LBOs explained: leverage amplifies returns

Thank you to OneSkin for sponsoring this video.  Get 15% off OneSkin with the code TIGERSISTERS at https://www.oneskin.co/TIGERSISTERS #oneskinpod

Thank you SoFi for sponsoring this video. Sign up here: https://www.sofi.com/TigerPlus

What if the language of money is actually a social skill? At work dinners, networking events, and founder circles, people casually throw around phrases like “Series B,” “cap table,” and “private equity acquisition.” And if you don’t speak this language, it’s easy to feel like an outsider. 

In today’s Remix episode, we’re combining two of our most informative episodes:  Venture Capital 101 and Private Equity 101.

By the end of this episode, you’ll know: who to take money from; when not to, and how to protect yourself when capital enters the room.

Tune in for tactical lessons on: 

✅ The need-to-know concepts of Venture Capital and Private Equity

✅ How startups go from seed → Series A → unicorn

✅ Why venture capital is actually a power game built on networks and social capital

✅ How PE firms make billions through leveraged buyouts 

✅ What it means for you as an employee, founder, or customer when PE takes over

Take it from us: once you understand how capital moves, you start to see the incentives behind every decision… and the power behind every company.

Timestamps:

01:25: What you’ll learn in this capital masterclass

02:10: Top 5 Parts of Venture Capital

02:34: Venture Capital defined 

03:05: Stages of investing (pre-seed, Series A, Series B)

04:45: Example: Airbnb’s journey

07:10: What “B2B SaaS” actually means (and why VCs love it)

08:30: The 3 things VCs look for: team, market, traction

10:10: Why the team matters more than the idea

11:45: Understanding TAM (total addressable market)

13:40: What traction and product-market fit look like

16:40: Mini Exercise: Map your social capital 

18:30 The dark side of venture capital

20:40 Why VCs push startups toward extreme growth

21:30: Biggest mistake founders take

25:41: Thinking like a VC in your own life

26:12: Portfolio strategy: don’t put all your eggs in one basket

26:45: Conviction over consensus (contrarian thinking)

28:10: Optionality: always create more choices

30:00: Mini Exercise: Dream big & share your one bet 

32:50 Transition: What happens after VC? Enter: PE

34:26: Private Equity defined in 3 parts

335:09: How PE is different from VC

35:50 How PE firms actually make money

37:28: Leveraged buyouts (LBOs) explained

38:50 Case study: Toys “R” Us and the risk of leverage

40:02: Why PE often gets a bad reputation

43:53: When PE actually improves companies

44:30: How PE affects employees and customers

46:12: Closing thoughts and reflections

🐯👯‍♀️ We’re the Tiger Sisters — your Wall Street & Silicon Valley big sisters Decoding Money • Power • Love

✨ New episodes every Monday | Shorts all week ✨

💌 Want to partner with us? 

Sponsorships: partnerships@tigersisters.co

Why trust us?

▫️ Cherie Brooke Luo — 100M+ views demystifying tech, finance & MBAs

▫️ Jean Luo — ex-Goldman Sachs, ex-Snapchat exec, 50+ AI patents, startup investor

▫️ Together: 4 Ivy League degrees • built billion-dollar products • two startups — decoded for you

What you’ll get (and keep):

▫️ 🚀 Ivy League cheat sheets — no $250K tuition

▫️ Personal finance playbooks (salary, investing, negotiation)

▫️ Networking scripts behind $100M+ deals & job offers

▫️ Real conversations with CEOs, operators & investors

▫️ Mindset resets — clarity without the pricey coach

▫️ Systems for career, money, and long-term growth

💛 LET’S CONNECT

~ CHERIE ~

Instagram — /cherie.brooke

TikTok — /cherie.brooke

Substack — cherieluo.substack.com

LinkedIn — /cherie-luo

~ JEAN ~

Instagram — /jeanluo_

LinkedIn — /jeanluo

👉 Hit Subscribe & tap the 🔔, then leave a ⭐️⭐️⭐️⭐️⭐️ review on Spotify & Apple Podcasts. It takes 10 seconds and makes a massive difference in helping new people discover Tiger Sisters.

🛍️ Items:

🍵 Sisters Matcha — www.sistersmatcha.com

🌀 Everything else — https://amzn.to/3z0dx5b