The Art of Due Diligence and Future Investment Strategies

Episode 75: A Unlocking Skills for Tech Equity: How David Banks Leveraged 3 IPOs

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Host: Christopher Nelson

Guest: Davids Banks

In this episode of Managing Tech Millions, host Christopher welcomes David Banks, a seasoned sales executive with over 40 years of experience in technology companies like Interwoven, VMware, and Splunk.

David had a 40 year career in software sales that saw him through three IPOs, Interwoven, VMware, and Splunk.   

David built valuable skills in Tech Sales that allowed him to work in sales and sales management roles in companies like VMware and Splunk.  

After Splunk David continued building his financial company, Addison Financial LLC which is the vehicle for managing their real estate investments and hard money lending portfolio.

Connect with David Banks

https://www.addisonfin.com/

https://www.linkedin.com/in/davidlbanks/

In this episode, we talk about:

• The Importance of Networking: David emphasizes that networking is not just beneficial but crucial for anyone looking to advance their career. He states, "Network, network, network," underscoring the idea that building relationships within and outside one's profession can open doors to new opportunities. This is particularly true in the tech industry, where many positions and companies may not be widely known or accessible through traditional job search methods.
• Gaining Insight into Private Companies: One of the challenges of working with private companies is the lack of publicly available financial information. Unlike public firms, private companies do not have stock prices or detailed financial reports that potential employees can analyze. This is where networking becomes invaluable. David shares his experience of leveraging his network to gain insights into companies he was interested in, stating, "What I did was find somebody that I knew within the company, through LinkedIn, through my network."
• Validating Company Potential: Networking also allows candidates to validate the potential of a company before committing to a position. David recounts how he spoke with a sales director at Splunk, who had previously worked at VMware. This conversation provided him with valuable insights into Splunk's technology and market position, confirming that it was a company worth joining. He notes, "He was able to confirm a lot of those things and then put me in touch with other people inside of the company."
• Building Relationships for Future Opportunities: Networking is not just about immediate job opportunities; it also lays the groundwork for future career advancements. By establishing relationships with industry professionals, individuals can create a support system that may lead to mentorship, referrals, and insider knowledge about upcoming job openings. David's success in his career can be attributed, in part, to the relationships he built throughout his journey, which helped him transition from one successful company to another.

Episode Timeline:

• [00:01:33] Equity compensation and personal wealth.
• [00:05:06] Rapid IPO and equity experience.
• [00:08:36] Financial market volatility and decisions.
• [00:15:39] History rhymes in investing.
• [00:18:31] Trading skills for equity opportunities.
• [00:21:09] Virtualization technology opportunities.
• [00:27:01] Stock options and company success.
• [00:30:16] Risk of concentrated stock investment.
• [00:34:11] Startup decision-making mistakes.
• [00:37:16] Evaluating Pre-IPO Companies.
• [00:41:16] Sales leadership evaluation criteria.
• [00:48:01] Retirement and investment transitions.
• [00:49:36] Managing yourself as an asset.
• [00:53:19] Differentiating skills in AI.

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