Q: How do you determine which companies will make it? During the dot-com craze, so many business models ended up failing.
A: We have the luxury at this point to look back at what failed and what worked. If you look at what worked, such as the eBays (EBAY ) and Amazons (AMZN ), those companies had high gross-profit margins and had business models that worked seamlessly with the Internet. So in terms of looking at the IPO, I want to have a strong sense of what the business model is. Is it sustainable, producing high-growth profit margins compared to industry peers, etc.?