BOM - Another Way by Dave Whorton

The Real Estate Espresso Podcast

BOM – Another Way by Dave Whorton

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BOM – Another Way by Dave Whorton

Welcome to the Real Estate Espresso Podcast, your morning shot of what’s new in the world of real estate investing. I’m your host, Victor Menasce.

Happy first of the month. On the first day of each month, we review the book of the month. Now, in order for a book to be worthy of book of the month, it has to be impactful enough that it will either change your life or your perspective on the world. Whether it does or not, of course, is entirely up to you.

If you consume it as a piece of entertainment, you’re missing the point. But if you internalize it and internalize its messages, you have a realistic shot at lasting growth.

Our book this month is an awesome book. It’s a book called Another Way by Dave Whorton. This was a fascinating read because it really touched on many of the folks that I knew or knew of in Silicon Valley.

Dave Whorton was an associate initially at the storied venture capital firm of Kleiner Perkins, Caufield & Byers, one of the premier firms in Silicon Valley located on Sand Hill Road in Menlo Park. This is where most of the major venture capital firms have their offices.

This book is really about rejecting Silicon Valley’s unicorn approach, instead focusing more on the evergreen model: companies built to last and last and last. That is the subtitle of the book.

Whorton begins the book by recounting his years inside the inner sanctum of venture capital firm Kleiner Perkins. He was reporting directly to John Doerr, who is famous for his work at Netscape. He was part of the team that financed Google and co‑founded Drugstore.com during the dot‑com frenzy.

The prevailing wisdom at the time was simple: raise as much capital as possible, scale at breakneck speed, and worry about profitability later. Success was defined by unicorn valuations and splashy IPOs.

But Whorton saw the cracks in that model. Drugstore.com soared to $67.50 a share in 1999, only to collapse in the bust. That blitz‑scaling model worked for a handful of companies in the winner‑takes‑all market. He was also involved in Amazon in the early years. But for most, it was a recipe for burnout, for dilution, and eventual failure.

That realization set Whorton on a journey to discover another way. A lot of his early formative years were the result of an internship at Hewlett‑Packard, where he got to see three different locations. The HP Way was really deeply ingrained in the culture.

At the heart of the book is the evergreen model. It’s a philosophy of building companies that last, last, last. He outlines the evergreen 7P framework, which includes:

Number one, purpose: having a mission that goes beyond personal wealth creation.

Number two is perseverance: commitment to long‑term endurance.

Number three is people first: prioritizing employees, customers, and communities.

Number four is profitability: growth funded through cash flow, not just endless rounds of dilution and endless rounds of investment.

Number four is private: stay away from the public market pressures.

Number five is patience: a deliberate pace, resisting the frenzy of blitz‑scaling.

And then philosophy: a values‑driven approach to leadership.

The framework is not theoretical. Whorton highlights real‑world examples of evergreen companies, businesses that have thrived for decades by staying true to those principles. The message is clear: enduring companies are not accidents. They’re designed with intention.

At the core of his message, you want to reject the false binary. You don’t have to choose between hyper‑growth or irrelevance. I heard that phrase many times in Silicon Valley. Many founders feel pressured to pursue VC funding even when the business fundamentals don’t require it. Evergreen offers a viable third alternative.

Cash is king. Evergreen companies grow through profitability, not through dilution. That forces discipline and assures founders retain control. Having a mission, a purpose, attracts talent in a world where employees crave meaning. Evergreen companies spur loyalty and innovation.

No, Whorton doesn’t demonize the venture capital model outright. He acknowledges its role in creating transformative companies like Google, which, by the way, he was directly involved with. He argues the VC model is misaligned to businesses that don’t fit the narrow criteria of network effects or winner‑takes‑all type markets.

The problem is cultural. Silicon Valley lionizes unicorns and IPOs while dismissing companies that grow steadily and profitably. Whorton’s book is a call to reframe success. Enduring companies that serve people and communities are just as heroic as billion‑dollar exits.

The timing of Another Way is critical. Cheap capital fueled by low interest rates created a generation of startups addicted to fundraising. But as economic conditions tighten, profitability and resilience are back in vogue. Evergreen principles are not just idealistic; they’re pragmatic in today’s climate.

For founders in construction, healthcare, and real estate, evergreen thinking is particularly relevant. These sectors thrive on long‑term relationships, on steady cash flow, and community impact.

The real takeaway is this: entrepreneurs have to decide what game they’re going to play. If your goal is to build a company that endures for generations, evergreen offers a blueprint. And if your goal is a quick exit, venture capital might be the approach to take. Confusing the two is dangerous.

The message in this book is clear: choose your path deliberately. Don’t let the rocket‑ship culture dictate your destiny. There is another way, and it might just be the best way.

As you think about that, have an awesome rest of your day. Go make some great things happen. We’ll talk again tomorrow.

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