Becket U curates the best resources in Math, Physics, Computers, Microeconomics, Game Theory, and Persuasion. With this knowledge, you will understand how the world works.
Undiscovered #073: Great Movie Theory, Best Path to Founder Wealth, Your Life in Weeks
#073: Great Movie Theory, Best Path to Founder Wealth, Your Life in WeeksHi All! We are pleased to welcome you to this week's edition of Undiscovered, a newsletter with exclusive resources and insights expanding from the material found on our main site - becketu.com. This week, we will take a look at how we are all searching to make a 'great film', the most under-discussed path to founder wealth, and a project I have been wishing would come to life for a long time. The "Great Movie Theory" of CreationFrom @anuatluru: Elon Musk was captivated by Star Wars at age 6. Musk, Trump, and Jobs inspired the persona of Tony Stark, the genius billionaire in Iron Man. Stark industries, in turn, inspired Palmer Luckey's defense startup Anduril (named after a sword from The Lord of the Rings). Mark Zuckerberg connected the world with Facebook, but The Social Network Immortalized his rise, inspiring an entire generation of entrepreneurs. And, of course, Sam Altman and many others want to bring Her to life. Man's pursuit of greatness is the pursuit of a great film.
The stories we are exposed to, become us in a certain way. Because of that, it's important we continue striving to understand story, find examples of the ones that motivate us to dream and act big, and embrace a life worth living. ...Speaking of Great FilmsOne of the most inspiring stories from this years' Oscars, which was downplayed in traditional media, but celebrated by many paying attention online, was the winner of Best Animated Feature, Flow. Flow was the first independently produced animated film to win the award, and Latvian director Gints Zilbalodis is a celebrated hero among the community. Even before winning the awards, Gints was regularly sharing how he produced every aspect of the film, helping others. Gints didn't wait to tell his story. He went out, and made his "great film", and we couldn't be happier the rest of the world is paying attention. Best Path to Founder WealthRohit Mittal on the best way to founder wealth: The startup world pushes “unicorn or bust” narrative, but I’ve been watching a different playbook create more $10M-aires:
• Build companies with <$5M raised (max $10M raised)
• Reach $5M+ in ARR • Achieve breakeven operations • Exit for 3x-10x ARR ($10M-$50M) • Walk away with $10M-$25M personally • Pay ZERO federal taxes (thanks to QSBS) I’ve seen several deals like this close in just the last few months, all with founders who built for 5 years or less.
The economics are surprisingly straightforward:
Keep dilution minimal (80%+ ownership)Focus on sustainable growth to profitable $5M+ ARRExit in year 5 to maximize QSBS tax benefitsTake your 8-figure outcome. Keep most of it.
Compare this to the “unicorn path” reality:
Jason M. Lemkin of SaaStr puts it perfectly: “Most founders with ‘huge exits’ on paper walk away with far less than you’d think after multiple rounds of dilution, liquidation preferences, and taxes.”
Just look at the numbers I’ve seen firsthand:
• “9-figure exit” → 65% to investors
• 35% split between founders/ESOP • $4M-6M per founder after taxes • 7-8 years of your life • Endless board meetings and fundraising • Loss of control and autonomy Meanwhile, the “middle path” founders:
• Keep majority ownership
• Build profitable businesses on their terms • Run lean teams (<10 employees) • Choose their own exit timing • Maintain control throughout • Walk away with life-changing money As Tim Ferriss noted: “The question isn’t ‘how can I build a $1B company’ but rather ‘what kind of company will enable the lifestyle I actually want?’”
The Section 1202 QSBS exclusion is the hidden superpower here. Hold qualified shares for 5+ years and potentially exclude up to $10M (or 10x your basis) in capital gains from federal taxes.
Real example: A SaaS founder I know built to $6M ARR over 4.5 years, waited until the 5-year mark, then sold for $42M. With 85% ownership and QSBS qualification, they walked away with over $22M completely tax-free.
The startup ecosystem’s obsession with unicorns blinds founders to this path.
David O. Sacks (one of the prominent VCs): “For most founders, a $20-50M outcome with high ownership is far better than a slim chance at a unicorn exit with single-digit ownership.”
The insight: If you hit $5M ARR and growth is plateauing, instead of raising more capital and diluting further, actively seek an exit.
Once you have your first exit, you can play a different game with your next company. You’ll have:
• Your own capital to invest • Credibility with co-investors • Experience to avoid mistakes • Freedom to truly swing for the fences AI enables founders to build where they keep 85% of a $30M exit rather than fighting for 5% of a “unicorn” that requires 10 more years and a large pref stack to realize.
We also consider this to be a more sound way to ensure you are always working with people you enjoy the process of building wealth. The key here again is to really think about the questions posed byTim Ferriss: Keep a Work JournalOne of the most essential habits to develop, regardless if you are working with a company or yourself, is to keep a "work journal". Essentially what this would be, is a way for you to reflect on your professional life and shape the future trajectory of it. Something I did that completely changed my career in its early years: I kept a work journal. I noted down decisions I made as an IC and manager, decisions my managers made, the outcomes, the impact, and what I learned. I wrote down those "inside thoughts" we all have during meetings. I wrote down the advice I HATED and why, as well as the helpful stuff. I wrote down pivotal interactions with clients, peers, leaders, and direct reports. I wrote down specific phrases different leaders liked to use. It was almost scientific—I applied basic tactics I learned in science/psychology classes about field observation. I still reference that journal to this day. Life WeeksI personally keep a paper version of the Tim Urban, Your Life in Weeks calendar. Some consider it to be a scary way to track your mortality, but personally, it allows me to embrace my mortality. One of my favorite side projects I have come across recently was from Cory Zue, who essentially took this idea and made it into an app. It's called lifeweeks.app, and on it you're able to color code between different life chapters, highlight key events on the timeline and share it with friends. It's a great reminder that we don't have as much time left as we think we do, and we should live each day with a sense of urgency. This is something I've been wanting to make personally for a long time, and I'm glad someone finally brought it to life. P.S Can you please respond to this email and bring it into your 'primary' inbox? You can say 'Hi!', tell us the last book you read recently, or what your favorite resource was from above. We appreciate any feedback you are able to provide here. What do you want more or less of? Other suggestions? Feel free to reach out to us on Instagram and give us a follow there, tag your friends on our posts, and please forward this newsletter along to anyone else who would enjoy it. Disclaimer: Becket U is an Amazon Associate and purchases through Amazon links may earn a small affiliate commission, but the price is the same for you. We only recommend books we love and think you would love, too. Always wishing you the best, J.B. |
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Becket U curates the best resources in Math, Physics, Computers, Microeconomics, Game Theory, and Persuasion. With this knowledge, you will understand how the world works.
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