#158 - Buying Michael Jordan's House (and Making a Profit), Investing in Athletes & Successful Startup-Studios
Look, if you don't figure this out, you're fucked. You're broke.
I feel like I could rule the world. I know I could be. Yeah.
What's up, Sean? Why we keep getting two things that's kind of like keeping me up at night. The first, which doesn't keep me up at night, but weirds me out. Why do people keep confusing us? And the second thing, and the second thing that does keep me up at night is I don't know if they're saying it just about me or about both of us, but they say that we look differently.
Yeah, they— yeah, and I think both are like— I think both are insults wrapped in disguise. Like, they're not saying anything bad, but the way they're kind of like laughing makes me think, uh, it's not a— it's not a good thing. I don't think it's an upgrade for them.
Someone said that I write like a bro but I look like a nerd, and I'm like You're insulting both my looks and my— like, how do you make me look— I want to look like a bro maybe and talk— or wait, which one do I want to do? I want to look like a bro and talk like a nerd maybe.
That's hilarious. Yeah. So people mix up— that means for months they've just been listening to this and they think I'm you and they think you're me. And when they follow us, they, you know, they have it all wrong.
It's kind of funny. And then I have— do you know what efoiling is?
What's efoil? What are you talking about?
I'm about to rent one. So it's a $12,000 device. And it looks kind of like a wakeboard. But it has like a 3-foot to 4-foot, like rudder that sticks on the bottom of it. And on the bottom of that rudder is a motor. And it's like a boosted skateboard with like a with like a handheld acceleration device and it— you lift off and you ride 3 feet above the water.
I've seen this. Now that you say— I thought you were talking about something related to like, I don't know, microphones or voices. You just switched topics with a hard left turn, but I appreciate that. So I saw this because what's the name of that one surfer guy who's like super famous?
Yeah, Laird Hamilton. I saw him doing this where he was going. I don't know if his— I think his was like even taller. But basically he was surfing with, you know, there's like a, there's like an underground fin and then he's elevated above the water and he was like, and there's, it's like a jet ski that he's standing on. It was kind of crazy. Sounds like that's what this is.
Yeah. Well, I'm about to go do it in an hour. I'm pumped.
Is this the next pickleball?
Before we get into ideas, it might be, it might be there. I'm getting ads for it constantly on social media. It might be. We have a good episode today because you brought something up incredibly interesting and I went deep on it. But before we get into that, can I tell you a quick story?
Yeah, go for it.
Okay. So a few weeks ago, I got mocked on the internet for doing this trapped in a closet with Andrew Chen thing. So this guy named Andrew Chen is a partner at Andreessen Horowitz. He's got a cool startup-y blog, but I heard he told me one of the wilder stories I've heard recently. Recently. So when he was in, I think I could, I might get some of the details like wrong by year or two, but when he was in about 6th grade, he took the SAT and scored really high. And when he did, I think it's the University, or University of Washington does this thing where every 5 or 10 years, uh, they take 5 or 10 students per year who are in 6th or 7th grade, sometimes younger, like 12 years old, whichever grade that is. And they asked them to come to college, to come to University of Washington. And he was one of the students. And so he, at 6th grade, I think he skipped 7th grade and went straight to college. And he moved there in a dorm, went to college. And I asked him who else was in it, and he actually said Emmett, Emmett Shear from Twitch, was one of the folks.
Wait, wait, so he didn't go to college? He didn't like become a college student? He just went for like a camp or something? Or he's not like—
Doogie Howser stuff. Like, he literally, instead of going to 7th grade, he moved into a dorm, went to college, and, and here's where it gets even crazier. So he like moved there, moved away from home, which I think his parents are from the state as well, but it was like moved half an hour or however far away from home, lived there as a college student, and he understandably was kind of embarrassed and didn't really tell a lot of people.. And so they thought that even though he was, however, whatever age you are in 7th grade, they kind of assumed that he was just another 18-year-old. And apparently he told me that he even dated a girl. He just kind of acted normal and they didn't find out that he didn't like hide it from them, but he didn't bring it up. And they didn't find out until senior year or something like that when everyone was turning 21. And they were like, when do you turn 21? He was like, oh, I'm, I'm actually 17 years old or 16, whatever.
16. Yeah.
And I— it's a pretty wild story. And I asked him like, who else was part of this program? He said the founder of Twitch was, some person running a huge hedge fund, just like baby genius, like real baby geniuses. Crazy fascinating story. And apparently the University of Washington still does this every year where they select— I forget what they call the program, but it's like a thing where they have psychologists and therapists meet with the kids every quarter, every month to discuss what's going on. And it was incredibly fascinating. And in a very typical genius response, I said, isn't that weird that you skipped high school? And he was like, well, when you think about it, adolescence is really just like a societal constraint. And I kind of experienced the same. And I was like, oh yeah, I mean, I guess you're right. But like, thanks for proving my point.
Age is just a figment of my imagination. Yeah.
Isn't that wild?
That is wild. Also, I don't know if that's true because Emmett definitely went to Yale and so did Justin Khan. So I don't know.
Oh, maybe it was through Yale, but he said that Emmett was part of the same program. Or maybe he dropped out, but he said that Emmett was part—
age 13. I love it.
I would say that Emmett was part of his program. I don't know what program that they do it in a ton of different schools, but like a 13-year-old freshman in college.
Would you let your kid do this or would you want your kid to do this? Let's say your kid's 12, scores high on a test. Would you want them to skip high school and go and be a 13-year-old college student and like amongst the, you know, amongst the crazy 18-year-olds?
So it's a good question because your— my gut instinct is probably the same as everyone else's, which is high school is important. You learn, uh, about yourself, and, and it's important to go through all that normal stuff. But we also complain that high school often— or that like what you learn in high school is kind of bullshit and And, you know, what does the world look like if you do combine the two? So like, maybe it is. I don't— so I don't know. But isn't that— isn't that a wild story?
Yeah, that's crazy. I am—
such a fun fact about someone.
Yeah, I also think it's an interesting strategy for the colleges. Like, why are they doing this? I think it's kind of cool. I remember the reason I ended up going to Duke is because they had this thing called the TIP program, which is the Talent Identification Program.. And you would take the, I don't know, the PSATs or something like that. And then if you scored above a certain thing, Duke would send you this kind of like kit, this goodie bag. And it basically was like, it felt like getting an owl from Hogwarts. And it's like, hey, you're 12. And like, we want to invite you to this special school for the gifted and talented. And it just said like, you scored high on this. We have identified you as a talented person. We would love to, you know, like have you come visit our campus and like eventually. And the shit worked. I went to Duke eventually. I didn't put two and two together. That's why. But like, if I think about it, that's why I started paying attention to them. And that's why I started following the basketball teams. That's how I even heard about it. Otherwise, as a 12-year-old kid, you don't even, you don't even hear about colleges. Right. So I thought that was pretty interesting. And if you think about it, you know, these schools are for profit. These schools are trying to get, you know, they're trying to get tuition. They're trying to get people to come in and pay the 40, 50 grand to go to school.. And so these little investments, um, and, and, you know, who doesn't like to be called talented? Who doesn't like to be called kind of like a phenom? Uh, what parent doesn't want their kid to be identified as a special? Um, that shit works. And I'm surprised that more schools don't do this. And when I start my school, I, I too am going to do this.
Yeah, I'm, I'm trying to like do some research on it right now while we're talking, and it's not really effective, but, uh, you'll have to look up this program when you're done. It's just a really cool, interesting thing. And it was funny to meet someone who went through it, and it was just such a silly, fun fact about someone.
By the way, my roommate in college, we— when he got— when we got to college, I was like, yeah, yeah, you know, we're all 17 or 18, whatever we were as freshmen. And he was like, yeah, like, he would say like, yeah, but then like I noticed his expression. I was like, well, what? He's like, well, I'm like 19 and a half, about to turn 20. And I was like, what? Why are you so old? And basically they do the exact opposite when it comes to sports. So in sports, the common thing to do is to like sandbag your kid and basically hold your kid back a grade or like send them to school a year late so that they're always bigger, faster, stronger than all the other kids in their grade. And you're always like the star athlete because you have like an extra year of development or you have a better shot, I should say, of being a star athlete. And so he was from Wyoming and he's like, oh dude, in Wyoming, this is— that's par for the course, dude. Every, you know, every 6th grader is like an 8th grader's age because everybody wants to like have their kid be—
when I my first 2 years of college, I was an athlete, and I would compete against these guys. And there was 2 groups of people that we would like— and I was friends with them, but we would tease about— they're not really— it's like, it's a little unfair, which is the first was Kenyan. So Kenyan runners. I think that there's— I don't know. I don't know. I don't think they were lying about their age. But I think there's an exemption if you serve in the military. So you get to compete in college and college athletics, I think until you're— this was a 10 years or 8 years ago, however long, you get to compete until you're 26 years old. And then the second is for religious stuff. So the Mormons at age 18 would bounce for 2 years. So they would be a 20-year-old freshman, which means they'd be a 24-year-old senior in college. So I was 18 my freshman year competing against 24, 25-year-olds. And so yeah, more the Mormons and the Kenyans, if they— and anyone who served in the military.—
and I know this topic is basically nobody gives a shit about what we're talking about, but I will say there is a lesson. In life, you get to choose, are you going to punch up or punch down? And the Andrew Chen thing, going to college at 12 or 13, that's a kid who's punching up. You're, you know, you're in an unfamiliar circumstance, you're stretching beyond, you know, what you— but you're playing in the bigger leagues than where you are. And then there's the athletes that are held back years or, you know, come back and compete against people you know, 2 to 5 years younger than them, that's punching down in weight. And I would say like punching down has some benefits because typically you're going to score better, do better in these little like games, you know, in high school or college athletics. But in the end, you really want to be somebody who punches up. You always want to— I think, you know, for long-term success, you want to be somebody who punches up, who's somebody who's always in a room where you're just barely hanging on because it'll push you to get better more so than just dominating people because you're older and stronger than them.
Well, worked for Andrew Chen. I think he's 38 years old, but I was like, but you're really like 45, right? Like you have the experience of like a 45-year-old. All right, let's get to the topic. Like you had your first full-time job at 18. Okay, let's get to the first one. So Sean put something on here that I actually think I was telling a friend as I was researching. I actually think that this is one of the better ideas that we and you, you've ever come up with. The Michael Jordan thing.
All right, yeah, you want me to explain it? Okay, so, um, I've been looking at this house for a long time. Michael Jordan's house has been for sale for like a decade and it hasn't sold. And this is his house, uh, kind of like, you know, in Illinois near Chicago where, you know, Michael Jordan was on the Bulls. And he had this 56,000 square foot home in Highland Park. And so this thing originally, he put it up for sale and like, I don't know, 9 years ago for $30 million, $29 million. And now it's, you know, the price has been cut in half and the thing is still not selling. And if you look at the photos, you can just go, it's like on Zillow. So you can go look at the photos. He's got like an indoor basketball court. You know, the gate leading up to the driveway has this big 23 number like embossed in it. He's got, you know, everything you would want, like huge, you know, closets because he's got, you know, all his Air Jordans or whatever. And so his house is, it's pretty unbelievable, right? There's, there's all kinds of epic shit here, but it's not selling and it's not selling for, I think, a couple of reasons. It's like, you know, it's very custom to Michael Jordan. Like, it just, it's like it was custom made in many senses. So, you know, the other rich people don't necessarily want to live in a house that's like made for another dude. It's also, you know, it's very expensive for the area. The property taxes are really expensive, all that stuff. But I was thinking, okay, the price is now cut in half. Now it's, now it's a $13 million house or $12, you know, $13 million home that you could buy, $13, $14. And now it's in range where maybe there's something fun you could do with it. Now you might be getting a value buy. So I was thinking, all right, there's a bunch of people obviously that are basketball fans that love Michael Jordan. Um, there's a bunch of, you know, new ways to crowdfund that we've been talking about, NFTs or Kickstarter or different crowdfunding platforms. So The question is, should we buy Michael Jordan's house? Should we start a crowdfunding campaign and buy Michael Jordan's house? So if you could get 5,000 people to each put in $2,500, then you can own a fractional share of Michael Jordan's house. You could, you could own a piece of this history and we could just buy it out, take it off the market and we could own this thing. And then the question is like, what do you do with it? And so I wanted to brainstorm with you, A, should we buy Michael Jordan's house? And B, what could we do with it if we did buy it? What do you think?
So the whole NFT thing, I wouldn't do that. I think that— I think you've had two ideas here. One is to buy his house and two is to do the NFT thing. One of those ideas is great. I think the other one is overcomplicating it. I would 100% buy it. And the reason why I think it's such a great idea is Immediately after seeing you write this, my thought right away went to Graceland. You know what Graceland is? No. That's funny that you don't know what that is. It's because it's such a big deal in my family, or Elvis's at least. So Graceland is Elvis Presley's house. It's in Memphis. It's in downtown Memphis. It's actually in a pretty crappy neighborhood now, or the neighborhood is not nice, and it's like kind of gross, but it's just like a cutesy thing to do if you visit Memphis. And I went and did research on it. And so around 600,000 people a year go to Graceland, which brings in something like— where I have the numbers here. Okay, so Graceland, just in attendance, uh, just in ticket sales, brings in $21 million. So it's, yeah, pretty wild just on tickets.
And then 600,000 visitors a year, uh, $36 a ticket, right?
Yes. I got interested in this. I thought, what are the most visited homes in America? I came up with a few, and I want to fill you in on them. The White House doesn't count because you can just— I think you can get a tour, but you could also just walk outside of it. Graceland, 600,000. The second one, you guys are going to make fun of me. I don't know how to pronounce this. What is it? Monticello?
I think so.
Okay. Monticello, that's Thomas Jefferson's house. The interesting thing about this place, as well as a few other I'm going to mention, is that they're nonprofits, which means all of their numbers are public. And so the revenue for Monticello, which includes a ton of investment revenue, was around $200 million in 2010, but around $8 million, $7 million came just from ticket sales. So $8 million a year in ticket sales, which is crazy. And they have around 500,000 people. Another most visited home is Neverland Ranch. People don't go there. But another great one is Mount Vernon, which is I think, what's our first president? George Washington's house. And they do in food sales alone, this is crazy, just in food, $17 million a year. Wow. Is that crazy?
This is insane.
The whole operations. And then they do $15 million a year in admission sales. And in total, they do about $51 million a year in total income, which includes $10 million from contributions. Is that crazy?
No, that's absolutely insane. So let me ask you these. Okay, so this all of a sudden, this starts to get really interesting, right? Because I think Michael Jordan is on par with Elvis and, you know, Thomas Jefferson. Michael Jordan's got TJ beat by a long shot. So, you know, MJ over TJ, I think, is part of the slogan that we have when we, when we buy this thing. But if they're doing this much in traffic, I got to know, is there something else? Meaning like, are these in really like popular areas where there's already just a lot of tourists or something like that? And this is just a pit stop because, you know, Michael Jordan's house in a neighborhood, you'd have to only be going to go to this place.
I looked up Michael Jordan's address. Guess how far away it is from Chicago Airport, one of the most popular airports in the world?
I'm going to guess 45 minutes.
20 minutes. It's 20 minutes away. Okay, so it's at— like, have you been to Memphis? Memphis is like— there's not that much going on in Memphis, and all these people are going to Memphis. Um, people are— Chicago is what, the 5th most populous city in America, or maybe 3rd, something like that. Something is interesting here. So what I would do is I wouldn't do the NFT thing. I would raise 2 or $3 million from a bunch of rich people, or I would try to use my own money if I had $2 or $3 million that I wanted to spend on this, and I would buy it. And then it would probably cost a fair bit of money to get it set up. It would probably cost a lot of money, another many more millions. But then you'd have to convince collectors to lend you the stuff, and you create a Michael Jordan museum. Yes.. And that's how you do this. And the companies that we've just mentioned, Graceland, Monticello, and Mount Vernon. So those, obviously those folks lived in the 1700s or probably died in the 1800s. So they've been around, those properties have been around as tourist destinations for 100+ years, but they've done $50 million in revenue, which is a shit ton. But even if you've just done $2 or $3 million in revenue, and you could do that and adjust for inflation for 50+ years, kind of like Graceland has done it for 60 years. That's incredibly fascinating, right?
Yeah, I'm with you. So, so I think, you know, you're shitting on the NFT thing a little bit, but it's not about NFT. What I'm saying is crowdfunding. So I think that there's a benefit to crowdfunding, which is that crowdfunding is a way to make the story more viral. It is a, it's a more PR-worthy story that, you know, people from the internet, people from Reddit, whoever got together and bought Michael Jordan's home off the market for $15 million. They raised $15 million and bought the house versus a rich guy went to his rich friends and raised some money. The second thing is those become, you know, your evangelists to spread the word and to come make the pilgrimage to go see Michael Jordan's house. And I think you could do 2 or 3 things with it. I think you could make it a museum that's like a modern museum that we've been talking about, like the Museum of Ice Cream or something like that, where the tour is very heavy photo-based. And so you're, you know, you're going through and it's all these different photo exhibits of, you know, you in Michael Jordan's bed and, you know, wearing, you know, a pair of his Air Jordans or standing in a pair of giant Air Jordans or something like that. And you make it like a museum of ice cream where you're going to walk out with, you know, 10 photos that are Instagram-worthy. At the end of it. I also think—
give, give people background on me on Ice Cream Museum.
Yeah, Brady, you can pull the latest numbers, but I think these guys, uh, raised at like $100 million plus valuation. And if you, if you ever go to one, they're pretty cool. It's, you know, it's not the most amazing thing. I honestly, I was a little bit disappointed, but the photos do turn out cool. It's a museum that you walk through, uh, so it's like a guided path and you go through maybe like 13 different rooms and every room is something cool and you get a little You know, you get an ice cream cone of some flavor and then you can take photos next to some like exhibit that they've set up. And the idea is not for you to look at the art like a traditional museum, but for you to like take a photo in the art and post it on Instagram. And that's their marketing. That's the free marketing that they get. And so Museum of Ice Cream. Oh yeah, here Aubrey has it. They raised $40 million. They raised a $40 million Series A at a $200 million valuation last year. And, um, and I think this could be bigger. Um, I think this could be much, much bigger as a brand. Um, the other thing, uh, the other thing that you could do is, uh, sports cards are having this incredible boom right now. And I think what you could do is you could have certain collectors put their collection, um, uh, in, in the house. The house could be basically the vault to store some of the most rare memorabilia in the sports world. Signed basketball shoes and sports cards, and that could be part of the museum. And you basically store it and you, you store it for some of these collectors. So I think, I think there's a bunch of stuff you could do to make this work. But the idea is like, can you buy this thing for $13 million, put another $4 or $5 million into, you know, getting it all set up? And then could you make $5 million a year? Could you make $10 million a year like you're saying these other guys do as a pilgrimage for, you know, tourists going to Chicago and basketball junkies?
I think the answer is definitely yes. And I think it's so interesting. I found another example of one and it's called the National Trust for Historic Preservation. And it's a nonprofit and all they do is buy historical buildings. And I looked at their numbers. They've been doing like $50 or $60 million in revenue for years. And I'm still trying to figure out how to entirely read nonprofit statements, but they have a line item that's revenue less expenses, which I guess that just means profit. I mean, I don't know how they define—
Yeah, it's EBITDA.
I don't know how they define either of those, but it was $26 million and it's been doing that for years. Is that nuts?
So I like this idea. I like this idea a lot. And I kind of want to dig a little further into how these how, um, homes, home museums work. Because I think this is pretty interesting. The other good thing about this, by the way, is that the Basketball Hall of Fame sucks. Uh, nobody cares about it. Nobody goes to visit it. Um, all the other sports, like, you know, Canton for football, these are like tourist destinations. You know, tons of people go there every year. It's really cool. And the basketball one, um, is known to be super lame because they let way too many people in. And, um, And it's not like— it's not a thing that basketball fans really care to go do.
Can I give you two more examples that we— what we could consider doing instead of even doing a museum? Maybe this is even simpler. Yeah. So I'm staying at my friend Jack's house. It's a badass house. Um, 5 doors down or 10 doors down, something like that, nearby is what they call it the Obama House. And when Obama was in office, from, uh, when was he in office? The '08 to '12 was the second, the second term, um, or whatever it was. He would stay at this house down here and the owners let him stay, I think, for a massive discount. Now it's like, it has its own Wikipedia page and it's called like the Obama House, and it sold 10 years ago for $7 million after he had already stayed there, which— or sorry, $7 million. I said, I say $7 million, for $7 million, which is a lot of money But they rent it out right now on Airbnb for $6,000 a night. Or if it's booked all the way up, $180K a month. And it's branded as the Obama House. I think that you could absolutely crush it with a Jordan Airbnb house. Would you and a group of friends be willing to pull together $3,000 a day to stay there? Maybe.
I think the way you'd have to do it is you'd have to make it like a Vegas alternative for bachelor parties and stuff like that, birthdays. It's like, what is the man cave, man dream vacation? It's like, dude, we're gonna go stay in Michael Jordan's house. 14 of us are going, uh, and it comes with like all the amenities and, you know, all that stuff. This is where you go, this is where you want to go if you want to live like the sports fan's dream. I think you could do that. I do like the museum one better. What was the second idea you had? You said you had two.
Oh, what wasn't the second? I guess it was more so, uh, just another example. The Fresh Prince of Bel-Air house. Um, it's, it's kind of interesting, but do you remember living in San Francisco how there's like the— what's it called— the Painted Ladies, which is the Full House house, and then there's the Missed Out Firehouse? Um, I would just want to buy all these and turn them all into tours.
So I lived a block away from the, uh from the Full House house. And literally 24/7, there is somebody standing outside of that house during the daytime taking a photo of it. So there's just a constant— and it's not like a huge line of people, but there's always like 4 people standing outside taking a photo in front of the Full House house every single day for the whole year. It's kind of crazy. And then it just sold, actually. And it sold at basically like, I think, 1.5 or 2x the market rate in that area. So Um, they got basically like a double premium because it is the Full House house, which I think is, you know, kind of interesting. Um, but okay, I think we should, uh, I think we should buy Michael Jordan's house. I think we should crowdfund, uh, I think we should crowdfund 5,000 people together. We should own this thing. Or we could go to Rally Road and we could say, hey Rally, let's put Michael Jordan's house on Rally and, uh, you know, let's sell this baby out. I think if 5,000 right now with— if you go on Rally Road, you'll get 2,000 or 3,000 people buying a fractional share of, you know, a pair of Jordans or a signed autograph or a signed rookie card or something like that. Fuck all that, let's own the guy's house. So I think you could easily get 5,000 people on Rally Road to buy a fractional share of Michael Jordan's house. I'm surprised they don't already do this. If they're listening to this, uh, you know, go, go for it. Just give us credit and give me a share of the house.
I actually think that they wouldn't do that because how do you liquidate that? It's been on the market for 20 or How long? 10 years? No one is— obviously no one's buying it. So like, how do you get liquidity from that after 7 years? I don't think you don't. I think they came here, right?
The point of Rally is that they take things that are not assets and they make them not liquid assets, they make them liquid assets. So because you can own a fractional share, now there's liquidity. Any one person who owns a piece of Michael Jordan's house can swap it for anybody else who wants to own a piece of it. So you don't need a $15 million buyer. Because you can sell them in blocks of $1,000 or $1,500. And so when you bring that price point down, there's people who want to own a piece of the art, a piece of the asset, which is how they do like, you know, they'll sell, you know, a Harry Potter first edition signed, you know, set of books. And, you know, instead of selling it for $25,000, they'll get, you know, 2,000 investors to each put in whatever the math comes out to, $150 to go buy, you know, to own a piece of that thing. So they introduce liquidity by making it fractionally owned.
Yes, but there's still no cash flow. You have to create an operation around this.
No cash flow. There's no cash flow in a basketball card. There's no cash flow in Air Jordans. There's no cash flow in Harry Potter first edition.
Asian investor who's willing to buy it.
No, dude, you're, you're still thinking like the old world. You haven't seen what's going on in Rally. You're staying with Jack Smith. You should go ask Jack Smith about how this stuff works. He's the one who taught me, and he's one of the biggest investors in this stuff. He's not buying it for cash flow. You know, he's buying it because there are— there is another— there is another collector. And when you make it fractional, now way more people can get in on collecting it versus just the rich, deep-pocketed people who could buy the whole asset 100%.
Yeah, bro, but who— who liquidates it after a handful of years on Rally Road?, someone actually buys the car after a few years?
Very rarely. Occasionally somebody comes and offers to buy out the whole, the whole lot, um, and, and then they put it to a vote. I don't know if you've seen this, but like, you know, let's say a box of Pokémon cards went on there, uh, like a super rare Pokémon card set. They— I don't know what the IP— what the IPO was, but on Rally, the IPO date, let's pretend it was $50,000. And then what happened is a, is a big, you know, Asian investor came in and said We'll buy this thing out for $85,000 now, so you'll all get a profit, but we want to own this thing. And they put it to the vote of all the shareholders, and they said no. They said, we're going to hold it. We think it's going to go up. So they voted no. They voted to keep it. So they're not all trying to liquidate soon. You know, some, some people who are buy-and-hold investors will want to own these assets for a long time because they think, hey, you know, if I just hold this now, you know, what's Michael Jordan going to be? What's Michael Jordan's fame going to be 20 years from now? If Michael Jordan passes away, how much is it going to be worth? And there's people who are in it for the long term. So I think there's, I think the collectibles thing is a little bit different than, I think about it differently than you do.
I would say you basically need Jordan to have like a tragic accident or like, for example, The Last Dance came out.
So, so The Last Dance is 10-part documentary that came out on Netflix and ESPN. You know, millions and millions of people watch this thing and Jordan's brand, you could see all the price of Jordans went up. Jordan's like brand visibility and brand sentiment went up because this documentary came out and he's still alive. It wasn't a tragic event, but somebody told the Jordan story to the younger generation who grew up with, you know, they were 2 years old when Jordan was at his prime. And so Jordan Brand got stronger with The Last Dance coming out. And I think that's just going to continue over time because he's got all these different, you know, the legacy becomes bigger than the person itself. But I have a different thing that's sports-related.
Okay.
Yeah, you— can I do this one? So a different thing that's sports-related and ties into the idea of, um, making assets out of things, making liquid assets out of things that were non-liquid assets. So there's this, uh, company called Big League Advance. Did you see this thing?
No, keep going. All right, I'm looking it up.
So, um, so shout out to, uh, Joe Pompliano, uh, you know, Pomp's brother, one of his brothers., who, you know, does these Twitter threads all the time. So he did this Twitter thread that caught my eye, and it was about this player Fernando Tatis. So this guy's one of the young— I don't follow baseball anymore because baseball's slow and boring to me now, but I used to.
And, you know, back in the day, Fernando Tatis, his— is that for— is it Fernando Tatis Jr.? Because, okay, when I was a kid, the senior played in St. Louis, and he was like a huge deal. I think he hit like he hit 3 Grand Slams in one inning and he was like our hometown hero for years.
Okay, that sounds crazy. But yeah, basically this guy is like one of the youngest star baseball players and now like he signed one of the big contracts. So he signed a $340 million deal with the Padres. And the interesting thing that came out of that was that this company that I had never heard of called Big League Advance made $30 million off of that deal. So who is Big League Advance? So basically what these guys do is They go to minor league baseball players, of which there are thousands, and they say, look, you're making, you know, you don't make shit in the minor leagues. You know, you're riding the bus, you get paid nothing, and you're hoping to one day get to the league and you're hoping one day to become a star. You're hoping for the Fernando Tatis story where someday you'll sign a huge contract. And what they do is they go and they offer you a deal. So they'll say like, hey, we'll give you $100,000 for 1% of your future earnings. So it's an income share agreement like we've talked about with Lambda School. School and whatnot. And they'll go and they'll say, you know, $350,000 for 8% of all your future earnings. So we'll bet on you, we'll take a risk on you. So you get some money today, you can give your family a better life today. You don't have to keep like roughing it while you work your way up. Uh, but hey, if you hit it big, like, we're gonna get paid out. And, uh, they basically do a bunch of analytics on their side to try to guess which players to invest in, what, what is the exact deal to offer them. So it's like a startup investor who's coming up with the valuation of every minor league baseball player. And they know they'll lose many money on like 80% of the deals that don't pan out. And they're hoping that the 20% that do turn into huge returns like a Fernando Tatis Jr. And so I think this is an awesome idea. This actually is similar to a company that we've talked about called Pipe. Pipe is— they basically take companies that have SaaS revenue and they say, hey, you got all the SaaS revenue. Let's turn that into a tradable, investable asset. Let's take your contracts you have with customers and let's make it so that anyone can just buy some of your SaaS contracts off you and you get money today upfront for those contracts. You don't have to wait the 12 months for your customer to pay you every month. And for that, that investor, they're going to get a premium, you know, so they'll pay you the year's worth of the contract. And in exchange, they get like a 12% return on their money and you get money upfront, which you can reinvest into your business. So I really like these companies that are taking things that were not investable, tradable assets and making them investable, tradable assets. And I think Big League Advance is a cool one because it's basically betting on minor league players that might turn into stars. What do you think of this?
But well, I'm looking at their website. So how can a minor league— does that ruin the amateur stat or is there still amateur status within?
I think it's pro. Minor League is that you're a pro, you're a professional player, you're part of a team's farm system, and you get paid. You're out of the college system by then.
So you can only do— you can't do this for college kids? Correct. That's cool. So I think that you— I'm looking at their website now. So I imagine this would work for golf, baseball, tennis, basketball, tennis, I guess, anything that's like crazy numbers related, right? Like you can kind of like I wonder which sports do you think are the most predictive in terms of—
Baseball is known to be the most predictive, um, and the most like kind of statistically modelable because your teammates kind of don't matter when you're up there batting. It's just you and there's no like team dynamics. Whereas in basketball, a player can be better or worse because there's 5 other people on the court all moving around and it all affects each other. But you know, that doesn't really matter in this case. What here, what you're basically saying is Let's say there's a— like this guy Spencer Dinwiddie tried to do this on the Nets. He, he, he had signed like, let's call it a $30 million contract. And what he tried to do was offer people token shares in his future. So he said, look, I think today I'm like a B-level player. I think I'm going to be an all-star someday. So if you invest in me now, you'll get a share of my future contract. And so you're just betting on a player. You're just saying, I think that this player is going to be a star and I think this player is going to earn this much in his career. So I will, um, I'll invest now in an income share agreement of his future earnings. And so for the player, they get money up front. They don't have to wait to earn their contracts and they get a little bit of insurance. Like if anything happens, they get hurt or, you know, something bad happens in their career. Hey, at least they didn't risk it all. They got paid some up front. And for a fan, it's a way to kind of bet and invest in players that you think are going to have more future earnings than what they're offering today as a valuation.
This is so amazing. I'm looking at their, uh, so they've raised $150 million. I think that from the looks of it, it looks like they only have like 30 employees. Do you think that's accurate?
And if they made $30 million from, from this, this one guy alone, so this was like the big home run. Um, and you know, they've had other things where like they, they got sued by a player because they offered him $360,000 for 10% of his future earnings.. And then he, you know, he tried to sue them being like, oh shit, that was like a predatory deal. I didn't want to give up 10% of my, all my future earnings for just $360K. But in actuality, the guy only made $1.2 million in his career. So it actually turned out to be a profitable deal. You know, he took $360K upfront and ended up only paying $120K out to these guys in the end. So he dropped his lawsuit.
Why? Why is there so little information about these guys online? You think there's really not a lot to fly under the radar?
They're not a tech company. It's just a financing company, basically. They, they try to fly under the radar. They also got like kind of disavowed, like the Major League Baseball doesn't like them. The Players Association said we do not like— we don't like— like we don't say that this is a good thing. But for a player, you know, it's— they're cutting a deal with an individual player and And I guess it's allowed in baseball, whereas in basketball the NBA blocked the thing I was talking about. They blocked Spencer Dinwiddie from tokenizing his future contract and, and basically selling off future earnings. So some leagues are not allowing it, but Major League Baseball still, uh, still does allow it, and Minor League Baseball still allows it.
So my question is this, and you're more of a sports guy than I am, and I'm looking at this and it seems awesome. My question is, what actually would make this fail and not work well?
So bad predictions. So you invest in a bunch of players that don't pan out, you could go underwater. Like, I don't know, I don't know how favorable their, um, I don't know how much room, margin of safety they have when they do this stuff. Like with startups, for example, just like, just like startup investing, a lot of people, um, are angel investors, or a lot of, you know, average VC funds actually can't even beat the stock market in terms of returns. And, um, They're illiquid and they're risky and they don't outperform. And so it really comes down to these guys' ability to pick and value players accurately. If they can't do it well, they're going to go broke. And if they can do it well, they're going to make a bunch of money. And I think that's a healthy setup.
How challenging is it to do this? Because I don't know anything about sports, but I feel like this whole Moneyball thing seems kind of like table stakes at this point for for professional teams?
Right. I don't think it's that challenging, to be honest with you. I think that there's, you know, you're getting— you're collecting data all the time. You have scouts, you have all these different ways to value players. And in this case, it's such an inefficient market because the minor league players just make nothing and the baseball teams don't want to pay them a lot. It's like, hey dude, you know, do you want to live out your dream or not? And so we'll pay you the absolute minimum required for, you know, just to have you in our minor league system. And so what these guys are doing that's smart is they're taking a percentage of all the future earnings. And, uh, and so I think they're, they're basically going up against nobody right now. But I think, and I think there's an even easier way to do this in the NBA because the NBA has guaranteed contracts. So let's say I sign a 5-year, $100 million deal. I'm an NBA star. Cool. That means I'm going to get $20 million a year, uh, drip to me. And so somebody could come and offer this guy $80 million upfront or $75 million upfront lump sum. Here's your money today, and, uh, good, you can use that.
You can go ball out if you want. Does the NBA, does the NBA have big, as big of a minor league? I know they have the D-League, but I feel like I know so many, I've got so many friends that go in the minor league of baseball.
Yeah, so the NBA G-League is not anywhere near, like, all baseball players, stars and don't stars and not, go through minor league baseball. Stars in the NBA go straight to the NBA. They skip the G-League. G-League is like journeymen. And so you wouldn't do this with minor league in the NBA. You do it with the actual NBA athletes. And for them, what you would be doing is saying, cool, you're on your first contract. I'm betting that your second and third contract are going to be bigger. And I'm willing to pay you upfront on this multi-year contract because, hey, it's guaranteed. You could go and break your leg tomorrow and you're still going to get all this money from your team. So the NBA has guaranteed contracts. So it's way less risky. You could just say, look, I'll give you this money up front so you can go invest it and you can go ball out. You go buy your mom a house. You go buy that, buy that thing you always wanted. And in exchange, I want to get some, some margin on the— because I'm willing to wait the 4 or 5 years for your contract to play out. And I can bet on your next contract and I can, you know, give you some future money today in exchange for some percentage of your future because I think you're going to be a star.
I think that this is awesome. Would you value this at a software company? Because if it's like the average length of an MLB or NBA player, I don't know what it is, but I bet it's in the 8 to 10 year range, which means you have a really high LTV. You have, I imagine, a quite predictable stream of income. Would you value this at software or close to software?
No, I don't think so because it can't scale. That's the beauty. The beauty of software is that it scales. Sort of infinitely. And, um, you know, for every additional customer you have, you don't have that many additional costs. In this case, I think this is more like real estate. I think they're— it's just people as property. Um, you're buying this asset, this multi-family property that has this much rent, and, um, it's gonna— it's gonna cash flow for this many years. And so you basically are— I think you're just buying properties.
Yeah, but real estate sells for almost SaaS-like multiples. Real estate sells at like, what, like a 5 or 6% cap rate?
Yeah, but software is like 50, dude. Like, if you go look at Salesforce or Slack or go look at these guys' multiples, you know, it's like you're at HubSpot. HubSpot is doing $1 billion a year of top-line revenue. That's not profit. And, you know, even on the revenue, I think HubSpot's valued at what? It's like a $30 billion company or something like that. So it's a 30x of revenue in that case. So software has better multiples than real estate.
Sure. Well, do you want to talk about one more thing?
Yeah, go for it.
Let's talk about, uh, we don't have enough time, I think, to really dive deep into the studio model, but I'm really interested in this. So there's two companies that I've been eyeing. The first is Atomic, which is, uh, started by this guy named Jack Abraham, and he has launched maybe 10 different startups, one of them being Hims, which is a multi-billion dollar company. But the more interesting person is this guy named Josh Kushner. Kushner, his brother, everyone might know as Jared Kushner. He's the guy who was on Trump's cabinet. Josh Kushner is married to this model. What's her name? Karlie Kloss, I think. So he's like, has quite a fascinating lifestyle or a fascinating life. But he started a small fund. He was born into a wealthy family, so he had money early on. Invested $400,000 into Instagram, made a significant sum from that, and then has since not invested in companies through his fund, but really started them. And one of them, or he has two of them. One is Oscar, which just went public, and his stake in that is 1.2. The other one is Cadre, Cadre, I think it's called, which is a rich person's investment platform. But what do you think? And the reason I brought this up is because you kind of had that experience a little bit. Like your, uh, Bebo was kind of a startup studio. Do you like this model of starting companies and operating them, but doing more than one at a time? Or do you think that just passively investing is better?
Um, all right. So I, so the thing we did, which was, it was called Monkey Inferno. Bebo was one of the companies inside. Monkey Inferno was definitely a studio. And in fact, before Jack started Atomic, um, we met up in our office and he said, hey, I'm thinking about doing this studio. Tell me everything you've, you've learned good and bad about running the studio so I can kind of learn from those mistakes. And I told him, hey, like, here's what I think is great, here's some of the things I think that, that trip us up. Um, if I was you starting from scratch, here's how I would do it. And then he's, you know, he took that and he took—
wait, so Jack came to you?
Yeah, he came to our office and we hung out and we, we brainstormed and I kind of told him, look, these are the strengths and weaknesses of the studio model, how are you planning to do it? And to his credit, he already, what he had as an idea coming in was already the exact advice I was recommending. And so it's not like, oh, I told him you should do X, Y, Z, then he went and did it. He was already planning to do it that way. But, but yeah, and at the time I was like, you know, good luck because very few studios, there are many, many studios. A studio is like, the reason studios happen is like successful entrepreneur wins, they take some of their lottery winnings, and they're like, all right, fuck it, I'm going to do a studio this time because I can't pick one idea and I just want to do a bunch of shit. I want to do a bunch of cool things. And like, now I have my own money. I don't need other investors so much, or I can easily raise money from investors because I have this big reputation. And so you saw, you know, Garrett Camp, the co-founder of Uber, he starts a studio. Mark Pincus, the founder of Zynga, he starts a studio. Kevin Rose, you know, sold his company to Google. Then he starts a studio. Michael Birch does Bebo, sells it to AOL. He started the studio that I ran. Um, you know, there's a whole bunch of these guys that, that do this stuff and very few of them have success. Um, we didn't have any breakout wins. Um, Garrett Camp from Uber, he didn't win. Mark Pincus, he didn't win. Kevin Rose, he didn't win. So, so, you know, there was for a long time, there was literally zero like breakout winners from studios. And recently there's been a few that have worked. Atomic has had a few that have worked. Hims is like the big win for them. It's a Public company now, I believe, and, uh, multi, you know, a multi-billion dollar win that they incubated in their studio. Um, then there's, uh, the Bark, uh, BarkBox guys. So they're, I think they're, their studio is called PreHype. So they, they, you know, they took BarkBox, uh, public and, um, they've done very well. And I think they also have, uh, Ro, which is a competitor to him. So now there's been a few, like there's somebody got on the scoreboard, so it definitely can work. I would say the odds are that studios don't—
And then this guy Thrive.
And now Thrive, yeah, Thrive with Oscar going public is great. And so I would say the odds are still, you know, it's just like startups where startups, 90% of startups, you know, fail. Similar, similar odds with the studio. It's not like you get that much better. I would say a couple things, super fun to do because who wouldn't want this? It's like an entrepreneur's playground. You get to go to work, dream up ideas. You have a bunch of teams that are building them all in parallel. In theory, you're killing the losers and you're doubling down on the winners. And, you know, you're just being super creative every day. So it's like the dream job. Then does it— do you actually increase your odds of success? On one hand, yes, because you're getting multiple shots on goal. You're not— you don't have all your eggs in one basket with one idea. The second thing is that you're learning pretty rapidly. So you're learning from all these different reps, these different attempts you're doing, and you're keeping the team together. So like when a team, even if you fail, the team retains those learnings and just applies it to the next project right away. Whereas in a normal startup, if you fail, it's like everybody goes and gets a job for 2 years because now you're, you know, you just did this thing for 3 years, it didn't work, you're in debt, you need to go make some money. And so typically the team breaks up and goes and does something else. In this case, the team sticks together, the learnings are retained. So that's what's good. The bad part, which I think is what you're going to focus on, the big but of this whole model that I think is what makes it not a great idea. If you, if you're, if you're optimizing for success, I don't think this is the best way, is, uh, you're not focused because you have multiple ideas. And, you know, one of the benefits of, one of the key things in life is, is focus and laser focus on, on making something successful. And the second thing, which is kind of related to that, is like shiny object syndrome. Every project goes through like kind of periods of plateaus. Like I remember with The Hustle, you started off you know, with the events, and then you started the blog. And then like there was a moment, I remember our conversations where you were like, the blogs are bringing in a bunch of traffic, but I don't think this is working. I need to figure out something else. What if I did this daily email newsletter, right? You were like trying to figure out what do we do? Is it video? Is it this newsletter? What is it? And in a studio, when that happens, when you plateau or things just stop working or growth stalls, it's super easy to instead of being like, fuck, how do we find a way out of this? How do we try to make this work? It's really easy to be like, hey, what about that other idea that we're doing? Like, that one's still super exciting. It's not in a plateau right now. So you just like unconsciously start to spend more energy on the thing that's not stuck. Because like, who wants to stay in a fucking stuck on a stuck project? But as an entrepreneur, you have no choice. You told everybody, you told your investors, you told your team, you told your mom, I am building this and you have to find a way. And that's like the most valuable thing a startup has is that like, the, the, the do or die situation for a startup. And I think a studio takes away the do or die mentality because it's like, do this or do that or do that or do the other thing. And so you have all these options and those options actually, um, they actually take away your biggest asset as a startup. So I would say if you're going for fun, studios are dope. If you're going for success, I think that going like dabbling and picking a startup to go all in on is a better model than trying to run a studio with multiple projects.
And that's actually what I remember my— what I spoke to you about years ago when we started hanging out at Monkey Inferno is, I don't remember which one it was, Blab, Bebo, one of them. Like, it seemed pretty good. But like every business, there were some problems where you're like, people are coming, but we're getting hacked, or I don't remember what the problem was. Yeah. Or it was like, kind of good, kind of bad. I was like, dude, just like, just figure it out. And I actually thought that you were at— for part of me was like, oh, Sean's at this great place where he can do anything. He makes money and he has an unlimited budget. He can do anything. I actually think that that hurt a lot of times and it would've been a little bit better if it was like, look, if you don't figure this out, you're fucked. You're broke.
Right. Yeah, exactly. I think you called it for what it was like really early on. You were like, dude, I think, having everything, right? We had like a fucking private chef. We had the dopest office. We had all the engineers we needed. We had unlimited funding and runway. We could just keep going. And you were like, dude, it's going to make you soft. Like, don't you know, having all this shit is like not good for you. I remember you like pointing that out really early on. And then also like, just pick one of these and stick to it. Don't like, don't get distracted by having a lab or a studio where you have all these different things going on. And you're just dividing up your attention 20% here, 30% here, 10% here. And like, what if you just put 120% into like the one and you just found a way, you know, you, I remember you saying that stuff.
But it seems really fun. It is. And when it works, it's like, oh, wow, it worked. And it's fun. And that's what I'm seeing when I, when I, when I, I mean, I don't know these guys, but from an outside perspective, and I'm sure it sucks on on the inside, just like everything else has pros and cons. It seems quite fun. It seems really exciting to be able to win big and have multiple shots on target. It seems really interesting.
So one thing, by the way, one thing I think Atomic did good, that they changed the model. So he was— so I told him, I was like, I told him about these problems. And he was like, yeah, we're gonna do it differently. He's like, we're gonna only do one project at a time. That team is do or die on that project. He goes, they have 9 months to raise their Series A. If they can't raise their Series A in 9 months, they're out. Like, you're out of a job. And he's like, in reality, we're going to keep the good people. We're going to offer them a job on the next one. But like, it's not a given that like, oh, if this doesn't work, no problem. Like, just work on this other thing that we're doing. And he's like, that's going to have urgency. That's going to have focus. They're not going to split their time between different projects. And he's like, I'm going to be the CEO of of the project, you know, like that we're doing. And the other big thing was they weren't going after consumer. Like we were doing consumer and like social apps, which are, you know, lower odds of hitting the lottery. Whereas he was like, yeah, consumer's super hard. You know, it's just really hard to, you know, the consumers are fickle. We're going to do B2B. And so they started doing only B2B stuff for a long time. And Hims was the one kind of like consumer hit that they've had. Um, the other things that they've had that have done okay are B2B companies, which I think are a smarter model to do. Uh, eFounders is a great example of one of that that's working in Europe where it's like they only do SaaS and they really focus on, um, problems that they know that are in the B2B space because their own companies have this problem. So then they build a product for that and they build it, make a company out of it. They've had big hits like Front came out of that and different things like that.
Well, Rocket Internet does it as well, and they're, they have their tens of billions of dollars with the value that they've created. But the best example of this, my favorite actually, and I just realized this as we were talking, is Kevin Ryan. Kevin Ryan is someone who I admire. And I joke that we kind of look like— he's probably 30 years older than me, but I tease that we like— he kind of looks like I look like him. We kind of look alike. And he was the 20th employee at— I forget what it was called, but it was DoubleClick. It was called DoubleClick and it was sold to Google for multi-billions. Eventually became Google AdWords and AdSense. He told me that he made around $20 million when he sold it, which is definitely a shit ton of money. Then using that, him and this guy named Dwight would invest $300,000 and give a company 6 months to show traction. The outcome of their companies, there's a couple losers and a couple winners, probably a lot more losers than winners. But the first one is MongoDB. Which is currently publicly traded at a $21 billion valuation. The second one is Business Insider, which is probably a billion. It was sold for $500 million, probably worth a lot more now. Uh, the third one is Zola, which prior to the pandemic was doing hundreds of millions of dollars in sales. And I think that there's like 4 or 5 more that have been hits. Right. And he told me, I actually called him and I emailed them like every month for like 3 years to try and get him to talk to me. And eventually he let me fly out there and meet with him.. And he told me that all he does is him and Dwight, I mean, they're wealthy, right? So they can do this, but they just come up with an idea and they just get a piece of paper and a pencil and they write out the math and they're like, "Oh, that's kind of interesting. All right, let's try to find someone to do it and we'll give them $300K to do it." Now, this sounds like a very simple process and it might be simple, but it's still quite hard to pull off, but they've done it. And it's called Silicon Alley Insider is the name of his thing. And you'll have to look this guy up. It's really interesting.
I think that's Jason Calacanis's thing. That's not, that's not those guys.
No, it's, it's, they have the same name.
Oh, okay, interesting.
Um, it's, it's called, uh, wait, is it called Silicon Alley Insider? Uh, it's called, uh, AlleyCorp. Sorry, you're right, it's called AlleyCorp.
So, so I think there's a Business Insider was called Silicon Alley Insider. Interesting. So, so I think, um, So, so there's— it's just like accelerators, right? There's like a million accelerators in the world. Every college has one. Every little city has one. And then you have Y Combinator that just like kicks ass. And, you know, so Y Combinator is the best.
Sorry to interrupt.
That's a bunch of hits. So basically you have like, it's not that is this model good or bad? It's like, how do you execute it and who are the people involved in it? So like Y Combinator is an accelerator that is probably created, you know, I don't know, $100 billion worth of value now out of the companies that have come out of it. Easily over $100 billion, actually. Airbnb alone is $100 billion. So Y Combinator is like the best. And then you have Techstars and then you have like all these other accelerators that like have never had a hit. And so are accelerator models good or bad? Like if you said it was bad, you'd be wrong because Y Combinator is a hit. But if you said it's just great and you can repeatedly make success using this model, no, that's not true. I think the same is true for studios and everyone is different because you have to make a bunch of choices. It's like, for example, are you going to do multiple ideas at once or are you going to do one at a time? Are you going to have shared staff working across projects? Are you going to have staff dedicated to their one and they live and die with the one? Are you going to fund it indefinitely or are you going to give it a 6-month or 9-month time period to get to some traction and raise money from external investors? Or are you just going to let it run forever? Do you come up with the ideas, or do you invite in founders and they spend some time coming up with the idea, like an EIR, right? There's all these different differences that, like, there's all these, like, little choices that will lead to a totally different outcome. It sounds like in that case they come up with the ideas and then they find an operator. In Jack's case, he came up with ideas and he was the initial operator, and then he hires a CEO. Um, you know, in Expo's case, they bring in an operator and they— the operator comes up with the idea. And so there's all these different versions of it. And, um, you know, a lot of it just depends on both luck as well as who's involved. Like, truly great entrepreneurs and investors can have success where somebody else copying the same model that they have won't be able to pull it off because they don't have the right judgment. And that's why I think I failed. I think I didn't have the same judgment that these guys who have had success, like, with their, with their model. I think they were better at playing that game than I was.
It also helps to be wealthy, I think, and be able to write, uh, $10,000 to $20,000, $300,000 checks and have the time to do it. And so I don't want to dismiss that.
But a lot of them raise money. Like Jack, he raised money. He raised, uh, I don't know, like $100 million or something from Andreessen Horowitz and others to fund his lab, even though he himself was like, you know, you know, doing super well. He had sold the company to eBay. He was like crushing it at PayPal or whatever, like eBay when he was there. You know, he sold his company for $75 million when he was 24.
Well, I'm not just— I'm not dismissing any of their skill. I'm just saying this is definitely like a— after you get your hit, it's a lot easier. I'm not dismissing that at all. It's like, it's a lot easier to become a good golfer if you have some money to afford fancy clubs and a membership.
And there's a bunch of people trying to do this that don't have that, right? There's a group, this guy Bobby, he listens to the podcast. He's doing this for creators. He's like, all right, We're gonna make a studio, we're gonna just build products for the creator economy. And I don't think they have a big track record or anything like that, but that's their focus. They're trying to do a studio for that.
I'm not saying it's impossible.
I know another group of guys, another group of guys that I'm bet— I would bet on that. Um, the main guy is this guy Kumar, and, uh, if you should follow him on Twitter, he's amazing. Uh, he's super interesting on Twitter and Facebook. Uh, his handle is, uh, Data Raid.
I know him. I know who he is.
And he's just like really into all these alternatives.
He's a weird guy.
Yeah, he's a weird dude, but he's really sharp and he's really out there, different type of thinker. And so he's like, he's like really into like, you know, the energy industry. And so he'll build like little products for the energy industry that you didn't even know like there was a need for. So I think this guy is going to do well because he knows where to sniff. He knows where to sniff out some money because he's looking at problems that the average kind of engineer in Silicon Valley or New York or L.A. They don't even know these problems exist. They don't even know these companies exist. And so, um, you know, he's— he was doing one, for example, like his friend is a lawyer and, uh, you know, there's like all these like little rule changes in like your local regulation or your local law. And he just made an alert system where it'll alert you about whenever this rule changes. And, uh, he can go get a bunch of lawyers to sign up for these email alerts. And it's a SaaS business that, you know, can do well. Or you know, energy prices when they, when they rise and fall, you know, how are you going to track that? How do you get— how do you build a database of that, that information? So he's got all these like really random ideas that I think the average entrepreneur doesn't really even know about those markets enough to like to know those problems. And therefore he finds kind of untapped opportunities.
Well, I think we should dive deep on this sometime, like even more. And I want to get Jack on here and I would love to get Kevin Ryan on here. Because I— this sounds cool. It definitely sounds like a rich guy's playground, and frankly, I want to do it.