Co-Build a VC Fund in Public: Day 7 (Short term vs Long term) Beckham hacked the money-making algorithm back in 2007 because of his long-term calculated actions. Most people I interact with think too short term. For most it is about instant gratification - instantly doubling money, gaining fame, and getting a partner. Very few people I come across truly think long-term. Beckham made a wild gamble by leaving Real Madrid (the richest club in the world) for Major League Soccer (MLS), US or that is what everyone thought….. Moving to LA Galaxy was a surprising choice but as it turns out, he was just plotting his biggest career move! The contract for US$ 250M turned out to be a billion-dollar lesson for each one of us. Here is the story: When Beckham joined MLS, it was seen as a downgrade by many, but he saw a future and the potential to grow something new. Here’s the genius move; he negotiated an option to purchase an MLS franchise for US$ 25M. A bet on the future of Soccer in the U.S. or a calculated risk as many would say, which paid off sweetly. Often, the best opportunities lie in the markets that others will overlook. So, remember, the immediate returns don’t define the real value, but the market’s long-term potential does. Beckham received a percentage of all the revenue streams (from merch to concessions) by signing the contract. This is not just a deal but a path paved into passive income. Beckham also launched a club, Inter Miami, and just within 2 years, it was worth over US$ 500M. I am impressed by the non-linear thought process leveraging long-term opportunities leading to subsequent financial returns. Inter Miami signed Lionel Messi in 2023, it was not just a player acquisition, but it was a groundbreaking move! This contract led to an increase in Inter Miami’s valuation to over US$ 1.5B. Beckham’s 10% share in the club made him the highest-paid footballer at that time. This is a clear example of how strategic alliances can exponentially amplify your returns! He saw an opportunity when everyone else saw a risk and this was his masterstroke. Sometimes the fiercest moves lead to the greatest reward. What are the other stories of such risky bets - that might or might not have paid off? We continue to build companies with founders who are building for the longer term at Ortella Global Capital - OG Capital, India's only fund that co-builds companies with Gaurav Verma and Rajvardhan Mohite #OGCapital #Ortella #Ortellaglobalcapital #OGfamily #OGteam
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