Every argument clarity score on this site is built from rows on this page. Each
question and answer was assessed with names hidden, the host's own answers included, on
four things from 1 to 5:
directness (does it answer the question asked), coherence (do the ideas follow),
precision (concrete details and clear references), compression (says a lot per word). The weighted
mix (30/30/25/15) is the exchange score. A person's published score averages their exchange
scores on raw tape only, at least 8 of them, shrunk toward the cohort mean.
Full method →
Answered produced feed
D 5 · C 5 · P 4 · Cm 4 4.60
Q Where'd you get the money from? It's not easy to come by. Is that just money?
A Private investors. Yeah. So that was the funny thing. So yeah, to take you down the history here. So, you know, I started building these micro portfolios for investors and, um, and people, you know, what people saw from my early experiences buying online businesses was that I was excited about it. And so there were a lot of people I know who were like, well, you know, like, I don't, I don't understand what you do. I don't know if I'll ever understand it, but, um, uh, here's, you know, 50,000 dollars or something, right? Will you place capital for me So that I can participate in this and your energy behind it and get some dividends off of it. And so, uh, so I started building portfolios to do just that.
AI assessment note: “Private investors. Yeah. So that was the funny thing.”
Answered produced feed
D 5 · C 4 · P 4 · Cm 4 4.30
Q About a dozen. Okay, 12 people. This is great. Are you planning to raise more capital for your fund to go do more deals?
A Yeah, we're doing that right now. So we are actually, And this is, this is part of the, you know, like the pick rail story as an example. We are in the process of churning the portfolio. Uh, we, um, are looking at market. Um, what I've heard over the past, really in the past six months, it feels like everyone's going up market at the same time. Um, so our investing thesis today is that, uh, we locate by operate and grow B to B SAS businesses that are producing between a million and a half and seven million, uh, EBITDA at time of acquisition. Um, we trade on a multiple of EBITDA and, uh, we, Uh, we're looking at four and a half to six and a half range.
AI assessment note: “Yeah, we're doing that right now.”
Answered produced feed
D 4 · C 4 · P 3 · Cm 3 3.60
Q Interesting. Okay, so what, keep going forward with PicRail. What happened next?
A Yeah, so what happened was, so we had some really, we realized some very quick gains on PicRail. We had 46%, uh, year-on-year growth first year. Um, and again, like, you know, what I'm seeing in the SaaS space is that, uh, founders tend to be tech savvy, but not business savvy, and that's not a slight against any founders. It's just the way founders in this space are, right? So, uh, SaaS founders are very good at identifying a need in the marketplace, um, building that out, taking a product to market, going through proof of concept, and building a small but loyal customer base. And then, uh, and for the most part, I know that you've, you've had people on, on your show that are enormously successful in this space and would challenge this, but, um, but most of the SaaS founders that I meet with that are selling their businesses, um, are, are really widget focused and they have no interest in building out like a sales team. Um, and, and they'll build some marketing funnels, but it's really not their thing.
AI assessment note: “we realized some very quick gains on PicRail. We had 46%, uh, year-on-year growth”
Redirected produced feed
D 2 · C 4 · P 4 · Cm 3 3.25
Q And what do you, how do you reinvest profits? You take it personally as dividends and invest in real estate or what do you do with it?
A Um, so we have, you know, we've got a pool of investors. So actually let me, let me share another critical piece of the story. So about two and a half years ago, um, I had an epiphany that, uh, the only place I felt comfortable placing investor capital is SAS. And the reason for that is the recurring revenue component and the stickiness. Um, and to me that equals runway. So, uh, what I like about SAS and what I like about SAS for my investors is that if there are changes in the marketplace or changes in technology or changes in the competitive landscape, we have time to react to that. You know, it's not, you know, we're not beholden to Google and Facebook and Amazon to, to, to pay us. So the risk of having our revenue dry up overnight is very, very low. And if there are changes, Uh, that, you know, they're effectively threats to the business or new competition in the marketplace. We have time to react to that. Um, so, and then, and really, you know, my, you know, I've got more than 20 years marketing experience and a lot of that was spent B to B marketing. Um, and so to me, B to B SaaS is just, it's the right fit for me. And I understand that space well enough to, to, you know, fairly represent my investors.
AI assessment note: “let me share another critical piece of the story... placing investor capital is SAS”
