Today’s Breakdown is a little different. For one, I’m Ali Hamed, an investor at Crossbeam and CoVenture, and I’ll be your host. Secondly, in this conversation, we are studying a private company that you’re unlikely to have heard of. That business is Spotter, and they play a fascinating role in the flourishing creator economy. Specifically, they provide capital and knowledge to a number of the world’s most influential creators, including Mr Beast. So in the process of discussing Spotter, we will also dive into the inner workings of YouTube and their creator platform. To break down Spotter, I’m joined by their CEO, Aaron DeBevoise. Aaron has spent his career at the intersection of entrepreneurship, investing, and digital content. I’ve worked with Aaron for a number of years and learned a ton about this ecosystem from him. Please enjoy this Business Breakdown of Spotter.    For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:02:52] - [First question] - How the YouTube ecosystem became what it is today [00:05:52] - The transition from mobile to professional television quality content [00:08:58] - How advertising on YouTube works and generates revenue for its creators  [00:11:47] - The moment YouTube had to differentiate themselves from Google’s ad auction [00:13:20] - How the pandemic has accelerated the pace of their ad revenue  [00:16:19] - Why YouTube nailed monetization in a way that other platforms haven’t  [00:18:53] - His background and how he came to learn so much about YouTube [00:22:57] - Capital deployed and projects financed so far in the YouTube ecosystem [00:25:13] - Overview of the main ways to fund a YouTube creator  [00:27:30] - Thoughts on pricing and his risk reward perspective [00:30:49] - The breadth of uses for proceeds when creators invest in their brands [00:36:42] - What ad optimization and asset management means in this asset class [00:38:48] - The order of magnitude people are willing to pay for premium content [00:40:06] - Where the barriers to entry are that make Spotter so defensible [00:45:06] - The future of YouTube in the next five to ten years [00:47:03] - Something he used to believe about YouTube that has changed 

This is Zack Fuss, an investor at Irenic Capital and today we are breaking down Trader Joe’s. Trader Joe’s is not a typical grocery chain. Their stores offer less choice, very few brands, constantly changing product lines, and no online option. Yet, they are adored and highly profitable. Their NPS score is industry leading and from what we can tell, despite offering lower prices, they generate more revenue per square foot than any dedicated grocery in the market.   To break down Trader Joe’s, I’m joined by Cristina Berta Jones, a long-time ecommerce and grocery investor who is now building an online supermarket business called Picnic. Together, we unpack the elements that have made this private grocery chain so successful for such a long period of time. Please enjoy this business breakdown of Trader Joe’s.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:03:16] - [First question] - Comparing and contrasting Trader Joe’s to conventional grocery stores and supermarkets [00:06:05] - Where Trade Joe’s fits into the food retail market and their size and scale [00:09:36] - The different sections of a store layout and what it feels like to shop there [00:11:47] - How many stores there are and how that compares to other large scale food retailers [00:13:17] - Some of the most interesting parts of the history of Trader Joe’s [00:15:15] - How Joe applied his market observations to building the company  [00:21:12] - The evolution and success of Trader Joe’s private label brand [00:24:31] - Differences between US and European grocery markets and overview of what a hard discounter is  [00:28:25] - Unique and different strategies on slotting fees and trade spend [00:31:23] - Reinvesting their overhead savings to offer lower prices to their customers [00:33:04] - Success despite not being a store where one does a full basket shop [00:34:08] - The way that the pandemic and delivery services impact grocery stores  [00:37:17] - The crossroads many grocers face between physical and online stores [00:41:43] - What makes Trader Joe’s defensible  [00:44:51] - Trader Joe’s approach to shrinkage and having better margins than their peers [00:47:05] - Self-distribution and what separates them from their competitors  [00:48:30] - Lessons for builders and investors from Trader Joe’s story