Profitable Over Unicorns

Greg Isenberg shares his evolution from pursuing venture-backed startups to focusing on profitable, cash-flowing businesses. He emphasizes the challenges of the traditional Silicon Valley path and advocates for a more sustainable, lifestyle-oriented approach to entrepreneurship.

Key Points:

• Silicon Valley Reality Check:

  • A whole generation was inspired by "The Social Network" movie to build social apps
  • Even the best founders see limited success - only 1/3 of top deals make significant returns
  • Two-thirds of founders don't see any money from acquisitions

• Shift in Business Philosophy:

  • Moved away from chasing venture funding
  • Now focuses on profitable, cash-flowing businesses
  • Making more money now than when he sold his previous company

• Lifestyle Business Perspective:

  • Silicon Valley views "lifestyle businesses" as lesser achievements
  • This creates an arbitrage opportunity for tech industry people
  • Many would be happier with $2.5M/year in cash flow but won't pursue it due to stigma

• Playing for Style Points:

  • Focus on building businesses that provide great lifestyles
  • Question the traditional goal of building multi-billion dollar companies
  • Emphasize quality of life over pure scale

• Current Approach:

  • Building businesses with audiences and communities
  • Operating a holding company model
  • Prioritizing profitable cash flow over venture-scale growth

• Business Model Evolution:

  • Previously tried to "catch lightning in a bottle" with social networks
  • Now builds sustainable, cash-generating businesses
  • Values consistent profitability over explosive growth

This perspective represents a counter-cultural view within the tech industry, prioritizing sustainable profitability and lifestyle benefits over the traditional Silicon Valley pursuit of unicorn status.