Backstage Capital’s Mission & Values Through the Founders’ Words
Why this VC has Nothing to Lose & Why She Launched the Fund
Why Arlan Has Nothing To Lose & Why She Started Her Fund
Since March this year, I’ve had the pleasure of working with Backstage Capital as their Investor in Residence. The IiR role isn’t common in the industry and it’s not a surprise once you learn about the innovative Managing Parter, Arlan Hamilton. Arlan has blazed a trail within the Venture Capital space by launching a microfund that provides capital to a growing segment — founders of underrepresented groups. The following is an excerpt from the Mission & Values Podcast where host Bryan Landers and Arlan discuss her perspective and reasons for launching Backstage Capital.
To hear the full episode on Arlan and 5 of the Backstage Capital Portfolio Founders, check out the podcast here. This transcript has been edited and condensed.
Bryan Landers: You mentioned something about how you kinda of have nothing to lose. Can you tell me a bit more about why you feel that way?
Arlan Hamilton: I’ve had some really amazing experiences in my life and I’ve also had some not so great experiences. One of those not so great experiences has been not having a home for a while — several months at a time. I’ve been in the position where I didn’t have anything to eat. But I’ve also been in the position where I have stayed at a 5-star hotel in a foreign country working for a musical artist. I know what both perspectives feel like and there is just nothing anyone can give me or take from me that would incentivize me to stray from the moral fiber and convictions I have.
Dear White Venture Capitalists: If you’re reading this, it’s (almost!) too late.
Venture Capital: capital invested in a project in which there is a substantial element of risk, typically a new or…medium.com
BL: You mention in a lot of your blog posts — most notably the Dear White White Venture Capitalists story on Medium — that this is a business opportunity. This is about making money. It’s not a charity, in terms of investing in underrepresented founders. This is the point you were trying to get across in the blog post right?
AH: Absolutely! When I wake up every morning I don’t think about how I’m going to socially impact things today. I think about how do I position the fund in the best way to make returns to my investors, which I have a fiduciary duty to meet. For me, I was obsessed with monopoly since I was 5. I ran small businesses since I was in the 3rd grade. I consider myself a bit of a shark and this is an opportunity that’s wide open.
BL: Here’s a question VC’s love to ask founders — Why now? Why raise a fund and invest in startups? Why is this the most important thing you could be working on?
AH: I think it’s long overdue. I didn’t set out to do this, but I didn’t see this type of fund in the market. I found that it was not only a great mission but it was a great opportunity to invest in an untapped segment of the tech startup population.
Earnest Sweat is an Entrepreneurial Engineer for Camelback Ventures and an Investor in Residence for Backstage Capital. If you have any questions or requests please connect with Earnest through LinkedIn, Twitter, or AngelList.
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