Funded Founder Fridays: E3

Welcome to another funded founder Welcome to another funded founder Fridays. This is our third episode. Um Fridays. This is our third episode. Um Fridays. This is our third episode. Um today we'll be t the title of our today we'll be t the title of our today we'll be t the title of our episode is invest like a VC. episode is invest like a VC. episode is invest like a VC. >> Yeah. [laughter] >> Yeah. [laughter] >> Yeah. [laughter] >> Welcome to uh the third episode. This is >> Welcome to uh the third episode. This is >> Welcome to uh the third episode. This is an exciting episode for, you know, for an exciting episode for, you know, for an exciting episode for, you know, for many reasons because we're going to have many reasons because we're going to have many reasons because we're going to have a conversation about how to think and a conversation about how to think and a conversation about how to think and invest like a venture capital and when invest like a venture capital and when invest like a venture capital and when and where you're going to get become and where you're going to get become and where you're going to get become successful and when and where we're successful and when and where we're successful and when and where we're going to fail. going to fail. going to fail. >> Yes. And here at funded founder Fridays, >> Yes. And here at funded founder Fridays, >> Yes. And here at funded founder Fridays, we are making space for founders to ask we are making space for founders to ask we are making space for founders to ask questions about the startup journey. Uh questions about the startup journey. Uh questions about the startup journey. Uh in each episode we discuss the topic of in each episode we discuss the topic of in each episode we discuss the topic of the month and the topic of this month is the month and the topic of this month is the month and the topic of this month is community building um and we talk about community building um and we talk about community building um and we talk about something that's relevant for startup something that's relevant for startup something that's relevant for startup founders. So today we're talking about founders. So today we're talking about founders. So today we're talking about investing like a VC uh or at least investing like a VC uh or at least investing like a VC uh or at least understanding the mindset of a VC when understanding the mindset of a VC when understanding the mindset of a VC when preparing for investment. Um, and so preparing for investment. Um, and so preparing for investment. Um, and so we're flipping the table a little bit.

we're flipping the table a little bit. we're flipping the table a little bit. We're we're instead of asking uh We're we're instead of asking uh We're we're instead of asking uh founders what they're what they're going founders what they're what they're going founders what they're what they're going through or or how they're moving through through or or how they're moving through through or or how they're moving through the valley of death, we're going to ask the valley of death, we're going to ask the valley of death, we're going to ask uh investors uh how they think in uh investors uh how they think in uh investors uh how they think in particular Ben here. particular Ben here. particular Ben here. Uh and what separates great investors Uh and what separates great investors Uh and what separates great investors from average ones um and why some might from average ones um and why some might from average ones um and why some might miss some opportunities. miss some opportunities. miss some opportunities. um and how founders can learn to be to um and how founders can learn to be to um and how founders can learn to be to become investable. become investable. become investable. >> Mhm. >> Mhm. >> Mhm. So there's a difference there's a big So there's a difference there's a big So there's a difference there's a big difference between institutional difference between institutional difference between institutional investors like VCs and individuals that investors like VCs and individuals that investors like VCs and individuals that they invest their own money. Uh so if they invest their own money. Uh so if they invest their own money. Uh so if you want to think like a VC you need to you want to think like a VC you need to you want to think like a VC you need to understand how VC operates. So the first understand how VC operates. So the first understand how VC operates. So the first thing people sometimes mistake a VC with thing people sometimes mistake a VC with thing people sometimes mistake a VC with an angel investor. People think VC are an angel investor. People think VC are an angel investor. People think VC are investing their own money which is not investing their own money which is not investing their own money which is not the the case. VCs are uh firms and the the case. VCs are uh firms and the the case. VCs are uh firms and organizations that they have expert organizations that they have expert organizations that they have expert people in investment in business and in people in investment in business and in people in investment in business and in building relationships.

building relationships. building relationships. They uh raise fund. They're like exactly They uh raise fund. They're like exactly They uh raise fund. They're like exactly the same as startups. So they raise fund the same as startups. So they raise fund the same as startups. So they raise fund but they raise big money. So they go and but they raise big money. So they go and but they raise big money. So they go and raise hundreds of millions of dollars raise hundreds of millions of dollars raise hundreds of millions of dollars and then they invest those money in very and then they invest those money in very and then they invest those money in very you know high potential startups you know high potential startups you know high potential startups uh with the hope of one of those like uh with the hope of one of those like uh with the hope of one of those like two of those startups become a unicorn two of those startups become a unicorn two of those startups become a unicorn and then they get the you know big and then they get the you know big and then they get the you know big upside investing on those companies. So upside investing on those companies. So upside investing on those companies. So that's a that's a difference like that's that's a that's a difference like that's that's a that's a difference like that's a that's a main difference between being a that's a main difference between being a that's a main difference between being a VC firm a VC firm a VC firm uh you know uh rather than being an uh you know uh rather than being an uh you know uh rather than being an individual angel investor. So if I'm a individual angel investor. So if I'm a individual angel investor. So if I'm a VC because I'm doing institutional VC because I'm doing institutional VC because I'm doing institutional investment I'm working with other investment I'm working with other investment I'm working with other people's money now I have this duty of people's money now I have this duty of people's money now I have this duty of uh taking care of other people's money. uh taking care of other people's money. uh taking care of other people's money. I need to do like due diligence. I need I need to do like due diligence. I need I need to do like due diligence. I need to make sure the money is invested in to make sure the money is invested in to make sure the money is invested in the companies that they have the highest the companies that they have the highest the companies that they have the highest potential. Everything for VC is number.

potential. Everything for VC is number. potential. Everything for VC is number. >> They don't look at your passion. They >> They don't look at your passion. They >> They don't look at your passion. They don't look at your uh you know idea. don't look at your uh you know idea. don't look at your uh you know idea. They don't look at your uh you know how They don't look at your uh you know how They don't look at your uh you know how like this is the next big state big like this is the next big state big like this is the next big state big thing let's go. No for VC it's just all thing let's go. No for VC it's just all thing let's go. No for VC it's just all about numbers. about numbers. about numbers. >> Okay. Reese's don't have any passion in >> Okay. Reese's don't have any passion in >> Okay. Reese's don't have any passion in some of them do some of them do but most some of them do some of them do but most some of them do some of them do but most of them they first look at a business of them they first look at a business of them they first look at a business not an idea that's the biggest not an idea that's the biggest not an idea that's the biggest difference there are VCs that they are difference there are VCs that they are difference there are VCs that they are interested in ideas there are VCs that interested in ideas there are VCs that interested in ideas there are VCs that they are interested in earlier stage they are interested in earlier stage they are interested in earlier stage startups but majority of VCs are looking startups but majority of VCs are looking startups but majority of VCs are looking at a business looking at your historical at a business looking at your historical at a business looking at your historical uh tractions uh tractions uh tractions looking at your projections looking at your projections looking at your projections and they wanted to know why you're going and they wanted to know why you're going and they wanted to know why you're going to become that unicorn company and for to become that unicorn company and for to become that unicorn company and for them the return and the exit is the most them the return and the exit is the most them the return and the exit is the most important thing. important thing. important thing. >> So that's the difference. If you are a >> So that's the difference. If you are a >> So that's the difference. If you are a founder and you wanted to uh get a VC, founder and you wanted to uh get a VC, founder and you wanted to uh get a VC, you need to make sure you have a healthy you need to make sure you have a healthy you need to make sure you have a healthy exit strategy so you can give your VCs a exit strategy so you can give your VCs a exit strategy so you can give your VCs a good return. That's the biggest good return. That's the biggest good return. That's the biggest difference.

difference. difference. I've seen like a lot of founders that I've seen like a lot of founders that I've seen like a lot of founders that they are like, "Oh, you know, I just they are like, "Oh, you know, I just they are like, "Oh, you know, I just don't want to raise too, you know, too don't want to raise too, you know, too don't want to raise too, you know, too much money. This company is going to be much money. This company is going to be much money. This company is going to be like a $10 million company." That's like a $10 million company." That's like a $10 million company." That's true. That's your passion. We understand true. That's your passion. We understand true. That's your passion. We understand that. But how do you uh return money to that. But how do you uh return money to that. But how do you uh return money to your VCs and they return money to their your VCs and they return money to their your VCs and they return money to their investors and the limited partner? We investors and the limited partner? We investors and the limited partner? We were going to, you know, talk about that were going to, you know, talk about that were going to, you know, talk about that later. If you're just $10 million, like later. If you're just $10 million, like later. If you're just $10 million, like if your goal is 10 million exit, if your goal is 10 million exit, if your goal is 10 million exit, >> how the VC is getting their money, >> how the VC is getting their money, >> how the VC is getting their money, >> right? >> right? >> right? >> That's the difference, >> That's the difference, >> That's the difference, >> right? >> right? >> right? >> Well, so many you said so many things >> Well, so many you said so many things >> Well, so many you said so many things [laughter] [laughter] [laughter] all at once. Um, talk a little bit about all at once. Um, talk a little bit about all at once. Um, talk a little bit about what that actually looks like then. What what that actually looks like then. What what that actually looks like then. What what specifically? So when we talk about what specifically? So when we talk about what specifically? So when we talk about investing like a VC, what does it what investing like a VC, what does it what investing like a VC, what does it what kind of things are are investors like kind of things are are investors like kind of things are are investors like what what are the signals that they're what what are the signals that they're what what are the signals that they're looking for in startups looking for in startups looking for in startups >> to know to know that um that they that >> to know to know that um that they that >> to know to know that um that they that they are investable?

they are investable? they are investable? >> So VCs are investing in companies. >> So VCs are investing in companies. >> So VCs are investing in companies. So people ask So people ask So people ask what do you mean by investing in what do you mean by investing in what do you mean by investing in company? So basically you need to be an company? So basically you need to be an company? So basically you need to be an organization. organization. organization. you need to show traction. So the you need to show traction. So the you need to show traction. So the signals so if if you are an early stage signals so if if you are an early stage signals so if if you are an early stage startup um the chance of finding an startup um the chance of finding an startup um the chance of finding an early stage start VC that invests in early stage start VC that invests in early stage start VC that invests in early stage startup is very low. Most of early stage startup is very low. Most of early stage startup is very low. Most of them are um investing in a company that them are um investing in a company that them are um investing in a company that they have uh an idea that now is has they have uh an idea that now is has they have uh an idea that now is has became a product. the product became uh became a product. the product became uh became a product. the product became uh something that now have demand and they something that now have demand and they something that now have demand and they have a product market fit. have a product market fit. have a product market fit. So the most of VCs they look for product So the most of VCs they look for product So the most of VCs they look for product market fit and there is a revenue um market fit and there is a revenue um market fit and there is a revenue um element in there. So if you want to element in there. So if you want to element in there. So if you want to think about VCs think about VCs think about VCs >> you should most of them series A VCs >> you should most of them series A VCs >> you should most of them series A VCs most of them are fuel for you to grow.

most of them are fuel for you to grow. most of them are fuel for you to grow. They don't pay you to uh for your They don't pay you to uh for your They don't pay you to uh for your salary. They don't pay you to uh build salary. They don't pay you to uh build salary. They don't pay you to uh build the product. Again, most of them series the product. Again, most of them series the product. Again, most of them series ABCs, but uh they pay you to grow. ABCs, but uh they pay you to grow. ABCs, but uh they pay you to grow. >> Okay. >> Okay. >> Okay. Okay. Um and so what kind of metrics are Okay. Um and so what kind of metrics are Okay. Um and so what kind of metrics are they looking for before they looking for before they looking for before um revenue even exists? um revenue even exists? um revenue even exists? >> Demand, >> Demand, >> Demand, >> if you ask me, demand. >> if you ask me, demand. >> if you ask me, demand. >> Um you can have the best innovative >> Um you can have the best innovative >> Um you can have the best innovative solution product out there. If if no one solution product out there. If if no one solution product out there. If if no one wants that product, you're not going to wants that product, you're not going to wants that product, you're not going to generate any revenue. So, first demand, generate any revenue. So, first demand, generate any revenue. So, first demand, >> second, willingness to pay. So, somebody >> second, willingness to pay. So, somebody >> second, willingness to pay. So, somebody should should really want to pay for should should really want to pay for should should really want to pay for this product and the the the size of the this product and the the the size of the this product and the the the size of the market. market. market. >> Okay. Um tell me a little bit about deal >> Okay. Um tell me a little bit about deal >> Okay. Um tell me a little bit about deal flows and how to that's my favorite flows and how to that's my favorite flows and how to that's my favorite topic. So institutional uh uh investors topic. So institutional uh uh investors topic. So institutional uh uh investors uh and especially VCs they create a uh and especially VCs they create a uh and especially VCs they create a process that they source a startups and process that they source a startups and process that they source a startups and you know guys just think about it to a you know guys just think about it to a you know guys just think about it to a VC startup is a deal and that's one VC startup is a deal and that's one VC startup is a deal and that's one thing many people don't understand. So thing many people don't understand. So thing many people don't understand. So when VC is talking about like yeah let's when VC is talking about like yeah let's when VC is talking about like yeah let's just look at this deal they mean let's just look at this deal they mean let's just look at this deal they mean let's look at this startup. So a DFO is the look at this startup. So a DFO is the look at this startup. So a DFO is the process of screen you know sourcing process of screen you know sourcing process of screen you know sourcing screening performing due diligence screening performing due diligence screening performing due diligence having conversation looking at the

having conversation looking at the having conversation looking at the opportunity and then making an opportunity and then making an opportunity and then making an investment decision. investment decision. investment decision. >> It is a very defined process >> and and that's something that's written >> and and that's something that's written out. It's something that's communicated. out. It's something that's communicated. out. It's something that's communicated. It's something that um how how do how It's something that um how how do how It's something that um how how do how does a startup show that to the does a startup show that to the does a startup show that to the investor? investor? investor? >> Yeah, absolutely. So the default starts >> Yeah, absolutely. So the default starts >> Yeah, absolutely. So the default starts with the outreach. Each VC has its own with the outreach. Each VC has its own with the outreach. Each VC has its own outreach. So the way they communicate is outreach. So the way they communicate is outreach. So the way they communicate is the you know is just based on how they the you know is just based on how they the you know is just based on how they that firm communicate. So a lot of VCs that firm communicate. So a lot of VCs that firm communicate. So a lot of VCs they have scouts they go out you know they have scouts they go out you know they have scouts they go out you know they go to different meetings they hold they go to different meetings they hold they go to different meetings they hold uh you know workshops and you know they uh you know workshops and you know they uh you know workshops and you know they have programs you know like you see you have programs you know like you see you have programs you know like you see you know how invest like a VC 101 right? So know how invest like a VC 101 right? So know how invest like a VC 101 right? So you go through there and they they you go through there and they they you go through there and they they educate you. So that's the first part educate you. So that's the first part educate you. So that's the first part and then uh most of VCs are flying under and then uh most of VCs are flying under and then uh most of VCs are flying under the radar you know so it's just a lot of the radar you know so it's just a lot of the radar you know so it's just a lot of time the the the deal flow starts with time the the the deal flow starts with time the the the deal flow starts with warm introduction someone says look look warm introduction someone says look look warm introduction someone says look look at this startup uh they're doing cool at this startup uh they're doing cool at this startup uh they're doing cool things you know what do you think and things you know what do you think and things you know what do you think and then um uh a lot of them are just based then um uh a lot of them are just based then um uh a lot of them are just based on the reputation so you know in in on the reputation so you know in in on the reputation so you know in in Houston we have Mercury fund for example Houston we have Mercury fund for example Houston we have Mercury fund for example >> right So you know this is the VC that >> right So you know this is the VC that >> right So you know this is the VC that you can reach out for these type of you can reach out for these type of you can reach out for these type of deals. But a lot of time they don't even deals. But a lot of time they don't even deals. But a lot of time they don't even you know communicate because uh a VC can you know communicate because uh a VC can you know communicate because uh a VC can get hundreds of requests a month and

get hundreds of requests a month and get hundreds of requests a month and they just invest probably in one of them they just invest probably in one of them they just invest probably in one of them or not [laughter] you know so VCs are or not [laughter] you know so VCs are or not [laughter] you know so VCs are not the ones that are going to uh you not the ones that are going to uh you not the ones that are going to uh you know advertise what they do right know advertise what they do right know advertise what they do right >> they're hiding somewhere you need to >> they're hiding somewhere you need to >> they're hiding somewhere you need to find them. [laughter] find them. [laughter] find them. [laughter] We need we need a VC locator app. We need we need a VC locator app. We need we need a VC locator app. >> Yeah. Yeah. Yeah. [laughter] >> Yeah. Yeah. Yeah. [laughter] >> Yeah. Yeah. Yeah. [laughter] >> That would be great. >> That would be great. >> That would be great. >> Yeah. >> Yeah. >> Yeah. >> That's a lot that VCs have to sort >> That's a lot that VCs have to sort >> That's a lot that VCs have to sort through, right? Like through, right? Like through, right? Like >> the research that they have to do, >> the research that they have to do, >> the research that they have to do, understanding the market in each city understanding the market in each city understanding the market in each city and how that affects different things. and how that affects different things. and how that affects different things. That's a lot to take into account to That's a lot to take into account to That's a lot to take into account to then like build a portfolio, right? then like build a portfolio, right? then like build a portfolio, right? Because that's what you're doing. Because that's what you're doing. Because that's what you're doing. >> Absolutely. >> Absolutely. >> Absolutely. >> You build a portfolio. >> You build a portfolio. >> You build a portfolio. >> Um so each VC, each fund has its own >> Um so each VC, each fund has its own >> Um so each VC, each fund has its own thesis. Basically the thesis says where thesis. Basically the thesis says where thesis. Basically the thesis says where do you uh invest a VC fund uh form that do you uh invest a VC fund uh form that do you uh invest a VC fund uh form that thesis to guide the investment. So they thesis to guide the investment. So they thesis to guide the investment. So they say like you know we are a fund and then say like you know we are a fund and then say like you know we are a fund and then you know there's a size and you know there's a size and you know there's a size and interestingly if you're building a $50 interestingly if you're building a $50 interestingly if you're building a $50 million fund is a micro fund because million fund is a micro fund because million fund is a micro fund because everything in VC is hundreds of millions everything in VC is hundreds of millions everything in VC is hundreds of millions and billions. Right.

and billions. Right. and billions. Right. >> Right. Um so basically they create this >> Right. Um so basically they create this >> Right. Um so basically they create this uh this thesis which uh defines where uh this thesis which uh defines where uh this thesis which uh defines where they are uh uh investing and then in they are uh uh investing and then in they are uh uh investing and then in what type of companies what stages what what type of companies what stages what what type of companies what stages what industries industries industries >> what are the requirements right and >> what are the requirements right and >> what are the requirements right and based on that thesis they make decisions based on that thesis they make decisions based on that thesis they make decisions so now when you have this thesis there so now when you have this thesis there so now when you have this thesis there are some there are there are things that are some there are there are things that are some there are there are things that are standard so they hire MBA from like are standard so they hire MBA from like are standard so they hire MBA from like the best universities. So those people the best universities. So those people the best universities. So those people go through each deal. They start go through each deal. They start go through each deal. They start you know researching the founders. They you know researching the founders. They you know researching the founders. They research the company. They go to your research the company. They go to your research the company. They go to your LinkedIn profile. They go to your LinkedIn profile. They go to your LinkedIn profile. They go to your website. They look at the team you know website. They look at the team you know website. They look at the team you know they look at the the product and then they look at the the product and then they look at the the product and then they do their own due diligence on the they do their own due diligence on the they do their own due diligence on the market you know on the demand. They look market you know on the demand. They look market you know on the demand. They look at the pitch deck. Uh and then based on at the pitch deck. Uh and then based on at the pitch deck. Uh and then based on all this and then more importantly they all this and then more importantly they all this and then more importantly they they ask you for your financials.

they ask you for your financials. they ask you for your financials. you know how much money you made. They you know how much money you made. They you know how much money you made. They ask you for three financial statements ask you for three financial statements ask you for three financial statements and uh and then they ask you for and uh and then they ask you for and uh and then they ask you for projections projections projections and you need to be able uh as a startup and you need to be able uh as a startup and you need to be able uh as a startup to show and back your uh uh history and to show and back your uh uh history and to show and back your uh uh history and back your projection. So this is every back your projection. So this is every back your projection. So this is every like just think about one deal how much like just think about one deal how much like just think about one deal how much work goes to one [laughter] deal. And work goes to one [laughter] deal. And work goes to one [laughter] deal. And that's why when people just randomly that's why when people just randomly that's why when people just randomly email VCs, email VCs, email VCs, if if the company is not within the if if the company is not within the if if the company is not within the thesis, right? Oh, I'm a VC investing in thesis, right? Oh, I'm a VC investing in thesis, right? Oh, I'm a VC investing in Texas, just example, Texas, just example, Texas, just example, >> XYZ company, right? >> XYZ company, right? >> XYZ company, right? >> And somebody says, hey, you know, I'm >> And somebody says, hey, you know, I'm >> And somebody says, hey, you know, I'm I'm from Arkansas. So, it's they're not I'm from Arkansas. So, it's they're not I'm from Arkansas. So, it's they're not going to look at it. [laughter] going to look at it. [laughter] going to look at it. [laughter] >> You see like this is like Yeah. Yeah. >> You see like this is like Yeah. Yeah. >> You see like this is like Yeah. Yeah. >> [laughter] >> [laughter] >> [laughter] >> Do you want to share a little bit about >> Do you want to share a little bit about >> Do you want to share a little bit about uh the fund you're putting together and uh the fund you're putting together and uh the fund you're putting together and what your thesis? what your thesis? what your thesis? >> Yeah, absolutely. So um we are putting a >> Yeah, absolutely. So um we are putting a >> Yeah, absolutely. So um we are putting a fund together you know the fund name is fund together you know the fund name is fund together you know the fund name is Red Ruby Capital and people [snorts] are Red Ruby Capital and people [snorts] are Red Ruby Capital and people [snorts] are asking what is you know why you name it asking what is you know why you name it asking what is you know why you name it Red Ruby because we uh believe in a Red Ruby because we uh believe in a Red Ruby because we uh believe in a hidden gem that is in every idea and hidden gem that is in every idea and hidden gem that is in every idea and product. So basically what we do we have product. So basically what we do we have product. So basically what we do we have these conversations with uh startups these conversations with uh startups these conversations with uh startups with founders and we try to help them to with founders and we try to help them to with founders and we try to help them to find that gem and shape it to become a find that gem and shape it to become a find that gem and shape it to become a crown jewel you know crown jewel you know crown jewel you know >> so it's just a but it's a lot of work

>> so it's just a but it's a lot of work >> so it's just a but it's a lot of work and our uh thesis is we are and our uh thesis is we are and our uh thesis is we are um a humanity first uh fund uh basically um a humanity first uh fund uh basically um a humanity first uh fund uh basically which um which um which um we wanted to build better future for our we wanted to build better future for our we wanted to build better future for our children and grandchildren. But at the children and grandchildren. But at the children and grandchildren. But at the same time, we wanted to back uh uh same time, we wanted to back uh uh same time, we wanted to back uh uh companies that they are focusing on companies that they are focusing on companies that they are focusing on innovation and solving big and pressing innovation and solving big and pressing innovation and solving big and pressing uh problems and I I can guarantee you uh problems and I I can guarantee you uh problems and I I can guarantee you every like there are many companies we every like there are many companies we every like there are many companies we have uh have conversations and a lot of have uh have conversations and a lot of have uh have conversations and a lot of them they're solving a big problem but them they're solving a big problem but them they're solving a big problem but they don't know it. So you know like the they don't know it. So you know like the they don't know it. So you know like the idea that like the the idea the initial idea that like the the idea the initial idea that like the the idea the initial idea is something else but when you work idea is something else but when you work idea is something else but when you work with them uh you will see this is like a with them uh you will see this is like a with them uh you will see this is like a great idea. This is a problem that great idea. This is a problem that great idea. This is a problem that solves that could solves a lot of global solves that could solves a lot of global solves that could solves a lot of global uh this is a solution that solves a lot uh this is a solution that solves a lot uh this is a solution that solves a lot of global problems. of global problems. of global problems. And uh another thing we wanted to build And uh another thing we wanted to build And uh another thing we wanted to build a local u investment a local economy a local u investment a local economy a local u investment a local economy uh that local people invest in local uh that local people invest in local uh that local people invest in local company that we can discuss you know uh company that we can discuss you know uh company that we can discuss you know uh as we as we go.

as we as we go. as we as we go. >> Yeah. Um well thank you. Yeah. >> Yeah. Um well thank you. Yeah. >> Yeah. Um well thank you. Yeah. [laughter] [laughter] [laughter] >> And and it's a good way and it because >> And and it's a good way and it because >> And and it's a good way and it because you're still thinking like a VC, right, you're still thinking like a VC, right, you're still thinking like a VC, right, when you're investing, but you're also when you're investing, but you're also when you're investing, but you're also able to bring that human factor and that able to bring that human factor and that able to bring that human factor and that social impact factor into what you're social impact factor into what you're social impact factor into what you're doing. So, it's a good way, I think, I doing. So, it's a good way, I think, I doing. So, it's a good way, I think, I mean, just how you've written out your mean, just how you've written out your mean, just how you've written out your thesis and how you've shared it. Um, thesis and how you've shared it. Um, thesis and how you've shared it. Um, it's a good way to bridge that to to it's a good way to bridge that to to it's a good way to bridge that to to continue to continue to continue to >> I mean, obviously as a as a VC, as an >> I mean, obviously as a as a VC, as an >> I mean, obviously as a as a VC, as an investor, you have to continue to think investor, you have to continue to think investor, you have to continue to think like an investor, like an investor, like an investor, >> but at the same time, >> but at the same time, >> but at the same time, >> how can you make space for those those >> how can you make space for those those >> how can you make space for those those companies that are really focused on on companies that are really focused on on companies that are really focused on on making an impact socially or maybe that making an impact socially or maybe that making an impact socially or maybe that are like you were saying that are making are like you were saying that are making are like you were saying that are making an impact already but an impact already but an impact already but >> don't know, >> don't know, >> don't know, >> don't know. they're solving a bigger >> don't know. they're solving a bigger >> don't know. they're solving a bigger problem and you know like the social problem and you know like the social problem and you know like the social impact is one part of it but it could be impact is one part of it but it could be impact is one part of it but it could be like a global impact right uh there are like a global impact right uh there are like a global impact right uh there are people like there are many companies we people like there are many companies we people like there are many companies we had a conversation with them they are had a conversation with them they are had a conversation with them they are solving um hunger problem but they don't solving um hunger problem but they don't solving um hunger problem but they don't know it know it know it >> you know when you ask them they're like >> you know when you ask them they're like >> you know when you ask them they're like oh we're building this there is like oh we're building this there is like oh we're building this there is like this amazing uh startup they're building this amazing uh startup they're building this amazing uh startup they're building um vertical farming um vertical farming um vertical farming >> which can solve multiple problems >> which can solve multiple problems >> which can solve multiple problems problems which the biggest one is hunger problems which the biggest one is hunger problems which the biggest one is hunger and when you talk to them and you see and when you talk to them and you see and when you talk to them and you see like they know like what they're doing like they know like what they're doing like they know like what they're doing but the scale of it and the impact that but the scale of it and the impact that but the scale of it and the impact that it makes globally is is amazing it makes globally is is amazing it makes globally is is amazing >> but the question is so how many startups

>> but the question is so how many startups >> but the question is so how many startups you can really back right because the you can really back right because the you can really back right because the money is not unlimited money is not unlimited money is not unlimited >> and [snorts] that's where you know we >> and [snorts] that's where you know we >> and [snorts] that's where you know we are building this relationship with are building this relationship with are building this relationship with other VCs building the relationship with other VCs building the relationship with other VCs building the relationship with angel investor investors building angel investor investors building angel investor investors building building the relationships with family building the relationships with family building the relationships with family offices with uh wealthy individuals that offices with uh wealthy individuals that offices with uh wealthy individuals that they really wanted to make a difference. they really wanted to make a difference. they really wanted to make a difference. So we wanted to co-invest, we want to So we wanted to co-invest, we want to So we wanted to co-invest, we want to help others. We can help everybody to help others. We can help everybody to help others. We can help everybody to come and work with us and we provide come and work with us and we provide come and work with us and we provide this deal flow. We provide this this deal flow. We provide this this deal flow. We provide this infrastructure. we provide this um flow infrastructure. we provide this um flow infrastructure. we provide this um flow of of of finding and sourcing really good finding and sourcing really good finding and sourcing really good startups and then helping the deal for startups and then helping the deal for startups and then helping the deal for the people that they don't have a deal the people that they don't have a deal the people that they don't have a deal for for for >> right >> right >> right >> and I think that's just another topic we >> and I think that's just another topic we >> and I think that's just another topic we can discuss can discuss can discuss >> right um and how and how we've discussed >> right um and how and how we've discussed >> right um and how and how we've discussed I mean off offline but how we've I mean off offline but how we've I mean off offline but how we've discussed that that what we're building discussed that that what we're building discussed that that what we're building is is something that will address local is is something that will address local is is something that will address local Houston issues. Uh so how we can Houston issues. Uh so how we can Houston issues. Uh so how we can integrate integrate integrate >> um problems that are happening here that >> um problems that are happening here that >> um problems that are happening here that I I feel like some startups are already I I feel like some startups are already I I feel like some startups are already solving those like we you already solving those like we you already solving those like we you already mentioned the hunger one but I feel like mentioned the hunger one but I feel like mentioned the hunger one but I feel like there are more startups that are already there are more startups that are already there are more startups that are already solving issues that are very like solving issues that are very like solving issues that are very like Houston centered Houston centered Houston centered >> um that >> um that >> um that >> might not even know that as well. Yeah.

>> might not even know that as well. Yeah. >> might not even know that as well. Yeah. my that like they're just they're just my that like they're just they're just my that like they're just they're just doing it and going under the and they're doing it and going under the and they're doing it and going under the and they're just like working under the radar and just like working under the radar and just like working under the radar and nobody knows that nobody knows that nobody knows that >> nobody knows about them right you know >> nobody knows about them right you know >> nobody knows about them right you know another thing is so we have another thing is so we have another thing is so we have lot of people that they have um all the lot of people that they have um all the lot of people that they have um all the means to invest. So we have people that means to invest. So we have people that means to invest. So we have people that they uh they can invest and they can they uh they can invest and they can they uh they can invest and they can create wealth for themselves, for their create wealth for themselves, for their create wealth for themselves, for their families and they can help this uh local families and they can help this uh local families and they can help this uh local economy and they can help solve local economy and they can help solve local economy and they can help solve local problems. But here is the issue. First problems. But here is the issue. First problems. But here is the issue. First they need to know what are uh the comp they need to know what are uh the comp they need to know what are uh the comp who are the companies that they are who are the companies that they are who are the companies that they are doing great stuff. So they need to doing great stuff. So they need to doing great stuff. So they need to understand uh the whole uh dynamic of a understand uh the whole uh dynamic of a understand uh the whole uh dynamic of a startup ecosystem and sometimes for startup ecosystem and sometimes for startup ecosystem and sometimes for people that are busy they have their own people that are busy they have their own people that are busy they have their own companies they have their own um their companies they have their own um their companies they have their own um their own lives it's just really hard. So what own lives it's just really hard. So what own lives it's just really hard. So what if we create if we create if we create an ecosystem, a place that we have all an ecosystem, a place that we have all an ecosystem, a place that we have all these companies available these companies available these companies available and and we do the monitoring, we do the and and we do the monitoring, we do the and and we do the monitoring, we do the due diligence, we do all this um uh due diligence, we do all this um uh due diligence, we do all this um uh step-by-step processes that needs to be step-by-step processes that needs to be step-by-step processes that needs to be done to make sure this is a good done to make sure this is a good done to make sure this is a good company, this is investable, this is a company, this is investable, this is a company, this is investable, this is a good investment good investment good investment >> and then they can come and and >> and then they can come and and >> and then they can come and and participate, right? This is kind of like participate, right? This is kind of like participate, right? This is kind of like the again our theme for this month is

the again our theme for this month is the again our theme for this month is building the community, building the community, building the community, >> right? >> right? >> right? >> So if you look at Houston comm startup >> So if you look at Houston comm startup >> So if you look at Houston comm startup community, it's just my personal community, it's just my personal community, it's just my personal opinion. A lot of angel investors, a lot opinion. A lot of angel investors, a lot opinion. A lot of angel investors, a lot of wealthy individuals are left out of wealthy individuals are left out of wealthy individuals are left out because they they don't really know like because they they don't really know like because they they don't really know like it's just really hard for someone who is it's just really hard for someone who is it's just really hard for someone who is not like if I'm a you know real estate not like if I'm a you know real estate not like if I'm a you know real estate investor, I'm not a technical person. investor, I'm not a technical person. investor, I'm not a technical person. How do I know that this is a good How do I know that this is a good How do I know that this is a good opportunity to invest in this really opportunity to invest in this really opportunity to invest in this really crazy AI um you know technology, crazy AI um you know technology, crazy AI um you know technology, >> right? We have we brought a group of uh >> right? We have we brought a group of uh >> right? We have we brought a group of uh really really smart and bright people really really smart and bright people really really smart and bright people that they can go and look at those that they can go and look at those that they can go and look at those companies and they can uh recommend that companies and they can uh recommend that companies and they can uh recommend that these are the good companies and then these are the good companies and then these are the good companies and then the wealthy people the angel investors the wealthy people the angel investors the wealthy people the angel investors people that are individual investing people that are individual investing people that are individual investing they're investing their own money that's they're investing their own money that's they're investing their own money that's the difference again the difference again the difference again >> right >> right >> right >> they're investing their own money and >> they're investing their own money and >> they're investing their own money and they don't have this defo they don't they don't have this defo they don't they don't have this defo they don't have this process they can join us they have this process they can join us they have this process they can join us they can join this community, right? Again, can join this community, right? Again, can join this community, right? Again, it's all about community.

it's all about community. it's all about community. >> It's about ecosystem. We all are coming >> It's about ecosystem. We all are coming >> It's about ecosystem. We all are coming together, working as one together, working as one together, working as one >> to push our startup ecosystem forward. >> to push our startup ecosystem forward. >> to push our startup ecosystem forward. >> So there's so there's kind of like >> So there's so there's kind of like >> So there's so there's kind of like preparation and growth for the startups, preparation and growth for the startups, preparation and growth for the startups, but also I mean we talked about training but also I mean we talked about training but also I mean we talked about training for the investors, accreditation or what for the investors, accreditation or what for the investors, accreditation or what is it called? is it called? is it called? >> Yeah. So like you know like you have two >> Yeah. So like you know like you have two >> Yeah. So like you know like you have two types of individual investors. M types of individual investors. M types of individual investors. M >> so there are accredited investors and >> so there are accredited investors and >> so there are accredited investors and there are you know sophisticated there are you know sophisticated there are you know sophisticated investors and you know so so for like investors and you know so so for like investors and you know so so for like you know I'm not u an attorney a legal you know I'm not u an attorney a legal you know I'm not u an attorney a legal counsel and we are not so I think yeah counsel and we are not so I think yeah counsel and we are not so I think yeah >> so you know to understand uh all the >> so you know to understand uh all the >> so you know to understand uh all the requirements for being an accredited requirements for being an accredited requirements for being an accredited investor um you need to go and look at investor um you need to go and look at investor um you need to go and look at uh consult like an attorney a legal uh consult like an attorney a legal uh consult like an attorney a legal counsel about what are the requirements counsel about what are the requirements counsel about what are the requirements to become an a accredited investor, but to become an a accredited investor, but to become an a accredited investor, but there are like there are income and there are like there are income and there are like there are income and asset uh requirements to become asset uh requirements to become asset uh requirements to become >> uh an accredited investor and but the >> uh an accredited investor and but the >> uh an accredited investor and but the question is and it's just for you know question is and it's just for you know question is and it's just for you know more people the people that they have more people the people that they have more people the people that they have certain uh amount of assets and and certain uh amount of assets and and certain uh amount of assets and and income income income >> right >> right >> right >> um and how about like other people if I >> um and how about like other people if I >> um and how about like other people if I don't uh if I don't uh have uh those um don't uh if I don't uh have uh those um don't uh if I don't uh have uh those um assets or minimum requirements. How can assets or minimum requirements. How can assets or minimum requirements. How can I become an investor? There is another I become an investor? There is another I become an investor? There is another way. Um, so if you're working with a

way. Um, so if you're working with a way. Um, so if you're working with a fund, if you're working with a uh in the fund, if you're working with a uh in the fund, if you're working with a uh in the invest in in an investment, uh, maybe invest in in an investment, uh, maybe invest in in an investment, uh, maybe syndicate and real estate investors, syndicate and real estate investors, syndicate and real estate investors, they're very familiar with this concept. they're very familiar with this concept. they're very familiar with this concept. Uh you can [snorts] become a Uh you can [snorts] become a Uh you can [snorts] become a sophisticated investor which a sophisticated investor which a sophisticated investor which a sophisticated investor is someone that sophisticated investor is someone that sophisticated investor is someone that is close to the deal to the company is is close to the deal to the company is is close to the deal to the company is engaged understands the risk and they engaged understands the risk and they engaged understands the risk and they put all these um rules and regulations put all these um rules and regulations put all these um rules and regulations in place because of protection of people in place because of protection of people in place because of protection of people that they are investing. And let me just that they are investing. And let me just that they are investing. And let me just uh you know I can I can um I can provide uh you know I can I can um I can provide uh you know I can I can um I can provide more information about like why and how more information about like why and how more information about like why and how they uh came up with like why why they they uh came up with like why why they they uh came up with like why why they really put these rules and regulations really put these rules and regulations really put these rules and regulations in place. in place. in place. >> Great. Yeah. If we have any follow-up >> Great. Yeah. If we have any follow-up >> Great. Yeah. If we have any follow-up questions, we'll be here in person after questions, we'll be here in person after questions, we'll be here in person after [laughter] and we do have a Q&A session. [laughter] and we do have a Q&A session. [laughter] and we do have a Q&A session. Um we talked a little bit about um Yeah, Um we talked a little bit about um Yeah, Um we talked a little bit about um Yeah, because we can talk we can keep talking because we can talk we can keep talking because we can talk we can keep talking about that forever. Um but we we talked about that forever. Um but we we talked about that forever. Um but we we talked a little bit you mentioned a little bit a little bit you mentioned a little bit a little bit you mentioned a little bit about how uh investors might miss um about how uh investors might miss um about how uh investors might miss um specific startups or companies just specific startups or companies just specific startups or companies just because the startup isn't visible or or because the startup isn't visible or or because the startup isn't visible or or the the investors just don't know about the the investors just don't know about the the investors just don't know about them. Um there's other companies like them. Um there's other companies like them. Um there's other companies like including Airbnb, Uber, Kama, Coinbase including Airbnb, Uber, Kama, Coinbase including Airbnb, Uber, Kama, Coinbase and others that were rejected by and others that were rejected by and others that were rejected by numerous investors also numerous investors also numerous investors also >> um before becoming the leaders that they >> um before becoming the leaders that they >> um before becoming the leaders that they are now. Um what would you why would you

are now. Um what would you why would you are now. Um what would you why would you say that happens or why would you what say that happens or why would you what say that happens or why would you what would you say are the biggest blind would you say are the biggest blind would you say are the biggest blind spots um for investors besides just not spots um for investors besides just not spots um for investors besides just not knowing that these startups exist? knowing that these startups exist? knowing that these startups exist? lot of time uh when you are a lot of time uh when you are a lot of time uh when you are a traditional investor traditional investor traditional investor when you are an investor that has like a when you are an investor that has like a when you are an investor that has like a very certain thesis very certain thesis very certain thesis you just invest in what you know you just invest in what you know you just invest in what you know and just imagine um Uber or Airbnb there and just imagine um Uber or Airbnb there and just imagine um Uber or Airbnb there are companies that are new are companies that are new are companies that are new to the industry today we Uber became to the industry today we Uber became to the industry today we Uber became like a verb you know let's Uber right like a verb you know let's Uber right like a verb you know let's Uber right >> let's Google did >> let's Google did >> let's Google did >> but just go back in time just imagine >> but just go back in time just imagine >> but just go back in time just imagine it's like 20 years ago it's like 20 years ago it's like 20 years ago >> right there is no Uber people this >> right there is no Uber people this >> right there is no Uber people this concept didn't exist so the biggest concept didn't exist so the biggest concept didn't exist so the biggest problem for the investors that's again problem for the investors that's again problem for the investors that's again my my opinion my my opinion my my opinion they didn't see the vision they didn't see the vision they didn't see the vision they didn't understand the potential of they didn't understand the potential of they didn't understand the potential of uh you know uh multi-sided platform the uh you know uh multi-sided platform the uh you know uh multi-sided platform the value of the network effect which you value of the network effect which you value of the network effect which you know one side of the platform uh will be know one side of the platform uh will be know one side of the platform uh will be get excited about the other side then get excited about the other side then get excited about the other side then the other side uh grow and and then this the other side uh grow and and then this the other side uh grow and and then this side gets uh excited about the other side gets uh excited about the other side gets uh excited about the other side. So you have like two sides the side. So you have like two sides the side. So you have like two sides the more people in each side bring more more people in each side bring more more people in each side bring more people on the other side. [snorts] people on the other side. [snorts] people on the other side. [snorts] >> So to me the biggest blinds for

>> So to me the biggest blinds for >> So to me the biggest blinds for investors at that point was not investors at that point was not investors at that point was not understanding the vision. Sometime you understanding the vision. Sometime you understanding the vision. Sometime you don't understand the vision sometime is don't understand the vision sometime is don't understand the vision sometime is not very simple is not you know in in not very simple is not you know in in not very simple is not you know in in your thesis your thesis your thesis >> right >> right >> right >> right and because they send the pitch to >> right and because they send the pitch to >> right and because they send the pitch to a lot of investors it doesn't mean that a lot of investors it doesn't mean that a lot of investors it doesn't mean that investor even look at it investor even look at it investor even look at it >> right >> right >> right >> but now that brings the next point which >> but now that brings the next point which >> but now that brings the next point which is is is >> how do you create a deal for that you >> how do you create a deal for that you >> how do you create a deal for that you fully understand is this a good uh deal fully understand is this a good uh deal fully understand is this a good uh deal or not or not or not >> you don't autoreject >> you don't autoreject >> you don't autoreject you There are many VCs they just you There are many VCs they just you There are many VCs they just autoreject you know and especially now autoreject you know and especially now autoreject you know and especially now with AI this is something you know with AI this is something you know with AI this is something you know people uh are creating AI bots and AI people uh are creating AI bots and AI people uh are creating AI bots and AI agents agents agents >> right >> right >> right >> so AI agent look at the opportunity and >> so AI agent look at the opportunity and >> so AI agent look at the opportunity and say is it a good opportunity is not say is it a good opportunity is not say is it a good opportunity is not going back to you know uh understanding going back to you know uh understanding going back to you know uh understanding the hidden gem within that idea the hidden gem within that idea the hidden gem within that idea >> but a lot of them they didn't see the >> but a lot of them they didn't see the >> but a lot of them they didn't see the vision because it was new a lot of them vision because it was new a lot of them vision because it was new a lot of them it was just autoreject is not within our it was just autoreject is not within our it was just autoreject is not within our you know investment thesis and a lot of you know investment thesis and a lot of you know investment thesis and a lot of them didn't and some of them that were them didn't and some of them that were them didn't and some of them that were very successful are the VCs that are very successful are the VCs that are very successful are the VCs that are early adapters even in in in capital.

early adapters even in in in capital. early adapters even in in in capital. >> Okay. Yeah, there's a lot to >> Okay. Yeah, there's a lot to >> Okay. Yeah, there's a lot to >> to consider. There's so much to think >> to consider. There's so much to think >> to consider. There's so much to think through. through. through. >> This [laughter] is kind like I just want >> This [laughter] is kind like I just want >> This [laughter] is kind like I just want >> it's hard to know if you know I can I >> it's hard to know if you know I can I >> it's hard to know if you know I can I can you know we can go like very deep in can you know we can go like very deep in can you know we can go like very deep in technical stuff. Right. technical stuff. Right. technical stuff. Right. >> Right. >> Right. >> Right. But then But then But then those are things that requires a lot of those are things that requires a lot of those are things that requires a lot of explanation from a business perspective, explanation from a business perspective, explanation from a business perspective, you know, financial perspective, you know, financial perspective, you know, financial perspective, regulatory. [laughter] It's just a lot regulatory. [laughter] It's just a lot regulatory. [laughter] It's just a lot of things. of things. of things. >> We'll do office hours for those for >> We'll do office hours for those for >> We'll do office hours for those for those conversations. those conversations. those conversations. >> Yes. [laughter] >> Yes. [laughter] >> Yes. [laughter] >> Stay tuned for our office hours. >> Stay tuned for our office hours. >> Stay tuned for our office hours. >> Um, let's talk a little bit about the >> Um, let's talk a little bit about the >> Um, let's talk a little bit about the different types of investors. Um, different types of investors. Um, different types of investors. Um, >> so let's see. There's friends and >> so let's see. There's friends and >> so let's see. There's friends and family, angel investors, syndic family, angel investors, syndic family, angel investors, syndic syndicates, syndicates, syndicates, syndicates, syndicates, syndicates, >> uh, venture capital, corporate venture >> uh, venture capital, corporate venture >> uh, venture capital, corporate venture capital, family offices, strategic capital, family offices, strategic capital, family offices, strategic investors, private equity. Did I miss investors, private equity. Did I miss investors, private equity. Did I miss any? any? any? >> Um, no, I think that's kind of like >> Um, no, I think that's kind of like >> Um, no, I think that's kind of like majority of them, right? So, I just majority of them, right? So, I just majority of them, right? So, I just pulled like I just want to give people pulled like I just want to give people pulled like I just want to give people because we wanted to make sure we have because we wanted to make sure we have because we wanted to make sure we have the right information, right? Mhm.

the right information, right? Mhm. the right information, right? Mhm. >> Um so basically >> Um so basically >> Um so basically u uh designed by the US security and u uh designed by the US security and u uh designed by the US security and exchange commission SEC. So if you if exchange commission SEC. So if you if exchange commission SEC. So if you if you hear the word SEC people talk about you hear the word SEC people talk about you hear the word SEC people talk about it like uh you know uh oh talk about it it like uh you know uh oh talk about it it like uh you know uh oh talk about it a lot in in investment that's that's the a lot in in investment that's that's the a lot in in investment that's that's the agency that is uh uh regulating agency that is uh uh regulating agency that is uh uh regulating investing in securities and investing in investing in securities and investing in investing in securities and investing in companies. Uh so based on the the the companies. Uh so based on the the the companies. Uh so based on the the the design is is by design. So an accredited design is is by design. So an accredited design is is by design. So an accredited investor is someone that the net worth investor is someone that the net worth investor is someone that the net worth exceeding $1 million exceeding $1 million exceeding $1 million and the income of people individually is and the income of people individually is and the income of people individually is more than 200k and jointly is more than more than 200k and jointly is more than more than 200k and jointly is more than 300k. 300k. 300k. >> So that's by definition. So why they do >> So that's by definition. So why they do >> So that's by definition. So why they do that? Because when you invest as an that? Because when you invest as an that? Because when you invest as an individual, you need to fully understand individual, you need to fully understand individual, you need to fully understand the risk. the risk. the risk. People often uh mistake People often uh mistake People often uh mistake investing in in a startup with uh investing in in a startup with uh investing in in a startup with uh trading a stock. And you know, I was in trading a stock. And you know, I was in trading a stock. And you know, I was in a in a I was talking having conversation a in a I was talking having conversation a in a I was talking having conversation with an attorney, an SEC attorney. He with an attorney, an SEC attorney. He with an attorney, an SEC attorney. He was explaining some people they think was explaining some people they think was explaining some people they think yeah I can invest in this company yeah I can invest in this company yeah I can invest in this company $200,000 today and then in six months my $200,000 today and then in six months my $200,000 today and then in six months my son wanted to go to college and I called son wanted to go to college and I called son wanted to go to college and I called the founder and say look you know I'm the founder and say look you know I'm the founder and say look you know I'm sorry you know my son is going to sorry you know my son is going to sorry you know my son is going to college I need that 200k this is not uh college I need that 200k this is not uh college I need that 200k this is not uh start this is not how the startup

start this is not how the startup start this is not how the startup investment work it's a long-term investment work it's a long-term investment work it's a long-term investment you need to fully understand investment you need to fully understand investment you need to fully understand the risk of the investment the risk of the investment the risk of the investment >> that gets us to the different types of >> that gets us to the different types of >> that gets us to the different types of investors, right? So friends and family investors, right? So friends and family investors, right? So friends and family like when you start a company basically like when you start a company basically like when you start a company basically you have an idea that's all you have. you have an idea that's all you have. you have an idea that's all you have. Sometimes some founders put some money Sometimes some founders put some money Sometimes some founders put some money of their own pocket and they build like of their own pocket and they build like of their own pocket and they build like a prototype something that presents and a prototype something that presents and a prototype something that presents and a lot of VCs institutional investors a lot of VCs institutional investors a lot of VCs institutional investors a lot of them not the early stages not a lot of them not the early stages not a lot of them not the early stages not the ones that are interested in the idea the ones that are interested in the idea the ones that are interested in the idea the like the traditional uh VCs they are the like the traditional uh VCs they are the like the traditional uh VCs they are not really interested so basically if not really interested so basically if not really interested so basically if you go to anybody people will ask you do you go to anybody people will ask you do you go to anybody people will ask you do you have any traction do you have any uh you have any traction do you have any uh you have any traction do you have any uh income? Do you have any revenue? Friends income? Do you have any revenue? Friends income? Do you have any revenue? Friends and family, they believe in you, and family, they believe in you, and family, they believe in you, not even your idea. They believe in you not even your idea. They believe in you not even your idea. They believe in you >> and they invest in you because they >> and they invest in you because they >> and they invest in you because they think you are a genius and you can get think you are a genius and you can get think you are a genius and you can get that uh money uh uh going and and they that uh money uh uh going and and they that uh money uh uh going and and they can get some uh return on it. But it can get some uh return on it. But it can get some uh return on it. But it gets really really really messy when gets really really really messy when gets really really really messy when people go to friends and family say, people go to friends and family say, people go to friends and family say, "Look, I have this great idea. It's "Look, I have this great idea. It's "Look, I have this great idea. It's going to be like the next big big thing.

going to be like the next big big thing. going to be like the next big big thing. We're going to be billionaires and We're going to be billionaires and We're going to be billionaires and millionaires." millionaires." millionaires." And they promise something and then the And they promise something and then the And they promise something and then the friends and family invest in that friends and family invest in that friends and family invest in that promise promise promise >> and that thing goes down. >> and that thing goes down. >> and that thing goes down. >> Been there, done that, >> Been there, done that, >> Been there, done that, >> you know. Uh and then you're going to >> you know. Uh and then you're going to >> you know. Uh and then you're going to lose your friends lose your friends lose your friends family uh Thanksgiving. Uh family uh Thanksgiving. Uh family uh Thanksgiving. Uh >> it's going to be out. >> it's going to be out. >> it's going to be out. >> It's going to Yeah. You know, it's like >> It's going to Yeah. You know, it's like >> It's going to Yeah. You know, it's like it's going to be messy, right? it's going to be messy, right? it's going to be messy, right? >> The next step, let's say somebody does >> The next step, let's say somebody does >> The next step, let's say somebody does that. That's a great idea. Go to the that. That's a great idea. Go to the that. That's a great idea. Go to the next step, which is uh angel investors. next step, which is uh angel investors. next step, which is uh angel investors. So now you just build something. You So now you just build something. You So now you just build something. You have a product and you get some money have a product and you get some money have a product and you get some money from your friends and family. Angel from your friends and family. Angel from your friends and family. Angel investors are people that are investing investors are people that are investing investors are people that are investing their own money. their own money. their own money. and they are uh passionate about what and they are uh passionate about what and they are uh passionate about what you do. you do. you do. They want to they want to make a dent in They want to they want to make a dent in They want to they want to make a dent in this uh um topic like let's say somebody this uh um topic like let's say somebody this uh um topic like let's say somebody is really passionate about human is really passionate about human is really passionate about human trafficking and you're building an app trafficking and you're building an app trafficking and you're building an app to prevent that. They are coming and to prevent that. They are coming and to prevent that. They are coming and saying look even if this doesn't take saying look even if this doesn't take saying look even if this doesn't take off we just build something that can off we just build something that can off we just build something that can save five people I'm okay I'm putting my save five people I'm okay I'm putting my save five people I'm okay I'm putting my 100k here but this 100k will help that 100k here but this 100k will help that 100k here but this 100k will help that >> again there are angel investors that >> again there are angel investors that >> again there are angel investors that they really want to um make money off they really want to um make money off they really want to um make money off that and a lot of them want but in order that and a lot of them want but in order that and a lot of them want but in order to be an angel investor you should be to be an angel investor you should be to be an angel investor you should be accredited investor basically you accredited investor basically you accredited investor basically you understand the risk you understand you understand the risk you understand you understand the risk you understand you when you put this money everything all

when you put this money everything all when you put this money everything all the money could be gone. the money could be gone. the money could be gone. That's that's the whole point and that's That's that's the whole point and that's That's that's the whole point and that's a challenge because angel investors are a challenge because angel investors are a challenge because angel investors are solo uh investors and they don't have solo uh investors and they don't have solo uh investors and they don't have this deal for they don't have the people this deal for they don't have the people this deal for they don't have the people that they go like they don't have the that they go like they don't have the that they go like they don't have the MBA to go and do the due diligence they MBA to go and do the due diligence they MBA to go and do the due diligence they don't have the outreach they don't have don't have the outreach they don't have don't have the outreach they don't have all these different things that VC has all these different things that VC has all these different things that VC has >> okay >> okay >> okay >> syndicates are like when people come >> syndicates are like when people come >> syndicates are like when people come together and and they uh invest together together and and they uh invest together together and and they uh invest together right and there's like for syndicates right and there's like for syndicates right and there's like for syndicates there are rules rules and regulations. there are rules rules and regulations. there are rules rules and regulations. There are like their formula. Uh let's There are like their formula. Uh let's There are like their formula. Uh let's say we wanted to purchase this uh I just say we wanted to purchase this uh I just say we wanted to purchase this uh I just give you a very po, you know, popular um give you a very po, you know, popular um give you a very po, you know, popular um u use case. You want to build buy this u use case. You want to build buy this u use case. You want to build buy this commercial property. commercial property. commercial property. >> Mhm. >> Mhm. >> Mhm. >> And it's it's $20 million. >> And it's it's $20 million. >> And it's it's $20 million. So 10 people come together each put So 10 people come together each put So 10 people come together each put $500,000 is 5 million. Then you go to a $500,000 is 5 million. Then you go to a $500,000 is 5 million. Then you go to a bank, get $50 million loan, and you bank, get $50 million loan, and you bank, get $50 million loan, and you purchase that property. That's that's an purchase that property. That's that's an purchase that property. That's that's an example of syndicate.

example of syndicate. example of syndicate. >> Okay. >> Okay. >> Okay. >> Any questions? Any uh anything so far? >> Any questions? Any uh anything so far? >> Any questions? Any uh anything so far? >> Um >> Um >> Um no. no. no. >> Okay. >> Okay. >> Okay. So VCs are venture capitals. They are So VCs are venture capitals. They are So VCs are venture capitals. They are the most uh popular, the most common the most uh popular, the most common the most uh popular, the most common investment investment investment uh vehicles for startups. uh vehicles for startups. uh vehicles for startups. The big thing about VCs, they're high The big thing about VCs, they're high The big thing about VCs, they're high risk, high reward. And they invest in risk, high reward. And they invest in risk, high reward. And they invest in early stage companies. The earlier they early stage companies. The earlier they early stage companies. The earlier they invest, invest, invest, the bigger the risk, the bigger the the bigger the risk, the bigger the the bigger the risk, the bigger the reward. It's just a risk and reward, reward. It's just a risk and reward, reward. It's just a risk and reward, right? So you invest in very early right? So you invest in very early right? So you invest in very early startup, you may lose all your money, startup, you may lose all your money, startup, you may lose all your money, but your check size is smaller. You but your check size is smaller. You but your check size is smaller. You invest in later startup, you're not invest in later startup, you're not invest in later startup, you're not you're investing a lot of money, but you're investing a lot of money, but you're investing a lot of money, but your return is smaller. And all the your return is smaller. And all the your return is smaller. And all the investment goes by return. What what x investment goes by return. What what x investment goes by return. What what x return you get like you know is 10 times return you get like you know is 10 times return you get like you know is 10 times 20 times five times and and that's 20 times five times and and that's 20 times five times and and that's that's a big thing. that's a big thing. that's a big thing. Corporate venture uh are the arm Corporate venture uh are the arm Corporate venture uh are the arm innovation arms of uh corporates.

innovation arms of uh corporates. innovation arms of uh corporates. The reason is corporates sometimes are The reason is corporates sometimes are The reason is corporates sometimes are uh willing to uh willing to uh willing to build new ideas with startups because build new ideas with startups because build new ideas with startups because it's really hard. Innovation sometime is it's really hard. Innovation sometime is it's really hard. Innovation sometime is really hard in in in corporate and really hard in in in corporate and really hard in in in corporate and that's a big topic. that's a big topic. that's a big topic. >> Uh they are big, they are slow to move, >> Uh they are big, they are slow to move, >> Uh they are big, they are slow to move, innovation requires like you know fast innovation requires like you know fast innovation requires like you know fast movement. So they create this arm. Uh so movement. So they create this arm. Uh so movement. So they create this arm. Uh so they bring a problem that they have into they bring a problem that they have into they bring a problem that they have into corporate venture and they look for corporate venture and they look for corporate venture and they look for companies that they can solve that companies that they can solve that companies that they can solve that problem and they back them. problem and they back them. problem and they back them. >> You know family offices manages uh >> You know family offices manages uh >> You know family offices manages uh manage uh people's net people's with you manage uh people's net people's with you manage uh people's net people's with you know high net worth money and you know know high net worth money and you know know high net worth money and you know like they have like you know people that like they have like you know people that like they have like you know people that they have like a lot of money. So they they have like a lot of money. So they they have like a lot of money. So they hire this many family offices and family hire this many family offices and family hire this many family offices and family offices invest in other funds. offices invest in other funds. offices invest in other funds. >> Okay. >> Okay. >> Okay. >> So I have seen family offices that they >> So I have seen family offices that they >> So I have seen family offices that they directly invest in in startups but most directly invest in in startups but most directly invest in in startups but most of the time family offices invest in in of the time family offices invest in in of the time family offices invest in in other funds. And then [snorts] you have other funds. And then [snorts] you have other funds. And then [snorts] you have pension funds. You have bigger funds.

pension funds. You have bigger funds. pension funds. You have bigger funds. They're like the state funds that they They're like the state funds that they They're like the state funds that they are like billions of dollars. They are like billions of dollars. They are like billions of dollars. They invest in other funds. So you have funds invest in other funds. So you have funds invest in other funds. So you have funds that they invest in other funds and they that they invest in other funds and they that they invest in other funds and they have funds that they invest in in have funds that they invest in in have funds that they invest in in companies. Uh so strategic investors are companies. Uh so strategic investors are companies. Uh so strategic investors are the people that they are um not only the people that they are um not only the people that they are um not only give you money they become your partner. give you money they become your partner. give you money they become your partner. uh let's say if if you know our company uh let's say if if you know our company uh let's say if if you know our company you know our fund invest in somebody we you know our fund invest in somebody we you know our fund invest in somebody we become their strategic partner which we become their strategic partner which we become their strategic partner which we help them with a strategy we help them help them with a strategy we help them help them with a strategy we help them with introductions we help them with with introductions we help them with with introductions we help them with resources resources resources >> uh we can make introduction to people >> uh we can make introduction to people >> uh we can make introduction to people that startups sometimes they cannot do that startups sometimes they cannot do that startups sometimes they cannot do by themselves by themselves by themselves >> and >> and >> and um private equity is a different uh um private equity is a different uh um private equity is a different uh structure private equity invest in structure private equity invest in structure private equity invest in mature companies mature companies mature companies So if you have a company that is not So if you have a company that is not So if you have a company that is not performing very well and is a mature performing very well and is a mature performing very well and is a mature company, private equity most of the time company, private equity most of the time company, private equity most of the time they buy them, they uh uh they fix all they buy them, they uh uh they fix all they buy them, they uh uh they fix all the problems and you know so-called they the problems and you know so-called they the problems and you know so-called they flip them. So you if there's a come but flip them. So you if there's a come but flip them. So you if there's a come but the biggest thing in in private equity the biggest thing in in private equity the biggest thing in in private equity there there should be assets there there there should be assets there there there should be assets there should be uh you know uh income because should be uh you know uh income because should be uh you know uh income because private equity doesn't is not like uh private equity doesn't is not like uh private equity doesn't is not like uh VCs that's the difference VC invest in VCs that's the difference VC invest in VCs that's the difference VC invest in early stage private equity invest in early stage private equity invest in early stage private equity invest in later stage again there are um there are

later stage again there are um there are later stage again there are um there are cases that private equity invest in cases that private equity invest in cases that private equity invest in maybe earlier stage VC investing like in maybe earlier stage VC investing like in maybe earlier stage VC investing like in more mature company That's kind of like more mature company That's kind of like more mature company That's kind of like the general understanding that h uh is the general understanding that h uh is the general understanding that h uh is in the industry. in the industry. in the industry. >> Okay. Thank you. >> Okay. Thank you. >> Okay. Thank you. >> No, absolutely >> No, absolutely >> No, absolutely >> for that run through. [laughter] >> for that run through. [laughter] >> for that run through. [laughter] >> That's a lot of information. Um would >> That's a lot of information. Um would >> That's a lot of information. Um would you say that uh every startup needs an you say that uh every startup needs an you say that uh every startup needs an investor? >> Yes and no. Um >> Yes and no. Um the trend in the industry and ecosystem the trend in the industry and ecosystem the trend in the industry and ecosystem is oh I have this idea I need to go and is oh I have this idea I need to go and is oh I have this idea I need to go and investor. investor. investor. A lot of people A lot of people A lot of people lot of um serial entrepreneurs lot of um serial entrepreneurs lot of um serial entrepreneurs recommend and go after recommend going recommend and go after recommend going recommend and go after recommend going after customers and building the after customers and building the after customers and building the business before you take money. business before you take money. business before you take money. Because Because Because friends and family when you are in that friends and family when you are in that friends and family when you are in that round round round um if you lose the money you're going to um if you lose the money you're going to um if you lose the money you're going to lose your friends and family lose your friends and family lose your friends and family >> angel investors you need to go and you >> angel investors you need to go and you >> angel investors you need to go and you know go after a lot of angel investors know go after a lot of angel investors know go after a lot of angel investors to get them to invest. So the best to get them to invest. So the best to get them to invest. So the best recommendation is not to go after recommendation is not to go after recommendation is not to go after investment until you have a proven investment until you have a proven investment until you have a proven uh repeatable uh repeatable uh repeatable uh process for a product that has a high uh process for a product that has a high uh process for a product that has a high demand in a big market that you just

demand in a big market that you just demand in a big market that you just need money to fuel it need money to fuel it need money to fuel it or you have evidence of demand even or you have evidence of demand even or you have evidence of demand even before building the product. Mhm. before building the product. Mhm. before building the product. Mhm. >> You have evidence of demand. If I build >> You have evidence of demand. If I build >> You have evidence of demand. If I build it, people are going to buy it. Now you it, people are going to buy it. Now you it, people are going to buy it. Now you have evidence. Then you get money to have evidence. Then you get money to have evidence. Then you get money to build it. [snorts] build it. [snorts] build it. [snorts] If you don't have that evidence, don't If you don't have that evidence, don't If you don't have that evidence, don't get money. That's my recommendation. get money. That's my recommendation. get money. That's my recommendation. Don't don't even go after money. When Don't don't even go after money. When Don't don't even go after money. When you go after money, you may get lucky. you go after money, you may get lucky. you go after money, you may get lucky. Somebody may come and invest on in your Somebody may come and invest on in your Somebody may come and invest on in your company. But the problem is if you lose company. But the problem is if you lose company. But the problem is if you lose the money the money the money and a lot of time and a lot of time and a lot of time >> if you cannot really prove that you have >> if you cannot really prove that you have >> if you cannot really prove that you have demand the chances are you build it and demand the chances are you build it and demand the chances are you build it and no one buy it [laughter] no one buy it [laughter] no one buy it [laughter] >> you know and and and that's something >> you know and and and that's something >> you know and and and that's something that when I started the journey um I that when I started the journey um I that when I started the journey um I have seen a lot of other founders like have seen a lot of other founders like have seen a lot of other founders like want to find investment from the want to find investment from the want to find investment from the beginning like before they've even beginning like before they've even beginning like before they've even started building before they've even started building before they've even started building before they've even like done their market research and like done their market research and like done their market research and things like that. So that's a great things like that. So that's a great things like that. So that's a great that's a great point. Thank you for that's a great point. Thank you for that's a great point. Thank you for bringing that up.

bringing that up. bringing that up. >> Keep in mind if what even on the idea >> Keep in mind if what even on the idea >> Keep in mind if what even on the idea stage, this is what we do here in our stage, this is what we do here in our stage, this is what we do here in our program. If you can prove this is an program. If you can prove this is an program. If you can prove this is an investable opportunity, investable opportunity, investable opportunity, meaning there is a demand for it. meaning there is a demand for it. meaning there is a demand for it. Meaning when you talk to people, you Meaning when you talk to people, you Meaning when you talk to people, you just say the first three words and the just say the first three words and the just say the first three words and the you know the person is oh my god I have you know the person is oh my god I have you know the person is oh my god I have this problem. Oh my god. If you buy it this problem. Oh my god. If you buy it this problem. Oh my god. If you buy it for sure, if you build if you build it for sure, if you build if you build it for sure, if you build if you build it for sure, I'm going to buy it. for sure, I'm going to buy it. for sure, I'm going to buy it. That shows the signal that there is a That shows the signal that there is a That shows the signal that there is a demand. And and then you think about how demand. And and then you think about how demand. And and then you think about how big is this market. big is this market. big is this market. >> If you want to build a unicorn, >> If you want to build a unicorn, >> If you want to build a unicorn, [clears throat] the market should be [clears throat] the market should be [clears throat] the market should be big. The pain should be severe. big. The pain should be severe. big. The pain should be severe. >> Those are the two things. Even if if if >> Those are the two things. Even if if if >> Those are the two things. Even if if if you can prove that I talked to 50 people you can prove that I talked to 50 people you can prove that I talked to 50 people and as soon as I told them about the and as soon as I told them about the and as soon as I told them about the problem they started, you know, uh problem they started, you know, uh problem they started, you know, uh telling me stories and horror stories telling me stories and horror stories telling me stories and horror stories about their experience with this problem about their experience with this problem about their experience with this problem and they said, "Look, I'm going to pay and they said, "Look, I'm going to pay and they said, "Look, I'm going to pay you." And that's the most important you." And that's the most important you." And that's the most important thing, willingness to pay.

thing, willingness to pay. thing, willingness to pay. Just just keep this word in mind, Just just keep this word in mind, Just just keep this word in mind, willingness to pay. if they want to pay. willingness to pay. if they want to pay. willingness to pay. if they want to pay. People can like your idea but they may People can like your idea but they may People can like your idea but they may not pay for it. This is really not pay for it. This is really not pay for it. This is really important. So if if you have an idea if important. So if if you have an idea if important. So if if you have an idea if you talk to 500 people and you know if you talk to 500 people and you know if you talk to 500 people and you know if you build it they will come. Yes you can you build it they will come. Yes you can you build it they will come. Yes you can you are now an investable uh you are now an investable uh you are now an investable uh opportunity. So you can even go get uh opportunity. So you can even go get uh opportunity. So you can even go get uh money but a small money from your friend money but a small money from your friend money but a small money from your friend and family and build that idea bring it and family and build that idea bring it and family and build that idea bring it to life and say look this is this is to life and say look this is this is to life and say look this is this is idea. Okay, Ben, you told me that you're idea. Okay, Ben, you told me that you're idea. Okay, Ben, you told me that you're going to buy it the is like $500, but I going to buy it the is like $500, but I going to buy it the is like $500, but I give you for 50. give you for 50. give you for 50. >> Are you going to pay me? >> Well, that was a lot of information. >> Well, that was a lot of information. Thank you so much. I want to We only Thank you so much. I want to We only Thank you so much. I want to We only have like 15 minutes left. I do want to have like 15 minutes left. I do want to have like 15 minutes left. I do want to open it up to our studio audience that's open it up to our studio audience that's open it up to our studio audience that's here um to see if we have any questions here um to see if we have any questions here um to see if we have any questions um from them. um from them. um from them. saying hello. Oh, the microphone's on saying hello. Oh, the microphone's on saying hello. Oh, the microphone's on the table. Do we have a camera out the table. Do we have a camera out the table. Do we have a camera out there?

there? there? >> Okay. >> Okay. >> Okay. >> Um >> Um >> Um Okay. Um there is if anybody in the Okay. Um there is if anybody in the Okay. Um there is if anybody in the studio audience has a question, the studio audience has a question, the studio audience has a question, the microphone is on the table. Um and you microphone is on the table. Um and you microphone is on the table. Um and you just say your name. And if not, we can just say your name. And if not, we can just say your name. And if not, we can just I can just keep asking Ben just I can just keep asking Ben just I can just keep asking Ben questions. That's okay. Um let's talk a little bit That's okay. Um let's talk a little bit more about uh Noblefounder more about uh Noblefounder more about uh Noblefounder specifically um and how the specifically um and how the specifically um and how the noblefounder.com integrates a lot of noblefounder.com integrates a lot of noblefounder.com integrates a lot of what we've been [clears throat] talking what we've been [clears throat] talking what we've been [clears throat] talking about and how yeah about and how yeah about and how yeah >> um we are taking care it is very founder >> um we are taking care it is very founder >> um we are taking care it is very founder centered and we're also um having a centered and we're also um having a centered and we're also um having a space for investors u to learn to come space for investors u to learn to come space for investors u to learn to come together to people that um are investors together to people that um are investors together to people that um are investors that might not know they are investors that might not know they are investors that might not know they are investors and just how they can get started and and just how they can get started and and just how they can get started and the flywheel that we're developing with the flywheel that we're developing with the flywheel that we're developing with that. that. that. >> Yeah, absolutely. So the idea about >> Yeah, absolutely. So the idea about >> Yeah, absolutely. So the idea about Noble Founder is building a founder Noble Founder is building a founder Noble Founder is building a founder centric uh ecosystem and when you know centric uh ecosystem and when you know centric uh ecosystem and when you know ecosystem is a word that people have ecosystem is a word that people have ecosystem is a word that people have talked about it you know for a long talked about it you know for a long talked about it you know for a long time. Uh so it's just bringing all time. Uh so it's just bringing all time. Uh so it's just bringing all different um companies different um companies different um companies uh different sides of uh startup uh different sides of uh startup uh different sides of uh startup ecosystem together ecosystem together ecosystem together and helping uh founders and helping uh founders and helping uh founders become an invest investable opportunity become an invest investable opportunity become an invest investable opportunity and fund them. So let me explain just and fund them. So let me explain just and fund them. So let me explain just one thing about noble founder. Our one thing about noble founder. Our one thing about noble founder. Our program is designed uh to personalize

program is designed uh to personalize program is designed uh to personalize the journey for the founders. So the journey for the founders. So the journey for the founders. So basically when the founders come to us basically when the founders come to us basically when the founders come to us we do assessments like we understand we do assessments like we understand we do assessments like we understand where they are in the journey where they are in the journey where they are in the journey >> and we put them at that point and we >> and we put them at that point and we >> and we put them at that point and we create a personalized road map for them create a personalized road map for them create a personalized road map for them to get funded to get funded to get funded to get traction to build and go to the to get traction to build and go to the to get traction to build and go to the next milestone. So if you're coming you next milestone. So if you're coming you next milestone. So if you're coming you know unlike any other program which you know unlike any other program which you know unlike any other program which you know you this is like um a set program know you this is like um a set program know you this is like um a set program oh I'm going to go to um acceleration uh oh I'm going to go to um acceleration uh oh I'm going to go to um acceleration uh regardless of where I am in acceleration regardless of where I am in acceleration regardless of where I am in acceleration maybe I'm at the end of acceleration or maybe I'm at the end of acceleration or maybe I'm at the end of acceleration or at the beginning right so our program is at the beginning right so our program is at the beginning right so our program is not uh is not um a set um journey we do not uh is not um a set um journey we do not uh is not um a set um journey we do the assessment we get the startups where the assessment we get the startups where the assessment we get the startups where they are and we provide everything that they are and we provide everything that they are and we provide everything that they need the only thing [clears throat] they need the only thing [clears throat] they need the only thing [clears throat] you know startups need to do just to you know startups need to do just to you know startups need to do just to execute. So we sit and more importantly execute. So we sit and more importantly execute. So we sit and more importantly we're going to have those conversation we're going to have those conversation we're going to have those conversation about the hidden gem about the hidden gem about the hidden gem >> right and what we are looking for we're >> right and what we are looking for we're >> right and what we are looking for we're looking for people that they are looking for people that they are looking for people that they are coachable they are open they wanted to coachable they are open they wanted to coachable they are open they wanted to learn and they wanted to pivot because learn and they wanted to pivot because learn and they wanted to pivot because if we see this opportunity this huge if we see this opportunity this huge if we see this opportunity this huge opportunity that solves a big local and opportunity that solves a big local and opportunity that solves a big local and global problem and we suggest you know global problem and we suggest you know global problem and we suggest you know we think if you pivot we think if you pivot we think if you pivot you know you can get a lot more bigger you know you can get a lot more bigger you know you can get a lot more bigger share of markets and even bigger share share of markets and even bigger share share of markets and even bigger share of global markets of global markets of global markets are you open to um pivot and sometimes

are you open to um pivot and sometimes are you open to um pivot and sometimes they don't need to pivot sometimes the they don't need to pivot sometimes the they don't need to pivot sometimes the idea is is good uh you know we help them idea is is good uh you know we help them idea is is good uh you know we help them so next thing that we provide we provide so next thing that we provide we provide so next thing that we provide we provide funding which a lot of programs you just funding which a lot of programs you just funding which a lot of programs you just go to a program and um at the end of go to a program and um at the end of go to a program and um at the end of like 50 companies one of them may get like 50 companies one of them may get like 50 companies one of them may get funding funding funding that's idea and the five wheel is local that's idea and the five wheel is local that's idea and the five wheel is local we want to local everybody that can we want to local everybody that can we want to local everybody that can invest in a company, join us in invest in a company, join us in invest in a company, join us in investing in local companies that we investing in local companies that we investing in local companies that we monitor, we do the due diligence, we monitor, we do the due diligence, we monitor, we do the due diligence, we make sure this is a there is a great make sure this is a there is a great make sure this is a there is a great opportunity here, we work with them, we opportunity here, we work with them, we opportunity here, we work with them, we build a personalized uh road map, we we build a personalized uh road map, we we build a personalized uh road map, we we risk the investment. So you come in, you risk the investment. So you come in, you risk the investment. So you come in, you invest in that company, the company invest in that company, the company invest in that company, the company grows, generate money, generate jobs. grows, generate money, generate jobs. grows, generate money, generate jobs. our kids can get a job in that company our kids can get a job in that company our kids can get a job in that company and then the company make a lot and and then the company make a lot and and then the company make a lot and enough money that they can invest in the enough money that they can invest in the enough money that they can invest in the ecosystem. So that's a flywheel. We're ecosystem. So that's a flywheel. We're ecosystem. So that's a flywheel. We're lifting the u we're lifting the economy lifting the u we're lifting the economy lifting the u we're lifting the economy together.

together. together. >> Yeah. And again really focusing on for >> Yeah. And again really focusing on for >> Yeah. And again really focusing on for Houston by Houston. Houston by Houston. Houston by Houston. >> For Houston by Houston. Yeah. >> For Houston by Houston. Yeah. >> For Houston by Houston. Yeah. >> Um the noblefounder.com is the website. >> Um the noblefounder.com is the website. >> Um the noblefounder.com is the website. >> The noblefounder.com. You can go there. >> The noblefounder.com. You can go there. >> The noblefounder.com. You can go there. >> Noounder.com. >> Noounder.com. >> Noounder.com. >> Yes. And then um uh our program >> Yes. And then um uh our program >> Yes. And then um uh our program officially will start August 1st. So uh officially will start August 1st. So uh officially will start August 1st. So uh right now if you go and you apply you go right now if you go and you apply you go right now if you go and you apply you go to our um you know contact us page and to our um you know contact us page and to our um you know contact us page and then you just uh you just apply there. then you just uh you just apply there. then you just uh you just apply there. But when we get this officially rolled But when we get this officially rolled But when we get this officially rolled out then um uh we're going to have out then um uh we're going to have out then um uh we're going to have different um different um different um different applications for different uh different applications for different uh different applications for different uh uh stages of startups uh stages of startups uh stages of startups >> in their journey >> in their journey >> in their journey >> and then we'll we'll have different >> and then we'll we'll have different >> and then we'll we'll have different types of events here at the innovation types of events here at the innovation types of events here at the innovation studio and the innovation hub at 801 studio and the innovation hub at 801 studio and the innovation hub at 801 Travis um to continue to bring Travis um to continue to bring Travis um to continue to bring >> uh founders together and investors >> uh founders together and investors >> uh founders together and investors together uh investors and founders together uh investors and founders together uh investors and founders together. Um, and continue the together. Um, and continue the together. Um, and continue the conversation and continue to to really conversation and continue to to really conversation and continue to to really expand on I'm sure like there's I have expand on I'm sure like there's I have expand on I'm sure like there's I have so many questions just on all the things so many questions just on all the things so many questions just on all the things that you were highlighting today.

that you were highlighting today. that you were highlighting today. [laughter] I wish I would have been [laughter] I wish I would have been [laughter] I wish I would have been taking notes. taking notes. taking notes. >> No, you know like so we want to do >> No, you know like so we want to do >> No, you know like so we want to do something cool like founder and funer something cool like founder and funer something cool like founder and funer hangout. hangout. hangout. >> So basically companies that like come >> So basically companies that like come >> So basically companies that like come here and we work with them and we know here and we work with them and we know here and we work with them and we know they are ready and investors that we they are ready and investors that we they are ready and investors that we know they are ready to invest. We want know they are ready to invest. We want know they are ready to invest. We want when people hang out we want both sides when people hang out we want both sides when people hang out we want both sides are ready right? So the investors you are ready right? So the investors you are ready right? So the investors you know coming with a check uh and we have know coming with a check uh and we have know coming with a check uh and we have our own fund so we are ready to invest our own fund so we are ready to invest our own fund so we are ready to invest the investors are ready to invest and um the investors are ready to invest and um the investors are ready to invest and um and and startups are ready to take and and startups are ready to take and and startups are ready to take investment. >> Okay I'm going to try one more time to >> Okay I'm going to try one more time to see if there's any questions from the see if there's any questions from the see if there's any questions from the studio audience. We've got about eight studio audience. We've got about eight studio audience. We've got about eight more minutes left. Um, anybody have a more minutes left. Um, anybody have a more minutes left. Um, anybody have a question for Ben or myself or just want question for Ben or myself or just want question for Ben or myself or just want to say hi?

>> Hey, I don't have a question. I did just >> Hey, I don't have a question. I did just want to say, "Hey, Ben. Hey, Roselia. want to say, "Hey, Ben. Hey, Roselia. want to say, "Hey, Ben. Hey, Roselia. It's good being in the studio with you It's good being in the studio with you It's good being in the studio with you guys." guys." guys." >> Hey. Yeah, absolutely. >> Hey. Yeah, absolutely. >> Hey. Yeah, absolutely. >> Who are you? [laughter] >> Who are you? [laughter] >> Who are you? [laughter] >> Hey everybody, I'm Shaka. I'm from the >> Hey everybody, I'm Shaka. I'm from the >> Hey everybody, I'm Shaka. I'm from the Houston Board of Food Security. Um, this Houston Board of Food Security. Um, this Houston Board of Food Security. Um, this is my third consecutive week coming is my third consecutive week coming is my third consecutive week coming here. It's awesome to like view the live here. It's awesome to like view the live here. It's awesome to like view the live podcast. Um, hear the topics that podcast. Um, hear the topics that podcast. Um, hear the topics that they're talking about. I just popped in they're talking about. I just popped in they're talking about. I just popped in maybe like two minutes ago, so I don't maybe like two minutes ago, so I don't maybe like two minutes ago, so I don't know what they're talking about today. know what they're talking about today. know what they're talking about today. But hey, I'm happy to be here. Like the But hey, I'm happy to be here. Like the But hey, I'm happy to be here. Like the show is awesome. Thank you guys. Thank show is awesome. Thank you guys. Thank show is awesome. Thank you guys. Thank you. you. you. >> Thank you. >> [snorts] >> [snorts] >> Anybody else have a question or comment >> Anybody else have a question or comment >> Anybody else have a question or comment or anything about uh investing like a VC or anything about uh investing like a VC or anything about uh investing like a VC or preparing for investment or anything or preparing for investment or anything or preparing for investment or anything in between? in between? in between? >> Uh my name is Larry and I'm a co-founder >> Uh my name is Larry and I'm a co-founder >> Uh my name is Larry and I'm a co-founder of a startup. of a startup. of a startup. um interested in the show basically for um interested in the show basically for um interested in the show basically for the information you guys provide. And a the information you guys provide. And a the information you guys provide. And a question that I would have is how as a question that I would have is how as a question that I would have is how as a founder do we know where can we founder do we know where can we founder do we know where can we determine determine determine the state of readiness we are to accept the state of readiness we are to accept the state of readiness we are to accept funding?

>> That's a good question. >> That's a good question. >> Yeah, this is a great question. So >> Yeah, this is a great question. So >> Yeah, this is a great question. So the biggest thing in the startup journey the biggest thing in the startup journey the biggest thing in the startup journey is is is understanding where you are at this understanding where you are at this understanding where you are at this moment. Like fully understand where you moment. Like fully understand where you moment. Like fully understand where you are like are you um are you just having are like are you um are you just having are like are you um are you just having an idea? Are you uh building a product? an idea? Are you uh building a product? an idea? Are you uh building a product? Are you taking the product to the Are you taking the product to the Are you taking the product to the market? Are you commercializing that market? Are you commercializing that market? Are you commercializing that product? are you um scaling your product? are you um scaling your product? are you um scaling your business? That's the first step. Why? business? That's the first step. Why? business? That's the first step. Why? Because when you understand where you Because when you understand where you Because when you understand where you are, then you can determine who is the are, then you can determine who is the are, then you can determine who is the best investor for you. So that's the best investor for you. So that's the best investor for you. So that's the first step like where you are in your first step like where you are in your first step like where you are in your journey. That's the first question you journey. That's the first question you journey. That's the first question you need to ask, right? need to ask, right? need to ask, right? >> So now the second question is if I get >> So now the second question is if I get >> So now the second question is if I get the money, what I'm going to do with the money, what I'm going to do with the money, what I'm going to do with this money? this money? this money? >> What is my next step? Right? [laughter] >> What is my next step? Right? [laughter] >> What is my next step? Right? [laughter] I have seen many many companies they got I have seen many many companies they got I have seen many many companies they got the money and they failed.

the money and they failed. the money and they failed. >> Why? Because you now you have the money >> Why? Because you now you have the money >> Why? Because you now you have the money but you don't know what to do. What what but you don't know what to do. What what but you don't know what to do. What what is next? is next? is next? >> There are lots of strategic question >> There are lots of strategic question >> There are lots of strategic question that you need to ask. Uh should I go that you need to ask. Uh should I go that you need to ask. Uh should I go big? Should I go small? Should I go big? Should I go small? Should I go big? Should I go small? Should I go local? Should I go global? You know what local? Should I go global? You know what local? Should I go global? You know what are my next steps? So you need to know are my next steps? So you need to know are my next steps? So you need to know where you are. You need to know we call where you are. You need to know we call where you are. You need to know we call it in in investor terms the use of um it in in investor terms the use of um it in in investor terms the use of um the use of funds and now the next is uh the use of funds and now the next is uh the use of funds and now the next is uh what's going to happen if you lose that what's going to happen if you lose that what's going to happen if you lose that money money money what's going to happen if there is a what's going to happen if there is a what's going to happen if there is a risk you know what are the risk can you risk you know what are the risk can you risk you know what are the risk can you pivot are you ready for pivot and there pivot are you ready for pivot and there pivot are you ready for pivot and there there is a mental readiness for taking there is a mental readiness for taking there is a mental readiness for taking money guys because the day you take a money guys because the day you take a money guys because the day you take a take money there is someone else sitting take money there is someone else sitting take money there is someone else sitting there and now for the rest of your life there and now for the rest of your life there and now for the rest of your life the the money is going to live with you the the money is going to live with you the the money is going to live with you and if you lose it the the burden and if you lose it the the burden and if you lose it the the burden >> yeah [laughter] the responsibility right >> yeah [laughter] the responsibility right >> yeah [laughter] the responsibility right that you take yeah it's just like every that you take yeah it's just like every that you take yeah it's just like every day like if you lose money every morning day like if you lose money every morning day like if you lose money every morning you wake up you're like damn you know I you wake up you're like damn you know I you wake up you're like damn you know I lose that you know investor money so lose that you know investor money so lose that you know investor money so basically three things one where you are basically three things one where you are basically three things one where you are in the in your journey uh what is the in the in your journey uh what is the in the in your journey uh what is the use of the money and and what is your, use of the money and and what is your, use of the money and and what is your, you know, uh risk mitigation and how you know, uh risk mitigation and how you know, uh risk mitigation and how you're going to make sure that you you're going to make sure that you you're going to make sure that you return the money and you have a um return the money and you have a um return the money and you have a um healthy exit strategy because now you're healthy exit strategy because now you're healthy exit strategy because now you're responsible uh you have a a duty to to

responsible uh you have a a duty to to responsible uh you have a a duty to to your investors your investors your investors >> and and you know you shared like a sort >> and and you know you shared like a sort >> and and you know you shared like a sort of like a checklist offline with with me of like a checklist offline with with me of like a checklist offline with with me and we can um share with whoever's here. and we can um share with whoever's here. and we can um share with whoever's here. >> Yeah, absolutely. And there there is a >> Yeah, absolutely. And there there is a >> Yeah, absolutely. And there there is a checklist and we will share that checklist and we will share that checklist and we will share that checklist with you. We'll drop it in the checklist with you. We'll drop it in the checklist with you. We'll drop it in the >> uh after the after the show. Um >> uh after the after the show. Um >> uh after the after the show. Um >> we're going to drop it in in in the in >> we're going to drop it in in in the in >> we're going to drop it in in in the in the link. the link. the link. >> But there is a checklist for uh startup >> But there is a checklist for uh startup >> But there is a checklist for uh startup readiness readiness readiness >> for each stage. Um >> for each stage. Um >> for each stage. Um >> but I feel like even even if you you're >> but I feel like even even if you you're >> but I feel like even even if you you're just checking all the check boxes, just checking all the check boxes, just checking all the check boxes, there are these three major questions there are these three major questions there are these three major questions that you need to ask. And of course you that you need to ask. And of course you that you need to ask. And of course you need to check all the boxes uh before go need to check all the boxes uh before go need to check all the boxes uh before go ask money. ask money. ask money. >> Yeah. Do you have another question? >> Yeah. Do you have another question? >> Yeah. Do you have another question? >> Uh uh Roland Fu, >> Uh uh Roland Fu, >> Uh uh Roland Fu, you talked about the hidden gem you talked about the hidden gem you talked about the hidden gem and she also mentioned opportunities and she also mentioned opportunities and she also mentioned opportunities like Uber and Canva that many investors like Uber and Canva that many investors like Uber and Canva that many investors turn down. What do you factor in when turn down. What do you factor in when turn down. What do you factor in when looking for that hidden gem as a VC looking for that hidden gem as a VC looking for that hidden gem as a VC especially in an AI era?

Yeah, thank you. Yeah, thank you. The first thing we look for is The first thing we look for is The first thing we look for is the size of the opportunity. Like, you the size of the opportunity. Like, you the size of the opportunity. Like, you know, can you um solve a big problem? know, can you um solve a big problem? know, can you um solve a big problem? When I'm looking for a hidden gem, I When I'm looking for a hidden gem, I When I'm looking for a hidden gem, I look at the uh the ideas, the solution, look at the uh the ideas, the solution, look at the uh the ideas, the solution, try to find a big problem that can be try to find a big problem that can be try to find a big problem that can be solved by this solution. It could be a solved by this solution. It could be a solved by this solution. It could be a local problem but then how we can extend local problem but then how we can extend local problem but then how we can extend that into a global problem right. So that into a global problem right. So that into a global problem right. So because you want you want to build a because you want you want to build a because you want you want to build a solution that globally solve a real solution that globally solve a real solution that globally solve a real pushing pain right a severe pain. So and pushing pain right a severe pain. So and pushing pain right a severe pain. So and then we look at the different business then we look at the different business then we look at the different business models very uh lucrative and successful models very uh lucrative and successful models very uh lucrative and successful business model and looking at those business model and looking at those business model and looking at those business models and looking at those business models and looking at those business models and looking at those revenue models we think okay so if you revenue models we think okay so if you revenue models we think okay so if you pivot if you change this now it's a pivot if you change this now it's a pivot if you change this now it's a platform you're just building a product platform you're just building a product platform you're just building a product but with this few tweaks it become a but with this few tweaks it become a but with this few tweaks it become a platform platform platform and then we look at the different ways and then we look at the different ways and then we look at the different ways you can generate revenue you can generate revenue you can generate revenue right you can may think of one Okay. But right you can may think of one Okay. But right you can may think of one Okay. But we may find like 10 different ways and we may find like 10 different ways and we may find like 10 different ways and it's just by brainstorming. We're going it's just by brainstorming. We're going it's just by brainstorming. We're going to sit I'm just thinking about like to sit I'm just thinking about like to sit I'm just thinking about like office hours you brainstorm with Ben.

office hours you brainstorm with Ben. office hours you brainstorm with Ben. [laughter] [laughter] [laughter] So, we're going to have a conversation So, we're going to have a conversation So, we're going to have a conversation about like how what are the other um about like how what are the other um about like how what are the other um ways of making money because Uber it was ways of making money because Uber it was ways of making money because Uber it was just it was just a very luxury you know just it was just a very luxury you know just it was just a very luxury you know taxi service at the beginning but then taxi service at the beginning but then taxi service at the beginning but then when they applied the platform when they applied the platform when they applied the platform methodology which is a multi-sided methodology which is a multi-sided methodology which is a multi-sided uh marketplace became Uber Amazon others uh marketplace became Uber Amazon others uh marketplace became Uber Amazon others you know Jeff Bezos fly wheel is exactly you know Jeff Bezos fly wheel is exactly you know Jeff Bezos fly wheel is exactly you know what we talk about you know uh you know what we talk about you know uh you know what we talk about you know uh network effects. So we have all these network effects. So we have all these network effects. So we have all these different business models all these different business models all these different business models all these different things available different things available different things available that we look into your uh uh product and that we look into your uh uh product and that we look into your uh uh product and your idea and we think about like how we your idea and we think about like how we your idea and we think about like how we can now extend and expand it into a can now extend and expand it into a can now extend and expand it into a bigger uh market bigger uh market bigger uh market addressing a way bigger problem. addressing a way bigger problem. addressing a way bigger problem. >> Thank you. >> Thank you. >> Thank you. >> Yeah, absolutely. >> Yeah, absolutely. >> Yeah, absolutely. >> Uh do we have any more questions? We >> Uh do we have any more questions? We >> Uh do we have any more questions? We have time for one more, I think.

No, quiet on the set. No, quiet on the set. Um, well, thank you. Um, Um, well, thank you. Um, Um, well, thank you. Um, I love I love everything that we covered I love I love everything that we covered I love I love everything that we covered today and and just bringing us back to today and and just bringing us back to today and and just bringing us back to the theme of the month of community the theme of the month of community the theme of the month of community building. um and how this is what this building. um and how this is what this building. um and how this is what this is. These are the types of conversations is. These are the types of conversations is. These are the types of conversations that we're going to continue to nurture that we're going to continue to nurture that we're going to continue to nurture uh while we're here and while we're uh while we're here and while we're uh while we're here and while we're developing the ecosystem here at the developing the ecosystem here at the developing the ecosystem here at the innovation studio with noblefounder.com. innovation studio with noblefounder.com. innovation studio with noblefounder.com. Um and that's a lot of what we're Um and that's a lot of what we're Um and that's a lot of what we're speaking about unfunded founder Fridays. speaking about unfunded founder Fridays. speaking about unfunded founder Fridays. Um do you want to say something just in Um do you want to say something just in Um do you want to say something just in closing? closing? closing? >> Yeah, absolutely. So our theme for this >> Yeah, absolutely. So our theme for this >> Yeah, absolutely. So our theme for this uh month was community and um that's a uh month was community and um that's a uh month was community and um that's a role of community in bringing everybody role of community in bringing everybody role of community in bringing everybody investors uh other stakeholders investors uh other stakeholders investors uh other stakeholders government corporate government corporate government corporate u universities and founders in one place u universities and founders in one place u universities and founders in one place preparing founders for success not just preparing founders for success not just preparing founders for success not just necessarily fundraising. We want them to necessarily fundraising. We want them to necessarily fundraising. We want them to become successful and that's the goal of become successful and that's the goal of become successful and that's the goal of Noble founder working uh with innovation Noble founder working uh with innovation Noble founder working uh with innovation studio which is like a big part of it studio which is like a big part of it studio which is like a big part of it and then innovation hub and then and then innovation hub and then and then innovation hub and then innovation tower [laughter] innovation tower [laughter] innovation tower [laughter] >> innovation >> innovation >> innovation >> innovation district right >> innovation district right >> innovation district right >> but everything that we covered here the >> but everything that we covered here the >> but everything that we covered here the VC is is science and there is and law is VC is is science and there is and law is VC is is science and there is and law is a big part of it this is what I tell a big part of it this is what I tell a big part of it this is what I tell people and again people and again people and again everything that we covered today is just

everything that we covered today is just everything that we covered today is just like a you know uh very very high level like a you know uh very very high level like a you know uh very very high level you can you may find uh use cases that you can you may find uh use cases that you can you may find uh use cases that are like very different that what we are like very different that what we are like very different that what we discussed what we have discussed is just discussed what we have discussed is just discussed what we have discussed is just like a common use cases in the VC and like a common use cases in the VC and like a common use cases in the VC and investment world it's way way more investment world it's way way more investment world it's way way more deeper legally and business-wise so uh deeper legally and business-wise so uh deeper legally and business-wise so uh if you want to learn more about it uh if you want to learn more about it uh if you want to learn more about it uh we're going to have uh we can introduce we're going to have uh we can introduce we're going to have uh we can introduce you to legal councils that they can help you to legal councils that they can help you to legal councils that they can help you with all the legalities. It's very you with all the legalities. It's very you with all the legalities. It's very important again when you're doing your important again when you're doing your important again when you're doing your fundraising, take it very seriously. fundraising, take it very seriously. fundraising, take it very seriously. When money get involves, it's gets When money get involves, it's gets When money get involves, it's gets really really dangerous. Sometimes really really dangerous. Sometimes really really dangerous. Sometimes people even get arrested if you don't do people even get arrested if you don't do people even get arrested if you don't do it right. So, um you know, consult with it right. So, um you know, consult with it right. So, um you know, consult with a legal uh expert and and make right a legal uh expert and and make right a legal uh expert and and make right decisions, but we're here to help and decisions, but we're here to help and decisions, but we're here to help and introduce and support you. introduce and support you. introduce and support you. >> Yes. I think that's it's a great way to >> Yes. I think that's it's a great way to >> Yes. I think that's it's a great way to continue to talk about uh nofounder.com continue to talk about uh nofounder.com continue to talk about uh nofounder.com and and what we're uh what we'll be and and what we're uh what we'll be and and what we're uh what we'll be rolling out here in the coming months.

rolling out here in the coming months. rolling out here in the coming months. We're just getting started and it's We're just getting started and it's We're just getting started and it's super exciting. super exciting. super exciting. >> Um we just want to thank everybody >> Um we just want to thank everybody >> Um we just want to thank everybody that's here present. Our studio that's here present. Our studio that's here present. Our studio audience, thank you for being here in audience, thank you for being here in audience, thank you for being here in person. It means a lot to us. person. It means a lot to us. person. It means a lot to us. >> Uh to anybody listening online on >> Uh to anybody listening online on >> Uh to anybody listening online on Instagram or YouTube or our Creattopia Instagram or YouTube or our Creattopia Instagram or YouTube or our Creattopia page, thank you for listening. Um, thank page, thank you for listening. Um, thank page, thank you for listening. Um, thank you to our sponsors 801 Travis and the you to our sponsors 801 Travis and the you to our sponsors 801 Travis and the innovation hub. Um, and thank you Ben innovation hub. Um, and thank you Ben innovation hub. Um, and thank you Ben for joining me in this conversation. for joining me in this conversation. for joining me in this conversation. >> Absolutely. Thank you. Really appreciate >> Absolutely. Thank you. Really appreciate >> Absolutely. Thank you. Really appreciate that.