Over a thousand different companies make pickleball paddles.
And they’re all basically the same.
So alike, in fact, that even pro pickleball players (yes, that’s a thing) have zero brand loyalty unless they’re sponsored.
Because those thousand different brands only order paddles from about 20 different factories in China that actually make the things. (Bicycles are the same. Nearly every label you’ve ever heard of comes from a handful of factories in Taiwan and a few other places.)
The real tell: only three of these thousand companies have been acquired.
And why does nobody buy a paddle company?
Because there's nothing to buy. A “business” in this vertical is just a different sticker on the same thing everybody else sells. No factory. No customers who'd notice if the label changed.
You can start your own for the price of a plane ticket to China and a logo designer.
It’s something worth looking at in your own business:
If a competitor was starting from scratch today, how easily can they copy your business?
In other words, what’s your moat?
If you don’t have one, it’s time to start digging.
Would you give away 20% of your business?
A lot of business builders are allergic to giving away equity. But Compound Conference is about seeing both sides of the argument.
Sheel Mohnot has built and exited two fintech companies, and today he runs a $450M fund.
He’s the rare voice who argues against the bootstrapper’s instinct: raise the round, lever your business up, get big before you buy the next one.
He’ll be speaking at Compound Conference 2027.
The smartest room for any business owner to be in.
Feb 8–11, 2027 at Sundance Resort in Utah. Tickets are all-inclusive, space is limited.
Get your ticket now — or book a 15 minute call if you have questions.
What’s your moat?
There are 7 kinds of moats in business. The more of these you have, the better.
Scale economies
Counter-positioning
Network effects
Switching costs
Brand
Cornered resource
Process power
They sound technical, but they’re actually pretty straightforward. I did a short newsletter with examples of each here.
But I got these from my all-time favorite book on the subject, 7 Powers by Hamilton Helmer. Honestly one of the best business books of all time.
Here’s to being worth buying.
Michael
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