Cockroaches versus Unicorns?
This week, I had the pleasure of interviewing Michael Macolino. Michael and I connected on LinkedIn years ago, but we never had the chance to meet or chat in person until now. Our conversation was a powerful reminder of the value of reaching out and engaging with people in your LinkedIn network. 🤝
Michael currently serves as a strategic advisor to companies in the AgriFood Tech space, with a particular focus on commercialization and growth strategies. 🌱 With a long track record as a successful entrepreneur, he was kind enough to sit down and share his story with me.
From the moment we began our video call, it was clear that Michael has a passion for luxury cars, as the shelves behind him were adorned with several striking models. 🚗 This love for cars led to his very first business venture.
"I wasn't academically strong in school, and I knew from a pretty early age that I wanted to learn how to start a business," Michael explained.
His entrepreneurial journey began in the early 2000s with nothing more than a sponge, a bucket, and a letter drop in Adelaide’s wealthiest suburbs. 🧽 His offer? A car cleaning service for luxury vehicles.
Sometimes, success is about timing. ⏳ In 2006, Australia faced severe droughts and water restrictions, creating an unexpected opportunity for Michael. He developed a method that used less than 3 litres of water to clean each car. 💧 This innovation led to him becoming one of only three individuals in Adelaide licensed to commercially clean cars and boats. 🚤 Soon, he had cornered the market on some of the most expensive cars in the city.
“Many of my clients were some of Adelaide’s most successful people, who went on to become my business mentors” Michael shared.
One of those clients eventually became the bridge to his next business venture—developing and building a marina. ⚓
After selling the car washing business, Michael embarked on raising $30 million for the marina development. 💸 "That project was incredibly formative for me," he noted.
Raising $30 million is a daunting task in any environment, but doing so during the 2008 global financial crisis added another layer of difficulty. 🌍 Michael had to quickly develop skills in sales, marketing, and capital raising, all while navigating complex government approval processes. Despite the challenges, the successful completion of the project cemented Michael's passion for building businesses from the ground up. 🏗️
"I love the process of starting a business. Building something from nothing," he said.
Over the next 8-10 years, Michael launched several more businesses, including a gym 🏋️ and a software implementation firm. It was the latter that presented some of his greatest entrepreneurial challenges. After growing the firm into a successful business, Michael merged with a friend, bringing on additional co-founders in an effort to raise significant VC funding for global expansion. 🌐
"Working with co-founders is a completely different beast," Michael reflected.
After building the business to over $3 Million in ARR, a disagreement about valuation and terms with co-founders while raising a Series A, led to a difficult decision to leave his own company. This ultimately cost him a few million dollars in equity and many months of expensive legal battles. 🚨
"I was pretty battered after that experience and decided to take a break from entrepreneurship."
For the first time in his career, Michael sought stability. He joined BDO as an advisor, where he was given the freedom to explore a variety of business development opportunities. 🛠️ This role provided both the stability and creative freedom he craved.
"I was interested in Agriculture and started attending grower days and field days, where I met a lot of farmers," Michael explained. 🌾
At BDO, Michael developed a deep interest in the AgriFood Tech space. He pitched the idea to the firm and became the Director of AgriFood Tech. 🚜
After five years in a stable role, Michael was ready to dive back into the startup world. He took on the role of Managing Director for SVG Ventures | THRIVE, running an accelerator focused on scaling AgriFood Tech companies with global ambitions. 🌍 Supporting founders and growing startups was something Michael excelled at, but eventually, his desire to build something of his own resurfaced. In March of this year, he launched his own commercialisation and investment advisory business.
"We can build AgriFood Tech companies differently," he stated.
While many investors and advisors chase unicorns 🦄, Michael takes a different approach. He wants to help build a collective of startups that grow into successful and sustainable SMEs. Companies that can grow in any environment. 🌱
"We have a lot of companies building real, tangible solutions. Incumbents are being squeezed by new regulations and advances in technology, creating a perfect storm for innovation. 🌪️ Build something real, co-develop with customers, and start generating revenue quickly. Everyone’s hunting for unicorns. I’m more interested in cockroaches—companies that can grow and be strong regardless of the market. You can’t kill them!"
I had a fantastic time chatting with Michael and walked away with invaluable insights. His story is a great example of how entrepreneurship is full of changes and challenges, and it will often lead you in unexpected directions. 💡 As we wrapped up, I asked him what advice he would give his younger self. His answer? Patience. 🧘♂️ Many of the challenges he faced came from trying to force a vision into reality too quickly. His approach now is to "build substance, and build a strong foundation from which to launch." 🚀
You can learn more about Michael and his services at his website here.
[At the end of every interview, I always ask if the interviewee has an 'ask.' Michael's? If you're an investor in the AgriFood Tech space and you share his vision of building sustainable SMEs (with valuations in the range of $200-500M), Michael would love to connect.]
