#034 - Xavier Helgesen on Holding Companies, The Publishing Industry, & Building Things That Last
Sep 13, 2023
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Xavier Helgesen, Co-founder of Enduring Ventures and founding CEO of Zola Electric, discusses holding companies, the publishing industry, capital allocation, focus, reinventing ourselves, building things that last, parenting, and more.
Focus on one thing allows for greater success and growth
Understanding capital allocation is crucial for entrepreneurial success
Build sustainable and valuable organizations that make a positive impact in the world
Deep dives
The Potential of Holding Companies in Business
Xavier Helgeson discusses the impetus behind starting his holding company, Enduring Ventures. He shares his desire to build a cash flow-generating business that allows him the freedom and ambition to grow without constraints. He mentions the advantages of diversification and the complexity of the capital allocation game.
The Importance of Focus in Entrepreneurship
Helgeson highlights the significance of focus for founders. He emphasizes that being focused on one thing allows for greater success and growth, while spreading oneself too thin across multiple businesses can limit potential. He shares how having more businesses actually grants him more personal freedom and flexibility.
Capital Allocation as a Complex Game
Helgeson delves into the complexity of capital allocation and how it is a critical skill for entrepreneurs. He discusses the advantage of understanding the financial aspect of business, such as costs, impacts, and risks. He emphasizes the importance of being a capital allocator, as it determines the success and growth of a business.
The Flaws of Venture Capital
Helgeson critiques the venture capital industry, highlighting its overfunding and lack of financial discipline. He believes that many venture capitalists push companies towards vanity metrics and unnecessary spending, often neglecting sustainable business models. He suggests that alternative financing models should be explored to rectify these flaws.
The Power of Building and Growing Organizations
Helgeson states that one's contribution to society is the sum of the benefits provided by the organizations they create, fund, or grow. He emphasizes the importance of building sustainable and valuable organizations that make a positive impact in the world. He highlights the need to focus on long-term thinking and patient growth to create lasting value.
Xavier Helgesen is the co-founder of Enduring Ventures, a long-term holding company. He also co-founded Better World Books and was the founding CEO of Zola Electric. We talk about holding companies, the publishing industry, capital allocation, focus, reinventing ourselves, building things that last, parenting, and more.
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(02:43) Why run 20+ businesses instead of 1?
(04:38) Everyone is a capital allocator whether or not they know it
(07:13) Impact of VC on startup growth trajectories & sustainability
(16:18) What's misunderstood about building holding companies
(19:29) Long term thinking
(23:40) Focus is the founder master skill
(27:56) Work in the medium, not the abstraction
(31:14) The fear of reinventing ourselves
(36:02) Build organizations that last
(38:03) Legacy publishing & acquiring Scribe Media
(46:22) Building an audience
(52:29) Should books evolve?
(56:06) Why Africa is the future
(01:00:41) Children reintroduce parents to play
(01:03:00) How can you be more human?