Yet Another Value Podcast Investing in growth tech with Lead Edge Capital's Evan Skorpen
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Dec 22, 2025 Evan Skorpen, an investor at Lead Edge Capital, specializes in concentrated public investments in growth tech. He discusses the challenges and strategies in navigating valuation dislocations, known as 'air pockets,' and the evolving impact of AI on software companies. Skorpen emphasizes the importance of aligning long-term KPIs with executive incentives and the necessity of clear communication during investor days. He also shares insights on managing CEO performance metrics and how quality management can influence investment decisions.
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Buying Into Air Pockets
- Lead Edge buys growing tech companies when valuation disconnects create an "air pocket" and holds concentrated positions for ~3 years.
- They leverage an LP network and private-market history to build positions and influence management over time.
The SaaS Adolescent Problem
- SaaS companies face an ‘adolescent’ phase where growth slows before margins ramp and capital allocation becomes critical.
- Public listing removes the private-market escape hatch and forces management to make hard allocation and messaging choices.
Buy Low To Give Management Options
- Enter positions at lower valuations to give management multiple options to create shareholder value (growth, margin expansion, buybacks).
- That flexibility makes capital allocation and strategic pivots feasible when macro conditions change.