Netflix's Journey, Building TCV, and Investing Through Downturns (with TCV co-founder Jay Hoag)

Crossover investing enables long-term value creation by allowing firms to maintain partnerships with technology companies through both private and public market stages. TCV pioneered this model, emphasizing the necessity of forward-investing during periods of market dislocation to secure future growth. Netflix serves as a primary example, where strategic reinvestment in streaming technology—despite intense public skepticism and short-term financial pressure—ultimately transformed the company. Successful navigation of these "deserts of disillusionment" requires unwavering conviction in visionary leadership and a focus on consumer delight rather than short-term quarterly earnings. Investors must remain comfortable with non-consensus positions, as the most significant opportunities often arise when market sentiment is at its lowest. Jay Hoag, founder of TCV, highlights that surviving these cycles is a core competency for enduring technology firms.