Chapter
The Future of Standalone Product Companies in Silicon Valley
1:13:30 - 1:20:00 (06:29)
Private equity firms may start to acquire previously over-funded companies, cutting costs and building synergies to create standalone product companies, rather than feature companies. This could lead to a rationalization of funding for feature companies in Silicon Valley.
Clips
Private equity firms have a playbook that includes not just cost cutting, but also synergy building, and Coupa’s acquisition by a private equity firm may likely result in new products and services to be sold through existing sales channels and customer bases.
1:13:30 - 1:16:28 (02:58)
Summary
Private equity firms have a playbook that includes not just cost cutting, but also synergy building, and Coupa’s acquisition by a private equity firm may likely result in new products and services to be sold through existing sales channels and customer bases. This may lead to the company being better suited as a feature of another platform than a standalone platform company of its own.
ChapterThe Future of Standalone Product Companies in Silicon Valley
EpisodeE108: Doxing debate, Nuclear fusion breakthrough, state of the markets & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The power law in venture capital refers to how the majority of the returns come from a few successful investments, while the majority of investments don't generate substantial returns.
1:16:28 - 1:20:00 (03:31)
Summary
The power law in venture capital refers to how the majority of the returns come from a few successful investments, while the majority of investments don't generate substantial returns. However, with the emergence of crowdfunding, the masses now have access to this capital and can potentially benefit from the power law effect.