Randy on LP liquidity concerns given longer privatization, as well as specific growth metrics and valuation discipline. Randy outlines DFJ Growth's 3-6 year holding period and target operational thresholds like $10M ARR and 100%+ growth.24:27–32:01 · Harry pushing back 5/10 Quick Fire Round: Culture, Leadership, and Unity Technologies During the quick-fire round, the host directly challenges Randy by quoting Roy at Scale on markets mattering more than teams for outcomes. Randy defends the role of leadership while acknowledging market size as a prerequisite.

speaking balance: gold is Harry, purple is the guest (3 minute bins)

0:00 · Harry 95.8% · guest 4.2%0:00 · Harry 95.8% · guest 4.2%3:00 · Harry 9.8% · guest 90.2%3:00 · Harry 9.8% · guest 90.2%6:00 · Harry 10.5% · guest 89.5%6:00 · Harry 10.5% · guest 89.5%9:00 · Harry 25.3% · guest 74.7%9:00 · Harry 25.3% · guest 74.7%12:00 · Harry 12.1% · guest 87.9%12:00 · Harry 12.1% · guest 87.9%15:00 · Harry 10.9% · guest 89.1%15:00 · Harry 10.9% · guest 89.1%18:00 · Harry 12.3% · guest 87.7%18:00 · Harry 12.3% · guest 87.7%21:00 · Harry 11.4% · guest 88.6%21:00 · Harry 11.4% · guest 88.6%24:00 · Harry 15% · guest 85%24:00 · Harry 15% · guest 85%27:00 · Harry 22.3% · guest 77.7%27:00 · Harry 22.3% · guest 77.7%30:00 · Harry 42% · guest 58%30:00 · Harry 42% · guest 58%33:00 · Harry 100% · guest 0%33:00 · Harry 100% · guest 0%
Sharpest disagreement ▶ 14:50 Rejecting PE Buyout Cause Thesis

Randy explicitly rejects the host's premise that aggressive PE firms cause delayed IPOs, stating it is a byproduct rather than a cause before reframing the public market dynamic.

 Hardest push from Harry ▶ 27:30 Direct Challenge on Team vs Market Value

Harry interrupts the quick-fire cadence to challenge Randy directly with a opposing quote from Roy at Scale regarding whether markets or teams drive venture outcomes.

 Biggest teaching moment ▶ 11:40 Shift in Tech IPO Median Market Caps

Randy provides detailed historical data showing that tech IPO median market caps shifted from a few hundred million historically to $1B since 2010, explaining why growth funds became necessary.

 Harry holds his own ▶ 11:01 Citing Box and Twilio ARR at IPO

Harry demonstrates strong market awareness by citing specific ARR figures at IPO for recent DFJ portfolio companies Box and Twilio to frame his question on public market expectations.
the scores for every segment, with the reasoning behind each
ChapterTopicHarry as informed peerGuest teachingGuest disagreementHarry pushing backWhy
Randy Glein's Career Journey and Early Intrapreneurship 1200 The host opens with a broad prompt asking about Randy's career background. Randy provides a structured monologue detailing his progression from Hughes Aircraft engineering to intrapreneurship at DirecTV.
Strategic Corporate Investing vs. Institutional Venture Capital 3412 The host asks a question sourced from Tim Draper comparing strategic corporate investing to DFJ's growth investing, following up on definitions of investment discipline. Randy educates the host on corporate strategic fit versus LP fiduciary dynamics and return metrics.
Shifting Public Market Expectations and Private Growth Dynamics 5534 The host demonstrates preparation by citing specific ARR numbers for Box and Twilio, and later pushes a counter-thesis attributing delayed IPOs to aggressive private equity firms. Randy gently rejects this framing, explaining it as a byproduct while citing historical tech IPO data.
Growth Stage Investment Criteria, LP Liquidity, and Valuation 4412 The host presses Randy on LP liquidity concerns given longer privatization, as well as specific growth metrics and valuation discipline. Randy outlines DFJ Growth's 3-6 year holding period and target operational thresholds like $10M ARR and 100%+ growth.
Quick Fire Round: Culture, Leadership, and Unity Technologies 4325 During the quick-fire round, the host directly challenges Randy by quoting Roy at Scale on markets mattering more than teams for outcomes. Randy defends the role of leadership while acknowledging market size as a prerequisite.

Statements from this episode (9)

Disclosure
DFJ Growth Prioritizes Cash-on-Cash Returns While Institutional LPs Focus on IRR
“Because in this business, when you're trying to generate returns, both cash on cash, you know, return multiple, which we tend to focus on, but also IRR, which a lot of institutional LPs focus on, really does start to hone your senses towards particular timefra…”
Randy Glein Feb 8, 2017 ▶ 10:29
Assertion Supported
Median Tech IPO Market Cap Since 2010 Is $1 Billion
“Since 2010, we've gone back and looked at all of the tech IPOs since 2010. It's nearly 160 IPOs, and the median market cap at IPO Is a billion dollars across all of those IPOs.”
Randy Glein Feb 8, 2017 ▶ 12:59
Assertion Supported
Box and Twilio Reached $200M ARR Prior to Going Public
“In fact, the last two IPOs that we've seen at DFJ over the last couple years, Box and Twilio, were both companies that were on nearly two hundred million dollar annual revenue run rates before they got public.”
Randy Glein Feb 8, 2017 ▶ 14:11
Disclosure
DFJ Growth Targets Companies Three to Six Years Away From IPO
“And our strategy at DFJ growth really targets companies that have more of a three to six year Horizon to IPO.”
Randy Glein Feb 8, 2017 ▶ 18:06
Disclosure
DFJ Growth's Target Revenue Threshold Is Low Tens of Millions
“The sweet spot for us is low tens of millions”
Randy Glein Feb 8, 2017 ▶ 21:29
Disclosure
DFJ Growth Requires Target Companies to Grow 100% Annually
“And there, we look for growth rates that are at least a hundred percent or more with a product or technology that we believe has room to run at those hyper growth rates for some extended period of time.”
Randy Glein Feb 8, 2017 ▶ 21:43
Insight
Growth Tech Investing Is Not Value Investing; Hyper-Growth Commands Premiums
“I'll tell you at the growth stage, I never feel like, you know, we're not a value investor. So I never feel like price we're getting is, is cheap. It's not a value play. We're investing in hyper growth companies. So there's a premium to pay for that.”
Randy Glein Feb 8, 2017 ▶ 23:59
Assertion Partly supported
Unity Reaches Nearly One Billion Monthly Gamers Across Two Million Developers
“They have a near nearly two million developers that build on their game. These games Reach nearly a billion gamers every month”
Randy Glein Feb 8, 2017 ▶ 30:48
Assertion Partly supported
Unity Holds 70% to 80% Market Share in VR and AR Development
“Already they've repurposed or redirected that That development platform towards VR and AR software applications and have 70 to 80% market share of all development that's happening in VR and AR.”
Randy Glein Feb 8, 2017 ▶ 31:21
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 1,200 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.

Try the podcast clipper Learn more