It strikes me that there has been a recent growth in discussions about tech companies that are able to return cash to shareholders in non-exit-dependent event ways. Tiny Company, OF, Constellation Software...lots of folks talking about more mid-market plays with a desire to see cash returns earlier and in the pockets of shareholders, versus being patient and relying on markups.
Of course, the financial structure around traditional VC remains the same, but it seems like new vehicles are being ‘figured out’ to get closer to a more dividend style approach to indie companies/startups, which I think is pretty exciting.
I know I am a broken record but yet another benefit of public markets is being able to design a security that reflects the economics of the industry. Thinking here of bank/utility preferreds etc. Whereas in VC the security is, in essence, pre-defined and the job is to find businesses and situations that fit within it. You end up completely un-exposed to industries that don't have a market structure that fits.
Great piece and enjoyed the new interview format.
It strikes me that there has been a recent growth in discussions about tech companies that are able to return cash to shareholders in non-exit-dependent event ways. Tiny Company, OF, Constellation Software...lots of folks talking about more mid-market plays with a desire to see cash returns earlier and in the pockets of shareholders, versus being patient and relying on markups.
Of course, the financial structure around traditional VC remains the same, but it seems like new vehicles are being ‘figured out’ to get closer to a more dividend style approach to indie companies/startups, which I think is pretty exciting.
I know I am a broken record but yet another benefit of public markets is being able to design a security that reflects the economics of the industry. Thinking here of bank/utility preferreds etc. Whereas in VC the security is, in essence, pre-defined and the job is to find businesses and situations that fit within it. You end up completely un-exposed to industries that don't have a market structure that fits.