Newsletter
This week, Insight Partners announced an investment into Gamma Technologies, a physics-based simulation software. On the surface, nothing about this announcement seems out of the ordinary. Gamma offers simulation software that enables engineers to simulate fluid systems, thermal systems, fluid systems, and propulsion. The investment makes total sense given the
Newsletter
Last week, software valuations finally overcame interest rate and inflation fears to post their first positive week of 2022. Where does that leave valuations after the sustained pullback, and where could they go from here? If the correction remains in place and sustains itself for a long time, the private
Newsletter
Last month, Credit Suisse released their 2022 equities outlook and the top theme was decarbonization. Coming out of COP26, institutional financial managers committed $57T (yes, trillion) of AUM for net-zero by 2050. As of 2020, the number is $16T. In addition to an increase of capital with net-zero targets, 90%
Newsletter
One of the key advantages of the software business model is capital efficiency. Efficient businesses earn the right to experiment in more capital-intensive customer segments that could produce higher returns at scale or deploy it more quickly to win big markets. However, the influxes of capital that fuel these experiments
Newsletter
It's no secret that valuations spent the last 24 months on an incredible run. However, the conversation has often centered around early-stage multiples. We often see comments in the neighborhood of "this company raised at a $1B valuation with only $2M of ARR (or none)". Yet,
Newsletter
When I first started investing in startups, I knew that I enjoyed building companies and had a passion for the energy transition. But the more I studied investing, my passion became about applying the best investment techniques to a problem I loved. My thesis was simple, if economics drive mass
Newsletter
With the threat of an increase in interest rates looming, growth tech stocks in the public markets started 2022 on shaky ground. The average forward revenue multiple for these companies contracted by 50% from 22x to 11x. In a recent Bloomberg appearance, David Rubenstein of Carlyle speculated that we could
Newsletter
If you spend enough time venture capital or private equity, you'll eventually hear the phrase, "businesses are bought, not sold." This adage asserts businesses that sell for the highest price do so because they are valuable to someone else as part of another whole. The buyer
Newsletter
The below appeared as a thread on my Twitter account @kevindstevens. How are field operations in some of the largest industries increasing connectivity? The answer is companies like Samsara. Last week, Samsara filed its S-1 for IPO. Here’s a quick look at what the business does and how its
Newsletter
Yesterday, ChargePoint announced its Q2 earnings, and the results were impressive. I've commented on ChargePoint's acquisition strategy in the past. The pivot to a more software-oriented business is a wise one. As chargers become more ubiquitous in the home, public charging will likely evolve into a
Newsletter
Anyone who's ever asked me for career advice knows that I'm fond of two principles. The first and most important is playing long-term games with long-term people. The second is playing the "right" game is more important than 90% of other variables. The latter
Newsletter
Word broke yesterday that Tesla has applied to be an energy retail provider (REP) in Texas. Juan Muldoon on our team is a fan of saying "decommoditize the commodity" and Tesla has as good a chance at doing this with power as anyone. There are obvious opportunities to