Funds that Won

For today's episode of Funds That Won, I sit down with Ludwig Schulze from Alumni Ventures. Ludwig discusses how their fund uses alumni connections to find and invest in new businesses. He explains that they don’t lead investment rounds but instead invest alongside other big venture funds. Ludwig emphasizes the importance of having a lot of investment opportunities and their method of carefully evaluating these opportunities. He also shares how they've successfully raised money from individual investors and the value of building good relationships with the founders they support.

For today's episode of Funds that Won, I am posting the recording of a panel we did this year at Fund Launch Live. This panel discussion was on the future of technology in alternative assets. These were the panelists:

1. Andrew Smith: GP at the Savory Fund - $750 million AUM
2. Bryce Sutton: Co-Founder and Managing Partner at Summit Global Investments - $2+ Billion AUM
3. Dan Young: Co-Founder of Ugly Unicorn crypto fund - 8 Figures AUM
4. Koloa Wolfgramm: Founder of Wolfgramm Capital - $600 million AUM

There were a lot of great conversations during this panel! Enjoy

In today's episode of Funds That Won, I sit down with Zach Brown, who is a founding partner at New Reign Capital. New Reign Capital is an investment fund that focuses on commercial insurance. He explains that "New Reign" symbolizes new leadership, reflecting his and his partner's goal to be the mentors they never had. New Reign Capital is different from their previous company, Modern Rain, and aims to improve efficiency in acquired companies by centralizing their back-office functions. They own nine companies and look for new acquisitions that can benefit from sharing their existing customer base. Zach discusses their plans to expand by starting a larger fund, aiming to raise $30 to $50 million to grow their business model and acquire bigger companies.

Zach details New Reign Capital's approach to business, which keeps acquired companies operationally independent rather than merging them. This method maintains each company's specialized skills and avoids the problems large merged entities often face, such as losing focus and efficiency. He talks about the commercial insurance industry and how his firm adds value through deep industry knowledge and a strong network. This strategy helps streamline and speed up the claims process across various service stages. Zach also shares personal stories about his move to California and early career challenges, highlighting his commitment to hard work, integrity, and community engagement in the industry.

For today's episode, I am uploading the audio from my presentation at Fund Launch Live 2024! In this presentation, I break down the 4 core pillars for structuring your investment offering:

1. Your asset class
2. Your strategy
3. Your team
4. The structure of your offer

On top of that, I also dive into how you can properly communicate these pillars to potential investors.

Enjoy!

For today's episode, I sit and give an update on our GP stakes fund - Fund Launch Partners. With the successful raise of our initial $1.2 million from friends and family, we've set a strong foundation and have really validated our GP stakes thesis. Despite the complexity and the time it has taken to get to our first close, the experience has been instrumental in shaping our strategy and operations, confirming the massive job it is to run a fund.

Over the last few moths, we've struck deals with very impressive emerging funds like Ollin Ventures, Venatic Capital, and a PE/Real Estate firm out of Arizona. They have been great to work with, and we really believe in their potential to scale.

For today's episode, I sit down with Todd Recknagel from Three20 Capital Group. Todd dives into franchise investment and his family office's strategic operations. He outlines their focus on franchise companies and their collaborative strategy with private equity firms, leveraging extensive franchising experience. This approach has cultivated a successful track record, emphasizing the importance of active involvement in deal creation, management guidance, and industry knowledge utilization. The conversation highlights the investment philosophy and operational model of Recknagel's family office, established after successful exits from multiple companies, targeting middle-market entities and facilitating growth without excessive capital commitment to any single deal.

Todd also discusses investment management practices, such as liquidity handling and the value of proprietary deal sourcing, are discussed, along with the critical role of operational excellence in enhancing portfolio company value. He emphasizes the profitability of franchisees as a key performance metric, demonstrating a deep understanding of the franchising model and a strategic, risk-balanced investment approach.

For today's episode, I sit down with David Mullings from Blue Mahoe Capital. David shared insights on bridging investors with the Caribbean's vibrant markets, particularly leveraging Jamaica's stellar stock market performance. By emulating the business models of Berkshire Hathaway and Blackstone, Blue Mahoe Capital offers diversified investments across real estate, private equity, and public equities, aiming to make Caribbean growth accessible to global investors. Bowlings highlighted the company's dedication to educating investors and promoting a global perspective among its portfolio companies.

David also shared personal success habits, including maintaining life balance, mindfulness, continuous education, and philanthropy. He criticized the industry's common pitfalls, such as under-appreciating marketing, hoarding equity, and unfair negotiation practices. His commentary not only illuminates the untapped opportunities in the Caribbean but also emphasizes the importance of ethical investment practices and personal development in achieving business success.

For today's episode, I sit down with Thomas Wilkinson, the founder of Ollin Ventures. Tom describes Ollin Ventures as a culmination of his life's experiences, with a focus on seizing the current favorable market conditions that present significant discounts on valuations in the venture capital space. Wilkinson's strategy is centered around early-stage, pre-seed, and seed investments, with a particular interest in technology transfers from universities, aiming to commercialize innovations developed in academic settings. His personal investment experience, marked by successful outcomes, has inspired friends and family to join him in this venture, laying the groundwork for Ollin Ventures.

Wilkinson details the operational model of Ollin Ventures, emphasizing the fund's aim to invest in 50 companies, primarily sourced from tech transfer offices, to optimize the fund's impact and returns. Ollin Ventures also supports startups through an incubator program, offering comprehensive assistance including free legal and accounting services, mentorship, and a focus on entrepreneurs under 35. Wilkinson's passion for venture capital, his belief in Utah's potential as an innovation hub, and his commitment to impactful investments underscore the promising outlook for Ollin Ventures.

For today's episode, I have the pleasure of sitting down with Clay Gordon from Stout Street Capital. Stout Street Capital, based in Denver, focuses on early-stage investments with sensible risks and outsized returns, mainly targeting "flyover" states and Canada. Having made 80 investments since 2017, they've shifted to a single check strategy for higher initial ownership, diverging from the typical VC practice of doubling down on winners. This method is based on their data analysis, suggesting a larger ownership in winning investments without following on in later rounds.

They plan to scale, potentially increasing their AUM to enhance their capacity to support companies and adjust investment sizes. Initially sparked by the structured investment gap among high-net-worth individuals, the founders aimed for a systematic, scalable approach akin to a franchise model. This ensures anyone could replicate their investment success. Alongside initiatives like the Unmet Conference, this strategy underpins their broader aim to offer more than financial returns, aiming for a significant ecosystem impact.

In today's episode of Funds That Won, I have the privilege of sitting down with Jim Falbe from Saguaro Capital. Jim talks about starting his own investment firm, Saguaro Capital, after working in humanitarian aid. He explains how the firm uses advanced technology and AI to make better investment choices. Jim shares the challenges of creating a high-quality investment firm, and the importance of having a supportive board of directors to guide the firm.

Additionally, Jim discusses an innovative strategy he uses to raise money for his company, which is offering a share of the business in return for financial support. This approach helps them get the funds they need without giving away too much control. He highlights the importance of learning and growing, both for himself and his team. Jim's journey shows his commitment to blending traditional investing with new technologies to improve his firm's success.