We’ve exhausted growth via globalization, professionalization, and IT. Most of the arbitrage is gone. What’s left is an innovative edge. Take Monsanto which bou

We’ve exhausted growth via globalization, professionalization, and IT. Most of the arbitrage is gone. What’s left is an innovative edge. Take Monsanto which bought Climate for $1b when it had $30m in revenue. People thought it was crazy at the time but along comes Bayer (and Monsanto’s digital assets and the optionality and future proofing this brings) command a $5b - $10b premium. Companies are no longer able to (or unwilling to) do internal innovation and so you need to outsource that — and those R&D budgets represent hundreds of billions of dollars, but even better you only pay for the winners. We’re going to look back in 10 years and realize we could have been investing a lot more in venture capital. Yes, the asset class has lagged but there’s a whole universe of offline companies that are just now coming into the market. Every company will need to be a tech company and companies just don’t have the DNA to do it themselves. As long as CAC << NPV(LTV) then yes you should spend.