"If you create it for yourself, it’s art.

If you create it for others, it’s business."

@naval

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🚨 192% Growth SPAC 🚨

💸 Katapult provides leasing solution for e-commerce websites

🔥 It enables non-prime customers to lease durable goods online

🚩ALL founders left and $CURO owns 50% of Katapult

⁉️ What is hidden behind the $FSRV SPAC ⁉️

Here is an EASY thread 👇


Katapult was founded in 2012 and was initially called Zibby and operated by Cognical

💸 By 2015, it had raised $ 10m in equity and debt from VC funds such as Tribeca Venture Partners and Blumberg

Cognical was founded by 👇

Brandon Wright - a Cornell MBA who later founded @payfully

Ashutosh Saxena - a PhD in AI from Stanford (awards:
https://t.co/YfViWWXqru)

Chinedu Eleanya - a serial entrepreneur who later founded @GetMulberry which sells extended warranty to shoppers

Zibby was a “Lease-To-Own” service designed for durable goods & products (furniture, appliances, electronics)

1️⃣ When customers purchase an item online, Zibby retains the rights to this item

2️⃣ Zibby rents the item to the customer

3️⃣ The customer can decide to purchase the full ownership rights of the item at any time

This model proved successful and Zibby was incubated by Cornell
Introducing "The Balloon Effect"

Many businesses & creators have experienced a similar pattern of success.

From @MrBeastYT and @MorningBrew to @oatly and @Rovio.

Let's break down what "The Balloon Effect" is and examples of it in real life.

Keep reading 👇


1/ What is "The Balloon Effect"?

It is a particular pattern of growth.

It is not Instagram's growth trajectory.

It is not
https://t.co/5axsTUKek6's growth trajectory.

"The Balloon Effect" is defined by several years of hard work & grit complemented by slow, linear growth.

2/ And then one day, one month, or one quarter...everything changes.

A business hits a tipping point and its trajectory shifts entirely.

Gradual growth turns to exponential growth & your brand and your size explode.

Like a step function.

3/ Now, you're probably wondering.

Why is it called "The Balloon Effect"?

Because filling/popping a water balloon follows the exact pattern I just described (and so many businesses experience).

Long unsexy slog 👉 Exponential tipping point.

4/ Initially, you turn on the faucet & water takes up space in the empty balloon.

Through effort you open the faucet, yet the results are unexciting.

But it's what must be done for water (or growth) to happen at all.

It's not sexy, but it's necessary.

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1/ Some initial thoughts on personal moats:

Like company moats, your personal moat should be a competitive advantage that is not only durable—it should also compound over time.

Characteristics of a personal moat below:


2/ Like a company moat, you want to build career capital while you sleep.

As Andrew Chen noted:


3/ You don’t want to build a competitive advantage that is fleeting or that will get commoditized

Things that might get commoditized over time (some longer than


4/ Before the arrival of recorded music, what used to be scarce was the actual music itself — required an in-person artist.

After recorded music, the music itself became abundant and what became scarce was curation, distribution, and self space.

5/ Similarly, in careers, what used to be (more) scarce were things like ideas, money, and exclusive relationships.

In the internet economy, what has become scarce are things like specific knowledge, rare & valuable skills, and great reputations.