WEBVTT - Midwest Tech and Missed Opportunities with Candice Matthews Brackeen 0:00:00.080 --> 0:00:02.360 Season two of the Black Tech, Green Money podcast is 0:00:02.400 --> 0:00:05.640 brought to you by Lexus, who's been celebrating driveway moments 0:00:05.760 --> 0:00:08.320 for over thirty years with the Lexus December to Remember 0:00:08.360 --> 0:00:11.040 Sales event, when you can find exclusive offers on the 0:00:11.080 --> 0:00:15.319 most popular Lexus models. Experience Amazing at You Alexis Dealer 0:00:18.200 --> 0:00:24.759 afro Tech World. Charles Hudson, Managing partner at Precursor Ventures, 0:00:24.920 --> 0:00:28.520 is being interviewed by Isa Watson, founder and CEO at Squad, 0:00:28.880 --> 0:00:31.720 a VC backed software company that helps people build their 0:00:31.720 --> 0:00:36.400 real life friendships and communities on the virtual stage. Charles 0:00:36.479 --> 0:00:38.800 sets some light on how he picks the founders, not 0:00:39.000 --> 0:00:42.560 the companies he invests in. If I think about most 0:00:42.560 --> 0:00:45.040 of the people we're back though, it really is some 0:00:45.200 --> 0:00:49.920 combination of the clarity of purpose around what they're building. 0:00:49.960 --> 0:00:51.680 You know, most of the companies we invest in, they 0:00:51.680 --> 0:00:53.960 don't have a ton of data or attraction. There's no 0:00:54.080 --> 0:00:57.680 products to touch a feel. In most cases, if I'm 0:00:57.680 --> 0:00:59.920 trying to assess as the person sitting across from me, 0:01:00.720 --> 0:01:03.000 as they really thought deeply about the problem and trying 0:01:03.040 --> 0:01:04.880 to solve until they have a thesis on how to 0:01:04.880 --> 0:01:07.039 solve it, that I think is going to play out 0:01:07.080 --> 0:01:09.400 well over the next five seven years. That's a big 0:01:09.400 --> 0:01:12.640 part of it. The second piece, though, that's related, is 0:01:12.680 --> 0:01:15.759 do I think that the founder has capacity for tremendous 0:01:15.760 --> 0:01:19.840 personal growth as a leader. And it's super subjective and like. 0:01:19.920 --> 0:01:21.360 Part of what I'm looking for is people that I 0:01:21.400 --> 0:01:24.720 think the process of running and building a company is 0:01:24.720 --> 0:01:26.600 going to bring the best out of them. They have 0:01:26.680 --> 0:01:28.800 the work ethic, they have to drive, they have the focus, 0:01:28.840 --> 0:01:32.080 but they also have areas um where they can grow 0:01:32.120 --> 0:01:34.080 and develop as a leader and where a startup is 0:01:34.080 --> 0:01:36.119 going to really put them in a position to do that. 0:01:36.240 --> 0:01:38.840 And generally speaking, when I see that that's what we're 0:01:38.840 --> 0:01:42.000 looking for. It's less about, you know, the market or 0:01:42.080 --> 0:01:45.559 the space and attraction. That's really more about how how 0:01:45.640 --> 0:01:47.920 much the founders thought about the problem and the clarity 0:01:47.920 --> 0:01:52.440 they have around the solution. I'm Will Lucas and this 0:01:52.640 --> 0:01:55.880 is Black Tech, Green Money. I'm gonna introduce you some 0:01:55.920 --> 0:01:58.320 of the biggest names, some of the brightest minds and 0:01:58.480 --> 0:02:01.720 brilliant ideas. If your black and building or simply using 0:02:01.720 --> 0:02:04.520 cut to secure your bag, this podcast is for you. 0:02:09.760 --> 0:02:13.200 Candice Matthews Brokine is the founder and CEO of Lightship Capital, 0:02:13.280 --> 0:02:17.200 the Cincinnati Bays portfolio service firm including accelerators Hillman and 0:02:17.280 --> 0:02:20.760 New Meat, an adventure capital fund Lightship where she serves 0:02:20.760 --> 0:02:25.920 as managing partner. Lightship Companies work together in support of underrepresented, 0:02:25.960 --> 0:02:30.640 early stage transformational businesses. Candice has a huge focus on 0:02:30.720 --> 0:02:34.400 investing in the Midwest. Her own statements where other investors 0:02:34.480 --> 0:02:38.480 he fly over country, She's he's a gold mine. I aska, 0:02:38.560 --> 0:02:42.640 why then other vcs aren't paying attention to the Midwest opportunity? 0:02:43.240 --> 0:02:48.800 Quite certain? Why we are overlooked. I think it's really, um, 0:02:48.840 --> 0:02:53.560 A bit of it is just not doing the work right. 0:02:53.639 --> 0:02:57.040 So um. You know, there was kind of an uproar 0:02:57.160 --> 0:03:00.560 on the internet off the CEO of Wells Fargo UM 0:03:00.560 --> 0:03:05.760 saying that they've had a very limited pool of black 0:03:05.840 --> 0:03:11.000 talent um to kind of draw from. That's just lazy, right, 0:03:11.080 --> 0:03:14.320 So the Midwest is considered a fly over country, so 0:03:14.400 --> 0:03:17.760 folks are flying from San Francisco to New York or 0:03:18.040 --> 0:03:22.120 San Francisco to Boston to look for deals. Now, of course, 0:03:22.240 --> 0:03:24.800 are there a lot of great deals in those areas? Sure, 0:03:24.960 --> 0:03:30.480 because UM exits bring more activity, you get more mentors, 0:03:30.520 --> 0:03:33.000 you have more dollars, so all of those things spin 0:03:33.160 --> 0:03:37.040 up UM. But there are also great corporations that have 0:03:37.120 --> 0:03:41.600 been built in the Midwest. You've got Eli Lily in Indiana. 0:03:41.720 --> 0:03:44.680 You've got Procter and Gamble in Ohio. You've got in 0:03:44.760 --> 0:03:49.640 Michigan Quicken and Rocket Like. You've got some amazing organizations 0:03:49.680 --> 0:03:53.800 throughout the Midwest where there's incredible you know kind of 0:03:53.800 --> 0:03:57.720 like minds share and talent UM. So so why fly 0:03:57.840 --> 0:04:01.960 over here when we have in credible talent here and 0:04:02.040 --> 0:04:05.400 so we're just we're fishing from upon that no one's 0:04:05.440 --> 0:04:10.480 interested in fishing it and we're taking advantage of incredible deals. Yeah. 0:04:10.600 --> 0:04:14.160 And part of going back to you know, your your 0:04:14.320 --> 0:04:17.719 bio which I read, and you've impacted state, local policy. 0:04:18.839 --> 0:04:22.320 Part of the issues that happened in these communities is 0:04:22.360 --> 0:04:25.479 the eco systems are broken. The things around the spirit 0:04:25.520 --> 0:04:28.680 of entrepreneurship that go to support it, local gain, local government, 0:04:29.040 --> 0:04:33.920 university UM. Again, those big organizations, they're not UM working 0:04:33.960 --> 0:04:38.960 together for that entrepreneurial community. You didn't have that feeling 0:04:38.960 --> 0:04:41.599 of powerlessness to not being able to change it, but 0:04:41.720 --> 0:04:45.200 many people do. What is it UM that you did 0:04:45.320 --> 0:04:50.360 as those initial steps to be able to impact that ecosystem? 0:04:50.440 --> 0:04:52.720 Sold that these people can come to the table and 0:04:52.760 --> 0:04:58.279 work for the betterment of entrepreneurs. You know, I think 0:04:58.279 --> 0:05:02.760 I just didn't know any better. Um. So, I mean 0:05:02.800 --> 0:05:04.920 I've always been taught from a young age, like stick 0:05:05.000 --> 0:05:10.080 up for yourself, Um, you know, let people hear your voice. 0:05:10.520 --> 0:05:14.359 Don't take no for an answer. Um. You know, I 0:05:14.360 --> 0:05:18.400 think we all walked uphill in both directions with you know, 0:05:19.040 --> 0:05:21.480 poor bad shoes in the snow. Like, you know, it 0:05:21.560 --> 0:05:24.000 was just kind of raised from a humble upbringing. And 0:05:24.040 --> 0:05:28.440 so like I've always gotten what I've what I've needed 0:05:28.440 --> 0:05:31.320 and wanted because I asked for it, I worked for it. 0:05:31.720 --> 0:05:36.279 So as I've been building an ecosystem here and continue 0:05:36.320 --> 0:05:40.040 to kind of attempt to build additional ecosystems elsewhere, it's 0:05:40.120 --> 0:05:44.440 just a matter of having hard conversations with lots of 0:05:44.480 --> 0:05:49.120 different people. Um. It's just it's not been easy work, 0:05:49.400 --> 0:05:53.520 but it's been consistent. So I'm consistently going and knocking 0:05:53.560 --> 0:05:56.840 on doors and then if they're not open, like I 0:05:56.920 --> 0:05:59.320 opened it a little bit and then we have a conversation. 0:05:59.360 --> 0:06:03.440 So it's just been a continuous process process, and and 0:06:03.520 --> 0:06:05.920 part of that kind of affecting, um, you know, kind 0:06:05.920 --> 0:06:09.040 of legislation and law. It's it's really just starting with 0:06:09.400 --> 0:06:13.040 a conversation with someone in an office and then introduces 0:06:13.080 --> 0:06:15.400 you to someone else and you tell them that story. 0:06:15.520 --> 0:06:20.839 So it's just been consistent storytelling of these Um, it's 0:06:20.839 --> 0:06:25.040 been consistent storytelling and sharing the data around the issues, 0:06:25.880 --> 0:06:28.880 and um, you know, it got us to this point 0:06:29.000 --> 0:06:32.839 and now the entire world is looking at these issues 0:06:32.920 --> 0:06:35.600 with a with a greater lens. We were all though 0:06:35.640 --> 0:06:39.640 doing this work previously when you talked about, you know, 0:06:39.720 --> 0:06:42.000 sharing data around the issues, and so many of these 0:06:42.040 --> 0:06:44.440 communities that data is not available, so it may be 0:06:44.560 --> 0:06:48.000 anecdotal early. Um, how do you how do you make 0:06:48.040 --> 0:06:53.479 that case when it is anecdotal? You just search for 0:06:53.680 --> 0:06:58.760 either you you create your own research and that's where 0:06:59.400 --> 0:07:01.280 that's where all out of our work, as you know, 0:07:01.480 --> 0:07:06.760 will happen in Ohio. Right Like it was anecdotal, Um, 0:07:06.800 --> 0:07:10.840 it was qualitative, and so we felt the problems, but 0:07:10.920 --> 0:07:13.240 we didn't we didn't necessarily and we knew how to 0:07:13.280 --> 0:07:16.520 verbalize it. But folks just don't listen to anything other 0:07:16.560 --> 0:07:19.760 than data. Right. So, UM, you know, part of the 0:07:19.760 --> 0:07:21.680 work that we did here in Sincy and throughout the 0:07:21.680 --> 0:07:25.680 state of Ohio was that Minority Entrepreneurship Connectivity Assessment, which 0:07:25.720 --> 0:07:28.040 was really like taking a deep dive into our tech 0:07:28.120 --> 0:07:31.800 ecosystems throughout the state and figuring out, Um, you know, 0:07:31.840 --> 0:07:33.960 while we are a super diverse state, we are not 0:07:34.000 --> 0:07:37.400 all that inclusive or equitable with our dollars. And so 0:07:37.520 --> 0:07:41.000 once you bring that to life for people, they really 0:07:41.040 --> 0:07:45.480 get it, right, um, at least they get it a 0:07:45.480 --> 0:07:50.400 little bit. Now, do we still have issues in society, absolutely, um, 0:07:50.440 --> 0:07:53.400 But we are tackling this one particular area. So I 0:07:53.520 --> 0:07:57.400 just really believe that it's consistency. It's also just creating 0:07:57.440 --> 0:08:01.160 things that don't exist, um, and spending the time to 0:08:01.200 --> 0:08:03.840 do it. There's nothing like a survey, right. You can 0:08:03.840 --> 0:08:07.040 Google form yourself into anything, um and send it to 0:08:07.080 --> 0:08:08.640 a whole bunch of friends. You can get a ton 0:08:08.680 --> 0:08:11.880 of information. We could do a survey for the entire 0:08:11.920 --> 0:08:15.400 Midwest based on our our inboxes and using the context 0:08:15.440 --> 0:08:18.920 that we have and really, you know, really form something big. 0:08:19.200 --> 0:08:21.920 That's how Project Diane Dot started. That's like how lots 0:08:21.920 --> 0:08:25.960 of other things got started. I love that. Um. I've 0:08:26.000 --> 0:08:28.800 written this blog post that I have published LinkedIn several 0:08:28.880 --> 0:08:30.800 years back, and it kind of caught fire put me 0:08:30.800 --> 0:08:32.240 on the radar of a lot of people, and it 0:08:32.360 --> 0:08:36.160 was titled, Hay Startups, you don't live a Silicon Valley. 0:08:36.360 --> 0:08:39.200 And part of the issue was a lot of at 0:08:39.240 --> 0:08:41.560 least at that time, a lot of the insight in 0:08:42.320 --> 0:08:44.600 education on how to build a startup and how to 0:08:44.640 --> 0:08:47.280 get funded was coming out of Silicon Valley. It wasn't 0:08:47.280 --> 0:08:50.560 coming from other places, right, And what I learned was 0:08:50.800 --> 0:08:54.520 a lot of that stuff doesn't work outside of Silicon Valley, right. 0:08:54.520 --> 0:08:58.400 And So, what is the difference in your mind, from 0:08:58.400 --> 0:09:01.120 a couple of different angles, from you know, being an entrepreneur, 0:09:01.200 --> 0:09:04.120 which you are an entrepreneur, from being an investor today 0:09:04.200 --> 0:09:07.439 to somebody who's just worked in the machine to make 0:09:07.480 --> 0:09:12.840 things happen. What's the difference that people probably too often 0:09:12.960 --> 0:09:17.280 overlook about, um, the insights they get from the Silicon 0:09:17.360 --> 0:09:22.720 Valley or traditional known notable tech hubs, tech ecosystems versus 0:09:22.960 --> 0:09:26.280 nascent ones ones that are growing, you know, so and 0:09:26.679 --> 0:09:31.040 be having fund I'm finding other investors to invest in me, 0:09:31.520 --> 0:09:36.880 and it's a it's a huge interview process. So, um, 0:09:36.920 --> 0:09:38.760 if somebody has given you a million dollars, let me 0:09:38.760 --> 0:09:42.240 tell you the interview process is like rough. There's a 0:09:42.320 --> 0:09:46.680 background check, criminal and and personal, and they're they're checking 0:09:46.760 --> 0:09:51.080 every single thing. But through these conversations, many of our 0:09:51.200 --> 0:09:54.679 our LPs are limited partners and the fund are investors 0:09:54.760 --> 0:09:58.280 from the coasts, and they ask us lots of questions 0:09:58.320 --> 0:10:00.800 about like, so, how much money you're getting put in 0:10:00.880 --> 0:10:03.880 this company and what percentage of ownership are you going 0:10:03.920 --> 0:10:09.679 to get and and we're explaining to them Midwest valuations 0:10:10.840 --> 0:10:13.440 and we're explaining to them how much money I have 0:10:13.559 --> 0:10:17.680 to put in to get a meaningful amount of ownership percentage. 0:10:18.240 --> 0:10:20.680 And you know, at first we were letting them know, Okay, 0:10:20.679 --> 0:10:22.720 we're putting in this much, and they're like, there's no 0:10:22.840 --> 0:10:26.079 way you can get ownership percentage with that amount of money. 0:10:26.400 --> 0:10:32.520 And I'm like, folks, did West valuations, Like I don't 0:10:32.520 --> 0:10:34.319 know what you guys are out there doing, but like 0:10:34.559 --> 0:10:38.320 we don't start million dollars. We started like five to eight, 0:10:38.720 --> 0:10:41.839 So like, I'm right there doing something way different. So 0:10:42.200 --> 0:10:44.920 they can't even wrap their minds around the fact that 0:10:45.000 --> 0:10:49.679 like a company that's generating revenue right in market, has 0:10:49.720 --> 0:10:51.600 been in the market for a few years, is making 0:10:51.640 --> 0:10:54.680 a few million dollars a year, like still has like 0:10:54.679 --> 0:10:58.160 an eight million dollar valuation. They just can't. They just 0:10:58.280 --> 0:11:01.600 don't get it. So they struggle in that aspect. They 0:11:01.640 --> 0:11:05.080 struggle with the fact that, like Midwesterners love to help 0:11:05.120 --> 0:11:10.839 each other. Like I could text some people pretty high 0:11:10.920 --> 0:11:15.400 up at lots of corporations that are like fortune one hundreds, 0:11:16.600 --> 0:11:18.760 and that's just because all of those people are like 0:11:18.880 --> 0:11:21.920 just really down to like get it moving for their 0:11:21.960 --> 0:11:24.800 city or their state. And so I think that that's 0:11:24.840 --> 0:11:28.480 what they overlook. They overlook the fact that we're all 0:11:28.520 --> 0:11:35.200 connected and that we genuinely have care for what we do. UM. Yeah, 0:11:35.200 --> 0:11:38.600 there's there's all sorts of differences between but like and 0:11:38.640 --> 0:11:42.679 they also fight for deals. Do we fight for deals 0:11:42.720 --> 0:11:45.800 in mid West? There just aren't enough funds right for 0:11:45.880 --> 0:11:48.360 us to fight against each other. So there's just there's 0:11:48.400 --> 0:11:51.800 just a difference in the way they do things out there. 0:11:52.880 --> 0:11:57.160 I'm glad you you talked about the stage at which 0:11:57.200 --> 0:12:01.319 you come in because I get interested in I remember 0:12:01.400 --> 0:12:03.800 listening to you do an interview where you talked about, 0:12:03.800 --> 0:12:05.959 you know, you've had you have very little room for error, 0:12:06.000 --> 0:12:09.760 and that's why you don't invest super early on. UM 0:12:09.960 --> 0:12:13.719 talked about that here, like why can't a fund by 0:12:13.760 --> 0:12:16.440 a black woman the biggest one in the middle, you know, 0:12:16.640 --> 0:12:21.360 period first fund? Why can't you write checks super early 0:12:21.400 --> 0:12:24.440 in the company? Be just because you believe? Yeah, I 0:12:24.640 --> 0:12:29.800 have to show my investors the path to exit. So 0:12:29.960 --> 0:12:34.960 if it's hard to show the path to exit on 0:12:35.080 --> 0:12:39.760 a dream right, um do I have talked to some 0:12:40.080 --> 0:12:49.560 amazing founders, um and before delaying Parnell like what he 0:12:49.760 --> 0:12:52.679 is now with play versus like I saw that at 0:12:52.679 --> 0:12:57.920 the dream stage, right and you know, as an investment committee, 0:12:57.920 --> 0:13:00.480 now I wanted to invest right there. It could not 0:13:00.520 --> 0:13:03.319 get me wrong, But like the entire committee was not interested, 0:13:03.440 --> 0:13:07.640 right because it was just too early. Unfortunately, I have 0:13:07.840 --> 0:13:11.240 to return at least half of the fund on every 0:13:11.280 --> 0:13:13.920 single investment. So let me break this down for you. 0:13:14.280 --> 0:13:17.200 So it's a fifty million dollar fund. Half the fund 0:13:17.240 --> 0:13:21.200 is twenty five million dollars. If I own ten percent 0:13:21.240 --> 0:13:24.360 of a company. This is just like rough Man, I 0:13:24.400 --> 0:13:26.520 owned ten percent of the company and it exists for 0:13:26.559 --> 0:13:30.920 two fifty million dollars. I've returned half of the fund. 0:13:31.800 --> 0:13:35.199 It's really difficult to do that on an idea. How 0:13:35.240 --> 0:13:38.920 do I quantify that on this paperwork that's going to 0:13:39.000 --> 0:13:41.960 go to LPs that have put in a million dollars 0:13:42.040 --> 0:13:47.720 or more. So that's why Also I like you, like 0:13:47.800 --> 0:13:52.000 we've talked like, I have the weight of the world 0:13:52.720 --> 0:13:55.400 on my shoulders, and I feel that it is my 0:13:55.640 --> 0:14:03.400 responsibility to deliver a win. I really do feel that way. So, UM, 0:14:03.520 --> 0:14:05.959 we are trying to get the best mix of black 0:14:06.000 --> 0:14:09.600 and brown founders and maybe fun too, we can invest earlier. 0:14:10.280 --> 0:14:13.320 Maybe the folks that come to our pipeline are getting 0:14:13.360 --> 0:14:16.320 investments from angel investors in our network, and we will 0:14:16.360 --> 0:14:19.280 work really hard for that. Um. But just in this 0:14:19.400 --> 0:14:23.120 fun one, I could not and I hate that. Sometimes 0:14:24.480 --> 0:14:29.880 what what has to happen so that or perhaps there's 0:14:29.880 --> 0:14:31.880 got to be more canvases, But what has to happen 0:14:31.920 --> 0:14:36.560 so that candices can make early her bets? We just 0:14:36.680 --> 0:14:40.360 we need um, we need more fun managers. No matter what. 0:14:40.440 --> 0:14:45.280 There are folks making earlier bets. UM. So precursor ventures, 0:14:45.280 --> 0:14:49.240 they make earlier bets right now. They invest in all founders. 0:14:49.360 --> 0:14:53.360 Is not just um, women and people of color. UM, 0:14:53.400 --> 0:14:57.120 But they make earlier bets. UM. I believe Richard Kirby 0:14:57.160 --> 0:15:00.760 over an equal makes earlier bets. UM. Just I know 0:15:00.840 --> 0:15:06.080 for sure moniqu water makes some earlier bets. Um. But again, um, 0:15:06.120 --> 0:15:09.160 they're I think they're just has to be more of us. 0:15:09.600 --> 0:15:14.000 I think for many years the angel community, Angel investment 0:15:14.040 --> 0:15:18.840 community got burned, right, not by black founders in particular, 0:15:18.880 --> 0:15:21.920 but kind of like all founders. Um. And I think 0:15:21.920 --> 0:15:24.440 we just have to get a resurgence of new people 0:15:24.520 --> 0:15:30.800 angel investing and being educated. Um for earlier bets to 0:15:30.880 --> 0:15:34.200 take place. But it's been it's been difficult to do 0:15:34.360 --> 0:15:38.920 kind of precede precede venture funding. Um, it's a difficult 0:15:38.960 --> 0:15:57.080 space to fund kind of no matter what. Season two 0:15:57.080 --> 0:15:59.240 in the Black Tat Dream Money podcast is brought to 0:15:59.280 --> 0:16:02.560 you by Lexus, known for celebrating driveway moments for over 0:16:02.640 --> 0:16:05.920 thirty years, Lexus invites you to create more with exclusive 0:16:05.920 --> 0:16:08.720 offers on the most popular Lexus models. At the December 0:16:08.720 --> 0:16:12.840 to Remember Sales event experience Amazing at You. Alexis Dealing 0:16:14.600 --> 0:16:16.880 Canada set out to raise twenty million dollars for a 0:16:16.960 --> 0:16:20.560 first fund at Lightship. In the end, she became the 0:16:20.560 --> 0:16:22.680 first black woman to raise as much as she did 0:16:22.680 --> 0:16:27.520 at her first go, clearing fifty million dollars during a 0:16:27.600 --> 0:16:31.760 global pandemic. So how does that kind of overshot happen 0:16:32.880 --> 0:16:35.520 Canadas speak soon it okay, So like, I'll take it 0:16:35.520 --> 0:16:40.560 away way back. So um, my co founders of Hilman, 0:16:40.920 --> 0:16:43.320 we originally were like, we're gonna raise just like a 0:16:43.360 --> 0:16:46.160 million dollar micro fund. It's going to invest in these 0:16:46.200 --> 0:16:50.560 Hillman companies. Cool that we raised it, great, And so 0:16:51.320 --> 0:16:54.760 then when Brian and I decided to raise this fund, 0:16:55.560 --> 0:16:57.560 you know, originally we're sitting down with our mentors and 0:16:57.600 --> 0:17:00.840 we're like, okay, ten million dollar fund. Our mentors were 0:17:00.920 --> 0:17:04.720 like ten million dollar fun? Do you know how that works? 0:17:04.760 --> 0:17:08.080 Let's talk about the logistics and like management fee on 0:17:08.160 --> 0:17:10.640 ten million dollars and how you're that's just not gonna work. 0:17:10.680 --> 0:17:13.000 They're like twenty million dollars. I look at Brian, I'm like, 0:17:13.119 --> 0:17:18.520 twenty million dollars. That's not gonna happen, right Like. And 0:17:18.560 --> 0:17:22.919 then we started socializing the idea and in February we 0:17:23.000 --> 0:17:25.679 got our first investment, and so I'm like, oh, this 0:17:25.760 --> 0:17:27.760 is gonna go down. And then by March we had 0:17:27.800 --> 0:17:31.959 raised fifteen of the twenty million dollars and so I'm like, okay, 0:17:32.000 --> 0:17:35.840 this is good. And then Covid hit um and I thought, 0:17:35.840 --> 0:17:38.040 of course this thing is gonna this is gonna shut 0:17:38.080 --> 0:17:40.520 all the way down. We won't raise it all. Fifteen 0:17:40.600 --> 0:17:45.480 is good, pat on the back, fantastic. And then um, 0:17:45.520 --> 0:17:49.080 a gentleman from Cincinnati who was working for a group 0:17:49.119 --> 0:17:52.679 called Second News or to M Capital, reached out to 0:17:52.800 --> 0:17:57.639 us and said, Hey, I'm thinking about doing X y Z. 0:17:57.840 --> 0:17:59.560 Do you have time to talk? And we're like sure, 0:17:59.600 --> 0:18:02.280 and we off to him. He's like, hey, I think 0:18:02.400 --> 0:18:04.879 my boss would really like what you guys are up to. 0:18:05.119 --> 0:18:07.480 Would you like to talk to him? So we talked 0:18:07.480 --> 0:18:11.120 to this guy named Todd from to M Capital, and 0:18:11.240 --> 0:18:15.280 over like three meetings they decided to invest twenty million 0:18:15.320 --> 0:18:23.040 dollars and we were like, we're at thirty five. What 0:18:23.240 --> 0:18:27.120 just happened here? Um? And so we could see that 0:18:27.240 --> 0:18:31.080 path to fifty million was our hardcap for the fund, 0:18:31.760 --> 0:18:33.919 and so we saw a path We're like, maybe we 0:18:34.000 --> 0:18:36.880 can raise fifteen more, but man, it's COVID. And then 0:18:37.240 --> 0:18:44.000 George Floyd was murdered, and suddenly some foundations, some other 0:18:44.080 --> 0:18:49.160 corporations like started doing some soul searching and realized that 0:18:49.720 --> 0:18:53.200 what they had been doing to date just wasn't enough 0:18:53.920 --> 0:18:57.040 and they should have done it a long time ago. Right, 0:18:57.080 --> 0:19:01.159 Those are the conversations we've been having and you know, 0:19:01.960 --> 0:19:06.400 we're it about. I mean, our cap is fifty million dollars, 0:19:06.440 --> 0:19:10.240 but we have a lot, a lot of interest. We 0:19:10.320 --> 0:19:16.560 have more double all that and interest. So um, it's uh, Now, 0:19:16.600 --> 0:19:19.240 it's just going through and figuring out what's the right 0:19:19.320 --> 0:19:23.320 blend of people. It's a very interesting place to be. 0:19:23.720 --> 0:19:27.720 First time fund managers don't get this opportunity. Lack fund 0:19:27.720 --> 0:19:30.800 managers don't get this opportunity. And so for us, we're 0:19:30.800 --> 0:19:34.040 trying to find the right blend of investors that are 0:19:34.080 --> 0:19:36.600 here for the right reasons and that will stick with 0:19:36.720 --> 0:19:41.480 us through funds to fund three and beyond. Um we are. 0:19:43.119 --> 0:19:45.680 It wasn't all luck May and the timing of this 0:19:45.760 --> 0:19:49.240 has just been incredible. Yeah, it's I'm glad you said 0:19:49.240 --> 0:19:51.480 that because I've had this conversation with a couple of 0:19:51.520 --> 0:19:55.760 folks and people who are working on recognizing the moment 0:19:55.880 --> 0:19:58.560 that we're in, that we're still in with COVID and 0:19:58.760 --> 0:20:01.480 George Floyd and the social prisings and people starting to 0:20:01.520 --> 0:20:03.720 wake up to your point of like we haven't done enough. 0:20:04.400 --> 0:20:08.280 And I always think about it's romy manual quote from 0:20:08.320 --> 0:20:09.680 back from two thousand and eight. I don't even know 0:20:09.680 --> 0:20:11.520 if he's the first person to say it, but he said, 0:20:11.520 --> 0:20:13.920 you never let a great crisis go to waste. It's 0:20:13.920 --> 0:20:17.400 an opportunity to do things you otherwise couldn't have done. Right, 0:20:17.880 --> 0:20:21.840 And you just talked about in this moment when COVID hit, 0:20:22.640 --> 0:20:26.159 I'm sorry, when George Floyd hit specifically, people woke up 0:20:26.160 --> 0:20:28.960 and say, hey, we need to do more, and that 0:20:29.600 --> 0:20:34.480 obviously lended itself to getting you guys some checks. Um, 0:20:34.560 --> 0:20:40.800 what do you say two entrepreneurs would be investors about 0:20:40.840 --> 0:20:44.720 this moment um and and how to take advantage of 0:20:44.800 --> 0:20:48.199 this moment when people are saying, hey, you know, maybe 0:20:48.280 --> 0:20:50.959 we should be doing more. How do you take advantage 0:20:50.960 --> 0:20:53.119 of right now? Well, you still have to recognize that 0:20:53.200 --> 0:20:58.960 all money is not good money, right um, And there 0:20:59.000 --> 0:21:04.880 are folks that are being predatory in this moment, So 0:21:05.200 --> 0:21:07.400 make sure that you still are looking at your deal 0:21:07.840 --> 0:21:10.680 and making sure it's a good deal. Right. I've seen 0:21:10.720 --> 0:21:14.240 people try to put a hundred thousand dollar check into 0:21:14.240 --> 0:21:17.520 a company that's doing really well for seven percent equity. Well, 0:21:17.600 --> 0:21:21.920 I don't know what that's about, Like, I just don't 0:21:21.960 --> 0:21:27.160 understand what that's So we're we are still seeing that Um. 0:21:27.400 --> 0:21:31.000 But but use the moment to get ahead, because it's 0:21:31.000 --> 0:21:34.640 going to end. This window will close. They've forgotten about 0:21:34.720 --> 0:21:37.600 us before, they will forget about us again. So now 0:21:37.720 --> 0:21:40.360 is the time to structure everything that you need to 0:21:40.359 --> 0:21:43.359 to get it done. UM. I mean, I don't know 0:21:43.400 --> 0:21:45.080 if I have much more to say about that than 0:21:45.119 --> 0:21:49.119 that it's it's Um, it's a unique moment. It is. 0:21:49.320 --> 0:21:53.119 It is an incredibly unique moment. And but it's a 0:21:53.160 --> 0:21:58.320 moment that's deserved, right. We deserved this stuff a long 0:21:58.400 --> 0:22:03.600 time ago. This isn't charity, right when people are investing, 0:22:03.640 --> 0:22:06.000 I think it's our responsibility though, to remind people that 0:22:06.160 --> 0:22:10.199 investment in this is not charity, This isn't philanthropic. We 0:22:10.280 --> 0:22:14.560 are at our fund looking for market rate returns. All 0:22:14.600 --> 0:22:17.200 of the founders that surround us, they aren't. They aren't 0:22:17.240 --> 0:22:21.520 doing it for social impact. I'm not a social impact investor. Um. 0:22:21.560 --> 0:22:24.040 There are people making an impact on the world, but 0:22:24.080 --> 0:22:28.440 we're also like generating revenue and we're looking to build 0:22:28.440 --> 0:22:31.240 generational wealth. So now is the time to do it. 0:22:31.720 --> 0:22:34.400 And I think it's everyone's responsibility to make sure that 0:22:34.480 --> 0:22:37.960 these good stories are being told, um, and that we're 0:22:38.080 --> 0:22:42.600 highlighting great founders doing great things, not necessarily just the 0:22:43.480 --> 0:22:48.879 I raised around, right, because raising rounds aren't milestones. Generating 0:22:48.880 --> 0:22:52.439 revenue is right, So how do we highlight the people 0:22:52.560 --> 0:22:56.320 do actually doing the work. How are we putting up 0:22:56.359 --> 0:23:02.120 those people who really need an investment? UM, That's that's 0:23:02.160 --> 0:23:17.719 how we have to capitalize on this whole movie. Season 0:23:17.760 --> 0:23:19.920 two of the Black Tech, Green Money Podcast is brought 0:23:19.960 --> 0:23:23.040 to you by Lexis for over thirty years, Lexus May 0:23:23.160 --> 0:23:25.600 Driveway is the place to celebrate with the December to 0:23:25.680 --> 0:23:29.679 Remember Sales event. Find exclusive offers on popular Lexus models 0:23:29.920 --> 0:23:34.399 now through January four. Experience amazing y alexis dealing. I 0:23:34.400 --> 0:23:36.840 want to talk about the education you guys do UM 0:23:36.840 --> 0:23:40.879 in a couple of different ways, how consequential. First was 0:23:41.119 --> 0:23:43.680 the new Me acquisition, right, and I were just talking 0:23:43.680 --> 0:23:49.920 about this this this morning. UM to be completely candid, 0:23:50.160 --> 0:23:54.720 and I'm fine with this, Like it's not easy, rate 0:23:54.880 --> 0:24:01.199 like running a nonprofit and UM grants hum and grants go, 0:24:01.480 --> 0:24:05.600 and they are not always smooth. And for us, there 0:24:05.600 --> 0:24:08.680 were two reasons for doing the New the acquisition. One, 0:24:08.800 --> 0:24:12.720 it generated revenue to smooth out those bumps because there 0:24:12.760 --> 0:24:19.840 were times when I couldn't make payroll right because we're 0:24:19.840 --> 0:24:24.040 a nonprofit right and sometimes people people say they're gonna 0:24:24.040 --> 0:24:25.960 give you a hundred thousand dollar grand and suddenly it's 0:24:25.960 --> 0:24:28.320 a fifty thousand dollar grand, and like, where am I 0:24:28.359 --> 0:24:31.199 supposed to come up with that? Bunny books like and 0:24:31.280 --> 0:24:35.360 so there were plenty of times where like I deferred 0:24:35.400 --> 0:24:39.200 my salary for my employees. So one, it was a 0:24:39.240 --> 0:24:43.560 revenue generator so that we would not still be We 0:24:43.600 --> 0:24:46.880 would have had a very difficult time being around without 0:24:47.359 --> 0:24:51.159 a way to make revenue. That's number one. But to 0:24:51.560 --> 0:24:58.080 it gave us access to a fantastic brand and people love, love, love, 0:24:58.200 --> 0:25:02.199 still love Angela Beton Right and the program that she 0:25:02.280 --> 0:25:06.480 created back in two thousand twelve New Me Class two. 0:25:07.280 --> 0:25:11.159 Brian Bracken went through that class right, Freddie from Pigeon 0:25:11.240 --> 0:25:16.040 Ley went through it too. Marlon Avery, our director of technology, 0:25:16.200 --> 0:25:19.480 went through New Me Like New Me made a huge 0:25:19.600 --> 0:25:25.160 difference for Black Tech UM and continues to and three 0:25:25.240 --> 0:25:29.080 of our first seven investments were New Me companies. That 0:25:29.320 --> 0:25:33.640