revolution is not merely an incremental upgrade; it is a fundamental re-architecture, challenging every established paradigm in venture and growth equity. We witness the public
sector reeling, its once-assured terminal values now under fierce scrutiny. This era demands a new playbook, a re-evaluation of what drives true value, and a relentless focus on the companies building the future, not just iterating on the past. This article plunges into the core of these transformations, revealing the critical need for adaptability, calculated risk-taking, and a visionary approach to investment in a world redefined by exponential growth and disruption.
Insights from Coatue's Growth Investor Lucas Swisher
The Unsettling Truth of Public SaaS and the Rise of Platform Power
wave, particularly with the rapid advancements in coding models, has forced a critical re-evaluation of their long-term value. This uncertainty erodes traditional valuation metrics, making it difficult for investors to discern which companies will thrive and which will falter. Many investors simply exit the sector, seeking clarity elsewhere.
This turbulence highlights a crucial divergence: the public markets, while offering liquidity, struggle to capture the true essence of future growth. How can you own the future if the most transformative companies remain private? Think of powerhouses like
– these are the engines of tomorrow, inaccessible to public market investors. To tap into the future, to secure access to durability and growth exceeding 30%, you must operate in the private markets. This dynamic has fostered the rise of what we call "
." These are massive, rapidly expanding private entities, often multi-product, demonstrating the scale and maturity typically associated with public firms but choosing to retain private status. Companies like
epitomize this trend, embodying the greatest gift venture capital could ask for: direct access to the future's giants before they hit the public stage.
A New Playbook for Value Creation
Rethinking Revenue Durability: S-Curves and Constant Reinvention
