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Copyright © 2016 by Anthony Scaramucci. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.

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ISBN 978–1–119–11633–2 (Hardcover)
ISBN 978–1–119–15367–2 (ePDF)
ISBN 978–1–119–15366–5 (ePub)

For Deidre,
AJ, Amelia,
Anthony, and Nicholas

There was widespread panic in fall 2008 with the collapse of Lehman Brothers—the largest bankruptcy in history—but by late-winter/early-spring 2009, the bottom really fell out and there was widespread pessimism and gloom. By March 2009 the stock market was screeching to a 13-year bottom. The Federal Reserve was about to unleash record liquidity, but before that happened, many hedge funds went out of business and there was massive consolidation in the commercial and investment banking sectors. It felt like a precursor to the next great global recession.

There was a small firm named SkyBridge run by a guy that I had never met. His name was Anthony Scaramucci and from what I could tell, they had a small fund that was hobbled by the global financial crisis but they were trying to pretend that they were going to be okay. A partner there named Victor Oviedo reached out to me to see if I wanted to speak at their hedge fund conference, which they were calling the SALT (which stood for SkyBridge Alternatives) Conference. They wanted me on a panel to discuss the future.

“Why me?” I asked.

“Our industry is facing unprecedented turbulence and downturns, highlighted by dire forecasts and unnerving negativity. You, however, are an extreme optimist and we need a boost of positivity.” Victor explained. It would be another three years before I co-authored Abundance: The Future is Better Than You Think, but I was prepared to talk about a future where technological innovation would make it possible to provide health and wealth for everyone on the planet. With that premise in mind, I made the case about the abundant future to a dour group of delegates who were uncertain about the economy and its impact on their businesses. Yet, what none of us knew then was that we were at the beginning of an entrepreneurial adventure for SkyBridge and its founder Anthony Scaramucci.

I first met Anthony at that 2009 event and from the looks of him you wouldn’t have known that he—and his business—were hurting. He had confidence and charisma, was a great public speaker, and the consummate salesman. But more importantly, he had a level of persistence and passion I rarely see.

What you will learn from Hopping Over the Rabbit Hole is that SkyBridge was teetering and was close to failing. Anthony kept a brave front and pushed on, and the insights he learned are told in the following pages in all their glory, in the most refreshingly honest and thoughtful fashion. I often fear reading autobiographical books about entrepreneurs since most sanitize the facts and forget their failures. Rich and successful people have a tendency to do that. The glory that they have found starts to distort their past in an effort to make their journey look effortless. You won’t find any of that here. While the story hits rock bottom on a number of occasions, both the company and the culture never break, they bounce.

Anthony has written an honest appraisal of his firm and his own skills as an entrepreneur replete with personal anecdotes about human weakness and folly. He also loaded this book with advice. If you are starting a business and are buying this book as a roadmap or an inspirational tool, I would suggest that you read it with a highlighter except that you’d probably mark up every page. The material is that good—primarily because it is so honest and raw. You can feel the anxiety and fear of failure mixed in with the overconfidence and unbridled enthusiasm. Anthony grew up in a middle-class family, so while he had a decent upbringing and lifestyle, there was no safety net to fall onto if things went south. He tells his stories with a level of honesty and graciousness. You can feel his excitement but also his frailty and fear.

In September 2014, Anthony attended the Executive Program of Singularity University (SU), the Silicon Valley-based institution focused on exponential technologies that I co-founded with artificial intelligence legend (and Google’s Chief Innovation Officer), Ray Kurzweil. His son AJ had previously attended SU’s full 10-week Global Solutions Program (GSP) and he coaxed his dad to come out for the one-week intensive executive version. AJ would eventually go on to become a member of my Strike Force (an apprentice), but back then he was trying to open his father’s eyes to the world of disruptive exponential technologies such as nanotechnology, virtual reality, and artificial intelligence. When I had the chance to connect with Anthony at SU and ask him the question I often chide New York financial types with, “Are you changing the world?” he responded quickly by saying, “No, not in the way you guys are.” There was no false modesty in that statement, but he missed something big.

Truth be told, Anthony and SkyBridge were in fact transforming their industry. Hedge funds were primarily for the very wealthy or for the sophisticated institution. SkyBridge came along with a product that was able to bring the world of hedge fund investing to the mass affluent. Years ago, hedge fund managers were only taking large minimum investment checks. In some cases, the very best managers had a $10 or $15 million minimum investment. SkyBridge created a vehicle where investors only need to put up $25,000. This changed the landscape for the hedge fund community and he and his firm increased the number of people that could invest in these sorts of alternative investments. It also fits into the themes that I often write and speak about: the democratization of products and services that used to be reserved for the ultra-wealthy and are now being made available to the masses.

The life of the entrepreneur is typically only glamorous in hindsight. I often joke that many of my companies have been “overnight successes… after ten years of hard work.” The daily grind has countless ups and downs, and far too many stressful decisions that hold the fate of a company and its employees in the balance. While we glorify the success stories in the media, rarely do we get a true glimpse of what is actually happening day to day. Anthony not only provides that here, but he is willing to share what he learned while eating humble pie and stumbling on the road to success.

That SALT conference that I attended in 2009—which was born from the failures of the 2008 global financial crisis—is now the leading event in the world of alternative investments. More than 2,200 people turn up at the Bellagio Hotel each May to immerse themselves in three and a half days of learning, networking, and entertainment. SkyBridge had created a community that connects Hollywood, Wall Street, Washington DC, technology, and biotechnology in a way that leaves people mesmerized.

While I don’t wish setbacks on any of my friends, what I am confident of is if SkyBridge or Anthony ever get into a rut again, something very positive will come out of it. By reading this book you will learn the intimate details and lessons of how Anthony and his colleagues snatched victory from what looked like an imminent defeat. Being an entrepreneur is not easy, and being an entrepreneur with bold dreams takes guts.

I encourage you to turn these pages and find out what drives people to dream big. What mindset enables someone to start with nothing and shoot for the stars, all the while refusing to give up where other mere mortals accept defeat. My guess is you will find yourself somewhere here in this story and by doing so it will radically transform your self and your business.

PETER H. DIAMANDIS, MD
Founder and Executive Chairman, XPRIZE Foundation
Founder and Executive Chairman, Singularity University
Author of New York Times bestsellers Abundance and BOLD

There is no way around it. Business can be brutal. Consider this: Half of all businesses will vanish in only their first year of operation. Eighty percent of new businesses will have failed by their fifth anniversary. At the 10-year mark, 96% will have failed. Only 4% survive a decade! And that doesn’t mean you are out of the weeds. Heck, even businesses that have been around 100 years have collapsed (Remember Lehman Brothers?). And yet, for those that find a way to break through the limitations, there are not only economic rewards but deep emotional and spiritual ones as well.

Business owners are Gladiators because the longer they play the game, the greater statistical chance their business will die. It takes a unique psychology to step into the arena knowing the odds. Some might say you need to be a little crazy. But Gladiators don’t subscribe to statistics. They simply step up to the challenge and embrace the level of commitment and sacrifice required—day in, day out, rain or shine. There is a kinship that all entrepreneurs share because we know what it takes—Anthony knows what it takes.

This book captures the essence of the Gladiator spirit with Anthony’s own inspiring and profound story of reinventing his business after the financial crises to become Ernst and Young’s 2011 Entrepreneur of the Year.I know you’ll appreciate his candid approach to discussing his own dark days. And yet, he didn’t let the dark days define him. He used those challenges as fuel to find a way. Fuel to grow. Fuel to learn. Fuel to think outside the box. Anthony is an extraordinary example of what’s possible when you won’t tolerate failure or excuses within yourself or others involved in your mission.

So what does it take to become truly successful in business, to grow your company and build true wealth for yourself, your shareholders, and your employees? The answer to this question is simple yet profound. You must become obsessed with one thing: figuring out how you can do more for others than anyone else could possibly imagine! Finding a way to continually add more value. That is precisely why Anthony’s SALT conference is off the charts each and every year.

Motive does matter, and if you can remember to fall in love with your client, not your product or service, you are going to win in the long run. Products and services will be disrupted and replaced, but if you always strive to find unique and innovative ways to meet your customers’ needs, you will create raving fans, not just satisfied clients. Satisfied clients will jump ship while raving clients will be with you until the end.

Over the past 39 years, I have had the privilege of working with hundreds of thousands of business owners, from time tested billionaires to those just beginning the journey. One thing I know for sure: 80 percent of success is psychology and 20 percent is mechanics. You can teach someone every strategy, but if their mind is dominated by fear, overwhelming anxiety and anger, they will self-destruct or leave a wake of destruction behind them. In the pages ahead, Anthony outlines some killer strategies but more importantly, he reveals the winning psychologyoverwhelmed by anxiety and anger”? “overwhelming anxiety and anger”?"?>.

You have the opportunity to extract as much wisdom from these pages as you possibly can because you’re about to learn from a man who walks his talk. I wish for you challenges, enormous growth, and great success.

With Deep Respect,
TONY ROBBINS