![]() Benchmark famously believes that venture capital doesn't scale. There was a flotation with an empire in there as we'll get into.īen: There was. Our Sequoia and Andreessen episode was about the empires that those firms chose to build, and this episode is about the empire they chose not to.ĭavid: Or maybe. Today, we are going to talk about a firm who built one of the top franchises in venture capital, Benchmark, that has incredibly managed to do both. ![]() Then, once you've done that, the next hardest thing is to keep doing it with an entirely different generation of partners. The hardest thing to do in venture capital is create those massive outsized returns that only come from investing in one of the five or so truly important companies each decade. I'm Ben Gilbert, and I'm the co-founder and managing director of Seattle-based Pioneer Square Labs and our venture fund, PSL Ventures.ĭavid: And I’m David Rosenthal, and I'm an angel investor based in San Francisco.īen: And we are your hosts. Thank you as well to Wilson Sonsini - You can learn more about WSGR at: īen: Welcome to season 11, episode 4 of Acquired, the podcast about great technology companies and the stories and playbooks behind them.Thanks to Silicon Valley Bank for being our banner sponsor for Acquired Season 6.We have five honorable mentions that didn’t make our Top Ten list.It is obviously subject to change going forward from both future and past acquisition performance, as well as fluctuating stock prices. This ranking represents a point in time in history, March 2, 2020.If we made an assumption not disclosed by the parent company, we linked to the source of the reported assumption. All underlying assumptions are based on public financial disclosures unless stated otherwise.We recognize this analysis is flawed (cashflow/profit multiples are better, at least for mature companies), but given the opacity of most companies’ business unit reporting, this was the only way to apply a consistent and straightforward approach to each deal. If you have any examples you think we missed ping us on Slack or email at: We used revenue multiples to estimate the current value of the acquired company, multiplying its current estimated revenue by the market cap-to-revenue multiple of the parent company’s stock. We considered all historical acquisitions - not just technology companies - but may have overlooked some in areas that we know less well.Naspers’ investment in Tencent and Softbank/Yahoo’s investment in Alibaba are disqualified for this reason. In order to count for our list, acquisitions must be at least a majority stake in the target company (otherwise it’s just an investment). ![]() ![]() Bill Gurley’s Runnin’ Down a Dream talk.If you want more Acquired, you can follow our public LP Show feed here in the podcast player of your choice (including Spotify!). If you’re a student of the venture game from any angle - founder, GP, LP, etc - this is a story you need to tune in for! We spend 3.5+ hours digging into how the dotcom “eBay eBoys” transformed into the rockstar Fab Four of the Uber, Instagram and Snap mobile gold rush (spoiler: not by a straight line!), and what the future holds for Benchmark’s next GP generation. If ever there were a playbook for successful generational transfer of a generational-defining venture firm, this is it. We tell the tale of the legendary equal partnership that accomplished something no other venture firm can claim: twice it has produced the highest returning fund of its cycle, each time with a 100% different GP lineup. The Complete History & Strategy of Benchmark Capital īenchmark Capital.
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