RBFN Podcast

#33 - Greatest Hits: Making Credit Sexy with Mike Luebbers, Chief Credit Officer of Novel Capital

Tue, 31 Dec 2024 06:00:00 -0600

We make credit sexy(ish) this week with Mike Luebbers, the Chief Credit Officer of Novel Capital. We brought Mike onto the team at Novel after we worked closely with him as he led the underwriting on the credit facility we raised. We learned so much in that process that he was our first call when we decided it was time to hire a Chief Credit Officer. Mike is a world-class credit investor, having been Chief Credit Officer at both Bridge Bank and Lighter Capital. In this conversation, which I pulled from the archives, Mike shares his unique point of view on how to do RBF deals (having done hundreds in his career). Mike also shares some great tips for folks to learn how to think about alternative capital and RBF investing, how his experience in the tech sector inspired him to leverage tech for efficiency and creativity in underwriting, and the key metrics Mike looks at when thinking about an RBF deal.

Key Takeaways

[4:00] Mike’s career trajectory from commercial tech banking to RBF.

[5:48] The difference between the sales and credit guy.

[6:05] Mike’s duties as the Chief Credit Officer role at Novel Capital.

[8:31] How Mike made the shift from bank to fintech startup.

[10:17] Where Mike sees RBF fitting in the landscape both with customers and companies.

[12:01] The key factors of predictability of revenue and customer base in determining the appropriate amount of RBF to provide.

[16:08] How RBF fits with the entrepreneur’s growth goals.

[19:52] The difference between Merchant Cash Advance and the typical RBF.

[22:18] The other key metrics Mike looks at when thinking about an RBF deal. What are the bare minimum criteria that he thinks are important?

[27:41] Deal killers in RBF and when it’s not a “no”, but a “not yet”.

[30:30] How do you know when to attribute it to luck vs. good underwriting?

[34:02] Q&A: What role does Mike see RBF playing post-pandemic recovery of non-software small businesses?
[44:02] Companies that offer a profit share rather than a revenue share. Indie.vc, Earnest Capital.

Thanks to our sponsor for this episode:

Husch Blackwell - Husch is my go-to law firm for everything related to raising capital, building companies, deploying capital, and everything in between. The partner I work with, Ed Wilson, understands the alternative capital landscape and I can’t recommend him highly enough.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Lighter Capital

Bridge Bank

Guest:

Mike: LinkedIn | Novel Capital

#32 - Greatest Hits: Microlending, CDFIs & RBF, Ruben Alonso - CEO of AltCap

Thu, 19 Dec 2024 06:00:00 -0600

Happy Holidays, my friends! Today we’re rereleasing a fan favorite - my conversation with Ruben Alonso, CEO of AltCap. AltCap is a mission-driven community development financial institution (CDFI) operating across multiple states and based in Kansas City. Ruben has propelled AltCap's growth for 15 years, channeling over $300 million in alternative financing towards underserved communities and often-overlooked entrepreneurs. Noteworthy is Ruben's recent launch of AltCap's RBF loan product, opening new avenues for entrepreneurs. Ruben's unwavering dedication to democratizing capital access is deeply rooted in his family's own immigrant story from Cuba during the late 1950s and early 60s. Join us as Ruben provides valuable insights and firsthand experiences in advancing financial inclusivity and fostering small business triumph.

Key Takeaways

[3:31] The journey from corporate America, to the Peace Corps, to AltCap.

[5:53] How Ruben’s family roots from Cuba informs his desire to help build other businesses.

[8:57] How AltCap got started and how it has grown.

[12:48] What CDFIs are, and how they operate.

[16:30] Lending is a volume business, and maintaining the impact ethos.

[18:48] How they built and evolved their underwriting models.

[19:49] The character based lending approach.

[22:19] The benefits of using Ned’s end-to-end system to originate and manage loans.

[25:00] Examples of RBF deals they have done and where RBF can be a powerful financing tool.

[26:45] The KauffmanFoundation provided them a $5.3 million program related investment to launch an RBF loan fund to help prioritize entrepreneurs of color.

[29:14] The relationship between a funder and borrower.

[35:22] Lessons learned from building a tax credit program to $250M+.

[36:21] The psychology of RBF.

[40:03] Capitalizing AltCap for the future.

[41:26] What entrepreneurs should know about CDFIs.

[47:01] Ruben’s advice for building an alternative capital platform.

Thanks to our sponsor for this episode:

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Novel Capital | Ruby Jean’s Juicery

Guest:

Ruben: LinkedIn | AltCap | Twitter

#31 - Influencing More Capital For Good with Bryce Butler, Founder & Managing Director of Access Ventures

Tue, 08 Oct 2024 06:00:00 -0500

Keith welcomes Bryce Butler, founder and managing director of Access Ventures. Bryce shares his unique journey from the military and being a pastor to becoming an impact investor and advocate for innovative capital strategies that empower local communities. He discusses the concept of “access and agency,” emphasizing the importance of providing not only access to capital but also the tools for individuals to make informed decisions about it. Bryce also explores the community round funding model, explaining how it democratizes investment and strengthens local economies, particularly through his work with WeFunder and the Community Match Fund.

Key Takeaways

[2:50] Bryce shares his military experience as a tank officer, leading soldiers, then his journey through seminary and eventual transition into family offices and impact investing.

[6:52] Bryce describes his role as an instigator, challenging the status quo in local philanthropy.

[8:10] Overview of Access Ventures as a multi-asset, mission-aligned nonprofit.

[10:32] The importance of access to capital and the agency to make decisions.

[12:33] Access as an impact multiplier.

[13:05] Assets under influence vs. assets under management.

[14:01] WeFunder’s community round match fund and its impact.

[17:27] A range of tech, CPG, and yes, even a cookie company (Please & Thank You) benefiting from the investment strategy.

[18:45] How founders decide what type of capital works for them.

[21:14] Raising awareness about the community match fund.

[26:02] The difficulty of getting traditional chambers to support innovative capital solutions.

[29:22] Bryce’s work on policy design to help state-level economic development adopt new capital strategies.

[31:15] How community support plays a critical role in capital allocation.

[31:19] Removing the illusion of favoritism.

[31:49] Raising $240k for a Harlan County beer company.

[32:04] A playbook for launching community rounds in different regions.

[33:05] Bryce’s podcast, More Than Profit.

[35:20] Render Capital’s blended investment strategy for underserved entrepreneurs and raising $15 million.

[37:24] Working with Ross on the Blueprint Local opportunity zone fund.

[38:23] Bryce predicts the growing influence of revenue-based financing and reimagined term sheets for long-term business success.

[40:36] What has surprised Bryce throughout his career journey.

[40:53] The difficulty of moving traditional systems toward innovation.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Bryce: Access Ventures | Email: bryce@accessventures.org | More Than Profit Podcast

#30 - Totally Unique Startup Financing: Using Retirement Savings to Fund Your Business with Mickey Parker, CEO of Accelefund

Tue, 17 Sep 2024 06:00:00 -0500

Navigating ROBS for Business Startups with Mickey Parker, CEO of Accelefund

In this episode, Keith explores an innovative way to start or buy a business using the retirement funds (IRAs and 401Ks) with Mickey Parker, Co-Owner and CEO of Accelefund. Mickey shares how entrepreneurs can utilize their retirement funds tax-free by setting up a ROBS (Rollover for Business Startup) account and using that to invest in their startup. He explains the advantages of ROBS, how to set one up, when it makes sense and doesn’t, how this approach can help any entrepreneur start a business. Mickey also shares success stories from Accelefund clients, why many bankers are unaware of this powerful financing tool, and the current regulatory changes impacting this unique investment strategy.

Key Takeaways

[2:00] Mickey’s experience as a controller and CFO led him to discover ROBs (Rollover for Business Startup) and eventually take over Accelefund.

[5:38] How the ROBS program allows entrepreneurs to use their existing retirement funds to invest in a new C corporation without incurring taxes or early withdrawal penalties.

[9:33] The difference between ROBS and a self-directed IRA.

[11:12] Requirements of the program.

[14:36] ROB plans can be used as the equity support for an SBA loan.

[17:02] How Accelefund works with entrepreneurs.

[18:22] Success stories.

[20:08] Prohibited transactions and business types that aren’t allowed.

[26:10] Why most bankers don’t know about this option.

[27:22] Using retirement funds for business startup equity and exit strategies.

[34:06] What happens if the business fails?

[35:05] Trends Mickey sees in the market.

[38:11] Regulatory changes over the years.

[38:44] The IRS Memo from 2008 on ROBS.

[39:22] SBA endorsement on ROBS.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Mickey: Accelefund | mickey@accelefund.com | 913-274-1930 | Accelefund YouTube

#29 - It’s Hard to Sell Money! Cash Flow and the Resilient Lenderwith David Silverstein, CEO of Ned

Tue, 13 Aug 2024 06:00:00 -0500

This week, Keith welcomes David Silverstein, the CEO of Ned, a software platform revolutionizing how lenders innovate and deploy capital. David first discusses Ned's end-to-end system, which powers diverse cash flow lending strategies nationwide. He talks about the critical role of technology in streamlining lending processes and improving accessibility, the challenges of fundraising, and the concept of the "resilient lender." David highlights the growing importance of transparency in lending operations and the need to build strong customer relationships. He also shares insights on market trends, the future of capital provision, and how lenders can stay competitive in an evolving financial landscape.

Key Takeaways

[2:21] The driving force behind Ned.

[4:56] The importance of cash flow underwriting in lending.

[5:54] Cash flow lending strategies emerging as a cost effective way to grow.

[8:37] Defining Ned’s growth.

[13:00] Transparency is key.

[15:05] The modularization of Ned’s platform.

[19:14] Types of lenders using Ned’s services.

[23:37] The concept of the resilient lender. White paper on the resilient lender

[25:46] Staying inspired and flexible in a way that mitigates downside risk.

[28:27] Having a culture of innovation and growth.

[29:53] The competitive spirit of modern-day lenders.

[30:35] Importance of transparency and relationships in lending.

[31:04] Yes, it is hard to sell money!

[33:22] Ned’s customer base includes AltCap.

[36:41] The power of relationship driven capital deployment.

[42:55] Future outlook for capital providers.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Dave: Ned | Infrastructure Week | X

#28 - Funding the Funders: Flexible Lending for Capital Entrepreneurs with Nolan Reichert, Vice President and Head of Originations at Haversine Funding

Tue, 09 Jul 2024 06:00:00 -0500

This week, Keith welcomes Nolan Reichert, the Vice President & Head of Originations at Haversine Funding. Nolan shares more about his career funding the funders in specialty finance, Nolan goes deep on Haversine’s thesis focusing on funding commercial and secured lenders, their sweet spot of $1-25 million loan sizes, and their unique underwriting process. He also shares insights on the challenges faced by small lenders in accessing capital and staying compliant with complex regulations. Additionally, Nolan highlights the importance of building strong relationships and providing value in the alternative lending industry.

Key Takeaways

[8:45] Nolan’s passion for providing capital to entrepreneurs.

[9:28] Nolan’s driving force is his son.

[10:30] What is lender or specialty finance?

[10:42] Haversine’s focus is on specialty finance lenders, mostly commercial and secured lenders.

[12:32] Why companies like Haversine are important to entrepreneurs.

[13:42] Haversine’s mission and history.

[17:25] Changes in the lending market.

[22:22] Who Haversine looks to lend to.

[25:07] Their strategy for finding customers.

[35:22] The regulatory challenges small lenders faced and the need for things to be simplified.

[36:17] What Nolan has seen change in recent years.

[40:38] What we can expect in 2025 and beyond.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Novel Capital

Nolan: Haversine Funding | LinkedIn | In Focus with Haversine Funding

#27 - Fake It Until You Make It - How to Raise Capital with Chris Costello, Founder and Former CEO of Blooom

Tue, 25 Jun 2024 06:00:00 -0500

In this second episode of our two-episode chat with Chris Costello, the founder and former CEO of Blooom, it’s all about raising capital. Chris first talks about becoming a self-taught student in venture capital, and what he did to prepare once he finally got in front of potential investors. He shares what did and didn’t work, and advice for spinning rejection into more opportunity. Chris and I dive more into the challenges of early-stage entrepreneurship, the significance of finding mentors and developing a filter to navigate the abundance of advice and feedback that founders receive. This is a super tactical conversation that will help any founder or investor get better and raising capital, and shed light on what’s like to be on the founder’s side of the fundraising table.

Key Takeaways

[5:32] Bootstrapping Blooom initially before needing capital.

[7:10] How Chris became a student of startups.

[8:07] Studying Steve Jobs.

[12:28] It took Chris 130 pitches to unique investors to find 15 investors.

[14:53] Having the right mindset to pitch the dream and vision of the company.

[15:33] Techniques that help confidence.

[16:49] The importance of asking the right questions.

[20:12] Asking for email intros once you get a no.

[22:19] Having radical self-belief.

[25:49] What Chris learned pitching to different investors.

[28:02] Be precise on your use of funds.

[31:25] Finding a mainstream VC firm to act as the lead investor in your round.

[32:49] Putting a clock on your investors.

[33:17] Don’t do due diligence with all your investors.

[36:11] The two main things Chris looks for when vetting investors.

[37:03] Looking for someone who has “been there” and “done that”.

[39:25] Standardized term sheets on National Venture Capital Association.

[40:07] Working with experienced attorneys such as Cooley.

[45:33] Questions to ask strategic investors.

[47:11] Asking candidly for the reason behind the “no”.

[49:57] Why investors give a slow maybe as opposed to a fast yes.

[52:46] Finding the right set of mentors.

[54:18] Developing a filter.

[56:12] Connecting with people.

[57:22] Do backchannel diligence on them.

[58:33] Asking for the amount you need and not over-raising.

[1:00:22] Spotting inexperienced angel investors.

[1:01:09] Creating two pitch decks.

[1:02:58] Would Chris raise venture capital again?

[1:08:11] Chris’s passion for Blooom’s mission.

[1:12:51] Chris’s boutique wealth management firm, Curtis Capital Advisors.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Novel Capital

Chris: LinkedIn | Morgan Stanley |Chris’s Finovate Best of Show

#26 - Entrepreneurship is Not Always Unicorns and Rainbows - Part 1 with Chris Costello, Founder and Former CEO of Blooom

Tue, 11 Jun 2024 06:00:00 -0500

Chris Costello is the founder and former CEO of Blooom, an innovative digital robo advisor. Chris is a rare entrepreneur who built both a bricks-and-mortar company and a technology business. In this first episode of our two-episode chat, Chris first talks about starting his entrepreneurial journey in 2004 by co-founding The Retirement Planning Group, an independent wealth management firm. Over the next decade, the firm flourished under his leadership managing over $1 billion in assets. In 2013, Chris co-founded Blooom to help people better manage their 401k investments. He discusses the challenges of fundraising as an entrepreneur, navigating multiple failed acquisition deals, winning Best of Show at Finovate, and Blooom's eventual sale to Morgan Stanley in 2022. Chris shares some invaluable advice about raising venture capital through his experience pitching over hundreds of times.

Key Takeaways

[4:41] Starting the Retirement Planning Group.

[7:42] Learning sales and phone skills in the boiler room.

[8:10] Chris’s conversation rate back in the day.

[9:16] Teaming up with Kevin Conard.

[10:08] Building a niche in retirement planning.

[14:20] Starting Blooom and the biggest challenges.

[18:05] Meeting up in Randy’s basement to discuss the initial ideas of Blooom.

[22:31] What made Blooom so special

[25:52] Funding Blooom’s initial development.

[26:40] Winning Best of Show at Finovate.
[29:04] Chris is in the “100 Club”.

[30:30] Landing QED.

[32:04] The decision to go down a new path.

[33:54] Getting referrals from uninterested VC’s.

[35:35] Fundraising strategies for startups.

[36:18] Fundraising under the gun.

[40:53] CEO transition.

[43:34] Taking back the CEO role in 2019.

[44:11] Lessons learned from being abruptly left at the altar by an acquirer.

[57:47] Selling to Morgan Stanley in 2022.

[1:00:29] Advice for raising capital.

[1:07:02] Three things a good investor should help with.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Novel Capital

Chris: LinkedIn | Morgan Stanley | Chris’s Finovate Best of Show

#25 - A Founder’s Perspective on Fundraising and The Art of the Ask with Kristian Marquez of FinStrat

Tue, 07 May 2024 06:00:00 -0500

Kristian Marquez is the founder and CEO of FinStrat Management. In our chat, Kristian shares lessons learned on his journey from starting a telemedicine startup, experiencing startup failure and an IPO, to founding FinStrat. He discusses the importance of validating your idea with customers through market feedback before building a product. He dives more into FinStrat’s unique approach, and also offers practical guidance into fundraising challenges, highlighting the need for accurate financials and metrics and financial transparency for a truly healthy investor and founder relationship.

Key Takeaways

[2:48] Kristian’s background.

[4:22] Co-founding a telemedicine startup and raising $2.5 million.

[5:58] Starting FinStrat.

[9:55] The importance of understanding investors' perspectives.

[10:14] The importance of transparency between founders and investors.

[13:02] Technology improves accounting processes but expertise is still fundamentally required.

[14:10] Healthy founder-investor relationships are built on trust and transparency.

[18:50] Raising capital for FinStrat.

[20:10] Pros and cons of debt financing.

[22:30] Fundraising from a position of strength.

[26:55] Remembering “the ask” in a meeting.

[32:16] What investors and founders shouldn’t do.

[36:47] Lessons learned from his telemedicine startup.

[38:08] The market must demonstrate demand.

[41:15] What has surprised Kristian along his journey.

[43:24] Kristian’s positive experience with Novel.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Novel Capital

Kristian: FinStrat | LinkedIn

#24 - Don’t Let Fundraising Break You & How to Treat an Entrepreneur - with Shaily Baranwal of Elevate K-12

Tue, 23 Apr 2024 06:00:00 -0500

Shaily Baranwal is the Founder and CEO of Elevate K-12. She’s an incredible entrepreneur and CEO, and I can attest to her ability to rapidly scale a company. Elevate K-12 provides engaging virtual classroom instruction from certified live teachers to ensure every student receives a high-quality education regardless of zip code. In the episode, Shaily shares the inspiring journey from her childhood in India as a special education student, to becoming a classroom teacher. She discusses founding two other companies before Elevate K-12, including a chain of preschools for low-income students in rural India. Shaily also talks about her fundraising experiences starting Elevate K-12, scaling the business, and her passion for problem-solving and rule-breaking in entrepreneurship.

Key Takeaways

[2:32] Shaily’s background.

[6:00] Shaily embraces both her scientific and artistic side.

[8:09] Solving problems is Shaily’s motivation.

[11:00] “Principles” by Ray Dalio.

[12:22] Learning from advisors and leaders. And choosing them wisely.

[14:05] Creating an ecosystem of success.

[18:01] Shaily’s past in teaching.

[18:33] Elevate - the fundraising journey.

[20:56] Why fundraising was a nightmare.

[22:08] Getting the first million from a hedge fund founder.

[26:04] The importance of a great investor.

[26:48] Discovering non-dilutive funding.

[29:27] Screening potential investors and choosing Novel.

[32:18] Asymmetry in the power and information dynamic.

[36:31] Advice for entrepreneurs and investors.

[39:35] Why did fundraising almost break Shaily?

[41:18] What surprised Shaily throughout the journey.

[43:05] The impact Shaily’s dad had on her career.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Shaily: Website | LinkedIn

#23 - The Good, The Bad, & The Ugly with Marshall Lebovits of Asset-Based Funding Solutions

Tue, 02 Apr 2024 06:00:00 -0500

Marshall Lebovits is an advisor at Asset Based Funding Solutions with almost 35 years of experience in the secured financing and alternative capital industry. In the episode, Marshall shares more about his passion for helping grow companies that typically lack access to capital with non-dilutive asset-backed financing solutions. Marshall discusses how he built a network of connections around the world, the importance of carefully evaluating your lending partners to make informed decisions, and the importance of accuracy in financial reporting.

Key Takeaways

[3:05] Marshall’s career background.

[[9:51] Asset-Based Funding.

[10:07] Sourcing deals.

[14:25] Case Study: A healthcare staffing company Marshall helped during the pandemic.

[22:15] Investing in the right types of relationships.

[29:35] Case Study: A protein drink client that stood out in the Better for You CPG space.

[34:58] What Marshall is both advising entrepreneurs on and warning them to be vigilant about.

[38:13] The importance of accurate financial reporting.

[47:21] Building Asset-Based Funding Solutions.

[47:38] Relationships matter. Make sure you trust who you work with.

Resources:
RBF Network
Keith’s Twitter
Keith’s Linkedin

Marshall: LinkedIn | X

#22 - Alternative Capital from The LP Perspective with Brendan Cosgrove of Catalyze

Tue, 19 Mar 2024 06:00:00 -0500

This week features Brendan Cosgrove, Co-Founder and Director of Catalyze, a unique national nonprofit dedicated to democratizing access to LP and institutional capital networks and resources for underserved investors and GPs. With his extensive experience guiding LPs at Cambridge Associates, and as Investment Director at the Kauffman Foundation's Capital Access Lab, Brendan brings a unique perspective to the table. In our conversation, Brendan shares insights into the challenges of introducing innovative funding methods like RBF and the importance of supporting diverse fund managers. He talks about Catalyze's Fund Fellowship program, aimed at empowering capital entrepreneurs to build investment solutions for underserved businesses. Brendan also sheds light on the long-term commitment needed to build institutional-quality investment firms and provides valuable insights into funding vehicles for impact investors. He also demystifies MRI vs PRI for foundation investors.

Key Takeaways

[3:13] What led Brendan to Catalyze.

[7:15] Brendan’s interest in alternative capital.

[13:43] The importance of underwritable track records and the ability to benchmark.

[17:33] Getting more institutional LPs to write those anchor checks.

[20:45] The opportunity for big foundations to step into alternative capital.

[25:00] Capital Access Lab.

[27:12] Catalyze’s approach of being an anchor for underrepresented founders.

[30:25] MRI vs. PRI.

[33:22] How Catalyze helps capital entrepreneurs.

[35:46] Catalyze’s Fund Fellowship Program.

[37:46] GP Runway fund.

[39:34] What managers learn at the Fellowship Program.

[53:09] What Brendan sees in the emerging space.

[55:09] Embracing the learning curve with innovative models.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Brendan: Catalyze | LinkedIn | Blueprint Local | Capital Access Lab

#21 - From Boat Mogul to Startup Funder with Justin Renfro of Wefunder

Tue, 05 Mar 2024 06:00:00 -0600

It’s a fun conversation this week with Justin Renfro, Director of Revenue-Based Financing at Wefunder. Justin shares his journey from a boat mogul with his company Chill Charters to working with thousands of entrepreneurs at Wefunder. Justin discusses his passion for building a diverse range of mission-driven companies, Wefunder’s community-based approach to drive value for founders and capital into businesses, and iterating the platform experience. He shares optimism for the next generation of impact investors and also touches upon the challenges of educating founders about alternative financing.

Key Takeaways

[2:29] Justin’s trajectory

[6:15] Wefunder overview and Justin’s role.

[12:10] Wefunder’s guidance to entrepreneurs.

[15:23] The challenge of explaining alternative finance to founders.

[18:17] The Wefunder founder experience.

[28:12] Overcoming educational challenges in alternative financing.

[33:20] The importance of patience and consistency.

[41:24] Mission-focused investing.

[44:11] Justin’s biggest takeaways from Wefunder.

Resources:
RBF Network
Keith’s Twitter
Keith’s Linkedin

Justin: Wefunder | LinkedIn | Chill Carters

Other links: Elephants, Not Unicorns | Peter Harris

#20 - Heavy Metal & RBF with Manolo Atala, CEO of Fairplay

Tue, 06 Feb 2024 06:00:00 -0600

Our guest this week brings enthusiasm and excitement to RBF which sets the stage for a great conversation. We welcome Manolo Atala, Co-Founder and CEO of Fairplay, a LatAm-focused revenue-based financing platform headquartered in Mexico. Since launching in 2019, Fairplay has originated $220M in revenue-based loans, built a team of 127 people, and made a huge impact in Latin America. Manolo shares how they’ve done that, and covers his diverse career journey before Fairplay, spanning advertising, entertainment, and the successful establishment of high-impact companies. He explains Fairplay's spin-out of Nazca Ventures and the company’s impact on financing and funding in Latin America. Manolo and I discuss balancing growth with responsible underwriting, and the beauty of transparency in strategic partnerships, and Manolo shares his vision of building Fairplay into a $1 billion company to improve access to capital in Latin America.

Key Takeaways

[1:45] Manolo’s path to entrepreneurship.

[5:38] Being a musician.

[10:19] Launching Fairplay in 2019 and expanding geographically.

[11:12] What happened to Clearco?

[13:21] Lending is hard to do well and easy to screw up.

[18:02] The embedded lending space.

[19:02] What we can learn from Metallica.

[24:14] The importance of straightforward dialog with investors.

[32:46] How not to pitch equity investors.

[40:15] Automating underwriting.

[47:05] Originating more than $220 million.

[48:54] The future of Fairplay.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Manolo: Fairplay | X | LinkedIn |

#19 - Building Tardigrades, Not Unicorns with Elliot Begoun of TIG Brands

Tue, 23 Jan 2024 06:00:00 -0600

This week, we welcome Elliot Begoun, a 30-year industry veteran, author, podcast host, and founder of TIG brands, and developer of the CARE funding structure. Elliot focuses on empowering entrepreneurs to be nimble and capital-efficient change-makers throughout their journey. He shares insights on building tardigrades, not unicorns (and why that’s a thing), and lessons from developing and deploying alternative funding structures that support tardigrades. We talk about why investors can be slow to adopt new funding structures asd well. Elliot also shares more about TIG's commitment to fostering a supportive community for entrepreneurs through a holistic approach and a constellation of services.

Key Takeaways

[1:45] Elliot’s background.

[2:13] Why Elliot started TIG Brands.

[3:49] How TIG developed its capital structures.

[6:39] Definition of a tardigrade and how it represents the brands TIG works with.

[8:37] Building a holistic ecosystem for entrepreneurs.

[10:53] Giving entrepreneurs optionality.

[13:29] The different funding structures TIG experimented with.

[21:38] The CARE agreement.

[22:44] Variable based redeemable equity.

[28:29] Alignment funding.

[33:59] Starting a rolling fund and TIG’s mindset of being a venture community.

[41:25] What has surprised Elliot throughout the journey.

[47:05] The future: building allyship.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin
Speaker Series

Elliot: Tig Brands | LinkedIn | X | Tig Talks Podcast | Documents

#18 - Step Into the Ring - Where RBF Investing and Boxing Collide with Melissa Withers, Founder and Managing Partner of RevUp

Tue, 12 Dec 2023 06:00:00 -0600

We welcome the dynamic Melissa Withers, Founder and Managing Partner of RevUp, an early mover and innovator in the RBF market. Melissa shares her unconventional journey into professional investing, emphasizing her commitment to remaining founder-aligned throughout. She sheds light on RevUp's founder-focused and non-dilutive model, empowering founders to have more control over their destinies. In the conversation, Melissa reflects on her early foray into entrepreneurship, embodying a "if you want it, build it yourself" ethos from a young age. She talks about her desire to provide entrepreneurs with the transparency and tools they need to build the businesses they envision.

At the end of the chat, Melissa shares a few of her favorite lessons from taking up boxing, revealing how it has aided her both inside and outside the ring.

Key Takeaways

[2:35] Melissa’s background

[3:58] What led Melissa to create RevUp.

[4:45] RevUp’s progress and journey.

[5:49] Melissa’s early background working in Cambridge during the dawn of biotech.

[9:38] Melissa’s Northstar.

[10:27] The opportunity to innovate the capital toolkit.

[11:37] Is capital innovation slow?

[20:20] How building RevUp has been similar to Melissa’s founder journey.

[24:16] An honest dialogue about what equity ownership really means.

[30:29] At RevUp, 60% of the portfolio is female-led companies and 30% are led by black or brown founders.

[39:43] How RevUp helps its portfolio companies.

[42:09] Melissa’s history in entrepreneurship.

[48:06] What taking up boxing has done for Melissa.

[52:40] The pros of Melissa’s unconventional path.

[55:24] Why RevUp would not exist if they tried to start it today.

[57:40] What’s next for Melissa and RevUp?

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin
Speaker Series

Guest: LinkedIn | RevUp Capital | | X | (Un)Founded podcast

#17 - When RBF Rears Its Beautiful Head with Nick Mathews, CEO of Mainvest

Tue, 28 Nov 2023 06:00:00 -0600

In this episode, we're joined by Nick Mathews, the founder and CEO of Mainvest, where to date he has funded 400+ small businesses around the country. Nick is a visionary leader dedicated to rebuilding the American dream by empowering communities and small businesses with the capital they need to thrive. Nick talks about how his pivotal role in launching Uber in Boston helped him gain first hand insights into the economic challenges faced by local communities. He founded Mainvest to address these issues, with a commitment to a community-driven approach funding small businesses across the U.S.. Nick discusses the concept of locality and how to scale, how companies go through the underwriting process, and what’s got him excited for the world of alternative capital in the future.

Key Takeaways

[2:56] Nick’s former career as one of the early employees at Uber and launching the Boston market.

[3:02] What seeing how Uber could work outside of major metropolitan areas meant to Nick.

[5:33] How new regulations and frameworks coming from The Jobs Act and crowdfunding enabled Nick to launch Mainvest

[8:26] Fun fact: Nick was planning on being a rockstar and went on a few mini tours, with almost all his bandmates eventually going into tech.

[10:21] Lessons Nick took from Uber to Mainvest.

[11:03] The concept of locality.

[13:03] Underwriting and the vetting process.

[24:50] Why local investors are open to funding local businesses, such as breweries and bakeries.

[28:22] Portfolio performance.

[30:12] Mainvest’s 400+ deals they have funded and why the model unlocks interest in more businesses that need capital.

[32:09] Customer acquisition strategy.

[32:10] Mainvests’ capital strategy and revenue share model.

[40:39] Building a bespoke financing platform.

[42:40] Geographic hot spots for SMB financing.

[47:31] What Nick saw at Uber that wouldn’t fly today.

[54:57] What fundamental truths have changed for Nick since starting Mainvest?

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Guest: Nick - Mainvest | X | LinkedIn

#16 - Building An Alternative Capital Juggernaut to $300B in Entrepreneurs Funded with Chris Atkins, President of Capital Finance and Capital Markets at C2FO

Tue, 14 Nov 2023 06:00:00 -0600

This episode features Chris Atkins, President of C2FO’s lending business, also called Capital Finance. Chris joined C2FO in 2018, taking on a pivotal role in spearheading a data-driven lending function. He successfully launched C2FO's working capital lending solutions for the company's extensive network of suppliers. Prior to his tenure at C2FO, Chris spent 12 years in the finance and private equity sectors, primarily focusing on smaller, lower-middle-market, and middle-market enterprises. Notably, he worked with Main Street Capital Corporation in Houston.

In our conversation, Chris provides insights into C2FO's remarkable journey, transforming from a startup based in Kansas City into a financial powerhouse that has raised over $400 million and accelerated invoices totaling $300 billion. Chris delves into C2FO's innovative approach and significant impact on a diverse array of businesses, from independent lawn mowing ventures to Fortune 10 corporations. Chris highlights the challenges and opportunities associated with adapting to the demands in the financial industry and how he thinks about automation and AI. He also emphasizes the the importance of teasing out the various threads of one's career over time, and how they can unexpectedly converge to create a unique and fulfilling professional journey.

Key Takeaways

[3:00] Chris’s start as a commercial banker in downtown Denver, and later pursued an MBA to get into private equity and private credit investing.

[5:28] The common thread of helping people and looking back to see how your past has impacted many different people and facets of life.

[7:40] What Chris learned helping the FDIC examine and close banks during the great recession.

[10:14] C2FO just crossed $300 billion in invoices and has raised $400-$500 hundred million.

[10:58] The two key ways in which C2FO finances businesses.

[14:18] The CapFin side of C2FO.

[17:25] Why the first iteration of the lending business didn’t achieve scale and how they fixed it..

[22:04] C2FO’s substantial impact on underfunded, minority owned businesses.

[23:53] First deal to a 72 year old who banks wouldn’t fund.

[25:02] The Schultz Family Foundation investing.

[27:18] Why CIM has been successful.

[40:40] Chris warns of predatory lending and the importance of understanding terms.

[41:49] The advance to being in the C2FO network.

[42:48] The dangers of innovating on credit.

[43:53] The original vision of C2FO founder and CEO Sandy Kemper.

[47:19] The role of AI in lending.

[48:14] AI will only take the jobs we hate.

[49:34] Chris aims to do more RBF.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

CIM

Guest: Chris - C2FO | LinkedIn | Twitter

#15 — Staying Calm: Building Something Unique in a Market That Rewards Same-ness with Tyler Tringas, GP and Founder of Calm Company Fund

Tue, 31 Oct 2023 06:00:00 -0500

We’re taking a deep breath this week, as we dive into a conversation with Tyler Tringas, General Partner and Founder of the Calm Company Fund. In this episode, Tyler shares with us two very important experiences: raising capital for the GP to prepare for scale; and going to institutional allocators to raise larger funds. Importantly, these experiences taught him critical lessons that any investor should pay attention to. Tyler also talks about the rebrand of Earnest Capital to Calm Fund, how Calm makes sure that the interests are aligned between funder and founder, the challenges Calm has overcome while scaling, and their steady, patient approach to growth.

Key Takeaways

[2:21] Rebranding Earnest Capital to the Calm Company Fund.

[3:08] Calm has invested in about 80 companies, but Tyler aims for thousands.

[3:45] The typical check size and use of funds.

[7:13] Tyler shares two examples where he wished he had the Calm fund in his own career.

[10:20] What’s more challenging - being an entrepreneur or a fund manager?

[13:30] Creating the shared earnings structure.

[14:06] How often do Calm’s portfolio companies go out and raise a subsequent round of capital?

[18:53] Building in public.

[21:09] Why Tyler still feels like an entrepreneur.

[22:02] Calm’s 80 companies and 200 mentors provide the opportunity for strong networking and connectivity.

[23:51] Tyler’s experience shifting into the institutional allocator market.

[24:46] Raising from large institutional allocators.

[25:08] Investing out of their fourth fund and keeping it small and fast on purpose.

[26:53] Shifting their approach away from the “interestingness”.

[32:33] How Tyler thought about the infrastructure he was building and how he approached it.

[33:17] Overcoming budget constraints.

[37:37] Raising capital for the GP, ad hiring the team, and building the technology.

[42:17] Making the tough choice to downsize and prioritizing patience over scaling and fund size.

[45:35] How they landed on the name Calm.

[46:12] Tyler’s predictions for the future.

[51:40] What has surprised Tyler the most is Calm’s growth, and how things are going better than expected.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Calm Fund

Tyler’s Speaker Series

Chisos Capital
Backstage Capital

Guest: Tyler - Website | X

#14 - There Are No Evil Financial Tools (and Being a Misfit) with Jonathan Bragdon, CEO of Capacity Capital

Tue, 17 Oct 2023 06:00:00 -0500

On today's show, we're joined by Jonathan Bragdon, the CEO of Capacity Capital. With a remarkable track record, Jonathan has started eight companies, invested in over 30 businesses, and been featured in CNN, TechCrunch, BusinessWeek, and Inc.com. He's also a driving force in the Southeast startup community and has founded Capacity, a strategic advisory firm, as well as Capacity Capital, an innovative investment fund supporting over 80% women, minority, or veteran-led founders. In the episode, Jonathan shares his entrepreneurial journey and insights into empowering underestimated founders with a unique approach to funding and strategic advice. He talks about the flaws in most funding approaches that he’s noticed along the way, how Capacity’s structure is different from a typical investment, and tips for building and harnessing a helpful network.

Key Takeaways

[3:34] How Jonathan got intertwined with the British Parliament and the Prince of Denmark.

[4:52] What led him to Capacity Capital.

[9:16] VC is a numbers game.

[10:20] How the redeemable equity structure works.

[14:22] Getting entrepreneurs up to speed on Capacity’s structure.

[16:50] Jonathan’s fundamental belief that different companies need different financing options to grow.

[17:14] A flaw in most funding companies.

[19:10] Who Capacity’s structure works well for, and who it doesn’t.

[21:07] How Jonathan thinks about return targets by deal and portfolio.

[22:44] Jonathan’s fundraising journey to build eight companies.

[25:50] Advice for emerging managers.

[30:44] Raising capital from the Capital Access Lab.

[31:28] The lack of a supportive network in the finance space.

[32:49] Jonathan’s predictions for RBF and alternative capital in the future.

[36:38] Building growth tools.
[39:30] There are no evil financial tools

[39:53] Focusing on the founder and the tools they need.

[41:03] Advice for investors that are aspiring fund managers.

[43:04] Jonathan’s surprise at the lack of recommendations and introductions at the investor level.

[44:55] Innovative finance project with Blueprint Local and Metro Finance Lab.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Blueprint Local
Founderpath

Tyler Tringas

Capacity Capital
Capital Access Lab

Builders + Backers

Guest: Jonathan: LinkedIn | Twitter

#13 - Making Credit Sexy with Mike Luebbers, Chief Credit Officer of Novel Capital

Tue, 03 Oct 2023 06:00:00 -0500

We make credit sexy(ish) this week with Mike Luebbers, the Chief Credit Officer of Novel Capital. We brought Mike onto the team at Novel after we worked closely with him as he led the underwriting on the credit facility we raised. We learned so much in that process that he was our first call when we decided it was time to hire a Chief Credit Officer. Mike is a world class credit investor, having been Chief Credit Officer at both Bridge Bank and Lighter Capital. In this conversation, which I pulled from the archives, Mike shares his unique point of view of how to do RBF deals (having done hundreds in his career). Mike also shares some great tips for folks to learn how to do think about alternative capital and RBF investing, how his experience in the tech sector inspired him to leverage tech for efficiency and creativity in underwriting, and the key metrics Mike looks at when thinking about an RBF deal.

Key Takeaways

[3:03] Mike’s career trajectory from commercial tech banking to RBF.

[5:30] The difference between the sales and. credit guy.

[6:05] Mike’s duties as the Chief Credit Officer role at Novel Capital.

[7:35] How Mike made the shift from bank to fintech startup.

[9:29] Where Mike sees RBF fitting in the landscape both with customers and companies.

[12:01] The key factors of predictability of revenue and customer base in determining the appropriate amount of RBF to provide.

[15:32] How RBF fits with the entrepreneur’s growth goals.

[19:32] The difference between Merchant Cash Advance and the typical RBF.

[21:20] The other key metrics Mike looks at when thinking about an RBF deal. What are the bare minimum criteria that he thinks are important?

[28:08] Deal killers in RBF and when it’s not a “no”, but a “not yet”.

[29:40] How do you know when to attribute it to luck vs. good underwriting?

[32:59] Q&A: What role does Mike see RBF playing post-pandemic recovery of non-software small businesses
[41:02] Companies that offer a profit share rather than a revenue share. Indie.vc, Earnest Capital.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin
Lighter Capital

Bridge Bank

Guest:

Mike: LinkedIn | Novel Capital

#12 - Going From Zero-to-One to 650 Deals Funded - BJ Lackland, Co-founder IBI Spikes Fund & Equal Capital, & former CEO of Lighter Capital

Tue, 19 Sep 2023 06:00:00 -0500

BJ Lackland brings 25 years of expertise in startup funding, with roles spanning CEO of Lighter Capital, Co-Founder of the Israeli RBF fund IBI Spikes Fund, and as a VC. A pioneer in RBF, BJ has funded over 350 companies since diving into the space in 2012. During his Lighter Capital tenure, he transformed the company from zero revenue to funding over 650 deals. Following his time at Lighter Capital, BJ provided advisory services to RBF providers and initiated two new funds. The first, IBI Spikes Fund, was Israel's inaugural RBF fund, focusing on deals ranging from $1 to $6 million. In September, BJ launched Equal Capital in the US, partnering with the Spikes Fund to offer RBF and term loans to American companies. In this conversation, BJ shares lessons he’s learned building RBF platforms, talks about why it’s a good time to be providing alternative capital in tech, and shares tips for great team building, and how at the end of the day, it’s all about people.

Key Takeaways

[2:53] How BJ made his way to Equal Capital from being a high school teacher in Taiwan.

[8:20] Equal Capital’s target company.

[12:04] Building the team at Lighter Capital and helping people grow

[13:30] Bringing RBF to Israel.

[17:35] Raising capital for the new funds.

[30:29] The fundamental problem we need to address.

[34:41] Why it’s a good time to be in the tech lending space.

[37:12] Taking alternative structures into main street businesses.

[41:18] At the end of the day, it's all about people.

[45:34] Competition and collaboration are good things.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin
Novel Capital

Ulu Ventures

MatterScale

Guest:

BJ: Equal Capital | BJ@EqualCapital.com | LinkedIn | Twitter | IBI Spikes Fund

#11 - Wefunder’s Community Rounds - How Every Customer Can Be An Angel Investor - Jonny Price, VP of Fundraising at Wefunder

Tue, 05 Sep 2023 06:00:00 -0500

Dive into this week's episode with Jonny Price, Wefunder's VP of Fundraising. A pioneering platform facilitating capital from both customers and investors, Wefunder's impact extends to over 1000 founders, including household names like Mercury Bank and Substack, boasting an impressive half a billion dollars raised from a community of over 300,000 investors. We cover lots of ground including Jonny's vision for an inclusive investment landscape that embraces not only VCs, but also retail investors and the everyday middle-class American.

Key Takeaways

[3:47] Jonny’s role as the VP of Fundraising at Wefunder.

[5:07] Wefunder has funded over 1000 companies now, including Mercury Bank, Substack, and Replit.

[6:22] Jonny’s vision for every B2C company to allocate part of their round for their customers invest.

[8:57] Why Jonny joined Wefunder in 2018.

[17:00] Wefunder stats.

[20:03] Examples of companies WeFunder funds.

[22:22] Why customers invest in a brand.

[28:15] Alternative capital landscape.

[32:02] Wefunder’s market share.

[38:22] Lessons learned.

[44:50] The current state of the crowdfunding market.

[43:57] Good founders get crushed by bad markets.

[50:58] Wefund’s future.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin
Novel Capital

Kiva

Founder Secrets Podcasts

Speaker Series

CommunityRound.com

The Intertwine Group
Wefunder Charter

Guest:

Jonny: LinkedIn | Twitter | jonny@wefunder.com

#10 - Microlending, CDFIs & RBF, Ruben Alonso - CEO of AltCap

Tue, 22 Aug 2023 06:00:00 -0500

In this episode, I'm thrilled to introduce Ruben Alonso, CEO of AltCap, a mission-driven community development financial institution (CDFI) operating across multiple states and based in Kansas City. Ruben has propelled AltCap's growth for 15 years, channeling over $300 million in alternative financing towards underserved communities and often-overlooked entrepreneurs. Noteworthy is Ruben's recent launch of AltCap's RBF loan product, opening new avenues for entrepreneurs. Ruben's unwavering dedication to democratizing capital access is deeply rooted in his family's own immigrant story from Cuba during the late 1950s and early 60s. Join us as Ruben provides valuable insights and firsthand experiences in advancing financial inclusivity and fostering small business triumph.

Key Takeaways

[2:35] The journey from corporate America, to the Peace Corps, to AltCap.

[4:55] How Ruben’s family roots from Cuba informs his desire to help build other businesses.

[7:51] How AltCap got started and how it has grown.

[11:56] What CDFIs are, and how they operate.

[16:30] Lending is a volume business, and maintaining the impact ethos.

[17:34] How they built and evolved their underwriting models.

[18:40] The character based lending approach.

[21:47] The benefits of using Ned’s end-to-end system to originate and manage loans.

[24:25] Examples of RBF deals they have done and where RBF can be a powerful financing tool.

[25:25] The KauffmanFoundation provided them a $5.3 million program related investment to launch an RBF loan fund to help prioritize entrepreneurs of color.

[27:43] The relationship between a funder and borrower.

[34:17] Lessons learned from building a tax credit program to $250M+.

[36:03] The psychology of RBF.

[38:48] Capitalizing AltCap for the future.

[40:29] What entrepreneurs should know about CDFIs.

[46:11] Ruben’s advice for building an alternative capital platform.

Resources:
RBF Network

Novel Capital

Ruby Jean’s Juicery

Guest:

Ruben: LinkedIn | AltCap | Twitter

#9 - From Underrepresented Square Peg to RBF Pioneer - Kim Folsom - Founder & CEO of Founders First Capital Partners

Tue, 08 Aug 2023 06:00:00 -0500

I am proud to welcome my friend and one of my favorite people in this community, Kim Folsom, a serial entrepreneur who has founded and grown seven companies and achieved multiple successful exits. Kim is the CEO and founder of Founders First Capital Partners, a revenue-based investment platform focused on empowering diverse-led small businesses with flexible funding for exponential growth. Additionally, Kim established Founders First CDC, a non-profit accelerator dedicated to helping small businesses expand and generate jobs. Kim's visionary leadership and commitment to supporting underserved communities make a significant impact in the business world. In this episode, Kim talks about her background as an entrepreneur, building Founders First, and lessons learned along the way.

Key Takeaways

[4:20] Founders First products and approach to funding diverse entrepreneurs.

[6:53] The RBF deal that Founders First and Novel did together as a syndicated loan.

[12:44] Why you shouldn’t fear the unknown.

[13:11] There has been a change in the speed of uptake and understanding in the market and people are more familiar with it, but concrete data about the performance and what is possible is still lacking.

[16:44] How an asset class becomes institutional.

[20:22] Kim’s experience starting a company as a Black woman in the 1990’s, and how it’s evolved over time and the 7 businesses she built.

[23:03] Funding a company with debt vs equity, and why it matters.

[28:40] Accelerating through partnerships.

[29:09] Kim’s tips for raising capital for RBF.

[32:40] The art of turning down investors.

[36:10] How did Kim become interested in RBF?

[38:00] Lessons learned from Mr. Wonderful from Shark Tank.

[43:42] What Kim is excited about in the future.

Resources:
RBF Network

Novel Capital

Speaker Series with Kim

Guest:

Kim: LinkedIn | Founders First

OnShore Technology - the company Novel and Founders First jointly funded with RBF

#8 - Human Potential - The Next Asset Class with Will Stringer - Founder & CEO of Chisos Capital

Tue, 25 Jul 2023 06:00:00 -0500

I’m pleased to welcome back Will Stringer, the Founder and CEO of Chisos Capital. Will invests in people — entrepreneurs, creators, athletes - using an Income Share Agreement at the earliest stages of business ideation and formation. Join me as I explore Will's journey, from his experience in the investment space to his innovative work at Chisos, supporting entrepreneurs and revolutionizing the investment landscape. Along the way, Will talks about Chisos' unique investment model, the transformative power of providing individuals with access to unique and durable capital solutions, and how they structure their deals to provide maximize the probability of a successful outcome for everyone.

Key Takeaways

[2:26] Will’s background in a more traditional investment space.

[4:08] More about Chisos and how they invest in an individual as a business.

[4:50] How Will came across the idea of an income share agreement.

[8:15] Will’s inspiration for Chisos, and allowing an investor to invest in people at the earliest stages, betting on them as individuals.

[12:29] Chisos allows an investor to provide an individual capital on flexible terms.

[14:40] Chisos has done 56 deals since May 2020.

[15:08] How Chisos structures its deals. .

[16:10] The evolution of Chisos capital stack.

[19:25] More on capital stack and the evolution to fintech.

[20:52] How do entrepreneurs find Chisos and how do they source their deals?

[20:59] Use case: investing in a minor league baseball player..

[32:03] Will gives a shout out to a company in their portfolio now, apparel company Fox & Robin.

[33:35] How the income share agreement survives business failure..

[36:31] What kind of pushback Will gets from both entrepreneurs and downstream investors when he talks to them out in the market.

[42:00] The importance of storytelling in raising capital.

[44:47] What is the future for Chisos?

[48:35] Opening Chisos up to anyone via their INSPIRR platform.

Resources:
RBF Network

Novel Capital

Will’s Original Episode from December 3 2021

Guest:

Will: Chisos | LinkedIn | IG

#7 - Capital Can Be Your Strategic Advantage - Brian Parks, Co-Founder and CEO of Bigfoot Capital

Tue, 11 Jul 2023 06:00:00 -0500

This week I sit down with Brian Parks, co-founder and CEO of Bigfoot Capital, a leading lender for established B2B software companies. With 15 years of experience as an entrepreneur in early-stage software companies and a background as an investment banker, Brian founded Bigfoot in 2017. He has successfully raised capital from various sources, including angels, VCs, and credit funds, and has deployed capital both as a banker and a non-bank lender. Hear Brian's unique journey, why he decided to launched an alternative path to support B2B software companies that often struggle to secure traditional funding. We also get into the bootstrap origin story of Bigfoot and how he organically built the business.

Key Takeaways

[8:40] What led to the formation of Bigfoot in 2017.

[12:44] Who Brian funds at Bigfoot - established businesses.

[14:52] What he means by “established” and thinking of the borrowers as small businesses.

[17:17] Optionality as an operator.

[17:19] What is the problem that Bigfoot is fixing in the ecosystem?

[19:55] Bigfoot’s unique loan structure and being strategic with your capital.

[28:12] Solving the sourcing problem.

[30:54] Creating an ecosystem of content through the Bigfoot newsletter.

[31:20] The key lessons Brian learned along the way (so far).

[37:53] Bigfoot’s future as a specialty finance company.

[40:12] Digging into the fundraising journey and Bigfoot’s lending stack.

[48:10] Brian’s expectations of broader market adoption by this point.

Resources:
RBF Network
Our first Speaker Series with Brian - Aug. 27, 2019

Novel Capital

Keith’s Twitter
RBFN Newsletter

Guest:

Brian: Bigfoot Capital | LinkedIn | Newsletter

#6 - Technology is Changing Alternative Lending & Private Credit - David Silverstein, CEO and Founder of Ned

Tue, 27 Jun 2023 06:00:00 -0500

Today, we have a special guest who I believe is on the front edge of a revolution in the Alternative Capital space: David Silverstein, CEO and founder of Ned, a software platform that enables online loan origination and management for RBF and other lenders. With Ned’s revenue-based approach, lenders can scale their operations and more quickly deploy new financial products.

Key Takeaways

[3:00] Dave’s path from politics and tech to alternative finance.

[10:54] How Ned allows lenders to deploy more capital, so that they can scale their impact more quickly.

[18:23] Common challenges across lenders in the alternative capital space today.

[18:50] Marketing matters.

[22:43] How Ned works.

[33:16] Technology’s role in lending.

[34:57] Looking to the future of the lending and technology landscape.

Resources:
RBF Network

Novel Capital

Keith’s twitter (@keithkcvc)

Guest:

Dave: Ned | @Dave_Silver1

#5 - Hidden Outliers: How An Alternative Capital OG & Philosopher Funds Founders in Overlooked Markets - Jamie Finney, Co-Author at Innovative Finance Newsletter and Cofounder & GP at Greater Colorado Venture Fund and Kokopelli Capital

Tue, 13 Jun 2023 06:00:00 -0500

In a packed episode, we welcome my friend Jamie Finney, co-founder of Kokopelli Capital and the Greater Colorado Venture Fund, and alternative capital philosopher. He is also one of the alternative capital OGs. Jamie shares his journey from entrepreneur to a capital raising road trip to raising $40 million across two funds to support more funding options for entrepreneurs. He discusses his vision for the future of early stage funding and the Innovative Finance Newsletter, and how including smaller and rural towns in startup funding is critical for the future. Also, Jamie and I recorded an interview back in 2019 that you can find in the show notes. It’s amazing to track his journey from there!

Key Takeaways

[4:21] Jamie talks about what led to him co-founding Kokopelli Capital.

[7:21] Fundraising for the first fund, and the difficulties of hitting up LPs who weren’t familiar with the venture strategy and approach.

[7:39] Securing the backing of the State of Colorado, and what that meant for credibility.

[14:26] Becoming “the alternative capital guy”.

[17:44] Getting entrepreneurs to understand alternative capital deal structures.

[22:10] The Innovative Finance Newsletter project.

[29:00] The importance of simplifying and demystifying things for founders and taking away the dizzying of too many options.

[41:22] Who is currently catching Jamie’s interest in the alternative capital space?

[42:46] Why what you stand for is as important as the money you deploy as an investor.

[51:02] There's just no reason that other financial products don't exist and aren't widely used.

Resources:
RBF Network

Novel Capital

First RBFN interview with Jamie- October 19, 2019

Guest:

Jamie: LinkedIn | Twitter| Innovative Finance Newsletter

#4 - Lies Founders Are Told And The Founder-Funding Disconnect - Tessa Flippin of Capitalize VC

Tue, 30 May 2023 05:00:00 -0500

It’s an insightful episode this week while we welcome Tessa Flippin, Founder of Capitalize VC, as she shares her journey from startup founder into the world of alternative capital funding. Tessa describes the unique approach and deal structure of Capitalize VC, which enables her to do more deals than typical VC, and to support diverse founders. Along the way, Tessa shares what it’s like to raise a fund as a black woman, gives practical advice for those looking to get into the world of alternative capital investing and VC, and shares her perspective on why starting a company is more challenging than starting a fund.

Key Takeaways

[4:21] At TechNexus Tessa started investing in seed-stage enterprise technology companies and learning the ropes of being an investor on the other side of the table.

[4:44] The reason Tessa wanted to be a founder was to make an impact, particularly on underserved and diverse communities globally.

[6:02] Tessa talks about working to bring more diverse LPs to the table who haven't invested in alternative capital and venture capital funds before, capitalizing on their involvement, and how that will build generational wealth for diverse investors.

[8:38] Tessa discusses figuring out how to run an alternative capital and venture fund, and how her previous experience helped her. When Tessa decided to launch her own fund, she had the tools and knowledge from TechNexus, which accelerated the process.

[13:00] Why starting a company is harder than starting a fund, from Tessa’s perspective.

[17:01] From her experience as a founder, Tessa instills valuable lessons to the founders she funds at Capitalize VC

[19:50] At Capitalize, they focus on the intersection of e-commerce, infrastructure, and consumer brands, investing in both sides of the e-commerce equation.

[23:04] Tessa talks about the deal structure, including the way they structure their RBF deals, and how they choose between structures.

[28:40] Revenue-Based Financing fills the funding gap and benefits both sides of the equation.

[38:42] Tessa discusses where they find their deals geographically and the decision to work in markets outside of major tech hubs.

[40:52] Tessa’s mission is to increase access to capital and invest in diverse founders. Here’s what she looks for in a company.

[42:04] How are entrepreneurs doing in this rapidly (and often weirdly) shifting world?

[47:07] Who does Tessa admire both on the FinTech and alternative capital funding side?

[50:04] Tessa gives her prediction for what will happen over the next 3-5 years for founders like those she’s working with today.

[55:02] What are the biggest lies that most founders are typically being fed?

Resources:
RBF Network

Novel Capital

Twitter: @RBF_Network | Keith Harrington

Guest:

Tessa: LinkedIn | Twitter

Capitalize VC

#3 - Funding the Funders — Jacob Haar, Managing Partner at CIM

Mon, 15 May 2023 05:00:00 -0500

Today’s Guest

Today’s guest is Jacob Haar, one of the most active allocators funding alternative capital investors around the world. He is Co-founder and Managing Partner at Community Investment Management, a strategic debt provider to several fintech lending platforms.

In this episode, Jacob shares some really useful lessons and insights from his vantage point as a funding source for alternative capital and RBF investors. Learn how he evaluates the platforms he works with, the cycles that new investors and lenders go through as they work to scale, and he even touches on the controversy between MCA and RBF providers.

Key Takeaways

[3:50] Jacob talks about his background (including his time living in the Middle East) and how he started CIM

[9:40] Funding the platforms that fund the entrepreneurs.

[12:40] Jacob’s view on new entrants to the market.

[15:12] The key element to building a successful funding platform.

[16:12] The new wave of digital-first lenders.

[17:53] What allows a funding platform to grow sustainably?

[25:20] The most important data points Jacob considers when choosing the next platform to work with.

[28:35] Jacob breaks down how he makes decisions as a lender.

[32:50] Why is the term RBF being adopted by MCA providers?

[35:32] What needs to be done for RBF market to really grow?

[37:22] What challenges Jacob foresees in the future. (Get ready to see a significant spike in losses).

[40:28] The alternative capital innovations coming in the next three to five years and how to compete as an investor.

[42:30] The importance of having access to revenue data.

[43:53] What fintech platforms should know about working with Jacob and CIM.

Resources:
RBF Network

Novel Capital

Guest:

Jacob Haar

Follow Jacob on Twitter

CIM

#2 - Earning the Right To Be An Investor with Melissa Bradley, Founder of 1863 Ventures.

Tue, 02 May 2023 05:00:00 -0500

Today’s Guest

Today, Melissa Bradley from 1863 Ventures joined me. Melissa is the managing partner of 1863 Ventures with more than 20 years of entrepreneurship, investment, and leadership experience. Melissa has served as a Presidential Appointee under Presidents Clinton and Obama. Under Clinton, she served as Financial Regulatory Affairs Fellow at the Department of Treasury, Office of Thrift Supervision, where she researched the impact of welfare reform and micro-enterprise lending on the financial industry.

Melissa is also a professor at Georgetown University McDonough School of Business, where she teaches impact investing, social entrepreneurship, and innovation.

Key Takeaways

Melissa’s why [2:18]

The pain of shutting down a company…and the joy of selling another [6:43]

Becoming a Presidential Fellow [9:01]

Three fundamental breaks in the entrepreneurial system [11:58]

How 1863 Ventures was born [14:51]

1863 today [20:26]

Why RBF? [22:09]

How to help a portfolio of growing companies [28:01]

What makes a good CEO? [30:01]

What is success for 1863? [32:15]

A former regulator’s view on the collapse of SVB [35:47]

The hardest thing about investing [44:41]

The biggest lesson from the RBF Journey [48:11]

What is next for 1863? [50:14]

Timeless Advice [54:22]

"Be transparent about what is and isn’t working. Don’t be afraid to fail or to be wrong. Be rigorous and be honest."

Resources:
RBF Network

Novel Capital

Guest:

Melissa Bradley

1863 Ventures

#1 - Funding Main Street & Bagels with Ben Lozano

Sat, 15 Apr 2023 05:00:00 -0500

Today’s Guest
I’m excited to welcome to our show Ben Lozano, CEO and Co-Founder of SMBX. I asked Ben to join The RBFN Podcast because we wanted to explore the landscape of innovative funders who are providing capital to traditional small businesses - what I often call Main Street businesses - which is a market that hasn't seen much innovation in recent years. Ben built SMBX to solve this problem and to help traditional small businesses get the capital they need to thrive and grow. We talk about his background, why he built SMBX and how, and what the future of small business funding looks like.

Key Takeaways
Ben’s Start in Finance [1:50]

Why Ben Launched SMBX and the Problems It Solves [3:39]

SMBX Customer Examples and Stories [7:38]

Happy Customers Lead to New Customers [12:44]

How the Small Business Bond Works [15:46]

How Ben Funded the SMBX at the Earliest Stages [32:57]

Raising Venture Capital [34:33]

What’s Next for SMBX [39:30]

Resources:
Revenue Based Financing Network
Novel Capital
SBA
Berkeley SkyDeck Accelerator
Group 11 Venture Fund

Guest:
Ben Lozano
Email Ben at: Benjamin@TheSMBX.com
TheSMBX.com
Of Synthetic Finance: Three Essays of Speculative Materialism, by Benjamin Lozano

Other Links
Emily Winston’s Boichik Bagels

Humphrey Slocombe Ice Cream

Vegetarian taco restaurant Chaia