Martín Escobari - Inside General Atlantic - [Invest Like the Best, EP.449]

The most driven entrepreneurs are often fueled by foundational traumas. Understanding a founder's past struggles—losing family wealth or social slights—provides deep insight into their intensity, work ethic, and resilience. It's a powerful, empathetic tool for diligence beyond the balance sheet.

During technological bubbles or periods of intense change, it's possible to accomplish seven to ten years of work in one. This 'dog years' effect offers a unique opportunity for compressed learning and value creation, even if the specific venture fails. The key is embracing the frenetic pace.

Structuring compensation around a single, firm-wide P&L, rather than individual deal performance, eliminates internal competition. It forces a culture of true collaboration, as everyone's success is tied together. The system is maintained as a meritocracy by removing underperformers from the 'boat.'

For short-term mentoring to be impactful, it must be painful. The goal isn't gentle guidance but to make an overlooked opportunity or flaw so painfully obvious that the mentee is jolted into action, partly to prove the mentor wrong. It's 'crash therapy'—uncomfortable but highly effective at driving change.

Don't chase every deal. Like a spearfisherman, anchor in a strategic area and wait patiently for the 'big fish'—a once-in-a-decade opportunity—then act decisively. This requires years of preparation and the discipline to let smaller opportunities pass by, focusing only on transformative deals.

Elite decision-making transcends pure analytics. The optimal process involves rigorously completing a checklist of objective criteria (the 'mind') and then closing your eyes to assess your intuitive feeling (the 'gut'). This 'educated intuition' framework balances systematic analysis with the nuanced pattern recognition of experience.

A hybrid evergreen fundraising model, combining periodic standard funds with continuous managed accounts, eliminates fundraising cliffs. This allows a firm to deploy capital counter-cyclically, buying when assets are on sale, rather than being forced to deploy or liquidate based on an artificial timeline.

While international markets have more volatility and lower trust, their biggest advantage is inefficiency. Many basic services are underdeveloped, creating enormous 'low-hanging fruit' opportunities. Providing a great, reliable service in a market where few things work well can create immense and durable value.

Standard reference checks yield polite platitudes. To elicit honesty, frame the call around the high stakes for both your company and the candidate. Emphasize that a bad fit hurts the candidate's career and wastes everyone's time. This forces the reference to provide a more candid, risk-assessed answer.