20VC: Foundation Models are the Fastest Depreciating Asset in History, Lina Kahn is a Threat to American Capitalism, PE is Not Coming to Save the M&A Market & How China Could Overtake the US in the AI Race with Michael Eisenberg
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
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Deepening Competitive Advantage in Investment Evaluation
When evaluating investments, it is crucial to assess the sustainability and depth of the competitive advantage of portfolio companies. The focus should not just be on TVPI but also on DPI, which reflects the real value generated. The length of future cash flows depends on the competitive advantage, emphasizing the importance of understanding how deep and sustainable the advantage is. The lasting power of a company's competitive advantage determines its long-term value, making it vital to delve deeper into the competitive moats of businesses. This analysis is essential as only a small number of companies significantly impact TVPI and the sustainability of their growth is paramount in investment assessment.
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