Brandon Gayle

Private Equity Can't Dunk. But they know a thing or two about Pricing and Value Capture rules! Dunking in basketball isn't a requirement to score points. But it is fun. And entertaining! Without fans, the NBA would just be a bunch of tall people [I was going to say blokes. But you won't cancel me that easily!] bouncing a 29 inch ball around! The dunking is performative fun. That's what people pay to see! In many ways, SaaS is a great product. But it's a Great Product - with Bad Pricing! And the metrics we've chosen often make for performative fun! The word 'bad' always sounds horrible. Harsh. But if you're selling a great product that doesn't make net profits, then the problems are, at least, partly rooted in pricing. Now, this is where the trolling will start. What about! What 'aboutery' will abound! What about LTV! What about FCF! What about Rule of 40! These are all well and good. They show some measure of progress. But ask yourself this: "What will Private Equity bros do with SaaS? [..see, I'm more confident here, as it's mostly blokes!] Will there be a performance? Will they sell tickets? Will they dunk? No! They'll just use their tried and tested rules. The Rule of 9! ...Rule of 9! "You just made that up!" There are hundreds of VC and Product Manager podcasts. But how many Private Equity? A few. Maybe a handful. And even less, that explains one of their simple rules. The Secret Rule of 9 --------------------- 6% - Price Revenue Growth + 3% - New/Existing Customer Revenue --------------------------- 9% Growth annually. Simples. And we all know the rule of 72. The rule of 9 will have them doubling revenue in 8 years. Rules. Rules. Way back when, we were taught in school that if you don't follow rules you get caned. Schools no longer do that anymore. But some PE boys never forgot the lessons! Private Equity is coming for SaaS. And they'll be bringing their 'Rule of 9' pricing playbook! #Pricing #Monetization

9

Soccer and Early-Stage Startups My youngest nephew was in Austin this week for a showcase soccer tournament. He is a junior in high school and is riding the roller coaster of recruiting to D1 soccer programs. He knows what he wants - mostly a coaching staff, team and culture that is positive but will challenge him to improve every day; a university where he can learn/grow; and, a tuition and scholarship package that won't put him drowning in student debt for the next 20 years. The highs on this roller coaster are REALLY high and the lows are REALLY low - and they happen within seconds with a final decision not revealing itself for months. The worst part about this is the coaches that seem incredibly interested and then ghost. Then come back and act like they were there all along. I keep thinking about how similar this is to fundraising...or the entrepreneurial journey overall. I have three portfolio companies right now going through life or death scenarios...fighting for every chance. Two of the companies are partnering with large enterprises and working for multi-million dollar expansions - ones that can make or break the company. One is fundraising and running out of cash, trying to extend runway in every way possible, getting good traction but has still not cracked the code on a fully scalable model. All three are experiencing every aspect of this roller coaster - including the incredibly frustrating experience of ghosting (from customers and investors). It takes real grit to face the roller coaster every day and keep saying "I am willing to work harder and do more than anyone else to succeed". To appreciate but not take for granted the highs and to find the positives and learning in each one of the lows. Especially in today's environment, this is the attitude that it takes to win. This is the attitude that it takes to solve that problem, realize your vision and get to the next level--in soccer, in tech, in life.

35

5 Comments

The Future of Sports: The New Emerging Technologies That Are Disrupting The World Of Sports In a recent interview, I talk about the sports tech he's most excited about. Spoiler alert, I talk about OSDB SPORTS, a Solyco Capital portfolio company. "OSDB founded by co-founders Aaron Rodgers & Ryan Rottman saw a gap in the marketplace and thus created OSDB in 2020. The Online Sports Database consolidates all sports sites and aggregates that info and houses it under one roof..... The beautiful thing about this new sports tech offering is its giving fans, brands and gamblers alike the ability to gain access to athletes and their valuable information that was previously unattainable." #Venturecapital #OSDB #sportsinvestment

13

1 Comment

An incredible deep dive from Nathan M. into the cultural and structural issues that are plaguing Boeing and how they got to where they are today. This article should be turned into a business school case study it's that good. And many of these issues aren't unique to Boeing. The focus on financial engineering over actual engineering is an issue at play in many scaled aerospace and defense companies. A definite must-read! https://lnkd.in/gkdpF2tM

21

2 Comments

As a General Manager, you have multiple tools in your toolkit to Build a Sustainable Championship Team. One of those tools is active engagement at the Top End of Free Agency. In the 2021 Off-Season, the Toronto Blue Jays did just that by Signing George Springer to a 6 Year Deal for $150M. That deal ensures Springer's Presence on the Blue Jays payroll through his age 37 Season. Unfortunately for the Blue Jays, Springer is coming off a poor year where he hit just .220 and lost his spot as the team's leadoff hitter. The Jays are coming off a season where they ranked 23rd in Offense, and despite the possibility of Internal Improvement, they are likely to end next season with more what ifs than certainty. So what do they do about Springer? Option #1: The Blue Jays have the option of Buying Out Springer and Moving On from his Contract. This doesn't seem like a Good Idea keeping in mind Springer did hit 19 Home Runs. Option #2: The Blue Jays have the option of Trading Springer. Keeping in mind Springer's Contract Size and Term, it is unlikely that the Blue Jays will get a return. In fact they would probably have to pay part of that contract. This approach though would help them save money and begin the process of Building for the Future. Option #3: Internal Improvement. While it is natural for Players to Decline as they get older, it's not impossible for Springer to have a bounce back season where he improves his approach, his decision-making, and his execution. This is what Jays GM Ross Atkins had to say about Springer. “We’re not seeing anything concerning in his swing, from swing metrics to scout’s eyes, to coaches’ eyes. Cognitively, we’re not concerned. “I think George is still showing all the physical traits (of being an elite hitter),” Atkins said at his post-season media availability last week. Option #4: Build a Roster and Construct a Lineup around Springer's Expected Decline. Do you go into 2025 with Springer as Your Leadoff Hitter? If so, what rules and metrics will Govern that he stays in that position. If his role in that position becomes untenable, Do the Jays have alternatives? Option #5: The Blue Jays like all Franchises need to develop a Philosophy and Approach around different subjects related to Team Building. This isn't so much an option as it is an important task. While the Toronto Blue Jays are a Big Market Team, can they afford to give Players Long-Term Contracts into the Second Half of Their Thirties? In my opinion there are only a Handful of Teams that can afford such mistakes and the Blue Jays aren't one of them. Option #6: The Blue Jays need to make a determination on the Franchise's Direction. Vladimir Guerrero Jr and Bo Bichette are going to enter Free Agency after this Season. While Guerrero Jr has publicly stated his willingness to stay, it is likely that Bichette wants to leave Toronto.... What about Management Incentives? Are they aligned? #MLB #TorontoBlueJays #TeamBuilding Sportsology Group

1

A blistering funding run has me revisiting a question I posed after Q3's VC funding data came out. Was Austin's modest $1.6B in H1 2024 signaling a slowdown or was Q3's $1B surge the real indicator? November's explosive activity gives us our answer: 💥Tricentis: $1.33B raise ($4.5B valuation) New 🦄 💥FireFly Aerospace: $175M ($2B valuation) 💥Ladder: $105M 💥Halcyon AI: $100M ($1B valuation) New 🦄 With these mega-rounds, Q4 is already approaching $2B with several weeks remaining. I am hearing about more significant rounds in the pipeline, though I don’t know whether they will announce in Dec or early '25. What a difference a quarter makes! Austin sits at ~$4B YTD, knocking at the door of 2023's $4.2B. The first half numbers now look more like timing quirks than a true slowdown. Our sector diversity (seen here in AI, Space, Bio & Health and Cybersecurity) reinforces what Peter Walker's analysis shows below; Austin's strength comes from our broad foundation & tech convergence. As Peter notes in his original post, "Austin is good in many areas, great in few." I see this as a strength, not a weakness (not implying that he was making this implication either). With ATX consistently ranking somewhere between 5th-7th in funding, and having strong momentum metrics, we have a bright future ahead. What's Next?

28

8 Comments

In 2023, sports tech racked up over $37 billion in M&A and financing deals, according to Drake Star. That’s a ton of momentum, especially with 790 private financing deals—up from 752 last year—driven mainly by early-stage companies. Sure, the competition for funding is tougher now than it was a few years back, but that hasn’t stopped exciting new ventures from popping up. Just look at Breanna Stewart and Napheesa Collier's 3-on-3 league, Unrivaled, Tiger Woods and Rory McIlroy's TMRW Sports, and the sports-betting content platform SoBet. With so many fresh ideas in play, the sports industry is set for an exciting future! #VentureCapital #Startup #SportsInvestments

15

1 Comment

🎙 My interview with Mark Shoberg on lessons learned from University of Texas ($70B) and Stanford Endowment ($40B) and how Mark is applying those lessons at Capital Creek Partners.   #VentureCapital #VC #Startups #OpenLP Turpentine 10X Capital Link to Podcast in Comments Below 👇

38

4 Comments

After a whirlwind two decades of a corporate career – which has spanned a traditional management consulting firm, a Fortune 500 toy company, a world class entertainment agency, and a growth equity fund, I’m excited to officially share that I’m striking out on my own with Shruti Sehgal. Together, we’re proud to launch The Moonshot Company – a new kind of strategic consultancy, representing high-growth talent, brands, and investors looking to accelerate their cultural and commercial success from a place of authenticity, creativity, and intent. The Moonshot Company will specialize in integrated brand and growth strategies–culled from our prior executive careers in consumer, entertainment, media, finance, politics, and PR. Throughout my professional life, I often found myself at the center of consumer industries undergoing a major landscape shift. Shifting consumer behavior, the proliferation of social media, digitally-native consumption, and revamped business models have underpinned every business I have been fortunate to be a part of. Winter has always been coming. And it is through that lens that I learned a lot about myself as an executive. My curiosity has always found that change exhilarating - and I am particularly adept at spotting through lines and opportunity amidst a constant state of flux. Rapidly transforming industries don’t scare me, stagnation does. And yet, I have always felt a natural tension between building these industry-specific skills and the freedom to add my own interdisciplinary instincts and perspectives to bear, especially on someone else’s platform. But as the world has changed, so have I: this very tension I once thought frustrating is now a reason for being.  If I could go back in time, I would tell my younger self that my own diverse range of experiences and multicultural consumer lens always has been, and will always be, as instructive to my success and growth as anything else. The future of business and culture requires differentiated voices and leaders who can bring a much wider set of skills and a unique blend of deeply-lived experiences – both personal and professional – to achieve transformational outcomes for clients, and this is the foundational vision of The Moonshot Company. Simply put: this platform didn't exist, so we built it. As mothers, former senior executives, culture-obsessed consumers, and South Asian women – Shruti and I are thrilled to put our skills, networks, and novel strategies to work for clients who share our values, and whom we feel uniquely compelled to deliver Moonshot-level results for. If our vision and founder story resonates with you, please reach out. And as we embark on this new journey, I’d love to hear more about your own Moonshot below. 🚀 💫

214

46 Comments

What's our "WHY" at Champion Venture Partners? 1. Access! Providing athletes and athletes adjacent professionals access to the private alternatives sports asset class as a lot of their financial advisors don't play in them or even look at them. 2. Access! Providing the general public the opportunity to invest in the private alternatives sports asset class. How awesome is it that you can invest on the same terms as some of the biggest names in sports and entertainment! 3. Education! If you want to learn before you invest, we have programs and services available. 4. Partnerships! CVP are long term "forever partners" for our portfolio companies. Sure, we may have a few turn and burn VC & PE deals as that's the nature of the business, but our bread and butter is long term strategic growth value add no matter if it's a 5 year deal or a 30 year deal or a "forever deal".

7

What makes a good firm different from a great firm? Domain expertise. Take Champion Venture Partners (clearly I’m biased) for example. We all played at the highest levels of athletics, have invested in sport, and have ran/know THE BUSINESS of sport. Having that knowledge can get us into rooms with the top 1 percent of deal flow, produce high growth in our investments, and allows us to put our expertise to work to control the outcome. Protect the capital, control the process, control the outcome. That domain expertise is what makes us great. When looking at any firm… this will help you sort out who is great.

9

3 Comments

I remember buying my son Quinn Bredin the book soccernomics because he was always fascinated with research, valuations and PE. But I don't think he even knew where things were headed for the sporting industry. If you've been watching the valuations of sports teams lately you must be asking yourself why the meteorical rise? Did you know 20 of the 30 teams in the NBA have a PE connection. They are valued at an estimated $74.2B. As private equity investments in sports surge, driven by relaxed ownership rules and the hunt for cultural influence, digital transformation is at the forefront of this evolution. 🏀🏈⚽ At TechBlocks, we're pioneering the integration of cutting-edge technologies to transform fan engagement, optimize operations, and expand revenue streams in the sports industry. 🔍 **Data Analytics & AI**: Personalized fan experiences and strategic insights into player performance. 🌐 **Smart Stadiums & IoT**: Streamlined operations and enhanced security through connected devices. 📱 **Digital Platforms**: Innovative e-commerce, digital ticketing, and immersive AR/VR experiences. Our expertise helps sports organizations leverage these advancements to maximize returns and amplify cultural impact. As the landscape evolves into #nfts, #web3.0, #drm - digital rights management Techblocks is your partner in driving the digital revolution in sports. Ready to transform your gameplan? #DigitalTransformation #SportsTech #PrivateEquity #Techblocks

9

Misalignment on exit expectations can lead to value-destroying friction between CEOs, boards, and investors. Regular exit talks - at least once a year -help to: •  clarify strategic objectives and align exit timing •  assess the business’s real value and define a compromise timeline •  review investment agreements and explore alternative exit strategies Regular and proactive exit talks foster trust, prevent wrong decisions, and maximize value for all stakeholders. Practical considerations for such exit talks are included in this article.  #ExitStrategy #ExitReadiness #BoardLeadership #CorporateGovernance https://lnkd.in/e-jsaJA7

5

2 Comments

When change is the only the constant, the ability to be "in" the turbulence without letting it overtake you is vital for success. This guide from Wharton offers some excellent advice for navigating uncertainty by strategically managing workloads and priorities. It stresses the importance of maintaining a sustainable pace, making for breaks in the action and rest. Most notably, it suggests creating a list of "anti-goals" that encourages you identify what you can reasonably accomplish and avoid stretching yourself beyond your limits. #Leadership #ChangeManagement #Wellbeing

1

Read our latest article on Creating an Ownership Culture. This piece dives into how fostering a sense of ownership among employees can lead to remarkable outcomes for both the team and the organization. Here at KKR we are committed to providing ownership to all employees in all new controlled deals, building on recent successes of our Broad-Based Ownership Program. Whether you're a leader seeking to enhance your company's culture or an employee interested in the dynamics of workplace engagement, this article offers valuable perspectives. 👉 Read article here: https://lnkd.in/ejVc2ffd You can download the full report here: https://lnkd.in/ee_vT2rs #Leadership #BusinessCulture #EmployeeEngagement #KKR

28

1 Comment

🗞️ Breaking News: Red Ventures Selling CNET at a huge Loss❗️ Context: Red Ventures, the privately held digital media and marketing juggernaut based in Fort Mill, South Carolina, is selling CNET, one of the largest tech publishers on the web, to Ziff Davis for just $100 million. For context: Red Ventures bought CNET for approximately $500 million. Reason for the Sale: Total traffic to CNET has dropped by a staggering 50% over the last three years. The main driver behind this decline is a 68% drop in organic traffic (loss off Google rankings and traffic). Tables turned: This sale is a stunning turn of events for CNET, which once bought Ziff Davis (then a tech magazine firm) in a deal worth roughly $1.6 billion - more than two decades ago. Catch Up: - Ziff Davis trades publicly with a market value of $1.94 billion. The company lost about half of its marketcap over the course of the last 48 months. Strategic rationale: If Ziff Davis is able to ink a content licencing deal with Google, Bing/Microsoft or ChatGPT (or else e.g. X.AI) - like Reddit did - it might turn out to be a very smart deal …

5

1 Comment

Drop what your reading... You must check out this EPIC book about 3 Brazilians who bought Budweiser, Burger King and Kraft Heinz. Jorge Paulo Lemann is my new favorite under the radar G. Former pro tennis player and one time richest man in Brazil / Switzerland, also longtime friend of Sam Walton and Warren Buffett - Jorge started Garantia Bank in 1971 and sold it to Credit Suisse in ‘98. He built a culture and business playbook that he used on all his other companies. With proceeds he made from the bank he would make acquisitions of other companies so his partners wouldn’t spend the money. He first bought Lojas Americanos in 1982, turned it into one of Brazil’s largest retail stores. He then bought Brahma in 1989 which turned into AB InBev. In 2004 he started 3G Capital which bought Burger King (in one of the greatest PE deals of all time). My takeaways. Be obsessed with people. Jorge says “he’s not really a math guy and can’t really work a spread sheet”. He focused on hiring exceptional young talent and put them in positions of great power (like Alex Behring) and highly incentivize them. He only hired “Fanatics” that were obsessed and driven. He wanted to hire smart, hungry people. He knew he needed to always give them a big dream and a big mountain to climb or they would get bored. Be very focused and keep things simple. Focus on huge KPI’s. Concentrate the portfolio on one or two things. Do a few things very well. Enter a business and learn about it for a year. Then take dramatic moves to cut costs by 20% etc. They found out who was talented and kept them only. They were obsessed with cutting costs and creating meritocracy. They removed private planes and perks. They tore down office walls. They got rid of private dining rooms. They made salaries low and bonuses very high based on performance. Open plans, no hierarchy. The formula was Big Dream + People + Culture + Incentives. Jorge lived simply. Didn’t drink. Ate fish and salads. Kept money in the company. Was a total beast. Played tennis every day. Loved to spear fish. Copy the greats. When he bought a beer company he would learn from the best breweries. When he bought a retailer he befriended Sam Walton. He built an allstar team of mentors and teachers. Pillars of Garantia: Simplicity, Focus, Total dedication of the company and appreciation of the partnership above all things. Strong belief in the power of brand (Heinz, Burger King, Budweiser, etc). Continuous focus on single KPI and always moving towards a new goal. The whole company was focused on one goal and had signs hung up around the office. Very long term oriented. He always was focused on being an owner in businesses (ownership is key to wealth). Held businesses for many decades. He never sells. Long Duration. Huge concentration, owned one business at a time and focused on it. Keep the money in the business, instead of distributing profits, buy more businesses with it (think Buffett and Henry Singleton). Read it.

90

10 Comments

What’s interesting in the sports asset class, is that folks just automatically go to teams. Not only do they go to teams, but they think teams in the big 4, and then shut down. The comment from a buddy of mine today, who is a non accredited investor (who still does a lot in real estate)- “Yeah man it’s cool, it’s sexy, but I can’t write a check big enough to buy into like, an NBA team…” Bro. Really…. So, what did I say back? “Not with that attitude!” Besides a laugh, the reality is that’s exactly what people think the sport assets class is. Far from it. So what is it… I thought you’d never ask!!!… big breath…. ANNNDDD… CPG products, sports betting, NIL, sports tech, performance, clothing, recovery, memorabilia, fan experience, sports medicine, youth sports, sports gear, media, broadcasting, exchanges, e-sports, nutrition, wellness, sponsorship programs, fantasy sports, wearables, event mgmt, ticketing and access, leagues, real estate, sports medicine….. AAAANNNNDDD… teams. And much more. My thumbs hurt. The point is, it’s time for meaningful ownership in sports. So for my buddy, yeah, it is really cool, it is sexy… and you can totally write a check big enough to play. You just have to know where acredited and non acredited investors alike can invest and truly have meaningful ownership. Alts for all! ***Hint… Champion Venture Partners plays in all these. Come invest with us!

23

1 Comment