Mainstream is flush with cash. Millions of dollars flood into startups every single day and billions annually. There is more funding for mainstream startups than there is market cap for the entire adult industry combined.

When you read the news of those billion-dollar buyouts, however, not all is what it seems. In a lot of cases, the big sticker price is a lot higher than the actual amount paid for a business. This is because there are earn-outs directly tied to metrics like revenue and profit projections, and user acquisition targets. Oftentimes, a founder is required to stay to guide the project for several years. If they miss their targets, or leave, that cash and those stock options all evaporate into air. This was the case when the late Tony Hsieh walked away from millions of dollars after he left AdExchange following its sale to Microsoft for $250 million.

Investors are hungry for good investments. Last year in 2021 I did an investment that moved quickly from raising initial capital, to acquiring companies, to going public within 10 months. We rang the bell at one of the major North American stock markets and the investment immediately tripled in value. That quick and easy money is the dream of event venture capitalist. The company has barely sprouted wings and it is busy rolling in acquisitions into its proprietary platform and earning 8-figures per year in revenue. [Continue Reading in XBIZ Magazine]