Summary
Highlights
I begin by reflecting on a previous video where I discussed losing 4 million euros, highlighting the rarely seen struggles of entrepreneurship. This video aims to provide transparency about the good decisions that led to significant gains, emphasizing that both success and failure are part of the journey. The key is to make more good decisions than bad ones and to learn from every experience.
My first major success came from co-founding Tokimo, a real estate crowdfunding platform. I invested €720,000 across various projects, yielding an average return of 11.5%. While lucrative (earning €40,000-€42,000 in interest), I also discuss the inherent risks, including project delays and potential capital loss, emphasizing the need for diversification. Despite challenges, the platform has raised over €50 million, funding nearly 90 projects.
The second decision involved purchasing and renovating a luxury apartment on the Cannes Croisette. Despite a smooth acquisition facilitated by a quick bank approval and an innovative financial strategy involving a life insurance advance, the renovation process was a nightmare, facing 10 months of delays and conflicts with the contractor. However, the prime location led to a significant increase in value and high rental income, resulting in a total gain of €260,000.
My third good decision was building a villa in Bali. Completed during the COVID-19 pandemic, it initially faced rental challenges due to travel restrictions. Despite this, the villa proved highly profitable, generating €50,000-€70,000 annually in rental income. Although there were minor construction issues and a snag with taxation during the sale, the overall result was a profit of €425,000, making it one of my most passive and successful investments.
The fourth decision was investing in three startups between 2022 and 2024. While typical startup success rates are low, I achieved significant returns by investing in companies whose founders I knew well and where I could leverage my network or skills. This strategy resulted in a gain of €1 million. I notably exited Mysteria, an AI consulting firm, for €270,000 on a €50,000 investment.
Fifth, I built two luxury villas in Nice. This project, which began after meeting an architect following a social media story, involved acquiring a large plot of land and navigating challenges, including 10 bank loan rejections. Despite a €400,000 budget overrun during construction, the project was completed efficiently by a trusted architect. Total investment was €3.4 million, with an estimated current value of €5 million, yielding a latent capital gain of €1.6 million and €300,000 in rental income.
A new activity I've embarked on is acquiring and redeveloping businesses with two experienced associates. Our strategy is to buy small digital or digitally-transformable businesses, apply a proven framework to increase their revenue and profit, and integrate them into a larger group. This approach aims to achieve significant growth (50-300% in months) and valuation multiples. This venture has the potential to generate €10-30 million, aligning with my focus on highly profitable and impactful investments.
In a humorous anecdote, I share how a mistake in buying the wrong cryptocurrency led to an accidental x4 return on a €15,000 investment, turning it into €60,000. This unexpected gain highlights the role of chance, even amidst calculated risks.
I conclude by summarizing key lessons: the importance of humility in success, the inevitability of unforeseen challenges, the value of 'soft skills' developed through hands-on experience, and managing finances prudently. The advice is to invest, take calculated risks, and learn from every experience while being prepared for unpredictable market changes and personal challenges.