KKR Launches New Tech Growth Fund

The video discusses the differences between venture capital and growth equity, highlighting how companies are staying private longer and need different investors. It explains the decision to invest in Lyft, considering factors like regulatory risks and unit economics. The discussion also covers the pros and cons of being a public versus private company, emphasizing market feedback and discipline. The video identifies key tech investment areas such as enterprise software and cybersecurity. Finally, it explores Lyft's potential IPO with the help of KKR's capital markets team.

What is a key difference between venture capital and growth equity as discussed in the video?

• Growth equity avoids investing in tech unicorns.

• Venture capital is only interested in public companies.

• Growth equity is more concerned with guiding companies through extended private phases.

• Venture capital focuses on long-term investments, while growth equity focuses on quick exits.

Why did the investors choose to invest in Lyft over Uber?

• Lyft had already achieved attractive unit economics.

• Uber was not seeking investment at the time.

• Lyft's founders had a strong relationship with the investors.

• Lyft had better regulatory compliance.

What was a major concern for investors regarding Lyft's early investment?

• The high competition from smaller rideshare companies.

• The absence of a clear market strategy.

• The lack of a strong management team.

• The company's ability to control cash burn.

Which area is NOT mentioned as a focus for tech investments?

• Enterprise software

• Cybersecurity

• Digital media

• Biotechnology

What advantage does having an in-house capital markets team provide?

• It ensures higher stock prices post-IPO.

• It reduces the need for external audits.

• It aligns interests with the company for better resource allocation.

• It guarantees a successful IPO.