Podcast Summary
Arlen Hamilton raises $5M through equity crowdfunding, supports diversity in tech, and offers free events for founders: Arlen Hamilton raised $5M through equity crowdfunding, supports diversity in tech, and offers free events for founders to learn new skills, connect with experts, and meet potential investors.
Arlen Hamilton recently raised $5 million through equity crowdfunding on Republic.co, and the trend of non-accredited investors investing in startups is on the rise. Arlen is also committed to increasing diversity in technology by supporting women and underrepresented founders. For founders looking to learn new skills and connect with others, Founder University offers a free two-day program with expert speakers and candid feedback from investors. The event is open to founders worldwide and provides an opportunity to meet potential investors, including Launch's 16-person team. Additionally, Meetourfund.com offers a free event for founders to meet 50 venture funds. Both events are free for founders, thanks to the support of partners like Wilson, Cincinnati, Goodrich, and Rosati.
Ireland's podcast raises $5M through equity crowdfunding: Ireland's podcast sold 10% of their holding company to enable a larger and more diverse group of investors to participate in their fund, raising a record-breaking $5M through equity crowdfunding.
Ireland's podcast, "Your First Million," has seen significant success, including raising a record-breaking $5 million through equity crowdfunding on Republic within a week. This was achieved by selling 10% of Backstage Capital, their holding company, in exchange for a carry and management fee. This unique offering allowed a larger and more diverse group of investors to participate, moving beyond the traditional LP model in venture funds. Despite the limitations for individual investors to be LPs in funds, this innovative approach provided an opportunity for a broader range of people to invest and potentially share in the profits.
Black woman entrepreneur overcomes skepticism and continues to make an impact: A black woman entrepreneur, despite facing challenges, gained recognition and inspiration through her persistence and now has over 180 investments under her belt.
Arlan Hamilton, a black woman who started her own venture fund from nothing, faced skepticism and backlash in the early years but has since gained recognition and inspiration for her persistence and success. Despite facing challenges, including the murder of Black lives and the polarizing political climate, Hamilton has continued to make noise and inspire change. Now, with over 180 investments under her belt, she is no longer chasing down opportunities but being sought after for her expertise and impact. Her story serves as an inspiration for those who refuse to be complacent and strive for progress, regardless of the obstacles they face.
Investing in Historically Black Colleges for the Next Generation of Investors: The need for progress and equality calls for investing in historically black colleges to train the next generation of diverse venture capitalists and angel investors, while LinkedIn Jobs offers a solution for businesses to access a global talent pool for free.
There's a growing movement to invest in historically black colleges and universities to train the next generation of venture capitalists and angel investors. This is a powerful development, and it's especially evident in the wake of recent social and political events. Small businesses have shown incredible resilience during challenging times, and finding the right talent is crucial for their growth. LinkedIn Jobs offers a solution, allowing businesses to access a vast pool of professionals from all over the world for free. The murder of George Floyd and other similar incidents serve as a stark reminder of the need for progress and equality. These conversations, although difficult, are essential for moving forward. The future lies in embracing diversity and inclusivity, both in business and society.
Shifting focus to de-escalation and practical solutions: In social justice and community safety, prioritize understanding, empathy, and practical solutions. In investing, support underrepresented founders and address challenges while celebrating success stories like Career Karma.
The current events unfolding around social justice and community safety require a shift in approach, focusing on de-escalation and sending the right resources to the right situations. The tragedy of recent events leaves many feeling overwhelmed and in mourning, and it's essential to listen to those affected and implement practical solutions. In the world of investing, the market is experiencing unprecedented growth, with companies led by underrepresented founders thriving. Amidst the excitement, it's crucial to remain steady and continue supporting these companies while addressing any challenges that arise. One such success story is Career Karma, which acts as a bridge between individuals and coding camps, providing valuable insights into various schools and career opportunities. Overall, the key takeaway is to prioritize understanding, empathy, and practical solutions in both social and economic spheres.
Scaling DTC businesses: Partake Foods and Vanta's success stories: Founders of allergy-friendly and vegan baked goods company Partake Foods and SOC 2 compliance solution Vanta shared their experiences of overcoming challenges and achieving significant growth in their respective industries.
Successful founders, regardless of the industry they're in, are able to scale their direct-to-consumer businesses with the right resources and determination. This was evident in the stories shared about Partake Foods and Vanta. Partake Foods, a company specializing in allergy-friendly and vegan baked goods, faced challenges in the past when trying to gain traction but has since experienced significant growth with oversubscribed funding rounds. Vanta, on the other hand, offers a solution for companies to become SOC 2 compliant more efficiently and at a lower cost. The founder of Vanta, Christina Casiopo, shared the importance of SOC 2 as a customer request for proving security, especially for B2B companies. The trend of direct-to-consumer food and product companies is on the rise, and investors like Kristina are betting on the founders' ability to scale and their unique advantages. Even though it's challenging, the potential for success is worth the effort.
Evaluating DTC Investments: Unique Product and Growth Mindset: Investing in DTC companies demands a unique product, a growth-minded founder, and a marketing passion. The investor uses a quadrant matrix to assess potential investments, and values founder expertise. With a growing team and thousands of applications, they plan to manage inflow with a new program.
Investing in direct-to-consumer companies requires a unique and differentiated product, a growth-minded founder, and a passion for marketing. The investor shared her approach to evaluating potential investments using a quadrant matrix with unique product and growth mindset as the axes. She also mentioned that valuations are catching up to normal levels, and founders increasingly value the investor's expertise and experience. The investor's team has grown to seven people with four check writers and three decision-makers. They receive thousands of applications a year and plan to introduce a new program to manage the inflow of inbound deals. The ideal time to meet with potential founders is not fixed, but the investor emphasizes the importance of a unique product and growth mindset.
Identifying game-changing ideas and collaborating to bring them to life: Successful investing involves finding projects with significant impact potential and collaborating with others to bring them to life. Investment syndicates are growing in popularity due to their success stories and the new fund model addresses earlier criticisms.
Successful investing often involves identifying game-changing ideas and collaborating with others to bring them to life. The speaker, who has a background in investing and running a syndicate, emphasizes the importance of finding projects that have the potential to make a significant impact. He also shares his experience with the growth of investment syndicates and how they are now attracting more interest due to their success stories. The speaker's syndicate, which has done around a dozen deals and raised about two million dollars, is an example of this trend. He also mentions that they are now using a new fund model where they put in a certain amount to kick off deals, addressing earlier criticisms about the incentive structure. Overall, the conversation highlights the excitement and potential of collaborative investing and the importance of identifying projects that can make a real difference.
Startup investment fund growth journey: Stay true to early growth stages, partner with reliable infrastructure providers, and prioritize persistence, adaptability, and smart partnerships for a successful business
Growing a business involves taking calculated risks and learning from past experiences. The speakers in this discussion shared their journey of growing their startup investment fund, from making small investments to managing larger allocations and eventually aiming for a $60 million target. They emphasized the importance of staying true to the early stages of growth, even as the fund's success grew. Additionally, they highlighted the benefits of partnering with reliable infrastructure providers like Linode, which can help businesses save money and focus on growth. The speakers also acknowledged the challenges of managing larger investments and the importance of staying calm and focused during the fundraising process. Overall, their experiences demonstrate the importance of persistence, adaptability, and smart partnerships in building a successful business.
Disintermediation in Crowdfunding: Founders Retain Control: Crowdfunding allows founders to bypass intermediaries, retain control, and receive support directly from the public, proving to be an effective alternative to traditional venture capital
The crowdfunding landscape is becoming a significant competitor to traditional early-stage venture capital, allowing founders to bypass intermediaries and raise funds directly from the public. This disintermediation, facilitated by regulations like 506C, enables founders to retain more control and a larger share of the gains. While the size of the fund raised can sometimes be inflated, what truly matters is the ability to answer the call when founders need help. The stigma surrounding smaller funds and the focus on headline numbers should not overshadow the importance of being present and supportive for the founders. Despite industry skepticism, this approach is gaining traction and proving to be effective.
Valuing Time, Expertise, and Worth: Arlen emphasizes the importance of valuing personal time, expertise, and worth in education and business, and believes that those who cannot afford it should find alternative opportunities.
People's willingness to invest and pay for services or education, regardless of the cost, is a personal decision. Arlen, who runs Arlen Dot Capital and charges for her investing courses and Entrepreneur Academy, believes that she is worth the investment and that those who cannot afford it should find other ways. She compares her pricing to the cost of traditional higher education and defends her right to charge what she believes is fair. She also shares her experience of finding her first investor at a course she attended, which cost her a significant amount of money. Ultimately, Arlen emphasizes that people should value their time and expertise, and those who cannot afford it should look for alternative opportunities. She also shares her experience of being approached to speak at events and only accepting paid engagements, while turning down offers for exposure alone. Overall, Arlen's perspective highlights the importance of valuing one's time, expertise, and worth in various aspects of life, including education and business.
Valuing Time, Effort, and Resources: Speakers and investors should charge fair compensation, build strong networks, and invest wisely while also helping others and surrounding themselves with like-minded people.
Individuals, including speakers and investors, should value their time, efforts, and resources, and charge or demand fair compensation for their services or investments. The speaker in this conversation emphasizes the importance of hard work and generosity, but also the need to monetize opportunities and invest in others. He uses his own experiences and resources to fund scholarships and help others, while also enjoying the perks of his success. Regarding investments, the speaker discusses the evolution of equity crowdfunding and the importance of building a strong investment network or club. He emphasizes that members have a say in who joins and that the club's success depends on the resources and support provided. The VIP fees are a way to generate revenue to hire customer support and ensure a high level of service. In summary, the speaker's message is about the importance of valuing one's own worth and resources while also helping others and building a strong network. He encourages individuals to charge what they deserve, invest wisely, and surround themselves with like-minded people.
Overcoming criticism and staying positive in a male-dominated industry: Arlan Hamilton shares her experiences of being ghosted by investors, emphasizes the importance of access to deal flow, treating everyone with respect, and staying positive towards competition. She encourages direct communication for investment opportunities and highlights progress towards diversity and inclusion.
Building something successful, especially in a male-dominated industry, can be met with criticism and jealousy. Arlan Hamilton, the founder of Backstage Capital, shared her experience of being ghosted by investors and the importance of maintaining a positive attitude towards competition. She emphasized the privilege of having access to deal flow and the importance of treating everyone with respect. Hamilton also highlighted the progress towards diversity and inclusion in the industry and encouraged those who missed out on her previous Reg CF offering to consider investing in her new fund. While there are regulations regarding fundraising, she remains open to opportunities and encourages those interested in investing to reach out to her directly. Hamilton's resilience and determination serve as an inspiration for those looking to make a mark in their respective industries.
Investing in a syndicate for personal enjoyment and collaboration: The speaker is considering retiring from fundraising to focus on a successful syndicate, enjoying the collaborative industry environment, personal investment decisions, and Q&A sessions with founders.
Focusing on specific, narrow ideas for a book may not be what publishers are looking for in pursuit of a bestseller. Instead, the speaker is considering investing all his resources into a successful syndicate and potentially retiring from fundraising. The syndicate allows for more personal investment decisions and a collaborative industry environment, making the deal flow more enjoyable. The speaker also appreciates the Q&A sessions with founders and being part of a team sport rather than the competitive later stages. Additionally, he looks forward to obtaining a fancy hoodie with the number five embroidered on it. Overall, the speaker values the collaborative nature of the industry and the personal investment decisions made in the syndicate.
