Investing in Failures: Inside Sean Jacobsohn’s Unique Hobby and Job

Financial professional Sean Jacobsohn has a unique hobby that sets him apart from his peers in the industry. While his day job involves investing in promising enterprise software startups, his passion lies in collecting artifacts of failure. Jacobsohn is the founder and “chief historian” of The Failure Museum, a collection of items that symbolize capitalist calamity.

From a Juicero machine to an opened bottle of Mazagran, Jacobsohn’s museum showcases products and ideas that didn’t quite hit the mark in the market. Despite recent research suggesting that failure can be detrimental, Jacobsohn firmly believes that “failure is healthy” and has even been invited to speak about it at top business schools across America.

In a recent interview with Axios, Jacobsohn shared insights into his unique hobby. He explained how his collection started after attending a Golden State Warriors game sponsored by a company that was imploding. His message to business school students is to embrace failure and take risks, citing examples of successful companies that had to pivot to find success.

When it comes to identifying potential failures in his investments, Jacobsohn has developed “six forces of failure” that he uses as a guide. By going on sales calls with founders and evaluating the product’s mission-critical nature, he aims to avoid backing companies that are destined to fail.

Despite his hobby being a personal passion, Jacobsohn has seen a positive impact on his job, with his deal-flow increasing significantly. His favorite item in the collection is an unopened bottle of champagne from Webvan’s IPO, but he still has his eyes set on acquiring artifacts from other notable failures like Boeing’s foray into furniture or the ESPN mobile phone.

Overall, Jacobsohn’s unique approach to understanding failure in the business world offers a refreshing perspective on risk-taking and innovation in the financial industry.