I think we’re going to see *a lot* more companies shaped like http://www.zeusliving.com , where they are not just Internet-enabled frontends on underlying property management but eat the interesting parts of the underlying stack.
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Agree - and think you’re both going to see (some) VCs create new types of funds for more capital intensive businesses + more PE firms moving down the stack. Generally, believe there will be new wave of entrepreneurs who think beyond just preferred equity from valley VCs.
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Capitalize and lever up all capitalizable assets, build tech enabled service businesses on high margin services on top. Preferably aggregate demand
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Happy to discuss! ;)
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According to the website, Zeus signs master leases, not management agreements. Remember, a lease is a liability. Landlords lend capital not in the form of cash, but real estate. They earn a return not in the form of interest, but rent. That’s the “creative” capital.
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The only problem though: If you properly capitalize their leases onto the balance sheet, they’re running a highly levered company. Very risky business model. This is the same gripe everyone intuitively has with WeWork.
End of conversation
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