The holding company of FBA businesses that have gross revenues of over $200 million and $35 million trailing 12 months EBITDA buy smaller businesses in niche markets that would do individually, single digit millions a year in revenue and roll them up.
There are 15 private companies valued over $10 billion while there are 60 public companies of the same value. Additionally, there are already 70 public companies with $1 billion in revenue for the next 12 months.
A mystery company backed by Softbank is making over $100 million a year by buying popular items like Ben and Jerry's and chips.
The speaker mentions that multiple groups have reached out to offer up to $5 million to buy Repl.it stock, which has a currently estimated valuation of $200 million. They also list several other notable tech companies, including Flexport and Airtable.
The speaker cautions against investing based on short time horizons and focusing on the company's popularity instead of its potential for long-term growth and profitability.
The speaker discusses the benefits of internal venture capital, such as incubating businesses with low downside instead of making investment deals with high-value companies.