Matt Farron

Join us tomorrow for a panel discussion on the complex relationship many FirstGens have to money and how that affects founders, investors, operators and others. See you tomorrow! https://lu.ma/9rixyzgs

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Boards of Directors – How Relevant To The Business Is The Board? In 2014, activist investor Starboard Value successfully replaced all 12 directors on the board of Darden Restaurants. The following shows the Darden incumbent board at the time of Starboard's proxy fight, Starboard’s value creation plan initiatives, the Starboard director nominees and the before and after performance (revenue, EBITDA, EBITDA margin and stock price). Note especially the direct relevance of each Starboard nominee to the industry or some aspect of the value creation plan. How often do you see this level of relevance on public company boards?

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The face you make when you realize that you have become pretty good at sourcing off-market opportunities and have private equity and family office investors ready to back you, but you don’t have enough talent to take advantage of those opportunities. With that said, if you know of anyone in the commercial bakery, dry cleaning, food distribution, or commercial laundry space who is looking for board and/or C-level opportunities, please let me know. #boardadvisor #clevel #executives #commercialbakery #commerciallaundry #drycleaning #fooddistribution #privateequity #investmentbanking

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Ready to play big? Unlock the billionaire playbook: Start with an Aged Shelf Corporation and master the art of influence WITHOUT ownership. 🏦✨ If you want to learn more. Click here to sign up for my next free webinar ⬇️

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To all #founders and #entrepreneurs out there, our intro meetings are conversational and easy going. Feel free to message me to setup a call. Learn what Pioneera Ventures can do for you!

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“When you have any signs of early demand pull, you have to follow it and work as hard as it takes to just make it happen.” This early company building advice from Filip Kaliszan is spot on, and it’s the Verkada founding team’s ethos in a nutshell. I’ve been able to see this up close by partnering with Filip over the years, but I’m so glad he generously shared his hard-earned lessons more publicly with other builders in this series for First Round Capital's PMF Method. Here are a few of my favorite takeaways: 🚧  𝗦𝗺𝗼𝗼𝘁𝗵 𝘁𝗵𝗲 𝗿𝗼𝗮𝗱 𝘄𝗶𝘁𝗵 𝗮 𝗿𝗼𝘂𝗴𝗵 𝗠𝗩𝗣: “The very first version looked very funny. It was a Raspberry Pi based camera. We just hacked it together from different parts — the supply chain was Amazon.com. We built maybe 100 of these little cameras and we gave them to friends and businesses we knew. That was never going to fit in a commercial environment, but man, it was so valuable to build it, because we could evaluate different streaming technologies and learn about the challenges of local storage. All these problems that we later encountered, we had already started solving. By the time the real product started selling, we had fewer bugs and ideas on how to navigate them. It just smoothed the road." 👷‍♂️ 𝗚𝗲𝘁 𝗼𝘂𝘁 𝗼𝗳 𝘆𝗼𝘂𝗿 𝗯𝘂𝗯𝗯𝗹𝗲 (𝗮𝗻𝗱 𝗼𝗻𝘁𝗼 𝗮 𝗹𝗮𝗱𝗱𝗲𝗿): “I remember flying to L.A. to install cameras at the Beverly Hills Equinox, one of our early customers. The gym closed at midnight, and we had until 5:00 AM to get the cameras installed. So next thing I know I'm buying some drills, getting up on a ladder and pulling cables myself. That client kept growing with us over the years because of the attention to detail we showed from day one. I've worked in the consumer space before. My perception of enterprise is that if you're willing to do the work, have the customer conversations, get on the plane and get out of your bubble to see how customers are using different solutions and build a picture of what will work for them, it's more of a well-defined process than it is a guessing game." ⚙️ 𝗟𝗶𝘀𝘁𝗲𝗻 𝗳𝗼𝗿 𝗽𝗿𝗼𝗯𝗹𝗲𝗺𝘀 𝘁𝗼 𝗮𝘃𝗼𝗶𝗱 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗯𝗹𝗼𝗮𝘁: “One of the mistakes that I see is sometimes folks listen to the customer for what they want as the solution, as opposed to listening to find out what the problem is. If you talked to our customers, on the surface I think what you might get back is that they want a sum of their favorite features from all of the competitors. But if you took the best features from all of our competitors and put it into one product, you'd build a bloated product with a bunch of not so great features. But if you dive a little deeper in that conversation, and you try to understand why they want these features, if you go to the customer and have them show you their workflow, and take notes about the things that are broken, that's when you start identifying the problems.”

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Flourish Ventures team is excited to back the indomitable Chris Brummer as he builds Bluprynt to transform the infrastructure for disclosures. We feel privileged to be part of an amazing group of industry leaders and backers working with Chris. Arguably, we are living through a pivotal moment for disclosures and trust and transparency in finance. The concept of financial disclosure became prominent with the Securities Acts of 1933 and 1934, following the 1929 market crash. Digitization began in the 1990s with EDGAR and XBRL in the early 2000s. Today, we face a new phase in disclosures with the integration of digital assets into the financial system. This evolution reflects market changes and regulatory responses, presenting an opportunity to transform the technological underpinnings of disclosure systems fundamentally. #fintech #digitalassets #crypto #disclosures https://lnkd.in/eme7fgDE

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The consolidation play by Private Equity has both pros and cons, and it cannot be denied that sometimes the consumer may suffer, but the quality of the provision may become higher. It's a trade-off that needs to be managed well in order for it not to become "vampire economics" #PrivateEquity #VentureCapital #ImpactInvesting #Economy #USEconomy #Investing https://lnkd.in/gtdk6d5v

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🌟Innovative VC Firm Overcomes Exits Drought with Secondary Sales🌟 ⛵Navigating a challenging landscape where exits are scarce, Santa Barbara Venture Partners (SBVP) has pioneered a novel approach to sustain its growth and attract investors for its second fund: secondary sales. Instead of waiting for traditional exits like IPOs or acquisitions, SBVP opted to sell shares of its portfolio companies, demonstrating its ability to generate returns for investors and stand out in a competitive market. 🎤According to Dan Engel, founder and managing partner of SBVP, these secondary transactions have been a game-changer, sparking investor interest and bolstering the firm's credibility. By leveraging its recent successes, including a lucrative stake in sports-betting company DraftKings Inc.' acquisition of digital lottery app Jackpocket, SBVP seized the opportunity to return profits to its limited partners (LPs) and pave the way for its second fund. 💡Engel highlighted the challenges faced by young VC firms in raising subsequent funds, particularly amid a downturn in exit activity and heightened investor scrutiny. With traditional exit routes becoming increasingly elusive, the pressure is on for firms to demonstrate tangible returns and establish a track record of success. ✨"For us, secondary sales have been a game-changer. They've helped us return profits to our LPs and attract investors for our second fund," said Dan Engel. 💰For SBVP, the decision to pursue secondary sales was driven by the need to provide liquidity to LPs and validate its investment thesis in the eyes of prospective investors. By strategically offloading portions of its holdings in high-performing portfolio companies like Bark Technologies and Rad AI, SBVP not only generated substantial returns but also bolstered investor confidence in its ability to deliver results. ⚠Despite the complexities and potential stigma associated with early share sales, Engel emphasized the importance of prioritizing investor returns and seizing opportunities to unlock value for stakeholders. With a focus on profitability and transparency, SBVP remains committed to its mission of delivering sustainable growth and maximizing returns for its LPs. 🔍 "Returning profits to our investors is our top priority. By strategically selling shares, we're proving our commitment to delivering results and driving value for our stakeholders," added Engel. As SBVP continues to explore secondary transactions and expand its investor base, the firm stands as a testament to innovation and resilience in the face of market challenges. 🚀 ✅ Looking to raise capital for your #fund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #VCInnovation #SecondarySalesSuccess #InvestorReturns #ValueCreation 

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Back Market's first Impact Report 🌏 beautifully summarizes the many reasons I am so proud to have worked at Back Market and been part of the journey. Keep rocking Back Makers! 🚀 You can find more here: https://lnkd.in/ePiUkgTB 🔥

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I love this! Thank you to Rachel Brown from Beauty Independent to kick-off this exchange with Andrew Ross' provocative thesis and have us all react to it. I truly enjoyed reading everyone's thoughts on the topic of the shortening lifecycle of beauty brands. Here is a snippet of mine: "Because beauty brand lifespans are shortening, it is important that we are able to differentiate brands with staying power from brands that will end up being a flash in the pan. There are much more of the latter than the former in the market right now, and if a brand is not well-positioned, it will be challenging for that brand to survive over the long-term. That’s why we focus on understanding each brand’s differentiators and long-term relevance." See more here: https://lnkd.in/esVbwnu2 and you will discover what Kevin Murphy, Odile Roujol, Rich Gersten, Tina Henry Bou-Saba, Oliver Nordlinger, Claire Chang, Manica Blain, Sonya Brown, George Birman had to say. #beautyindustry #beautyinvesting Stride Consumer Partners

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We love seeing founders be able to keep their equity and take advantage of non-dilutive funding sources⚒️. We're excited to collaborate with Stacy Chin, PhD leader of KeepYourEquity.co, who has secured over $15M in SBIR/STTR grants for startups across various sectors. She's written a guest blog post sharing her insights on navigating the competitive landscape of grant funding 💰. Some highlights: ❇️ Understanding SBIR/STTR: A lifeline for startups, offering up to $2 million in non-dilutive funding! ⏺️ Learning how to overcome hurdles and capitalize on the golden opportunity. ❇️ Gaining essential tips on outlining your go-to-market strategy, choosing the right program, and preparing thoroughly. ⏺️ Benefiting from Stacy Chin's 10+ years of grant writing experience and her extensive track record in securing funding for startups. Read More in the blog post linked in the comment below 👇🏾 #SBIR #STTR #GrantFunding #StartupSuccess #SmallBusiness #KeepYourEquityCo #ShayCPA #cpafirm #techaccountants #startupaccountants #techstartup #techcompany #nondilutivefunding

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https://lnkd.in/e-Cc-PhA Just wrapped up a case study highlighting some successful value creation work for a vertical software company. After a funding event, it can be tough for management teams to align on which initiatives to tackle first. Here are a few tips from my experience: 📈 Prioritize Compounding Benefits Start with initiatives that enable or build capabilities. These early projects are not the most glamorous. The long term value is the momentum they create and tone they set. They pave the way for bigger wins down the line. 🚧 Address Bottlenecks We identified and fixed a major technical bottleneck in the sales funnel. This gave us an immediate boost to revenue and win rates. The less obvious win was a finding that our marketing efforts were more effective than we thought. Many opportunities fitting the ideal customer profiles were getting stuck at the bottleneck! ✴ Find the Triple Word Score Initiatives Focus on initiatives that add value across multiple valuation categories like revenue, margins, and multiple expansion. My favorites are those that improve operating leverage and scalable unit economics. Operating leverage improves as each dollar of increased revenue earns a little more Operating Margin (EBITDA) over time. In the case study, I renegotiated two of the largest variable cost supplier contracts, leading to immediate improvements in unit contribution margins and setting the stage for increasing margins as revenue grew. This is a valuable function of a durable business model. Most teams agree on what needs to be done, but not always on the order. Choose initiatives that start building a solid foundation for future investments or the Quick Wins with high impact. A few good articles that touch on the technical concepts.. Healthtech: Show Your Magic | Andreessen Horowitz  https://lnkd.in/eGkDnkiG The Gross Margin Problem - Bottom Up by David Sacks https://lnkd.in/e9J2Eqaa

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Darden Restaurants recently reported its quarterly results, showcasing resilience amidst a challenging environment. While Olive Garden faced a decline in same-store sales for the second consecutive quarter, Darden's overall performance remained steady, with earnings per share surpassing expectations at $2.65 and revenue reaching $2.96 billion. Looking forward to fiscal 2025, Darden projects a promising outlook with expected earnings per share between $9.40 and $9.60 and anticipated net sales of $11.8 billion to $11.9 billion. The company's LongHorn Steakhouse segment notably reported a 4% increase in same-store sales, underscoring Darden's effective management and operational strength. With plans to invest $550 million to $600 million in capital expenditures, Darden is poised to enhance its offerings and maintain its competitive edge in the market. Read More Here: https://lnkd.in/eFgDC97p #hospitality #restaurants #technology #innovation Branded Hospitality Ventures Angelo Fama Jr. John Espy Dave George Daryl L. Cunningham Lisa McDowell Robert Anderson Ali Charri

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I love commencement addresses (or at least a lot of them). Roger Federer gave one at Dartmouth a few days ago -- if you have time, I recommend it (https://lnkd.in/eUw9VvNj). But here's what resonated the most to me -- "In tennis, perfection is impossible. In the 1,526 singles matches I played in my career, I won almost 80% of those matches (it was actually 82%; Roger is self-deprecating). Now, I have a question for all of you... what percentage of the POINTS do you think I won in those matches? Only 54%. In other words, even top-ranked tennis players win barely more than half of the points they play. When you lose every second point, on average, you learn not to dwell on every shot." He goes on to say that as important as each shot is, once it's done, it's over. This allows you the freedom to concentrate on the next, and focus, and give it your best -- whether that's the next shot, the next day, the next presentation, the next product. Combine that with Ted Lasso's 10 second memory goldfish -- and you just might conquer the world. #federer #perfectionisimpossible #goldfish #tedlasso

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Board of Directors - insights from "The Essays of Warren Buffett" Buffett’s principles for Boards of Directors emphasize the importance of independence, accountability, and a focus on long-term shareholder value: - Long-Term Focus: Boards should act in the long-term interest of shareholders - Board Composition: Boards with mostly outside directors and select members for business savvy, not prominence or diversity (PE insight: CROs on the Board) - Regular Evaluation: Outside directors should meet without the CEO to assess performance True Independence: Directors must have equity in the company to align with shareholders' interests P.S. This is a very insightful book structuring Warren Buffett's shareholder letters by specific categories - here are the top summary takeaways from the rest of the book: Investment Discipline – Maintain patience and discipline, avoiding speculative investments and market timing Business Quality – Seek businesses with a durable competitive advantage Management – High-quality, trustworthy management & look for managers who think like owners Corporate Governance – Transparent communication and fair treatment of all stakeholders Risk Management – Avoid excessive leverage and maintain a margin of safety to minimize risk and preserve capital Fundamentals – Focus on fundamentals rather than market trends Economic Earnings – Focus on economic earnings and free cash flow rather than accounting profits for a true picture of financial health Long-Term Focus – Long-term investments and value creation vs. short-term gains Capital Allocation – Efficient capital allocation is key - reinvest earnings wisely Market Irrationality – Recognize and capitalize on irrationality as "Mr.Market" can be inefficient in the short term #investing #markets #business #stocks #finance #pe #ceo

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