How a burned-out musician built a $4 billion startup (almost by accident)

Welcome back to another edition of The Wise Exit!

In today's edition, you'll learn:

• How a burned-out musician built a $4 billion startup (almost by accident).

• The ins and outs of selling your family business.

• 3 creative strategies to futureproof your company.

Let's dive in...

How a burned-out musician built a $4 billion startup (almost by accident)

Meet Jack Conte.

(source: https://www.theinformation.com/articles/patreon-says-creator-lifetime-earnings-hit-3-5-billion)

He wasn't your typical starving artist. In fact, his indie band Pomplamoose was raking in about $400k a year at its peak.

But after spending three months maxing out his credit cards to produce a music video, Jack was burned out, crying from exhaustion.

Even though that video would go on to get millions of views, the ad revenue was less than $1,000. Talk about a raw deal.

Jack knew there had to be a better way for creators to get paid. So he sketched an idea on 14 pieces of printer paper and called up his college roommate, Sam Yam.

And just like that, Patreon was born.

(source: https://www.patreon.com)

They launched with three creators: Jack, his girlfriend, and their roommate. But once other creators saw how much money Jack was making, they wanted in.

Fast forward a few years, and Patreon has sent over $3.5 billion to creatives. Some are even pulling in $10 million a year.

(source: https://creatorhub.patreon.com/articles/how-to-get-started-on-patreon)

But with tremendous growth comes tough decisions. Jack and Sam are debating whether to take the company public.

Jack's number one priority? Ensure Patreon always puts creators first, even if it means ruffling some shareholder feathers.

It's a tough balance, but if anyone can pull it off, it's Jack. After all, he's been in the creator's shoes. He knows the struggle and is determined to ensure Patreon stays true to its mission.

So there you have it.

The story of how a burned-out musician accidentally built a $4 billion company, all because he wanted to help his fellow creators get paid.

If that's not inspiration to chase your dreams, I don't know what is.

Featured Blog 📰

Thinking about selling your family business?

(source: https://www.cigaraficionado.com/article/the-godfather-at-50)

It's a tough decision, both financially and emotionally.

But sometimes, moving on is the best thing for you and the business. The key is to do it right.

In this blog post, we walk you through selling your family business, from deciding when to sell to finding the right buyer and closing the deal.

We tackle some of the biggest challenges, like navigating family dynamics and letting go of your life's work.

Read the blog post: Selling Your Family Business? Process + FAQs Explained.

M&A Tips from Brian Dukes 💡

Succession planning isn't sexy (although the TV show was brilliant).

(source: https://www.reddit.com)

But ignore it at your peril.

Because without a robust plan, your business is a ticking time bomb.

One key person's exit can bring the whole house of cards tumbling down.

The solution?

Get creative.

Here are 3 outside-the-box strategies to futureproof your company:

Read the full post on LinkedIn.

That's all for now.

Tune in next Wednesday for another set of M&A lessons, and have a great rest of the week.

Best,

Brian Dukes