Jessica Alba built a company worth hundreds of millions.
But she could be left with almost nothing.
This toxic "2X liquidation preference" is a hidden danger for anyone raising funds.
Here's what every entrepreneur needs to know:
**POTENTIALLY HUGE ANNOUNCEMENT**
I just made either the biggest mistake or biggest investment of my life.
It’s called BizScout. I just invested millions into it. Here’s the idea so you can tell me if I’m dumb.
A better marketplace that makes buying and selling a business so easy even your grandma can do it.
We take back Main Street by owning it.
The idea is we (eventually) make small businesses as common to buy and sell as real estate.
Right now there is a 25 year old incumbent that owns this market, hasn’t innovated in a decade, and still gets 10’s of millions of views a month but makes business buying… miserable.
What’s different at BizScout (to start):
• ScoutSights: Quick validation of market price based on 300,000 historical listings (like Zestimate).
• Curated listings: BizScout will have a more curated selection of listings, ensuring that you're only seeing high-quality, verified opportunities.
• Off-Market leads: instead of paying $30k for institutional level off market deal tech, we do it for you.
• Buyer verification: BizScout will verify all paid users (who opt in) so brokers respond to you.
Vision: The CEO of Zillow upon founding the company said, "the web [had] been around for now 9 or 10 years, but still I couldn't get pictures of homes and complete listings and prices and addresses. We were trying to answer a simple question. What is that house worth? What should we offer if we wanted to buy it?" Answering that question led to a company worth nearly $11 billion.
Now the same question applies to small businesses… except it’s even worse.
Imagine you owned a home, you built it and cared for it over the years. Then eventually when you were ready to move on from it, instead of selling you just bulldozed it and walked away. That is what happens with 9 out of 10 small businesses. They just shut their doors and spend money to do so.
Opportunity: We buy their businesses instead.
Small biz owners are old and tired. SMB owners are 65+ on average. Yet they have no exit plan, which is why only 1 out of 11 of listed businesses will sell within 1 year.
• 41% of small biz owners want to sell in next 5 years
• 29 Million small businesses in the US with less than 500 employees
• 75 million baby boomers will retire by 2030 (they own most of the SMBs in the US)
• 10,000 baby boomers retire daily
• 61% say they have no idea what to do with their business or how to sell
The issue is they often don’t realize they can sell their business. They don’t have help for “readying” their business for sale.
A realtor will come and assess your home, no one does that for small businesses. They don’t have their financials clean or in order typically and often have no idea what their business is worth or a next step to take. By the time they learn they often have slowed down or are just ready to retire.
The big investment banks aren’t interested in small messy deals, neither are private equity companies, and the average acquirer for small businesses doesn’t know how to review a business that isn’t wrapped up in a bow with industry standard reporting. Maybe we can tackle this.
Unfair Advantage:
I am already one of the largest small business brokerages in the US. We’ve seen confirmation of closing of more than $300million in business through our community.
I guess we’ll see. Love for you all to check it out and tell me what sucks (I know Twitter’s great at that!). You’ll be seeing lots more from us in the coming weeks.
Unfortunately, the livestream of today’s House Select Committee on Securing Texas from Hostile Foreign Organizations hearing was hacked this afternoon, forcing us to terminate the feed early. The committee recorded on-site audio of the remainder of the hearing, and we hope to make that audio accessible on the Texas House website upon return to the Capitol. While the source of the attack is still unknown, this incident underscores the very real cybersecurity threats posed on our state by hostile forces—threats that led to the committee’s formation in the first place. We appreciate your understanding and regret this disruption to an otherwise productive and informative hearing.
#txlege
Morgan Stanley has shifted its perspective on Mexico following the electoral success of the Morena party's dominance in Congress.
Previously holding a positive view and recommending an "overweight" position, the financial firm has now downgraded Mexican stocks to "market-weight"
Concerns have arisen due to fears that Sheinbaum, supported by President López Obrador, might implement policies unfavorable to the market.
These concerns contributed to a sharp 6% drop in the Mexican stock index following the election results and a devaluation of the pesos.
It represented the worst session since the pandemic's onset in early 2020.
Morgan Stanley has consequently reduced its investment exposure to sectors like cement and industrial real estate in Mexico, citing uncertainties surrounding the nearshoring opportunity.
One of the most common investing mistakes I see:
Ignoring taxes.
This mistake could cost you tens of thousands (if not hundreds of thousands) over your lifetime.
The Beginner's Guide to Tax-Efficient Investing:
NEW - SCOTUS unanimously rules (9-0): Public officials can be sued for blocking users on social media. Official posts are part of their job, and blocking constituents from commenting violates the First Amendment — POLITICO
Big tech companies like Amazon are becoming energy companies.
Amazon just acquired a nuclear-powered data center for $650 million from Texas co. Talen Energy.
This comes a month after Amazon locked down a 100MW agreement with a wind farm in Oregon.
We are reaching a point of singularity where tech companies are becoming energy companies.
Energy companies should be becoming tech companies as well, but they're sleeping at the wheel.
High performance computing is energy infrastructure, whether it's bitcoin mining or GPU clusters for Artificial Intelligence.
This was the entire thesis behind our Empower event several years ago.
If you are an energy company not thinking about this, you are falling behind— Full stop.
Woah.
Klarna's AI customer support agent is able to handle 2/3rd of the requests by itself in its first month.
It is doing the job of 700 full-time agents.
I'm surprised not many people use AI on their phones.
It helps you do more in less time.
Here are 7 ways to use Al on your phone (for $0)
[🔖Bookmark for later]*