#thehustle

[adamrobinsonus]

Insights with Sam Parr on Venture Capital and Founder Liquidity

Sam Parr, founder of The Hustle and co-host of My First Million podcast, shares insights about the realities of venture capital, founder ownership, and the path to personal wealth for entrepreneurs.

This conversation reveals important perspectives on bootstrapping versus taking VC funding—an ongoing debate among entrepreneurs and thought leaders, including those like Adam Robinson, who explore financial independence and founder-focused strategies for building enduring wealth.

Transcript

Sam Parr: My friend sold his startup for $1b and only cleared $3m (pre-tax).

Me: What?!? How???

Sam: He raised $400m of VC from Seed to Series E and had 4 co-founders. 1.2% total founder ownership after employee options.

Me: And he didn’t take any secondary?

Sam: Nothing meaningful. He didn’t have the leverage.

Me: That sucks.

Sam: Tell me about it.

Me: You talk to TONS of wealthy entrepreneurs about how they did it. How do you avoid having this happen to you?

Sam: The problem with VC is that you are signing up to ultimately own 10% or less of something that has a 70% or greater chance of failing. If you just don’t raise, or raise as little as possible, the odds that you will have something smaller, own most or all of it, that has a much higher chance of succeeding… and be wealthy… are much higher.

Me: Have you ever taken VC?

Sam: Nobody would invest in The Hustle, which felt horrible at the time, but ended up being incredible for me personally. I sold it for more than what you see on the internet (which is high 20mm’s FWIW), bought the S&P index with the money (which is up 45% since I sold), and didn’t have to give anything to any investors. So I look like a genius compared to my $3m friend.

Me: Would you take VC now?

Sam: Now I would use VC money, but I’m post liquidity. I would want to really try for something big, and it wouldn’t really crush me if I wasted a decade on something that failed. Pre-liquidity it would have.

Me: What does “post-liquidity” mean?

Sam: I asked a bunch of wealthy friends how much money they spent. One guy who I really respected said $600k. I divided that by 3%, and it gave me $20m. After The Hustle, I cleared $20m and then some. So, that, for me, is “post-liquidity”.

Me: So you think no VC until post-liquidity?

Sam: Some businesses absolutely require VC. I invested in a robotics company that used a TON of capital and made the founder a billionaire. But, in general, if you want to get wealthy, use little or no investor money.

Me: Fair. One more thing.

Sam: What’s that?

Me: Asking for a friend… How does someone who bootstrapped $25m ARR and is going to do $14m in profit this year get on My First Million?

Sam (smiling): Email me … and come up with the angle!

Conclusion

This conversation highlights a crucial insight for entrepreneurs: while venture capital can fuel rapid growth, it often dramatically dilutes founder ownership.

For many founders, bootstrapping may offer a more reliable path to personal wealth, with Sam’s experience selling The Hustle serving as a compelling example of maintaining ownership while achieving significant financial success.

[brrtheblog]

13/01/24

Relentless propositions, proceedings, pushing for progress and results

The hustle feels endless, the struggle unrelenting.

Grinding away in cubicles under flickering lights, days blending into sleepless nights

Chipping away at spirits, we carve our own tombstones

Snipping away at threads, slipping on the tightrope

Splitting at the seams, an anguished cry slips out

Quashed in cold blood.

.

-A.

[lauriewoodward]

Mom: A Eulogy

My mother passed away on December 18th and in that profound loss I was tasked to write a speech for her memorial service. I trashed several drafts before I came up with this. Aunt Linda, her husband Dav, Mom pregnant with me, Dad 79 years and nine months. 698,600 hours. 41,916,000 minutes. In this past week since Mom’s passing, I’ve been trying to come up with what to say.  How do you sum up…

[peterwrite]

Bobby Dazzler - Zach Pharmz and Peter Write

[movietitlescollection]

[anniehathaways]

annehathaway: The Hustle stars this genius lady and me, but don’t let the smiles (or the new title) throw you—we’re still nasty to the core. @ rebelwilson and I are coming for your money June 29th.

#itsgoodtobebad #stillnasty #thehustle

[jamieroxxartist]

*Hey Musician Friends, you make a track like this you'll get played at every wedding reception ever, Forever!

Today in Pop Culture History: July 26, 1975 #VanMcCoy’s “#TheHustle” hits #1 in America.

( https://en.wikipedia.org/wiki/The_Hustle_(song) )

[brennerrama]

MOVIE QUOTE OF THE DAY:

“You look beautiful, Fats. Just like a baby. All pink and powdered up.”

Paul Newman in The Hustler

#TheHustler #RobertRossen #PaulNewman #moviequotes #moviequoteoftheday

[teenagequeenglitter]

Succession click here . .

succession #success #motivational #successionhbo #hbo #successtips #hustlequotes #successfulmindset #successfullife #motivationalquote #millionairemindset #successquotes #motivation #entrepreneurspirit #financialfreedom #dailyhustle #businesstip #businessideas #billionairelifestyle #booksforlife #successthoughts #moneysaver #thehustle #entrepreneurtip #successtipsforbusiness #matthewmacfadyen #motivationalquotes #rd #dubailifestyle #successhub

[eric-sadahire]

I think the real reason Willy Wonka gave Charlie the chocolate factory is because he knew how many lawsuits were about to happen.

[theholdn]

I notice every #halloween now I’ve been doing a Portrait of a DC Supervillain - Joker! . . . #adobe #illustrator #vectorart #vectorillustration #artistsoninstagram #artist4life #thegrind #thehustle #dccomicsart #dccomics #supervillain #batmanroguesgallery #clownprinceofcrime #gotham #smile #agentofchaos #thedarkknight #smilingfish #laughinggas #hahahaha #simpleart https://www.instagram.com/p/CU_HErzvpP1/?utm_medium=tumblr

[blkdiamonddst]

S/O to all my girl/Lady Bosses Get your Custom t-shirts, hats and masks made with top quality shirts made to last. All colors and sizes available from babies to adults we do it all. We also create custom vinyl wall art and vinyl car decals. WE ACCEPT BITCOIN, cashapp ($BlackDiamondDistrict) and the Square app Dm or call (623) 476-4644 for orders. No job to small and affordable. Delivery and pickup available. ***PAMENT DUE AT THE TIME ORDERING*** #blackdiamonddistrict #cantstopwontstop #thehustle #blackownedbusiness #blackdiamonddistrictcreativedesigns #customshirts #customtshirts #product #brand #square #graphicdesign #logo #custom #tshirts #shirts #customtshirtshop #shirtshop #facts #azmade #arizonatshirtshop #localbusiness #girlboss (at Avondale, Arizona) https://www.instagram.com/p/CM5JXiiDFHb/?igshid=6odjcqg0pall

[therealmightysavage]

Who I Do This For 💪🏾🙏🏾💯 #newclothing #familyfirst #realniggashit #thegrind #poloralphlauren #blacklivesmatter #rapindustry #musicislife #thehustle #graphic #spotify #itunes ##tidal #amazonmusic #gogetit https://www.instagram.com/p/CCM1DwsnfQ9/?igshid=1h83r25qpfhg6

[iscreamnails]

✨NUMBER 1 TONE IT UP COLLECTION best seller! THE HUSTLE 💖💅🏼 Grab it before its sold out 😍⠀ #thehustle #iscreamnails #nailpolish https://www.instagram.com/p/B8PW0uCAUuo/?igshid=dwqqiflqioas

[jamieroxxartist]

Today in Pop Culture History: July 26, 1975 #VanMcCoy’s “#TheHustle” hits #1 in America.

(https://en.wikipedia.org/wiki/The_Hustle_(song))

[crzyenufftochangetheworld]

Are you feeling the struggle in your striving? Check out my newest blog post! https://alreadygivendriventoshare.blog/the-strife-in-striving-window-datalayer-window-datalayer-function-gtagdatalayer-pusharguments-gtagjs-new-date-gtagconfig-ua-162913850-1/ #strifeinstriving #alreadygivendriventoshare #ftm #blognerd #thehustle #christian https://www.instagram.com/p/B_feYbuhHEC/?igshid=d8qlztn4h4ss