Venture vs Lifestyle Businesses

Sheel Mohnot shares his perspective on the distinction between venture-scale businesses and lifestyle businesses, drawing from his experience as both a founder and investor. He emphasizes that while he personally enjoys starting various ventures, the path to massive success requires a different approach.

• Personal Operating Style:

  • Identifies as a "0 to 1" person rather than "1 to 100"
  • Prefers starting multiple ventures and finding others to run them
  • Values saying yes to diverse opportunities and experiences

• Venture Capital Requirements:

  • Most companies he would start aren't VC-type opportunities
  • For multi-billion dollar outcomes, extreme focus is required
  • Would not invest in many of the companies he personally starts

• Real-World Example (Thistle):

  • Started as a solution to personal healthy eating challenges
  • Grew to $100M+ annual revenue
  • Expanded from San Francisco to West Coast and Northeast
  • Raised funding but "not that much money over time"
  • Acknowledges it's a "tough, low multiple business"
  • Still expects a "good outcome" despite not being venture-scale

• Business Philosophy:

  • Not every successful business needs to be venture-scale
  • Different types of businesses require different approaches
  • Success can come in various forms, not just through VC funding

This perspective highlights the nuanced understanding that while venture-scale businesses require intense focus and specific characteristics, there's still significant value in building successful businesses that may not fit the traditional VC model.