This week on "Fund Stuff," join Andrew Pierno from XO Capital for a deep dive into the intricacies of building, buying, and scaling startups. Flying solo with a cameo from Danny, Andrew turns a monologue into an engaging dialogue, discussing everything from the XO community's dynamics to the nuanced motivations behind selecting a startup idea. They explore the critical junctures where entrepreneurs decide whether to persevere or pivot, offering insights into the delicate balance of commitment and strategic withdrawal. Amidst tax season's trials, Andrew shares candid thoughts on the bewildering ..read more

Andrew from XO Capital discusses common deal structures in business acquisitions, focusing on all-cash offers and escrow use. He highlights the challenges of using escrow.com, especially for software acquisitions, and details the process of asset transfer and payment release in escrow scenarios. Andrew explains their approach to small deals without escrow.com to save fees, based on trust, especially with U.S.-based parties. He then talks about seller financing, debunking exaggerated claims on social media, and outlining realistic terms like 80-90% cash upfront with 10-20% seller financing over ..read more

In our latest episode, Danny steps in for the October 2023 update (a bit overdue, but packed with insights). We discuss hitting our 5% month-over-month growth goal for the first time and review the performance of various companies in our portfolio, with most seeing growth except for Analytics. Danny delves into our plans for November and December, including a Udemy course launch, partnerships with prominent figures in the SEO space, and a growth experiment tracker to monitor our new initiatives. We also discuss our recent Google Search Console integration, product launches across our portfolio ..read more

"Journey to Success: Tales of Triumph and Challenge" Dive into the candid chronicles of entrepreneurial grit on "Journey to Success." Hosted by a seasoned entrepreneur with a knack for storytelling, this podcast delves into the highs and lows of building and scaling businesses. From a stark "Failure to Raise" capital to ingeniously creating the "Flip Fund," where business acquisition and swift scaling lead to rapid exits—our host shares it all. With a recent spotlight on the acquisition of Journey.io, a storytelling sales tool with a penchant for scale and customer love, listeners get an insid ..read more

In today's episode, Andrew from XO Capital dives deep into the ever-evolving investment thesis of the fund, giving listeners an insider's view on how the team approaches deal flow and capital allocation. Andrew starts off with the challenges of traditional venture-backed company building, emphasizing the power law distribution where a very few winners give outsized returns. The crux of the episode? XO Capital targets what the VC world might deem as 'failures'—companies that couldn't secure the next round of funding but are far from being bad businesses. Andrew argues that these companies often ..read more

In the September 2023 recap of XO, Danny discusses the theme of "spinning plates," emphasizing the company's focus on quality over quantity. The month was about taking baby steps to improve the quality of their portfolio companies, team, and customer experience. Financially, September was a mixed bag. While MRR was up for some products, net volume was generally down compared to August. Danny dives into the performance of individual portfolio companies, mentioning that each has its unique challenges and growth trajectories. Cold DM saw its first uptick in months, thanks to overcoming Twitter AP ..read more

This week, Danny is taking over with an in depth breakdown of our ownership of Growthbar over the first 90 days. It's been turbulent but appears to be stabilizing. Here's a teaser: Month 1 - We didn't change much. great month Month 2 - We removed forcing people to enter a credit card and nearly destroyed the business. Month 3 - Recovery   ..read more

In this episode of "Fund Stuff," Andrew Pierno pulls insights from an unlikely source—pickleball—to shed light on the grinding nature of business. Even when your company isn't making TechCrunch headlines or going viral on Product Hunt, Andrew argues that the real work happens during what he calls "peace time." It's all about sticking to the grind, focusing on metrics that matter, and never letting off the gas. Key Takeaways: Facing Equally Skilled Players: Just like in pickleball, your business often competes with others who have no obvious weaknesses. The reality is you're in for a grind ..read more

"The Real Art of Negotiating Micro SaaS Acquisitions" In this episode, Andrew Pierno from XO Capital offers an insider’s look at how to navigate the complex waters of acquiring a micro SaaS business. Drawing from his extensive experience, Andrew stresses the importance of simplicity and clarity in negotiations. Here are some key takeaways: 1️⃣ Price & Payback: Stick to your guns on the price and aim for a 2-year payback period. A firm price sets the stage for straightforward negotiations. 2️⃣ Deal Speed: If negotiations are dragging, take it as a red flag. Over-complication is not only a h ..read more

Andrew dives deep into the concept of 'corporate versioning,' asking why companies don't iterate on themselves like they do their products. He also shares some cautionary tales from recent acquisitions that defy conventional business wisdom. Want to know what happened when they removed a mandatory credit card requirement for a free trial? Spoiler alert: it wasn't pretty. Andrew also touches on his company's growth, internal changes, and the importance of staying profitable. With key insights into developing a company playbook, implementing culture, and raising over $500,000 through a flip fund ..read more