Backing IRL Social Clubs — Packy McCormick

For IRL Member Communities to be venture backable, they need to have a desire to build a big, fast-growing business that is anchored by, but not dependent on, thoughtfully-designed space to grow revenue. They should finance the space itself - at a minimum the buildout and security deposit costs, and at best, the full costs of the lease - through ma... See more

I see this as the delineation between IRL Clubs 1.0 and IRL Clubs 2.0. In order to be venture backable, the new generation will have to take advantage of the points discussed in 1-4 and leverage its technology, community, and brand to scale beyond its four walls.

But the challenge with physical space-based businesses is not the size of the overall market, it's capturing enough of it in a scaleable way to build a venture backable business. A massive market with a felt need is necessary but not sufficient for venture scale growth.

In order for IRL Clubs to be attractive venture investments, they need to scale beyond the four walls. They need to make money independent of adding more square feet.

Because of our genetic need for community, novelty, and connection, the markets for third places, communities, and experiences are massive. The experience economy is growing four times faster than the consumption economy, Starbucks is worth $103 billion, Country Clubs alone are a $24.5 billion industry in the United State, and the amount we spend o... See more