Neil Mehta

And if you look at the matrix we just described, you divide by sector, industry or whatever, it's geography, stage. By and large, people are doing investing. It sort of looks like painting with numbers or something like that. You're looking for certain types of characteristics around growth rate. And by the way, venture capital didn't invent this.

And if you look at the matrix we just described, you divide by sector, industry or whatever, it's geography, stage. By and large, people are doing investing. It sort of looks like painting with numbers or something like that. You're looking for certain types of characteristics around growth rate. And by the way, venture capital didn't invent this.

Summit and TA have been doing it on the growth side for a long time. Insight's pretty good at it. On the private equity side, the entire industry works this way. If it's a 21 IRR, you do it. It's a bulge bracket private equity. If it's 21 IRR, you do it. And if it's an 18 or 17 unlevered, you don't. Maybe that's even true. But those are kind of the numbers. I think the mistake people are making...

Summit and TA have been doing it on the growth side for a long time. Insight's pretty good at it. On the private equity side, the entire industry works this way. If it's a 21 IRR, you do it. It's a bulge bracket private equity. If it's 21 IRR, you do it. And if it's an 18 or 17 unlevered, you don't. Maybe that's even true. But those are kind of the numbers. I think the mistake people are making...

is this is not the private equitization of our industry. These are founders building companies. Now, private equity goes to the highest bidder. Every company essentially goes to the highest credible bidder that could move fast and straightforward. In our industry, I can't think of a single company in our portfolio, not one. Tell me if you can think of one in yours that took the highest valuation.

is this is not the private equitization of our industry. These are founders building companies. Now, private equity goes to the highest bidder. Every company essentially goes to the highest credible bidder that could move fast and straightforward. In our industry, I can't think of a single company in our portfolio, not one. Tell me if you can think of one in yours that took the highest valuation.

They took some combination of the partner, brand, speed, the understanding, the capability of that firm, and valuation. Now, that doesn't mean you could be the lowest valuation. That's certainly not what I would claim. In fact, I think in some cases, we are the highest valuation too. But we have differentiated insight on why we are willing to pay that without sacrificing returns.

They took some combination of the partner, brand, speed, the understanding, the capability of that firm, and valuation. Now, that doesn't mean you could be the lowest valuation. That's certainly not what I would claim. In fact, I think in some cases, we are the highest valuation too. But we have differentiated insight on why we are willing to pay that without sacrificing returns.

That comes from understand. And if you are driving for coverage, if your job is to make sure you don't ever miss a series A, and you're doing that by hiring a very large number of people, then what you're sacrificing is fidelity and insight. It's impossible. You can't scale that with an entire organization to like a couple individuals. I've never met a firm

That comes from understand. And if you are driving for coverage, if your job is to make sure you don't ever miss a series A, and you're doing that by hiring a very large number of people, then what you're sacrificing is fidelity and insight. It's impossible. You can't scale that with an entire organization to like a couple individuals. I've never met a firm

that's had more than a few good investors. It's so hard. So you end up just doing a lot more. And it's not clear to me that any firm is that good at figuring out what's good and what's truly exceptional immediately. Figure it out over time. I was looking back at a lot of our Series Bs that we've invested in. Most of what we do are Series Bs in ours.

that's had more than a few good investors. It's so hard. So you end up just doing a lot more. And it's not clear to me that any firm is that good at figuring out what's good and what's truly exceptional immediately. Figure it out over time. I was looking back at a lot of our Series Bs that we've invested in. Most of what we do are Series Bs in ours.

I was looking back at every round that we had done for the better part of 13 years and Every single one of those had some other company that traded in its sphere of competition that traded at approximately the same turn within the same 12 months. Isn't that crazy? The best companies and the worst companies at the Series B or Series A trade at approximately the same amount.

I was looking back at every round that we had done for the better part of 13 years and Every single one of those had some other company that traded in its sphere of competition that traded at approximately the same turn within the same 12 months. Isn't that crazy? The best companies and the worst companies at the Series B or Series A trade at approximately the same amount.

So there's exceptions here and there, but by and large, very few people could actually tell the difference between the two. Now, if you and I were evaluating Coca-Cola, you might know 10 times more than I know about Coca-Cola. If we both had to figure out what earnings per share were in 10 years, we wouldn't be that far apart. It doesn't matter that much.

So there's exceptions here and there, but by and large, very few people could actually tell the difference between the two. Now, if you and I were evaluating Coca-Cola, you might know 10 times more than I know about Coca-Cola. If we both had to figure out what earnings per share were in 10 years, we wouldn't be that far apart. It doesn't matter that much.

But in our industry at the Series B, we can both look at two companies kind of competitive, both doing 30 million in ARR, growing 100% a year. there's a chance that the one you invest in is worth many billions in enterprise value in the future. And the one that I invest in is borderline insolvent in five years.

But in our industry at the Series B, we can both look at two companies kind of competitive, both doing 30 million in ARR, growing 100% a year. there's a chance that the one you invest in is worth many billions in enterprise value in the future. And the one that I invest in is borderline insolvent in five years.

There's a huge spread, but yet it's most likely that the Series Bs, those trade approximately the same amount, same term. And so I think having a system that allows you to build differentiated insight in a targeted way can yield better results. I can't promise it, but it's also just a much more fun way to live life. I think when you talk to founders... Now, again, for...

There's a huge spread, but yet it's most likely that the Series Bs, those trade approximately the same amount, same term. And so I think having a system that allows you to build differentiated insight in a targeted way can yield better results. I can't promise it, but it's also just a much more fun way to live life. I think when you talk to founders... Now, again, for...