Social Wealth Partners are a group of angel impact investors, venture founders, government leaders, and philanthropists guiding early-stage for-profit ventures, impact investing funds, and social impact initiatives to success. Rob Hanna has designed and brought to market the world's largest impact accelerator, engaging over 6000 social entrepreneurs in 100 countries. He coined the term social wealth in 1991 while working on Wall Street.
We discuss Rob’s passion for climate-clean technology, how you can get involved in investing in socially impactful ventures, and what were the most important lessons he learned in his career.
He also explains the term social wealth and underlines the importance of impact investing in today’s world.
Key points discussed
My guests are Brittany Davis and Christie Pitts, Partners at Backstage Capital. This is an investment fund focused on investing in people of color, women, and LGBTQ+ founders. Currently, less than 10% of all venture funds go to these groups. Whereas other VCs see this as a pipeline problem, Backstage Capital sees it as the biggest opportunity in investment.
Backstage Capital has invested in more than 150 companies led by underrepresented founders since 2015. They’ve become the brand for underrepresented founders and they’ve done great work promoting and empowering diversity.
Data shows again and again that diverse teams perform better and diverse investors make better investment decisions. It’s clear that diversity is not just a feel-good choice, but also a smart option for savvy investors.
In this episode, we discuss diversity in venture capital, crowdfunding as a way to bring power to the people, and all the great work Brittany and...
Over the past few months, several huge tech companies have jumped the Silicon Valley ship.
Oracle relocated to Austin, Hewlett Packard to Houston, and Palantir to Denver.
And just before that, Elon Musk announced his exodus from California, vocal about his dissatisfaction with the state’s direction when it comes to tech and entrepreneurship.
So, does this mark the beginning of the end for Silicon Valley?
While some big players have moved their headquarters out of the Bay Area, San Francisco’s magnetic force on innovation has yet to fade.
Big Tech is just now headed for a border-free ecosystem, but I’m going to show you how angel investors and a new class of entrepreneurs are already miles ahead of this.
When startups can raise, and investors can invest—regardless of location—the entire system thrives.
The move away from The Bay is mostly attributed to its steep taxes and incredibly high cost of living.
Investments that don’t fall into one of the traditional categories like stocks, bonds, or cash are considered “alternative”.
Alternative investments encompass a variety of assets but share many similarities. They tend to be illiquid, unregulated, and risky, but also yield high returns and counterweigh traditional investments
Examples include private equity (angel investments), hedge funds, commodities, and cryptocurrency, as well as tangible assets like art, wine, coins, and precious metals.
Investors make alternative investments for one reason—diversification.
Because alternative investments have a low correlation with standard asset classes like stocks, they are an excellent counterweight. This means that while stocks and bonds are hurting, alternative assets may be doing just fine.
As investors, we never want to have all our eggs in one basket.
Also, things like gold, antiques, and oil provide a hedge against...
My guest is the formidable Joanne Wilson, also known as the Gotham Gal. She's a New York City-based angel investor and one of the earliest angel investors to have a female entrepreneur-driven investment thesis. She's also a co-founder of the Women's Entrepreneur Festival, blogger, and podcaster.
We dive into her over a decade-long career as a trend spotter and successful angel investor. Her very first angel investment was in 2007 and she invested in a New York media company Curbed, a position she is still holding today. Her investment portfolio includes over 130 startup companies in everything from food to consumer goods, to software to cannabis, and now real estate.
We discuss why it's so important to create an investment thesis (especially as a new investor), how to go about creating your specific investment thesis, and why having a female and minority-driven investment thesis is an advantage in selecting companies. Joanne also shares how to think about creating a...
Today I’m on with Marlon Nichols, Managing Partner at MaC Venture Capital. Marlon has a background in technology, private equity, media, and entertainment. As an investor, he has a unique eye for global trends and shifts in consumer behavior. We’ll discuss the investment thesis, investment frameworks, and upside industries.
Marlon has a knack for capturing high-potential investments, which include Gimlet Media, MongoDB, Thrive Market, and other companies that reflect overlooked markets. With a background as a professional athlete, Marlon utilizes sports leadership philosophy when working closely with CEO’s to build the ventures of tomorrow.
Today he also shares his investment thesis which focuses on culture and desire to invest in a better future. His venture fund combines culture, impact, and social responsibility to support underserved communities across the US.
What we cover in the episode:
In case you haven’t heard, or you need a refresher, many hedge funds were short-selling GameStop stocks, essentially betting on its decline. These institutional investors shorted the stock so much that they left themselves incredibly vulnerable.
Seeing this, everyday investors organized online through Reddit and came together to call the financial giants on their bluffs. These amateur retail investors began buying shares of GameStop en masse, driving the stock price up. What started as a financial opportunity soon meandered into the realm of a political movement aimed at hitting the financial elite in their wallets.
At that point, the hedge funds had to make the difficult decision to either hold their declining shares and weather the storm or, amid the chaos, sell their shares at significant losses.
The result was billions of dollars gone from the hedge funds' portfolios and a small number of online investors with big winnings.
A divisive fiasco,...
An exit is an opportunity to sell your equity in a private company.
After searching for your startup, assessing it, investing, and waiting, an exit event may occur, causing the company to change drastically and giving you the choice to sell your shares, hopefully for a profit.
Successful startups usually exit in 3-5 years but may take up to 10. Again, angel investing is a long-term investment and requires patience.
There are several different types of exit events. These include Initial Public Offerings (IPOs), acquisitions, and even bankruptcy.
In the angel investing world, exits yield huge returns—upwards of 20x to 100x of your initial investment.
Let’s dive in and explore the different types of exits, when they happen, and how they affect you.
The first and most desirable type of exit is an Initial Public Offering.
Only companies that have established themselves within their markets and...
All investments are not the same. A thousand dollars invested in one company will never perform just like that same amount invested in another.
Not only that, but you could be putting the same $1,000 at greater risk depending on how you invest.
And yet many investors not only treat all their investments the same way, they even put more of their money into riskier investments! Speculative investments seem enticing until you realize why they are speculative in the first place and hence why they might be riskier.
The share prices of big, established companies like Johnson & Johnson, Walmart, Coca Cola, or Colgate-Palmolive tend to move up or down slowly and with less sudden price movements. Many tech companies, social media companies, or companies without a large market size (market capitalization) tend to move up or down in price more easily, and those price swings can be much bigger.
This is to be expected, and is in the normal scheme of things....
Five times more exciting to be sure!
Shark Tank Casting Director Brandon Andrews joined me on this week’s podcast. He shared why startup investing just got a lot more exciting for him.
Now, Brandon’s no greenhorn when it comes to angel investing; he sees 40,000 entrepreneurs and startup companies a year. He knows this space. And so when he told me more about what recently happened in the startup investing space, I knew it was worth paying close attention.
Before we hear what he shared, let’s review what happened in startup investing. Startup investing for the average person is relatively new; less than five years ago you and I likely couldn’t have invested in startups. It was reserved for high net worth individuals and venture capitalists able to make significant investments. The thinking was that startups are risky businesses, too much so for average investors. But that thinking also prevented the average investor from also...