Investment strategies driven by laws of power maybe good (doubt it) for business but they are often shitty for society.
I know its cliche, but I have to give it up to the Baron, “Power tends to corrupt, and absolute power corrupts absolutely”
So when folks go out hunting for unicorns corruption is inevitable, and good businesses which would make sound investments get ignored.
Unicorns Versus Lifestyle is a dumb debate
Dominance isn’t the only world view.
If by lifestyle business you mean profitable…I will take it.
If by lifestyle business you mean founder controlled…again all in.
If by lifestyle business you mean I get to coach, not one but all three of my boys…sign me up.
Bad Investments. Bad for Business
Go up to the next person you meet and ask them for a dollar, and then hand them a ten back. See if they think that’s a bad return.
Maybe I am too middle class to understand the math but turning ten million into a 160 million sounds like a great investment
In the long run more funds will emerge that that place smaller, smarter bets on revenue first companies. We will find this better for business, LPs, and most importantly us.
Founders can chase funding. I would rather find prospects and leads. I know what I do matters and what we build works. Our story, not false money, will drive our conversion.
If folks want to chase the unicorn have fun. Just look at the dismal rate of businesses that get the attention of a Venture Capital Firm. Now from those select few look at how many make it to exit. If you like those odds, and are willing to dedicate years of your life, playing em, I welcome you to my poker table anytime. Just reach out to me on Yik Yak.
Author’s note: Seyi Fabode in no way suggested VC aligned companies are better than lifestyle companies. In fact he linked to a piece by Bryce Roberts explaining the false derision of “lifestyle businesses.”
His piece is just the one that honed my thinking and made me realize why I throw up in my mouth when folks cast entrepreneurial endeavors as either a unicorn or a lifestyle business. I like documenting my thought trails, true Silfen paths.