Heads, Hearts, and Tails

Long-term compounding requires diligent work and staying power.

Distilled by 7Two (Dx72) is always searching our network for high-quality, growth-stage businesses, along with the occasional uncorrelated strategy.

  • We have 35 venture and growth sponsor relationships across 7Two.

  • 7Two’s partners collectively review 200+ new funds/year, selectively adding to portfolios.

There are mini-monopolies constantly being created in new industries.

We approach growth investing with a patient discipline so that when the opportunity to buy arises, we’re ready to move quickly:

  • Spot them early. Do the work. Meet founders when possible. Get smart.

  • Invest at an inflection point - typically a Series B/C.

  • Own as much as you can as cheaply as possible.

  • Hold for as long as you can stand it.

Zipline is our poster child:

  • We underwrote our December 2025 SPV to a 4x at IPO in three years.

  • Secondary markets suggest we’ve already reached 2-3x on paper.

  • Hold it for a decade, and we think there is 50x potential. (Yes, Fifty.)*

Current themes and implications:

  • AI will accelerate robotics’ entry into the physical world. Be long deep tech.

  • Biotech makes nuclear winter look warm and cozy. For the survivors, this will probably be an above-average vintage.

  • Segments have become winner take all. Even the #2 company has a hard time capturing more than 20% marketshare.

  • As AI becomes ubiquitous, data will be the durable edge. The higher quality the data and more valuable to industry participants, the better.

  • Deflationary effects of software may be counteracted by cap-ex requirements and energy cost increases from massive data center infrastructure demand.

Upcoming Opportunities:

  • Secondary in a business currently raising a Series C led by a top five VC, growing at 8x for the past two years and estimated to triple in 2026.

  • Two soft-closed uncorrelated hedge funds where 7Two has distinct access.

Curious? Reach out. We’d love to start building trust and shared success.

*As with all deals, Zipline could still be a zero too.

Previous
Previous

Meet Cole