How Does 81-c Select Companies To Partner With?

The Silicon Valley dream is still alive because hype is more exciting and important than a company’s long-term value.

Too many companies are built on hype and speculation instead proven financials. It’s why so many startups eventually tumble down from their brief reign at the top of everyone’s minds.

Experienced entrepreneurs make businesses successful. And at 81-c, we understand that the founders and the businesses who join us drive our company toward future successes. But there’s a cold hard truth that most people overlook: not everyone can (or should) be an entrepreneur.

Anyone can adopt an entrepreneurial mindset to better guide their lives. This doesn’t mean that everyone has to run a business, but they should have the opportunity to invest in the people who do. Both the business owners and the people who invest in them foster economic growth.

81-c helps successful businesses access resources and capital they otherwise wouldn’t be able to. To help you understand how it works, we’ll walk you through our business model, our company selection process, and the reasons why we onboard specific companies to help them meet their long-term goals.

 

What does the 81-c model look like?

Our business model comes from our early interest in blockchain merging with our focus on social good. It reflects our dedication to providing businesses with the resources they need to succeed.

We know that established private companies aren’t as risky an investment as startups. Their proven history of positive cash flow shows more potential for growth and scale with our model. No business venture comes without risk, but we think the reward outweighs this risk.

We created the Entrepreneurial Consolidation Model based on our previous experience. Dan’s consolidation efforts, Jess’ global scaling experience, and Gabie’s business process knowledge went toward creating a model that identifies top companies with high potential for growth. We’ve found businesses that meet certain standards are the best fits for this model.

It’s not for startups or fixer-uppers.
 

What criteria are businesses up against?

To be clear, we do not focus on businesses in a specific industry. We are proudly industry agnostic. Focusing on a particular niche would limit our ability to work with the best companies and the strongest entrepreneurs.

When we look for a business to fit within our model, we consider the following factors:

  • Is the company led by visionary entrepreneurs and top talent?
  • Do they have a history of established revenue?
  • Does the company have a valuation between $2mm – $20mm and do they have greater than 10 percent net profit?
  • Is there a straightforward growth strategy?
  • Do they have an established management team in place?
  • Is there a clear display of ownership and company stakes in a cap table?
  • Are they interested in a roll-up business model?

These guidelines aren’t set in stone, but they’re valuable for bringing businesses into our model. We’ve found that companies focused on stability and long-term growth work best.

 

What else qualifies companies to be part of 81-c?

There are three additional factors that guide us in choosing companies:

Industry leaders

Because we’re not focused on any particular industry, we get to be flexible in who we work with. We strive to work alongside people who have an entrepreneurial mindset because it’s a trait that we pride ourselves on. We want to see a solid business strategy in conjunction with a personal desire to grow, both personally and professionally. These are the people that mesh best with our model.

Growth

Many incubator ideas and startups are still in their infancy stage and need a lot of TLC before they’re ready to launch (if ever). We don’t work with half-baked companies because their shaky foundations won’t support the growth we demand of them. We want to work with businesses that have the highest opportunity for maximizing value. This means we want the entrepreneurs and management teams who will dominate their industry.

Risk-averse

We want to work with a diverse collection of companies. If we focused on one specific industry and that industry took a hit, it could spell disaster. We work with a diversified mix of companies to manage risk and protect our business units, our investors, and our company as a whole.

 

Fostering entrepreneurship with a support system.

We use our foundation to help the right businesses access previously unavailable capital and resources. Conventional IPOs are too expensive and time-consuming for many small but successful businesses. With us, they have a new way forward.

We’re proud to pioneer a system that reminds people entrepreneurship is built on real results, not optimistic ideas and hype.