304. The Founder’s Dilemma: Equity vs. User Acquisition Financing

Deconstructor of Fun

Mishka Katkoff sits down with Pranav Singhvi (General Catalyst, Customer Value Fund) and Joe Wadakethalakal (PVX Partners) to unpack the rise of UA financing, a new capital instrument that lets gaming and app companies scale user acquisition without giving up massive chunks of equity.

We break down:

1. Why traditional VC or debt financing is often a poor fit for customer acquisition.

2. The origins of UA financing and why treating cohorts as “assets” changes the game.

3. The differences between PVX Partners’ gaming-first model and General Catalyst’s broader CVF.

4. Success stories like Superplay’s $2B exit, powered by UA financing.

5. How founders should think about timing, risk, and capital allocation.

6. Why CAC is the new CAPEX, and how EBITCAC could replace EBITDA as the real profitability metric for gaming and app businesses.

00:00 – Guest Intros (Pranav Singhvi & Joe Wadakethalakal)

01:00 – What is UA Financing

05:30 – PVX Partners vs. Customer Value Fund

15:00 – Equity vs. UA Financing: Which Capital Fits Which Stage?

19:15 – Founders as Capital Allocators: Balancing Risk, Growth & Dilution

22:30 – What Returns Look Like in UA Financing (Real Economics)

24:30 – Scaling Beyond Balance Sheet Limits

28:00 – When Is the Right Time to Use UA Financing?

32:00 – LTV Curves, Incremental ROAS & Product Readiness

35:30 – Case Study: How Superplay Used UA Financing to Reach a $2B Exit

38:50 – PVX Success Stories

41:40 – Managing Risk: Oversight & Skin in the Game

48:00 – What Counts as CAC? Influencers, Celebs, and Brand Marketing

49:40 – The Future of UA Financing & Cohorts as a New Asset Class

52:40 – CAC is the New CAPEX: Rethinking EBITDA as EBITCAC

57:30 – Why Tech Companies Look Unprofitable but Aren’t

59:00 – Advice for Founders Considering UA Financing

01:04:00 – Capturing Market Share Before Competitors Catch Up

01:07:00 – Final Takeaways & Closing Thoughts