How a guy turned 3 YouTube Channels into $3 Billion Dollars

Summary

Podcast Summary: My First Million – "How a Guy Turned 3 YouTube Channels into $3 Billion Dollars"

Episode Information:

• Title: How a Guy Turned 3 YouTube Channels into $3 Billion Dollars
• Host/Author: HubSpot Media
• Release Date: March 25, 2025

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Introduction

In this compelling episode of My First Million, hosted by Sam Parr and Shaan Puri, the discussion revolves around an extraordinary success story of Rene, a former Maker Studios employee, who orchestrated the acquisition and scaling of three major YouTube channels—Cocomelon, Blippi, and Little Baby Bum—leading to a staggering $3 billion exit.

The YouTube Landscape

The conversation begins with an exploration of the top YouTube channels by view count. While names like Mr. Beast and T-Series dominate the list, Cocomelon stands out as a key player in children's entertainment.

Renee: "Cocomelon was just simple nursery rhymes and animations that filled a niche need." [01:04]

The Rise of Cocomelon and Blippi

Cocomelon originated around 2006-2007, created by a father and his wife who noticed the lack of quality kids' content on YouTube. Their initial videos were straightforward animations of nursery rhymes like the ABC song, which gradually accumulated millions of views solely through YouTube ad revenue.

Similarly, Blippi began as a response to low-quality children's videos about toys like tractors. The creator used green screen technology to place himself in various play areas, making educational and entertaining content for kids.

Sam: "By starting with just nursery rhymes and simple animations, they built a foundation that requires minimal maintenance over time." [02:32]

Rene's Background and Opportunity

Rene, with his experience at Maker Studios—a multi-channel network (MCN) that aimed to professionalize YouTube talent—identified a unique opportunity. Despite Maker Studios' eventual failure and acquisition by Disney, Rene observed that top children's YouTube channels remained independent and underutilized by major studios.

Sam: "None of the top hundred most viewed children's channels were owned by big studios like Disney or Pixar." [05:07]

Moonbug's Acquisition Strategy

Rene, alongside a co-founder from Paramount, embarked on a roll-up strategy through his holding company, Moonbug. Their approach was systematic:

1. Criteria for Acquisition:

   • High view counts.
   • Strong, recognizable intellectual property (IP) with potential for merchandise and further monetization.

2. Fundraising:

   • Initially raised $150 million.
   • Expanded to $400 million through equity and debt to facilitate large-scale acquisitions.

3. Key Acquisitions:

   • Cocomelon for $103 million.
   • Blippi for $70 million.
   • Little Baby Bum for $65 million.

Sam: "They raised about $400 million in total to execute their roll-up strategy, aiming for a 10x return on their capital." [08:56]

Growth and Monetization of Moonbug

Under Moonbug's stewardship, the acquired channels experienced exponential growth:

• Revenue Growth:

  • 2019: $20 million
  • 2020: $50 million
  • 2023: $230 million with $100 million in EBITDA

• Monetization Strategies:

  • Expansion into streaming platforms like Netflix.
  • Diversification into merchandise, toys, and live tours (e.g., Blippi the Musical).
  • Leveraging live events and exclusive content to build a comprehensive ecosystem around each brand.

Renee: "Moonbug built out the full suite of business around these channels, using the Disney playbook without the theme parks." [12:49]

Financials and Exit

After four years of aggressive acquisitions and scaling, Moonbug exited to Candle, backed by Blackstone, for $3 billion. This exit represented a roughly 10x return on their initial investment.

Sam: "They created $3 billion of value through mergers and acquisitions within four years." [10:00]

Profit Distribution and Leadership

The structure of profit distribution was highly favorable for the founders and key executives:

• Rene and his co-founder each made approximately $300 million.
• The head of M&A secured $60 million, and the CFO received $20-30 million.
• Investors garnered the remaining profits, highlighting the lucrative nature of the roll-up strategy.

Renee: "Their profit participation at the end was between 22-28%, a substantial return for their efforts." [21:35]

Key Strategies for Success

Moonbug's success can be attributed to several strategic moves:

1. Back Catalog Exploitation:

   • Leveraging existing content like "Wheels on the Bus" to ensure consistent viewership without additional content creation.

2. Rebranding and IP Enhancement:

   • Transitioning channels from generic names (e.g., Check Gate to Cocomelon) to more engaging brands with characters like J.J., enhancing merchandise potential.

3. Diverse Monetization Streams:

   • Extending revenue beyond YouTube ads to toys, live events, and streaming deals, thereby maximizing the value of each IP.

Sam: "They made smart moves by monetizing through various channels, turning simple content into multi-faceted businesses." [11:25]

Insights and Lessons Learned

The episode underscores the importance of identifying underutilized niches and scaling them through strategic acquisitions and diversification. Key takeaways include:

• Simple Ideas Can Scale Magnificently: Addressing basic needs (like quality kids' content) can lead to massive growth when executed well.
• Professionalization Matters: Transitioning from grassroots operations to professional management enables efficient scaling and monetization.
• Diversification is Key: Expanding revenue streams beyond the original platform safeguards against market volatility and maximizes profits.

Conclusion

Rene's journey from a Maker Studios employee to leading a $3 billion exit through Moonbug serves as a testament to the potential within the YouTube ecosystem. By systematically acquiring and scaling high-potential channels, and diversifying their revenue streams, Rene and his team were able to transform simple content into highly profitable businesses.

Sam: "These ideas are just sitting on the ground, and the hard part is taking them seriously and scaling them up." [15:09]

This episode provides invaluable insights for entrepreneurs looking to identify and capitalize on niche opportunities within digital ecosystems.

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Notable Quotes:

• [01:04] Renee: "I refuse to let her watch Coco Melon because it's crack. It's baby crack."
• [05:07] Sam: "Reasoning by analogy... it raises money, but it wasn't a really good idea."
• [08:56] Renee: "It was doing 100 million in EBITDA in only four years."
• [21:35] Sam: "They hit the highest tranche, which was basically, they got their 10% of sweat equity plus 11% of profit participation."
• [35:12] Renee: "I was going easy. I was in the dad phase. So I wanted to be available at noon... Now I'm more so like, look, I can be there in the morning and in the evening."

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Note: Advertisements, intros, outros, and non-content sections have been omitted to focus on the core discussion and insights provided in the episode.

Transcript

[Sam]

I gotta tell you about a YouTube story. Okay, so this is a story of how a guy found an underrated opportunity in the YouTube market and turned it into $3 billion.

[Sean]

I feel like I can rule the world. I know I could be what I want to. I put my all in it. Like my days off on a road, let's travel. Never look.

[Sam]

So there's this guy, Renee. And Renee discovers an opportunity. Sam, do you know what the most viewed YouTube channel is? Most views on YouTube.

[Renee]

Do you know the obvious answer would be Mr. Beast. The second Mr.

[Sam]

Beast. Number 13. Why? Why are we talking about number 13? I'm talking about number one, Sam.

[Renee]

Okay, do I do the bro move where I under guess so you win. No, I, I'm going to say some type of Indian thing.

[Sam]

Probably like an Indian number one is T series. It's Indian music. So it's just like a, like all the famous Bollywood songs. But do you know what number two is?

[Renee]

I don't. No idea.

[Sam]

Cocomelon.

[Renee]

Cocomelon? Yeah. God.

[Sam]

Does your kid watch Cocomelon or is too young maybe?

[Renee]

I refuse to let her watch Coco Melon because it's crack. It's baby crack.

[Sam]

So by the way, number two, number five, number six, number seven, those are all just like Cocomelon. They're basically kids entertainment channels. By the way, a couple of them are like Russian and Ukrainian in the top 10 of all views. So Cocomelon was this channel that was actually started back in 2006, 2007. This dad who was like an animator, slash like filmmaker, and his wife who I think was like a cartoonist for children's books, they noticed there's like, oh, there's like Nothing good on YouTube for kids. And so they start creating very simple animations for, for kids on YouTube. Just like literally if you go look, go to their channel and you click, pop, click. Oldest and the very old, the oldest one, I think it's like 18 years ago, is a video that's like the ABC song. It's a 40 second video. Crazy. And if you go look at all the old ones, it doesn't look like Cocomelon today. There's no character. There's no like kid jj there's no like crazy cracked out animations. There's nothing, there's just like literally they're just doing nursery rhymes. So it's like abc, Twinkle, Twinkle Little Star, Baba, Black Sheep, all the hits. And so those start getting a lot of views and for like 10 plus years it's just them doing animations. No sponsors, no, no Merchandise, no gimmicks, no nothing. They're just living off of YouTube ad revenue. They got a small team, they. They get 20 people, 10 plus years.

[Renee]

Wow.

[Sam]

So that's a grind. They did that. There's another story. Blippi. I don't know if you're familiar with Blippi.

[Renee]

Blippi is sort of the guy who sings, but it's like many guys now.

[Sam]

Yeah, they've switched out the character, but basically it's a dude who wears a blue suit with orange overalls and a bow tie. And he's like, it's me, Blippi. Right? And he's like, basically he just goes to like abandoned. Like, not abandoned. I shouldn't say that. Like, kids like play places when they're closed and he goes and he plays in them and he like films himself playing in the. In a play place and he teaches you things or whatever. Slightly educational, slightly fun channel.

[Renee]

Wait, were you gonna say Blippi is recording an abandoned plate? Like a. Abandoned warehouses?

[Sam]

Like is abandoned play places. Like there' one there, but they're not abandoned.

[Renee]

I thought you'd be like, today's special word is tetanus. Like if you did like.

[Sam]

Can you say rabid?

[Sean]

Rabid.

[Sam]

So Blippi, this guy basically sees that his, I think his niece or nephew or something like that is watching these like really low quality videos of tractors. Like, you know, like kids love trucks and tractors. He's like, oh man, my kid loves this or my nephew loves this tractor video. And so he goes and he makes one. If you get the same thing, go to the Blippi channel. You click oldest, you'll see it's a video of a tractor going through a field. And his next one is like another tractor video. And he's on green screen with it. He's not even near a tractor. He just green screens himself on top of it. And so he starts creating this. He starts getting a lot of views. And so what happens is there's this guy, Rene. And what Rene does is he decides to create a PE rollup but around these kids YouTube channels. And the opportunity is that Renee worked at a company called Maker Studios. Do you remember Maker?

[Renee]

Yeah. It kind of ended up being like they were the hottest thing going and they raised money at billions of dollars of valuation. And it didn't exactly live up to that, but it kind of created like, it was like so innovative that a lot of the employees were when and did amazing stuff. Is that right?

[Sam]

Kind of, yeah. So basically they were early on to the YouTube professionalization and what they were trying to do was they created what's called an mcn, a multi channel network. And you know, what does that mean? It's sort of like an agency, like a CAA for YouTube talent. So for some of them, they would own the channels and then the talent would operate them. For others, the talent owned their own channel and they would do the brand deals. But like instead of you, the one YouTuber negotiating your brand deals, they would go to, you know, whoever, Coca Cola, and negotiate it for all 30 channels on their network. Right. So it's like creating a, like a television channel, but on YouTube. And this idea sounded really good. It just wasn't a really good idea. It's been tried and failed many, many times.

[Renee]

Right.

[Sam]

It was one of these startups you have to be very wary of because they. It's reasoning by analogy. So if you ever hear like Elon talk about like reasoning from first principles, which is basically you take like solid truths like logic, and you build one logic block on top of another, like a stack of Legos that all click together in a chain of logic. Reasoning by analogy is to say, yeah, we're CAA, but for YouTube, you don't really understand the underlying assumptions about how YouTube works. And how Hollywood works is totally different. There actually doesn't need to be a CAA for YouTube or it wouldn't be that valuable if you were the CA of YouTube. But it raised money and it was a very hyped thing at the time. They actually ended up with a good exit to Disney. I think Disney bought them for 700, $900 million, something like a big exit. But it was kind of a failed company and it failed inside of Disney.

[Renee]

But it like could be an okay business, just not a good business that requires hundreds of millions of business. Yeah, not hundreds of millions in funding, good business.

[Sam]

There are plenty of these, like agents, creator agencies on TikTok and Twitch that are like bootstrapped. That'll do like a few million dollars a year of profit and good for them. Hey, quick message from our sponsor, HubSpot. You know, marketing in 2025 is wild. Customers can spot fake messages instantly. Privacy changes are making ad targeting a nightmare. And everybody needs more content than ever. That's why HubSpot has a new marketing trends report. It doesn't just show you what's changing, it shows you exactly how to deal with it. Everything is backed by research and it's about marketing plays that you can use tomorrow. So if you're ready to turn your marketing challenges into results go to HubSpot.com/marketing to download the report for free. So what happens? So Rene, he's at Maker. He didn't start it, but he works there. And when Disney acquires it, he goes to Disney and he becomes like the head of like digital content internationally or some, some, like, you know, some title there. And what he realizes is he says, here's the opportunity. He goes, when I was at Maker, I realized that kids YouTube videos were getting tons of views, but they were overlooked by traditional PE and media companies because they, you know, basically they look too janky to be taken seriously. He said of the top hundred most viewed children's bands online, none of them were owned by big studios. So he's at Disney, he's like, look at the top hundred channels, kids channels on YouTube. None of them are owned by Disney or Pixar or like any of the major studios. And his co founder, who was at Paramount at the time, goes, yeah, also none of those, none of those YouTube channels that are getting all these views have streaming deals because the streamers say we need the content to be exclusive. And the YouTubers are like, exclusive. I mean, YouTube's my bread and butter. Why would I take the content off of YouTube? So they were just like, wow, we're not doing a deal. So they get together and they started stack ranking and they basically made a simple criteria. So they said, I want something that has high views and has like a quality ip. So like it has a brand name, it has a character that people might, might associate and love. Something you might buy a plush doll of someday, like you'll buy a toy of this, this thing. He goes, if they have both of those, I'm interested. And straight out of the gate, they raised about $150 million. And they raised all this money saying, we're going to do this roll up. And they do three deals. So shout out to the the Roll Up Europe Beehive newsletter. Because he had the details on this. Nobody. All the traditional media, they only have the surface level details. Some guy on Beehive has like a really detailed breakdown of this because these companies are based in Europe and so they're all listed in Companies House. So he was able to like go see literally how much did the CEO make? And the headline of this story is they take that $150 million, they start buying up these channels and four years later they exit this to Blackstone for 3 billion. Why? Technically, they exit to Candle. Candles backed by Blackstone. That's where Candle got the money. But they sell for 3 million.

[Renee]

How much revenue was it making?

[Sam]

So let me break it down. They go and they buy Cocomelon for $103 million. 92 million upfront, 11 million contingent. Okay, so 100 million on Cocomelon, 70 million on Blippi, of which only 26 million was up front. SE 45 million was contingent. And then little baby bum was the third big one that they bought. And Little Baby Bum had also nursery rhymes and whatnot. And they did that for 65 million. So that's that basically. And they at that point they had raised more money of, of equity and debt. And so they raised about 400 million in total equity and debt to create the 3 billion exit. So like a 10x return roughly on the capital that they use to buy these channels. And in four years, literally through M and A, they were able to create $3 billion of value. Here's what they did. So here's the revenue. So their company's called, the holding company is called Moonbug. So Moonbug, basically 2019 is sort of like a $20 million a year business. 2020, it's about a $50 million year business. Then it goes to 150, then it goes to $230 million with 100 million in EBITDA before they got taken out.

[Renee]

Holy shit. It was doing 100 million in EBITDA in only four years.

[Sam]

Exactly. And the founders of this thing, so each of them cleared. Rene makes 300 million for this four years of work. His co founder makes 300 million. The head of M&A made 60 million and the CFO made like 20 or 30 billion dollars in the roll up. And the rest went to the investors.

[Renee]

When they bought these companies, did they need to be great at operating YouTube or was the. They were so good at incentivizing Blippi or whatever that they're like just keep going, you're doing fine. You get this much of your payout if you hit this and that.

[Sam]

So these businesses are, are simple and complex at the same time. What do I mean by that one? A lot of the views are just going to come on the back catalog. So you know, it's, it's still Wheels on the Bus. It's Twinkle Twinkle Little Star that are racking up views every single month. You don't have to do anything on those videos.

[Renee]

I'm not sure if you're Wheels on the Bus as analogy of running a company or. You're literally referring to the song Wheels on the Bus.

[Sam]

Yeah, the song. And so they, the back Catalog gets a lot of views, what they did, which was smart. So Cocomelon wasn't originally called Cocomelon. It was originally called Check Gate, which sounds like a baggage company.

[Renee]

Dude, it reminds me of. It sounds like the cult. Remember the. The cult that. Where they all kill themselves? It was like heaven's gate. Check Gate.

[Sam]

Okay. So, yeah, not familiar with that. I need to brush up on my cults.

[Renee]

Yeah.

[Sam]

So check it. And then they rebranded to ABC Kid tv, which, if you watch the videos, it'll still start ABC Kid tv. And then it starts the song. Then they rebranded to Cocomelon, but that's like in 2017 or something like that. It was like a long time. It was like 10 plus years into the company that they rebranded. And that's when they introduced J.J. and the characters and the colors. And then so basically that's where you get the characters. Same thing with Blippi. They had Blippi. They take out the main guy, they replace him with an actor, basically, because he's ready to move on. And they also introduced Micah, this diverse character who could come in and appeal to a wider set of audience. So they're doing moves in the content. Yes, but the other moves they did was they got it on the streamers. So they got it onto Netflix. It's now the most watched kids thing on Netflix is Cocomelon. Then they go into the toys business and they're doing, you know, millions and millions in toys and licensing. And so, you know, you. They built out the full, like, suite of business basically around these. They do Blippi the Musical. It's a live tour that's going around the nation and that's, you know, selling out. You know, basically tickets. Me and my family, we all went and this, you know, there's not an empty seat in the house. And so, like, these things are like, they turn them into, you know, rocking and rolling businesses. They kind of use the Disney playbook, right, which is like, create massively loved IP and then monetize it through everything except for they just didn't do theme parks.

[Renee]

Have you seen on south park where Mickey Mouse is, you know, comes off as this nice guy, but behind the scenes, he's trying to convince the Jonah brothers that they better wear their virginity rings or their chastity rings because they're wanting to, like, have sex. And he's like, you better put that fucking ring back on.

[Sam]

Like, first of all, incredible impression. Yeah. How did you feel three seconds before you did that, before you committed?

[Renee]

You know, there is no when you're taking a risk, you cannot paint a world where it's only upside. You have to accept that there is potentially downside. These are the things I tell myself before I'm ever taking a big risk. And I thought about that.

[Sam]

I'm a risk taker.

[Renee]

I'm a risk taker.

[Sam]

I do impromptu impressions sometimes that I've.

[Renee]

Never done before, but that's what I imagined Renee to be. He's like, listen, Blippi, I need you to put that fucking tie on and I need you to get out there and dance. Like when Blippi's, like, asking for a raise. What's the hard part about this business? Is it convincing people to sell?

[Sam]

No, I don't think that was that hard because they had a huge check, and the huge check helps. You know, Like, I think at the time, I think Cocomelon had done like 80 million in revenue or something like that that year. And then they bought them for 100. So they bought them, you know, probably like at a 5x multiple or 6x multiple of profits or something like that. I don't know exactly the multiple, but I'm guessing they offered them, like, hey, here's a bunch of money that you could have. And, like, you've been running for, like, you know, years doing this on this treadmill. And like, what if we could help? And what if we could take you to the next level? You don't know those people. Oh, I golf with the guy from Netflix. Oh, I used to be at Paramount. Oh, I was at Disney. I can help you get to the next level. Break down doors that didn't seem like they were open. The hard part was picking up the gold on the ground. So this happens a lot in business is like, these ideas are just sitting on the ground. And it's. The hard part is somebody taking a very simple idea very seriously. So to say, yeah, you know that silly, like, nursery rhyme channel. I'm going to go raise $150 million from, like, whoever Goldman Sachs to go and acquire these. And you have to say that with a straight face when there's no track record of that. You know, you have to really pitch a strong case.

[Renee]

And I also wonder, and you would actually have good insight into this because you worked at Twitch. I wonder what opportunity looks like. So, for example, when you explained Renee Rene's inner dialogue of like, hey, look at all the top 100 channels. None of them are owned by PE or they all are just kind of like these mom and pop shops. This seems so obvious, but I wonder what that Inner dialogue actually was with uncertainty in the same way where I don't know anything about streaming, but used to work at Twitch. And then I know that, like, there was. That there was like two new video kickstream or I forget. But like, I wonder if a Twitch employee could have looked at me like these. There's an opportunity here. Here's a gap because I could see the data. Therefore, we should support this other thing. What was the other one called? Kick.

[Sam]

There's mixer. There was kick.

[Renee]

Yeah.

[Sam]

YouTube has their own Facebook other. Actually, you know, there was a time where we were. Before Twitch acquired us, we were building like a tool in the ecosystem. We were getting to know a bunch of the streamers who were using our tool. And we were like, look, this tool, like, the hard part is this tool, like, kind of caps out at like 100 million if we win. If we win. The size of this is like 100 million, we think. And the problem is that the platform's worth like 5 billion. How do we do the 5 billion thing? And we were like, we'd have to create another platform. It's like, okay, well, there's the technology part of it. That's hard, but doable. The hard part is getting the streamers and getting the network effect to go. How do you break the network effect of something like Twitch? And what you realize is that a very small number of streamers drive a huge amount of the viewership. So in theory, you could get those streamers together and you could say, hey, we're coming over here. And so I actually went and pitched my investor. Now, I shouldn't say pitch because it wasn't. I wasn't fully committed. I wasn't sure that this is a swing we're taking, but I was like, I think what we would need to do.

[Renee]

Wouldn't it be neat if we did this?

[Sam]

I was like, we need to throw some sort of event where we get a hundred of the. We get all the top hundred streamers in a room together. And basically we need to make them an offer they can't refuse. We need to make that. We need to basically overpay the top hundred. And, you know, the thing is, with the top hundred, even if they're making $5 million a year and you're offering them 3x that, 4x that, whatever it is, okay, you'd need $500 million to do this, and they need to say yes, which is hard, but if you had $500 million, you could create a platform that's gonna be worth $5 billion. Like, it's not that much more complicated. Like, once you have the streamers, you've got the hard part. You could build all the other stuff. You could build the chat, you could build the streaming technology, you could build the bits, you could build the subscription feature, you could build all the other stuff you would need to build. But you'd have to get the main creators to come over and you'd have to have the sentiment be this is where you need to be, not Twitch. Really. That's the really, really hard part. And so we were like, I don't know, that's kind of a crazy idea. We didn't end up doing it when we got acquired. Emmett takes me out to drinks the night we. The deal closes and we go meet in this bar in the Mission and we're talking and I was like, yeah, like, you know, it's kind of like you could put your cards on the table, now the deal's done. And I was like, yeah, you know, actually we were talking about something I said, you know, one of the things that I thought about doing was I realized like, you know, we did the math. We realized these streamers matter the most. If we paid them this much, I think we could have got them, you know, 70% of them maybe to come over and like that could have caused like some waves. And he's like, yeah, actually we've thought about that. So what we had done was we, we made it so that none of their, all their, they're on contracts with us, unlike YouTube. So like on Twitch, they actually have like multi year agreements with Twitch. And he goes, we just made it so that they don't expire at the same time. So we always aligned it where for the top streamers, they're all ending at different times so that nobody would ever feel safety in numbers to move to another platform as a giant group because they could never get their contracts to align.

[Renee]

That's why Emmett is Emmett.

[Sam]

Yeah. Actually, I think in reality that actually wasn't the case. And in truth, the streamers just could have like moved over and there's nothing Twitch could have done about it. Like the contract wasn't you have to stream here. The contract was you only get this deal if you stream here. Meaning, like you get this ratio, this, that maybe the split or this minimum guarantee, whatever. Right. But like the reality was if Twitch went and started suing streamers, that would have been horrible for their own business. They would never do it. Which is why multiple streamers did take money from Mixer and Kik and others. And they Left and Twitch didn't do anything about it. So, like, the reality was a more high agency version of me. You could have actually tried it and it would have been, probably would have been more worthwhile my time than what we did with the tool, because the tool never had the upside.

[Renee]

All right, my friends, I have exciting news for that business idea that's been sitting in your notes app. The Hustle, which is my old company, has partnered with indie hackers, one of my favorite websites, to launch a pitch competition. It's called the Hustle's Big Break, and it's a pitch competition with a simple premise. You tell us your business idea in 60 seconds or less, and the winner gets $5,000 to turn it into a reality. Here's how it works. Record a 60 second video pitch of your business idea, include your business name, description, revenue model and tagline, and finally, submit it at thehustle Co Slash Big Break. And it all has to be done by April 4th. The winner gets $5,000 in cash to kickstart their business journey. Plus, we're going to feature them in the Hustle's daily newsletter, which is read by around a million and a half people. And these are the smartest business and tech folks out there. The winner will be announced on April 11. So again, if you have a business idea, go to the Hustle Co Big Break. All right, back to the podcast. This is a great story. I want to know, like the update, I want to know what happened and how did you know how much money he made?

[Sam]

I told you, my guy on Beehive, he basically went to their, their, his Rene's LLC or whatever, you know, the equivalent of an LLC is on Companies House. And you can see that $280 million hit the bank in a certain year. They had to report that. And so he kind of did all the math. And he also had their cap table like their waterfall. So it's actually kind of nerdy and interesting and that the way they structured the deal was basically with investors. They, the founders who were doing the roll up were basically entitled to somewhere between 22 to 28% of all proceeds of the roll up. All right, so that was like their profit participation at the end. So whatever we sell this for, we get between 22 to 28%. Investors are going to get the rest.

[Renee]

Wait, that's, that's insane. That's different than equity.

[Sam]

No, it's like equity, but it's basically like, you know, you have equity, but then you have, let's say, preferred equity, right? Or you have, like, liquidation preferences. You can have rules. You can have strings attached to equity.

[Renee]

So, for example, I did not know that.

[Sam]

What they did.

[Renee]

You did.

[Sam]

Because in venture, this happens all the time, right. When a company raises money, they rated preferred shares. Preferred shares mean they get their money back first. So even If I own 25%, I don't necessarily get 25%. I might. Yeah.

[Renee]

I guess I just assumed if this is a PE firm, the rules are different. And like, it was like, for example, it was like, tied to the carry or something like that.

[Sam]

So what they did was it was based on the multiple of the invested capital, the MOIC. Right. So it's like if it was under 3x return, so they raised 400 million. If it was going to be an under 3x return, they were going to get, like, only 9% of the proceeds or something like that. Like a lower percent.

[Renee]

Got it.

[Sam]

But they hit 10.10x. Right. So they hit the highest tranche, which was basically, they got their 10% of sweat equity plus 11% of profit participation. So they got like 22% or something.

[Renee]

Did they use any of their own money to start this?

[Sam]

I think Rene was an investor, but I don't know how much.

[Renee]

Yeah, this guy's great. That's a good story. I have a Life Update for you. Okay, let's do it. And I. I wanted to share because I think it's. I think it's fun, but I also think that there's a lot of people who can learn from the situation that I'm in, because I think they're in similar situations. So the Life Update is my partner, Joe and I. We are now the CEOs of my company, Hampton. And the Life Update is basically, I'm going, like, pretty much all in on it. And I wanted to explain a quote that I read that made me want to do this. So we like. Or at least I like Palmer Luckey. Do you like Palmer Luckey?

[Sam]

Yeah, sure. Why not?

[Renee]

Palmer Luckey, we had him on the pod like, three years ago, two years ago. And I have been just fascinated with his way of thinking. And he had this interview come out. I linked to it on the bottom of our document. It was with Tablet magazine. And I think he came out with this in 22 maybe. And I want to read it to you. So Palmer Luckey is the CEO of Andrew. It's a 13 or 20 billion dollars company, something like that. Also created Oculus. So he said at some point in business and in life and in rose romance, you have to commit to a Path. A lot of my peers in the tech industry do not share this philosophy. They're always pursuing everything with optionality. Oh, I need to be able to raise money from anybody. I need to be able to sell my business in any way. I need to have liquidity in any way. I need to make sure that I'm not closing myself off to a romantic partners. I need to make sure that I've got my options open. I need to make sure that I'm not going to buy a house and lock myself in or having children. I don't know. I'm not ready. I don't want to commit to that path. And keeping their options open, they. They ensure that they're going to jump from option to option. And if they don't commit to a path, they're going to fail at it. You have to commit to make it work. And I think marriage is the same way. You just have to commit to it. You have to say, this is the path that I'm on, for better or worse, and I'm going to double down. And I thought, that is a great quote. That really stuck with me when I read this. And I realized that with my business Hampton, I had hired a CEO for it. And so I wasn't able to, like.

[Sam]

Really from day one. Right?

[Renee]

I think that's the day month eight. So I got it to a million in revenue. He scaled it to eight figures in revenue, and then I am now taking over. And so. But because of that, I wasn't able to, like, you know, put my influence on it. You have to, like, respect your CEO. You have to respect the manager in charge. And I hated that. I was not a fan of that. And I think that on this podcast, we talk a lot about that and it sounds cool, and I'm sure it's great for a lot of people, but it wasn't great for me. And the reason I wanted to bring this up on the pod was because a lot of people you see doing this, they called it like a hold company, a holding company or whatever, where they're, like, doing lots of different stuff because we. We glamorize it. Because if it works, I'm sure it's great if that is your main thing. And I was starting to think, oh, that would be great. I would like to do that. I realized I don't want to do that. I just want to do one thing. And this quote, like, really inspired me that that's, like, really what I care about.

[Sam]

Now. Let me ask you a couple questions. You weren't Doing a hold company. Holding company, though, right? You were just doing Hampton already.

[Renee]

Yeah.

[Sam]

So why the switch? Where you go from being founder chairman type person to I want to be the CEO, or actually co CEO, not even be the CEO. Why that?

[Renee]

I realized that I wanted to have full control because I wanted this to be a legacy creating company. I wanted to just put my texture on it. But also what I realized, I hate remote work. I hate it more than anything. And I wanted to create an office where I live and an office culture, because those are some of the greatest memories that I have. You and I used to work across the street from each other at the corner of Bush and Montgomery, right? Was it Bush and Montgomery?

[Sam]

Yeah.

[Renee]

I loved that intersection. Just walking out and seeing the action and seeing my employees upstairs that be able to just like, go for lunch and just like, like shooting the shit during breaks. I loved it. And I just felt that this was a really good way to make all of my selfish wants come to reality.

[Sam]

Right? Yeah, that's great. You know, I think that a lot of people are probably feeling this right now because everybody went remote during COVID and now we're what, two, three years into that, that full remote decision. And at first, you have the honeymoon period of remote. Ah, look at this. I don't have to commute. I don't have to even get dressed. I don't gotta wear pants. I just gotta top up. Here we go. You know? Oh, this is great. I could see my kids. And then you're like, God, I can't get away from my kids. I haven't left the house in weeks, you know, or whatever. Right? Like, you. You start to see some of the consequences of the negative side of those decisions. And I think the biggest one for you and me, at least I felt this is. I. I miss just being creative and serendipitous with my team. So it's like, A, have a team, right? And B, be able to just whiteboard, sticky note, go for a walk, go for lunch. Like, I brought Diego out here. So Diego was living on the other side of the country. He's living on the east coast in Baltimore.

[Renee]

How long has it been now?

[Sam]

Diego's been out here for a couple months, two, three months, something like that.

[Renee]

How has your life changed for the better, dude.

[Sam]

Way better. First of all, I get to kind of still do basically what I do, but now I just have a buddy to do all of it with, right? So it's like I kept the same schedule where it's like, in the morning, he Comes over. The first two hours of my day are like my creative block, right? Where it's just. I'm. I don't do anything else. I just write or I podcast or I, you know, read. I only do something on the creative side. It's like a creative gym session. Like going to the gym, but for creativity. All right, so we do that. But we do that together now. It's great. And then my trainer comes over. We work out together. He's. He's working out with my trainer now. So it's great. You know, we do it. We do a hard workout, then we go grab tacos. And while we're grabbing tacos, you guys.

[Renee]

Are like a prison gang, man. That sounds exactly like a prison gang.

[Sam]

You just need some enemies, dude. Yeah, the problem is only just, like, old, retired people around us, but go start a beef. Actually, I do have some neighborly beef. I could. I could actually just double down on that, now that I think about it. Yeah.

[Renee]

I call him homeboy.

[Sam]

Get blown into your yard. I'm sorry. I don't control the wind. So. But then we go. And what I told him, I go, notice this dude of our best ideas. How many of them have come while we were at this taco shop? Because there's something in the creative process to, like, the bounce, as they used to call it, the pickup artist game. And in the book the game, they talk about this technique called the bounce. It's like you're at the club or bar, you meet someone. If you really want to, like, accelerate your connection with that person, don't just stay there for another hour with them. Just be like, hey, let's go grab a bite to eat. I know a great place. And if you leave, if you do the same. The same hour with that person, but in two different places, connection goes up. Well, there's a. Something like that with creativity, where we're working on a problem here. We end up getting, you know, like, slightly stuck, or we come up with what we think is a solution, but in our gut, we're like, that doesn't seem great. Let's take a break. Let's go for a walk. So we walk or bike to a taco place. At the taco place, it's always. That's where the idea comes. Once we've taken our mind off it, once we've changed the environment. And I was like, dude, notice how many. How often that happens. If we were just remote, none of that would have happened, because I would have gotten off the zoom with you, and then I would have gone to take a break. You would have got to take a break. I wouldn't be like, hey, let's just leave our phones on. Like it would have just been like a little bit weird to do that and we would not have had, you know, those next ideas. And if you're in a creative line of work, those ideas are gold. Those ideas is what you're in it for. Right. Like, unless you're in a like factory type of work where it's all about productivity. You know, for us, creativity is the pro, is productivity. It is the new productivity. And so we need to set up a situation that lets us be more creative, which being in person was, was pretty massive for that.

[Renee]

Yeah. It's funny, we're both craving the same stuff and I think that a lot of people are and I. Yeah, and so like I went and looked at apartments this weekend and I. We have our. I think my lease starts May 1st and so I'm going all in on this. This in real life stuff like I.

[Sam]

Need or you're going to like split.

[Renee]

I don't know yet. I'm still working out logistics. I went and looked at this apartment building. Do you, have you ever been to like, I don't know if this is happening in San Francisco. So the new thing in New York is that there's these apartment buildings and it took me a long time to realize what they are, but I've nailed it. They're cruise ships. And so basically what they are is they're really cheap. I mean they're super expensive. But the build quality is like kind of crap. Like all like basic builder quality apartment units. But then the actual lobby has a bowling alley.

[Sam]

Oh like the amenities are amazing.

[Renee]

Yeah, yeah. Like a rock climbing gym and it's like all like in the basement and then it has like the best gym you've ever seen in the world. And then it has like a playroom, a golf simulator. It's basically built to be sort of like a mall where like it's built for like the 35 year old, 3, 2 kid, all under 8 type of like families. And so I went and looked at like an apartment like that and I was like sitting in that apartment building and I'm like, I don't know if I can go to bed here at night and these like tight ass walls like hearing like honking in the city. And so I haven't decided if I can like put up with that. And I'd rather commute but potentially I would move to the city. I like here's what I did, I sat down and I was like, what's my dream day? Well, my dream day is I get up at seven, I go and work out and then I get coffee with like Austin Reef, who lives next to my in laws. Or I would get coffee at my in laws and then I'd go to work at 9:30 and then my wife would like show up at the office to do some work. And then we're Both home at 5 to have dinner and that's like. And then maybe at like 7 or 8, after the kids go to bed, I would go for a walk outside. I'm like, that's the perfect day. All right. How can I create that? And so I'm still working backwards on how, how, how could I create that? The problem is I forgot about going to bed at night and I need a huge ceiling because I get claustrophobic. And that's going to cost $60,000 a month because New York City is like the craziest place in the world when it comes to renting an apartment. And so I'm still trying to figure out, you know, some of those logistical details on how on earth, like I could pull off this.

[Sam]

It was like super relatable with like walking and doing whatever until you're like, but I need 16 foot ceilings to sleep.

[Renee]

No, I just like at your house, like you're like a lot of apartment ceilings are 8fe it like, I don't know, you feel like claustrophobic. Dude. The rent in New York City is outlandish. So when we were younger, do you remember like the idea of when we were 25, I think I spent like $800 a month, a $10,000 a month apartment Nowadays in New York City, it's not nice. It's like a shit two bedroom. It's crazy how expensive Manhattan is. And so yeah, that's wild. I got to like figure out all the logistics. But that's my spiel. I'm going all in. And I'm going to go all in on in real life. I need it. My soul is aching.

[Sam]

How much were you working on Hampton anyways?

[Renee]

Hours a week, 40 hours a week.

[Sam]

Like it was like, what's going to change your CEO now?

[Renee]

Well, I can't like com like before it was like, well, how can I convince this person that my idea is the right way? Or how do I respect the boundaries? You know? Like it. I was a very respectful boss. I felt like. And it was like. But now it's like, I don't. I'm not really going to be respectful. I'm just going to say like, this is what I want to make. I need you guys to help me make this type of energy versus before, I think I was a little bit more hands off and I was thinking a lot. Now I'm actually operating.

[Sam]

Yeah.

[Renee]

What?

[Sam]

That's just funny. Like, I feel like I was just reflecting like, you know, you. I think Andrew has a good gift of this. I do this too, which is like we tell these great stories. You're like, you know, I was reading this article about Palmer Lucky and he said this beautiful quote and you have this quote. You're like, I decided I too need to commit and choose a path. But it's like, and it's a great way to frame a story like this. It's like the truth. I think I'm gonna speak for you for a second, but I think the truth in a lot of these situations are just like, it's irritating to be out of, like to not have your hands on and not be in control. It's like, I just like to be in control, do things my way. But like, wow, that's a less fun story to say. It's like, you know what, I just really feel like we all chase optionality and we're better off to commit and really just.

[Renee]

No, that is the truth.

[Sam]

And it's like, I think it's the truth, but I don't think that's why you're the CEO now.

[Renee]

No, usually, usually discovery.

[Sam]

Quote.

[Renee]

No usually discovery for me. And I bet it's for you and for many other people is you feel a certain way and you're like, this freaking sucks. And someone puts words on it and then someone puts words on it and you're like, oh, that's like normal to feel. Or this person said this.

[Sam]

I guess what I'm saying is you weren't choosing multiple options. You just weren't in control. The quote that Palmer Luckey should have said is like, if you're the founder, put your fucking DNA in the company and just go like, be hands on, be a micromanager. Go in there, do it.

[Renee]

I was going easy. I was in the dad phase. So it was, I wanted to be available at noon. Now I'm more so like, look, I can be there in the morning and in the evening. And I think that's, I'm still being a good dad. Before it was like, I have to have X amount of hours of FaceTime. Now I'm out of the honeymoon phase of being a dad and I'm like, look, I could like, be with you for breakfast and be with you for dinner, and I think I could still be a good father. And so that was partially. Partially it.

[Sam]

Gotcha. Yeah. I was talking to somebody and recently and they were like, you know, I just want to like, I'm working, I'm working hard on this. They're like chasing some project, some deal. And I was like, why are you doing this? You're so, like, you've done so many deals. You're, you're post economic, you've made so much money. Why go so hard at this? And they were like, I just really want my kids to see what, you know, their dad working. And I was like, I don't, I don't even think he was lying. I think he genuinely believes that. But I'm like, dude, you're doing this deal because you like doing deals. That's all you've done. You, you've done deals for 30 years. You're amazing at doing deals. It's a rush to do a great deal. It's fun to win, it's fun to dunk the basketball. And you're trying to dunk and you don't have to be like, I just want my kids to see a hard working dad. It's like, dude, you're sitting on your laptop sending emails. Like, it's not like they see your, their dad, you know, sweating it out in the store.

[Renee]

You're not chopping down wood, dude.

[Sam]

Yeah. So I was like, but people tell themselves all kinds of stories and I just find it hilarious because of course I do the same. But when you see it in other people, it's much more easy to spot. Like, oh, you've told yourself a story, that's cool. Like, that's fine. Whatever. Whatever gets you to do the things you want to do is fine.

[Renee]

New York City founders, if you've listened to my first million before, you know I've got this company called Hampton. And Hampton is a community for founders and CEOs. A lot of the stories and ideas that I get for this podcast, I actually got it from people who I met in Hampton. We have this big community of a thousand plus people and it's amazing. But the main part is this eight person core group that becomes your board of advisors for your life and for your business. And it's life changing now to the folks in New York City, I'm building a in real life core group in New York City. And so if you meet one of the following criteria, your business either does 3 million in revenue or you've raised 3 million in funding, or you've started and sold a company for at least $10 million, then you are eligible to apply. So go to joinhampton.com and apply. I'm going to be reviewing all of the applications myself. So put that you heard about this on mfm, so I know to give you a little extra love. Now back to the show. Would you want your children to work with you? Is that even in your wants?

[Sam]

I would, I would think that would be really fun or cool to do. I worked with my dad for about a year and it was actually a lot of fun. Much more fun. Like working with my dad was more fun than just like hanging out with my dad and not working. You know what I mean? Like, it was actually like a better dynamic, was a cooler dynamic. I learned more that way and I saw him differently and he acted differently in work mode versus he did in home mode. So it was kind of cool. So I think it would be really fun. But it's not something I'm like trying to gear up, you know, I, I think I've told you this before. Like, my new sort of dad ideal is Ben's dad. So Ben's dad, Andy, he, he, he did a very simple thing that's gonna sound like, it's gonna sound like nothing, but I personally think it is quite profound, which is the way I initially was trying to be a dad and how other people are dads is you have things that you're into. I love basketball and I keep trying to buy little basketballs and like put them near my son. I buy the hoop and I like take them to a class. I'm like, really trying to get him into basketball because, like, oh man, I really just want him to like, love the things that I love and then we could share that, we could bond over that. Whereas his dad was like, he's like, what's that type of blood? That's like, it's the universal donor, like O negative or something like that. He's O negative. So he's like, he's got one son who's into stand up comedy. So he's like, great, I'm now into stand up comedy. Yesterday I knew nothing, didn't care. Today, everything I do is eat, sleep and breathe stand up comedy. Bought books, watch videos, goes to shows by himself, starts practicing himself, starts giving his son feedback on every single thing that he's doing in a helpful, supportive way. Making connections, whatever, whatever he could do. He's like, I'll meet you where you're At. And Ben loves the Phoenix Suns. Guess what? Andy now watches every Phoenix Suns game. Is a hardcore fan, is always talking to him about the Suns because he's like, I'll meet you where you're at if that's what you're into. I will get so into it that we can bond over that. And I just thought that was like a really selfless, kind of amazing thing he did. And I just hadn't seen a lot of dads do that. I think my instinct and many dad's instincts is just to try to get them to like the shit we like, and then they don't. And then we're like, all right, like, I support you, but, like, at an arm's length. And I just thought it was much cooler to go all in on what your kids are into. So I hope and I'll expose my kids to, like, business and, like, I'll be totally open to them working with me. But I really want to do the Andy thing, which is if they're into whatever musicals, then do Re Me. You know what I mean?

[Renee]

That's awesome. That almost makes me emotional hearing about Ben's dad. What a great dude he really is. Do you want to end there or do you want to keep going?

[Sam]

I have one quick one. This is actually kind of cool. This guy Josh on Twitter. So Joshua Ogundu tweeted this out. Cool find. So he tweeted out about this company called Shotzi. Have you ever heard of Shotzi? It's an app.

[Renee]

No. Yeah. Didn't we talk about Shotzi?

[Sam]

No. So Shotzi is an app for tracking your Ozempic injections.

[Renee]

Oh, that is funny.

[Sam]

And it just crossed a million in ARR. And all it does is it basically is a. It's a shot tracker. So, you know, it's. I guess, I don't know, maybe you could tell me, like. I guess it's somewhat cumbersome to keep track of. Maybe. I don't know if it's when you did it or how much your dosages. A reminder, it's time for your next shot.

[Renee]

By the way, how about that little jab of. I don't know, maybe you could tell me, like, how do people use it?

[Sam]

You've talked about YouTube.

[Renee]

I know, I'm joking. With Ozempic, you have to increase the dosage a lot. So let's say you start with like 5 milliliters. After two weeks, you have to go to seven, and then you have to go to like 10. And it's not like incremental, so you.

[Sam]

So when you hear this idea, were you like, yeah, that was a pain point or for you, was it like, nah, I don't.

[Renee]

I didn't take it enough to be a pain point. But it's very clear. It's just sort of like, imagine taking vitamins and like, you have to add a pill every two to three to four months. And it's like, it just, it is easier to track if you want to follow it by the book. I'm more of a, like, eyeball and see how I feel type of guy.

[Sam]

Look in the mirror.

[Renee]

Do we want to party today or not? That's like, you know, that, that, that's kind of. They call it vibe coding. I was a vibo guy. It was just. How do I feel that day?

[Sam]

Yeah. So the woman who made this, I think her name's Aja. She. She was an engineer at the Athletic, like a software engineer at the, at the media company the Athletic. And I guess on the side, she just built this, like, for her own pain point. And then I think it took off in like the Reddit communities and just off of Reddit and then some tiktoks about it. It's gotten downloaded like 100,000 times. Got this paid subscription, crossed a million in ARR. What Niches and riches, man. Like, this is. Riches and niches is like just such a simple, just problem solution app, right? That, that, that somebody realized, okay, if, if Ozempic is the next big thing, right? If these GLP1s are the next big thing, I don't know how many people take them. I think it's like 40 million people or some like really big number of people who now all are on some schedule. And realizing that you could build an app just for that population is a, a smart idea.

[Renee]

Have you seen like the Oscars and the Grammys and things like that? Like, everyone looks great.

[Sam]

Is losing weight quickly.

[Renee]

Is, is it. Is. Are they illegal in sports?

[Sam]

I don't think so, no.

[Renee]

Ah. I mean, it's kind of a. Kind of like a.

[Sam]

It definitely you lose like muscle mass. Right? So I don't think athletes would really care too much about this.

[Renee]

You cannot lose you. I'm not a scientist, but you obviously you can. If you eat enough protein and you lift weights, I think you can maintain. It basically just makes you not eat. So if you can say like, yeah, but I'm going to eat and I'm going to hit my protein and I'm going to lift weights even though I don't want to eat today. Yeah, you could. You could keep protein. It's just. You don't want to eat. You're full.

[Sam]

Let me see. Let me ask you a random question. I was watching this video today about somebody was speculating that LeBron. LeBron does, like, whatever.

[Renee]

I saw the Lance Armstrong thing about it.

[Sam]

So Lance Armstrong was talking about it. Chill. Sonnen has talked about it. Cha's like, yeah, we have the same drug guy. I know. I know what he's taking. I'm not going to say, but I know he's taking. But chill. Also like a professional troll. So you don't know when he's being facetious or was a drug cheat. Yeah. But also did use, you know, performance ANC drugs when he competed. And he was basically like, he's on EPO and like, you know, you would take. If you. If you wanted to do what he's doing, if you wanted to be doing tomahawk dunks at age 40 in the NBA, like, you know, playing 30 minutes a game and averaging 27 points or whatever, like, you would do this. And. And I actually just was thinking about this. In, like, the world of business, is there peds at business? And, like, how would you feel about people doing that?

[Renee]

Have you ever taken Adderall or Ritalin?

[Sam]

I've never taken it, but I know I have several friends that do it to. To focus, to be more productive.

[Renee]

I don't do any. I don't do any drugs. But 10 years ago, before I got sober, I, for some reason, a doctor gave me a Ritalin prescription. I have no idea why. I don't remember how what happened, but I got it and I took it for about four days. And on the fifth day, I had, like, a mental breakdown. It made me too speedy. I was like, maybe anxious. I'm like, I'm going crazy. This is horrible. And I was like, I'm never taking this crap again. But those four days, I was on fire. I was, like, laser focused and I felt on top of the world. And so obviously a lot of people take this and I would not feel bad if my competitor took it. Is that what you're asking?

[Sam]

I just. I don't know. Like, in sports, it's definitely seen as. I think for most people, when they would hear about an athlete doping or cheating, it'd be literally like, you're cheating and it's a tainted record. Right.

[Renee]

But I think. I think those drugs should be legal in sports a little bit. Do you think that?

[Sam]

Okay, so. So you would. You think in. In business, you. I guess there's two questions do you think a lot of people are taking this type of stuff? I remember Sam Bankman, fried had the.

[Renee]

Like, the patch, I think huge amount of people. Dude. I think there was a joke on Reddit. There was a guy who was like, I'm naming my daughter Vyvanse because I love this drug so much. Yeah, I think there's a. Yeah, I think everyone. I think if you're under the age of 30, I would assume that you're taking it.

[Sam]

Oh, wow, that's crazy. That's. You think it's that popular?

[Renee]

Yeah, I think that I am now a very wholesome, straight edge person, and I think you have always been that way, so I think perhaps we don't.

[Sam]

Just naive, dude. I didn't even. Like, nobody. Nobody offered me any. I didn't. I didn't get any. It's not like I'm like, I think that superior. I just didn't even know.

[Renee]

I'm not. I'm not saying that it's morally superior to be this way. I just think that you and I have never. Well, since I've known you, I have never partied, and you have never partied or at least been part of, like, the drug or alcohol scene. Really. And I do think most people, it's like getting weed, you know, like, oh, like, I can't sleep, and the doctor's like, gotcha. I understand. Do you know what I mean? Like, waking, like, Right. Yeah, that's how I think it is.

[Sam]

The closest thing I have to that is like, calling my dog a service animal so I can, like, you know, take her into some place.

[Renee]

Dude, I. So when we were younger, our parents would, like. My parents gave me Ritalin because, like, every boy who couldn't sit still in fourth grade, they were like, oh, you, You. You have an illness, son, and we need to keep you from standing up from the chair. And, like, you know, you. You. You have to take this pill. And I remember taking the pill in fourth grade, and after, like, a few months, I'm like, I didn't have, like, the vocabulary to explain to my mother, but I was like, this is making me sad. Like something was going on. And so she was like, oh, this is crazy. What are we doing? But I remember taking it. It changes you. And I do think that when I took it as an adult, it felt like I was on EPO and I was having to do the Tour de France. Like, it felt. I'm like, oh, I understand how this is like a ped. Did you see how Chamath wants to Come up, which I don't really respect a lot of what he says, but do you see how he said he wanted to have the ped free poker?

[Sam]

Oh, yeah, yeah. He was saying, like a no Adderall poker tournament, basically.

[Renee]

Yeah, yeah, that's. That's sort of intriguing. That's.

[Sam]

Dude, I must just be sleeping on this. I. I didn't realize this was as. I have a couple of friends who I know they were. They told me, like, oh, yeah, I'm gonna stop doing that. I was like, oh, you've been doing that. What is that? Why? For what? Like, you know, it didn't even really occur to me. I guess this. I. As you guys are saying this, I'm realizing that. Oh, I've probably just been foolish about that.

[Renee]

Yeah, it wouldn't surprise me. Okay, so, like, what do you call the listeners of this pod? The yuppie class. Like the white collar class or whatever. I would bet that 30% of the people between the ages of 22 and 35 who are in this white collar or yuppie or Henry class are on ADHD medications. That's my prediction. 30%. It's a lot, right?

[Sam]

If you're on that Addie in the comments, let us know. We're gonna pull the YouTube comments right now. Natty or Addy, I had friends that.

[Renee]

Would buy in the Silk Road. Can you even buy it online? I guess you don't even need to buy it online anymore. You just go to your doctor.

[Sam]

But there's probably, like, an Adderall toothpaste at this point. And if not, great idea.

[Renee]

Yeah, that's. Yeah.

[Sam]

Brush in a rush.

[Renee]

Let's go 10 out of 10. 10 out of 10. You nailed that one. All right, that's it. That's a pod.

[Sean]

I feel like I could rule the world. I know I could be what I want to. I put my all in it. Like, no days off on a road. Let's travel. Never looking back.

[Sam]

Hey, Sean here. I want to take a minute to tell you a David Ogilvy story. He's one of the great ad men. He said, remember, the consumer is not a moron. She's your wife. You wouldn't lie to your own wife, so don't lie to mine. And I love that, you guys, you're my family. You're like my wife. And I won't lie to you either. So I'll tell you the truth. For every company I own right now, six companies, I use Mercury for all of them. So I'm proud to partner with Mercury because I use it for all of my banking needs across my personal account, my business accounts, and anytime I start a new company, it's my first move. I go open up a Mercury account. I'm very confident in recommending it because I actually use it. I've used it for years. It is the best product on the market. So if you want to be like me and 200,000 other ambitious founders, go to mercury.com and apply in minutes. And remember, Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve bank and Trust Members FDIC all right, back to the episode.