#220 - 12 Startups That Can Make You a Millionaire (Sara's List)

Podcast Summary

• The Value of Non-Technical Roles in Tech Companies and Sarah's List: Non-tech roles in tech companies offer financial gains through job stability and potential stock appreciation. Sarah's List strategy involves identifying companies with high growth potential and securing a job there for financial rewards without the risk of starting a business.

  Non-technical roles are valuable in technical companies, and there are opportunities for significant financial gains by joining established companies with high growth potential, even for those who prefer a lower risk approach. The story of Sarah, who joined Airbnb and became a self-made multimillionaire without the stress and uncertainty of starting her own company, illustrates this concept. Sarah, who was not a risk-taker, made a list of companies where her stock could potentially appreciate significantly, and she landed a job at Airbnb. Though she didn't come in as an executive, she still saw substantial growth in her wealth due to the company's impressive valuation increase. This approach, which they've called "Sarah's list," offers the benefits of a stable job with competitive salary and benefits, while still providing the potential for substantial financial gains. This strategy, which maximizes reward while minimizing risk, can be considered the ultimate hustle.

• Financial success through stock options in established companies: Joining established businesses with smart teams and building financial independence through stock options offers a lower risk profile than starting a company from scratch. Stay informed about marketing trends to run a business efficiently.

  Not everyone needs to work long hours or carry the entire weight of a company to achieve financial success. Some people may prefer to join established businesses with smart teams and build financial independence through stock options. This path offers a lower risk profile compared to starting a company from scratch. The speakers mentioned Craiglist, Angie's List, and Sarah's List as examples of companies with a high valuation and potential for mid-level employees to become self-made millionaires or multimillionaires. They emphasized that this information is not financial advice and is based on research and predictions. Another takeaway is the importance of staying informed about marketing trends to run a business efficiently. The HubSpot 2024 State of Marketing report provides valuable insights on effective marketing strategies and can be accessed for free online.

• Modern technology disrupting traditional industries: Flexport and Zapier: Flexport and Zapier, using modern tech, disrupted freight forwarding and API integration markets, respectively, with streamlined, user-friendly solutions, gaining high valuations and customer bases.

  Modern technology is revolutionizing traditional industries, such as freight forwarding with Flexport and API integration with Zapier. Both companies have disrupted their respective markets by providing streamlined, user-friendly solutions that have gained significant valuations and customer bases. Flexport, with its modern freight forwarding software, has disrupted the fragmented and low NPS market by offering a best-in-class product, valued at around $3.2 billion, and employing about 250 employees. Zapier, which connects APIs, has bootstrapped its way to $70 million in recurring revenue and a $5 billion valuation, with about 350 employees. Both companies have shown the potential for massive growth as global shipping and ecommerce continue to expand. Their founders, Ryan Peterson of Flexport and Wade Foster of Zapier, have shown charisma and confidence in their companies' potential, which has attracted significant investment. These companies' success stories demonstrate the power of modern technology to transform industries and create significant value.

• Two Companies Defying Expectations with Minimal Funding: Zapier, a $5B company, raised $1.3B and is worth $100B+. Uniswap, a $10B+ cryptocurrency platform, has 50 employees and $10B weekly trading volume.

  Zapier and Uniswap are two remarkable companies that have defied expectations and grown significantly in value and revenue with relatively little funding. Zapier, a $5 billion company, raised only $1.3 billion in funding and is estimated to be worth $100 billion or more. Uniswap, in the cryptocurrency space, is valued at over $10 billion with a weekly trading volume of $10 billion and fewer than 50 employees. Both companies have disrupted their industries by offering innovative solutions and have the potential to continue growing at an impressive rate. When considering investments, it's essential to keep in mind the long-term potential of these companies and their ability to surpass current valuations.

• Decentralized Exchange Uniswap: Benefiting Buyers, Sellers, and Liquidity Providers: Uniswap is a decentralized exchange protocol where users exchange cryptocurrencies directly, with liquidity providers earning revenue. Over $5B in liquidity, comparable to larger exchanges, and ideal for those comfortable with chaos and risk.

  Uniswap is a decentralized exchange protocol where users can exchange various cryptocurrencies directly with each other without the need for intermediaries or a central authority. The unique aspect of Uniswap is the presence of liquidity providers who earn a portion of the revenue by adding funds to the liquidity pool. With over $5 billion in locked liquidity, Uniswap functions as a three-sided market, benefiting buyers, sellers, and liquidity providers. This company, though still small with only $11 million in funding, has reached a scale comparable to larger centralized exchanges like Coinbase. The economics of crypto make valuation and equity worth uncertain, but the potential for growth and value is significant. The ideal candidate for Uniswap would be someone comfortable with chaos, risk, and non-traditional environments. Another intriguing example is Andral, founded by Palmer Luckey, a controversial figure in Silicon Valley known for his support of Donald Trump and his previous success with Oculus. Andral, which started as a company making products for the government, offers an alternative and potentially high-reward opportunity.

• Anduril and Replit: Two Innovative Companies with Significant Growth Potential: Anduril, a tech firm specializing in gov't tech solutions, is valued at $4.6B and growing rapidly. Replit, a coding platform with 5M users, is under-valued and poised for exponential growth.

  Anduril, a tech company worth over $4.6 billion with around 510 employees, specializes in creating advanced hardware-software combinations for the government. Their primary revenue source comes from building technology solutions the government needs, such as autonomous solar-powered towers for border monitoring. With a focus on being the most technology-forward provider for the US defense budget, Anduril's potential for growth is significant, with some estimating it could be worth $20-$100 billion in the next five years. Another intriguing investment opportunity is Replit, a company valued at under $1 billion with over 5 million users, primarily programmers. Replit's rapid growth, as evidenced by its large user base of skilled programmers, positions it for potential exponential growth in the future. Both Anduril and Replit represent innovative companies with significant growth potential in their respective industries.

• A simplified coding platform for learning and collaboration: Repl.it streamlines coding by providing a web-based environment for writing, testing, and deploying code, while fostering collaboration and interaction among programmers.

  Repl.it is a coding platform that simplifies the process of learning to code and collaborating with other programmers. It eliminates the confusion of setting up a developer environment by providing a website where you can write, test, and deploy code without the need for additional installations or servers. Additionally, it functions as a social network for programmers, allowing users to see and learn from each other's code, remix it, and even monetize their projects. This creates a collaborative and interactive learning experience that can benefit both beginners and experienced programmers. The platform's growth is also impressive, outpacing that of GitHub, and it offers opportunities for non-technical roles in technical companies. Another comparison can be drawn with platforms like Zapier and Airtable, which create new categories by offering unique features and benefits that distinguish them from existing alternatives. In summary, Repl.it's combination of simplicity, collaboration, and innovation makes it a valuable resource for individuals and organizations looking to learn, create, and grow in the world of programming.

• Airtable's potential growth and missed opportunity: Airtable, valued at $5.7B, could grow larger due to similarities to monday.com, worth $18B post-IPO. Founder missed a potential investment opportunity.

  Airtable, a company valued at $5.7 billion since 2021, has the potential to grow even larger based on its similarities to monday.com, which went public at a $18 billion valuation. The founder, Howie Lou, was once invited to a mastermind dinner but the meeting never took place, potentially missing an opportunity for investment. Airtable is challenging Excel in the market, with a valuation suggesting it could be worth 20-30 times its current value. Another comparable company is Figma, which is disrupting Adobe's Photoshop with its cloud-based design software. While Airtable was once more attractive at a lower valuation, it continues to show promise as a significant competitor in its industry.

• Disrupting Giants: Figma and Rippling: Figma and Rippling, smaller companies, are disrupting giants Adobe and payroll software providers through unbundling, cloud-based services, multiplayer capabilities, and innovative solutions.

  Adobe, being one of the largest companies in the world with a market cap of $315 billion, is being disrupted by smaller companies like Figma through the trends of unbundling, cloud-based services, and multiplayer capabilities. Figma, a competitor to Adobe's Creative Cloud, is capitalizing on these trends by offering a more flexible and cost-effective alternative to Adobe's bundle. The company's growth rate is expected to be much faster than Adobe's in the last 5 years, making it a potential candidate for significant growth. Another company, Rippling, is a payroll software provider that manages devices and gives permissions, valued at $1.3 billion. Its founder, Parker Conrad, has a controversial past but brings valuable experience from his previous successful and failed venture. Rippling's valuation is considered undervalued compared to competitors like Workday and Paychex, making it a potential candidate for significant growth. Both Figma and Rippling are examples of how smaller companies can disrupt larger ones by capitalizing on market trends and offering innovative solutions.

• Buying and rolling up Shopify stores for instant liquidity: Industry veterans Raboy and Abraham's new company, Open Store, aims to buy Shopify stores for instant seller liquidity, offering a potential billion-dollar business with a strong track record and ecommerce market growth.

  Open Store, a new ecommerce company founded by industry veterans Keith Raboy and Jack Abraham, has the potential to become a billion-dollar business. The company aims to buy and roll up Shopify stores, offering sellers instant liquidity without the need for a lengthy sales process or the involvement of banks. With the success stories of Square and Opendoor under their belts, these founders have a strong track record, making Open Store an intriguing investment opportunity. Additionally, the ecommerce market is currently hot, with companies like Thrasio, which focuses on Amazon FBA businesses, experiencing rapid growth and massive valuations. Open Store's approach to the market, without the Amazon-style model, adds another layer of potential value. However, as with any investment, there is always a risk that the company may not reach its projected success.

• New Companies with High Rewards and Risks: Fair streamlines wholesale operations and Next Health automates doctor processes, both showing potential for significant growth despite higher risks

  There are several promising companies and projects, some of which the speaker has personal involvement with, that could offer significant rewards despite carrying higher risks than more established businesses. One such company is Fair, a wholesale marketplace for retailers and brands, which streamlines the process of setting up wholesale operations for businesses. Another intriguing venture is Next Health, which can be thought of as a "Shopify for doctors," automating the process of filling out medical forms and allowing easy access to medical records for both doctors and patients. With ambitious plans and substantial funding, these companies show potential for substantial growth.

• Investment and employment opportunity in privacy compliance: OneTrust, a GDPR compliance company valued at $5B, is a promising investment and employment opportunity in the growing privacy compliance market, with Pallet's job board offering a platform for job seekers to explore opportunities.

  OneTrust, a GDPR compliance company based in Atlanta, is a promising investment opportunity and an excellent choice for those seeking employment in the tech industry. With the increasing importance of data privacy and the complexities of complying with various privacy laws worldwide, companies like OneTrust that offer solutions to help businesses stay compliant are in high demand. The market for privacy compliance solutions is expected to grow significantly, and OneTrust, valued at $5 billion, is one of the fastest-growing companies in this space. The risks and fines associated with non-compliance make it a worthwhile investment for companies, and a lucrative opportunity for employees. With the launch of a job board featuring curated companies, Pallet is set to provide a valuable platform for job seekers to explore opportunities at innovative and forward-thinking companies like OneTrust.