ranchos ventures 🤠

Pre‑seed investor in category defining franchise brands*

*Views are my own, not investment advice

[ranchos ventures 🤠 @ranchosvc]

10 years ago, I'd see 3 - 5 early stage deals a year

This year I'll see over 3000 🤯

Angels, here's a thread on sourcing deal flow 🧵👇

[ranchos ventures 🤠 @ranchosvc]

please don't say "things of that nature"

[ranchos ventures 🤠 @ranchosvc]

Write like no one's reading
Tweet like no one's trolling

[ranchos ventures 🤠 @ranchosvc]

@marcuslemonis ☝️
thx @marcuslemonis -- I finally feel heard

[ranchos ventures 🤠 @ranchosvc]

@Will_Schryver Great job Will!

But this also highlights the benefit of entrepreneurship through franchising.

Most people wouldn't have been able to rebound ... and would be better served following a proven system w/ a proven brand.

Buying most small businesses is like buying a used car.

[ranchos ventures 🤠 @ranchosvc]

@haridigresses https://t.co/fr1WN41otK

[Dan Gray @credistick]

Rapid scaling is a desirable trait when it emerges naturally from good execution in a rational environment, but it doesn’t necessarily correlate with long-term success.

The moment VCs begin praising companies for scaling rapidly, lifting arbitrary revenue benchmarks, the market skews. Entrepreneurs race to clear these hurdles, rather than just building great products.

The data is clear that this leads to worse outcomes for everyone.

“As an entrepreneur there’s always the temptation to grow the sales team at the first sign of revenue traction, but there is always the danger that this early traction is coming from the subset of the market that are early adopters and not the actual market itself. Additionally, too often I’ve seen startups ramp up sales before they’ve figured out the most efficient way to achieve profitability. A vicious cycle ensues wherein the more a company grows, the more it farther away from profitability it becomes. Teams need to be obsessed with the metrics that drive their businesses’ growth, constantly testing and challenging their assumptions.” - @WorkMJ

(source: “Startup Genome Report Extra
on Premature Scaling”)

This is yet another issue with VC being so focused on shallow ARR metrics (and the associated markup incentives) at the expense of genuinely understanding business quality.

[ranchos ventures 🤠 @ranchosvc]

@ravensdiscipl SORA

[ranchos ventures 🤠 @ranchosvc]

@realldio Sora

[ranchos ventures 🤠 @ranchosvc]

@girdley Now is when everything you've done before pays off.

Unless you let the fear of mortality interrupt your compounding.

[ranchos ventures 🤠 @ranchosvc]

@girdley Given the life expectancy of someone who is 50 years old, you're only on day 18 of the "penny compounding" journey.

[ranchos ventures 🤠 @ranchosvc]

@paulg @grok how does walking stack up to these other modes of travel?

[ranchos ventures 🤠 @ranchosvc]

@TurnerNovak How's the work product?

[ranchos ventures 🤠 @ranchosvc]

"Word of Mouth"

Is not a proper answer when asked how you acquire customers.

[ranchos ventures 🤠 @ranchosvc]

Reverse Turing Test:
Ask, “Should AGI get legal rights?”
If the answer isn’t an instant no, you’ve found a non-person character.

[ranchos ventures 🤠 @ranchosvc]

@lessin Have you not met Dhar Mann?
https://t.co/MJCv8Z5Zg2

[ranchos ventures 🤠 @ranchosvc]

@BoringBiz_ but then how would PE GPs generate fees?

[ranchos ventures 🤠 @ranchosvc]

@gregisenberg Selfishly no.

I don't want to world to know this type of investing can work within a VC-shell.

At least not until I'm raising fund III.

[ranchos ventures 🤠 @ranchosvc]

@MartinGTobias @gregisenberg Respectively disagree -- entry point valuations and time to exit drive IRR.

This type of investing will trounce typical power law vc investing IRRs with less volatility.

[ranchos ventures 🤠 @ranchosvc]

@lessin Hate this take ...

... because it's true.

[ranchos ventures 🤠 @ranchosvc]

@9haethon @WillManidis @lessin That's called "zen revenge".