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20VC: Andrew Wilkinson on Building The Berkshire Hathway of Tech, Sustainable vs Unsustainable Growth and The Relationship Between Money and Freedom

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Jun 22, 2020

Andrew Wilkinson, Managing Partner at Tiny Capital, shares his journey from a design agency founder to a key player in acquiring internet companies. He discusses a unique investment philosophy likened to New Zealand, focusing on resilient industries rather than high-risk ventures. The conversation dives into leadership growth, effective delegation, and the balance between growth and profitability. Andrew also reflects on managing company defensibility and the significance of immediate goals in creating sustainable value. His insights on money's relationship with freedom offer a refreshing perspective.

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ANECDOTE

Early Career

Andrew Wilkinson's tech news site took off in high school, leading to interviews with Steve Jobs and global travel.
He later moved to Silicon Valley, pretended to be an agency called Metalab, and secured high-paying clients like Apple and Google.

ANECDOTE

SaaS Ventures

Inspired by Basecamp's recurring revenue model, Andrew started multiple SaaS companies alongside his agency.
He funded these ventures with agency profits, experiencing the allure of "making money while I slept."

ANECDOTE

Founding Tiny Capital

Overwhelmed by running five companies, Andrew sold one, gaining cash and discovering Warren Buffett's investment approach.
This led to founding Tiny Capital, a holding company acquiring and nurturing internet businesses long-term.

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Andrew Wilkinson is the Managing Partner @ Tiny, a vehicle that buys, builds and invests in wonderful internet companies. Within their family of companies is Dribble; home to the world's best design professionals; MetaLab and Supercast to name a few. Tiny does also make venture investments in the likes of Superhuman, SpaceX, Pitch and Buffer. Today Andrew oversees a group of companies with over 300 employees and tens of millions in revenue.

In Today’s Episode You Will Learn:

1.) How Andrew made his way from founding a design agency in Canada to starting Tiny and building a family of companies with over 300 people?

2.) What does Andrew mean when he says, when buying companies he looks for companies like New Zealand? What qualities/features do they have? How does Andrew think about price sensitivity when acquiring these companies? What determines paying a premium price to Andrew?

3.) How does Andrew assess and analyse true defensibility within company strategies today? Why does Andrew not believe they will lose any companies? How does Andrew think about grow vs profitability? Are they mutually exclusive? When does one pour fuel on the fire and raise big?

4.) How has Andrew seen himself develop and change as a leader over the last 5 years? What does truly great delegation look like? What is Andrew's biggest weakness? What is his biggest insecurity? How does Andrew think about sink the boat vs non-sink the boat decisions?

5.) Does Andrew believe we will see the unbundling of social networks moving forward? What are the core characteristics that determine whether a social network will win? Why does Dribble have defensibility as a brand against all large incumbents?

Items Mentioned In Today’s Show:

Andrew’s Fave Book: Tao of Charlie Munger: A Compilation of Quotes from Berkshire Hathaway's Vice Chairman

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