Buy To Scale Strategy

Moiz Ali, founder of Native (sold to P&G), shares his perspective on scaling businesses and creating value. He believes that at his current stage, acquiring and growing an existing business is more strategic than starting from scratch.

Key Points:

• Strategic Growth Perspective:

  • Easier to take something from $100M to $500M than starting from zero
  • New advantages and capital allow for different approaches than before
  • Building from scratch limits potential scale compared to buying existing

• Current Market Opportunities:

  • San Francisco real estate appears undervalued
  • Office real estate in various cities showing potential
  • Some D2C companies are severely undervalued but require bankruptcy before becoming attractive investments

• Lessons from Native's Sale:

  • Sold for $100M to P&G
  • Company now doing $500M in revenue
  • P&G's resources and expertise enabled growth that wouldn't have been possible independently
  • No regrets about selling, views it as the right decision

• Future Business Approach:

  • Wants next venture to be 10x bigger than previous
  • Looking for opportunities that can scale to $1B+
  • Recognizes need to be less rigid in thinking about new opportunities
  • Acknowledges that being too cautious might be limiting creativity

• Personal Investment Philosophy:

  • Prefers clear path to profitability
  • Needs to understand how business makes money
  • Wants realistic vision of exit strategy
  • More risk-averse than most entrepreneurs despite successful track record