Stop listening to your bankers and go public, says top late-stage team
Technology Crossover Ventures has become a major investing powerhouse over its 22-year-old history by funding relatively undiscovered but mature companies; buying sizable stakes in later-stage, venture backed companies; and acquiring positions in publicly traded tech companies that TCV sees as undervalued.
The firm, which is headquartered in Palo Alto, has done so well that it just wrapped up its ninth fund with a cool $2.5 billion. It also now features offices in New York (opened in 2005) and in London (opened in 2011).
Late last week, over coffee at a San Francisco bistro, we sat down with TCV’s founding general partner, Jay Hoag, and general partner Woody Marshall, to talk about some of the firm’s latest hits, which include recently sold DollarShaveClub, on whose board Marshall sits, and LinkedIn, some of whose shares TCV acquired in February when they plummeted more than 40 percent.
We also talked about why why mutual fund companies (with which TCV sometimes competes on deals) don’t make great private company shareholders, and the sometimes bad advice of investment bankers, who are largely telling companies to wait until 2017 to go public. Our chat, edited for length, follows.
TC: You’ve invested roughly $700 million in Europe since opening an office in London, including deals in Spotify and World Remit. That’s a lot of capital.
JH: In London and Berlin and the Scandinavian countries, there was lots of activity we were seeing, and we thought it better to see it from quasi-local office, and we’ve been pleased with the companies we’ve seen.
WM: In Europe, [the investors on the ground are] very much early stage or buyouts or else guys who may call themselves growth equity investors but are really doing growth-buyout deals with a lot of debt. In terms of minority investments that startups can spend on product and sales and tech and marketing, we don’t have a lot of [competition].
Read the full article here.
Originally published at techcrunch.com on August 15, 2016.