Podcast consensus

Points of consensus

▶G-Squared employs a highly concentrated investment strategy, with 80-90% of its risk allocated to just 10 companies.Mar 2026

▶The firm is willing to make large, singular bets, such as allocating 40% of its $380 million third fund to Spotify.Mar 2026

▶G-Squared's strategy involves investing in both foundational technology platforms (e.g., Spotify, Coursera) and the underlying infrastructure that supports new technology waves, like AI (e.g., Lambda, CoreWeave).Mar 2026

▶The firm actively participates in secondary markets and special situations, such as acquiring Anthropic shares from the FTX bankruptcy proceedings.Mar 2026

Points of debate

▶The high-concentration strategy produces extreme and contrasting outcomes, with massive wins like a $1 billion return on Spotify and an $800 million return on Coursera set against huge losses like an estimated $500 million on Getir and $70 million on 23andMe.Mar 2026

▶The firm's thesis on the ride-sharing market yielded divergent results, generating a 3x return on its Lyft investment while losing 20% (approx. $50 million) on its Uber investment.Mar 2026

▶G-Squared's discipline on valuation has been tested by market cycles; it invested in SaaS companies at a 12x LTM revenue multiple in 2020-2021, which later compressed to around 4x.Mar 2026

▶The firm's ability to generate returns varies significantly by fund vintage and timing, as shown by the quick 3x return on Wiz from its 2022 fund versus losses from earlier market-peak investments.Mar 2026

Key themes

▶High-Concentration, High-Consequence InvestingMar 2026

G-Squared's core strategy involves concentrating 80-90% of its investment risk into a small number of companies, often making single bets that represent a large portion of a fund. This is exemplified by allocating 40% of its third fund to Spotify, which ultimately returned $1 billion to LPs.

This 'all-in' approach means fund performance is dictated by a few key outcomes, creating a high-volatility model where success leads to spectacular returns but failure results in devastating, nine-figure losses like the one experienced with Getir.

▶A Tale of Two Theses: Contrasting Outcomes in Key SectorsMar 2026

The firm's history is marked by starkly different results from bets within the same industry. For instance, in ride-sharing, G-Squared achieved a 3x return on Lyft but lost approximately $50 million on Uber, demonstrating that its success is highly dependent on specific company selection.

This pattern suggests that G-Squared's alpha is generated not from broad sector-level calls, but from its specific, high-conviction due diligence on individual assets, making its ability to pick the right horse in a race paramount.

▶Navigating Market Volatility and DistressMar 2026

G-Squared has operated through extreme market cycles, investing in SaaS at peak 12x revenue multiples in 2020-2021 that later compressed to 4x. Conversely, the firm has capitalized on downturns by acquiring a significant stake in Anthropic through the FTX bankruptcy proceedings.

The firm's performance is highly sensitive to market timing, but it also demonstrates an opportunistic ability to find value in distressed situations, suggesting a flexible approach that adapts to macroeconomic shifts.

▶Betting on Foundational Platforms and InfrastructureMar 2026

A recurring theme in G-Squared's portfolio is a focus on foundational companies, from early investments in platforms like Spotify and Coursera to its current AI strategy. The AI strategy targets both foundation models (Anthropic) and the 'picks and shovels' infrastructure (Lambda, CoreWeave) that powers the ecosystem.

This focus on core platforms and infrastructure indicates a strategy of investing in potential toll-road businesses that can capture value from an entire technological wave, rather than betting on more speculative application-layer companies.

Source episodes

Timeline

First Fund

G-Squared's initial $35 million fund establishes its concentrated investment style with primary bets on four major tech companies: Alibaba, Spotify, Palantir, and Twitter.

Third Fund

The firm makes a highly concentrated $152 million bet on Spotify, representing 40% of its $380 million third fund. This investment would go on to generate a $1 billion return for its LPs.

Pre-IPO

G-Squared becomes the largest shareholder in Coursera, owning 16% of the company at its IPO, an investment that ultimately returned $800 million to LPs.

2020-2021

During the market peak, G-Squared invests in SaaS companies at high valuations of 12x LTM revenue, which later face significant multiple compression to around 4x.

2022

The firm's 2022 vintage fund achieves a quick success, generating a 3x return on its investment in cybersecurity company Wiz within 18 months.

Recent Past

The firm's high-risk strategy results in major losses, including an estimated $500 million total impact from its Getir investment and a $70 million loss on its $100 million investment in 23andMe.

Suggested prompts

How does G-Squared's high-concentration strategy affect its fundraising and relationships with Limited Partners, especially after major losses like Getir? &nearr;What specific due diligence factors led G-Squared to correctly back Lyft over Uber, and how does this inform their current company selection process in competitive markets? &nearr;Given the valuation compression experienced in their 2020-21 SaaS investments, how has the firm adjusted its valuation discipline for its current AI infrastructure bets? &nearr;To what extent is G-Squared's overall success dependent on outlier home runs like Spotify and Coursera, and is this model sustainable across multiple funds and market cycles? &nearr;

Key concepts

Spotify Investment 3 ep Investment Losses (Getir, 23andMe, Uber) 3 ep Portfolio Strategy & Concentration 2 ep Coursera Investment 2 ep AI Investment Strategy 2 ep Fund Performance 2 ep Ride-Sharing Investments (Uber/Lyft) 1 ep SaaS Valuations 1 ep Bolt Investment 1 ep

Report last updated: Apr 8, 2026

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