Frantz: Alphabet's patient capital allows CapitalG to avoid IPO timeline pressure
Gene Frantz · 20VC: 2 Signs That A Company Is Ready For IPO, Why Fund Cycles Are Too Short & Why Management Teams Do Not Want To Go Public with Gene Frantz, General Partner @ CapitalG · Apr 26, 2017 · at 8:50
Gene Frantz, General Partner at CapitalG, discusses how having Alphabet as their LP relieves pressure to push portfolio companies toward immediate IPOs.
0:00 / 0:20exact quote · 20.8s
720p mp4 · rendered on demand · StarZero watermark
“We have in our LP here at Google, Alphabet, the ultimate and very patient capital. And so, if we can find companies to invest in that we can be in for a very long period of time, That are growing and doing the things that they want to be doing and building value. Having a longer time period before one goes public is totally fine from our perspective.”
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 Gene Frantz
Frantz: Short VC fund cycles force artificial liquidity pressure on startups
“And even though funds are ten-year funds, which sounds like a long time, you know, the average investment period for most Funds is probably, you know, three to five years, and so what that means is that every three to four to five years, you've got funds out r…”
Frantz: Backing high-quality tech companies requires paying full market price
“And for the record, to be involved with any high quality company, you will be paying a full price in the market that we live in today.”
Frantz: Growth and private equity have become highly commoditized since 2007
“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.”
Frantz: Stripe is a revolutionary payments company with extraordinary traction
“I think our most recent public investment, most recent investment in a private company that, that, that's been publicly disclosed is Stripe, which is a revolutionary company in the payment space with an extraordinary team and traction that's quite unlike what …”
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…”
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…”