Why invest in small hyper-growth co's?

1. Only when you find a hyper-growth company with the right team in a promising market at a reasonable price, you can return 10X/20X/50X.

2. The number one factor in the valuations of small tech companies is the growth assumption. Igniting hyper-growth and acceleration of growth mean that the valuation is also increasing fast.   

3. We can interact directly with the management, not the IR/Marketing/PR.

4. In some cases, those companies are less familiar, neglected by traditional VCs, big institutions, and most retail investors—less competition. And usually less correlation to the market.

5. It is "easier" to grow from $25M in sales to $100M than going from $100M to $500M in sales. This logic makes going from a $100M market cap to a $500M market cap more reasonable than going from $500M to $2.5B

6. Hyper-growth business goes through specific evolution cycles and are very volatile; this helps us apply our trading methodology and grow our business share while smoothing the ride. 

We define hyper-growth as a min 50% revenue growth year over year. In most cases, we refer to a min 100% revenue growth YOY.