🍾 Paid "too much"

The newsletter provides critical insights into Thoma Bravo's restructuring efforts with Medallia, a situation that underscores the risks associated with ARR-based lending. As the company faces significant debt challenges, this case serves as a cautionary tale for investors relying on recurring revenue metrics without adequate cash flow. Additionally, the winding down of Thoma Bravo's growth equity strategy suggests a broader trend in private equity, where firms may be refocusing on more traditional buyout strategies amidst changing market conditions.

On a more positive note, the newsletter highlights emerging funding opportunities in the fintech and healthcare sectors, with startups like Round and Ultralight successfully raising seed capital. This indicates that while some areas of private equity may be cooling off, there remains robust investor interest in innovative tech solutions within these industries, presenting potential avenues for venture capital investment.