Doriot Quote Of The Day
The riskiest part of the spectrum has to date proved the most rewarding, and the greatest capital gains have been earned in companies which were started from scratch.
Doriot, in a 1960 talk to the Chicago Society of Security Analysts, titled "Creative Capital"
This has been our experience too. It's not just the lower valuations you get at the formation stage, but it's also that you are working from a blank slate with respect to everything and you can work with the founding team to form the culture, the strategy, the team, etc. Buying into companies that have done several rounds has always been a lot harder for me.