IAC

IAC (InterActiveCorp) operates as a distinctive force in the digital landscape, functioning less as a traditional venture capital firm and more as a dynamic holding company that builds, acquires, and operates a diverse portfolio of internet and media businesses. Headquartered in New York City, IAC's strategy revolves around identifying promising online ventures, investing significant capital to foster their growth, and often spinning them off into independent public companies. This unique approach has led to the creation of several well-known entities, including Match Group (Tinder, Match.com), ANGI Homeservices (HomeAdvisor, Angie's List), and Vimeo, demonstrating their long-term vision and operational prowess.

IAC's investment thesis is characterized by a hands-on, strategic involvement rather than passive financial backing. They typically target companies that are either established with strong market positions or rapidly growing with clear potential for scale within the online services, media, and e-commerce sectors. Their operational expertise, combined with substantial financial resources, allows them to accelerate the development of their portfolio companies, often transforming them into market leaders. This model emphasizes deep integration and strategic guidance, distinguishing them from typical minority stake investors.

Their capital deployment reflects this strategic, acquisition-oriented approach. IAC's "first cheques" are often substantial, representing significant minority investments or outright acquisitions designed to gain control or a path to control. For instance, in 2020, IAC made a strategic investment of $250 million in Turo, the peer-to-peer car-sharing marketplace, becoming its largest shareholder. Another notable example is their 2020 acquisition of Care.com for approximately $500 million, further expanding their portfolio in the online services sector. These figures illustrate that IAC's investments are typically in the hundreds of millions, reflecting their intent to acquire or take significant controlling stakes rather than participate in early-stage venture rounds.

In essence, IAC's role in the investment ecosystem is that of a corporate venture builder and acquirer. They are not merely providing capital but are actively shaping the future of the internet and media industries by identifying, nurturing, and scaling businesses with the potential for significant market impact. Their investment horizon is long-term, focused on creating enduring value through strategic growth and, ultimately, independent public entities.