Patience Pays Off, Going the Distance, How to Operate, and Highlights from 2022

Social Leverage Letter | Issue #70

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3 articles, 2 podcasts, and 1 video. 

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HAPPY NEW YEAR!

READING 

Patience is a difficult but necessary quality to cultivate in order to achieve long-term success. It requires determination, a team, openness, trust, gratitude, and humility. It is hard because it is hard, and because our brains are wired to favor the present and short-term. Patience requires endurance against obstacles, and the ability to withstand hardship and under-performance. It also requires the ability to resist the temptation to prioritize action over all else.

The number of new unicorns created globally has been more than cut in half in 2022 due to a difficult investment climate caused by persistently high inflation, which is expected to worsen in 2023. According to data compiled by Tracxn Technologies and Moneycontrol, just 244 new unicorns were created globally this year.

Constellation Software is a publicly-traded software holding company that was started in 1995 with $15 million of outside investment. The company has grown rapidly since 2003, with revenues increasing from $80 million to more than $5 billion, and acquisitions increasing revenue by 33%. The company operates with a team of 30-40 people across 5 operating segments, and is an example of a different path to creating a generational software business.

LISTENING

Going the Distance in Fashology with DSTNC Co-Founder Nave Avimor (EP.234)

Listen to this episode from Panic with Friends - Howard Lindzon on Spotify. I’m always excited to interview a portfolio company founder on Panic with Friends, so I’m doubly excited to have Nave Avimor, co-founder of DSTNC (Social Leverage Fund IV) on today’s show. The company is at the forefront of fashion and technology, or as I like to call it, ‘Fashology’ – for the modern cyclist. DSNTC (pronounced 'distance' - vowels removed) is a first of its kind global marketplace and content destination, curating the largest selection of high-end brands and performance products from around the world. Nave and the team have done a phenomenal job over the last eight months or so, and with the site launched and a seed round raised, this is the right time to have him on. Not everything is about unicorns, and I finally get to dabble in fashology, something I’ve been talking about since the Oakley days. I’ve been able to invest and really try building a full-on Lifestyle brand without the hassle of the day-to-day. Nave’s traveled the world, knows the sport, and his partner has an eye for culture. I hope you enjoy our conversation as much as I did.  Guest - Nave Avimor, Co-Founder & CPO at Dstnc  howardlindzon.com, dstnc.com  Twitter: @howardlindzon, @dstnc, @naveavimor, @PanicwFriends, @knutjensen  linkedin.com/in/naveavimor #fintech #invest #investment #venturecapital #stockmarket #finance  Show Notes: Introduction (00:39) Welcome Nave (09:24) Meaning of Avimor (09:44) Getting into Cycling (10:14) Moving to China (12:22) Living in Shanghai (13:08) Israel Cycling Academy (14:38) Optimal cycling physique (17:14) Building DSTNC (20:53) Bike shop business model (26:45) Gravel bike v. Road bike (28:42) Disc brakes (30:53) A revolution in cycling is happening (32:37) Discovering the best gear (33:45) Close-calls and accidents (39:25) Beyond clothes - exotic bike parts (41:32) Rise of e-Biking (42:38) Wrapping up (43:53) Closing thoughts (44:36)

Kat Cole – How to Operate: Lessons in Brand, Distribution, and Leadership - [Invest Like the Best, EP.184]

Listen to this episode from Invest Like the Best with Patrick O'Shaughnessy on Spotify. My guest today is Kat Cole, the COO and president of North America for Focus Brands, which owns famous companies like Cinnabon, Carvel, Jamba, and more. Kat’s story and career trajectory are remarkable, as are the lessons she’s picked up along the way which she shares with us all in this conversation. We discuss negotiation, distribution, brand building, brand extension strategies, and leadership. I always enjoy having a true operator on the show, so I was very excited to discover Kat and her thinking. Please enjoy this great conversation.   This week’s episode is sponsored by Bottomless. Bottomless is a smart coffee subscription which automatically re-orders coffee for you based on your consumption habits.  Bottomless is offering one month and your second bag of coffee for free at bottomless.com/patrick.   For more episodes go to InvestorFieldGuide.com/podcast. Sign up for the book club and new email newsletter called “Inside the Episode” at InvestorFieldGuide.com/bookclub. Follow Patrick on Twitter at @patrick_oshag   Show Notes (2:13) – (First question) – Her call to prayer             (2:16) – Kat Cole on Pomp’s podcast (5:20) – Her positivity lens (7:59) – Applying that positivity lens in business (13:34) – How to show positivity in early interactions with someone (17:37) – Overview of Kat’s career (21:03) – Lessons learned building brands (27:11) – Changing relevance or differentiation within a brand (32:34) – Keeping a brands dominant position in people’s minds (36:00) – The power of franchising and shared commitment (40:50) – How her experience makes her a better investor (42:55) – Lessons around distribution (46:24) – Effectively negotiating and getting your fair share in a partnership (52:49) – Attributes of a brand that get Kat most excited (56:34) – Transferring her brand lessons to software and tech companies (59:09) – Biggest lessons in leadership she’s learned             (1:04:13) – Checking In: the power of intention, reflection, and action to be your best and help others do the same (1:05:18) – Most effective questions in her check-ins (1:06:29) – Personal check-ins vs professional check-ins (1:10:44) – Balancing gratitude and ambition (1:14:37) – The kindest thing anyone has done for Kat   Learn More For more episodes go to InvestorFieldGuide.com/podcast. Sign up for the book club and new email newsletter called “Inside the Episode” at InvestorFieldGuide.com/bookclub. Follow Patrick on Twitter at @patrick_oshag

WATCHING

HIGHLIGHTS FROM 2022

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Affiliate Disclosure: Social Leverage Group, LLC ("SLG"), Social Leverage Capital Fund I, LP ("SLC"), Social Leverage Capital Fund II, LP ("SLCII"), Social Leverage Capital Fund III, LP ("SLCIII") and Social Leverage Capital Fund IV, LP ("SLCIV") are all distinct entities from Social Leverage, LLC ("SL"). Social Leverage is not a registered investment advisor. SLC, SLCII, SLCIII, SLCIV, SLG and SL have used the logo and branding of Social Leverage with the permission of Social Leverage Group, LLC.