The speaker discusses the reasons why big companies are willing to pay millions for a product that may not have any revenue or users. They prioritize strategic goals that can potentially bring a significant payoff for their company value.
Founder of the Diamond Producers Association, Jean-Marc Lieberherr, explains how he utilized his expertise in data and marketing to build a distribution network in the fine jewelry industry, ultimately creating a multi-billion dollar company.
The co-founder of Spruce House Investment Management explains how they bought the well-known brand, Pier 1, in a Chapter 11 scenario and the combination of skills and luck that led to the opportunity.
Venture capital investment in private space companies has increased with almost $10 billion invested in 2020 and $2 billion in Q1 2021 alone, with companies like Planet Labs making acquisitions in space imaging.
The tech industry has seen a trend of overvaluing private software companies that does not take into account the difficulty of building a company that generates over a billion dollars in revenue. This attitude is a result of formulaic term sheets and a failure to recognize the uniqueness of successful companies.