Does buying “sexy” companies make firms money?
For example, when growth equity companies buy stakes in up and coming popular consumer products like Oatly, Hippeas, Van Leeuwen, all birds etc. aren’t they priced at such high valuations that it’s difficult to see such high returns hence the later stage investment.
What are the typical return profiles of investing in trendy brands where every firm is competing to get ownership in them?
A few of the firms that come to mind are Strand Equties, Lerer Hippeau, Silas
Anyone have any insight on their IRR/EM targets
Anyone from SoftBank on WSO wanna take a crack at this?
I’d honestly love for someone who actually works at SoftBank to inform us all on the nuanced investment decisions the firm makes and the process. AMA anyone!?
If by “sexy” you mean SEX DUNGEON, absolutely
Sexy companies is one thing. Sexy, fast growing industries are much more interesting and easier to make money on.
Why so? Paying a higher multiple no?
Yes, but a rising tide lifts all boats.
Supply chains that benefit from sexy industries even sexier....existing cash cow plus TAM expansion. Sexy^3.
TAM expansion is probably the reason Softbank did all those great investments..
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