How Township Ventures is Creating a "Bitcoin-Based Berkshire Hathaway" - Lucas Bazemore

We look at all of the areas are areas that require hard

This is food, this is This is city infrastructure. These are areas where you make do the hard work. But you might not see the

The game theory suggests that more bitcoin you'll have. And so if we do think of this right, you want to last as to accumulate as much bitcoin into growing the team.

Welcome to the Business The show dedicated to helping business with bitcoin, the I'm your host Josh Friedemann of Township Ventures. Township Ventures purchases capacity and puts them on a We're going to get to our this. Lucas, welcome to the show. Pleasure to be here, Josh. Thanks for having me. Excited to chat. Absolutely. So I like to start off every that help us to get to know us some insight for our own lives. Are you ready for these? Absolutely. Question number one is this.

When and how did you first

Yeah, as most people say, I Was just doing the gambling doing. Trying to do the get rich quick. But then really, one of my have to give all the shout out head about this bitcoin thing. It wasn't about 2019 that all in. I'll say this for the audience I'm 150% allocated to Bitcoin Short, fiat, long bitcoin. I'll leave it there. Any recommendations or would long bitcoin or are there ways sense and is not just the drain? Absolutely. No, I'll clarify that one.

I am not a financial advisor You have to make the decision based upon your current So the only reason why I can I'm blessed to be in that position, whereas, you know, close. I wouldn't have even So it's only as I've learned to do something like that. So obviously we need to make your risk tolerance and your etc. Question number two. What's an insight or fact understood? Yeah. I'll say two things if it's okay. The first one is, as some of this, and I think it really is the ends.

Bitcoin is a means to an end. Bitcoin is now best money that exists. And so we need to be stewards our lives and where we put our communities. And so that, I think, is happens as you've accumulated Which leads me to the second kind of already understood won. Bitcoin will be the world hyper bitcoinization in the The writing is on the wall. I. I think you might have bank just came out and said, dollars a coin. It undermines government's It gives people sovereignty. That's why we need to ban it.

We're living in a parody of So the writing's on the wall, an impact on society in not bigger, than the Internet affect. There is this seriousness of just knew, but it's okay. It happens with time. Was that the same ECB report who don't hold Bitcoin or are Bitcoin is successful. Was that the same? Exactly. It was the exact same report. It's hilarious. They are literally the best bitcoin. I wish more people read the report.

It's crazy because at that you don't have this thing, saying that it's going to be Once again, if everyone could to read between the lines, but of a sudden, it should become And yet some people, for their feet. It's okay. Again, I'll shout out one of there is this kind of weird and you get it, to break It forces people to question So, you know, things take time. We try to try to educate as there. But you're right, you can read government saying it. So I don't know.

I don't know what to tell you Sure, sure. So question number three is recommend to other. I really like video content. I will say I've listened to a University. I think he's got basically a it comes to the fundamentals So I would personally of the fundamentals because it before and really does break known. So you have to study it from And I think he does a really So I tend to send people there. I recommend him all the time, and think that maybe on a some jab and try to undermine bitcoin.

It's just like, hey, go take a I could send them to specific every question that people end of the day, go check it there. All the questions that people are like checkmates against And his is probably one of the So I appreciate that. Resource Question number four, tool or idea that's been Absolutely. I'm a big book reader. I love trying to find what I have distilled ideas in an pertinent to me.

But I can go back to over and Right now, what I'm reading or I recommend is I love $100 When it comes to thinking and niching down. I'm also reading Actionable The ideas of how do you design for people? And how can you build not just towards win states like games And then the last one is Pitch When you're a business owner, whether you know it or not, you're selling to your team, selling to everybody.

And so understanding the he does a great job of The psych, the biological information and how to get that we have when we're So he really does a great job So those would be the three as, as kind of resources or Excellent. Well, I appreciate you sharing Now we have our final what we question and it's this as a to ask why or why not? I've thought a lot about this one. It really, it really was But I'll say this, as an always been in the why not category.

The idea of spending time, that may fail was always still was big enough. Now I've really been shifting as I'm taking and of my personal life, husband, adopted, bitcoin mentality. And now again, as I mentioned, of have to ask yourself, okay, and I can hold on to that and why would I do something and capital? And for me, that comes down to Like, why am I doing what it Why am I spending time with these activities, et cetera.

And so I look at it definitely to me moving forward, looking Whereas before it was always buck? You know, and it's like that's Well, Lucas, we're here today I happen to run across you guys. I love what you're doing, but could you just share about led you to getting this set up At the core of our team, we important thing in life.

And we create that fulfillment for people in everything that Township Ventures itself is a and build businesses to last Fiat broke. And so we take this idea of centric design, applying look at everything, which I'll but ultimately to build not but what we're, what we wealth, where you're actually for your family, for your are taking the ultra long term mindset. So as a how we came to that is engineers and entrepreneurs And we looked at.

So in our lives we've had services, lots of different of leadership roles in those in. And what we found out was, is that are going on at the direction where there's an new generational wealth that, framework and the blueprint And those three were, first, older individuals that have that silver tsunami, as people And so there's an opportunity the market that are trying to planning. The second is of course, Hyperinflation around the And bitcoin being that local communities that are there.

And then the third is actually kind of a. Oh, AI again. But there's a very real. What we believe here is, is requested, There is now going What matters is getting back And so at the heart of what we in what we do, quality in the quality in the business, bitcoin, right? Those three kind of trends to really leverage the is still using Fiat, put sheets.

And actually I had a great he said it's not just about it's actually about turning And what are all the which I can touch on a little but then going full circle the business, put bitcoin on How do you build that business? How do you do the hard work of making high quality decisions? And what we try to do is look lens, through that quality How do you think about your your team, how do you think you think about the whole nine yards?

It sounds like a lot, but when on at least four year cycles quarter, but even at that your priority to long term sustainability. And so that's one of our core is what we're doing right now And if we're having trouble to kind of slow down and try And now that might mean go walls, test and validate, mentality, but in low risk, to make a better decision. So that's a really long winded with you how we think and what And I can go into further.

So, Lucas, one of the things of a generational perspective Before we get into the idea of which is very interesting to to the average business owner, generationally, thinking about Great question. The entry point that you have best money.

And right now we're in this hurdle rate is basically 149% So over the last 10 years It's compounded 149% every year. And so you have to ask then am I going to allocate my me less than 149%? That's one way to think about But this also drives us to side of things is, where when think about it not just or, sorry, from a SATS in nominal money units. We actually get back towards a aesthetics, about the quality of your customers. How long can this last?

So, so I'll start with saying rate that forces you to Then with that hurdle rate you else, which is am I going to reinvest in my team? Am I going to try to get the my customers that I have last longer? And so that immediately forces it is more valuable. And this is even a traditional that you have generate you new customer. The customer acquisition cost And when you account for the costs, it's a no brainer to you have, provide them more over time.

When you really think about it earlier, under a bitcoin want your business to last as maybe implicit what most Most people are not the type business to grow it, sell it sleep on the beach. They do it because they love be, and they love their team. They enjoy those emotions and But they get to do what And so if you can build that through the bitcoin lens. You start to think about the customers, putting them on a on a bitcoin standard.

Because then as the rising supply chain becomes much more And so when you are thinking do have to think about every 149%. And I think it's actually into the transition. But I'll pause. Does that answer your question? Does that shed some light? I'm curious. It does. And I guess the follow up want to turn your entire to holding bitcoin on your perspective there as well?

Yeah, it's more of a semantic trading fiat for bitcoin, everybody has to go through it, I'm learning about it, I But there is also the lens to For example, one of them that business owners to understand asset. Under a deflationary asset, converse to start with, in an your costs. Your costs are basically increasing. You are playing a game trying to grow inflation. Inflation forces growth into about if it's sustainable or not.

It just simply says, hey, just hope you're making more money, If you flip that around under is your top line revenue might And so you're now actually become more operationally not. You change your mind from how do I grow? And you put it actually more more operationally efficient? Is the business reducing costs Are revenues declining slower Because we will get to there actually decrease in nominal would have gone up. And so you're going to have to declining slower than the rest.

You're also wanting to think in quality or value to power that you have? So if the product costs right is it still 100,000 sats in If it is, then you have to is in terms of service value because the customers the same question. Well, If I'm paying 100,000 last me a long time because my it and not buy the product. So even things like product more prevalent, which is, I I'll kind of touch on when it which is, how do you make your great as it can be, niche down product or service phenomenal?

Because your customers are hey, wait, this is, you know, Why am I continuously spending Either the product stays the or the product is getting So I'll pause there. I can ramble, but no, I think One of the things that I have start guide that we talk about One of the terms I use there, about earning bitcoin because to have to, at some point offering, whether it's a it is worth a finite piece of It changes how you begin to people are giving it or why else.

I think that's a very And I think the more business the quicker quality will go up owners have to think about, am product or continually be maintaining my revenue? It's a totally different game it will be a valuable place One of the things I wanted to a few key areas you guys have And I Wanted you to talk a are and why you've chosen Because I wanted to touch on was the cost that customer has And one of the things is the cost efficiencies.

So we look at in particular at that we believe fiat broke. And these are areas that investment.

This is food, this is this is city infrastructure. These are areas where you make do the hard work. But you might not see the If you think about your Like I have to go to the gym And I'm not going to see the It could be years before I increased my lifespan by five Or education. You're investing in yourself and that takes years.

Even if you go into a be a year, two year long where everything is measured That's an infinite amount of So we focus on those believe that those are what for long term investment. Completely disintegrated. And that's how you can investing for that long term. Right now, for example, in the report card was like a D and it's a B minus now.

But there are estimated in levees, in dams, in cities have just ignored are going towards other things And so you really have to ask So, so I'll give you, I'll we look at. So the first one being the resilient. That's first and foremost. You're not going to be able to you know, financially resilient. And that means maintaining It means generating dollars. That's about 50% of the equation. And I'm using loose relative is one.

The second part is what we So this is that 30% and so the service, the lifelong your vendors and of your team. That's about kind of 30%. And then the last 20% is on And that for us is the crux of where you are geographically And so those areas of food and wellness, these are things localities that they are. If you have children that are to their geography, somebody much more akin to wanting to and cattle farm than somebody to grow up and have a winery. Right.

So if you can embed the you're making and think about you can. What we're attempting to do is playbook of principles to put where other people can then Because we're not going to be, right. Those are areas that we want But that needs to happen globally. The entire world has been these things need to improve. So pause there. I can get wordy with it and So I want to ask in just a change in order to.

Once you purchase a business business, how you kind of so that it aligns more with you've just described. But maybe even before that, like for a business owner who now, or someone listening to a business who might look to What would it look like, I to partner with that business of that business. Perfect. So the two questions being do the acquisition from a And then two, what are you Yeah. And I think what would you change?

Or do you want to buy to change all that much along just totally change something of the community. I'm just interested to know sure that that long term element of the business, The way that Township works holding company right now we equity world, what's called an

So we have not, we are not could change in the future, raising a fund to raise a go buy businesses. There's a lot of SEC headache. And in a lot of ways these misalignment where the fund is they've actually raised.

Whereas what we're doing is as our own Capital Capital from traditional tradfi world in So there are hundreds of set up for the traditional M leverage into buying the SBA or senior banks or So the lion's share of our institution that can allow us the equity that we're going to Now from a legal structure, an entity to basically own of the company. And we are now owners of this And as operating partners or money managers. And so we are acting as So we're allowed to sell to the LPs for example.

And that gives us that because we don't actually make money. Whereas in a traditional times they can make money off it for a multiple. And so they'll take a, they'll fat fee off of the assets that that they've raised money from. And then they'll make money business in five years. And so the entire structure is longer than most, five to But it's by no means And so that for us aligns the actually don't make any money of that business.

And growing the equity of the bitcoin on that balance sheet, get into it. Before I jump into that, any end? I don't think so. I think it makes sense. Maybe the one thing is this the background of Berkshire a long term holding company as bit different? That's a great question. I would want to define, refer He has studied Berkshire But in principle, yes, game is buy businesses that the equity of that. So this is Berkshire Hathaway In a way, yes.

And we think that there is an replicate this if they follow This is what we'll actually do The first is understanding running for a while. It has its own operations, it We're not trying to go in If anything, we want to have But it's starting with the seller, starting with the vision to understand who are So at a high level, we're right? Let's understand your there. Then we want to start to main, as the entry point So again, back to that whole It's not about doing more, doing that less better.

And so maybe this translates but focusing only on the high creating maybe turnkey It could be maybe building and therefore being able to kind of product set. Maybe it's just executing on the troops to work on one the entire team Instead of So we're trying to see where happening. Is the company serving too Does the company have too many the team misaligned and is. And we're going to work with a plan in place to resolve the new objective of the Growth.

If it happens as a byproduct But the principal requirement long as possible. Because the game theory lasts, the more Bitcoin you'll have. And so if we do think of this you want to last as long as as much bitcoin as you can growing the team.

Or if you don't even think side and you're just like, I've got bitcoin in the This is now, I can now create plan or an esop, or I can now And we actually go back to you had companies like GE or where people worked at the And the reason why is because were providing the talent, in the work that they do, and that they had. And they knew that they were the money wasn't broken yet. And so I think we're going to least from, like, the But that's, you know, I can.

I can keep going, but I'll And we are really trying to levels of abstraction. I think one of the things, right now who's thinking about one of their thoughts might Do I sell and go away? I say that knowing that from business owners that just sell it look like for the original or into a relationship with Great question. With us, we are looking for team that want to continue to Well, from. From our perspective, at the operational risk if the owner That makes it actually right.

You're introducing new But as a seller, the way I. The way I would position it is and marketing, in operations, in technology. I mean, one of our partners, company right now, and he's at in that space. So we have skill sets that we of the business that you have. And with the bitcoin lens, how possible? And so with the seller leadership team, it's about important things.

And as a leader, the most are working on your business, This is something that a lot oh, work on your business, in your business.

And it's so true, but it's so And so the way we look at it more resources or different team that has the expertise in expertise on the customers and as a whole, and give them the space, and give them the right to create something that lasts And so if you're an individual just wants to make money and it's like, at a core value We're not going to be in going to bleed down into other Your product or your customers that same feeling.

But if you do love your you love your product, but to do next, or, you know, there, or you want to make it generation or to your employees. That's exactly how we're Does that answer your question? It does indeed.

So I feel like we have future once you guys are even learned, what's working well, Maybe for today we can just go Are there any final thoughts sure the listeners leave with or that we haven't addressed I'll say first, just thank you I think that what you are and I hope that you continue I think that the information continue to be disseminated.

And the last final thought is easy to get caught up in the And it really is taking a step the expectation, the you will be phenomenally set for a fact that I'm going to security of being financially in my life, if I'm okay with 20, 30 years, where do I want Where do I want to put that And really ask yourself that to you? And go spend your time doing that. Where can people go to find If what you shared today has piqued.

People'S interest, you can go It's not townshipventures.com, That's where you can find our to the social media. I don't know them off the top LinkedIn as well at Just my I'd love to connect with to learn more. Great. Lucas, thank you so much for

It's been a pleasure. Absolutely. Thanks Josh. Well friends, it's a wrap. Thanks so much for listening Show. If you want to reach out to those links down in the show notes. If you know of someone let them know about Township Ventures. As always, keep building, keep living and leading. Well, thanks to pleb to streaming sats to the show on If you would like to support and stream sats as you listen. Or if you like to, you could note with that boost, I'LL be