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The Unbundling of "Growth" Equity

generalcatalyst.com · 2,224 words · saved by 2 readers

Money has product-market fit, but not all capital is born equal. At General Catalyst, we are creating novel financial solutions to help the next generation of entrepreneurs build enduring businesses. Over the last decade, subscription and subscription-like business models have become pervasive. Business models have shifted to allow customers to grow into their lifetime value rather than commit to large upfront payments: this was manifested in the move to “pay-as-you-go” pricing structures. This includes business models as diverse as: paying one-time for DVDs to streaming on-demand; purchasing a computer game upfront to in-app purchases; perpetual licenses to SaaS; and the list goes on. This model came to dominate because it works: companies can widen their net and capture more initial customers, who over a period of time become much more valuable than the set of customers willing to engage in a lump-sum upfront purchase. Companies noticed this, as did investors. But this shift creates

The Unbundling of "Growth" Equity Search The Future of Services Portfolio Copy Logo as SVG Copy Wordmark as SVG The Unbundling of "Growth" Equity Pranav Singhvi KV Mohan Example H2 Example H3 The largest wealth transfer in the history of venture? Over the last decade, subscription and subscription-like business models have become pervasive. Business models have shifted to allow customers to grow into their lifetime value rather than commit to large upfront payments: this was manifested in the move to “pay-as-you-go” pricing structures. This includes business models as diverse as: paying one-ti

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