Episode
#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
1:49:43
Published: Fri Aug 28 2020
Description
Today’s episode is a double header. Sam Parr (@theSamParr) is out today, so Shaan Puri (@ShaanVP) hosts the pod today with two guests Xavier Helgesen (@XavierHelgesen) Co-CEO of Enduring Ventures and Avlok Kohli (@Avlok) CEO of AngelList. In today’s episode you’ll hear: Avlok gives his background on how he became CEO of AngelList (1:55), Shaan asks Avlok how he Fast Buy got acquired so fast (6:15), Avlok shares some ideas he has for the future of business (11:15), Shaan and Avlok talk about how to improve meetings (13:20), Shaan asks Avlok some of the cool companies he’s seen at AngelList (18:45), Shaan asks “What’s it like working with Naval?” (23:20), Shaan and Avlok talk about the problems with traditional funds and the potential with rolling funds (25:30). Shaan interviews Xavier Helgesen (54:52), Xavier gives his background (55:40), Shaan asks Xavier about his solar company in Africa (56:40), Xavier talks about his CFO-brain and how it’s helped his career (59:30), Shaan asks Xavier what he’s interested in lately (61:00), Xavier tells about his acquisition of UpCouncil (66:55), Shaan asks Xavier how to implement a profit-sharing company (78:20), Shaan explains how local and neighborhood networks are simple and profitable (85:10), Xavier explains what he looks at in financial statements when looking at a companies to acquire (68:28), Shaan asks Xavier if he has an opinion on SPACs (95:15), Xavier gives a list of a few books that every entrepreneur should read (102:45). This episode is presented by Tempo! Check them out at tempo.fit and use code "TempoHustle" for $100 off. Joined our private FB group yet? It's a page where people share each others million dollar ideas or what they're already working on: https://www.facebook.com/groups/ourfirstmillion. See acast.com/privacy for privacy and opt-out information.
Chapters
HubSpot CRM is a one-stop shop with all the tools needed to automate tasks, keep track of contact info and deals, and access data for better customer service, all while being easy to use and free to get started.
00:00 - 00:49 (00:49)
Summary
HubSpot CRM is a one-stop shop with all the tools needed to automate tasks, keep track of contact info and deals, and access data for better customer service, all while being easy to use and free to get started.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
Jason Calacanis believes Angel List presents the biggest opportunity for anyone who wants to work in the Entrepreneurial space, stating that Angel List was the company with the most significant potential in a space he cared about.
00:49 - 04:28 (03:39)
Summary
Jason Calacanis believes Angel List presents the biggest opportunity for anyone who wants to work in the Entrepreneurial space, stating that Angel List was the company with the most significant potential in a space he cared about. During an interview, Jason Calacanis suggested Angel List's potential for growth in its meeting tech, which offers a better solution to the somewhat inefficient meeting process.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
Fastbite was a food delivery service that offered a limited menu with fast and affordable delivery times, averaging at 7 minutes compared to the industry standard of 80 minutes.
04:29 - 07:19 (02:49)
Summary
Fastbite was a food delivery service that offered a limited menu with fast and affordable delivery times, averaging at 7 minutes compared to the industry standard of 80 minutes. Customers could choose from a few popular items and receive their food in 15 minutes for only $10.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
Building new ideas internally requires a strong leader and talented team, with prioritization of company strategy.
07:19 - 13:10 (05:50)
Summary
Building new ideas internally requires a strong leader and talented team, with prioritization of company strategy. Acquisitions should only be made if they align with a company's strategic priorities.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
The prevalence of virtual meetings has led to the creation and rise of meeting technology, with more tools being developed to streamline the process and make meetings more efficient.
13:10 - 17:52 (04:42)
Summary
The prevalence of virtual meetings has led to the creation and rise of meeting technology, with more tools being developed to streamline the process and make meetings more efficient.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
The speaker is excited about the potential of a company level tool from a productivity app to change how employees find information within a company, as the tool allows for creating a web of thoughts and notes with the ability to link them together.
17:52 - 24:32 (06:39)
Summary
The speaker is excited about the potential of a company level tool from a productivity app to change how employees find information within a company, as the tool allows for creating a web of thoughts and notes with the ability to link them together.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
The interviewee highlights his experience with a venture capitalist who had a knack for seeing future trends and invested in young companies that later became unicorns.
24:32 - 30:41 (06:08)
Summary
The interviewee highlights his experience with a venture capitalist who had a knack for seeing future trends and invested in young companies that later became unicorns. They discuss how they spend time analyzing trends and discussing which products to invest in.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
Investing is made accessible for GPs and LPs with the ability to write checks as small as $5,000 per quarter, committing to $20,000-$25,000 a year.
30:41 - 34:41 (03:59)
Summary
Investing is made accessible for GPs and LPs with the ability to write checks as small as $5,000 per quarter, committing to $20,000-$25,000 a year. Syndication is also an option for those who want to invest on a deal-by-deal basis.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
The real innovation in product development is eliminating steps to create something magical.
34:41 - 39:29 (04:48)
Summary
The real innovation in product development is eliminating steps to create something magical. Traditional fundraising structures can be simplified with the use of constraints, leading to the creation of a new rolling fund structure that reduces the number of steps needed to raise capital.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
Rolling funds are a superior venture fund structure compared to traditional funds as they offer greater flexibility, operational efficiency and a low fee model.
39:29 - 44:02 (04:32)
Summary
Rolling funds are a superior venture fund structure compared to traditional funds as they offer greater flexibility, operational efficiency and a low fee model. However, a minimum of a million to 1.3 million per quarter is required to qualify for the low fee tier.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
Investing in as many viable technology companies as possible is the way to go in early stage venture capitalism.
44:02 - 50:13 (06:11)
Summary
Investing in as many viable technology companies as possible is the way to go in early stage venture capitalism. Investing $50,000 for a minimum of one year is a good starting point for cutting deals with startup founders.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
The potential returns of rolling funds vary, with a bull case of 7x, 10x, or 15x on returns, and a bear case of getting back less than what was initially invested.
50:14 - 56:28 (06:14)
Summary
The potential returns of rolling funds vary, with a bull case of 7x, 10x, or 15x on returns, and a bear case of getting back less than what was initially invested. The returns are highly dependent on the general partner and the success of the underlying investments, which can range from pre-seed to unicorn or decacorn stages.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
The speaker introduces a guest and mentions the investors who contributed to their company's equity and debt, including Tesla and General Electric.
56:28 - 59:28 (02:59)
Summary
The speaker introduces a guest and mentions the investors who contributed to their company's equity and debt, including Tesla and General Electric.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
The speaker realized the importance of understanding finance after making a few naive deals with Better World Books.
59:28 - 1:05:12 (05:44)
Summary
The speaker realized the importance of understanding finance after making a few naive deals with Better World Books. This realization fueled his passion for green technology and becoming a "ruthless capitalist" with a sense of social justice.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
Enduring Ventures aims to be the "buyer of choice" for business owners who want to sell and ensure that their employees are well taken care of, even after the sale.
1:05:13 - 1:11:25 (06:11)
Summary
Enduring Ventures aims to be the "buyer of choice" for business owners who want to sell and ensure that their employees are well taken care of, even after the sale. They also offer a cheaper alternative to San Francisco lawyers through their platform, UpCounsel.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
The discussion delves into the business model and success of Safe Note, focusing on Google search results and employee setbacks.
1:11:25 - 1:15:14 (03:49)
Summary
The discussion delves into the business model and success of Safe Note, focusing on Google search results and employee setbacks.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
The transcript is unclear but it involves discussing strategies for acquiring companies when you do not have many options available.
1:15:14 - 1:19:41 (04:26)
Summary
The transcript is unclear but it involves discussing strategies for acquiring companies when you do not have many options available.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
The podcast discusses best practices for implementing a profit sharing program, including how to determine how much of the profits should be distributed versus reinvested, and creative options such as funding employees' 401k with profit share.
1:19:41 - 1:23:13 (03:31)
Summary
The podcast discusses best practices for implementing a profit sharing program, including how to determine how much of the profits should be distributed versus reinvested, and creative options such as funding employees' 401k with profit share.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
A local monopoly can be just as profitable as a national one if a business has a great reputation and be the go-to choice in a particular area, which can be seen in the numbers.
1:23:13 - 1:27:16 (04:03)
Summary
A local monopoly can be just as profitable as a national one if a business has a great reputation and be the go-to choice in a particular area, which can be seen in the numbers. This phenomenon is not limited to small businesses, but can also be observed in large corporations such as Google and Facebook.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
There is a lot of untapped potential in creating local newsletters that could provide valuable information for subscribers and serve as a platform for targeted advertising.
1:27:18 - 1:32:34 (05:16)
Summary
There is a lot of untapped potential in creating local newsletters that could provide valuable information for subscribers and serve as a platform for targeted advertising. By acquiring users through paid search or Facebook traffic and keeping costs low, creators can make a profit and offer an opportunity for people looking for a side hustle.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
Businesses need to have both growth and durability to be considered a good buy for those who plan on holding on to them for a long time.
1:32:34 - 1:38:45 (06:11)
Summary
Businesses need to have both growth and durability to be considered a good buy for those who plan on holding on to them for a long time. Selling businesses based on growth expectations that require a lot of things to go right can be problematic for those who are looking to sell.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
The CEO explains how a blank check company is essentially a holding company with the purpose of acquiring a private company to go public.
1:38:45 - 1:44:41 (05:55)
Summary
The CEO explains how a blank check company is essentially a holding company with the purpose of acquiring a private company to go public. This method allows for the use of cheap public equity dollars to acquire a business that may not fully have the strength to go public on their own.
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
The financial freedom and flexibility that comes with owning a small business is worth the risk, with half of the profits going towards paying back the SBA loan used to buy it.
1:44:42 - 1:49:08 (04:25)
Summary
The financial freedom and flexibility that comes with owning a small business is worth the risk, with half of the profits going towards paying back the SBA loan used to buy it.