1 00:00:02,240 --> 00:00:08,760 Speaker 1: Afro Tech World. Child Sutston, managing partner at Precursor Ventures, 2 00:00:08,920 --> 00:00:12,520 Speaker 1: is being interviewed by Isa Watson, founder and CEO at Squad, 3 00:00:12,880 --> 00:00:15,720 Speaker 1: a VC backed software company that helps people build their 4 00:00:15,720 --> 00:00:20,360 Speaker 1: real life friendships and communities. On the virtual stage, Child 5 00:00:20,440 --> 00:00:22,840 Speaker 1: sets some light on how he picks the founders, not 6 00:00:23,000 --> 00:00:26,560 Speaker 1: the companies he invests in. If I think about most 7 00:00:26,560 --> 00:00:29,120 Speaker 1: of the people we back, though, it really is some 8 00:00:29,200 --> 00:00:33,920 Speaker 1: combination of the clarity of purpose around what they're building. 9 00:00:33,960 --> 00:00:35,640 Speaker 1: You know, most of the companies we invest in, they 10 00:00:35,680 --> 00:00:37,960 Speaker 1: don't have a ton of data or attraction. There's no 11 00:00:38,080 --> 00:00:41,680 Speaker 1: products to touch a feel. In most cases, if I'm 12 00:00:41,680 --> 00:00:43,960 Speaker 1: trying to assess, is the person sitting across from me 13 00:00:44,720 --> 00:00:47,000 Speaker 1: had they really thought deeply about the problem and trying 14 00:00:47,040 --> 00:00:48,800 Speaker 1: to solve it. Do they have a thesis on how 15 00:00:48,800 --> 00:00:50,840 Speaker 1: to solve it that I think is going to play 16 00:00:50,880 --> 00:00:53,159 Speaker 1: out well over the next five seven years. That's a 17 00:00:53,200 --> 00:00:56,480 Speaker 1: big part of it. The second piece, though, that's related, 18 00:00:56,600 --> 00:00:59,080 Speaker 1: is do I think that the founder has capacity for 19 00:00:59,120 --> 00:01:02,320 Speaker 1: a tremendous person no growth as a leader, And it's 20 00:01:02,400 --> 00:01:04,720 Speaker 1: super subjective and like, part of what I'm looking for 21 00:01:04,840 --> 00:01:07,760 Speaker 1: is people that I think the process of running and 22 00:01:07,800 --> 00:01:10,040 Speaker 1: building a company is going to bring the best out 23 00:01:10,040 --> 00:01:12,000 Speaker 1: of them. They have the work ethic, they have to drive, 24 00:01:12,040 --> 00:01:15,319 Speaker 1: they have the focus, but they also have areas um 25 00:01:15,360 --> 00:01:17,240 Speaker 1: where they can grow and develop as a leader and 26 00:01:17,280 --> 00:01:18,920 Speaker 1: where a startup is going to really put them in 27 00:01:18,920 --> 00:01:21,840 Speaker 1: a position to do that. And generally speaking, when I 28 00:01:21,880 --> 00:01:24,119 Speaker 1: see that, that's what we're looking for. It's less about, 29 00:01:24,440 --> 00:01:27,600 Speaker 1: you know, the market or the space and attraction. That's 30 00:01:27,640 --> 00:01:30,839 Speaker 1: really more about how how much the founders thought about 31 00:01:30,840 --> 00:01:35,480 Speaker 1: the problem and the clearly they have around solution. I'm 32 00:01:35,520 --> 00:01:39,039 Speaker 1: Will Lucas and this is Black Tech, Green Money. I'm 33 00:01:39,040 --> 00:01:41,160 Speaker 1: gonna introduce you some of the biggest names, some of 34 00:01:41,160 --> 00:01:44,360 Speaker 1: the brightest minds and brilliant ideas. If you have black 35 00:01:44,400 --> 00:01:46,880 Speaker 1: in building or simply using tech to secure your bag, 36 00:01:47,360 --> 00:01:55,200 Speaker 1: this podcast is for you, Canadas. Matthews Roukine is the 37 00:01:55,200 --> 00:01:58,800 Speaker 1: founder and CEO of Lightship Capital, the Cincinnati based portfolio 38 00:01:58,880 --> 00:02:02,240 Speaker 1: service firm including a Celebrators, Helmets and New met an 39 00:02:02,240 --> 00:02:05,720 Speaker 1: adventure capital fund Lightship, where she serves as managing partner. 40 00:02:07,000 --> 00:02:10,680 Speaker 1: Lightship companies work together in support of underrepresented, early stage, 41 00:02:10,880 --> 00:02:15,240 Speaker 1: transformational businesses. Candice has a huge focus on investing in 42 00:02:15,240 --> 00:02:18,839 Speaker 1: the Midwest her own statements where other investors he fly 43 00:02:18,919 --> 00:02:23,040 Speaker 1: over country, She's he's a gold mine Aska. Why then 44 00:02:23,120 --> 00:02:27,040 Speaker 1: other vcs aren't paying attention to the Midwest opportunity. I'm 45 00:02:27,240 --> 00:02:32,800 Speaker 1: quite certain why we are overlooked. I think it's really um. 46 00:02:32,840 --> 00:02:37,560 Speaker 1: A bit of it is just not doing the work right. 47 00:02:37,639 --> 00:02:41,040 Speaker 1: So UM. You know, there was kind of an uproar 48 00:02:41,160 --> 00:02:44,560 Speaker 1: on the internet without the CEO of Wells Fargo UM 49 00:02:44,600 --> 00:02:49,720 Speaker 1: saying that they've had a very limited pool of black 50 00:02:49,840 --> 00:02:55,000 Speaker 1: talent um to kind of draw from. That's just lazy, right. 51 00:02:55,080 --> 00:02:58,320 Speaker 1: So the Midwest is considered a fly over country, so 52 00:02:58,400 --> 00:03:01,760 Speaker 1: folks are flying from Dan Francisco to New York or 53 00:03:02,040 --> 00:03:06,120 Speaker 1: San Francisco to Boston to look for deals. Now, of course, 54 00:03:06,240 --> 00:03:08,800 Speaker 1: are there a lot of great deals in those areas. Sure, 55 00:03:08,960 --> 00:03:14,480 Speaker 1: because UM exits bring more activity, you get more mentors, 56 00:03:14,520 --> 00:03:18,200 Speaker 1: you have more dollars, so all of those things spin up. UM. 57 00:03:18,240 --> 00:03:21,600 Speaker 1: But there are also great corporations that have been built 58 00:03:21,600 --> 00:03:25,880 Speaker 1: in the Midwest. You've got Eli Lily in Indiana. You've 59 00:03:25,919 --> 00:03:29,200 Speaker 1: got Procter and Gamble in Ohio. You've got in Michigan 60 00:03:29,680 --> 00:03:34,040 Speaker 1: Quicken and rocket Like. You've got some amazing organizations throughout 61 00:03:34,080 --> 00:03:37,920 Speaker 1: the Midwest where there's incredible you know kind of like 62 00:03:38,160 --> 00:03:42,040 Speaker 1: minds share and talent. Um. So so why fly over 63 00:03:42,120 --> 00:03:46,400 Speaker 1: here when we have incredible talent here and so we're 64 00:03:46,440 --> 00:03:50,200 Speaker 1: just we're fishing from upon that no one's interested in 65 00:03:50,360 --> 00:03:54,440 Speaker 1: fishing it, and we're taking advantage of incredible deals. Yeah. 66 00:03:54,760 --> 00:03:58,600 Speaker 1: Part of going back to you know, your your bio 67 00:03:58,640 --> 00:04:01,720 Speaker 1: which I read, and you've impact the state, local policy. 68 00:04:02,840 --> 00:04:06,320 Speaker 1: Part of the issues that happen in these communities is 69 00:04:06,360 --> 00:04:09,480 Speaker 1: the eco systems are broken to things around the spirit 70 00:04:09,520 --> 00:04:14,880 Speaker 1: of entrepreneurship that go to support it. Again, local government, university, um. Again, 71 00:04:14,960 --> 00:04:18,840 Speaker 1: those big organizations, they're not um, working together for that 72 00:04:19,000 --> 00:04:23,919 Speaker 1: entrepreneurial community. You didn't have that feeling of powerlessness to 73 00:04:24,000 --> 00:04:26,640 Speaker 1: not being able to change it, but many people do. 74 00:04:26,839 --> 00:04:30,320 Speaker 1: What is it, um, that you did as those initial 75 00:04:30,440 --> 00:04:34,840 Speaker 1: steps to be able to impact that ecosystem sold that 76 00:04:34,880 --> 00:04:37,159 Speaker 1: these people can come to the table and work for 77 00:04:37,320 --> 00:04:42,480 Speaker 1: the betterment of entrepreneurs. You know, I think I just 78 00:04:42,520 --> 00:04:47,320 Speaker 1: didn't know any better. UM. So, I mean I've always 79 00:04:47,320 --> 00:04:51,479 Speaker 1: been taught from a young age, like stick up for yourself. UM. 80 00:04:51,520 --> 00:04:55,120 Speaker 1: You know, let people hear your voice, don't take no 81 00:04:55,360 --> 00:04:59,039 Speaker 1: for an answer. Um. You know, I think we all 82 00:04:59,080 --> 00:05:03,600 Speaker 1: walked uphill in both directions with you know, poor bad 83 00:05:03,680 --> 00:05:05,760 Speaker 1: shoes in the snow. Like, you know, it was just 84 00:05:05,920 --> 00:05:08,520 Speaker 1: kind of raised from a humble upbringing and so like 85 00:05:09,400 --> 00:05:12,880 Speaker 1: I've always gotten what I've what I've needed and wanted 86 00:05:12,920 --> 00:05:15,880 Speaker 1: because I asked for it, I worked for it. So 87 00:05:15,960 --> 00:05:20,400 Speaker 1: as I've been building an ecosystem here and continue to 88 00:05:20,480 --> 00:05:24,240 Speaker 1: kind of attempt to build additional ecosystems elsewhere, it's just 89 00:05:24,600 --> 00:05:30,760 Speaker 1: a matter of having hard conversations with lots of different people. Um, 90 00:05:30,800 --> 00:05:34,720 Speaker 1: it's just it's not been easy work, but it's been consistent. 91 00:05:35,080 --> 00:05:38,679 Speaker 1: So I'm consistently going and knocking on doors and then 92 00:05:39,200 --> 00:05:41,719 Speaker 1: if they're not open, like I opened it a little 93 00:05:41,720 --> 00:05:43,760 Speaker 1: bit and then we have a conversation. So it's just 94 00:05:43,839 --> 00:05:47,919 Speaker 1: been a continuous process process and and part of that 95 00:05:48,000 --> 00:05:51,239 Speaker 1: kind of affecting um, you know, kind of legislation and law. 96 00:05:51,400 --> 00:05:54,960 Speaker 1: It's it's really just starting with a conversation with someone 97 00:05:55,000 --> 00:05:58,000 Speaker 1: in an office and then introduces you to someone else 98 00:05:58,080 --> 00:06:00,040 Speaker 1: and you tell them that story. So it's just a 99 00:06:00,440 --> 00:06:06,000 Speaker 1: consistent storytelling of these Um it's been consistent storytelling and 100 00:06:06,440 --> 00:06:11,560 Speaker 1: sharing the data around the issues, and um, you know, 101 00:06:11,600 --> 00:06:14,039 Speaker 1: it got us to this point and now the entire 102 00:06:14,160 --> 00:06:17,640 Speaker 1: world is looking at these issues with a with a 103 00:06:17,680 --> 00:06:21,080 Speaker 1: greater lens. We were all though doing this work previously 104 00:06:21,920 --> 00:06:25,200 Speaker 1: when you talked about, you know, sharing data around the issues, 105 00:06:25,240 --> 00:06:28,040 Speaker 1: and so many of these communities that data is not available, 106 00:06:28,040 --> 00:06:31,240 Speaker 1: so it may be anecdotal early. Um, how do you 107 00:06:31,279 --> 00:06:34,120 Speaker 1: how do you make that case when it is anecdotal? 108 00:06:36,800 --> 00:06:39,440 Speaker 1: You just search for either you you create your own research. 109 00:06:41,720 --> 00:06:44,679 Speaker 1: And that's where that's where a lot of our work, 110 00:06:44,800 --> 00:06:48,520 Speaker 1: as you know, will happen in Ohio. Right Like it 111 00:06:48,560 --> 00:06:53,280 Speaker 1: was anecdotal, Um, it was qualitative, and so we felt 112 00:06:53,440 --> 00:06:56,800 Speaker 1: the problems, but we didn't we didn't necessarily and we 113 00:06:56,880 --> 00:06:59,880 Speaker 1: knew how to verbalize it. But folks just don't listen 114 00:06:59,880 --> 00:07:03,359 Speaker 1: to anything other than data, right, So, um, you know, 115 00:07:03,400 --> 00:07:05,120 Speaker 1: part of the work that we did here in Sincy 116 00:07:05,120 --> 00:07:08,080 Speaker 1: and throughout the state of Ohio was that Minority Entrepreneurship 117 00:07:08,080 --> 00:07:11,200 Speaker 1: Connectivity Assessment, which was really like taking a deep dive 118 00:07:11,240 --> 00:07:15,560 Speaker 1: into our tech ecosystems throughout the state and figuring out, um, 119 00:07:15,600 --> 00:07:17,600 Speaker 1: you know, while we are a super diverse state, we 120 00:07:17,640 --> 00:07:20,680 Speaker 1: are not all that inclusive or equitable with our dollars. 121 00:07:21,120 --> 00:07:23,680 Speaker 1: And so once you bring that to life for people. 122 00:07:24,280 --> 00:07:29,280 Speaker 1: They really get it right, um, at least they get 123 00:07:29,280 --> 00:07:31,400 Speaker 1: it a little bit. Now. Do we still have issues 124 00:07:31,440 --> 00:07:36,040 Speaker 1: in society, absolutely, um, But we are tackling this one 125 00:07:36,080 --> 00:07:39,679 Speaker 1: particular area. So I just really believe that it's consistency. 126 00:07:40,040 --> 00:07:44,120 Speaker 1: It's also just creating things that don't exist, um, and 127 00:07:44,200 --> 00:07:47,520 Speaker 1: spending the time to do it. There's nothing like a survey, right. 128 00:07:47,560 --> 00:07:50,880 Speaker 1: You can Google form yourself into anything, um and send 129 00:07:50,880 --> 00:07:52,320 Speaker 1: it to a whole bunch of friends. You can get 130 00:07:52,320 --> 00:07:54,800 Speaker 1: a ton of information. We could do a survey for 131 00:07:55,320 --> 00:07:58,800 Speaker 1: the entire Midwest based on our our inboxes and using 132 00:07:58,800 --> 00:08:01,760 Speaker 1: the context that we have and really, you know, really 133 00:08:01,840 --> 00:08:05,200 Speaker 1: form something big. That's how Project Diane Dot started. That's 134 00:08:05,240 --> 00:08:09,240 Speaker 1: like how lots of other things got started. I love that. UM. 135 00:08:09,800 --> 00:08:12,800 Speaker 1: I've written this blog post that I've published LinkedIn several 136 00:08:12,880 --> 00:08:14,800 Speaker 1: years back and it kind of caught fire, put me 137 00:08:14,800 --> 00:08:16,240 Speaker 1: on the radar of a lot of people. And it 138 00:08:16,360 --> 00:08:20,160 Speaker 1: was titled, Hay, Startups, you don't live in Silicon Valley. 139 00:08:20,360 --> 00:08:23,200 Speaker 1: And part of the issue was a lot of at 140 00:08:23,240 --> 00:08:25,520 Speaker 1: least at that time, a lot of the insight and 141 00:08:26,320 --> 00:08:28,600 Speaker 1: education on how to build a startup and how to 142 00:08:28,640 --> 00:08:31,280 Speaker 1: get funded was coming out of Silicon Valley. It wasn't 143 00:08:31,280 --> 00:08:34,560 Speaker 1: coming from other places, right, And what I learned was 144 00:08:34,800 --> 00:08:38,520 Speaker 1: a lot of that stuff doesn't work outside of Silicon Valley, right. 145 00:08:38,520 --> 00:08:42,400 Speaker 1: And so what is the difference in your mind, from 146 00:08:42,400 --> 00:08:45,120 Speaker 1: a couple of different angles, from you know, being an entrepreneur, 147 00:08:45,200 --> 00:08:47,840 Speaker 1: which you are an entrepreneur, from being an investor today 148 00:08:48,200 --> 00:08:51,439 Speaker 1: to somebody who's just worked in the machine to make 149 00:08:51,480 --> 00:08:56,840 Speaker 1: things happen. What's the difference that people probably too often 150 00:08:56,960 --> 00:09:01,240 Speaker 1: overlook about, um the insight they get from the Silicon 151 00:09:01,360 --> 00:09:06,720 Speaker 1: Valley or traditional known notable tech hubs, tech ecosystems versus 152 00:09:06,960 --> 00:09:10,360 Speaker 1: nascent ones ones that are growing, you know, so and 153 00:09:10,679 --> 00:09:15,040 Speaker 1: be having fund. I'm finding other investors to invest in me. 154 00:09:15,520 --> 00:09:20,880 Speaker 1: And it's a it's a huge interview process. So, um, 155 00:09:20,920 --> 00:09:22,760 Speaker 1: if somebody has given you a million dollars, let me 156 00:09:22,760 --> 00:09:26,240 Speaker 1: tell you, the interview process is like rough. There's a 157 00:09:26,320 --> 00:09:30,680 Speaker 1: background check, criminal and and personal and they're they're checking 158 00:09:30,760 --> 00:09:35,080 Speaker 1: every single thing. But through these conversations, many of our 159 00:09:35,200 --> 00:09:38,679 Speaker 1: our LPs are limited partners and the fund our investors 160 00:09:38,760 --> 00:09:42,280 Speaker 1: from the coasts, and they ask us lots of questions 161 00:09:42,320 --> 00:09:44,480 Speaker 1: about like, so, how much money are you going to 162 00:09:44,559 --> 00:09:47,559 Speaker 1: put in this company, and what percentage of ownership are 163 00:09:47,559 --> 00:09:52,080 Speaker 1: you going to get? And and we're explaining to them 164 00:09:52,080 --> 00:09:57,160 Speaker 1: Midwest valuations, and we're explaining to them how much money 165 00:09:57,200 --> 00:09:59,920 Speaker 1: I have to put in to get a meaningful amount 166 00:09:59,920 --> 00:10:03,960 Speaker 1: of ownership percentage. And you know, at first we were 167 00:10:04,000 --> 00:10:05,880 Speaker 1: letting them know, Okay, we're putting in this much, and 168 00:10:05,920 --> 00:10:08,960 Speaker 1: they're like, there's no way you can get ownership percentage 169 00:10:09,000 --> 00:10:13,160 Speaker 1: with that amount of money. And I'm like, folks did 170 00:10:13,200 --> 00:10:17,200 Speaker 1: West valuations, Like I don't know what you guys are 171 00:10:17,240 --> 00:10:20,800 Speaker 1: out there doing, but like we don't start allion dollars. 172 00:10:20,920 --> 00:10:24,000 Speaker 1: We started like five to eight, so like I'm right 173 00:10:24,040 --> 00:10:27,280 Speaker 1: there doing something way different. So they can't even wrap 174 00:10:27,320 --> 00:10:30,400 Speaker 1: their minds around the fact that like a company that's 175 00:10:30,480 --> 00:10:34,360 Speaker 1: generating revenue right in market, has been in the market 176 00:10:34,400 --> 00:10:36,680 Speaker 1: for a few years, is making a few million dollars 177 00:10:36,679 --> 00:10:40,600 Speaker 1: a year, like still has like an eight million dollar valuation. 178 00:10:40,679 --> 00:10:43,880 Speaker 1: They just can't They just don't get it. So they 179 00:10:43,960 --> 00:10:46,800 Speaker 1: struggle in that aspect. They struggle with the fact that, 180 00:10:46,840 --> 00:10:51,640 Speaker 1: like Midwesterners love to help each other, Like I could 181 00:10:51,720 --> 00:10:57,080 Speaker 1: text some people pretty high up at lots of corporations 182 00:10:57,120 --> 00:11:01,480 Speaker 1: that are like Fortune one hundreds, and that's just because 183 00:11:01,559 --> 00:11:03,960 Speaker 1: all of those people are like just really down to 184 00:11:04,080 --> 00:11:06,959 Speaker 1: like get it moving for their city or their state, 185 00:11:07,679 --> 00:11:10,080 Speaker 1: And so I think that that's what they overlook. They 186 00:11:10,200 --> 00:11:13,920 Speaker 1: overlook the fact that we're all connected and that we 187 00:11:14,200 --> 00:11:19,720 Speaker 1: genuinely have care for what we do. Um. Yeah, there's 188 00:11:19,760 --> 00:11:22,800 Speaker 1: there's all sorts of differences between but like and they 189 00:11:22,840 --> 00:11:26,839 Speaker 1: also fight for deals. Do we fight for deals from 190 00:11:26,840 --> 00:11:30,000 Speaker 1: the West. There just aren't enough funds right for us 191 00:11:30,040 --> 00:11:32,480 Speaker 1: to fight against each other. So there's just there's just 192 00:11:32,520 --> 00:11:35,800 Speaker 1: a difference in the way they do things out there. 193 00:11:36,880 --> 00:11:41,160 Speaker 1: I'm glad you you talked about the stage at which 194 00:11:41,200 --> 00:11:45,319 Speaker 1: you come in because I get interested in I remember 195 00:11:45,400 --> 00:11:47,800 Speaker 1: listening to you do an interview where you talked about 196 00:11:47,800 --> 00:11:49,959 Speaker 1: you know, you've had you have very little room for error, 197 00:11:50,000 --> 00:11:53,760 Speaker 1: and that's why you don't invest super early on UM 198 00:11:53,960 --> 00:11:57,719 Speaker 1: talked about that here, like why can't a fund by 199 00:11:57,760 --> 00:12:02,079 Speaker 1: a black woman the biggest one in the period first fund? 200 00:12:02,480 --> 00:12:06,000 Speaker 1: Why can't you write checks super early in the company? 201 00:12:06,040 --> 00:12:09,520 Speaker 1: Be just because you believe, Yeah, I have to show 202 00:12:09,760 --> 00:12:15,880 Speaker 1: my investors the path to exit. So if it's hard 203 00:12:16,000 --> 00:12:21,720 Speaker 1: to show the path to exit on a dream, right, UM. 204 00:12:22,120 --> 00:12:27,200 Speaker 1: Do I have talked to some amazing founders. Um and 205 00:12:27,400 --> 00:12:34,320 Speaker 1: before delaying Parnell like, okay, what he is now with 206 00:12:34,440 --> 00:12:38,520 Speaker 1: play versus Like I saw that at the dream stage, right, 207 00:12:39,160 --> 00:12:42,640 Speaker 1: and you know, as an investment committee, now I wanted 208 00:12:42,679 --> 00:12:45,320 Speaker 1: to invest, right, they would not get me wrong, but 209 00:12:45,400 --> 00:12:47,920 Speaker 1: like the entire committee was not interested, right because it 210 00:12:48,000 --> 00:12:53,080 Speaker 1: was just too early. Unfortunately, I have to return at 211 00:12:53,200 --> 00:12:56,440 Speaker 1: least half of the fund on every single investment. So 212 00:12:56,679 --> 00:12:58,640 Speaker 1: let me break this down for you. So it's a 213 00:12:58,679 --> 00:13:01,839 Speaker 1: fifty million dollar fund. Half the fund is twenty five 214 00:13:01,920 --> 00:13:05,960 Speaker 1: million dollars. If I own ten percent of a company. 215 00:13:06,000 --> 00:13:09,200 Speaker 1: This is just like rough Man, I owned ten percent 216 00:13:09,200 --> 00:13:12,160 Speaker 1: of the company and it exists for two fifty million dollars. 217 00:13:13,520 --> 00:13:16,920 Speaker 1: I've returned half of the fund. It's really difficult to 218 00:13:16,960 --> 00:13:20,840 Speaker 1: do that on an idea. How do I quantify that 219 00:13:21,200 --> 00:13:24,760 Speaker 1: on this paperwork that's going to go to LPs that 220 00:13:24,800 --> 00:13:28,160 Speaker 1: have put in a million dollars or more. So that's 221 00:13:28,240 --> 00:13:32,560 Speaker 1: why also I like you, like we've talked like I 222 00:13:32,600 --> 00:13:37,760 Speaker 1: have the weight of the world on my shoulders, and 223 00:13:37,800 --> 00:13:42,120 Speaker 1: I feel that it is my responsibility to deliver a win. 224 00:13:43,640 --> 00:13:47,800 Speaker 1: I really do feel that way. So, UM, we are 225 00:13:47,800 --> 00:13:50,360 Speaker 1: trying to get the best mix of black and brown 226 00:13:50,400 --> 00:13:54,720 Speaker 1: founders and maybe fun too, we can invest earlier. Maybe 227 00:13:54,840 --> 00:13:57,880 Speaker 1: the folks that come to our pipeline are getting investments 228 00:13:57,920 --> 00:14:00,600 Speaker 1: from Angel investors in our network, and we will work 229 00:14:00,679 --> 00:14:03,920 Speaker 1: really hard for that. Um. But just in this fun one, 230 00:14:04,120 --> 00:14:08,880 Speaker 1: I could not and I hate that. Sometimes what what 231 00:14:09,040 --> 00:14:14,079 Speaker 1: has to happen so that or perhaps there's got to 232 00:14:14,120 --> 00:14:16,360 Speaker 1: be more canvases, But what has to happen so that 233 00:14:16,760 --> 00:14:22,640 Speaker 1: canvases can make early her bets? We just we need um, 234 00:14:22,720 --> 00:14:24,640 Speaker 1: we need more fun managers no matter what. There are 235 00:14:24,640 --> 00:14:29,600 Speaker 1: folks making earlier bets UM. So precursor ventures, they make 236 00:14:29,600 --> 00:14:33,400 Speaker 1: earlier bets right now. They invest in all founders. It's 237 00:14:33,480 --> 00:14:37,480 Speaker 1: not just um, women and people of color, um, but 238 00:14:37,600 --> 00:14:41,280 Speaker 1: they make earlier bets. UM. I believe Richard Kirby over 239 00:14:41,320 --> 00:14:44,760 Speaker 1: an equal makes earlier bets UM. And so I know 240 00:14:44,840 --> 00:14:49,800 Speaker 1: for sure Monique Water makes some earlier bets. UM. But again, um, 241 00:14:50,120 --> 00:14:53,120 Speaker 1: they're I think they're just has to be more of us. 242 00:14:53,600 --> 00:14:58,000 Speaker 1: I think for many years the Angel community, Angel investment 243 00:14:58,040 --> 00:15:02,840 Speaker 1: community got burned, right, not by black founders in particular, 244 00:15:02,880 --> 00:15:05,920 Speaker 1: but kind of like all founders, UM. And I think 245 00:15:05,920 --> 00:15:08,440 Speaker 1: we just have to get a resurgence of new people 246 00:15:08,520 --> 00:15:14,640 Speaker 1: angel investing and being educated. Um, for earlier bed best 247 00:15:14,760 --> 00:15:18,080 Speaker 1: to take place, but it's been it's been difficult to 248 00:15:18,120 --> 00:15:22,400 Speaker 1: do kind of precede precede venture funding. Um, it's a 249 00:15:22,440 --> 00:15:29,320 Speaker 1: difficult space to fund kind of no matter what Canada said, 250 00:15:29,320 --> 00:15:31,760 Speaker 1: I was to raise twenty million dollars for a first fund, 251 00:15:31,760 --> 00:15:35,280 Speaker 1: a lightship. In the end, she became the first black 252 00:15:35,280 --> 00:15:37,160 Speaker 1: woman to raise as much as she did at her 253 00:15:37,200 --> 00:15:43,000 Speaker 1: first go, clearing fifty million dollars during a global pandemic. 254 00:15:44,080 --> 00:15:48,920 Speaker 1: So how does that kind of overshot happen? Canadas speak soon? Okay, 255 00:15:48,960 --> 00:15:52,200 Speaker 1: So like I'll take it way way back. So, um, 256 00:15:52,200 --> 00:15:56,680 Speaker 1: my co founders of Hillman, we originally were like, we're 257 00:15:56,680 --> 00:15:59,480 Speaker 1: gonna raise just like a million dollar micro fund. It's 258 00:15:59,480 --> 00:16:02,200 Speaker 1: gonna in us in these filmen companies. Cool bit. We 259 00:16:02,640 --> 00:16:07,320 Speaker 1: raised it great. And so then when Brian and I 260 00:16:07,400 --> 00:16:10,880 Speaker 1: decided to raise this fund, you know, originally we're sitting 261 00:16:10,880 --> 00:16:13,600 Speaker 1: down with our mentors and we're like, okay, ten million 262 00:16:13,600 --> 00:16:17,720 Speaker 1: dollar fund. Our mentors were like, ten million dollar fund. 263 00:16:17,760 --> 00:16:19,600 Speaker 1: Do you know how that works? Let's talk about the 264 00:16:19,640 --> 00:16:23,440 Speaker 1: logistics and like management fee on ten million dollars and 265 00:16:23,480 --> 00:16:25,520 Speaker 1: how you're that's just not gonna work. They're like twenty 266 00:16:25,560 --> 00:16:27,600 Speaker 1: million dollars. I look at Brian and I'm like, twenty 267 00:16:27,600 --> 00:16:32,920 Speaker 1: million dollars. That's not gonna happen, right like. And then 268 00:16:33,040 --> 00:16:37,280 Speaker 1: we started socializing the idea and in February we got 269 00:16:37,320 --> 00:16:40,000 Speaker 1: our first investment, and so I'm like, oh, this is 270 00:16:40,000 --> 00:16:42,280 Speaker 1: gonna go down. And then by March we had raised 271 00:16:42,320 --> 00:16:45,960 Speaker 1: fifteen of the twenty million dollars and so I'm like, okay, 272 00:16:46,160 --> 00:16:50,040 Speaker 1: this is good. And then Covid hit um and I thought, 273 00:16:50,040 --> 00:16:52,240 Speaker 1: of course this thing is gonna this is gonna shut 274 00:16:52,280 --> 00:16:54,720 Speaker 1: all the way down. We won't raise it all. Fifteen 275 00:16:54,760 --> 00:17:00,000 Speaker 1: is good, pat on the back, fantastic And then um 276 00:17:00,000 --> 00:17:03,560 Speaker 1: gentlemen from Cincinnati who was working for a group called 277 00:17:03,600 --> 00:17:07,120 Speaker 1: Second News or to M Capital, reached out to us 278 00:17:07,640 --> 00:17:11,840 Speaker 1: and said, hey, I'm thinking about doing X y Z. 279 00:17:12,040 --> 00:17:13,720 Speaker 1: Do you have time to talk? And we're like sure, 280 00:17:13,800 --> 00:17:16,200 Speaker 1: And we talked to him and he's like, hey, I 281 00:17:16,240 --> 00:17:18,720 Speaker 1: think my boss would really like what you guys are 282 00:17:18,840 --> 00:17:21,240 Speaker 1: up to. Would you like to talk to him? So 283 00:17:21,280 --> 00:17:24,360 Speaker 1: we talked to this guy named Todd from to M Capital, 284 00:17:25,160 --> 00:17:29,080 Speaker 1: and over like three meetings, they decided to invest twenty 285 00:17:29,160 --> 00:17:34,520 Speaker 1: million dollars and we were like, we're at thirty five. 286 00:17:35,800 --> 00:17:41,080 Speaker 1: What just happened here? Um, And so we could see 287 00:17:41,160 --> 00:17:45,280 Speaker 1: that path to fifty million was our hardcap for the fund, 288 00:17:45,920 --> 00:17:48,119 Speaker 1: and so we saw a path We're like, maybe we 289 00:17:48,160 --> 00:17:51,080 Speaker 1: can't raise fifteen more, but man, it's COVID. And then 290 00:17:51,440 --> 00:17:58,200 Speaker 1: George Floyd was murdered and suddenly some foundations, some other 291 00:17:58,240 --> 00:18:03,320 Speaker 1: corporations like started doing some soul searching and realized that 292 00:18:03,920 --> 00:18:07,400 Speaker 1: what they have been doing to date just wasn't enough 293 00:18:08,119 --> 00:18:11,240 Speaker 1: and they should have done it a long time ago. Right, 294 00:18:11,240 --> 00:18:15,320 Speaker 1: those are the conversations we've been having, and uh, you know, 295 00:18:16,119 --> 00:18:20,600 Speaker 1: we're it about. I mean, our cap is fifty million dollars, 296 00:18:20,600 --> 00:18:24,439 Speaker 1: but we have a lot, a lot of interest. We 297 00:18:24,520 --> 00:18:30,080 Speaker 1: have more double all that and interest. So UM, it's 298 00:18:30,520 --> 00:18:33,159 Speaker 1: now it's just going through and figuring out what's the 299 00:18:33,240 --> 00:18:37,520 Speaker 1: right blend of people. It's a very interesting place to be. 300 00:18:37,880 --> 00:18:41,880 Speaker 1: First time fund managers don't get this opportunity. Black fund 301 00:18:41,920 --> 00:18:44,960 Speaker 1: managers don't get this opportunity. And so for us, we're 302 00:18:45,000 --> 00:18:48,240 Speaker 1: trying to find the right blend of investors that are 303 00:18:48,280 --> 00:18:50,800 Speaker 1: here for the right reasons and that will stick with 304 00:18:50,880 --> 00:18:55,399 Speaker 1: us through fund to fund three and beyond. UM we 305 00:18:55,480 --> 00:18:59,800 Speaker 1: are it wasn't all luck mayn The timing of this 306 00:19:00,280 --> 00:19:03,520 Speaker 1: just been incredible. Yeah, it's I'm glad you said that, 307 00:19:03,560 --> 00:19:06,080 Speaker 1: because I've had this conversation with a couple of folks 308 00:19:06,119 --> 00:19:10,119 Speaker 1: and people who are working on recognizing the moment that 309 00:19:10,200 --> 00:19:13,280 Speaker 1: we're in, that we're still in with COVID and George 310 00:19:13,280 --> 00:19:15,880 Speaker 1: Floyd and the social uprisings and people starting to wake 311 00:19:15,960 --> 00:19:17,920 Speaker 1: up to your point of like, we haven't done enough. 312 00:19:18,600 --> 00:19:22,439 Speaker 1: And I always think about this Roman Manual quote from 313 00:19:22,480 --> 00:19:23,879 Speaker 1: back from two thousand and eight. I don't even know 314 00:19:23,880 --> 00:19:25,680 Speaker 1: if he's the first person to say it, but he said, 315 00:19:25,680 --> 00:19:28,080 Speaker 1: you never let a great crisis go to waste. It's 316 00:19:28,119 --> 00:19:31,520 Speaker 1: an opportunity to do things you otherwise couldn't have done. Right, 317 00:19:32,040 --> 00:19:36,040 Speaker 1: And you just talked about in this moment when COVID hit, 318 00:19:36,840 --> 00:19:40,320 Speaker 1: I'm sorry, when George Floyd hit specifically, people woke up 319 00:19:40,359 --> 00:19:43,160 Speaker 1: and say, hey, we need to do more, and that 320 00:19:43,800 --> 00:19:48,680 Speaker 1: obviously lended itself to getting you guys some checks. Um, 321 00:19:48,760 --> 00:19:55,000 Speaker 1: what do you say two entrepreneurs would be investors about 322 00:19:55,040 --> 00:19:58,919 Speaker 1: this moment um and and how to take advantage of 323 00:19:59,000 --> 00:20:02,399 Speaker 1: this moment when people are saying, hey, you know, maybe 324 00:20:02,480 --> 00:20:05,119 Speaker 1: we should be doing more. How do you take advantage 325 00:20:05,160 --> 00:20:07,359 Speaker 1: of right now? Well, you still have to recognize that 326 00:20:07,400 --> 00:20:13,200 Speaker 1: all money is not good money, right, um, And there 327 00:20:13,240 --> 00:20:19,080 Speaker 1: are folks that are being predatory in this moment, So 328 00:20:19,359 --> 00:20:21,600 Speaker 1: make sure that you still are looking at your deal 329 00:20:22,040 --> 00:20:24,880 Speaker 1: and making sure it's a good deal. Right. I've seen 330 00:20:24,880 --> 00:20:28,400 Speaker 1: people try to put a hundred thousand dollar check into 331 00:20:28,440 --> 00:20:31,719 Speaker 1: a company that's doing really well for seven percent equity. Well, 332 00:20:31,760 --> 00:20:36,120 Speaker 1: I don't know what that's about, Like, I just don't 333 00:20:36,160 --> 00:20:40,520 Speaker 1: understand what that's So we're we are still seeing that. Um. 334 00:20:41,560 --> 00:20:45,160 Speaker 1: But but use the moment to get ahead because it's 335 00:20:45,200 --> 00:20:48,840 Speaker 1: going to end. This window will close. They've forgotten about 336 00:20:48,880 --> 00:20:51,800 Speaker 1: us before, they will forget about us again. So now 337 00:20:51,880 --> 00:20:54,560 Speaker 1: is the time to structure everything that you need to 338 00:20:54,560 --> 00:20:57,560 Speaker 1: to get it done. Um. I mean, I don't know 339 00:20:57,600 --> 00:20:59,240 Speaker 1: if I have much more to say about that than 340 00:20:59,320 --> 00:21:03,600 Speaker 1: that it's some it's a unique moment, it is. It 341 00:21:03,680 --> 00:21:07,639 Speaker 1: is an incredibly unique moment, and but it's a moment 342 00:21:07,680 --> 00:21:13,040 Speaker 1: that's deserved, right. We deserved this stuff a long time ago. 343 00:21:13,920 --> 00:21:18,080 Speaker 1: This isn't charity, right when people are investing. I think 344 00:21:18,080 --> 00:21:20,960 Speaker 1: it's our responsibility though, to remind people that investment in 345 00:21:21,000 --> 00:21:25,160 Speaker 1: this is not charity. This isn't philanthropic. We are at 346 00:21:25,160 --> 00:21:28,960 Speaker 1: our fund looking for market rate returns. All of the 347 00:21:28,960 --> 00:21:31,719 Speaker 1: founders that surround us, they are they aren't doing it 348 00:21:31,760 --> 00:21:35,720 Speaker 1: for social impact. I'm not a social impact investor. UM. 349 00:21:35,760 --> 00:21:38,199 Speaker 1: There are people making an impact on the world, but 350 00:21:38,280 --> 00:21:42,639 Speaker 1: we're also like generating revenue and we're looking to build 351 00:21:42,640 --> 00:21:45,440 Speaker 1: generational wealth. So now is the time to do it. 352 00:21:45,880 --> 00:21:48,600 Speaker 1: And I think it's everyone's responsibility to make sure that 353 00:21:48,640 --> 00:21:52,160 Speaker 1: these good stories are being told UM, and that we're 354 00:21:52,240 --> 00:21:56,800 Speaker 1: highlighting great founders doing great things, not necessarily just the 355 00:21:57,680 --> 00:22:03,040 Speaker 1: I raised around, right, because raising rounds aren't milestones. Generating 356 00:22:03,080 --> 00:22:06,600 Speaker 1: revenue is, right, So how do we highlight the people 357 00:22:06,760 --> 00:22:10,520 Speaker 1: do actually doing the work. How are we putting up 358 00:22:10,520 --> 00:22:16,320 Speaker 1: those people who really need an investment? UM. That's that's 359 00:22:16,320 --> 00:22:18,520 Speaker 1: how we have to capitalize at this moment. I want 360 00:22:18,520 --> 00:22:20,840 Speaker 1: to talk about the education you guys do UM in 361 00:22:20,840 --> 00:22:25,119 Speaker 1: a couple of different ways, how consequential. First was the 362 00:22:25,200 --> 00:22:27,920 Speaker 1: new ME acquisition, right, and I were just talking about 363 00:22:27,920 --> 00:22:34,320 Speaker 1: this this this morning. UM to be completely candid, and 364 00:22:34,640 --> 00:22:38,919 Speaker 1: I'm fine with this, Like it's not easy, right, Like 365 00:22:39,000 --> 00:22:45,119 Speaker 1: running a nonprofit and UM grants come and grants go, 366 00:22:45,440 --> 00:22:49,520 Speaker 1: and they are not always smooth, and for us, there 367 00:22:49,560 --> 00:22:52,640 Speaker 1: were two reasons for doing the New Me acquisition. One, 368 00:22:52,760 --> 00:22:56,680 Speaker 1: it generated revenue to smooth out those bombs, because there 369 00:22:56,680 --> 00:23:03,760 Speaker 1: were times when I couldn't make payroll, right because we're 370 00:23:03,800 --> 00:23:08,000 Speaker 1: a nonprofit right and sometimes people people say they're gonna 371 00:23:08,000 --> 00:23:09,879 Speaker 1: give you a hundred thousand dollar grand and suddenly it's 372 00:23:09,880 --> 00:23:12,240 Speaker 1: a fifty thousand dollar grand, and like, where am I 373 00:23:12,280 --> 00:23:15,160 Speaker 1: supposed to come up with that? Funny folks like and 374 00:23:15,200 --> 00:23:19,320 Speaker 1: so there were plenty of times where like I deferred 375 00:23:19,320 --> 00:23:23,159 Speaker 1: my salary for my employees. So one, it was a 376 00:23:23,200 --> 00:23:27,480 Speaker 1: revenue generator so that we would not still be We 377 00:23:27,520 --> 00:23:30,800 Speaker 1: would have had a very difficult time being around without 378 00:23:31,320 --> 00:23:35,080 Speaker 1: a way to make revenue. That's number one. But to 379 00:23:35,480 --> 00:23:42,040 Speaker 1: it gave us access to a fantastic brand and people love, love, love, 380 00:23:42,119 --> 00:23:46,119 Speaker 1: still love Angela Betton Right and the program that she 381 00:23:46,240 --> 00:23:50,400 Speaker 1: created back in two thousand twelve Knew Me Class two. 382 00:23:51,240 --> 00:23:55,119 Speaker 1: Brian Bracken went through that class right, Freddie from Pigeon 383 00:23:55,160 --> 00:23:59,800 Speaker 1: Ley went through it too. Marlon avery Are, director of Technology, 384 00:24:00,160 --> 00:24:03,399 Speaker 1: went through New Me like New Me made a huge 385 00:24:03,520 --> 00:24:09,119 Speaker 1: difference for Black tech Um and continues to. And three 386 00:24:09,160 --> 00:24:13,040 Speaker 1: of our first seven investments were new ME companies that 387 00:24:13,240 --> 00:24:17,600 Speaker 1: time that we get to spend with companies physically together 388 00:24:18,280 --> 00:24:22,680 Speaker 1: working through their business issues. Like it's really helped us 389 00:24:22,720 --> 00:24:26,399 Speaker 1: to change our model on the accelerator side. UM, but 390 00:24:26,440 --> 00:24:29,479 Speaker 1: it's definitely a way to fight great companies to invest 391 00:24:29,480 --> 00:24:31,560 Speaker 1: in as well. So I don't know, knew ME was 392 00:24:31,640 --> 00:24:35,840 Speaker 1: a really like big turning point for us to talk 393 00:24:35,880 --> 00:24:40,720 Speaker 1: about what the program looks like now for entrepreneurs. So yeah, 394 00:24:40,880 --> 00:24:43,879 Speaker 1: so one week boot camp UM. While it used to 395 00:24:43,880 --> 00:24:46,280 Speaker 1: all be in a house, now will be in UM 396 00:24:46,760 --> 00:24:50,080 Speaker 1: nice safe, clean hotel space and in conference rooms. Well, 397 00:24:50,119 --> 00:24:52,000 Speaker 1: so founders at the end of the night can still 398 00:24:52,000 --> 00:24:55,240 Speaker 1: go back to their spaces. I used to cook breakfast, lunch, 399 00:24:55,320 --> 00:24:58,040 Speaker 1: and dinner with a team of people, So now it's 400 00:24:58,119 --> 00:25:05,040 Speaker 1: a catering using mass practices for sanitizing and of course 401 00:25:05,160 --> 00:25:07,440 Speaker 1: you know I playing the kitchen like a black auntie. 402 00:25:07,480 --> 00:25:12,600 Speaker 1: So um, you know, no worries there, but catering does help. 403 00:25:12,760 --> 00:25:15,480 Speaker 1: And so that's how we'll run it, UM And we'll 404 00:25:15,520 --> 00:25:21,040 Speaker 1: have NEWVIE programs in one in Cincinnati, Detroit to Ledo, 405 00:25:21,160 --> 00:25:27,560 Speaker 1: Cleveland and Tulsa, Oklahoma. Why the why those communities, UM, 406 00:25:27,640 --> 00:25:31,640 Speaker 1: what's what's happening in those communities. That's well. UM, there's 407 00:25:31,640 --> 00:25:34,480 Speaker 1: a kind of a key inflection point in Tulsa, UM 408 00:25:34,800 --> 00:25:41,040 Speaker 1: with the Tulsa Race massacre anniversary comes up in June 409 00:25:41,040 --> 00:25:44,919 Speaker 1: of UM, and so that community has asked us to 410 00:25:44,960 --> 00:25:49,600 Speaker 1: come in and figure out our little corner of helping 411 00:25:49,680 --> 00:25:52,680 Speaker 1: to rebuild a portion of Black Wall Street. Right, there's 412 00:25:52,680 --> 00:25:55,320 Speaker 1: a lot of work that needs to be done UM 413 00:25:55,359 --> 00:25:58,040 Speaker 1: in meaningful ways. So UM a group they're called the 414 00:25:58,040 --> 00:26:02,720 Speaker 1: George Kaiser Family Foundation UM gave us a pretty significant 415 00:26:02,760 --> 00:26:06,120 Speaker 1: grant to do work in Tulsa and UM that same 416 00:26:06,200 --> 00:26:09,760 Speaker 1: organization actually made a sizable investment into the fund UM. 417 00:26:09,880 --> 00:26:13,480 Speaker 1: So they've they've invited us there in Detroit UM and 418 00:26:13,560 --> 00:26:17,159 Speaker 1: actually in Michigan so Delta Dental of Michigan, Ohio and 419 00:26:17,200 --> 00:26:20,720 Speaker 1: Indiana UM and actually this press release came out today, 420 00:26:21,280 --> 00:26:25,119 Speaker 1: UM made a one point eight million dollar investment UM 421 00:26:25,200 --> 00:26:29,000 Speaker 1: in Lightship and in Hillman UH and New me for 422 00:26:29,080 --> 00:26:32,359 Speaker 1: us to offer programming in Detroit, Cleveland and Toledo. So 423 00:26:32,640 --> 00:26:34,920 Speaker 1: UM we'll also do some work in the Indiana area, 424 00:26:35,000 --> 00:26:39,040 Speaker 1: but those dates haven't been secured yet. UM. So as 425 00:26:39,080 --> 00:26:41,800 Speaker 1: we kind of go into communities, we do say yes 426 00:26:41,960 --> 00:26:44,960 Speaker 1: it is important to provide programming. But we as a people, 427 00:26:45,160 --> 00:26:48,160 Speaker 1: as we say, over and over, over mentored and under capitalized. 428 00:26:48,560 --> 00:26:51,439 Speaker 1: So you have to invest in both. Um. You have 429 00:26:51,600 --> 00:26:54,159 Speaker 1: to train people, but you also need to invest in 430 00:26:54,200 --> 00:26:57,320 Speaker 1: their companies so they can grow it in your community. UM. 431 00:26:57,440 --> 00:26:59,720 Speaker 1: So we look at it from two lenses. As a 432 00:26:59,760 --> 00:27:03,560 Speaker 1: fun um, you know, it's it's building great companies adding 433 00:27:03,600 --> 00:27:07,480 Speaker 1: to the tax base. UM. But from a nonprofit side, 434 00:27:07,600 --> 00:27:12,160 Speaker 1: we are an economic development engine. You mentioned this when 435 00:27:12,160 --> 00:27:14,960 Speaker 1: I asked you about, you know, making impact at the 436 00:27:15,000 --> 00:27:17,480 Speaker 1: state local levels, UM, that you kind of you know, 437 00:27:17,520 --> 00:27:19,480 Speaker 1: you didn't know. He said, you just started doing stuff 438 00:27:19,480 --> 00:27:21,520 Speaker 1: and it just kind of worked. You talked, you talked 439 00:27:21,520 --> 00:27:25,399 Speaker 1: yourself on the flight um investing. How do how do 440 00:27:25,480 --> 00:27:27,960 Speaker 1: you learn to invest? So what happens in communities like 441 00:27:27,960 --> 00:27:30,360 Speaker 1: where we come from. You know, you get people who 442 00:27:30,440 --> 00:27:33,040 Speaker 1: ride at twenty five a check because they got money, 443 00:27:33,160 --> 00:27:35,160 Speaker 1: you know, into a startup, and that sort of goes nowhere. 444 00:27:35,200 --> 00:27:38,320 Speaker 1: Then they stopped investing, right because you know, Okay, this 445 00:27:38,400 --> 00:27:39,960 Speaker 1: is not what I thought. This is not the next school. 446 00:27:39,960 --> 00:27:41,480 Speaker 1: I thought it was going to be the next googleps. Right, 447 00:27:41,960 --> 00:27:45,200 Speaker 1: And so how do you get educated to do this 448 00:27:45,480 --> 00:27:48,320 Speaker 1: so that you don't fall into that trap of hey, 449 00:27:48,359 --> 00:27:53,520 Speaker 1: one didn't work and I'm tapped out. Yeah. So um, 450 00:27:54,280 --> 00:27:58,959 Speaker 1: really it's been a long game. UM. So this is 451 00:27:59,000 --> 00:28:02,160 Speaker 1: not my background. Have a degree in economics and statistics. 452 00:28:02,200 --> 00:28:05,680 Speaker 1: So we were Cincinnati. UM. I was incredibly luved that 453 00:28:05,800 --> 00:28:08,320 Speaker 1: two families took me under their wing and provided a 454 00:28:08,320 --> 00:28:11,919 Speaker 1: scholarship for me, and UM, you know, that was the 455 00:28:11,960 --> 00:28:15,120 Speaker 1: base of my knowledge for many, many years. Six years 456 00:28:15,119 --> 00:28:18,320 Speaker 1: ago I got into tech, had a very small tech 457 00:28:18,359 --> 00:28:21,399 Speaker 1: company here and since then raised a few hundred thousand dollars, 458 00:28:21,480 --> 00:28:24,439 Speaker 1: ran out of a few hundred thousand dollars. And I 459 00:28:24,480 --> 00:28:27,400 Speaker 1: think it was in while I was running that company 460 00:28:27,400 --> 00:28:29,560 Speaker 1: that I built some of the strongest relationships that I 461 00:28:29,560 --> 00:28:33,120 Speaker 1: have today. So I'll mention two people and these are 462 00:28:33,280 --> 00:28:38,800 Speaker 1: both white males. UM Mike Venerable, UH, the CEO of 463 00:28:38,880 --> 00:28:42,480 Speaker 1: since tech UM, which is a venture capital firm that 464 00:28:42,560 --> 00:28:46,000 Speaker 1: is supported by the state of Ohio. UM. I pitched 465 00:28:46,080 --> 00:28:49,960 Speaker 1: him my company Hello parents years ago and he was like, kid, 466 00:28:50,040 --> 00:28:54,840 Speaker 1: come back to me when you've got some conductor, and 467 00:28:56,520 --> 00:28:58,800 Speaker 1: I did. At some point I went back to him 468 00:28:58,800 --> 00:29:00,760 Speaker 1: and said, Hey, I got this thing called accelerator. He 469 00:29:00,840 --> 00:29:03,440 Speaker 1: was like, Okay, I can get after this. And then 470 00:29:03,520 --> 00:29:05,200 Speaker 1: when I said I wanted to do a fund, he 471 00:29:05,280 --> 00:29:08,360 Speaker 1: was the person was like ten million dollar fund, Oh no, no, no, 472 00:29:08,440 --> 00:29:12,640 Speaker 1: twenty million dollar fund. He really helped me structure my thesis. 473 00:29:12,680 --> 00:29:16,520 Speaker 1: So had I taken his no at no I don't 474 00:29:16,560 --> 00:29:19,520 Speaker 1: like you or no you're not good enough UM and 475 00:29:19,600 --> 00:29:24,120 Speaker 1: taken that in UM as a negative, I wouldn't be 476 00:29:24,120 --> 00:29:29,360 Speaker 1: where I am today. So you know, he really that relationship. 477 00:29:29,520 --> 00:29:33,560 Speaker 1: He taught me a lot about venture UM. And and 478 00:29:33,600 --> 00:29:36,320 Speaker 1: as I was building Hello Parent, which was the little 479 00:29:36,360 --> 00:29:42,160 Speaker 1: tiny company UM, David Woolbrand from a law firm called 480 00:29:42,200 --> 00:29:46,640 Speaker 1: Thompson him really walked me through really understanding my term 481 00:29:46,680 --> 00:29:52,840 Speaker 1: sheet vertibal notes safe waterfalls, like really understanding the terms. 482 00:29:53,400 --> 00:29:57,320 Speaker 1: Like it, Matt, It's it's a lot of reading. It's 483 00:29:57,360 --> 00:30:01,920 Speaker 1: a lot of like repetition looking at deals. Like the 484 00:30:02,040 --> 00:30:05,160 Speaker 1: nice thing about having accelerated the last few years is 485 00:30:05,280 --> 00:30:08,720 Speaker 1: we see two thousand companies a year. Now do they fit? 486 00:30:08,960 --> 00:30:13,600 Speaker 1: Are they all great? Absolutely not, But there's a there's 487 00:30:13,760 --> 00:30:16,760 Speaker 1: a grouping that are incredible. So I've gotten a lot 488 00:30:16,840 --> 00:30:19,360 Speaker 1: of reps and we asked a lot of questions. So 489 00:30:19,520 --> 00:30:24,360 Speaker 1: just I've been curious. My business partner Brian has been curious. Um, 490 00:30:24,400 --> 00:30:27,200 Speaker 1: and then we've surrounded ourselves with other great people. So 491 00:30:27,720 --> 00:30:31,280 Speaker 1: our senior associate, Alexis Alston came to us from a 492 00:30:31,360 --> 00:30:35,040 Speaker 1: to maybe three billion dollar fund, right, so she was 493 00:30:35,080 --> 00:30:39,240 Speaker 1: well trained. Um, she went to Brown, she's been she's 494 00:30:39,280 --> 00:30:42,480 Speaker 1: been investing for the last like five years. And it's 495 00:30:42,520 --> 00:30:43,880 Speaker 1: some days I look at her and like, are you 496 00:30:43,920 --> 00:30:46,280 Speaker 1: old enough to have been investing for five years? Right? 497 00:30:46,600 --> 00:30:49,480 Speaker 1: But she's got it. Um. We have a venture partner 498 00:30:49,520 --> 00:30:53,000 Speaker 1: at in Tulsa, Joey Wingderaga, like who helped ups us? Right? 499 00:30:53,000 --> 00:30:55,560 Speaker 1: Because we don't know what we don't know? And our 500 00:30:55,760 --> 00:30:59,160 Speaker 1: LPs are constantly helping and but we know we're emerging 501 00:30:59,200 --> 00:31:02,000 Speaker 1: fund managers. We know we're going to make mistakes, and 502 00:31:02,440 --> 00:31:04,840 Speaker 1: we just ask a lot of questions and I just 503 00:31:06,000 --> 00:31:08,160 Speaker 1: I'm just I am. I'm still learning on the fly. 504 00:31:08,560 --> 00:31:12,960 Speaker 1: But um, you know, one of our LPs like reached 505 00:31:13,000 --> 00:31:15,360 Speaker 1: out last week and they're like, man, these first five 506 00:31:15,400 --> 00:31:18,360 Speaker 1: investments are really good. We're really proud of you, and 507 00:31:19,520 --> 00:31:22,360 Speaker 1: you know you're tracking better than some of your majority 508 00:31:22,440 --> 00:31:27,120 Speaker 1: peers and that actually feels pretty cool. So what do 509 00:31:27,200 --> 00:31:30,080 Speaker 1: you say that those well healed people who just you 510 00:31:30,120 --> 00:31:33,400 Speaker 1: know got great retirements and UM have some money to 511 00:31:33,480 --> 00:31:35,760 Speaker 1: play with and want to get into startup investing. But 512 00:31:36,120 --> 00:31:40,680 Speaker 1: where do they go to get that education? What should 513 00:31:40,720 --> 00:31:44,520 Speaker 1: they do? What should they do? I I'm a huge 514 00:31:44,600 --> 00:31:49,520 Speaker 1: advocate of the Angel Capital Association UM SO A c 515 00:31:49,760 --> 00:31:52,880 Speaker 1: A and I'm not certain when they were founded. UM 516 00:31:53,040 --> 00:31:57,440 Speaker 1: provides fantastic education for Angels. Every year they do a summit. 517 00:31:57,520 --> 00:32:00,240 Speaker 1: I'm certain that this year they'll do it online UM. 518 00:32:00,320 --> 00:32:03,600 Speaker 1: But I've taken people to the A c A UM 519 00:32:03,680 --> 00:32:07,520 Speaker 1: Angel one oh one boot Camp UM and it's a 520 00:32:07,560 --> 00:32:10,080 Speaker 1: great way to learn from other people of how to 521 00:32:10,360 --> 00:32:13,880 Speaker 1: formulate their portfolio and how to read the terms and 522 00:32:13,920 --> 00:32:16,840 Speaker 1: when to invest, how to carve out a certain amount 523 00:32:16,880 --> 00:32:20,520 Speaker 1: of money UM. And so as a group, they have 524 00:32:20,640 --> 00:32:24,120 Speaker 1: chapters all over the country. Now they will be the 525 00:32:24,160 --> 00:32:27,240 Speaker 1: first to admit that diversity has been an issue UM 526 00:32:27,240 --> 00:32:30,360 Speaker 1: within a c A. So there aren't very many people 527 00:32:30,400 --> 00:32:34,479 Speaker 1: that look like us in chapters UM. But it is 528 00:32:34,520 --> 00:32:36,920 Speaker 1: a great way to get in there and learn UM. 529 00:32:36,960 --> 00:32:39,000 Speaker 1: And I know that this year they're just like they 530 00:32:39,040 --> 00:32:41,560 Speaker 1: do it every summit. UM. They bring in entrepreneurs from 531 00:32:41,600 --> 00:32:43,680 Speaker 1: all over the country and they're always looking for great 532 00:32:43,800 --> 00:32:45,960 Speaker 1: black founders but at the same time they're looking for 533 00:32:46,000 --> 00:32:50,040 Speaker 1: other black angel investors. So I believe that education first 534 00:32:50,120 --> 00:32:54,240 Speaker 1: before you write a check. Good. UM, I kind of 535 00:32:54,280 --> 00:32:56,880 Speaker 1: want to end here on there's a quote I found 536 00:32:57,200 --> 00:32:59,960 Speaker 1: from you, um, and you talked about your startup journey. 537 00:33:00,120 --> 00:33:03,320 Speaker 1: Hello parents and um there's a quote says, I started 538 00:33:03,360 --> 00:33:05,719 Speaker 1: a lot of businesses and I enjoyed the process of 539 00:33:05,920 --> 00:33:09,600 Speaker 1: business creation. I've started lots of things. Some were horrible 540 00:33:09,640 --> 00:33:14,240 Speaker 1: failures and some were great. This one is actually probably 541 00:33:14,280 --> 00:33:19,200 Speaker 1: my best one yet. How then, how do you encourage 542 00:33:20,360 --> 00:33:22,920 Speaker 1: Because I'm talking my question is pointed towards the spirit 543 00:33:22,920 --> 00:33:26,600 Speaker 1: of entrepreneurship and ultimately finding the thing that works. How 544 00:33:26,640 --> 00:33:31,400 Speaker 1: do you encourage people to go after just the ideas 545 00:33:31,440 --> 00:33:33,960 Speaker 1: and even if you hit a bunch of ten dead ends, 546 00:33:34,040 --> 00:33:36,640 Speaker 1: you just keep trying things. How do you just, based 547 00:33:36,680 --> 00:33:40,320 Speaker 1: on your trajectory and your journey, encourage people to just keep, 548 00:33:40,480 --> 00:33:46,040 Speaker 1: you know, nipping at that thing until you find your success. Well, 549 00:33:46,080 --> 00:33:48,760 Speaker 1: you have to surround yourself with like really great people. 550 00:33:49,320 --> 00:33:52,600 Speaker 1: You know, family members aren't always going to support you 551 00:33:52,800 --> 00:33:55,760 Speaker 1: in this crazy thing, So surround yourself with a group 552 00:33:55,760 --> 00:33:59,760 Speaker 1: group of people who are going to encourage you. Um. 553 00:33:59,760 --> 00:34:01,760 Speaker 1: And also going to let you know, like when you 554 00:34:01,800 --> 00:34:06,560 Speaker 1: are being an idiot. Um. I think you have to 555 00:34:06,600 --> 00:34:11,400 Speaker 1: start there. And a friend of mine UM said a 556 00:34:11,440 --> 00:34:13,600 Speaker 1: few years ago to me, like you can do anything 557 00:34:13,640 --> 00:34:17,279 Speaker 1: from ten pm to two am, Like try doing the 558 00:34:17,320 --> 00:34:22,640 Speaker 1: work then like spend your time growing that thing after hours. Um, 559 00:34:22,680 --> 00:34:25,600 Speaker 1: still be great at your day job, um, and but 560 00:34:26,120 --> 00:34:29,799 Speaker 1: work on that one thing every night. I don't know, 561 00:34:29,880 --> 00:34:32,520 Speaker 1: this has kind of been being an entrepreneur. I think 562 00:34:32,640 --> 00:34:36,319 Speaker 1: is the best thing like to be human is you know, 563 00:34:36,400 --> 00:34:39,520 Speaker 1: you only have a limited amount of time. Um, and 564 00:34:39,600 --> 00:34:42,960 Speaker 1: so I'm trying to live my best one years. So 565 00:34:43,120 --> 00:34:45,480 Speaker 1: I think if people take that on, like are you 566 00:34:45,560 --> 00:34:48,160 Speaker 1: happy in your day job if you are doing and 567 00:34:48,200 --> 00:34:52,200 Speaker 1: then after hours do something else, that's great. That is 568 00:34:52,239 --> 00:34:56,680 Speaker 1: going to affect and change the world. UM. But yeah, 569 00:34:56,719 --> 00:34:58,960 Speaker 1: there are plenty of people who are happy in making 570 00:34:58,960 --> 00:35:01,640 Speaker 1: a difference in their day out and so maybe entrepreneurship 571 00:35:01,680 --> 00:35:05,280 Speaker 1: isn't their path, um. But if you've got a hankering 572 00:35:05,360 --> 00:35:08,239 Speaker 1: for something, like do it because you only have so 573 00:35:08,360 --> 00:35:27,960 Speaker 1: much time. Black Tech Green Money is a production to 574 00:35:28,000 --> 00:35:30,680 Speaker 1: Black of the Afro Tech on the Black Effect podcast 575 00:35:30,719 --> 00:35:33,239 Speaker 1: network and I Hired Media. Is produced by Morgan du 576 00:35:33,239 --> 00:35:37,319 Speaker 1: Bond and me lucas. Additional production support by Sarah Ergan 577 00:35:37,360 --> 00:35:40,720 Speaker 1: and Rose mc lucas. Special thank you to Michael Davids. 578 00:35:40,719 --> 00:35:43,239 Speaker 1: Something That's just AROUNDO learned about my guests and other 579 00:35:43,239 --> 00:35:46,799 Speaker 1: tech disruptors and innovators at afro tech dot com. Enjoin 580 00:35:46,840 --> 00:35:51,120 Speaker 1: your black tech, green money. Share this with somebody, look 581 00:35:51,160 --> 00:35:53,799 Speaker 1: at your money. Piece of love.