Invest Like the Best with Patrick O'Shaughnessy

Jay Hoag - Keys to Successful Growth Investing - [Invest Like the Best, EP.429]

411 snips

Jun 17, 2025

In this engaging discussion, Jay Hoag, co-founder of Technology Crossover Ventures, shares his pioneering insights into growth investing. He emphasizes the importance of macroeconomic factors affecting technology investments and presents a contrarian view that consumer internet holds significant potential over the trending SaaS and AI sectors. Jay reveals how TCV has evolved from traditional cold-calling to AI-driven sourcing, and he dives into the unique structure of their three-person investment committee, showcasing the balance between aggressive and conservative investment strategies.

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INSIGHT

Macroeconomics Shape Tech Investing

Regulation and macro factors now heavily influence technology investing, unlike in the past.
This adds complexity and uncertainty to investment decisions in tech sectors.

INSIGHT

Opportunity in Consumer Internet

Consumer internet is significantly undervalued now as investors chase SaaS and AI deals.
The vast smartphone user base creates broad opportunities for new consumer franchises.

INSIGHT

Technology vs. Commercialization Gap

Technology availability doesn't equal commercialization; many promising innovations take longer to monetize than expected.
Applicability and monetization models determine investment success, not just tech readiness.

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My guest today is Jay Hoag. Jay is the co-founder of Technology Crossover Ventures, known as TCV, which pioneered the growth investing category and has backed legendary companies like Netflix, Spotify, and Expedia over three decades. Jay explains how macro factors like regulation have become unexpectedly central to technology investing. He offers his contrarian take on today's market, arguing that consumer internet represents significant opportunity while most investors chase SaaS and AI deals. We discuss investing in new technology versus commercialization, TCV’s evolution from cold-calling to AI-powered sourcing of 11 million companies, and their three-person unanimous investment committee structure. Please enjoy my conversation with Jay Hoag.

For the full show notes, transcript, and links to mentioned content, check out the episode page⁠ ⁠⁠⁠⁠here.⁠⁠⁠⁠⁠

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Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠⁠⁠⁠https://thepodcastconsultant.com⁠⁠⁠⁠⁠).

Show Notes:

(00:00:00) Welcome to Invest Like the Best

(00:05:18) Market Conditions and Investment Opportunities

(00:06:57) Consumer Internet Businesses and AI

(00:09:04) Technology Commercialization Challenges

(00:11:30) Public vs. Private Market Dynamics

(00:15:32) Growth Investing and Competitive Dynamics

(00:22:34) History and Resilience of TCV

(00:26:32) Understanding the Firm's Investment Lifecycle

(00:27:06) Evolution of Sourcing Strategies

(00:28:33) The Role of Data Intelligence in Sourcing

(00:29:41) Internal Investment Process at TCV

(00:34:31) Challenges and Strategies in Long-term Investments

(00:41:15) Reflections on the Investment World

(00:43:48) Personal Insights and Final Thoughts