Indie.VC Model Failed
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A discussion about a VC fund called Indie.VC that went out of business despite taking an alternative approach to venture investing.
"They went out of business because they couldn't raise more money. In their announcement, they said they invested in about 10 companies - all bootstrapped and profitable companies that are still going. But their LPs didn't like their model and it cost them 80% of their LP base who didn't want to come back.
The interesting thing is they had this website Indie.VC with a video of a unicorn head on fire, positioning themselves as anti-unicorn. Their strategy was different from traditional VCs - instead of backing what many would describe as 'reckless' companies going for massive outcomes, they focused on profitable, sustainable businesses.
But the strategy didn't work in terms of attracting investors. While all their portfolio companies were still operating and profitable, they couldn't raise their next fund because LPs weren't willing to stick with this alternative model. It proves that if you're going to give money to venture capital, the LPs want you to back companies that can deliver massive returns, even if it appears reckless from the outside."
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.