David Aronson

I’ve said it before, and I’ll say it again, investors buy performance, not potential. When we evaluate franchise brands, we don’t start with the story or the tech stack. We start with unit-level profitability. That’s the foundation for scale, validation, and enterprise value. In my new Forbes article, I break down the key metrics investors look for and why sustainable unit economics always win over flashy growth. 🔗 https://lnkd.in/e6uwkjpx Visit Boxwood Partners: https://lnkd.in/eWPtbT7q #Franchising #PrivateEquity #MergersAndAcquisitions #BoxwoodPartners

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Pete Martin-Calling out Midwest VC risk aversion and misaligned incentives is not a character attack. It’s an accurate diagnosis. And I disagree with “we’re in this together.” Founders are the only ones going unpaid, taking existential downside, and absorbing failure. While investors collecting fees, fund managers, program operators, intermediaries, ecosystem builders, are compensated regardless of whether any founder wins. That asymmetry matters. A meaningful portion of capital here is state managed, often with higher management fees and lower carry. Top ecosystems are overwhelmingly funded by private dollars. Michigan relies far more heavily on public capital. That shifts incentives and shows up as smaller checks, lower conviction, reluctance to lead, and founders leaving the region to raise real rounds. It also shows up as tranches, reimbursements, and restricted spend because the system does not fully trust founders with capital. Then founders are expected to produce venture scale outcomes with constrained resources and assigned contractors instead of empowered teams. When it predictably doesn’t work, it reinforces the narrative that founders weren’t investable. At the same time, an entire layer of programming and intermediaries positions itself between founders and actionable capital. Activity gets rewarded. Outcomes don’t. Capital gets diluted before it reaches the builder. And then there is the theater. The ecosystem has to sell the version it hopes to become. But too often that story is built on the backs of current founders, who are asked to tolerate worse conditions today so the region can claim success tomorrow. For us to be “in this together,” current founders would need to be centered in the system we’re building, not treated as the cost of getting to a better future ecosystem.

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How do founder-builders compound through acquisitions without creating chaos? Founder-led acquisitions compound when you connect Operating Cadence to Acquisition Cadence—then rebaseline the combined business fast. The goal isn’t “close the deal.” It’s “operate tighter after the deal” with one version of truth, clear owners, and a repeatable rhythm. Builder Flywheel: Baseline operating truth (owners + definitions) Run cadence weekly (CRAID) Maintain a living target pipeline (always screening) Screen fast (fit rules + kill criteria) Diligence with evidence (not opinions) Integrate Day 1/30/90 (planned pre-close) Rebaseline the combined entity (same cadence) Which step breaks first for you—target flow, screening, or integration? Connect with us to bring visibility, clarity and action that will improve your capital return on your next aquisition.

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Join us in a few weeks for CheckIN. I’ll be delivering our State of VC, where we’ll go deep on the Great Tilt thesis and what it means for venture in 2026. We’ll also be releasing our full State of Venture 2026 report alongside the event. It takes a hard look at what’s happening under the hood with AI and how it’s reshaping capital formation, company building, and risk appetite across the ecosystem. If you’re building, investing, or allocating capital, you'll want to understand this thesis. Hope to see you there!

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What kind of founders join the Praxis Accelerator? We’re looking for founders who are building redemptive ventures—and want to do it in community. Praxis Fellows are typically: + Serious Christians + Humble and ambitious + Working full-time on their venture + Seeking accountable, values-aligned community These founders are leading ventures that are: + Early-stage, but gaining traction + Innovative in model or mission + Built for scale + Aimed at addressing major issues of our time Know a founder building in this way?  Nominate a Fellow for our 2026 US Business or Nonprofit Accelerator—or consider applying when applications open on July 14th. Let’s build together. Nominate a Fellow: https://lnkd.in/e3DcnRZW Learn more about our Accelerators: https://lnkd.in/eyqpX8yq

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How do M&A due diligence, #GRATEFULDEAD, and a midwest venture powerhouse, #NorthCoastVentures come together? Turns out, exceptionally well! The combination produced an intimate session this week with some #Founders, former Founders, and experienced investors. Free-flowing exit insights (just like a jam session) were shared from some personally great (as well as bad) liquidity events. A recommended step in selling your company? Maintain a Data Room from *Day One*. Review quarterly. All contracts. All board minutes/consent actions. Fully-diluted cap table including options granted and those still available. That sort of discipline is hard for any startup to maintain as the C-Suite fights daily for survival, to get product to market, and make evangelical sales. But if you need to raise capital again (and who doesn't), you're operationally poised to let an investor conduct due diligence on a moment's notice. Longer term, you never know when a strategic acquirer will say to you, "Hey, our companies have a great relationship. Is there any way we could strengthen it?" (Of course there is. You could pay us a fortune and buy us!). You get one chance to make a first impression. If you don't prepare systematically and continuously, you're disadvantaged when an inquiry comes you do want to respond to. You'll scramble and stall instead of crisply engaging. It's an investor turnoff if the startup has to say to either investors (or strategics), "Hey, I'd love to talk. But it will take a few weeks for us to get our ducks in a row". The counterparty's first impression? .....Best case. You're completely disorganized (making you less valuable and more unattractive). .....Worse case. You're hiding something, which is super scary. In response their due diligence efforts will increase dramatically to make sure they're not missing critical information. As #JerryGarcia said: "Stuff that's hidden and murky and ambiguous is scary because you don't know what it does". 🎸🎸🎸 In a perfect world, well-run due diligence puts no strain on either counterparty, and creates a foundational bond; increasing a trust relationship between counterparties. There is no hidden stuff. There is no murky stuff. There is no scary, ambiguous stuff. Everything an investor (or Buyer) needs is neatly organized, easy to locate, and easy to read and confirm without causing needless anxiety. Awesome beginning to any #negotiation. Author: The Soul of the Deal. Genuine stories, deal dialogue, and funny! ...........*KINDLE's Smart Summer Reads* has special pricing: Monday, July 28 through August 3. ...........Premium *SPOTIFY* subscribers can hear audio version for free. ...........Hardbacks available at *AMAZON*. https://a.co/d/bXBjnod Claiborne ("Clay") Rankin Lauren Ahmed Daniel Luketic Martin Knott Tyler Dikman Lance Hill April Miller Boise Ryan Murphy Sean Whitney Xander Pollock Kyle Vogt Jeremy Fiance Alex Marshall Annie Tsai #CEO #CFO #venturecapital #mergersandacquisitions

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🌟 VC Firms: Why They HAVE to Invest Your Money (Even If It’s Risky) What if venture capital isn’t just about backing the “sure thing”? In this episode, Jason breaks down why VC firms are compelled to invest your money, the risks they take, and how their incentives shape the startup ecosystem. ✨ Inside the Episode: 🔹 Why VCs must deploy capital quickly and strategically 🔹 The balance between risk, diversification, and potential returns 🔹 How investment pressures impact startup decisions 🔹 Stories of high-risk bets that paid off — and some that didn’t 🔹 What founders should know about VC incentives Understanding the mechanics behind venture capital can help you navigate funding smarter. 7 free ebooks from my 300+ podcast conversations with top founders and creators. Grab them here: 🔗 https://lnkd.in/g8KUMDPa 💬 Would you take a high-risk investment if it meant potential massive returns? #TheJasonCavnessExperience #VentureCapital #StartupFunding #InvestorInsights #RiskAndReward #CavnessHR #Entrepreneurship #StartupGrowth

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