Continuing the Arc of Growth in Business with Growth Capital with Josh Tanzer and Gabor Vari
Josh Tanzer is a managing partner of Principia Growth, a growth capital firm based in Los Angeles and New York focused on late-stage private technology investments. Josh is a 25-year veteran of Silicon Valley and growth capital having arranged and invested in over 160 late-stage financings totaling over $6.5 billion. Gabor Vari, MD is an experienced CEO, investor, and Board Member. He is currently an Entrepreneur In Residence at Principia Growth and sources investment targets, performs industry and company research and diligence, and attends investment committee meetings. Listen in! Key Highlights: [00:01 - 14:41] Growth Capital to Continue the Arc of Growth of the Business Growth capital is equity capital that goes into a business to continue its growth. It differentiates itself from venture capital by taking a controlling stake in the company. Growth capital is all about providing funds to continue the arc of growth of the business. Principia has a deal-by-deal fund structure, eliminates fees for investors, and has a deep advisory board of operating executives. .[14:42 - 27:29] How to Protect your Investments in the Current Market Principia invested in Salesforce very early on when it was approximately 25 million of annual recurring revenue. Such triggered software and fintech infrastructure as attractive investments. The goal is to find companies with momentum in the specific sector and to have the management and board be in line with expectations with liquidity. In today's environment, companies are staying private for longer, which can lead to less downside protection for investors. To protect against this, Principia brings capital market experience and the intent of the company to the table when underwriting investments. [30:24 - 43:26] Regulatory Outlook Positive for Crypto Industry The current market conditions and various levers being pulled by the Federal Reserve are impacting investment decisions. Josh and Gabor explain how they are very selective in their deal flow, and that 80-85% of their deals come from relationships that have been built over time. [38:49 - 39:57] Closing Segment Learn more about growth equity by contacting Josh and Gabor using the links below. Key Quotes: “There's a certain amount of euphoria that and I think a little bit of a bubble happening in crypto slash blockchain that, you know, for those of us was lived through different tech bubbles, can see this bursting at some point. But we don't dismiss those technologies. Just like when the internet bubble burst, the Internet didn't go away. So there are still good opportunities to invest.” - Josh Tanzer “A lot of people don't understand that companies have a lifecycle, you know, their ability to change. And it has been since probably Xerox and IBM got started in the 1950s. So things come along that will usurp or supplant that the new technology from today… So I think some investors come in paying way too high valuations. ” - Josh Tanzer Connect with Josh: Email: [email protected] Linkedin: https://www.linkedin.com/in/josh-tanzer-4a271157/ (https://www.linkedin.com/in/josh-tanzer-4a271157/) Website: https://principiagrowth.com/ (https://principiagrowth.com/) Connect with Gabor: Email: [email protected] Linkedin: https://www.linkedin.com/in/gabor-vari-md/ (https://www.linkedin.com/in/gabor-vari-md/) Website: https://principiagrowth.com/ (https://principiagrowth.com/) Connect with me onhttps://www.linkedin.com/in/brian-c-adams/ ( LinkedIn)! LIKE, SUBSCRIBE, AND LEAVE US A REVIEW on Apple Podcasts, Spotify, Google Podcasts, or whatever platform you listen on. Thank you for tuning in and Stay Tuned for the Next Episode COMING SOON!