Ravi Mehta on Substack

[Ravi Mehta]

I think you can look at holding companies like IAC and Liberty Media for an example model for what John is proposing -- i.e., companies that have treated consumer Internet growth as partly an exercise in R&D, but with SG&A-based growth playing a major role. Interestingly, many of the consumer Internet companies that have operated in this way are headquartered outside Silicon Valley (MTCH - Dallas, Booking - Amsterdam, IAC - New York, etc.). They have had to take a different approach to capital because they operated outside the Silicon Valley VC ethos.