Sahil Bloom

A Venture Studio ignored venture and won. They built for Cashflow, not Venture. Here is how they did it: 20 years ago, an Atlanta-based venture studio operated with a unique approach. Instead of targeting VC or Private Equity, they  focused solely on cash-flow businesses like  professional service firms.  Here are 2 powerful lessons every studio can learn from their model: ------ 1. Funding Mechanism: A Line of Credit - Companies were funded via a line of credit, not equity capital.  - Portcos had to become cash flow neutral within 18 months—recycling capital quickly.  - Reduced funding needs = Faster scalability. This setup created discipline. Each month, portfolio founders had to justify every dollar spent. Want to hire McKinsey? Nope—do it internally.  Result? Founders learned to obsess over cash flow—an essential entrepreneurial muscle.  --- 2. Picking Founders Wisely  Successful founders were not running from bad employers. Instead, they were executives who always dreamed of building something but lacked the timing or resources earlier in life.  These proven leaders had:   - Strong networks   - Deep domain expertise   - Relentless drive to finally fulfill their vision  They thrived almost every time.  P.S. Which of these lessons resonates with you? 👇 Best, Matthew Burris

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Thinking a lot about how to help Buoyant Ventures portfolio companies stay focused amidst all the national turmoil. This also applies to me and my team. The pace of bad news is overwhelming and seemingly by design. Here are some thoughts. 🤿 Put your oxygen mask on first. Get good sleep, try to eat healthy, cut back on substances. Create and protect a healthy morning routine so you start the day grounded. You need to be clear-headed to be a good leader right now. More clear-headed than ever before. Your employees, investors, customers are counting on you to lead and are looking to you for motivation. They may be scared, reactive, depressed, spiraling. Show them strength and compassion. 🙏 Find something to be grateful for every day. Your health, your family, your friends, nature, music, books. Get outside for fresh air and sunshine and exercise. Find some joy every day. We are all lucky to be alive, and we don't know when our time is up. ✋🏼 Ask for help. Be brave enough to be vulnerable and ask for help from your team, family, investors, community. You will most likely be happy to learn that many people want to help and want you to succeed. Asking for help is a sign of strength and also a way to give those around you something positive to contribute. 🩷 Live your values. Many of us working on climate solutions are doing so because we care deeply about creating a future that is more sustainable, resilient, heathy than today, for future generations. I am disheartened by some firms and companies changing their missions and values to reflect current economic and political stresses. Climate change is the same urgent global crisis that it was last year, and the devastating effects of extreme natural disasters will not slow down just because we stopped talking about them or scrubbed data from federal websites or cancelled grants. In fact, the opposite will happen. Things will get worse faster. To my fellow VCs, entrepreneurs, and LPs, what other advice do you have for coping with this turmoil and uncertainty? Abe Yokell Joshua Posamentier Gabriel Kra Chanel Damphousse Ernst Theodor Sack Emily Kirsch Jane Woodward Clay Dumas Sierra Peterson Sarah Sclarsic Tom Steyer Dawn Lippert Andy Karsner Michael Bruce Brandon Middaugh Erika Basham Aaron R. Sanjeev Krishnan Lyndsey Boucherle Tom Ferguson Kareem Dabbagh Ph.D. Rick Zullo John Balbach Joe Aguilar Michelle Carr Nikhil Vadhavkar Eddie Obropta Yanzhi (Ann) Xu Patrick Finch Hudson Hollister 🏢 Christopher Naismith Matt Zimola Kate Sanner Forest Frizzell Rob Cirincione Saleh ElHattab Adam Rimmer Chris Gladwin

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Board observation rights often sound innocuous to founders, but it's important to remember your observers are generally allowed to speak at meetings. Most board decisions are made by consensus, so if your board is comprised of two founders and one investor director, you might think you have the investors outnumbered (and you'd be right in terms of governance), but if founders and investors disagree on something, it doesn't help that the investor director has observers in the room supporting that position (i.e. soft power). And don't forget to kick the observers out of the room and have the Company's lawyer present if you need to protect attorney-client privilege (e.g. discussing litigation or board member liability).

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The venture capital industry needs more transparency and ethical behavior around vendor relationships. Too many emerging managers are pressured into expensive contracts before they have commitments. This pattern must change for the health of our ecosystem. We are building a future where first time managers can focus on what matters - finding great companies and supporting visionary founders. Predatory vendor relationships damage trust and take resources away from positive impact investing. The solution starts with education and community support. Experienced managers must share their lessons learned about vendor relationships openly. New managers need a strong network of peers to validate vendor claims and pricing. Success in venture capital should come from backing transformative companies, not from exploiting new managers. We envision a future where vendor relationships are transparent, fair and aligned with fund success. This shift is already beginning. The next generation of venture capital will be built on trust and mutual support. By working together and sharing knowledge, we can create an ecosystem that lifts up ethical behavior. The time for change is now. We must protect new managers as they build vision-aligned firms. Their success in deploying capital to mission-driven companies matters too much to be diminished by predatory vendors. Together, we shall build a better way forward.

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Still taking meetings from venture capital associates? Paul Graham, founder of Y Combinator, puts it plainly: “If you get cold emailed by an associate at a VC firm, you shouldn’t meet even if you are in fundraising mode. Deals don’t happen that way.” Associates are a filter. Their job is to test whether you follow their process or lead with your own. Lead. Pass the test by doing what’s right for your company, not by submitting to a gatekeeper. Email response to associate outreach: “Thanks for reaching out. I’d be happy to get on a call with you and the Partner who leads our sector.” Email response when they push back: “I respect your process. We’ve found partner involvement from the start saves everyone time. Happy to reconnect when that’s possible.” The result? • 50% ghost (they were never serious) • 30% get a partner on the call • 20% reveal the partner isn’t interested You just saved three months. Time is your scarcest resource. Stop spending it on people who can’t say yes. Respect the process, but don’t be ruled by it. Get a warm intro. Meet a partner. Get funded.

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The best message I ever got from a founder was 3 lines long. No pitch deck, no buzzwords, no “hope this finds you well.” Just: “Hey Eric, we’re building an AI-powered platform that helps chronic patients manage meds and doctor follow-ups without the usual chaos. We’ve onboarded 12 clinics, 3,000 users, and our retention is 🔥. We’re raising $1.2M to scale partnerships. You in?” That’s it. Direct, confident, and didn’t waste a second of my time. I replied in 5 minutes. Founders, take notes. I don’t need a novel I need clarity. If I want details, I’ll ask. Lead with value, not vibes.

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