Investing in early-stage startups is akin to buying a ticket to the future. It allows you to be a part of emerging innovations and own a piece of that future.
However, the traditional route of investing in startups can be challenging. It involves searching, reviewing, conducting due diligence, and making individual investments in startups that one discovers along their journey. This process is time-consuming and labor-intensive.
As a result, many investors end up sticking to conventional investments like index funds or property—assets that are tangible and familiar, but rooted in the “here and now,” not the future.
But what if it could be different?
Backing the Future and Owning a Piece of it Too
That’s the question I asked myself years ago. What if there was a way to bet on the future and own a piece of it too?
I was helping Fortune 500 businesses innovate their company strategy, launch better products, and develop smarter ways of working. I took advisory roles for equity in interesting startups—a strategy that helped me build wealth, with some of these startups even getting acquired. However, it always felt like something was missing.
I wanted a portfolio that wasn’t an opportunistic collection of investments or companies that reached out to me but something more intentional, something I could put together—a way to get early-stage exposure to startups I saw massive potential in, could help shape and grow, and essentially buy a ticket to the future I believed in — owning a piece of it too.
I needed an “early-stage index fund for the future.” That’s when I discovered venture studios and helped start Nobody Studios.
The Power of Venture Studios for Investors
Venture studios offer a unique value proposition for investors seeking early-stage exposure:
- Multi-Time Exited Entrepreneurs Working Together: The venture studio model brings together experienced entrepreneurs with a track record of successful exits. These individuals have a deep understanding of the startup ecosystem and can navigate the complexities of building and scaling companies.
- A Powerful Network to Leverage: Venture studios provide access to a robust network of startup operators, investors, advisors, and industry experts. This network enhances the value of startups within the studio and accelerates their growth by providing strategic guidance and resources.
- Optionality and Diversification: At Nobody Studios, we aim to create 100 companies over the next 5 years. This level of activity generates optionality for investors. As an investor in the Studio, you get exposure to a diversified portfolio of startups from day one, minimizing the risks associated with investing in a single startup as you own a piece of the Studio, and every startup it creates.
Being a part of a venture studio as an investor means owning a piece of the future, yet getting it at a discounted rate.
Riding the Waves of Technological Breakthroughs
Investing in future technologies, whether AI today or the internet in the late ’90s, comes with its share of risks. The path is rarely a straight line; it’s more of a roller coaster. Yet, those who understand the long-term value potential are the ones who stand to gain the most.
For example, Amazon was the leading e-commerce site in 1999, and despite its shares falling drastically, those who bought the IPO on day one, and held on saw a 25x return. Those who bought during the Dot-Com dip when shares went to $3 per share saw a 500x return.
The lesson? The future will always have ups and downs, but owning a piece of the future today — accelerated by a portfolio approach, especially one shaped by seasoned entrepreneurs — can mitigate some of those risks and create extraordinary returns.
The Peter Thiel Perspective: Investing with a “Discount to the Future” Mindset
Peter Thiel, a renowned entrepreneur and investor, highlights a crucial concept that many overlook in early-stage investing: the value is never a premium on the past; it’s always a discount to the future.
Investors often get caught up in valuations based on past performance. Instead, the focus should be on “what if things go right”, and why a company will be worth significantly more in the future.
When Thiel raised the round for PayPal, he presented it as the “last round before the IPO”. Similarly, at Nobody Studios our upcoming Series A round may be the last capital we ever raise. As we start to exit the businesses we’ve built we’ll use those funds to reinvest back into our portfolio and build more companies. Once the flywheel starts turning we won’t need new capital as we’ll be creating it ourselves from our startup exits. Today’s price will be the best it’s ever been.
The concept of a “discounted price to the future” is powerful and aligns perfectly with the venture studio model. By investing in a portfolio of startups early on, you’re not just investing in what they are today but what they could become in the future, with numerous opportunities for startups to succeed.
Having a Plan in an Uncertain World
Great entrepreneurs, like great investors, have a plan for the future, even if it might be wrong.
It’s about having a perspective on what the world might look like 5-10 years from now and making calculated bets today that will pay off then. Which AI companies will win? What new technologies will change how we work, play and engage one another. You want to be making a portfolio of bets of these futures, and own a piece of the future today.
Venture studios, which have increased over 650% in the last 5 years, provide a structured way to do this.
Instead of leaving it all to chance, venture studios, like Nobody Studios, offer a systematic way to build, grow, and invest in companies with a clear vision for the future.
Owning a Piece of the Future
As an investor in a venture studio, you aren’t just putting your money in a single startup or making a speculative bet on future technologies, trends and teams to execute on exciting visions.
You are buying into a diversified portfolio, managed by a team of experts, that is focused on creating value and delivering a substantial return on investment.
It’s about owning a discounted piece of the future, leveraging the collective wisdom of seasoned entrepreneurs, and being part of a network that helps shape what’s next.
This approach ties in with Peter Thiel’s strategic approach to investing, and emphasizes the value of long-term thinking and diversified investments in the future.
It’s the bet I’m making, and I’m excited by what is ahead.