Building a Startup Studio at 22 with Matt Espinoza

TKS Podcast #35

Reminder: I’m Michael Karnjanaprakorn, ex-founder, now exploring what's next. My podcast, The Karnjanaprakorn Show (TKS), follows my journey as I chat with people who take unique approaches to business and life. This newsletter highlights key takeaways from the latest episode.

---

Matt Espinoza (@MattEspoz) is building a startup studio with two exits at 22.

As I consider my next steps, I was curious about building a startup studio for niche software ideas, so I chatted with Matt to learn how he does it.

We dive into his unique approach to building Halation, a studio-model holding company focused on creating one-of-a-kind software. Matt explains how he selects the 'game' he wants to play, why he collaborates with friends, and the crucial role of a ‘cash cow’ to fund other ventures. We also discuss validating new ideas, finding the right operating partners, and his "whale-and-barnacle" strategy. To wrap up, we share thoughts on balancing work and life.

Listen on Apple, Spotify, and YouTube.

Takeaways

1. Choosing the Right Game — Matt opts out of the traditional VC-backed venture route. Instead of focusing on a single company, he’s building a holding company that incubates multiple businesses.

2. Power of a Cash Cow — allows you to fund your projects internally without relying on external funding: “You’re fully bootstrapped. You have one company that’s your cash-flowing asset, which allows you to build other ventures. If you can start when you are younger, it compounds.”

3. Leveraging Marketplaces — The "whale-and-barnacle" strategy involves building on top of established platforms with large user bases (e.g., Shopify, Stripe, Webflow). This strategy provides built-in distribution channels.

4. Quality over Quantity — It’s not about creating endless companies, but about doing a few very well: “The ideal studio is having really good companies, one company a year, that we’re either incubating or buying.”

5. Motivation: He optimizes for three things: “Build one-of-a-kind software, work with incredible people, and have incentives so that when I win, my friends also win.”

Enjoy the episode!

-Michael