In this episode of The Tech Leader's Playbook, Avetis Antaplyan interviews Jon Staenberg, a three-time Stanford graduate and founder of Agate Hound Fund. They discuss John's unconventional journey through entrepreneurship and investing, starting from his early work experiences in Omaha to his ventures in Argentina's wine industry. The episode dives into the influence of Warren Buffett, the importance of storytelling in business, and the emerging opportunities in search funds and entrepreneurship through acquisition. Jon shares insights on the challenges and rewards of investing in traditional businesses amidst the rise of AI and demographic shifts in the market. In this conversation, Avetis Antaplyan discusses his journey into the world of ETA (Entrepreneurial Through Acquisition) and the unique approach he has taken with his fund. He emphasizes the importance of investing in small businesses, the criteria for evaluating potential investments, and the significance of building a community among investors and entrepreneurs. The discussion also touches on the future of ETA, the richness of niche markets, and the value of personal connections in the business world.
Takeaways
Jon's early work experience instilled a strong work ethic.
The importance of storytelling in business and investment.
Warren Buffett's influence on Jon's investment philosophy.
Stanford's entrepreneurial environment shaped Jon's career.
Curiosity led Jon to start a wine business in Argentina.
Search funds provide a structured approach to business acquisition.
The potential of traditional businesses in the face of AI disruption.
The demographic shift presents opportunities for acquiring businesses.
Investing in people is crucial for successful entrepreneurship.
The challenges and rewards of entrepreneurship through acquisition.
Investing in ETA requires full-time dedication.
A non-correlated asset class can enhance portfolio stability.
The index fund model for small businesses is innovative.
Diverse industries present unique investment opportunities.
Evaluating operators is crucial for successful acquisitions.
The failure rate in ETA is significantly lower than in venture capital.
Building a community fosters collaboration and growth.
The future of ETA looks promising with expanding opportunities.
Connecting people can lead to unexpected benefits.
Engagement and passion are key to success in investing.
Chapters
00:00 Introduction and the Search Fund Landscape
01:28 Early Grit and Unconventional Pathways
02:58 Childhood Work Ethic and Family Influence
05:55 Lessons from Working Young and Modern Implications
07:18 Parenting Perspectives on Work and Responsibility
08:51 Warren Buffett’s Influence and Omaha Values
11:08 Catherine Graham and Inspiring Leadership
12:07 Stanford, Startups, and Embracing Failure
13:33 The Power of Storytelling in Business
14:56 What Is a Search Fund and How Does ETA Work?
17:00 Challenges and Scalability Limits of Search Funds
19:45 Why Search Funds Are Niche but High-Return
22:50 The Tech-Agnostic Opportunity of Traditional Businesses
26:22 Starting a Fund of Funds and the Non-Correlated Model
30:12 Evaluating Operators and Acquisitions in ETA
36:35 Building Community Through Intentional Gatherings
Jon Staenberg’s Social Media Links:
https://www.linkedin.com/in/jonstaenberg/
Jon Staenberg’s Website:
Resources and Links:
