#140 - How Much Do VCs Make?, A Booming Startup Replacing Fridge…
About This Episode
Sam and Shaan analyze the unit economics of the 'cloud corner store' grocery delivery model and the massive success of the 'Hunt A Killer' subscription business. They also break down the compensation structures of top-tier venture capitalists and discuss Shaan's recent angel investment portfolio across India and productivity software.
Episode Description
Key Takeaways
The 'cloud corner store' model succeeds by purchasing inventory at wholesale and selling at retail within a dense one-mile radius, avoiding the excessive markups of third-party shopping apps like Instacart.
Labor arbitrage can be successfully applied to high-skill services, such as hiring expert Indian yogis to teach US students over Zoom, providing a premium experience at a significantly lower cost.
Angel investing is a unique asset class where the asset (founder) must also choose the investor, making a personal brand and demonstrated 'helpfulness' essential for winning competitive deals.