Deconstructor of Fun 304. The Founder’s Dilemma: Equity vs. User Acquisition Financing
20 snips
Sep 8, 2025 In a lively conversation, Pranav Singhvi, Co-founder at General Catalyst, and Joe Wadakethalakal, CEO of PBX Partners, explore the transformative world of user acquisition financing. They discuss how traditional funding struggles to meet the needs of tech companies and the innovative approach of treating cohorts as assets. The duo shares insights on successful strategies, like Superplay's remarkable $2 billion exit. They also tackle the importance of capital allocation and the significance of CAC in a rapidly evolving gaming landscape.
AI Snips
Chapters
Transcript
Episode notes
Cohorts Are Financeable Assets
- User acquisition (UA) is a structured asset once cohorts prove predictable and can be financed differently than equity or traditional debt.
- Treating cohorts as assets aligns payback with revenue and removes the asset-liability mismatch of traditional debt.
Unbundle The Publisher Stack
- Disaggregating publisher services into modular offerings lets founders pick financing, UA optimization, or product help a la carte.
- PVX aims to unbundle publishing to offer financing plus tailored operational insights to studios.
Partnership Born From A Missed Deal
- Pranav met Joe initially as a potential customer while discussing a deal with MPL and built a relationship even though that specific deal didn't close.
- Their early collaboration and mutual respect later led to working together combining GC balance sheet with PVX's gaming focus.