Welcome to the growth stacking podcast. This is Dan Martell. We're investing $100 million in

2024 and this is the exact strategy on how we'll buy 12 companies in 12 months. I'm literally

bringing you behind the scenes, showing you the internal documents, the scorecard we use to evaluate businesses,

the structure of how we put together an offer, what we do in the first 100 days after we buy a

company so that if you invest in companies buy companies, you'll be able to follow our

playbook to get incredible results. I've done this many, many other times. I've never shared

this before. Here's the process we'll be using. Number one is vehicle. To get the vehicle right, we need to understand the four investing

vehicles. The first one is angel investing. This means that you have a lot of money and you invest

in companies to buy equity in those businesses. I've done over 125 angel investments myself. I really love this process

because I get to coach and advise great entrepreneurs building innovation. But for what I'm doing

with $100 million in capital, this process is going to take way too long. The other option that I

evaluated is private equity. Private equity is buying companies usually with a roll-up strategy so that you buy

a company and create a platform around it, meaning that if it's a real estate software company,

I buy one of them, and then I might buy five or six or seven bolt-ons, and that aggregated

amount of companies is worth more than I sell it to the next person.

The third option I evaluate is venture capital.

Venture capital works in the concept like an angel investor where you pull investors money,

typically called limited partners or LPs, and then you have the fun and you find companies

that you want to write bigger checks too.

The cool part about being a venture capitalist is you get 2% typically management fees for just managing the capital. Like whether you get a return or not, you get 2% of the total fund size. So if it's $100 million, you get $2 million just to manage that pool of capital to invest in other companies. Now, if you don't do well, no other investors are going to give you more money to invest in more companies. So each fund has to perform.

Okay, I've already invested personally as a limited partner in about five other venture capital

funds. The fourth option is holding company. And a holding company is essentially the opportunity

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