Yaro Blog

Calm Capital Founders David Horne And Marty Balkema On How They Finance Acquisitions, Strategies For A Holding Company, Why This New Form Of Investing Is Just Getting Started (VC EP2)

David Horne and Marty Balkema are founders of Calm Capital, a holding company with at the time of this recording, 10 companies under management with $8 Million in total annual revenue.

The holding company model, popularized by Warren Buffet and Charlie Monger with Berkshire Hathaway, is becoming more and more common in the world of online business.

David and Marty help demystify what exactly a holding company investment strategy is and take us through an example acquisition, their first company purchase of Pttrns, in this podcast interview.

We also learn how the guys met, how they transitioned from being founders to investors and acquirers of other companies, and what financial structures they have used to finance their acquisitions.

I’m fascinated by this emerging trend of online holding companies for many reasons. It gives tech entrepreneurs an additional pathway for exiting their business, and it’s an exciting way to compound your capital, increase cash flow and diversify your income as an owner of many companies.

As an entrepreneur who enjoys having multiple projects, what Marty and David are doing really appeals to me. You get to enjoy owning companies in many different niches, but you’re not stuck in the day-to-day trenches of running the companies.

Enjoy the interview, and please share it with anyone you think could benefit from hearing from these two trailblazing entrepreneurs.