Episode Transcript
Hello? Hello. It's Andrew from XO capital. And today I am very excited to announce the launch of our very first flip fund. We are doing this under reg D so everybody has to be an accredited investor, but. We are allowed to publicly solicit investment, which is pretty sweet. So I'm super excited. We have around 650,000 soft circled so far. So we'll see who shows up to the party.
We are using a company called capitalized. I think it's a subsidiary of we funder, but you can go on this link. It will ask how much you would like to invest. So if I put in like 25,000 here, which is our current minimum it'll go through and you'll have to say. Like check a box as to whether or not you're an accredited investor and make sure you meet that criteria, et cetera, et cetera. And then that's it. You can just put in your, your info and it'll send a wire. So there actually is no like sidecar SPV. Everybody will be in the same LLC that we are in.
Which is pretty cool. So it's all just a direct investment. If you haven't checked out the deck yet you can do so on paste app, it's the link in there paste that by the way, is it really. Really cool. Little thing to go build decks. I absolutely love it. I've gotten over trying to make everything look pretty and it's like a really simple way to create a deck quickly. Anyways, if you haven't checked that out yet, that is
Available in the post and I'll put it in the show notes and stuff like that. But basically the flip fund, we are trying to raise half a million to a million. We're going to buy one software company and we are going to double the revenue and try to double the revenue and try and sell it in 12 to 24 months.
That's kind of. That's kind of the promise. So hence the term flip fund is because we are trying to double it and sell it pretty quickly. I won't go through this whole thing now, but there's, there's no management fees. It's just, you know, there's, there's some costs that the fund itself will pay for like, you know, setting up the entity, et cetera.
And there's 20% carry, but we're not taking a percent as a management fee. Y XL, we'll go through some of our previous wins and our other current state of the world. And yeah, if you have any questions, just feel free to reach out, but that's the flip fund. Going back to kind of business as usual, there are two experiments I'm running this week. One is pretty straightforward and another one I'm pretty uncomfortable with, but can I try it anyway? So the first one is a community. I get, you know, five, 10 ish questions a week over email, Twitter, LinkedIn, whatever, just people asking about, you know, sort of.
Acquisition 1 0 1 type stuff have been thinking about buying a company. So I just created a discord channel for everybody to jump in there and ask questions. I think in the future, I will for sure, put a paywall in front of it, just to keep the. Conversations at a, at a higher level and paywalls tend to do that pretty well. But I think it would be, it would be a really cool space if we could figure out how to help each other, do sourcing due diligence, deal, structure, ideas, valuations integration, stuff like that.
So that's it. That's it. That's on discord. It's available now. There's no paywall now, but I think that eventually there will be, this is me trying to double down on what Cody Sanchez is doing it at a contrarian Capitol. She's just crushing it so hard on the content side. And. I aspire to be like Cody Sanchez. She's just doing a great job. And I think that XO is a brand, has the power to do what she has done for for, for her kind of content empire. And she's also turned that into a fund and we're sort of following in that footsteps, in that.
I've been writing those blog posts for about three years and. I am now asking for the first time after 10 acquisitions. Ourselves going out to the community and asking to see if anybody wants to join us on this journey. And so far the answer has been surprising. Yes, it's, it's been, it's been lovely chatting with a couple of the people that have been reading this for a long time and they've been observing and kind of waiting to jump in.
And, and this is the, and now's the time. The second experiment that I'm running this week is something that I'm a little bit. Less comfortable with, eh, I'm calling it Andrew as a service. But I'm thinking about taking on one or two people or companies. And it'll be five K a month for kind of all you can eat. And I'll just see how that goes. I've done stuff like this in the past. Sometimes it's cool. Sometimes it's not cool, but I think that it would be it's fun for me. I really enjoy doing it. The goal is to use these funds to pay for my MBA, which I start next month at UCLA. I know you guys probably have a ton of opinions on, on why the heck I would be doing an MBA at my ripe elder age of 34. I have those same questions. I've committed to at least doing a quarter. And seeing how it goes, but I kind of applied on a whim and got in. And so here we are.
I have been slightly influenced by this group that the design joy guy. I forget what his name is right now, but he has, he has a course that he put out, which I thought the course sucked, but. The concept of productizing yourself is really interesting. And so I've just been kind of revisiting that idea and what came to mind was sort of Andrew as a service for doing M and a type type help. And so that's what this experiment is all about.
Growth bar. We continue on just on, on, in the portfolio itself, growth bar continues to dominate the head space just because it's the largest one that we have. We still remove, we removed credit card signups, but we're still waiting for people to run through their 14 day free trial to really measure what the conversions are.
But it is terrifying to see just these kind of shit numbers come through and Stripe, knowing that it's a direct result of a thing that we changed and not knowing. Quite yet, if that bet is going to work out. But I think the reality is that in Stripe, if you, if we were to pull that up, it might say like 33,000 in recurring revenue. And I think the real number is like closer at 25, 26, 27, something like that. And so this could just be sort of an annoying way to true up stripes data to what is reflected in reality.
And but you know, who knows, we could just be dead wrong about this and we'll have to revert it. On the fun side, just for fun. I read a book called 10 X, not two X and the gap and the gain. And I kinda let myself drink the Kool-Aid a little bit and built a personal AI coach just to help me stay on track. So it will, you can set up kind of a schedule or multiple schedules. So in the morning it just says, what do you want to accomplish today?
Or like, what's your goal for the day? And then at night at 6:00 PM, it will prompt me to write down my three wins for the day. And what I really like about those two books, I just mentioned. Is this concept of measuring yourself against a previous state. So if Last week I ran five miles in this week. I'm running 10 miles.
You can measure that progress pretty discreetly. But what I tend to do is sort of measure myself against some ideal. And then I, every time I achieve it, I, I move the goalpost on myself. So it feels like a constant struggle. And so I'm giving this a try to start measuring my gains.
Relative to where I was in the past, instead of some sort of ideal that is never really meant to be achieved or isn't actually. Achievable because it's not really a well-defined goal, but that's it. You can check it out and sign up. It's it's free for now. But yeah, it'll just like kind of text you and it's just chat GPT under the hood, but it's pretty reasonable. Like it'll remember who you are. It'll remember the conversations you've had in the past.
And it'll like kind of summarize on every Friday. It'll just kinda summarize the week for you, which I I've, I've been really enjoying. So you can check that out. And then I have a couple of book recommendations in here, which I don't have time to go into right now. And, and some, some thoughts on the current U S stock market, but that's really it, the focus is going to be on, on the flip fund for the next God knows how long, but if you're lucky enough to get in here, This is going to be you know, like an all-out sprint for us because it flipped fund one doesn't work. There is no flip on two, three and four, so we're going to make pretty damn sure that we knock this one out of the park or at least attempt to. So that's it. Thanks for watching.
