Signals by AlphaSense

Episode Summary

In this episode of Signals, Nick Mazing sits down with Nelson Chu, Founder and CEO of Percent. They dive into the world of private credit, an asset class growing in popularity. Chu, who started his career at Merrill Lynch and BofA, shares how his platform is revolutionizing the way borrowers tap into the private credit market.

Chu explains how Percent has been filling a gap left by banks since the 2008 financial crisis. With technology, they're enabling borrowers to raise money faster, more efficiently, and transparently. Chu also discusses the challenges of building compliance attestation tools, order book management systems, and asset surveillance tools. Nelson also discusses building out a three-sided marketplace, bringing together borrowers, underwriters, and investors, and growing it to $1.2 billion in funded loans. 

The conversation wraps up with a look at the future of private credit. Chu is optimistic, citing regulatory changes and the rapid growth of private credit as reasons for his confidence. He also shares how Percent's technology empowers borrowers, investors, and underwriters to collaborate more effectively. This episode offers a deep dive into the evolving landscape of private credit and the role of technology in shaping its future.

Guest-at-a-Glance

💡 Name: Nelson Chu

💡What he does: Founder and CEO

💡Company: Percent

💡Noteworthy: Nelson brings a traditional finance background and a vision for revolutionizing private credit.

💡 Where to find Nelson: LinkedIn 

Key Insights

Private Credit: A Powerful Tool for Borrowers

Nelson discusses the potential of private credit as a tool for borrowers. He explains how Percent empowers borrowers in need of debt capital to tap into capital markets using technology. This allows them to raise money faster, more efficiently, and more transparently. Private credit growth as an asset class is a testament to its effectiveness and potential for future expansion.

Technology: The Game-Changer in Private Credit

Chu highlights the transformative role of technology in the private credit industry. He shares how Percent's technology has enabled the company to facilitate everything from sourcing deals to structuring them, syndicating them, and ultimately surveilling and servicing them post-close. This technological innovation is set to be transformative for an industry poised to take off.

Private Credit: A Bright Future Ahead

Nelson shares his optimistic outlook on the future of private credit. He notes that the non-bank lending sector will become even more important to fill the gap created by banks leaving this space. With private credit growing rapidly and a huge market opportunity in emerging markets, Nelson believes that the future of private credit is promising.

Episode Summary

​​In this episode of Signals, Nick Mazing sits down with Parth Chanda from Lextegrity. They dive deep into data and its role in preventing corruption in global organizations. Experts estimate that 5% of an organization's revenue is lost to fraud and corruption. Data, as they discuss, is a powerful tool to combat this.

The conversation then shifts to the Foreign Corrupt Practices Act (FCPA), a fundamental US law prohibiting transnational corruption. Its enforcement has far-reaching implications, affecting US-based companies and those interacting with US capital markets.

With his rich experience as a white-collar defense attorney, Parth Chanda brings unique insights into FCPA-related laws. His expertise adds depth to the discussion, making this episode a must-listen for anyone interested in data, corruption, and the law.

Guest-at-a-Glance

💡 Name: Parth Chanda

💡What he does: Founder and CEO 

💡Company: Lextegrity

💡Noteworthy: Parth is a lawyer by training with 20 years of experience in compliance work, particularly related to the FCPA and anti-corruption. He has a rich background, starting as an intern at the World Bank, becoming a white-collar litigator, and later an in-house anti-corruption lawyer at large global companies. Now, he leads Lextegrity, a compliance data analytics and workflow platform that helps international organizations prevent and detect corruption and fraud.

💡 Where to find Parth: LinkedIn

Key Insights

Harnessing Data Analytics for Effective Compliance

Parth emphasizes data analytics to ensure effective compliance. He differentiates between traditional metrics and the insights that can be drawn from deep financial data. For example, organizations can prioritize high-risk transactions for review by risk-scoring every transactional line item in real time. Such an approach reduces false positives and provides a multi-dimensional view of every transaction. Notably, the components of the risk algorithm should be customizable to cater to each organization's unique risks and historical patterns.

The Changing Landscape of Anti-Corruption Measures

The podcast highlights the evolution of anti-corruption measures over the past two decades. Parth Chanda points out that 20 years ago, organizations could deduct bribe payments on their taxes in many countries. Today, the focus on governance has increased significantly, and the traditional approach of process checks and balances, while necessary, is not sufficient. The challenge lies in identifying the small percentage of employees who may bypass the process or collude with vendors, making data analytics a crucial tool in modern compliance programs.

Data-Driven Compliance: The Future of Anti-Corruption Efforts

Parth predicts a more data-driven future for compliance. Traditional approaches may not provide sufficient comfort to leaders about the effectiveness of their compliance programs. However, data-driven strategies, which involve comprehensive testing of all transactions, can provide more objective comfort about the level of compliance or non-compliance in an organization. The shift towards data-driven compliance is good news for leaders, as it promises more effective anti-corruption efforts.

Episode Summary

In this episode of Signals by AlphaSense, host Nick Mazing sits down with Saish Setty from Parallaxes Capital. The conversation begins with a deep dive into the world of Tax Receivable Agreements (TRAs), an emerging asset class whose prominence has grown over the last few years, and are an increasingly common feature in Initial Public Offerings (IPOs). TRAs are transferable corporate tax assets that historically have had little secondary market liquidity. Interestingly, TRAs might be the only asset class that benefits from higher corporate tax rates. 

The discussion then shifts to the valuation of TRAs. Saish explains the three main considerations when valuing a TRA: understanding the tax collateral, forecasting taxable income, and constructing a discount rate. He emphasizes the need for a deep understanding of the tax benefits, or assets subject to the TRA, which requires extensive knowledge of the tax code.

The episode concludes with Saish discussing the market inefficiencies that their strategy benefits from. He shares the BAIT framework (Behavioral, Analytical, Informational, Technical inefficiencies) and how Parallaxes Capital has an edge due to its domain expertise and different view on duration. Saish also touches on the ESG angle of TRAs, highlighting how they further social and governance goals. 

Guest-at-a-Glance

💡 Name: Saish Setty

💡What he does: General Counsel

💡Company: Parallaxes Capital

💡Noteworthy: Saish is a specialist in TRAs and shares his unique insights into this emerging asset class.

💡 Where to find Saish: LinkedIn

Key Insights

The BAIT Framework: A Unique Approach to Market Inefficiencies

Saish Setty introduces the BAIT framework (Behavioral, Analytical, Informational, Technical inefficiencies) as a tool for identifying market inefficiencies. In addition, he explains how Parallaxes Capital leverages this framework to gain an edge in the market. They focus on areas where other investors may not be looking, weigh information differently due to their deep tax knowledge, and take advantage of technical inefficiencies where market participants buy or sell assets for reasons unrelated to fundamental concerns.

Decoding the Valuation of Tax Receivable Agreements

Saish breaks down the process of valuing a Tax Receivable Agreement (TRA). He outlines three main considerations: understanding the tax collateral, forecasting taxable income, and constructing a discount rate. This process requires a deep understanding of the tax code and the ability to predict taxable income accurately. The discount rate is built by aggregating perceived risks, including credit, duration, illiquidity, and legislative risks.

The ESG Potential of Tax Receivable Agreements

Saish discusses the ESG (Environmental, Social, Governance) angle of TRAs. He suggests that tax-related strategies can be a powerful tool to incentivize good behavior and affect ESG goals. TRAs, in particular, can further these goals, especially in the social and governance aspects. For example, companies can support tax policies that promote long-term value creation rather than just tax minimization. This perspective offers a fresh look at how TRAs can contribute to sustainable and responsible business practices.

Episode Summary

In this episode of Psychedelic Investment Insights, host Nick Mazing from AlphaSense sits down with Dan Ahrens, the portfolio manager at AdvisorShares Psychedelics ETF (NYSE: PSIL). Together, they delve into the rapidly evolving world of psychedelic investments and the key differences between investing in the psychedelic and cannabis sectors. Dan highlights the importance of understanding the psychedelic market as a biotech-driven industry and discusses its unique challenges and opportunities.

Throughout the conversation, Dan outlines the factors investors should consider when examining psychedelic companies, such as their intellectual property and FDA pipeline. He also shares valuable insights about the major players in the sector, including Compass Pathways and Cybin, and how their groundbreaking treatments have the potential to revolutionize mental health care.

Finally, the discussion turns to the advantages of investing in a psychedelics-focused ETF, like AdvisorShares' PSIL, which offers investors transparency and exposure to a curated selection of innovative companies within the industry. This episode is a must-listen for anyone interested in the growing field of psychedelic investments and the future of mental health treatments.

Guest-at-a-Glance

💡 Name: Dan Ahrens

💡What they do: Portfolio Manager, AdvisorShares Psychedelics ETF (NYSE:PSIL)

💡Company: AdvisorShares

💡Noteworthy: Expert in cannabis and psychedelic investments

💡 Where to find them: LinkedIn Twitter Dan’s Book on Cannabis Investing

Key Insights

Differentiating Cannabis and Psychedelic Investments
 In the episode, Dan Ahrens highlights the key differences between investing in cannabis and psychedelics. While cannabis stocks are evaluated based on revenue, cash flow, balance sheet, and survivability, psychedelic investments are treated more like biotech stocks, trading on intellectual property and FDA pipeline. These investments can be volatile, but offer long-term potential. Understanding these differences is crucial for investors looking to enter the psychedelics market.

Potential Applications of Psychedelics in Mental Health Treatments 
Dan Ahrens discusses various studies examining the use of psychedelics, such as ketamine and psilocybin, in mental health treatments. The episode covers potential applications for depression, treatment-resistant depression, ADHD, and Alzheimer's. These promising developments showcase the potential of psychedelics in addressing a wide range of mental health issues and underscore the value of investing in this emerging sector.

Key Holdings in AdvisorShares' Psychedelic ETF (PSIL)
Dan Ahrens shares insights on the largest holdings in the AdvisorShares Psychedelic ETF (ticker: PSIL), which offers daily transparency on its investments. Compass Pathways and Cybin are among the top holdings in the fund, both working on psilocybin-based treatments. The ETF aims to provide pure exposure to the psychedelics sector, avoiding companies that only dabble in psychedelics. This approach allows investors to gain targeted exposure to the promising world of psychedelic therapies.

Episode Summary

In this episode, host Nick Mazing from AlphaSense interviews Emily Coriale, Senior Principal Pricing & Market Access Lead at LifeSci Consulting. They discuss the far-reaching implications of the Inflation Reduction Act (IRA) on the US healthcare system, with a particular focus on drug pricing and price negotiations between the US federal government and pharmaceutical companies, as well as the impact on health plans.

Emily explains that the IRA is the most significant federal legislation in the last 20 years and highlights three main aspects of the act: drug price negotiation, prescription drug inflation rebates, and Medicare Part D redesign. These changes will not only impact profitability, investment, and strategic choices for health plans and manufacturers but also have a domino effect on the entire healthcare system, including patients, insurers, and private funding sources.

As the industry prepares for the IRA's implementation, Emily emphasizes the importance of understanding and mitigating risks, proactive stakeholder communication, and collaboration between healthcare sector partners. This episode provides a comprehensive overview of the IRA's potential impact on pharmaceutical companies and the healthcare value chain.

Guest-at-a-Glance

💡Name: Emily Coriale

💡What they do: Senior Principal Pricing & Market Access Lead

💡Company: LifeSci Consulting

💡Noteworthy: Emily is a PharmD 15+ years of healthcare leadership experience

💡Where to find them: LinkedIn

Key Insights

The Inflation Reduction Act's Three Main Components
 The Inflation Reduction Act (IRA) has three key components that are expected to impact the US healthcare system. First, drug price negotiation will allow the Centers for Medicare and Medicaid Services (CMS) to negotiate with drug manufacturers for high-spend drugs within the Medicare program, a first in the US. Second, prescription drug inflation rebates will require manufacturers to pay certain rebates for Medicare Part B and Part D drugs if drug price increases exceed the rate of inflation. Lastly, the Medicare Part D redesign will reduce the maximum out-of-pocket expenses for Medicare Part D beneficiaries, shifting financial exposure to manufacturers and health plans.

IRA's Ripple Effect on the Entire Healthcare Value Chain
 The Inflation Reduction Act (IRA) will not only impact Medicare but will also create a domino effect on the entire healthcare system. The reduction in out-of-pocket expenses for patients could influence investment in drug discovery and clinical development, affecting venture capital funds and public markets. The IRA's impact on drug negotiations and financial exposure could change the balance of technologies and disease states that are funded in the future.

Preparing for IRA Implementation – Manufacturers' Perspective
 As the Inflation Reduction Act (IRA) is set to begin its rollout in 2023, manufacturers must understand the impact on their existing portfolio and future investments. To mitigate risks and proactively develop strategies, manufacturers need to consider their position in the development phase and the implications for their investors. Open communication and collaboration between manufacturers and health plans will be vital to navigate the challenges presented by the IRA effectively.

Episode Summary

In this episode of the Signals podcast, host Nick Mazing from AlphaSense welcomes guest Matt Melander, a successful entrepreneur in the burgeoning cannabis industry. Together, they delve into the challenges and opportunities of creating and distributing cannabis-infused beverages and edibles, highlighting Matt's journey in developing the popular LEVIA beverage line.

Matt shares his experiences navigating the uncharted territory of the cannabis market, emphasizing the importance of strong relationships and integrity in an industry that lacks the infrastructure and support of more mature sectors. He also discusses the potential landscape of cannabis consumer packaged goods (CPGs) and whether the industry will ultimately consolidate or fragment.

Finally, the conversation touches on the creative process of crafting palatable cannabis beverages and Matt’s humble beginnings with a SodaStream in a garage to sophisticated collaborations with flavor houses and experts today. This episode offers valuable insights into the dynamic world of cannabis entrepreneurship and product development.

Guest-at-a-Glance

💡Name: Matt Melander

💡What he does: Entrepreneur, Co-founder

💡Company: LEVIA Cannabis Beverages (now a part of AYR)

💡Noteworthy: Matt is a successful pioneer in the cannabis-infused beverage market.

💡Where to find him: LinkedIn

Key Insights

Building a Brand in the Emerging Cannabis Industry 
Matt Melander, the co-founder of LEVIA Cannabis Beverages, discusses the challenges and opportunities of building a brand in the cannabis industry. Due to the lack of established infrastructure, businesses need to rely on small-time relationship-based selling and one-on-one conversations with retailers. Matt highlights the importance of integrity and collaboration in the industry, with contributors working together to build a viable future enterprise.

The Evolution of Cannabis CPGs and the Potential for National Brands 
Matt shares his thoughts on the future of cannabis CPGs and the possibility of national brands emerging in the industry. While he believes there is a chance for a Coca-Cola or Budweiser equivalent, he also sees value in regional players thriving and creating jobs. He compares the growth of the market to the rise of the craft beer industry, with a focus on product quality and consistency.

The Art and Science of Cannabis Beverage Formulation 
From its humble beginnings as a fun experiment with a SodaStream, cannabis beverage formulation has evolved into a sophisticated process. Matt explains how flavor experts from the wine and craft cocktail industries have entered the cannabis space and elevated product development. The process has shifted from being an art to incorporating rigorous engineering and testing for quality control.

Episode Summary 

In this episode we spoke with John Zolidis, President at Quo Vadis Capital. John has over 25 years of Wall Street experience analyzing unit-based businesses, such as restaurants and retailers. 
We covered a number of topics including unit economics, Return on Invested Capital (ROIC), and Return on Incremental Invested Capital (ROIIC). John also discussed specific aspects of ROIIC, including cohorting, differences in capital allocation decisions of public and private concepts, understanding franchisee economics in the case of franchised businesses, and a lot more. The guest explains in detail the work that goes into understanding the true performance of the newest cohort of stores, finding inflection points in ROIIC which leads to estimate and revision changes.  

Guest-at-a-Glance

💡 Name: John Zolidis

💡 What he does: He's the president of Quo Vadis Capital.

💡 Company: Quo Vadis Capital

💡 Noteworthy: John has over 25 years of experience analyzing unit-based businesses, such as retailers and restaurants, and is a very sophisticated practitioner in the space.

💡 Where to find John: LinkedIn

Key Insights 

⚡ What is Return on incremental Invested Capital (ROIIC)? We use ROIIC to make investment decisions and determine the impact of strategic investments on a business. But what is ROIIC? John explains, "Unit-level ROIC is what is the return metric of the average store restaurant, et cetera of a business. When we talk about return on incremental invested capital, what we mean is what's the return profile of the most recent cohort of stores, restaurants, et cetera, that a business has opened. Put differently, what is the return profile of the most recent dollar being allocated by the business into growth." 

⚡ The return that the franchisees get is essential. When analyzing franchised businesses, John pays very close attention to franchisee performance. John explains, "Nevertheless, the return that the franchisees achieve with their stores or restaurants or car washes or whatever it is, that, among the list that you mentioned, is really important. And it's important for a couple of reasons, but I think the main reason from a Wall Street investment standpoint is that the returns that the franchisees generate act as a direct governor on growth, which is to say the cash flow produced at the unit level relative to the cost of opening up a new unit tells you how fast the franchisees can increase their system and that's important to the franchisor, the parent company, which is where the equity in Wall Street typically is. So it is relevant to see what the return metrics are like for the franchise. It does have a direct implication on growth. And then, I think it's also important to know that you're investing in a concept that creates value for all members of the chain, not just the parent company. And that is a sustainable continuous business that you can feel good about being involved with."
⚡ There are different criteria for determining whether a certain stock is a ‘buy’ or ‘sell.’ How can you use ROIIC to determine whether a certain stock should be bought or sold? John explains. "There's a ton of work. It is quite tedious. I wouldn't say it's a lot of fun to build the models that generate all of these metrics. But essentially, we have a battery of tests that we apply to the output of this. So the first one is a quality filter. [...] The second piece is a trend analysis. [...] Then, the third filter is related to return on incremental invested capital. So this is where we zero in on the company's most recently opened cohort of stores. [...] Then lastly there, we also have a valuation-based approach for unit-level concepts."

Episode Summary

The haphazard state-level legalization of cannabis in the US has created a patchwork of vastly different regulations across states, from growing to retail licensing. How do we make sense of the opportunities that exist? 

We spoke with Aaron Edelheit, an investor in both public and private companies in the space. Aaron gave us an overview of the absurdities at the federal level, including how cannabis ended up as a Schedule I drug, what states have been doing over time in terms of medical and recreational use legalization. 

He also dives deep into the inefficiencies created in the market, in part because most institutional investors cannot participate. As one of the pioneers who turned the single-family house rentals into an institutional asset class, Aaron is reminded of how he was alone buying foreclosed houses literally on the steps of courthouses in the Southeast for years before “the big boys” showed up and prices skyrocketed. 

We further talked about the challenges of the cultivation of consistent product at scale, and why a certain grower in California is well-positioned with a large bank of greenhouse capacity and perfect climate. Further, we look into the future: will it be a brand-dominated industry, or will it be a commodity? We also touched on Aaron’s book, where he meticulously researched the benefits of unplugging from it all for one day a week. 

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Guest-at-a-Glance

💡 Name: Aaron Edelheit

💡 What he does: He’s the CEO of Mindset Capital.

💡 Company: Mindset Capital

💡 Noteworthy: Aaron is a crossover investor who is very heavily involved in the emerging cannabis space. Additionally, he is the published author of The Hard Break: The Case For The 24/6 Lifestyle.

💡 Where to find Aaron: LinkedIn | Twitter

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Key Insights 

⚡ Cannabis has medicinal value despite being classified as a Schedule I drug. Cannabis is a Schedule I controlled substance, meaning it has huge abuse potential and no accepted medicinal purpose. But is this really accurate? Aaron says, “How many people have overdosed from cannabis this year? Zero. How many people have overdosed from cannabis last year? Zero. So the medicinal value is we know that it helps cancer patients tolerate their drugs. It is clear pain relief. It helps people with anxiety, post-traumatic stress disorder. There is an approved FDA drug that is a synthetic form of cannabis that treats kids with epilepsy. So there are just so many, and now we're finding that it could possibly work against COVID. We're just starting to explore really how cannabis works and how it can work.” 

⚡ There’s a conflict between federal and state law when it comes to cannabis legalization. More and more states are legalizing marijuana, but it is still illegal on the federal level. Aaron talks about this conflict. He says, “You have like 38 or 39 states that have basically, like, we're just going to ignore the federal government, and we're going to legalize it in our state for medical. And then you have a number of states who are like, we're just going to make adult use. And what happened? The reason why more and more states are legalizing it is they legalize it, and then they're like, everything gets a little bit better.” 

⚡ The cannabis industry is a huge opportunity for investors. As an investor heavily involved in the cannabis space, Aaron thinks that it’s one of the most promising investments. He says, “This is just a small

Episode Summary

While traditionally excluded by ESG investors, tobacco companies have made great strides over the last few years with the introduction of a wide range of reduced risk products (RRPs). 

In this episode we sat down with Andrea Sefler, PhD, Director of Research at Broyhill Asset Management, to discuss the topic. Andrea’s PhD in Organic Chemistry and 15 years of pharma experience comes in handy as she walks us through the risk spectrum, starting with heat-not-burn products, then vapor products, and finally, the various forms of oral nicotine, like tobacco-free nicotine pouches. We cover everything, from absorption and metabolism, to device form-factor considerations. 

We then discuss the difference between expressing views as a consumer versus as an investor, how purchasing stock from another shareholder does not really help or hurt a company directly, and why the tobacco industry players are best positioned to reduce tobacco harm. 

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Guest-at-a-Glance

💡 Name: Andrea Sefler, Ph.D.

💡 What she does: She's the director of Research at Broyhill Asset Management.

💡 Company: Broyhill Asset Management

💡 Noteworthy: Andrea has a Ph.D. in organic chemistry and is an experienced investor in the space.

💡 Where to find Andrea: LinkedIn

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Key Insights 

⚡ The tobacco industry is constantly innovating. Heated tobacco products are a major innovation on the market. Andrea explains, "There's not really much they can do anymore to innovate around a cigarette, or manufacturing a cigarette, or distributing a cigarette, or whatever to offset that decline, so all they can do is increase the price, but these HTUs now and heated tobacco products, that is an innovation, and you've broken that pack model unit and direct price comparisons to competitors. So now the business model is almost a subscription-based business." 

⚡ The absorption of nicotine differs from product to product. One of the most significant differences between heated tobacco, vapes, and cigarettes is how they're absorbed. Andrea explains, "I like the logic behind this conversational arc that you've set up here. So what we're doing is moving down the risk spectrum of the nicotine products that are currently on the market. So you've got combustible cigarettes and tobacco, and then you've got heated tobacco, then you've got vaping, and now we're down at oral nicotine. So what is different now is what we're talking about is what's called buckle absorption of nicotine. So absorbing nicotine through your mouth or gum membranes as opposed to through your lungs. That's very different. And to understand why I've got to throw out a couple of concepts around blood circulation and metabolism." 

⚡ Safety improvements are always a good thing. It's crucial to develop and bring safer features for tobacco users constantly. Andrea says, "Like you, I do believe that most of the time, those best positioned to make meaningful changes in an industry are those that are actively participating in it with products, marketing, distribution, and, more importantly, customers that they're looking to, and have the incentive to, best serve in the long run. I don't think avoidance of a thing — that's not the same as fixing it. The bottom line is that people enjoy the effects of nicotine. Some people like to smoke and have been doing so for millennia, so unless we're willing to try another run at a prohibition experiment, I think it's in some ways very irresponsible not to develop and offer safer means for people to consume nicotine that choose to do so." 

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Episode Summary

In this episode we spoke with Linda Lebrun from Substack Inc., a VC-backed publishing platform that has gained prominence in recent years as the go-to place for starting and monetizing email newsletters. 

We discuss a wide range of topics covering the technology, content, and business aspects of Substack Inc. While neither email newsletters nor blogs are new, Substack’s singular focus on email-first has been very successful. Another part of the success has been easy writer and user experiences, and transparent revenue splits. We also covered why Substack Inc. does not facilitate advertising, and how the platform’s commitment to free speech stands out. 

Guest-at-a-Glance

• Name: Linda Lebrun

• What she does: Linda leads writer relations at Substack.

• Company: Substack Inc.

• Noteworthy: Linda joined Substack two years ago, transitioning from the investment space to tech.

• Where to find Linda: LinkedIn Twitter

Key Insights

🎙️Substack’s success comes from the email-first strategy. Neither email nor blogs are new. It was the focused approach that centered on ''coming to users' doors'' — their inboxes — instead of waiting for them to come to the platform that enabled Substack’s growth. ''The analogy I saw somebody making in a Tweet was when you have a blog, it's like opening up a cafe, and you wait for somebody to come by and poke their head in, and maybe it's empty, and they don't come in. But when you have an email-first — an email newsletter-first — structure, it is like Uber Eats. And we see it in the data because more than 95% of the interaction people do with Substack content is either in the email inbox or the app.''

🎙️Writers should be focused on content and audience-building, not technology. Substack offers tools for both established writers with existing audiences, and for experts looking to build an audience. ''If you're Andrew Sullivan, and you have this huge audience that likes you, or if you have a big email list to port in, then that's a great way to get started, and you can grow from there. But [...] what if I'm not Andrew Sullivan? So in our roadmap, we are very focused on building features that will help people get found, and then we'll help them create a way for people to go — it's very MBA-style to talk about a funnel of monetization — if people want to fully participate in what you are doing, and if you want your writing to be a business and a living, it works if you are given tools to move people down that path and say, 'Hey, if you want to enjoy everything that I'm doing, if you become a paid subscriber, you will.'''

🎙️ Substack deliberately does not focus on advertising. Substack's business model is helping authors make an extra income, a living, or as Linda says, in some cases, a fortune publishing articles on the platform. They do this by making it easy to launch paid subscriptions. ''This seems to be working; it seems to be gelling to give people a way to get paid. [...] The vast majority of people on Substack would be individuals or small teams. The biggest priority for them is to focus their time and attention on what will help their content business — for lack of a better word — grow, which is probably spending their time on writing and marketing and to try also to have an ad sales department; it's a tough one if you are independent.''