Recode Decode: Ted Leonsis, Founder, Revolution Growth

Investment Focus

Ted Leonsis shares his investment philosophy, emphasizing the importance of aligning financial success with social impact. He highlights Revolution Foods, a company focused on providing healthy school lunches, as a prime example of this strategy. Leonsis believes in investing in companies that not only generate profit but also contribute positively to society, such as Shinola, which creates jobs in Detroit by employing laid-off auto workers 1. He also discusses the evolution of local e-commerce, noting that companies like Groupon have transitioned from group discounting to becoming significant players in local markets 2.

There's something about this connection between doing good and doing well.

--- Ted Leonsis

This approach reflects his belief in the untapped potential of local, social, and mobile commerce.

   

Learning from Errors

Reflecting on past mistakes, Ted Leonsis emphasizes the importance of trusting one's instincts and learning from failures. He recounts a significant error at AOL, where he advocated for allowing departing customers to keep their AOL client for free, despite expert advice against it. This decision, he believes, could have positioned AOL as a front-end service for many users, highlighting the value of intuition over conventional wisdom 3. Leonsis also criticizes the current entrepreneurial culture for celebrating premature success, urging young entrepreneurs to focus on creating great products and satisfying customers before seeking exits 4.

To thine own self be true.

--- Ted Leonsis

His insights underscore the need for authenticity and long-term vision in business.