Sands Capital - What Matters Most

As artificial intelligence (AI) becomes a part of oureveryday lives, making sure it’s transparent and unbiased has become a high priority for businesses, governments, and ordinary people. In this episode of What Matters Most, Scott Frederick, a Sands Capital managing partner, explains howsoftware startup Credo AI is helping to keep AI models responsible. Join us as we look at how Credo AI aims to lead the way  in this vital new field. Show Notes:(2:10) AI Has Evolved Over Decades(4:48) Responsible AI vs. Ethical AI(9:29) Simplifying AI Governance with Credo AI(14:10) Can Agents and Artificial Superintelligence beTransparent?(18:27) Solving the Alignment Problem(20:16) Industries Ripe for Credo AI’s Solution(22:14) Market Timing and Other Potential Headwinds(24:53) How Big of a Market Could AI Governance Be? Review our podcast season and episode disclosures ⁠⁠⁠⁠⁠here⁠⁠⁠⁠⁠. Learn more about ⁠⁠⁠⁠Sands Capital⁠⁠⁠⁠, sign up for ⁠⁠⁠⁠our newsletter⁠⁠⁠⁠, and ⁠⁠⁠⁠follow us on LinkedIn⁠⁠⁠⁠.

In this episode of Season 3 of What Matters Most, Sands Capital’s Eduardo Leal explains how Brazil’s Nubank went from startup to the country’s second largest corporation in just 10 years — and the company’s digital-first banking platform.  Join us as we explore how mobile banking is opening financial doors for global citizens and how we believe Nubank is poised to remake the Brazilian banking industry. Show Notes (2:23) The State of Banking for 700 million Latin Americans (4:32) Founder David Vélez’ Story (7:32) How NuBank Serves a Fundamental Need (10:48) A Lean, Mean Business Model (13:45) Overcapitalization: A Good Problem to Have (17:06) How Sands Capital First Spotted NuBank (18:46) Potential Risks to Future Growth (21:01) Could NuBank Expand Beyond Latin America? (22:29) The Next 10 Years Review our podcast season and episode disclosures ⁠⁠⁠⁠here⁠⁠⁠⁠. Learn more about ⁠⁠⁠Sands Capital⁠⁠⁠, sign up for ⁠⁠⁠our newsletter⁠⁠⁠, and ⁠⁠⁠follow us on LinkedIn⁠⁠⁠.

In our first episode of season 3’s What Matters Most, Sands Capital’s Emerson Bluhm explains why Samsara’s integrated hardware and software technology continues to gain market share and why this investment opportunity is aligned with Sands Capital’s philosophy. Join us as we explore the future of real-world operations and why Samsara is poised to become a leader of this ~$4 billion North American market. Show Notes (1:17) From Private Funding to Public Success (3:50) A Software Company that Knows Hardware (4:43) Why Physical Operations is Ripe for Disruption (6:54) Leadership with a Proven Track Record (11:04) The Value of Samsara’s Integrated Platform (16:17) ‘AirTags’ for Cranes, Tools and Everything in Between (19:44) Third-party Integrations and Realtime Decision-making (21:07) Return-on-investment for End Users (22:34) Samsara’s Long-term Growth Potential (24:13) The Stickiness Subscription-based Revenue Learn more about ⁠⁠Sands Capital⁠⁠, sign up for ⁠⁠our newsletter⁠⁠, and ⁠⁠follow us on LinkedIn⁠⁠. Review our podcast season and episode disclosures ⁠⁠here⁠⁠.

Daniel Pilling, a technology analyst at Sands Capital with a focus on semiconductors, dives into the explosive growth of the semiconductor industry, driven by AI and machine learning. He explores the intricate history from vacuum tubes to today's advanced chips and discusses the complexities of manufacturing processes. Pilling highlights Entegris's critical role in supplying essential materials and the unique challenges and opportunities faced in this rapidly evolving market, suggesting that investment strategies should avoid betting on single winners.

Discover the booming world of factory automation and why Keyence stands out in this landscape. The discussion highlights the company's unique business model, high margins, and its strategic advantage during the pandemic-driven shift towards automation. Insights cover the importance of thorough research, including factory visits, and Keyence's approach to ESG. Learn about collaborative investment strategies and what a 'cobot' is while exploring the future of automation across various industries.

In this episode of What Matters Most, we delve into the world of Titan, India’s leading jewelry and watch retailer, with Sands Capital Sr. Research Analyst Massimo Marolo. Explore the cultural significance of gold in India, the dynamics of the fragmented jewelry market, and Titan’s advantages as a trusted, vertically integrated brand. The conversation highlights Titan’s potential to further consolidate the industry and increase its market share as well as its commitment to sustainability and ethical sourcing in its gold supply chain. Tune in to discover how Titan is shaping the future of jewelry retail in India. Episode Transcript ⁠Available Here⁠. (1:14) The Promising Business Space of the Indian Jewelry Industry (2:34) Titan's Advantage as a Trusted Brand (5:18) Differentiating Titan from Unorganized Mom-and-Pop Jewelers (17:09) Cultivating Relationships and Localized Designs (26:04) Vertical Integration and Staying Ahead of Trends (31:24) Sustainability and Ethical Sourcing Related content from Sands Capital ⁠Sign up to receive our monthly Perspectives newsletter: ⁠Our latest thinking on innovation investing, long-term capital, and culture. In case you missed it: What Matters Most Episode 10: Placing Bets on Innovation: Flutter's Revolution in Online Gambling Catch our most popular episodes from this season: Globant Takes A Design-First Approach to Pure Play Digital Service⁠ ⁠⁠Revolutionizing Public Safety: The Axon Ecosystem⁠⁠ ⁠Follow What Matters Most⁠ wherever you listen to podcasts and never miss an episode. Learn more about ⁠Sands Capital⁠, sign up for ⁠our newsletter⁠, and ⁠follow us on LinkedIn⁠. Review our podcast season and episode disclosures ⁠here⁠.

Research analyst Katherine Bates from Sands Capital discusses Flutter, the leading online sportsbook and gaming operator, covering topics like mobile penetration, parlay betting innovation, competitive advantages, problem gambling, licensing fees, and Flutter's growth strategies in the online gambling industry.

Research Analyst Brian Crofton discusses Kaspi's evolution into Kazakhstan's premier digital financial services company, highlighting its super app ecosystem and unique challenges. Topics include fintech, business model overview, IPOs, Kazakhstan's geopolitical landscape, growth opportunities, and the future of digital finance.

In this episode of What Matters Most, Sands Capital Sr. Research Analyst Daniel Pilling takes us on a deep dive into the world of Cadence, the leading software provider in the semiconductor industry. From the evolution of semiconductor design to the potential of generative AI, we explore the intricate processes and challenges in chip design. We delve into the cyclical nature of the semiconductor industry, the value addition in both leading edge and analog chips, and the strategic role Cadence plays in this dynamic ecosystem. With their software integrated into the manufacturing process of semiconductors, Cadence has the potential to shape the future of the industry. Episode Transcript ⁠Available Here⁠. Show Notes: (00:53) Cadence’s two offerings (03:00) Overview of the semiconductor manufacturing process (if you didn’t listen to the Entegris episode) and the three-legged stool analogy (05:34) Electronic design automation (EDA) tools and evolution of semiconductor design process (09:52) Physical limitations, shrinking transistors, and the laws of physics (13:04) Error reduction, adapting to increasing complexity, and generative AI (17:17) Daniel’s five- to 10-year view on whether AI is a future alternative to EDA (19:00) Who actually uses Cadence software? (21:49) A counter to the cyclical nature of the semiconductor industry (23:31) The value added in analog chips, and legacy Cadence software (25:58) Frequency of chip re-architecting (28:22) Management team and a second act (30:55) Risks and how Cadence can benefit from the Jevons Paradox (34:25) Daniel’s not worried about “the wall of worry.” (36:05) The end of Moore’s Law and the paradigm shift to quantum chips (40:36) How did Daniel become an investor? (44:44) Daniel’s closing hypothesis and conviction in investments Related content from Sands Capital Business Breakdowns Podcast: Daniel Pilling - Entegris: Solutions for Semiconductors ⁠Sign up to receive our monthly Perspectives newsletter: ⁠Our latest thinking on innovation investing, long-term capital, and culture In case you missed it: What Matters Most Episode 7: Globant Takes A Design-First Approach to Pure Play Digital Service Catch our most popular episodes from this season: Kaspi: The Super App Reshaping Kazakhstan’s Financial Landscape ⁠⁠Revolutionizing Public Safety: The Axon Ecosystem⁠⁠ Follow What Matters Most⁠ wherever you listen to podcasts and never miss an episode. Learn more about ⁠Sands Capital⁠, sign up for ⁠our newsletter⁠, and ⁠follow us on LinkedIn⁠. Review our podcast season and episode disclosures ⁠here⁠.

If you’ve never thought about investing in IT services, this podcast episode could change your mind. Sands Capital Sr. Research Analyst Eric Black takes you through the investment case for Globant, the world’s largest pure play design-first digital services provider. Asset-light businesses such as Globant can be hard to evaluate, but the opportunities in the 1.5 trillion market of IT Services are undeniable. Eric helps us see why, unpacking the potential of AI, Globant’s strategic business partnerships, and the loyalty the company has generated from the more than 1,500 Fortune 500 and Fortune 2000 companies on its client list. Globant’s cutting-edge software solutions have made their way into products at Disney, ESPN, and Google and are making lives easier around the globe. Episode Transcript Available Here (01:50) Not a labor-cost arbitrage model (03:44) The Disney Magic Band. The Globant product you’ve probably already seen. (05:14) Tech companies don’t do everything in-house. Enter: Globant. (06:59) What makes Globant a growth business? (08:41) A Thought Leader in AI for the last decade and MaganifAI (11:45) The research process into digital transformation (14:31) A one-size-fits-all all approach would be antithetical to the way Globant operates (18:26) The pandemic boost and a global presence (21:51) “Value-added focus” and the power of a leader (25:10) The competitive moat for a huge market and Globant’s potential advantages (28:24) Competitors have the same advantages? Why we like Globant’s pure play angle. (31:19) The disruptors lying in wait (34:21) Staffing costs and flexing to keep margins high and remain profitable (36:25) Researching a company operating in intangibles: what’s different? (39:04) The portfolio managers visit Buenos Aires (40:44) From “why would you invest” to “what’s the insight”? (43:04) Responsible investing in human capital, labor rights and gender diversity (44:49) Nefarious digital technology and cybersecurity - Globant’s response. (49:26) Under the radar companies and enablers of big trends can make for great investments (52:56) Quick recap of Season 2 episodes Related content from Sands Capital ⁠Sign up to receive our monthly Perspectives newsletter: ⁠Our latest thinking on innovation investing, long-term capital, and culture In case you missed it: What Matters Most Episode 6: Revolutionizing Public Safety: The Axon Ecosystem ⁠Catch our most popular episodes from this season: ⁠Kaspi: The Super App Reshaping Kazakhstan’s Financial Landscape Inside Cadence: The Software Powering Semiconductor Breakthroughs ⁠Follow What Matters Most⁠ wherever you listen to podcasts and never miss an episode. Learn more about ⁠Sands Capital⁠, sign up for ⁠our newsletter⁠, and ⁠follow us on LinkedIn⁠. Review our podcast season and episode disclosures ⁠here⁠.