Sahil Bloom Profile picture
Feb 8 12 tweets 3 min read
I think there are multiple $1B+ business opportunities in providing financial services specifically catered to non-W2 employees.

Here’s my rationale and vision:
In traditional financial services, W2 income reigns supreme.

As a bit of history, the use of the Form W-2 was first established by the Current Tax Payment Act of 1943 as part of an effort to withhold income at the source.

The first Form W-2s were issued to employees in 1944.
The W-2 became the primary source of truth for information about an employee's income.

Financial services infrastructure was built around this source of truth.

In particular, loan underwriting—for mortgages or personal loans—became heavily reliant on stable, growing W2 income.
This was (mostly) fine in the old world.

The traditional way of working was to take a single, stable job, stay in it for a long time, and then retire.

The traditional financial services infrastructure was built for that traditional way of working.

But the ground has shifted...
We are in the midst of a massive change in the way people work.

To be clear, it was happening before COVID—but has accelerated meaningfully since.

• Entrepreneurship
• Freelancing
• Gig-economy work

All of these are on the rise—but are unlikely to create stable W2 income.
As this change accelerates, there are millions of people likely to be left behind by traditional financial services infrastructure.

Good luck getting a mortgage or attractive personal loan from a bank if you have 1099 income—let alone trying to get them to understand a K-1.
Take two people:
• Person A: $100K W2 income
• Person B: $150K 1099 income

Person A is much more likely to get a mortgage or loan—they get more leverage on their income in the economy and have a greater chance to build wealth.

Person B is effectively "taxed" at a higher rate.
There has to be a better way.

But there are no incentives for traditional financial services institutions to modernize—they move slow and won’t do the additional work to develop an underwriting method for other forms of income/wealth.

This spells one thing:

Opportunity!
There are going to be multiple $1B+ businesses built around solving this—and related—problems for new age workers.

Most importantly, by removing this "tax" on alternative work as a barrier to entrepreneurship, we will spark a new golden age of entrepreneurship.

This is GREAT!
Who is building the most exciting future in this space? I want to learn more! DMs and emails open.

I talked about this general idea on a recent episode of Where It Happens with @howardlindzon.

You can listen to the episode below (or Spotify/Youtube). podcasts.apple.com/us/podcast/whe…
Follow me @SahilBloom for more threads on business, finance, technology, and entrepreneurship.

I also write about these topics in my weekly newsletter. You should join the 68,000+ others and subscribe! sahilbloom.substack.com
From the looks of my DMs, there are a bunch of cool companies building in this space.

The opportunity is massive!

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More from @SahilBloom

Feb 9
How to retain what you learn:
Growth is driven by the accumulation and compounding of usable learning.

We accumulate and compound this learning through consumption and retention.

Consumption is the inputs—retention is what remains after leakage.

This thread shares my simple framework for retention:
The retention framework I use involves five steps:

• Inspired Consumption
• Unstructured Note-Taking
• Consolidation
• Analogize
• Idea Exercise

The structure is sequential, but its practice is often dynamic & iterative.

Let's walk through each of the steps...
Read 11 tweets
Feb 9
💥Investment Announcement💥

Excited to invest in @wander’s Series A!

Wander has an ambitious vision to build a brand and community as a vertically-integrated short-term rental platform.

Proud to invest alongside friends @QEDInvestors @Redpoint @a16z @KDTrey5 @packyM & more!
Check out the properties and download the app at Wander.com! Congrats to @jaentwistle @KyleTibbitts and the team. Let’s go!
Oh and also, I may not have made Forbes 30 Under 30, but they got me in there now. 👀🚀

We’re coming…forbes.com/sites/amydobso…
Read 6 tweets
Feb 6
It’s Sunday evening, freezing outside, and I’m yet again two whiskeys deep…

A few hot takes and semi-coherent thoughts:
Being INTERESTED is more important than being INTERESTING.

Interested people are prone to giving their deep attention to something to learn more about it.

They ask questions, listen, and observe. They open up to the world around them.

The interested inevitably win.
Every team needs more tugboats.

Tugboats are my favorite. Small, unassuming, and often quite ugly—but capable of pulling massive ships.

Tugboats are the 10X hires at your startup or business.

They aren’t the sexy hire (the yacht)—but they are infinitely more valuable.
Read 26 tweets
Feb 5
How to stop procrastinating:
Confession: I spent most of my life as a chronic procrastinator.

I also spent most of my life justifying that chronic procrastination—both internally and externally.

I told myself it was "just how I worked”—that the pressure of an imminent deadline was what I needed to thrive.
To be fair, I wasn't wildly off:

The Yerkes-Dodson Law says pressure and performance are positively correlated—up to a point, after which more pressure reduces performance.

The real issue: procrastination meant I only worked on the urgent—very rarely the long-term important.
Read 23 tweets
Feb 4
I think there’s a $1,000,000 opportunity in creating a paid "Explain It To Me Like I'm 5" curation newsletter for tech, business, or marketing.

Here’s how I’d do it:
The problem: So much great content, so little time.

The solution: Weekly TLDR summary of best pieces of content from a given vertical.

• Tech
• Marketing
• Finance

It is critical that the summaries abstract the complexity and provide a simplified version of the original.
Economic model could look like:

Charge $20 per month.

50% of all gross proceeds go into a pool that is distributed back to the original content creators monthly to compensate them for their efforts.

Would need ~4,200 subs to do $1m gross, $500k net annually.

How I’d get them:
Read 10 tweets
Feb 4
“Either write something worth reading or do something worth writing.” - Benjamin Franklin

Stories have the power to change the world. Be a story-teller or be a story-creator.

Check out today’s Friday Five! Learn something interesting, every single week. sahilbloom.substack.com/p/the-friday-f…
Huge shoutout to @cleoabram and @Nathanbarry—two of my favorite new creator discoveries—both featured in this week’s episode.

Cleo’s new “Huge If True” is going to be huge. Would invest!
One addition to the Franklin quote that came from the community…

Read something worth learning.

I like that.
Read 4 tweets

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