Am I a VC Now? (God no)

I’ve long thought that there are hundreds if not thousands of cash flowy companies that can be started, or bought & transformed with an expert understanding of global talent & AI/Automation.

The below opportunity fell into our lap, so I posted about it on Twitter.

Mark and I connected, and he was stoked to take a run at it.

I have no idea if this will work - but it’s a fun experiment of interesting opportunity + smart dude + Sagan Engine.

Asymmetric upside that doesn’t require a gazillion dollars and 5 years to see if it’ll work.

If this works, expect more!

Here’s Mark’s background (what a handsome bastard, makes me SICK).

Mark Delaney is a former Special Operations Team Leader and military veteran. With an MBA from the University of Virginia's Darden School of Business and experience in both military leadership and business development, Mark brings a unique perspective shaped by his service, including significant time in Northeast Syria where he witnessed firsthand how small businesses can revitalize communities devastated by conflict.

Mark's leadership philosophy appears to be shaped by both successes and failures, notably his experience at Army Jumpmaster School where an initial failure and his commander's continued trust taught him valuable lessons about perseverance and leadership. His professional background includes leading soldiers in the 82nd Airborne Division and working as a Civil Affairs Team Leader, where he coordinated with various organizations and governments to deliver humanitarian aid and implement security programs in the Middle East. Beyond his professional pursuits, Mark is married and enjoys outdoor activities with his wife and their two dogs, Kismet and Titus.

The below is a post from Mark on Twitter today. @markbdelaney

(Mark writing now)

Here is the fun Twitter/X story of how I connected with @MatznerJon and got into starting a tile business.

Setting:

It's mid-August 2024. Just a few weeks prior, an acquisition deal I spent 9 months on ended rather abruptly. I had a commitment letter for an SBA loan, investor capital lined up, and we were 98% done with the purchase agreement.

I was getting a great price for a company that had a ton of offers

and it was a business I felt comfortable with and knew how to add value to right away.

All in all, I had a killer deal.

I also had recently gone to a trade show for the business and, at the seller's encouragement, represented myself as the CEO of the business. That's how confident we all were it would get done.

Then some new partnerships and customers came in and the sellers backed out, not wanting to sell at what they saw as a critical moment.

So the deal died and I was back to square one in my search.

(Jon enters, stage left)

I'm on the bird app and see Jon share this post:

I'm in the mood to dance and after this deal fell apart, I was still looking for a good opportunity to pursue.

So I message Jon and he sent me a Loom video explaining the opportunity:

A PE Buddy of his has a PortCo with a problem:

They end up with unsold inventory (in this case: high-end home tile) and don't have a good way to get rid of it.

They tried some "clearance" routes but felt it diluted their brand.

They also started an e-commerce business line but it wasn't what they were good at.

Stuff like the above

Solution: we sell it

Here is where it gets really interesting.

Always wanting to show the power of global talent, Jon said:

"I've got this great access to talent through @SaganPassport

I also have all the best practices and knowledge to get a remote business going fast. We can put up a little bit of capital and get this off the ground rather quickly."

Essentially acting like a venture studio.

(And please everyone call it that- Jon loves being branded a VC 😉)

Entrepreneurs in Sagan's orbit bring ideas and problems.

Jon can find someone to head up a business to meet the need (in this case, me) and use Sagan's network to get talent quickly (and cheaply) to start the business.

Because the cost of talent is so much lower, so are the capital requirements at the start.

It takes less time to get payback and get profitable for everyone.

We don't need a unicorn to get great returns.

Win-win-win for all involved.

So here we go.

Come check us out at tilesales.com

Pretty cool!

Yallah Habibi,

Jon