WEBVTT - Study Hall: How to Become a Venture Capital Investor with John Henry 0:00:00.400 --> 0:00:03.120 Coach, the energy out there felt different. What changed for 0:00:03.160 --> 0:00:03.800 the team today? 0:00:03.880 --> 0:00:06.000 It was the new game day scratches from the California 0:00:06.080 --> 0:00:07.080 Lottery players. 0:00:07.120 --> 0:00:07.520 Everything. 0:00:07.840 --> 0:00:09.799 Those games sent the team's energy through the roof. 0:00:09.880 --> 0:00:11.880 Are you saying it was the off field play that 0:00:11.920 --> 0:00:13.000 made the difference on the field. 0:00:13.119 --> 0:00:15.840 Hey, little play makes your day, and today it made 0:00:15.880 --> 0:00:16.279 the game. 0:00:16.760 --> 0:00:19.319 That's all of now, Coach, one more question play the 0:00:19.360 --> 0:00:22.119 new Los Angeles Chargers, San Francisco forty nine ers and 0:00:22.160 --> 0:00:25.440 Los Angeles Rams scratchers from the California Lottery. A little 0:00:25.440 --> 0:00:28.480 play can make your day. Peace made responsibilit must be 0:00:28.480 --> 0:00:30.280 eighteen years or older to purchase late or claim. 0:00:30.240 --> 0:00:30.800 What's going on? 0:00:30.880 --> 0:00:33.960 Earners, Welcome to EYLI University, the number one place for 0:00:34.080 --> 0:00:35.000 business education. 0:00:35.120 --> 0:00:36.640 Shatty Tail will be bringing yes. 0:00:36.720 --> 0:00:40.120 Eyl University already has over one hundred past webinars from 0:00:40.240 --> 0:00:44.960 all areas of business. It includes weekly webinars from industry leaders. 0:00:45.200 --> 0:00:48.720 It includes access to our investment Facebook group, movie club, 0:00:48.920 --> 0:00:52.599 our book club. It also includes access to monthly financial 0:00:52.640 --> 0:00:55.520 planning calls with yours truly. But what has been added 0:00:56.040 --> 0:00:59.200 has access to MG the Mortgage Guy's Home Buyers Blueprint 0:00:59.240 --> 0:01:01.800 over fourteen hours everything you need to know as far 0:01:01.800 --> 0:01:02.880 as the home buying. 0:01:02.640 --> 0:01:03.600 Process is concerned. 0:01:03.840 --> 0:01:06.800 And also what has been added is access to our 0:01:06.880 --> 0:01:10.800 monthly group chat call. So once a month, Me, Troy 0:01:10.840 --> 0:01:12.320 and the whole team is going to let you in 0:01:12.360 --> 0:01:15.240 on our personal plays, our portfolio, what we're doing, and 0:01:15.360 --> 0:01:18.679 more so all of that, we are running for a 0:01:18.720 --> 0:01:23.400 special promo code of seventy percent off for limited time only, 0:01:23.520 --> 0:01:26.720 So had the Eyluniversity dot com right now and take 0:01:26.760 --> 0:01:27.360 advantage you know. 0:01:27.319 --> 0:01:28.800 Not its words, don't wait, don't hesitate it. 0:01:28.800 --> 0:01:30.440 We'll see you on the other side. 0:01:31.680 --> 0:01:36.920 My graduates from my school being false bad drop bag drop, 0:01:37.560 --> 0:01:40.000 Mike drop backdrop b drop. 0:01:50.040 --> 0:01:51.920 All right, so now we're gonna talk about VC. So 0:01:52.080 --> 0:01:54.760 we talked about vcs before. Previously, we had an XNFL 0:01:54.760 --> 0:01:57.240 play shot out to Mike Brown and he's doing equity 0:01:57.280 --> 0:01:59.960 crowdfunding and he went to Duke he used to work 0:02:00.000 --> 0:02:05.960 work in Silicon Valley, so he's Silicon Valley and so yeah, 0:02:06.000 --> 0:02:07.880 he told us about the whole VC process and all that. 0:02:08.040 --> 0:02:10.080 But like I said, one of the good things about 0:02:10.120 --> 0:02:11.840 Ernie Lisia is that it's kind of turned into like 0:02:11.840 --> 0:02:14.200 a college course in sorts where it's like you know, 0:02:14.240 --> 0:02:16.840 a lot of these things you hear about, but nobody 0:02:16.880 --> 0:02:20.720 really knows the inner workings of it. And from his perspective, 0:02:20.760 --> 0:02:23.240 he told us from the outside end, but you actually 0:02:23.400 --> 0:02:26.960 have a VC firm. Yes, so this is we're just 0:02:27.000 --> 0:02:29.760 getting the apple sauce from the apple orchard. Yes, so 0:02:30.040 --> 0:02:33.120 this is dope. So all right, all right, so we 0:02:33.200 --> 0:02:34.680 gotta tell a story on this. How did you How 0:02:34.680 --> 0:02:36.600 did you come into the venture capital world? 0:02:37.320 --> 0:02:43.080 Okay, so after I sold my business, I at that 0:02:43.200 --> 0:02:46.040 time was very passionate about building some kind of startup 0:02:46.040 --> 0:02:49.280 community in Harlem. So I did that and it initially 0:02:49.280 --> 0:02:51.040 started as like a little meet up that we call 0:02:51.120 --> 0:02:54.400 co found Harlem, and it just kind of turned into 0:02:54.680 --> 0:02:56.440 you know, at that point, because I sold the business, 0:02:56.480 --> 0:02:58.639 I had a lot more bandwidth and creativity and runway, 0:02:58.680 --> 0:03:00.680 and I wanted to make some shit happen, and so 0:03:00.720 --> 0:03:03.320 we added a little business model behind it. It was 0:03:03.360 --> 0:03:06.440 not a great one, but it turned into incubator of sorts. 0:03:06.600 --> 0:03:09.800 I convinced a developer to give me space for free. 0:03:10.240 --> 0:03:13.640 By the way, this is a thing you can I learned. 0:03:13.720 --> 0:03:15.760 I learned a lot through co Found Harlem because it 0:03:15.800 --> 0:03:18.600 was a non for profit that focused on economic development 0:03:18.680 --> 0:03:22.440 so improve in the area. And so that that got 0:03:22.520 --> 0:03:24.320 me to interface with politics. 0:03:24.560 --> 0:03:27.680 So clpful because people might not be familiar. Co Found 0:03:27.680 --> 0:03:31.200 Harlem was an initiative that you started to help small 0:03:31.240 --> 0:03:33.040 businesses in Harlem get capital right. 0:03:33.160 --> 0:03:35.760 Yes, it was the first incubator in Harlem, and so 0:03:35.920 --> 0:03:40.160 that kind of project I stepped up a little bit 0:03:40.200 --> 0:03:42.120 in my thinking. I got a little bit more macro 0:03:42.240 --> 0:03:45.160 because I was going from just operating a business. 0:03:45.320 --> 0:03:46.680 Now I'm helping other people operate. 0:03:47.040 --> 0:03:50.680 So I'm interfacing with politics because I discovered, oh shit, 0:03:50.800 --> 0:03:54.080 politicians care about the area getting better, but more. 0:03:53.880 --> 0:03:55.080 Important than politicians. 0:03:55.400 --> 0:03:59.800 Politicians have power, but real estate developers have a very 0:03:59.840 --> 0:04:02.880 long term interest in the area. I discovered longer term 0:04:02.880 --> 0:04:05.080 than politicians because politics are just like looking for the 0:04:05.160 --> 0:04:05.680 quick election. 0:04:05.880 --> 0:04:08.560 Yeah, these momokers are here forty fifty years. 0:04:09.200 --> 0:04:12.440 And so I pitched a developer to give me free space, 0:04:13.760 --> 0:04:15.000 and you know, it was a very. 0:04:14.880 --> 0:04:16.560 Bold thing, and she was like, why would I do that. 0:04:16.640 --> 0:04:19.279 I was like, well, because I'm gonna incubate businesses and 0:04:19.320 --> 0:04:21.000 the only thing I'm going to ask for them is 0:04:21.040 --> 0:04:22.119 that they stay in Harlem. 0:04:22.200 --> 0:04:23.440 Yeah, I think that's one of the things you said 0:04:23.480 --> 0:04:26.359 right that the businesses had to put their headquarters in Harlem. 0:04:26.480 --> 0:04:27.760 Yes, for four years. 0:04:27.960 --> 0:04:29.520 It ended up it started as four I ended up 0:04:29.520 --> 0:04:32.160 being two Oka and so anyway, so yeah, so we 0:04:32.160 --> 0:04:34.039 were able to get free space because they were like, 0:04:34.040 --> 0:04:36.280 all right, bet, like, we want the value of our 0:04:36.320 --> 0:04:39.200 proper our main business residence is to go up. So 0:04:39.240 --> 0:04:41.320 they had some retail that was opened, so our bet 0:04:41.320 --> 0:04:43.679 cool take that. So yeah, so we got the space, 0:04:43.720 --> 0:04:45.600 we got mentors, we made a little bit of buzz, 0:04:45.600 --> 0:04:47.800 we got companies applying. All of a sudden, I'm running 0:04:47.800 --> 0:04:50.880 an incubator. It's a non for profit incubator. I'm raising 0:04:50.920 --> 0:04:54.320 money through grants and fund you know, and sponsors and 0:04:54.320 --> 0:04:58.280 shit like that. And I inadvertently got into running kind. 0:04:58.200 --> 0:04:59.720 Of an event's business. We had a little bit of 0:04:59.760 --> 0:05:00.520 event That's. 0:05:00.400 --> 0:05:03.120 When I really started dipping my toe into content and 0:05:03.160 --> 0:05:06.640 building a community type business. And then eventually one of 0:05:06.680 --> 0:05:12.080 my biggest donors, who I didn't know. His name is 0:05:12.160 --> 0:05:16.440 David Rose. He's a very prolific angel investor. He's one 0:05:16.440 --> 0:05:18.520 of the most active in New York City. He pretty 0:05:18.560 --> 0:05:20.520 much was like, yo, I come from a big real 0:05:20.640 --> 0:05:23.280 estate family. You might not know that, but I want 0:05:23.320 --> 0:05:25.320 you to do what you did for cofound Harlem for 0:05:25.480 --> 0:05:27.080 us and learn the investment side. 0:05:27.120 --> 0:05:28.720 Can you describe what an angel funder? 0:05:29.000 --> 0:05:33.920 Yes, So an angel investor invests in startups with their 0:05:33.960 --> 0:05:39.000 own money. A VC of venture capitalists invest in startups 0:05:39.240 --> 0:05:42.480 with other people's money. And that's really the key distinction. 0:05:43.120 --> 0:05:46.080 And so David Rose is a prolific angel and he 0:05:46.200 --> 0:05:49.560 wanted me to He wanted to recruit me and help 0:05:49.640 --> 0:05:53.360 him run a fund, as a real estate technology fund. 0:05:53.440 --> 0:05:56.600 So we invested in real estate technology, not physical stuff, 0:05:57.160 --> 0:05:59.520 property management software. And I told Dave, I was like, yo, 0:05:59.520 --> 0:06:01.000 I don't really know any of this. He's like, John, 0:06:01.040 --> 0:06:03.120 we know real estate. You bring your energy. 0:06:03.360 --> 0:06:04.760 So anyway, fast forward a year. 0:06:05.640 --> 0:06:08.840 We learned, you know, we made some good investments, and 0:06:09.080 --> 0:06:11.080 like I sourced the deals on my own, like I 0:06:11.080 --> 0:06:12.920 did everything on my own because they was too busy 0:06:12.960 --> 0:06:15.760 to really give me guidance. But the most important thing 0:06:15.839 --> 0:06:19.120 I learned had nothing to do with the job itself. 0:06:19.440 --> 0:06:22.920 It had to do with like the family had generational wealth, 0:06:23.560 --> 0:06:27.800 Like they controlled thous dozens of thousands of units in 0:06:27.880 --> 0:06:31.040 New York City. I mean truly a legacy family, man. 0:06:31.120 --> 0:06:34.360 I mean, when you go to you know, Dizzey's Club, 0:06:34.520 --> 0:06:37.440 That's that's the Rose. You know the Rose Hall. If 0:06:37.520 --> 0:06:39.160 you go to the American Museum of Natural History, it's 0:06:39.200 --> 0:06:42.279 the Rose Planetarium. Like they're embedded in what it means 0:06:42.279 --> 0:06:45.880 to be New York. Mister Rose, as David's father, large 0:06:45.880 --> 0:06:48.720 and part funded Martin Luther King Junior's original Millienmire March 0:06:48.760 --> 0:06:51.880 in nineteen sixty three. I mean, we're talking about a 0:06:52.000 --> 0:06:54.360 legacy family. And so at that point, man, I really 0:06:54.400 --> 0:06:56.240 caught the bug. I was like, yo, I gotta go 0:06:56.480 --> 0:07:00.240 do this for us. So I went back uptown. I 0:07:00.360 --> 0:07:03.520 met the fellas whom are now my partners at ACP. 0:07:04.240 --> 0:07:07.200 They had their own background. They come from a more 0:07:07.360 --> 0:07:11.640 academic background, and they were fortunate to be exposed to 0:07:12.120 --> 0:07:15.360 finance early. You know, I learned this shit through being 0:07:15.400 --> 0:07:18.760 an entrepreneur. They learned this through like there are pathways 0:07:18.760 --> 0:07:22.320 and programs in place. There's one called SEO and there's 0:07:22.360 --> 0:07:26.280 one called MLT. These are placement programs specifically for people 0:07:26.320 --> 0:07:29.280 of color to break into investment banking. That's only in 0:07:29.320 --> 0:07:32.840 New York or this is nationwide, I want to say. 0:07:33.480 --> 0:07:36.880 And and yeah, these brothers actually all you know, they 0:07:37.000 --> 0:07:38.320 the group was bigger back then. 0:07:38.560 --> 0:07:39.920 They all met in these. 0:07:39.840 --> 0:07:43.720 Placement programs, all working for banks, Goldman, Bank of America, 0:07:43.760 --> 0:07:46.280 shit like that, and they decided like, yo, let's put 0:07:46.280 --> 0:07:48.680 our bread to work. So that you know, they started 0:07:48.680 --> 0:07:51.120 doing that, and they kept hearing about me, because that's 0:07:51.160 --> 0:07:54.520 one thing. If you are top of mind at whatever 0:07:54.560 --> 0:07:57.600 you do, you're going to get more opportunities. And so 0:07:58.240 --> 0:08:00.559 you know, eventually they came on my radar, we met, 0:08:01.200 --> 0:08:04.680 and we started investing together. And one thing to clarify, 0:08:04.880 --> 0:08:08.200 and this is really important because you know, people want 0:08:08.240 --> 0:08:10.080 to get into VC like they think, if you don't 0:08:10.080 --> 0:08:12.760 have a million dollars, you can't do it. But in reality, 0:08:12.880 --> 0:08:15.440 our first few checks were like ten or fifteen K 0:08:15.960 --> 0:08:19.880 by the way, split between like five guys, so it's 0:08:19.920 --> 0:08:22.640 like it was like literally two or three k each. 0:08:23.160 --> 0:08:25.040 So that's what you all came to the table, like 0:08:25.120 --> 0:08:26.040 three thousand piece. 0:08:26.360 --> 0:08:30.760 Yes, that's enough right now. Now, Look, if you. 0:08:32.360 --> 0:08:36.080 Can't make slash save enough to make two or three K, 0:08:36.160 --> 0:08:40.000 you're not ready. But if you're not bullshitting and you're 0:08:40.040 --> 0:08:43.200 serious about your shit, you can stack two K, two 0:08:43.240 --> 0:08:43.719 or three K. 0:08:43.960 --> 0:08:46.760 So five of you come up with three thousand, got fifteen, 0:08:47.080 --> 0:08:49.440 We put together fifteen and then what's the vision now? 0:08:49.480 --> 0:08:51.800 Like and then and then it's like, all right, bet, 0:08:52.320 --> 0:08:53.760 now where do we put it? 0:08:54.280 --> 0:08:54.520 You know? 0:08:55.160 --> 0:08:59.120 And so the quality of your deal flow increases over time. 0:08:59.640 --> 0:09:02.400 But at first, you know, we caught word of a 0:09:02.679 --> 0:09:04.680 local cafe that was looking for money. 0:09:05.080 --> 0:09:05.360 Cool. 0:09:05.400 --> 0:09:07.200 We put a little bit of bread into that, got 0:09:07.200 --> 0:09:09.480 to experience what it was like to be invested in 0:09:09.520 --> 0:09:13.640 small business. We caught word of a dental practice. A 0:09:13.720 --> 0:09:16.000 guy that was buying in dental practice is looking for money. 0:09:16.520 --> 0:09:16.800 Ooh. 0:09:17.480 --> 0:09:19.840 You know, because you start communicating y'all, I'm looking for 0:09:19.880 --> 0:09:22.199 businesses to invest in, you do get deal flow back. 0:09:22.480 --> 0:09:24.439 You put it out and you start getting deal flow back. 0:09:25.320 --> 0:09:27.520 We caught word of a venture company, and so we 0:09:27.559 --> 0:09:30.360 invested in a couple of different few different assets. 0:09:30.400 --> 0:09:32.400 The initial fifteen. No, we're grossing as we go. 0:09:32.520 --> 0:09:35.439 No. So it was like we did capital calls, which 0:09:35.480 --> 0:09:37.800 is like, hey, we found a deal, it's time to 0:09:37.800 --> 0:09:38.400 put bread up. 0:09:39.040 --> 0:09:40.800 So that's a capital call, and you hit the whole group. 0:09:40.840 --> 0:09:43.160 Between all the five of you, there was like six six, 0:09:43.640 --> 0:09:44.600 So there was like six all right. 0:09:44.640 --> 0:09:46.280 So now it's like, okay, we put the first fifteen, 0:09:46.360 --> 0:09:48.240 but you you have to put five more in. 0:09:48.200 --> 0:09:50.920 Each Yeah, I mean five was a lot for me 0:09:50.960 --> 0:09:53.840 at the time, but like you know, it was like, hey, 0:09:53.840 --> 0:09:56.800 we found a deal. Who can put what was really 0:09:56.800 --> 0:09:59.440 the question? And like if I was more liquid at 0:09:59.440 --> 0:10:01.319 that time and really liked the deal, I might have 0:10:01.400 --> 0:10:01.840 put four. 0:10:02.480 --> 0:10:03.440 And then we might've had. 0:10:03.320 --> 0:10:04.920 A partner who was like, ooh, I can only put 0:10:04.960 --> 0:10:08.600 one right now, and so it would vary and so yeah, 0:10:08.679 --> 0:10:09.280 over time. 0:10:09.800 --> 0:10:10.000 You know. 0:10:10.080 --> 0:10:12.319 The interesting thing, and this is credit to my partners 0:10:12.360 --> 0:10:16.120 at harm Capital, is like we always treated twenty five 0:10:16.240 --> 0:10:21.480 k like it was twenty five million, and now we've 0:10:21.480 --> 0:10:24.360 closed on twenty five million. So you know, so it's 0:10:24.400 --> 0:10:28.480 just crazy because you got to treat the baby step 0:10:28.640 --> 0:10:30.560 with as much respect as the end goal. 0:10:30.760 --> 0:10:32.400 So how did you all right, how did that work out? 0:10:32.440 --> 0:10:35.000 As far as the first early like look at even 0:10:35.040 --> 0:10:36.760 the first deal that you had a dentist office or 0:10:36.760 --> 0:10:39.040 the bakery. You gave him like what like five thousand 0:10:39.120 --> 0:10:40.640 dollars something like that or yeah. 0:10:40.720 --> 0:10:42.920 So so the way the actual mechanics is, I know 0:10:43.800 --> 0:10:47.600 Yl likes to get into that is so the way 0:10:47.640 --> 0:10:49.040 you do it is you form an LLC. 0:10:49.600 --> 0:10:53.160 Okay, okay, and so each of the partners become members 0:10:53.200 --> 0:10:53.920 in that LLC. 0:10:54.280 --> 0:10:57.600 You name that shit whatever you want, and yeah, so 0:10:57.640 --> 0:10:59.880 it ends up being what we call an SPV, which 0:11:00.120 --> 0:11:02.920 is a special purpose vehicle, which is pretty much fancy 0:11:02.920 --> 0:11:07.120 talk for saying like, hey, anytime we invest in said company, 0:11:07.160 --> 0:11:10.440 it's gonna come through this entity, right, And the LLC 0:11:10.760 --> 0:11:14.360 is a fascinating legal entity because it's a flow through entity. 0:11:14.840 --> 0:11:17.840 So it's like, you become members in that and like 0:11:18.320 --> 0:11:22.560 you on the company. Let's say we invest in you know, 0:11:22.640 --> 0:11:26.800 the cafe on that company's docs, on the formation documents 0:11:26.840 --> 0:11:30.360 for that company, they're going to see Harlem Capital Partners 0:11:30.559 --> 0:11:31.440 LLC on there. 0:11:32.120 --> 0:11:33.600 But then you. 0:11:33.559 --> 0:11:37.000 Know, if we make a profit or a loss, the 0:11:37.040 --> 0:11:40.280 profits and or losses from that entity flows through to 0:11:40.320 --> 0:11:42.960 each of the individual partners. So it's really just like 0:11:43.000 --> 0:11:47.079 a like a shield. It's like a step step away 0:11:47.200 --> 0:11:51.040 is removed. So anyway you make an LLC, you invite whomever, 0:11:51.280 --> 0:11:53.840 for anyone listening who wants to create a little syndicate. 0:11:53.960 --> 0:11:57.600 That's what you call it, an angel syndicate. You invite 0:11:57.600 --> 0:11:59.880 homies that you think are serious, you join the l 0:12:00.120 --> 0:12:02.200 see you brand it, come up with a cool name, 0:12:02.840 --> 0:12:05.280 and then you start communicating into the world at large 0:12:05.280 --> 0:12:08.040 that you're looking to invest, and you know, and then 0:12:08.040 --> 0:12:10.439 you look for deal flow, and that's you know, that's 0:12:10.440 --> 0:12:12.120 how it works. And so we would put ten k, 0:12:12.600 --> 0:12:14.440 and then I think we ended up doing like six 0:12:14.480 --> 0:12:18.280 deals as angels, ten, fifteen, twenty if it was a 0:12:18.280 --> 0:12:23.440 hot deal, ten if I was low on cash, and like, man, 0:12:24.000 --> 0:12:27.120 it's not really about We haven't seen a dollar, by 0:12:27.160 --> 0:12:29.040 the way, from any of the Angel investments we've made. 0:12:30.040 --> 0:12:33.679 In fact, we've lost money. Yeah, the cafe closed down. 0:12:34.080 --> 0:12:36.440 You know, we've seen some distributions from the dental practice, 0:12:36.480 --> 0:12:38.240 but not really a lot of stuff doesn't work out 0:12:38.280 --> 0:12:41.840 according to plan. But the most important thing is being 0:12:41.920 --> 0:12:45.520 on the ride. Like I don't listen to anyone in 0:12:45.559 --> 0:12:49.040 business who hasn't lost more money than me. Like, you 0:12:49.200 --> 0:12:52.080 gotta get skin in the game. I can't take you 0:12:52.080 --> 0:12:54.760 serious if you don't have skin in the game. Like 0:12:55.640 --> 0:12:57.760 you guys got cameras, you got mics. 0:12:57.760 --> 0:12:59.600 Lost a lot of money if this shit. 0:12:59.400 --> 0:13:03.360 Wouldn't have worked, Like you know, you got the focus right, 0:13:03.400 --> 0:13:05.040 you got the mac butt, Like you know what I'm saying. 0:13:05.040 --> 0:13:07.120 Like you guys are putting bread in you put bread 0:13:07.200 --> 0:13:10.800 up to buy the shirts. You're putting bread in right, 0:13:10.960 --> 0:13:13.800 and and so anyway, with the angel investing thing, it's 0:13:13.840 --> 0:13:15.920 a lot more important to get in the game. 0:13:16.600 --> 0:13:18.120 And you will not know this why. 0:13:18.080 --> 0:13:19.400 At the beginning you asked me, like, yo, if I 0:13:19.440 --> 0:13:20.840 got any book tips, and I said, I don't really 0:13:20.880 --> 0:13:24.559 fuck with books, because you will not know what acid 0:13:24.640 --> 0:13:26.520 class you like until you invest in it. 0:13:27.000 --> 0:13:28.319 I thought I loved. 0:13:28.080 --> 0:13:30.360 Investing in small business, and then I discovered I really 0:13:30.400 --> 0:13:32.319 don't like this ship because when I was meeting with 0:13:32.360 --> 0:13:34.480 the business owners, we were talking about napkins and forks, 0:13:34.520 --> 0:13:36.520 and I'm like, dude, you know, I want to talk 0:13:36.520 --> 0:13:39.439 about scale, and you know, like this just wasn't It 0:13:39.559 --> 0:13:40.040 wasn't for me. 0:13:40.880 --> 0:13:43.480 I discovered that I like real estate a lot. 0:13:43.679 --> 0:13:46.240 I love real estate. I wouldn't have known that unless 0:13:46.280 --> 0:13:48.040 I jumped in. So I'm a really big fan of 0:13:48.120 --> 0:13:50.240 jumping in. And if you can't jump in a big scale, 0:13:50.240 --> 0:13:51.520 you're jumping in a small scale. 0:13:52.040 --> 0:13:54.040 Just jump in. So how does that work when it's 0:13:54.040 --> 0:13:54.480 six of you? 0:13:54.640 --> 0:13:57.679 Right as far as decisions, is it like majority or 0:13:57.720 --> 0:13:59.320 if it's like you know what, you don't like it, 0:13:59.360 --> 0:14:00.199 you're just not part. 0:14:00.679 --> 0:14:02.440 Yeah, So it has changed over time. 0:14:02.520 --> 0:14:05.920 So when we were an angel syndicate, it was like, hey, 0:14:05.960 --> 0:14:06.720 are you interested. 0:14:06.800 --> 0:14:07.960 Some folks might have said no. 0:14:09.160 --> 0:14:11.760 But also, you know, going back to this business is 0:14:11.800 --> 0:14:14.440 really a people first thing. You know, it's also respect 0:14:14.480 --> 0:14:16.400 for your partners, because your partner might find a good 0:14:16.440 --> 0:14:18.800 deal and you know, might have gotten in a good 0:14:18.840 --> 0:14:22.520 rapport with that founder and then two months in it's 0:14:22.560 --> 0:14:25.240 time to invest, and like, you know, I want to 0:14:25.240 --> 0:14:27.680 support the fact that my partner's excited about this deal, 0:14:27.800 --> 0:14:30.120 and I'm gonna put I'm not going to step up big. 0:14:30.480 --> 0:14:32.280 I might put up a thousand and be like yo, 0:14:32.320 --> 0:14:36.760 all right, cool, you know, put that in the deal. Conversely, 0:14:36.960 --> 0:14:38.920 when it's a hot deal, when it's by the way, 0:14:39.000 --> 0:14:42.480 hot deals, you're not they're not pitching you, you're pitching 0:14:42.520 --> 0:14:47.280 them to get in. Hot deals are oversubscribed, meaning a 0:14:47.360 --> 0:14:51.200 company typically will raise a finite amount of capital that's 0:14:51.240 --> 0:14:55.760 what we call around at a fixed evaluation. Okay, so 0:14:55.800 --> 0:14:58.240 they'll say, hey, I'm raising one point five million dollars 0:14:58.360 --> 0:15:01.120 at an eight million dollar valuation, i e. They're giving 0:15:01.160 --> 0:15:04.160 away twenty percent of the company. And then if it's 0:15:04.200 --> 0:15:10.320 a high deal, you get good funds in investing, and 0:15:10.400 --> 0:15:13.680 so like a fund you know, is like for anyone 0:15:14.000 --> 0:15:17.920 maybe doesn't know, is like you know entrepreneurs who go 0:15:17.920 --> 0:15:18.640 out there and rate. 0:15:19.840 --> 0:15:22.080 This episode is brought to you by P and C Bank. 0:15:22.480 --> 0:15:25.240 A lot of people think podcasts about work are boring, 0:15:25.440 --> 0:15:29.280 and sure they definitely can be, but understanding a professionals 0:15:29.360 --> 0:15:32.640 routine shows us how they achieve their success little by little, 0:15:33.000 --> 0:15:36.680 day after day. It's like banking with P and C Bank. 0:15:37.120 --> 0:15:39.920 It might seem boring to safe plan and make calculated 0:15:39.960 --> 0:15:43.080 decisions with your bank, but keeping your money boring is 0:15:43.080 --> 0:15:46.440 what helps you live or more happily fulfilled life. P 0:15:46.520 --> 0:15:51.360 and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly 0:15:51.400 --> 0:15:54.040 Boring since eighteen sixty five is a service mark of 0:15:54.080 --> 0:15:57.320 the PNC Financial Service Group, Inc. P and C Bank 0:15:57.760 --> 0:16:00.360 National Association member FDIC. 0:16:03.040 --> 0:16:03.360 Erners. 0:16:03.360 --> 0:16:03.720 What's up? 0:16:03.800 --> 0:16:06.280 You ever walk into a small business and everything just 0:16:06.440 --> 0:16:09.600 works like, the checkout is fast, the receipts are digital, 0:16:10.120 --> 0:16:13.120 tipping is a breeze, and you're out the door before 0:16:13.120 --> 0:16:17.280 the line even builds. Odds are they're using Square? 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To see how Square can transform your business, 0:16:53.200 --> 0:16:57.840 visit Square dot com backslash go backslash eyl to learn 0:16:57.880 --> 0:17:03.080 more that Square dot com backslash, go backslash uyl. Don't wait, 0:17:03.360 --> 0:17:06.199 don't hesitate. Let's Square handle the back end so you 0:17:06.200 --> 0:17:07.879 can keep pushing your vision forward. 0:17:10.480 --> 0:17:13.240 Coach, the energy out there felt different. What changed for 0:17:13.280 --> 0:17:13.919 the team today? 0:17:14.000 --> 0:17:16.159 It was the new game day, scratches from the California 0:17:16.200 --> 0:17:19.560 Lottery players, everything. Those games sent the team's energy through 0:17:19.600 --> 0:17:19.920 the roof. 0:17:20.000 --> 0:17:21.960 Are you saying it was the off field play that 0:17:22.040 --> 0:17:23.160 made the difference on the field. 0:17:23.240 --> 0:17:25.960 Hey, little play makes your day, and today it made 0:17:26.000 --> 0:17:29.200 the game. That's all for now, Coach, One more question. 0:17:29.080 --> 0:17:31.919 Play the new Los Angeles Chargers, San Francisco forty nine 0:17:32.000 --> 0:17:35.080 ers and Los Angeles Rams Scratchers from the California Lottery. 0:17:35.160 --> 0:17:38.280 A little play can make your day. Peace made responsibily. 0:17:38.359 --> 0:17:40.480 Must be eighteen years or older to purchase plate or claim. 0:17:40.240 --> 0:17:44.480 Paise money from the market. You know, in institutions and downmns, 0:17:44.480 --> 0:17:47.080 shit like that. And you know they have a great 0:17:47.119 --> 0:17:50.240 brand name. And over time, especially from Silicon Valley, you've 0:17:50.240 --> 0:17:54.000 had prestige funds emerge. These are funds that have proven 0:17:54.040 --> 0:17:57.959 track record that they know how to spot winners Sequoia, Benchmark, 0:17:58.240 --> 0:18:00.400 Kleiner Perkins. 0:17:59.800 --> 0:18:02.320 Whenever you see them on the cap table. 0:18:02.440 --> 0:18:06.119 The cap table is short for capitalization table, which is 0:18:06.280 --> 0:18:09.639 the page on your company's documents that shows who owns 0:18:09.680 --> 0:18:12.840 what and so the cap table, you'll see a list 0:18:12.840 --> 0:18:18.160 and it'll say NAS invested fifty K owns too PID. Yeah, 0:18:18.160 --> 0:18:20.440 and so he also invests an angel you know such 0:18:20.480 --> 0:18:21.359 and such invested this. 0:18:21.640 --> 0:18:23.840 So the cap table. So we have this thing in VC. 0:18:24.040 --> 0:18:26.600 You want to be on cap tables, you know, like 0:18:26.680 --> 0:18:27.800 a lot of motherfuckers talking shit. 0:18:27.880 --> 0:18:29.760 But I never see you on the cap table. You know, 0:18:30.600 --> 0:18:31.200 you might be at. 0:18:31.080 --> 0:18:32.560 The club table, but I don't see you at the 0:18:32.560 --> 0:18:36.560 cat table at the crap table. Yeah right right, so 0:18:37.720 --> 0:18:39.720 that's good on the cat table. 0:18:39.720 --> 0:18:40.760