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In The Trenches cover image

Jeff Stevens & A.J. Wasserstein on The Future of Entrepreneurship Through Acquisition

In The Trenches

NOTE

Impact of Larger Investors in the Ecosystem

The model's natural ceiling will be tested over time, as larger investors enter the ecosystem. Having larger investors can be beneficial if they bring real bandwidth and maintain discipline. However, there is a concern about the potential negative second and third-order effects of larger capital allocators pushing to deploy more capital, leading to an increase in deal sizes with some exceeding $100 million.

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