Gene Frantz is General Partner at CapitalG, Alphabet's growth equity fund. He discusses how late-stage investing has changed due to an influx of capital and standard management playbooks.
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“So I would say that investing writ large across growth equity, private equity, has commoditized To a very high degree over the last decade in a way that would not have been the case in the prior 10 years to that.”
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Frantz: Short VC fund cycles force artificial liquidity pressure on startups
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Insight
Frantz: Growth investors must enforce valuation limits to generate strong returns
“And so I think selecting a high quality company is absolutely the most important first step, but I think you need to have limits on how much you're willing to pay for that as you think about making money over the longterm and sort of how your returns will come…”
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AssertionSupported
Frantz: Late-stage private liquidity allows companies to delay going public
“To go public, I would say, you know, it seems like companies need to be a bit larger and a bit more developed than would have been the case 20 years ago. But I think a great deal of the consideration whether they go public Is driven by management teams who may…”
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Insight
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“That's right. In terms of predictable results where, you know, the management team has, the business is mature enough where it lends itself to not perfect predictability because of course that doesn't exist, but at least having a Good sense for the cadence of …”
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