1 00:00:02,160 --> 00:00:07,920 Speaker 1: Black Tech, Green Money, Season two, Episode ten. I'm talking 2 00:00:07,920 --> 00:00:10,960 Speaker 1: with the founders and partners that Collab Capital and Investment 3 00:00:11,039 --> 00:00:14,640 Speaker 1: fund helping black founders bill sustainable innovations in their businesses. 4 00:00:15,720 --> 00:00:18,760 Speaker 1: The partners, very Given Steel Berks and Justin Twkins are 5 00:00:18,840 --> 00:00:22,720 Speaker 1: previous operators and engineers who have raised significant vengean capital 6 00:00:22,800 --> 00:00:26,880 Speaker 1: and successfully sold their companies. I posed the question to 7 00:00:26,920 --> 00:00:29,000 Speaker 1: the group about an idea that we talked often about 8 00:00:29,040 --> 00:00:33,280 Speaker 1: in black tech, that we're often too over mentored and underfunded. 9 00:00:34,560 --> 00:00:37,920 Speaker 1: With that being true, what still is needed non monetarily 10 00:00:38,000 --> 00:00:42,240 Speaker 1: for founders to realize the fullest potential of their startups. 11 00:00:42,280 --> 00:00:45,360 Speaker 1: Justin Dawkins, partner at Collab, answers one of the things 12 00:00:45,400 --> 00:00:48,519 Speaker 1: that is often just one of many things that's often missing. 13 00:00:48,920 --> 00:00:51,400 Speaker 1: UM is usually promised, which is, oh, we're gonna be 14 00:00:51,440 --> 00:00:54,080 Speaker 1: your partners. We're going to do the things that we 15 00:00:54,120 --> 00:00:57,160 Speaker 1: need to do to UM side the car the capital 16 00:00:57,320 --> 00:00:59,680 Speaker 1: right that's going into the business, but the level of 17 00:00:59,720 --> 00:01:03,520 Speaker 1: inten tonalities not always there, which is the commitment, the 18 00:01:03,880 --> 00:01:08,560 Speaker 1: willingness to get into the weeds UM and as experienced operators, 19 00:01:08,600 --> 00:01:10,959 Speaker 1: all three of us having built different types of businesses 20 00:01:10,959 --> 00:01:13,760 Speaker 1: and helped to create other types of businesses. We recognize 21 00:01:13,760 --> 00:01:18,119 Speaker 1: and understand that sometimes the best investors are experienced operators, 22 00:01:18,200 --> 00:01:21,040 Speaker 1: folks who understand how they kind of get into the weeds, 23 00:01:21,280 --> 00:01:24,640 Speaker 1: how to identify business models and opportunities and then build 24 00:01:24,680 --> 00:01:27,480 Speaker 1: out of build out of that experience as opposed to 25 00:01:27,520 --> 00:01:30,680 Speaker 1: just bringing capital U And then the other thing is 26 00:01:31,080 --> 00:01:35,479 Speaker 1: access to to networks. Right, So business is still relationships centric, 27 00:01:35,720 --> 00:01:39,120 Speaker 1: and so no matter how many machines and artificial intelligence 28 00:01:39,200 --> 00:01:42,319 Speaker 1: we put in place, we need relationships. And you know, 29 00:01:42,800 --> 00:01:47,600 Speaker 1: two notches above warm intros. We need highly intentional relationships 30 00:01:47,640 --> 00:01:50,840 Speaker 1: that are developed, nurtured, and so there's there's lines of 31 00:01:50,840 --> 00:01:54,080 Speaker 1: trust so that our founders can get into the doors, 32 00:01:54,440 --> 00:01:57,559 Speaker 1: secure the conversations that they need to have, and get 33 00:01:57,560 --> 00:02:00,200 Speaker 1: the deals actually done. And so those are the things 34 00:02:00,240 --> 00:02:03,800 Speaker 1: that we are actually focused on and collad through our 35 00:02:03,920 --> 00:02:10,440 Speaker 1: non capital contributions and investment. I'm Will Lucas Mrs Black Tech, 36 00:02:10,760 --> 00:02:13,760 Speaker 1: Green Money. I'm gonna introduce you to some of the 37 00:02:13,800 --> 00:02:16,880 Speaker 1: biggest names, some of the brightest minds and brilliant ideas. 38 00:02:17,120 --> 00:02:19,320 Speaker 1: I feel black in building or simply using tech to 39 00:02:19,360 --> 00:02:27,639 Speaker 1: secure your back. This podcast is for you. Sean Mendy 40 00:02:27,800 --> 00:02:31,480 Speaker 1: is co founding partner a concrete roles which invest financial 41 00:02:31,480 --> 00:02:35,120 Speaker 1: and social capital and exceptional ventures led by underrepresented founders 42 00:02:35,120 --> 00:02:38,600 Speaker 1: of color founders addressing the needs of underrepresented consumers of 43 00:02:38,639 --> 00:02:41,880 Speaker 1: color and found us with a demonstrated commitment to creating 44 00:02:41,919 --> 00:02:47,000 Speaker 1: inclusive cultures and building diverse teams. Before VC, he was 45 00:02:47,120 --> 00:02:49,400 Speaker 1: VP of development and the member of the board of 46 00:02:49,440 --> 00:02:51,919 Speaker 1: directors at the Boys and Girls Clubs of the Peninsula. 47 00:02:52,800 --> 00:02:55,480 Speaker 1: So how did he find his way into VC investing 48 00:02:55,480 --> 00:03:00,440 Speaker 1: in startups? I asked him about his journey. Yeah, it's uh, 49 00:03:01,080 --> 00:03:03,760 Speaker 1: it's more complicated than just what I was doing, you know, 50 00:03:03,840 --> 00:03:08,679 Speaker 1: right before launching the fund, so long career, trying to 51 00:03:08,760 --> 00:03:11,840 Speaker 1: drive in fact and actually growing up. You know, Magic 52 00:03:11,919 --> 00:03:14,720 Speaker 1: Johnson was my hero, less for what was happening on 53 00:03:14,760 --> 00:03:16,480 Speaker 1: the court and more for what he was doing in 54 00:03:16,600 --> 00:03:21,600 Speaker 1: terms of, you know, changing communities by ability businesses right um, 55 00:03:21,639 --> 00:03:26,520 Speaker 1: and so you know, planned on doing that right out 56 00:03:26,520 --> 00:03:30,440 Speaker 1: of college. Founded accompany myself. The simplest way to describe 57 00:03:30,440 --> 00:03:35,480 Speaker 1: it is a tech enabled diversity recruiting platform. Had some 58 00:03:35,520 --> 00:03:39,440 Speaker 1: marginal success raising money, some marginal success with users. Oh wait, 59 00:03:39,440 --> 00:03:42,360 Speaker 1: it happens economy tanks. Folks were getting jobs, are getting 60 00:03:42,400 --> 00:03:44,600 Speaker 1: laid off before they even started. The jobs just don't exist, 61 00:03:45,280 --> 00:03:47,880 Speaker 1: and you know, didn't love you know, basically running an 62 00:03:48,000 --> 00:03:50,680 Speaker 1: HR firm. Um. So that out of that, and then 63 00:03:51,240 --> 00:03:54,080 Speaker 1: did some late stage tech or some later stage tech, 64 00:03:54,120 --> 00:03:58,680 Speaker 1: still still considered early but later than started a previous startup, 65 00:03:59,240 --> 00:04:03,280 Speaker 1: um uh, trying to drive social impact, a company called Causes. 66 00:04:03,280 --> 00:04:06,160 Speaker 1: It was the first app on Facebook. But I've been 67 00:04:06,280 --> 00:04:09,400 Speaker 1: thinking tech was a way to drive impact, you know, 68 00:04:09,760 --> 00:04:12,920 Speaker 1: since I was first kind out of school, I started 69 00:04:12,960 --> 00:04:15,600 Speaker 1: working at a boys and girls club. Accidentally, I grew 70 00:04:15,680 --> 00:04:18,800 Speaker 1: up in Silicon Valley. I had, you know, friends, and 71 00:04:18,839 --> 00:04:22,760 Speaker 1: all the different neighborhoods that exist here. I saw, you know, 72 00:04:22,839 --> 00:04:26,040 Speaker 1: the opportunities that were given to folks depending on zip code, 73 00:04:26,040 --> 00:04:29,400 Speaker 1: depending on what school they went to, depending on did 74 00:04:29,400 --> 00:04:32,680 Speaker 1: your companies, you know, did they did they own True 75 00:04:32,720 --> 00:04:35,760 Speaker 1: Equity and Intel and HP and and and that Cisco 76 00:04:36,000 --> 00:04:39,200 Speaker 1: generational tech companies? Or did you just work there or 77 00:04:39,360 --> 00:04:41,119 Speaker 1: were you working at the restaurant that Cisco and Floss 78 00:04:41,160 --> 00:04:43,520 Speaker 1: we're going to. So I saw all these things happening, 79 00:04:43,960 --> 00:04:46,240 Speaker 1: um and really, you know, thought all right, let me 80 00:04:46,400 --> 00:04:48,560 Speaker 1: let me go. I'm gonna volunteer at this boys and 81 00:04:48,600 --> 00:04:52,320 Speaker 1: girls Puble'm gonna meet five black males. I'm gonna mentor 82 00:04:52,400 --> 00:04:54,320 Speaker 1: them and help them get the opportunities I got so 83 00:04:54,360 --> 00:04:57,040 Speaker 1: that they could end up, you know, participating what's happening 84 00:04:57,080 --> 00:04:58,960 Speaker 1: here in a different way than than they would have 85 00:04:59,040 --> 00:05:02,000 Speaker 1: there not been this. In eventual it somehow the five 86 00:05:02,080 --> 00:05:07,400 Speaker 1: kids became fifty became five and um, you know, uh, 87 00:05:08,080 --> 00:05:11,640 Speaker 1: all right, education, so I'm gonna change the world. It's 88 00:05:11,720 --> 00:05:14,960 Speaker 1: still like this. Go ahead, No, I wouldn't let you 89 00:05:14,960 --> 00:05:17,360 Speaker 1: finish that, because You've pointed out some things I'm gonna 90 00:05:17,400 --> 00:05:19,480 Speaker 1: come back to. We'll go ahead finish all right, Let's 91 00:05:19,520 --> 00:05:22,080 Speaker 1: let's come back to that. So really, you know, to 92 00:05:22,080 --> 00:05:24,760 Speaker 1: to accelerate the story a bit um, you know, after 93 00:05:25,080 --> 00:05:27,760 Speaker 1: thinking I'm gonna do education, going and studying a policy 94 00:05:27,760 --> 00:05:31,880 Speaker 1: to standford, you know, gett an nba um and thinking, 95 00:05:32,080 --> 00:05:33,520 Speaker 1: you know, I'm never coming back to this boys and 96 00:05:33,560 --> 00:05:36,080 Speaker 1: Girls club, the CEO there called me and said, hey, 97 00:05:36,120 --> 00:05:39,000 Speaker 1: you know you you actually ran programs. You develop and 98 00:05:39,040 --> 00:05:42,240 Speaker 1: design these programs. Let's scale them now and let's do 99 00:05:42,279 --> 00:05:44,799 Speaker 1: a campaign to meet the meet the demand in Silicon 100 00:05:44,880 --> 00:05:47,040 Speaker 1: Valley for all these families and students that are not 101 00:05:47,640 --> 00:05:50,200 Speaker 1: you know, you're not getting getting with the resources they 102 00:05:50,240 --> 00:05:53,520 Speaker 1: need to really participate what's happening here. So came back raised. 103 00:05:53,600 --> 00:05:55,600 Speaker 1: I've had a band of raised ten million dollars in 104 00:05:56,080 --> 00:05:59,240 Speaker 1: one year and ended up raising closer to fifty and four. 105 00:06:00,279 --> 00:06:04,520 Speaker 1: And in doing that, it was kind of this hack 106 00:06:04,640 --> 00:06:08,320 Speaker 1: into understanding who in Silicon Valley truly cares about the 107 00:06:08,360 --> 00:06:10,839 Speaker 1: opportunity gap, Who wants to make sure that the Silicon 108 00:06:10,960 --> 00:06:13,919 Speaker 1: Valley is a place there's a true meritocracy and where 109 00:06:14,000 --> 00:06:15,800 Speaker 1: you know, it doesn't matter what family are born into, 110 00:06:15,800 --> 00:06:17,919 Speaker 1: you're going to get a shot at getting an education 111 00:06:17,960 --> 00:06:19,920 Speaker 1: and and and doing what needs to be done to 112 00:06:19,920 --> 00:06:21,760 Speaker 1: be able to access BET. You know the opportunity in 113 00:06:21,760 --> 00:06:26,120 Speaker 1: Silicon Valley. And you know the chairs of this campaign. 114 00:06:26,360 --> 00:06:28,560 Speaker 1: You know, we started with Condi Rice sharing at the campaign. 115 00:06:28,640 --> 00:06:31,239 Speaker 1: So it was starting with Condi Rice is addressed books 116 00:06:31,880 --> 00:06:35,320 Speaker 1: UM and going and meeting folks with her making the introduction. 117 00:06:35,560 --> 00:06:38,240 Speaker 1: So we built this incredible network of folks who were 118 00:06:39,040 --> 00:06:42,080 Speaker 1: you know, committed to our mission. Happened to be running 119 00:06:42,080 --> 00:06:44,719 Speaker 1: the biggest companies in the world. UM. You know, everybody 120 00:06:44,760 --> 00:06:47,240 Speaker 1: from somd Our Pachild to Kevin Durant was involved in 121 00:06:47,240 --> 00:06:50,640 Speaker 1: this organization. UM and so was able to build really 122 00:06:50,640 --> 00:06:55,839 Speaker 1: authentic relationships with folks on this important issue. I realized, um, 123 00:06:55,880 --> 00:06:59,159 Speaker 1: you know, the things that we're addressing were very important 124 00:06:59,160 --> 00:07:02,719 Speaker 1: individual live not a dreading to positive inequality to lucaman 125 00:07:02,720 --> 00:07:07,680 Speaker 1: inequality is wealth we had the opportunity to create. And so, uh, 126 00:07:07,839 --> 00:07:10,080 Speaker 1: four years ago, I started, you know, thinking what can 127 00:07:10,120 --> 00:07:12,640 Speaker 1: I actually do to address that? I started sharing that 128 00:07:12,760 --> 00:07:15,120 Speaker 1: vision with the folks that um that that I had 129 00:07:15,120 --> 00:07:18,000 Speaker 1: met through my previous work, and that's what ultimately led 130 00:07:18,040 --> 00:07:21,600 Speaker 1: to being able to lunch Country Road. And so you 131 00:07:21,600 --> 00:07:23,560 Speaker 1: you kind of touched on a couple of things that 132 00:07:23,560 --> 00:07:26,280 Speaker 1: that really sparked my interest just now. And and one 133 00:07:26,320 --> 00:07:29,640 Speaker 1: of them is that, you know, you were intrigued by 134 00:07:30,280 --> 00:07:32,040 Speaker 1: people who worked at some of these big companies and 135 00:07:32,040 --> 00:07:33,880 Speaker 1: they weren't just in the kitchen like you grew up 136 00:07:33,880 --> 00:07:36,360 Speaker 1: in the Bay Area. And so I would imagine, and 137 00:07:36,400 --> 00:07:37,840 Speaker 1: you can correct me if I'm wrong, but I would 138 00:07:37,880 --> 00:07:42,560 Speaker 1: imagine you grew up seeing innovation happened very quickly because 139 00:07:42,600 --> 00:07:46,720 Speaker 1: of the ecosystem. Is that correct? Yeah? I grew up 140 00:07:46,920 --> 00:07:50,040 Speaker 1: you know, watching watching families that I knew that I 141 00:07:50,080 --> 00:07:53,360 Speaker 1: was proximate to doing things that literally were changing the 142 00:07:53,400 --> 00:07:56,480 Speaker 1: world and it was normal to me. Um, but what 143 00:07:56,640 --> 00:07:59,360 Speaker 1: was not? What was it was what? It was normal 144 00:07:59,400 --> 00:08:01,560 Speaker 1: to me, but was I also was aware that this 145 00:08:01,640 --> 00:08:04,200 Speaker 1: was not normal, you know, outside of the outside of 146 00:08:04,200 --> 00:08:06,240 Speaker 1: Silicon Valley, right, especially when you know, went to school 147 00:08:06,280 --> 00:08:09,160 Speaker 1: on the East Coast and folks, you know, you know, 148 00:08:09,640 --> 00:08:12,000 Speaker 1: my my my college room was from l A. And 149 00:08:12,040 --> 00:08:14,280 Speaker 1: he was just like l A, you know, you know, 150 00:08:14,320 --> 00:08:18,680 Speaker 1: the typical l A norcaw SoCal rivalry. And he just 151 00:08:18,680 --> 00:08:20,760 Speaker 1: didn't understand the things that were happening in Silicon Valley. 152 00:08:20,760 --> 00:08:22,160 Speaker 1: And that's when I realized, all right, this is not 153 00:08:24,600 --> 00:08:26,920 Speaker 1: aren't aware of the things that are happening here, and 154 00:08:27,000 --> 00:08:29,400 Speaker 1: we're gonna miss out what's happening if we don't figure 155 00:08:29,440 --> 00:08:32,960 Speaker 1: out some ways to actually educate happening. Yeah. So, so 156 00:08:33,040 --> 00:08:36,320 Speaker 1: digging into that, you know, I so often we hear 157 00:08:36,520 --> 00:08:39,880 Speaker 1: that sometimes we don't get the opportunities to engage early 158 00:08:40,040 --> 00:08:43,400 Speaker 1: enough in you know, these opportunities for innovation because we're 159 00:08:43,400 --> 00:08:48,280 Speaker 1: not around those ecosystems, you know, early enough to number one, 160 00:08:48,320 --> 00:08:52,079 Speaker 1: appreciate that innovation is happening. Like I grew up again, 161 00:08:52,120 --> 00:08:54,360 Speaker 1: I grew up in the Midwest, So I grew up 162 00:08:54,360 --> 00:08:57,920 Speaker 1: in the people who were working around me were manufacturing cars, 163 00:08:58,480 --> 00:09:01,679 Speaker 1: you know, and that sort of thing. And so I 164 00:09:01,720 --> 00:09:05,280 Speaker 1: respect that you, you know, you recognize that most of 165 00:09:05,280 --> 00:09:09,600 Speaker 1: the world didn't see that. I wonder what advantages you 166 00:09:09,760 --> 00:09:13,680 Speaker 1: think that plays into your psyche today being a black 167 00:09:13,720 --> 00:09:16,680 Speaker 1: man who grew up in Silicon Valley or in the 168 00:09:16,720 --> 00:09:20,600 Speaker 1: Bay Area. More broadly, how do you think about because 169 00:09:20,600 --> 00:09:24,240 Speaker 1: you just mentioned the inequalities rooted in wealth, that that 170 00:09:24,320 --> 00:09:29,400 Speaker 1: wealth gap, how do you view our opportunity with engaging 171 00:09:29,440 --> 00:09:33,840 Speaker 1: in innovation in order to create wealth when most of 172 00:09:33,920 --> 00:09:37,400 Speaker 1: us don't grow up like you grew up. Yeah, I 173 00:09:37,400 --> 00:09:39,360 Speaker 1: mean even if somebody who grew up here, I still 174 00:09:39,640 --> 00:09:41,600 Speaker 1: didn't have the risk tolerance that some folks had to 175 00:09:41,600 --> 00:09:44,240 Speaker 1: be able to, you know, to do the things that 176 00:09:44,240 --> 00:09:46,400 Speaker 1: that you needed to truly be able to take advantage 177 00:09:46,360 --> 00:09:50,080 Speaker 1: of of the opportunities that are happening here. Like I 178 00:09:50,120 --> 00:09:52,200 Speaker 1: was a founder myself, but I also still had a job. 179 00:09:52,320 --> 00:09:54,440 Speaker 1: I had a part time job that I didn't care 180 00:09:54,480 --> 00:09:58,320 Speaker 1: about because I need to be able to eat right, um. 181 00:09:58,360 --> 00:10:00,679 Speaker 1: And when I did start to ask them success professionally, 182 00:10:01,280 --> 00:10:04,520 Speaker 1: it was very hard to you know, eventually break away 183 00:10:04,559 --> 00:10:06,679 Speaker 1: and go back to essentially being a startup founder. When 184 00:10:06,679 --> 00:10:09,320 Speaker 1: I when I launched Country Rolls in my partner, right, 185 00:10:09,760 --> 00:10:14,160 Speaker 1: there was a certainty, no guarantee that it's gonna work. Um. 186 00:10:14,200 --> 00:10:17,400 Speaker 1: And you know I would also just still say that, Hey, 187 00:10:17,440 --> 00:10:21,280 Speaker 1: like more people know about was happening Silicon Valley. I 188 00:10:21,320 --> 00:10:24,200 Speaker 1: guess it's marginally easier to get involved. There's still there's 189 00:10:24,200 --> 00:10:29,280 Speaker 1: still many barriers um to true participation here um. And 190 00:10:29,840 --> 00:10:33,319 Speaker 1: you know, in relation to wealth and you know inequality 191 00:10:33,920 --> 00:10:36,720 Speaker 1: um and the wealth gap. You know, I think the 192 00:10:36,760 --> 00:10:42,440 Speaker 1: wealth gap. You know, there was absolutely malintent in how 193 00:10:42,559 --> 00:10:46,719 Speaker 1: the wealthcap was initially created. I think there was explicitly 194 00:10:46,760 --> 00:10:50,280 Speaker 1: discriminatory practices. You know there were gon me, let's go 195 00:10:50,320 --> 00:10:53,440 Speaker 1: back further four undo years ago. Anybody who looked like 196 00:10:53,520 --> 00:10:57,640 Speaker 1: us in this country literally is capital for the most part, right, Uh, 197 00:10:57,800 --> 00:11:02,880 Speaker 1: with a few exceptions. Years ago, you know, the programs, 198 00:11:02,960 --> 00:11:06,120 Speaker 1: the government run programs that built the middle class, we 199 00:11:06,160 --> 00:11:07,920 Speaker 1: did not have access to them, whether it's the g 200 00:11:08,080 --> 00:11:13,240 Speaker 1: I Bill, the Homestead Act, um, access home loans. And 201 00:11:13,240 --> 00:11:15,960 Speaker 1: then even you know, fifty or sixty years ago, place 202 00:11:16,040 --> 00:11:19,560 Speaker 1: like siliconally were truly for me, we got redlining, and 203 00:11:19,679 --> 00:11:23,199 Speaker 1: you know, we're still eating shadout of the neighbors were 204 00:11:23,240 --> 00:11:26,680 Speaker 1: the truly being created. So it was not you know, 205 00:11:26,840 --> 00:11:29,400 Speaker 1: it didn't happen accidentally. It was it was intentional, and 206 00:11:29,600 --> 00:11:34,480 Speaker 1: it was you know, it was malicious. UM an exclusionary. 207 00:11:34,720 --> 00:11:37,440 Speaker 1: I think now it's being perpetuated just due to inertia. 208 00:11:38,880 --> 00:11:43,920 Speaker 1: So I think that unless folks are actively creating interventions 209 00:11:44,080 --> 00:11:47,560 Speaker 1: to intentionally and inclusively build wealth going forward by being 210 00:11:47,559 --> 00:11:50,120 Speaker 1: more inclusive, by finding ways to bring you know, folks 211 00:11:50,320 --> 00:11:54,480 Speaker 1: from diverse backgrounds into the fold earlier. You know, how 212 00:11:54,520 --> 00:11:57,840 Speaker 1: do we make them employee you know six or employee 213 00:11:57,840 --> 00:12:00,400 Speaker 1: even sixty? Um, so they actually owned pieces of these 214 00:12:00,440 --> 00:12:02,959 Speaker 1: companies that are being scaled. Um, how do we educate 215 00:12:03,000 --> 00:12:05,000 Speaker 1: folks on how to take the risk to actually do that. 216 00:12:05,040 --> 00:12:08,160 Speaker 1: How do you get somebody to leave their job in Microsoft, Um, 217 00:12:08,240 --> 00:12:10,439 Speaker 1: you know, to take a lower base salary, but I 218 00:12:10,559 --> 00:12:12,960 Speaker 1: hired you know, had higher upside, I mean, the longer 219 00:12:13,160 --> 00:12:14,840 Speaker 1: one of these companies. Those are the things that I'm 220 00:12:14,880 --> 00:12:16,120 Speaker 1: trying to figure out. And those are the things that 221 00:12:16,120 --> 00:12:18,040 Speaker 1: we're trying to do with Comfrey Roads. And that's the 222 00:12:18,080 --> 00:12:20,080 Speaker 1: whole you know, part of the thesis of our fund 223 00:12:20,160 --> 00:12:23,440 Speaker 1: is that you know, under represented talent is not limited 224 00:12:23,480 --> 00:12:26,760 Speaker 1: to founders. Right, there's a lot of funds who are 225 00:12:26,760 --> 00:12:31,120 Speaker 1: focused on under represented founders first founders. We absolutely look 226 00:12:31,160 --> 00:12:33,599 Speaker 1: for for under represented founders. Two thirds of our portfolios 227 00:12:33,600 --> 00:12:36,720 Speaker 1: black and Latino led. Fifty of the fund portfolio is 228 00:12:36,720 --> 00:12:40,000 Speaker 1: women land companies. Um. But what we also really look 229 00:12:40,040 --> 00:12:41,800 Speaker 1: for is who are the right founders that we should 230 00:12:41,800 --> 00:12:44,199 Speaker 1: be working with, regardless of their background, who want to 231 00:12:44,200 --> 00:12:45,920 Speaker 1: build these diverse teams, who are going to build the 232 00:12:45,960 --> 00:12:48,360 Speaker 1: biggest companies, and how do we partner with them to 233 00:12:48,480 --> 00:12:51,240 Speaker 1: ensure that they have an employe number six is is 234 00:12:51,240 --> 00:12:54,400 Speaker 1: a black woman or employee number hundred, you know, LGBT 235 00:12:54,480 --> 00:12:57,600 Speaker 1: P professional UM. So that's I think the key is 236 00:12:57,760 --> 00:12:59,800 Speaker 1: to find the folks who care. And I think that 237 00:12:59,760 --> 00:13:02,600 Speaker 1: that code for me was working on a very local 238 00:13:02,600 --> 00:13:05,920 Speaker 1: problem with global leaders and knowing, all right, if I 239 00:13:05,920 --> 00:13:08,640 Speaker 1: go to Jeff Weiner, he's gonna care about this linked that, right. 240 00:13:08,720 --> 00:13:10,680 Speaker 1: I don't need to convince him. I need to share 241 00:13:10,720 --> 00:13:12,440 Speaker 1: with him what we're trying to do, and he's gonna 242 00:13:12,440 --> 00:13:15,040 Speaker 1: help me do that. That that was the advantage of 243 00:13:15,040 --> 00:13:18,280 Speaker 1: being here. And so I'm gonna come back to this 244 00:13:18,679 --> 00:13:22,559 Speaker 1: idea that you help early stage companies build the first teams. 245 00:13:22,600 --> 00:13:24,360 Speaker 1: We're gonna come back there. I want to set you know, 246 00:13:24,600 --> 00:13:29,400 Speaker 1: more of a foundational um idea first foundational concept and 247 00:13:29,480 --> 00:13:34,160 Speaker 1: so in founding concrete roles, this is a an arm 248 00:13:34,400 --> 00:13:40,520 Speaker 1: of Next play ventures, right, and so is UM is 249 00:13:40,559 --> 00:13:44,040 Speaker 1: totally independent next Play. We're strategic partners with next Okay, 250 00:13:44,040 --> 00:13:48,120 Speaker 1: your strategic partners. Okay, so you're the founder or one 251 00:13:48,160 --> 00:13:53,120 Speaker 1: of the you have a partner? Correct? And when the 252 00:13:53,280 --> 00:13:56,440 Speaker 1: idea here, as I understand it was to create the 253 00:13:56,520 --> 00:13:59,360 Speaker 1: social impact affiliate. You know, so you want to focus 254 00:13:59,440 --> 00:14:04,040 Speaker 1: on those pieces that Next Play maybe needed assistance or 255 00:14:04,559 --> 00:14:06,760 Speaker 1: have gaps, or maybe you come in and fill that 256 00:14:06,920 --> 00:14:11,160 Speaker 1: gap for them. UM, can you define first of all 257 00:14:11,480 --> 00:14:16,160 Speaker 1: social impact from the perspective of venture capital and why 258 00:14:16,200 --> 00:14:19,600 Speaker 1: it was important for you to Why why were you 259 00:14:19,840 --> 00:14:24,000 Speaker 1: uniquely situated to take advantage of this opportunity? Yeah? I 260 00:14:24,000 --> 00:14:26,440 Speaker 1: mean so I would say one, you know, my experience 261 00:14:26,520 --> 00:14:31,440 Speaker 1: is growing up here, my experiences working UM in in 262 00:14:32,120 --> 00:14:34,480 Speaker 1: the communities here that have kind of been left behind, 263 00:14:34,480 --> 00:14:36,840 Speaker 1: the neighborhood that have been left behind or in so 264 00:14:36,960 --> 00:14:41,960 Speaker 1: many cases driven out right UM, the gentrification have given 265 00:14:41,960 --> 00:14:46,240 Speaker 1: me a unique perspective into, uh, what's been happening both 266 00:14:46,240 --> 00:14:49,120 Speaker 1: locally in Silicon Valley and and the global impact that 267 00:14:49,160 --> 00:14:52,160 Speaker 1: Silicon Valley is having. But understood the wealth being created here, 268 00:14:52,240 --> 00:14:54,840 Speaker 1: how the cost of living has gone about folks a 269 00:14:54,920 --> 00:14:57,840 Speaker 1: low income folks which have mostly been folks of color 270 00:14:57,840 --> 00:15:00,560 Speaker 1: have either had you know cell gram months house and 271 00:15:00,600 --> 00:15:03,440 Speaker 1: moved to to Central California or the East Bay or 272 00:15:03,480 --> 00:15:06,480 Speaker 1: you know, um um or who are living here and 273 00:15:06,480 --> 00:15:09,520 Speaker 1: are really struggling. So I have that unique perspective. And 274 00:15:09,520 --> 00:15:12,800 Speaker 1: then I also have the perspective of understanding that the 275 00:15:12,840 --> 00:15:14,920 Speaker 1: decisions that are made here the decisions that are made 276 00:15:14,920 --> 00:15:16,680 Speaker 1: in tech. But when I say Silicon Valley, now I 277 00:15:16,720 --> 00:15:19,440 Speaker 1: just mean the proverbial Silicon Valley, not you know, the 278 00:15:19,520 --> 00:15:23,960 Speaker 1: Silicon Valley as a mindset, um, not necessarily as a geography. Um. 279 00:15:24,000 --> 00:15:29,120 Speaker 1: You know, this Silicon Valley is influencing and building the future. 280 00:15:29,920 --> 00:15:32,840 Speaker 1: And so I saw a you know, there were some 281 00:15:32,840 --> 00:15:36,440 Speaker 1: personal experiences I had with friends with folks who are 282 00:15:36,600 --> 00:15:38,560 Speaker 1: leaders at some of the most influential companies in the 283 00:15:38,560 --> 00:15:41,360 Speaker 1: world where I literally could see decisions that they were 284 00:15:41,400 --> 00:15:45,520 Speaker 1: making impacting like geopolitics. I can see them, you know, 285 00:15:45,880 --> 00:15:48,400 Speaker 1: decisions being made at some of these you know, fan companies, 286 00:15:49,040 --> 00:15:52,080 Speaker 1: UM in in good and bad ways. It's uh, you know, 287 00:15:52,160 --> 00:15:55,080 Speaker 1: impact in the world. And so that to me was 288 00:15:55,120 --> 00:15:57,800 Speaker 1: like was was an exclamation point on the importance for 289 00:15:57,840 --> 00:16:01,920 Speaker 1: having diversity at these these massive companies. If you don't 290 00:16:02,000 --> 00:16:04,760 Speaker 1: have diversity in these rooms, you are just not making 291 00:16:04,760 --> 00:16:08,120 Speaker 1: the best decisions. Right. UM. You need you know, you 292 00:16:08,120 --> 00:16:10,160 Speaker 1: need different perspectives. You can't have a group thinks you can't. 293 00:16:10,160 --> 00:16:14,120 Speaker 1: You need you need have different life experiences informing um, 294 00:16:14,160 --> 00:16:15,920 Speaker 1: you know, the decisions that you were making in these companies. 295 00:16:15,960 --> 00:16:18,360 Speaker 1: So that that was the perspective that I brought, was 296 00:16:18,520 --> 00:16:21,440 Speaker 1: understanding the wealth being created, understanding the impact that we 297 00:16:21,440 --> 00:16:25,920 Speaker 1: were having globally by decisions being made in Silicon Valley. UM, 298 00:16:25,960 --> 00:16:29,960 Speaker 1: you know, in terms of being an impact fund. So 299 00:16:31,400 --> 00:16:34,560 Speaker 1: you know my partnership with with Jeff and Next Play Adventurers. 300 00:16:35,240 --> 00:16:38,880 Speaker 1: You know, I had worked with Jeff on the local issues. UM. 301 00:16:38,920 --> 00:16:41,080 Speaker 1: I told him that I thought I saw a way 302 00:16:41,160 --> 00:16:44,680 Speaker 1: for us to create a fund that would be impacting 303 00:16:45,600 --> 00:16:50,160 Speaker 1: the racial wealthcare UM and bringing more diversity into tech. 304 00:16:50,400 --> 00:16:53,000 Speaker 1: The way that we think about social inmtercraft is essentially 305 00:16:53,600 --> 00:16:56,840 Speaker 1: less being an impact fund that invests in, you know, 306 00:16:57,680 --> 00:17:00,280 Speaker 1: companies that focused on in tech or climate it or 307 00:17:00,360 --> 00:17:02,560 Speaker 1: I mean we have companies looking our portfolio that if 308 00:17:02,560 --> 00:17:05,600 Speaker 1: that fall into both those buckets. UM, But it's actually 309 00:17:05,640 --> 00:17:10,680 Speaker 1: more about UM investing in great companies and encouraging them 310 00:17:11,080 --> 00:17:14,920 Speaker 1: and partnering with them uh to be more inclusive. Right. So, 311 00:17:15,600 --> 00:17:20,640 Speaker 1: whether it's you know, investing directly to underpresent founders, obviously 312 00:17:20,640 --> 00:17:22,679 Speaker 1: it's gonna be you know, impactful, and that's gonna generate 313 00:17:22,680 --> 00:17:25,720 Speaker 1: wealth for underpresenting folks. But also if we're investing in 314 00:17:25,760 --> 00:17:29,440 Speaker 1: companies that have founders who may not be under representing themselves. 315 00:17:29,680 --> 00:17:31,840 Speaker 1: But if we can help the next two or butterfield 316 00:17:31,840 --> 00:17:35,520 Speaker 1: of Slack build a company and hire black women you 317 00:17:35,560 --> 00:17:39,360 Speaker 1: know as the first twenty employees or within the first 318 00:17:39,359 --> 00:17:43,760 Speaker 1: twenty employees, like, that's gonna also generate wealth for that group. UM. 319 00:17:43,880 --> 00:17:45,879 Speaker 1: The next thing that we've actually done is we've pledged 320 00:17:46,480 --> 00:17:50,280 Speaker 1: of our carry to our sister conquer Rose Community Foundation. 321 00:17:50,840 --> 00:17:55,480 Speaker 1: The foundation funds innovative solutions addressing racial and equality across 322 00:17:55,480 --> 00:17:58,400 Speaker 1: the country. So we have a broad vision for where 323 00:17:58,400 --> 00:18:00,920 Speaker 1: the foundation ultimately go. There owed it down to start 324 00:18:00,960 --> 00:18:04,840 Speaker 1: with organizations that are focused on education or employment UM 325 00:18:04,880 --> 00:18:07,280 Speaker 1: as as a starting point from phase one. UM. But 326 00:18:07,280 --> 00:18:09,800 Speaker 1: we've already actually have some some resources that we're deploying 327 00:18:09,840 --> 00:18:13,680 Speaker 1: there at partway organizations like color Wave and color Stack 328 00:18:13,760 --> 00:18:17,520 Speaker 1: and def Color and Management Leadership for Tomorrow Harlem Children's 329 00:18:17,560 --> 00:18:21,320 Speaker 1: Own UM and are really trying to catalyze more innovation 330 00:18:21,520 --> 00:18:23,680 Speaker 1: by those nonprofits and with those leaders and then also 331 00:18:23,720 --> 00:18:27,240 Speaker 1: connected to industry and detect to create this community that's 332 00:18:27,240 --> 00:18:29,840 Speaker 1: going to be impactful both to the companies that we 333 00:18:29,880 --> 00:18:31,879 Speaker 1: invested in the way that wealth is created and then 334 00:18:31,920 --> 00:18:35,400 Speaker 1: also by the way we're explicitly funding social impacts through 335 00:18:35,440 --> 00:18:39,240 Speaker 1: the nonprofit partment. So I want to pick up something 336 00:18:39,280 --> 00:18:41,719 Speaker 1: you just said that because if I heard you correctly, 337 00:18:41,760 --> 00:18:45,800 Speaker 1: you're not particularly focused on a specific vertical like gaming 338 00:18:45,880 --> 00:18:49,760 Speaker 1: or healthcare, etcetera. How and if if that's correct, how 339 00:18:50,280 --> 00:18:55,720 Speaker 1: can you build a a domain expertise if you think 340 00:18:55,760 --> 00:18:57,920 Speaker 1: you need it in order to be able to make 341 00:18:57,960 --> 00:19:01,879 Speaker 1: good bets? Yeah, I think we need to be smart 342 00:19:01,960 --> 00:19:05,720 Speaker 1: me to understand anything we're investing in. We're generalists for 343 00:19:05,720 --> 00:19:08,439 Speaker 1: for a reason that's considered with our men, right, So 344 00:19:09,080 --> 00:19:11,640 Speaker 1: we want to invest in under representive founders as often 345 00:19:11,680 --> 00:19:16,240 Speaker 1: as possible. UM And you know, due to kind of 346 00:19:16,240 --> 00:19:21,000 Speaker 1: the compounding inequality the compounding lack of access for folks 347 00:19:21,000 --> 00:19:24,280 Speaker 1: of color. UM, we we didn't see a critical mass 348 00:19:24,400 --> 00:19:28,080 Speaker 1: of you know, founders and once consay be vertical, and 349 00:19:28,119 --> 00:19:30,000 Speaker 1: we thought, let's let's keep our optionality. Let's see what's 350 00:19:30,000 --> 00:19:33,320 Speaker 1: actually out there in the ecosystem. Its helped develop the ecosystem. UM. 351 00:19:33,359 --> 00:19:37,480 Speaker 1: What we did do is we raised our fund from 352 00:19:37,800 --> 00:19:40,240 Speaker 1: some of the you know, the most successful operators and 353 00:19:40,320 --> 00:19:44,879 Speaker 1: investors UM in tech adventure and we engage them both 354 00:19:44,920 --> 00:19:47,400 Speaker 1: in how we're sourcing in diligence and companies and also 355 00:19:47,440 --> 00:19:50,439 Speaker 1: supporting the post investment. And so if you you know, 356 00:19:50,520 --> 00:19:54,879 Speaker 1: run an enterprise tech company, UM, I'm gonna engage Xander Laurie, 357 00:19:55,000 --> 00:19:58,240 Speaker 1: the CEO of of Serving Luney now Momentum or Mkel's 358 00:19:58,280 --> 00:20:02,160 Speaker 1: vain at at zendsk or Smith Formulative into it um 359 00:20:02,160 --> 00:20:05,840 Speaker 1: and uh, you know, engage them as supporters of what 360 00:20:05,880 --> 00:20:12,520 Speaker 1: you're doing. Either's teasers, mentors, um you know, making customer introductions, 361 00:20:12,520 --> 00:20:15,720 Speaker 1: making talent introductions. So you've got this, This all the 362 00:20:15,760 --> 00:20:18,600 Speaker 1: concrete roles network that we leverage that I think gives 363 00:20:18,640 --> 00:20:21,520 Speaker 1: us a major competitive advantage. The social capital that comes 364 00:20:21,520 --> 00:20:24,600 Speaker 1: from that network is really uh, you know, critical to 365 00:20:24,600 --> 00:20:27,879 Speaker 1: the success of of any founder, but specifically the comprete 366 00:20:27,920 --> 00:20:30,800 Speaker 1: roles founders will we've got so to answer your question explicitly, 367 00:20:31,600 --> 00:20:34,600 Speaker 1: no sector like, no sector focus. We won't invest in 368 00:20:34,600 --> 00:20:36,439 Speaker 1: a sector that we can't learn and understand. But we 369 00:20:36,480 --> 00:20:39,959 Speaker 1: also leverage these operators and investors to really, you know, 370 00:20:40,080 --> 00:20:42,240 Speaker 1: to to bolster the support for the companies that we 371 00:20:42,320 --> 00:20:46,640 Speaker 1: do invested. Do you find yourself at any regular interval 372 00:20:46,680 --> 00:20:49,480 Speaker 1: being first money in? You know, one thing that we 373 00:20:49,480 --> 00:20:52,160 Speaker 1: actually really like to do is um you know, kind 374 00:20:52,160 --> 00:20:54,280 Speaker 1: of punch above our weight. So you know, we started 375 00:20:54,280 --> 00:20:56,680 Speaker 1: with a ten million dollar proof of concept fund, is 376 00:20:56,720 --> 00:20:59,000 Speaker 1: what we what we went out. The fund ended up 377 00:20:59,000 --> 00:21:01,600 Speaker 1: being twenty five million UM, but at the when we 378 00:21:01,600 --> 00:21:03,280 Speaker 1: started investing from it, we figured it would be ten 379 00:21:03,280 --> 00:21:06,120 Speaker 1: mill and so we got allocations that were bigger than 380 00:21:06,200 --> 00:21:08,760 Speaker 1: what we would we would be were able to take UM. 381 00:21:08,760 --> 00:21:11,200 Speaker 1: And so we actually went to that network and thought, 382 00:21:11,240 --> 00:21:13,920 Speaker 1: who would strategically be helpful to these companies. So one 383 00:21:13,960 --> 00:21:16,840 Speaker 1: example is a company called a susu um. There are 384 00:21:16,920 --> 00:21:22,000 Speaker 1: a a company that allows consumers to build credit scores 385 00:21:22,040 --> 00:21:24,000 Speaker 1: by paying their rent and they actually don't sell therect 386 00:21:24,080 --> 00:21:27,159 Speaker 1: consumers and sell directly to property owners to have some 387 00:21:27,280 --> 00:21:30,520 Speaker 1: credible partnerships and the founders are amazing. UM met the 388 00:21:30,560 --> 00:21:34,280 Speaker 1: founders who was very early UM and actually you know 389 00:21:34,359 --> 00:21:37,960 Speaker 1: only invested, Uh, we invested a fourth of the amount 390 00:21:37,960 --> 00:21:39,840 Speaker 1: that we actually accounted for. We when we when we 391 00:21:39,880 --> 00:21:43,040 Speaker 1: consider who we brought in a strategic investors alongside of us. 392 00:21:43,160 --> 00:21:45,040 Speaker 1: And so that's how we like to make grounds happen. 393 00:21:45,080 --> 00:21:47,399 Speaker 1: So we'll come in with other folks that we've that 394 00:21:47,520 --> 00:21:51,160 Speaker 1: we have pulled in historically. It's what we're moving forward. 395 00:21:51,320 --> 00:21:53,880 Speaker 1: We're you know, we're actually looking to be first money 396 00:21:53,880 --> 00:21:57,480 Speaker 1: in in more situations has typically been when we've got 397 00:21:57,560 --> 00:22:00,600 Speaker 1: serious about that. Those founders who are repeating under something 398 00:22:00,680 --> 00:22:03,919 Speaker 1: you get underwrite UM because it's very hard to to 399 00:22:03,960 --> 00:22:06,520 Speaker 1: invest it um in somebody that has no track record 400 00:22:06,600 --> 00:22:09,800 Speaker 1: and um, you know isn't hasn't built anything yet, isn't 401 00:22:09,840 --> 00:22:12,639 Speaker 1: is now selling anything yet. But we're open to it, 402 00:22:12,680 --> 00:22:15,400 Speaker 1: like there's there's no h We don't have a hard 403 00:22:15,400 --> 00:22:20,600 Speaker 1: and fast rule of of of too early. Absolutely. Yeah, 404 00:22:20,640 --> 00:22:23,080 Speaker 1: they're on on your website. It talks about UM. You 405 00:22:23,119 --> 00:22:25,919 Speaker 1: wake up every day excited to me brilliant entrepreneurs and 406 00:22:26,000 --> 00:22:30,199 Speaker 1: leaders with ambitious plans to build the future. Um. Speaking 407 00:22:30,240 --> 00:22:32,439 Speaker 1: on the train of thought you were still on. You 408 00:22:32,480 --> 00:22:36,720 Speaker 1: were just on how do you balance ambition as a 409 00:22:36,800 --> 00:22:41,600 Speaker 1: VC with working to make also smart and bets because 410 00:22:41,640 --> 00:22:45,399 Speaker 1: you know, if you could reconcile for me, often smart bets. 411 00:22:46,440 --> 00:22:48,600 Speaker 1: You know, if you think about smart bets and ambition, 412 00:22:49,320 --> 00:22:53,440 Speaker 1: sometimes ambition flies in the face of logic. Yeah. I 413 00:22:53,480 --> 00:22:56,960 Speaker 1: think there's there's such things as rational ambition. Uh. And 414 00:22:57,080 --> 00:23:00,159 Speaker 1: it can manifest itself in the form of vision, the 415 00:23:00,240 --> 00:23:02,879 Speaker 1: big vision. Um. You know, we don't want to invest 416 00:23:02,920 --> 00:23:05,800 Speaker 1: in founders who want to build nice businesses that make 417 00:23:05,880 --> 00:23:08,399 Speaker 1: ten million dollars a year in perpetuity and you know 418 00:23:08,760 --> 00:23:11,080 Speaker 1: maybe two millions that as profit. Um. So it's a 419 00:23:11,160 --> 00:23:13,359 Speaker 1: very nice life. And that's you know that that that 420 00:23:13,480 --> 00:23:17,120 Speaker 1: is a successful business. That's not a venture scalable business. Um. 421 00:23:17,160 --> 00:23:20,879 Speaker 1: So we're looking for folks who you know, you know, 422 00:23:21,080 --> 00:23:24,439 Speaker 1: do uh, you know, have that broad vision, but can 423 00:23:24,480 --> 00:23:27,439 Speaker 1: also kind of see the forest through the trees? Right? Um? 424 00:23:27,480 --> 00:23:30,639 Speaker 1: Are you pragmatic and do that? Can you actually operationalize 425 00:23:30,640 --> 00:23:32,760 Speaker 1: that vision? Is the way that we really think about it. 426 00:23:32,800 --> 00:23:35,560 Speaker 1: So I think we'll underrect for both. Are you somebody 427 00:23:35,560 --> 00:23:37,840 Speaker 1: who thinks big? But are you also somebody who gets 428 00:23:37,840 --> 00:23:40,240 Speaker 1: things done and understands how to prioritize and how to 429 00:23:40,720 --> 00:23:43,640 Speaker 1: you know, um, how to have a process. So I 430 00:23:43,800 --> 00:23:46,399 Speaker 1: that's actually not very difficult. I don't think. I think 431 00:23:46,440 --> 00:23:48,439 Speaker 1: it's more and I think it would be more of 432 00:23:48,480 --> 00:23:51,840 Speaker 1: a of a way to confirm that would be out 433 00:23:51,840 --> 00:23:55,040 Speaker 1: on something is if if the founder is not we 434 00:23:55,080 --> 00:23:57,159 Speaker 1: don't see that see any signals of this founder is 435 00:23:57,160 --> 00:23:59,920 Speaker 1: thinking very big and being ambitious. I don't think it's 436 00:24:00,160 --> 00:24:04,119 Speaker 1: you've got the problem in the reverse. Yeah, when you 437 00:24:04,160 --> 00:24:08,240 Speaker 1: were talking about, you know, helping startups developed diverse teams, 438 00:24:08,840 --> 00:24:11,239 Speaker 1: how I translated that and you can correct me if 439 00:24:11,280 --> 00:24:13,520 Speaker 1: any part of this doesn't make sense to what actually 440 00:24:13,640 --> 00:24:17,840 Speaker 1: is reality. What I what I understand then is you know, 441 00:24:18,200 --> 00:24:20,840 Speaker 1: this is not like we're not investing in you know, 442 00:24:21,920 --> 00:24:25,080 Speaker 1: white male Stanford drop out, you know companies, but we're 443 00:24:25,119 --> 00:24:30,560 Speaker 1: also really emphasizing that, hey, white male Stanford drop out, 444 00:24:31,080 --> 00:24:34,239 Speaker 1: you know that there's some really qualified people who may 445 00:24:34,280 --> 00:24:37,760 Speaker 1: be from you know, underserved, underresourced communities, who are talented, 446 00:24:37,840 --> 00:24:40,399 Speaker 1: have skills, and you can contribute to the growth of 447 00:24:40,440 --> 00:24:46,440 Speaker 1: your enterprise and that's important to you. So how often though, 448 00:24:46,480 --> 00:24:49,080 Speaker 1: when entrepreneurs come to vcs, they just want the money, like, 449 00:24:49,200 --> 00:24:51,560 Speaker 1: give me the money, probably a little bit of your network, 450 00:24:51,600 --> 00:24:54,320 Speaker 1: and how do you hold them accountable to that if 451 00:24:54,359 --> 00:24:57,600 Speaker 1: you can't hold them accountable to diversity at its core, 452 00:24:57,800 --> 00:24:59,600 Speaker 1: There's three kinds of facts that we're looking at back, 453 00:25:00,000 --> 00:25:03,600 Speaker 1: and we're looking at back talented unrepresented founders UM, and 454 00:25:03,640 --> 00:25:05,520 Speaker 1: then we are looking to and we focus on black 455 00:25:05,520 --> 00:25:08,159 Speaker 1: and Latino founders. We fifty percent of our portfolio is 456 00:25:08,200 --> 00:25:10,480 Speaker 1: women founders, but we are explicitly going out and looking 457 00:25:11,080 --> 00:25:15,960 Speaker 1: UM to fund racially underrepresented founders UM, and we we 458 00:25:16,080 --> 00:25:18,440 Speaker 1: pour social capital in them through that comprete rooms network 459 00:25:18,440 --> 00:25:20,600 Speaker 1: that have referenced. Next, we're looking for founders who are 460 00:25:20,600 --> 00:25:23,359 Speaker 1: ability to meet the needs of underrepresented consumers and they 461 00:25:23,359 --> 00:25:26,600 Speaker 1: don't need to explicitly be building solely for underrepresented consumers, 462 00:25:26,680 --> 00:25:28,960 Speaker 1: right So, you don't need to be building fintech products 463 00:25:28,960 --> 00:25:31,359 Speaker 1: for Latino families. If you're building a sustainability of climate 464 00:25:31,400 --> 00:25:34,359 Speaker 1: tech startup, that's interesting to us, and we actually want to, 465 00:25:34,520 --> 00:25:37,240 Speaker 1: you know, we want to influence companies to be building 466 00:25:37,440 --> 00:25:39,840 Speaker 1: UM in a way that does benefit underrepresented consumers. Right 467 00:25:39,880 --> 00:25:43,000 Speaker 1: given especially in some space like climate tech UM, you 468 00:25:43,000 --> 00:25:45,080 Speaker 1: know who's gonna be affected by climate change. First is 469 00:25:45,320 --> 00:25:50,000 Speaker 1: people of color, right because of some historical things of that. UM. 470 00:25:50,040 --> 00:25:52,160 Speaker 1: The final you know focus area that we look at 471 00:25:52,320 --> 00:25:57,119 Speaker 1: is founders of all backgrounds, UM, who had a deep 472 00:25:57,160 --> 00:26:00,520 Speaker 1: and authentic commitment to building inclusive organization and the worst 473 00:26:00,520 --> 00:26:04,679 Speaker 1: team so you know your reference, you know Stanford, you know, 474 00:26:04,840 --> 00:26:08,080 Speaker 1: white male Stanford dropout. They actually haven't invested any white 475 00:26:08,080 --> 00:26:12,280 Speaker 1: male Stanford dropouts, were invested in male Stanford business school 476 00:26:12,359 --> 00:26:15,160 Speaker 1: graduates who have you know, who are the most overrepresented 477 00:26:15,240 --> 00:26:18,600 Speaker 1: right like experience that like Amazon, Mackenzie and private equity 478 00:26:18,920 --> 00:26:20,480 Speaker 1: and literally back to the team of three white guys 479 00:26:20,520 --> 00:26:22,840 Speaker 1: coming out of every businit school with that background, right. UM, 480 00:26:23,280 --> 00:26:28,119 Speaker 1: what we're looking for is folks who understand the value 481 00:26:28,160 --> 00:26:31,520 Speaker 1: of diversity to business outcome. So we underwrite for this. 482 00:26:31,760 --> 00:26:34,760 Speaker 1: We we we have many conversations with folks. We have 483 00:26:34,840 --> 00:26:36,960 Speaker 1: to see a demonstration of an understanding of Hey, I 484 00:26:37,000 --> 00:26:39,440 Speaker 1: want to build a diverse team. Not not purely because 485 00:26:39,440 --> 00:26:42,040 Speaker 1: I want to be altruistic. Not purely because you know, 486 00:26:42,080 --> 00:26:44,639 Speaker 1: I'm progressive and I you know, and I and I 487 00:26:44,720 --> 00:26:47,520 Speaker 1: want to you know, see a rainbow coalition. Is because 488 00:26:47,840 --> 00:26:50,320 Speaker 1: I understand my business is going to be better by 489 00:26:50,400 --> 00:26:53,040 Speaker 1: having a diverse team by having the perspectives of a 490 00:26:53,160 --> 00:26:56,560 Speaker 1: diverse group of people working on this problem. Second, we're 491 00:26:56,600 --> 00:27:00,040 Speaker 1: looking for some actual demonstrated commitment of that that it 492 00:27:00,160 --> 00:27:02,040 Speaker 1: look like. You know, we have one founder who has 493 00:27:02,119 --> 00:27:04,880 Speaker 1: explicitly as their third you know, third or fourth hire 494 00:27:05,359 --> 00:27:09,400 Speaker 1: hired a you know, diversity manager from Facebook and said, 495 00:27:09,440 --> 00:27:11,679 Speaker 1: I did that because I want somebody building these programs 496 00:27:11,720 --> 00:27:14,960 Speaker 1: in my company early. And she's gonna lead my HR function. 497 00:27:15,240 --> 00:27:16,880 Speaker 1: But that was important. That's a very it's very tied 498 00:27:16,960 --> 00:27:18,800 Speaker 1: to business. That's very it's a very easy to draw 499 00:27:18,800 --> 00:27:22,359 Speaker 1: a straight line there. We've also got the founder whom 500 00:27:22,680 --> 00:27:25,920 Speaker 1: you know this college thesis and access to a P 501 00:27:26,040 --> 00:27:30,560 Speaker 1: and IV courses for underrepresented students UM. And that was 502 00:27:30,600 --> 00:27:32,199 Speaker 1: how that was how we check that box of right, 503 00:27:32,240 --> 00:27:35,320 Speaker 1: this founder actually cares aboutthentically cares about diversity, has a 504 00:27:35,400 --> 00:27:39,120 Speaker 1: real interest there and understands the importance of it. UM. 505 00:27:40,040 --> 00:27:42,120 Speaker 1: Then the last thing we do is actually reference checks 506 00:27:42,160 --> 00:27:44,000 Speaker 1: this is this is prior to invest in that. Of course, 507 00:27:44,600 --> 00:27:48,640 Speaker 1: where we actually look for inclusive behavior, we look for coachability. 508 00:27:49,359 --> 00:27:50,960 Speaker 1: You know, the way that we're gonna be working with 509 00:27:51,040 --> 00:27:52,760 Speaker 1: these founders, We're gonna ask them to do some things 510 00:27:52,800 --> 00:27:55,600 Speaker 1: that they're not always intuitive and that might make them 511 00:27:55,640 --> 00:27:57,399 Speaker 1: feel like, hey, you're kind of slowing me down a bit. 512 00:27:57,880 --> 00:28:00,840 Speaker 1: If we're saying, all right, you've posted this role. You know, 513 00:28:01,680 --> 00:28:03,560 Speaker 1: the candidates that you're looking at are all folks that 514 00:28:03,560 --> 00:28:06,159 Speaker 1: you've been friends with for for ten years from your 515 00:28:06,200 --> 00:28:09,280 Speaker 1: social networks. Let's go find a couple of interns from 516 00:28:09,320 --> 00:28:11,400 Speaker 1: outside your media network, because that's where you're gonna actually 517 00:28:11,440 --> 00:28:14,680 Speaker 1: find you know, find um, you know, more more, more 518 00:28:15,080 --> 00:28:17,720 Speaker 1: diverse candidates, right um. And so we see that coach 519 00:28:17,760 --> 00:28:20,840 Speaker 1: ability as well. Post investment, we're ensuring that we have 520 00:28:21,080 --> 00:28:24,800 Speaker 1: quarterly touch points with volks um where we're actually you know, 521 00:28:25,080 --> 00:28:28,280 Speaker 1: engaging them with programming that helps them actually walk the 522 00:28:28,320 --> 00:28:31,520 Speaker 1: walk around defining core values in a way that it's inclusive, 523 00:28:32,000 --> 00:28:34,280 Speaker 1: living your actual values in the way that you actually behave, 524 00:28:34,800 --> 00:28:38,800 Speaker 1: and operationalizing that those those values within your company um uh, 525 00:28:39,080 --> 00:28:42,880 Speaker 1: processes and systems. Right. So we don't there's no scorecard 526 00:28:42,920 --> 00:28:44,600 Speaker 1: that we're holding up or not because you're never gonna 527 00:28:44,600 --> 00:28:46,520 Speaker 1: be done. Is it something that's dynamic and you're gonna 528 00:28:46,560 --> 00:28:49,080 Speaker 1: always be working on. But as we onboard companies before 529 00:28:49,080 --> 00:28:51,960 Speaker 1: our portfolio, they understand all the things that we offer, 530 00:28:52,320 --> 00:28:54,960 Speaker 1: and then we are ensuring that monthly and quarterly, we 531 00:28:55,040 --> 00:28:57,600 Speaker 1: are engaging them on these things and then and we're 532 00:28:57,640 --> 00:28:59,280 Speaker 1: using kind of our judgment on what we should mean 533 00:28:59,360 --> 00:29:01,760 Speaker 1: more and we should be and lesson. The thing that's 534 00:29:01,840 --> 00:29:05,000 Speaker 1: that's very exciting for us is I think we've made 535 00:29:05,440 --> 00:29:08,680 Speaker 1: uh it's eight or nine investments in that third focus area. 536 00:29:08,800 --> 00:29:11,240 Speaker 1: So folks who are not under representing themselves want to 537 00:29:11,280 --> 00:29:14,840 Speaker 1: build diverse and inclusive teams um and we have had 538 00:29:14,960 --> 00:29:18,440 Speaker 1: no problem having them, you know, you know, be thirsty 539 00:29:18,520 --> 00:29:20,400 Speaker 1: for the engagement and looking to us for a guidance, 540 00:29:20,480 --> 00:29:22,960 Speaker 1: reaching out to us, and being somewhat demanding in terms 541 00:29:23,000 --> 00:29:25,240 Speaker 1: of what we're offering. So I have an incredible colleague, 542 00:29:25,240 --> 00:29:28,320 Speaker 1: Denies starn All, who leads the coaching of CEO, is 543 00:29:28,320 --> 00:29:32,000 Speaker 1: of another incredible partner, Jason Norman, who's leading the talent 544 00:29:32,400 --> 00:29:36,160 Speaker 1: sourcing for those organizations. But but you know, it hasn't 545 00:29:36,160 --> 00:29:37,760 Speaker 1: been a problem in terms of all the folks accountable 546 00:29:37,760 --> 00:29:41,959 Speaker 1: they wanted. There was in reading your story, I mean, 547 00:29:42,000 --> 00:29:44,600 Speaker 1: you're from the Bay Area, you're investing in the Bay Area, 548 00:29:44,800 --> 00:29:47,400 Speaker 1: and I'm super interested in your take on this because 549 00:29:47,440 --> 00:29:53,920 Speaker 1: as you know that technology development is becoming more geographically dispersed. 550 00:29:54,320 --> 00:29:57,920 Speaker 1: There was m a research theme that came out I 551 00:29:57,920 --> 00:29:59,520 Speaker 1: think it was a quz a couple of days ago, 552 00:30:00,280 --> 00:30:03,080 Speaker 1: and UM, a VC friend of mine had posted it 553 00:30:03,120 --> 00:30:05,440 Speaker 1: on Twitter and they was talking about how the change 554 00:30:05,480 --> 00:30:08,400 Speaker 1: in the number of tech workers, like where they're moving to, 555 00:30:08,680 --> 00:30:12,560 Speaker 1: and like San Francisco was like the last place losing population, 556 00:30:13,280 --> 00:30:18,760 Speaker 1: and like places like Miami, Atlanta, Houston are severely increasing 557 00:30:18,920 --> 00:30:22,200 Speaker 1: and where tech workers are moving. What does that mean 558 00:30:22,320 --> 00:30:25,960 Speaker 1: to you from both an investor's perspective, somebody who's investing 559 00:30:26,000 --> 00:30:28,800 Speaker 1: in Silicon Valley and as a man who wants to 560 00:30:28,840 --> 00:30:32,160 Speaker 1: see more black people in this business taking advantage as 561 00:30:32,200 --> 00:30:36,160 Speaker 1: well the generation opportunity. When we when we stood up 562 00:30:36,200 --> 00:30:39,080 Speaker 1: our firm, you know, we knew you would get access 563 00:30:39,160 --> 00:30:42,120 Speaker 1: to great deals because of who our LPs are, the 564 00:30:42,240 --> 00:30:45,720 Speaker 1: network that we've built over over decades, UM, you know, 565 00:30:45,840 --> 00:30:50,360 Speaker 1: working working in this in this uh, this geographic location. UM. 566 00:30:50,920 --> 00:30:55,320 Speaker 1: But we also realized that, um, you know, leveraging and 567 00:30:55,400 --> 00:30:58,600 Speaker 1: Silicon Valley network to find under represented talent is not 568 00:30:58,760 --> 00:31:02,320 Speaker 1: going to gonna work. Um, just because of the way 569 00:31:02,360 --> 00:31:04,520 Speaker 1: the networks work and the homois never was gonna beget 570 00:31:04,560 --> 00:31:08,040 Speaker 1: a homogeneous network. Right, so we explicitly built a scout 571 00:31:08,080 --> 00:31:10,640 Speaker 1: program UM that we are actually not a lot of 572 00:31:10,680 --> 00:31:12,840 Speaker 1: calls scout program. We called it an ambassador program to 573 00:31:13,080 --> 00:31:15,640 Speaker 1: do the our lawyers gave us that guidance where we 574 00:31:15,760 --> 00:31:19,240 Speaker 1: found folks outside of the Bay in places like Chicago 575 00:31:19,480 --> 00:31:22,680 Speaker 1: and St. Louis and you know, uh in New York, 576 00:31:22,800 --> 00:31:26,960 Speaker 1: in Texas and and uh in d c UM. And 577 00:31:27,640 --> 00:31:29,360 Speaker 1: you know, these are folks who are already plugged into 578 00:31:29,400 --> 00:31:31,520 Speaker 1: tech and venture in those areas, but they weren't attached 579 00:31:31,560 --> 00:31:34,560 Speaker 1: to firms UM. And we gave them kind of the 580 00:31:34,760 --> 00:31:37,160 Speaker 1: you know, the title of an ambassador and gave him 581 00:31:37,200 --> 00:31:40,840 Speaker 1: some training UM. And they sent us deals. And I 582 00:31:40,960 --> 00:31:44,160 Speaker 1: think a combination of that UM and needed this for 583 00:31:44,240 --> 00:31:46,120 Speaker 1: the purpose of finding, you know, a more diverse set 584 00:31:46,160 --> 00:31:50,760 Speaker 1: of to invest in UM. A comment of that plus 585 00:31:51,160 --> 00:31:54,120 Speaker 1: you know, four months into the life of our firm, 586 00:31:55,000 --> 00:31:58,280 Speaker 1: you know, shelter in place happening UM as of our 587 00:31:58,400 --> 00:32:02,840 Speaker 1: last then the last quarter over of our portfolios outside 588 00:32:02,840 --> 00:32:05,720 Speaker 1: of the Bay area. And uh so I think I 589 00:32:05,880 --> 00:32:08,880 Speaker 1: mention of zoom meetings plus the effectiveness of this ambassador 590 00:32:08,960 --> 00:32:11,480 Speaker 1: network once we have some exciting things happening with that 591 00:32:11,600 --> 00:32:13,960 Speaker 1: that I you know that I I will share with 592 00:32:14,040 --> 00:32:17,040 Speaker 1: you first once we're once we're ready to announce it. 593 00:32:17,600 --> 00:32:19,760 Speaker 1: Um So, we haven't had a problem. I think we 594 00:32:19,800 --> 00:32:22,040 Speaker 1: actually are to most recent investments are ones in Menlo 595 00:32:22,160 --> 00:32:25,120 Speaker 1: parking ones in San Francisco, so that number will take 596 00:32:25,200 --> 00:32:29,080 Speaker 1: down a bit, still overwhelmingly spread across the country, and 597 00:32:29,320 --> 00:32:31,960 Speaker 1: I think that speaks to the point that you know, 598 00:32:32,080 --> 00:32:35,360 Speaker 1: talent is everywhere. I think, um because of the the 599 00:32:35,800 --> 00:32:39,400 Speaker 1: acceleration technology and do innovations and technology. It's also cheaper 600 00:32:39,880 --> 00:32:41,720 Speaker 1: and you're able to do things outside of the Bay 601 00:32:41,760 --> 00:32:44,440 Speaker 1: that you've never been able to do. UM So I 602 00:32:44,520 --> 00:32:46,160 Speaker 1: think we gotta keep you know, if we're only looking 603 00:32:46,200 --> 00:32:48,560 Speaker 1: in Silicon Valley, we're not gonna find, you know, those 604 00:32:48,600 --> 00:32:50,840 Speaker 1: overlooked founders that we're looking for. We're not going to 605 00:32:50,920 --> 00:32:53,720 Speaker 1: find the deal that should be more competitive than it is. 606 00:32:53,840 --> 00:32:56,240 Speaker 1: But because where this geographically, we're able to get into 607 00:32:56,360 --> 00:32:58,440 Speaker 1: a price that we like and really make a difference 608 00:32:58,480 --> 00:33:00,960 Speaker 1: for that founder. Um So, it's so it's imperative that 609 00:33:00,960 --> 00:33:03,280 Speaker 1: we're looking outside of the bad you know you had 610 00:33:03,440 --> 00:33:07,480 Speaker 1: touched on just really briefly, that you're not specifically looking 611 00:33:07,560 --> 00:33:11,000 Speaker 1: for technology or products or businesses that are trying to 612 00:33:11,080 --> 00:33:14,760 Speaker 1: build four black audiences, but maybe leverage the diversity, the 613 00:33:15,000 --> 00:33:18,280 Speaker 1: conversation that we bring, the perspective that we bring. And 614 00:33:18,320 --> 00:33:21,160 Speaker 1: I wonder because there's so many times when when we 615 00:33:21,320 --> 00:33:24,400 Speaker 1: build companies, we get pigeonholed into are you building you know, 616 00:33:24,960 --> 00:33:27,680 Speaker 1: the next hair care company? And that's okay, but we 617 00:33:27,760 --> 00:33:32,440 Speaker 1: get pigeonholed into these verticals. I wonder, from your perspective 618 00:33:32,480 --> 00:33:35,440 Speaker 1: as a VC and somebody who's seen innovation happen, you know, 619 00:33:35,600 --> 00:33:38,400 Speaker 1: faster than most people because of the where you grew up, 620 00:33:39,040 --> 00:33:43,840 Speaker 1: I wonder if you see where the black perspective could 621 00:33:43,920 --> 00:33:50,080 Speaker 1: be more amplified in enterprise, startup, you know, development in 622 00:33:50,720 --> 00:33:53,320 Speaker 1: sectors that are not traditionally black, but where we could 623 00:33:53,360 --> 00:33:59,320 Speaker 1: have a unique value proposition to play in. I think 624 00:33:59,360 --> 00:34:01,280 Speaker 1: it's every set there. I think there's there's some words, 625 00:34:01,440 --> 00:34:05,920 Speaker 1: it's explicit. Um. You know, health tech, you should definitely 626 00:34:06,000 --> 00:34:09,359 Speaker 1: be leading in there. I think, you know, uh, black 627 00:34:09,400 --> 00:34:13,320 Speaker 1: and brown and women's health has been underinvested in and 628 00:34:13,440 --> 00:34:16,320 Speaker 1: there has been a lack of focus there. Um. So 629 00:34:16,560 --> 00:34:18,600 Speaker 1: I think that that's a very obvious one, right even 630 00:34:19,560 --> 00:34:21,840 Speaker 1: you know, one of our early investments was in a 631 00:34:21,920 --> 00:34:28,359 Speaker 1: company that UM that was focused on you know, they're 632 00:34:28,400 --> 00:34:31,960 Speaker 1: optimizing birth controls, So they're helping women find the right 633 00:34:32,040 --> 00:34:35,399 Speaker 1: birth control through a DNA UM and hormonal test at 634 00:34:35,400 --> 00:34:37,960 Speaker 1: home test that you would do M. But the broader 635 00:34:38,080 --> 00:34:40,960 Speaker 1: vision is to use the data is being collected to 636 00:34:41,040 --> 00:34:44,239 Speaker 1: actually to build more diverse and inclusive data sets that 637 00:34:44,280 --> 00:34:48,000 Speaker 1: can be used to drive healthcare solutions. UM. Just because 638 00:34:48,520 --> 00:34:52,480 Speaker 1: most clinical trials and most most healthcare studies historically have 639 00:34:52,840 --> 00:34:57,960 Speaker 1: been over index two white men and women. Until there's 640 00:34:58,000 --> 00:35:00,960 Speaker 1: all these there's all this data that's just as missing 641 00:35:01,160 --> 00:35:04,200 Speaker 1: for for folks who don't fall into that category. And 642 00:35:04,280 --> 00:35:06,600 Speaker 1: so there's that's really important for us to be building 643 00:35:06,640 --> 00:35:09,960 Speaker 1: in that space, UM and to be influencing that space 644 00:35:10,080 --> 00:35:12,799 Speaker 1: just really it's important to our lives, right. UM. Then 645 00:35:12,840 --> 00:35:18,439 Speaker 1: there's other you know spaces like fintech and and where 646 00:35:18,520 --> 00:35:20,160 Speaker 1: where it's also kind of a straight line that you 647 00:35:20,200 --> 00:35:22,920 Speaker 1: can draw there. But really I think every sector, man like, 648 00:35:23,040 --> 00:35:27,239 Speaker 1: there's you know, life experience and forms, expertise and and 649 00:35:27,680 --> 00:35:31,080 Speaker 1: and outlook, and the more perspectives even in the room 650 00:35:31,120 --> 00:35:33,480 Speaker 1: that are not the same, the better that the more 651 00:35:33,520 --> 00:35:35,319 Speaker 1: magic is gonna happen in the better outcomes. In their half, 652 00:35:35,360 --> 00:35:37,080 Speaker 1: so I can't you know. I wouldn't limit it to 653 00:35:37,160 --> 00:35:40,320 Speaker 1: one sector. I think every sector, from health tech and 654 00:35:40,400 --> 00:35:44,760 Speaker 1: and tech to enterprise tech UM could use the worst perspectives, 655 00:35:44,760 --> 00:35:47,840 Speaker 1: and I'm interested in between UM diversity and all the ways. 656 00:36:00,800 --> 00:36:02,759 Speaker 1: Black Tech Green Money is a production the Black of 657 00:36:02,800 --> 00:36:05,680 Speaker 1: the Afro Tech on the Black Effect podcast Network and 658 00:36:05,760 --> 00:36:08,840 Speaker 1: I Heeart Media. It's produced by Morgan Davon and me 659 00:36:09,280 --> 00:36:12,480 Speaker 1: Well Lucas, with additional production support by Love Beach and 660 00:36:12,560 --> 00:36:16,680 Speaker 1: me Risa Lewis. Special thank you to Michael Davis, Adam Sims, 661 00:36:16,719 --> 00:36:19,000 Speaker 1: and the car Savon Jan you know like the wine. 662 00:36:19,480 --> 00:36:22,520 Speaker 1: Yes that's his real name. Learn more about my guests 663 00:36:22,520 --> 00:36:25,399 Speaker 1: and other technistuff that's innovated to afro tech dot com. 664 00:36:25,680 --> 00:36:27,960 Speaker 1: The video version of this episode we'll drop to Black 665 00:36:28,000 --> 00:36:30,279 Speaker 1: Tech Green Money on YouTube next week. It's so tap 666 00:36:30,440 --> 00:36:34,080 Speaker 1: in enjoying Black Tech Green Money. Leave us a five 667 00:36:34,120 --> 00:36:39,600 Speaker 1: star rating on iTunes. Go get your money, Piece of Love.