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Levy: The five largest global companies are tech firms under 35

Anton Levy · 20VC: The Two Largest Changes in the Investing Market Today, Why The Scarce Resource in Venture is Access & Why Investors Are Acting Mostly Rational and Upside Scenario Planning Needs To Change with Anton Levy, Co-President @ General Atlantic · Oct 5, 2021 · at 9:15

Anton Levy, Co-President at General Atlantic, discusses how the potential market capitalization cap for winning technology companies has grown compared to prior decades.

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“Basically, the five largest companies in the world, these are all technology companies that didn't exist 35 years ago.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

More from Anton Levy

Insight
Levy: Higher potential upside justifies paying higher startup valuations
“Just rationally, you should say, if the expected positive outcomes are higher, I should be willing to pay higher prices across the board.”
Anton Levy Oct 5, 2021 ▶ 9:42 20VC: The Two Largest Changes in the Investing Market Today, Why The Scarce Resource in Venture is Access & Why Investors Are Acting Mostly Rational and Upside Scenario Planning Needs To Change with Anton Levy, Co-President @ General Atlantic
Prediction Not checkable as stated
Levy predicts the current golden age of tech innovation could last decades
“I actually think we're in the golden age area of innovation right now, and I think that golden age could be decades plus.”
Anton Levy Oct 5, 2021 ▶ 10:35 20VC: The Two Largest Changes in the Investing Market Today, Why The Scarce Resource in Venture is Access & Why Investors Are Acting Mostly Rational and Upside Scenario Planning Needs To Change with Anton Levy, Co-President @ General Atlantic
Insight
Levy: Speed and high pricing are easier to copy than value-add
“I think those things are easier to copy if people can move fast enough and raise the capital and get the flywheel going. I think it's harder to copy. Hey, I'm really going to change outcomes for you.”
Anton Levy Oct 5, 2021 ▶ 19:03 20VC: The Two Largest Changes in the Investing Market Today, Why The Scarce Resource in Venture is Access & Why Investors Are Acting Mostly Rational and Upside Scenario Planning Needs To Change with Anton Levy, Co-President @ General Atlantic
Prediction Held up
Levy predicts cross-stage firms will scale companies from Series A to take-private
“In 10 years from now, it may be sooner than that, that you're going to have a handful of investment firms that are cross-stage, and you're going to show up at the Series A investor meeting, and you're going to say to the entrepreneur, I'm going to scale with y…”
Anton Levy Oct 5, 2021 ▶ 21:35 20VC: The Two Largest Changes in the Investing Market Today, Why The Scarce Resource in Venture is Access & Why Investors Are Acting Mostly Rational and Upside Scenario Planning Needs To Change with Anton Levy, Co-President @ General Atlantic
Insight
Levy: Follow-on checks generate higher IRRs at lower risk than initial investments
“The returns on the follow on checks. End up being so much higher return and higher IRR for lower risk.”
Anton Levy Oct 5, 2021 ▶ 26:24 20VC: The Two Largest Changes in the Investing Market Today, Why The Scarce Resource in Venture is Access & Why Investors Are Acting Mostly Rational and Upside Scenario Planning Needs To Change with Anton Levy, Co-President @ General Atlantic
Insight
Anton Levy: Passive venture capital commoditizes quickly, competing solely on price
“I think that the passive capital commoditizes really fast. If you're looking for passive capital and you're saying, give me money at the highest price and leave me alone. Just give me the capital. At that point, what really matters to you? What really matters …”
Anton Levy Feb 23, 2022 ▶ 9:17 The Tiger Global Memo: From Sequoia Capital to Benchmark and Thrive: The World's Best on the Rise of Tiger Global
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