The VC Firm Breaking The Barrier To Entry In Venture Capital w/ Jesse Randall (CEO)
In this episode, Shamus Madan chats with Jesse Randall about the challenges and limitations of traditional venture capital, introducing listeners to Sweater's unique investment process. They discuss the difficulties accredited investors face, the importance of marketing in the investment world, and trust and transparency in private market investing. The conversation also covers valuation methods, the impact of equity crowdfunding, and Sweater's mission and approach to investment.
Key Points
- Sweater VC is working to democratize private investing by allowing non-accredited investors to invest in venture-backed companies through a user-friendly app and a fund structure that offers semi-annual liquidity windows.
- Jesse Randolph emphasizes the importance of trust in private investing, detailing how Sweater VC ensures this through a rigorous due diligence process, a strong deal team with entrepreneurial and investment experience, and transparent communication with investors.
- Sweater VC's approach contrasts with equity crowdfunding by offering a managed fund that invests in venture-qualified companies, providing diversification and professional management, and targeting companies that have the potential for significant growth and interaction with consumers.
On the podcast today, Jesse Randall joins to discuss how his firm SweaterVC is breaking the barrier to entry into Venture Capital.
So, to start angel investing, traditionally, you have to be an accredited investor. To do so, you need a $1 Million net worth and an income of a couple hundred thousand dollars per year, singling out a large portion of the population.
"And I thought, you know what? I could build a venture fund. So I started going through this process of looking for an anchor LP to come in and maybe build this thing around. And it became immediately apparent that I wouldn't be able to invest in my own VC fund because I was not an accredited investor.
And I thought, wait a minute. I'm the guy running the fund. How could I not put money in my own fund?" - Jesse Randall
Listen to the full story.
Twitter of Host: @mbitpodcast
Twitter of Guest: @SweaterCEO
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Transcript
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