1/ Finally got around to this podcast by @honam and @altosvc this weekend.
Brilliant lessons applicable to both public & private markets.
Some of my favorites lessons below!
Grateful to Ho Nam for generously sharing his insights w/ the community.
acquired.fm/episodes/speci…
Brilliant lessons applicable to both public & private markets.
Some of my favorites lessons below!
Grateful to Ho Nam for generously sharing his insights w/ the community.
acquired.fm/episodes/speci…
2/ Lesson #1: Back founders building their life's work.
Ho mentions how he isn't just looking for another deal that makes money.
Instead looking for founders doing their life's work, and the returns will follow.
Grit, vision and focus of the entrepreneur drive success.
Ho mentions how he isn't just looking for another deal that makes money.
Instead looking for founders doing their life's work, and the returns will follow.
Grit, vision and focus of the entrepreneur drive success.
3/ Ho uses examples of Sam Walton (Walmart) and Warren Buffet (Berkshire) - who spent decades focused and tap dancing to work.
For me, Bezos (Amazon), Tobi (Shopify), Collisons (Stripe) are among others in this camp.
Building their life's work over decades, slowly & steadily.
For me, Bezos (Amazon), Tobi (Shopify), Collisons (Stripe) are among others in this camp.
Building their life's work over decades, slowly & steadily.
4/ Lesson #2: Have the right foundation in place that allow the biz to scale.
Ho talks about seeing companies scale from $10M to $100M+ in revenue.
But seeing those w/o the right culture / foundation in place have wheels fall off.
At which point turnarounds are very difficult.
Ho talks about seeing companies scale from $10M to $100M+ in revenue.
But seeing those w/o the right culture / foundation in place have wheels fall off.
At which point turnarounds are very difficult.
5/ This goes against common wisdom to pursue growth at all costs.
Some of Ho's biggest winners are capital efficient businesses, like @Roblox @Coupang (both profitable in the early days).
In his view - capital constraints drive companies to be creative and resourceful.
Some of Ho's biggest winners are capital efficient businesses, like @Roblox @Coupang (both profitable in the early days).
In his view - capital constraints drive companies to be creative and resourceful.
6/ Lesson #3: Valuations come down to much more than headline multiples.
When Ho / Altos really understand their companies - they can value them beyond simple metrics (e.g. 10x revenue)
They understand when businesses are under monetizing, untapped levers, the future runway.
When Ho / Altos really understand their companies - they can value them beyond simple metrics (e.g. 10x revenue)
They understand when businesses are under monetizing, untapped levers, the future runway.
7/ Reminds me of a business like @Shopify
...which many public investors missed because of the expensive revenue multiple.
Bulls in $shop understood how they could add new products, grow relevance w/ merchants.
Result was growing monetization and stronger for MUCH longer.
...which many public investors missed because of the expensive revenue multiple.
Bulls in $shop understood how they could add new products, grow relevance w/ merchants.
Result was growing monetization and stronger for MUCH longer.
8/ Grateful to @honam for sharing these insights.
And being such an incredible role model as an Asian American in VC 🔥🔥
Incredible balance of wisdom, kindness, humility, and a hunger for learning, which I think we all aspire to 🙂
And being such an incredible role model as an Asian American in VC 🔥🔥
Incredible balance of wisdom, kindness, humility, and a hunger for learning, which I think we all aspire to 🙂
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