I recently sat down with @dereklfisher discussing tech and basketball and the similarities between the two. It struck me after speaking to @yg about how his record labels make money the same way venture capital firms make money. The reason why athletes and entertainers are making so much money and drawn to tech is that they innately understand the model because it’s very similar to sports teams and record labels. If you ask either of them how teams and record labels work they will say:
1. They make most of their money from the top 5-10% of their rosters. Just like tech.
2. They pick artist/players who have a certain profile, physical look, ability, street smarts, hustle that they’ve proven to be successful in that space. Just like tech.
3. They recruit from certain cities, pipelines, feeder schools, hoods, etc. just like tech.
4. Each of them could name 5-10 things that teams/labels look for in talent. Just like VC firms can.
So just as the top 1% of the athletes and entertainers actually make it to the top the same goes for founders. The key to ball is understanding what AAU team and college to attend, being fast, a certain height, and having a high basketball IQ. The key to tech is understanding your industry better than anyone, making traction, and beating your competitors, having a strong business not just an idea, having the right team and advisor coaches, attending as many camps/conferences as possible to get seen, and hopefully in a market where you can hire good talent and raise sufficient capital. Then it’s about practice practice practice! Don’t let money stop you. Be creative. Be like the young athletes that dream of being in the league. Or like the young entertainer who moves to a big city to pursue their dreams. By any means! 🙏🏾 #venturecapital #technology#startups