Trading Places

Deals are a dime a dozen, or maybe a penny these days. Like a good dog everyone thinks they have one – sure - while it’s cute and cuddly until it grows up to bite you in the ass. Animal behaviors mimic their human counterparts (Dog Whisperer 101). If you’re neurotic, so are they. If you’re stressed and erratic, so are they. If you’re abusive, they’ll turn.

Deals, like dogs, often have fleas, and sometimes blood sucking ticks. To care for a deal you must have discipline, patience and understanding, and the ability to constantly adapt to external stimuli. A great leader not only balances these fundamentals but does so while others remain awestruck at the magnificent effortlessness of it all.

A great leader is not just a visionary but a strategist and tactician all in one. They see the target through a wide-angle lens simultaneously with pinpoint accuracy. Crisis is a walk in the park for these hunters and nerves of steel are their mark of distinction. They are competent and confident in all aspects of the deal - numbers, cash flow, use of proceeds, funding, valuation, competition, market dynamics, paradigm sensitivity, time management and resource allocation to name a few. They exude courage and imbue a relentless dedication to fulfilling their destiny, but never through self-indulgence or arrogance. This is where we put our money – in people, not deals. We look for these characteristics to invest our stake, hoping to find the right tail to wag the flea-bitten dog. It is these attributes that attract us most to a practical visionary. We recognize that strategy and planning require fluidity to adapt to changing market conditions. That the right captain has a “weather eye” to navigate the tides of both desperation and doubt more safely.

To earn out capital you must become capital – human capital. You must convince us that you know everything and nothing at the same time about your deal. And be ready to answer ALL of our questions perfectly. Even the ones we claim to not understand related to your sector and particular opportunity.

What we want to hear from you is this:

“I have no idea. The evolution of any new concept is organic in nature, which is the reason I stand before you. I’ve invested my own money in my company with hopes of revolutionizing a sector, but I admit I don’t understand the intricacies of it yet. I bet on fundamentals along with timing, mixed with a touch of gut instinct. I didn’t expect to walk into this room convincing any of you that I can tell the future, but I expect to walk out leaving all of you wondering if I’m a part of it. Consider me a managed fund rather than a quick pick – I’ll diversify and perform over time – consistently. And when it’s time to exit, I’ll go quietly.”

So, there you have it. Our archetypical masterpiece of an investment prospect. The creme de la creme of candidates, capturing 100% of our venture dollars, representing 1% of the hopefuls. This is who you must become to dig in our pockets. There’s only one problem however…we’ve never seen this character show up even once, and I’ll bet no one else has either. What does that tell you about how we really make our picks? Remember Trading Places? You got it. We’re the old codgers that bet a buck on Billy Ray Valentine and it wasn’t to see him succeed.