Krista Morgan of Stage Fund on Investing in Failed Startups and Navigating Distressed Assets

Greg Head of Scaling Point on Changing Startup Funding and Drawbacks of Venture Capital Funding

In this conversation, venture capitalist David Paul [https://www.linkedin.com/in/davidpaulvc/] and Greg Head [https://www.linkedin.com/in/gregheadaz/] of Scaling Point [https://scalingpoint.com/] discuss the changing landscape of funding for startups. They explore the drawbacks of relying on venture capital (VC) funding and the benefits of bootstrapping and practical founder approaches. Greg emphasizes that VC funding is not necessary for success and that there are multiple paths to building valuable software companies. They also discuss the role of private equity in acquiring SaaS companies and the importance of profitability in the growth game. Greg offers advice to founders and invites them to connect with him for further guidance. You can watch/listen to the podcast on YouTube [https://www.youtube.com/@Capitalstackpodcast], Spotify [https://open.spotify.com/show/5OlybiAA2ctXcMKFBE82gD], and Apple [https://podcasts.apple.com/us/podcast/the-capital-stack/id1607203251]. Takeaways * VC funding is not necessary for building valuable software companies * Bootstrapping and practical founder approaches can lead to success * Private equity plays a significant role in acquiring SaaS companies * Profitability is crucial in the growth game * There are multiple paths to success in the startup world Sound Bites * "VC funding should be used in small doses only when it's really appropriate, like opioids." * "VC funding is usually misunderstood by founders and overprescribed by big investors." * "Getting to product market fit is the universal problem, whether you are funding it yourself or out of a service business or have a little angel funding or get to customer revenues." Chapters 03:08 The Changing Landscape of Startup Funding 09:15 The Drawbacks of Venture Capital Funding 15:37 The Benefits of Bootstrapping and Practical Founders 27:31 The Importance of Profitability in the Growth Game 29:13 Multiple Paths to Success in the Startup World

Dan Soviero of Signature Lacrosse on Over-Investing in Culture and Streamlining the Ordering Process

Dan Soviero [https://www.linkedin.com/in/dan-soviero/], founder of Signature Lacrosse [https://signaturelacrosse.com/], shares his entrepreneurial journey and how he built a successful sports equipment and events company with venture capitalist David Paul [https://www.linkedin.com/in/davidpaulvc/]. He discusses the importance of hard work, discipline, and doing what you love. Dan explains how Signature Lacrosse expanded its offerings to solve the biggest problem in youth sports: ordering custom uniforms. He highlights the role of technology in streamlining the ordering process and improving the customer experience. Dan also shares his vision of getting more kids involved in sports and the impact his company is making in the industry. You can watch/listen to the podcast on YouTube [https://www.youtube.com/@Capitalstackpodcast], Spotify [https://open.spotify.com/show/5OlybiAA2ctXcMKFBE82gD], and Apple [https://podcasts.apple.com/us/podcast/the-capital-stack/id1607203251]. Takeaways * Hard work, discipline, and doing what you love are key to building a successful business. * Solving the biggest problem in your industry can lead to significant growth and impact. * Technology, such as custom software, can streamline processes and improve the customer experience. * The goal should be to get more kids involved in sports and provide them with a positive experience. * Over-investing in culture and aligning the team around a shared vision can lead to a great workplace. Sound Bites * "My dad was really big on us paying rent to stay at his house and to eat his food from a pretty young age. He kind of pushed us into the entrepreneurial spirit." * "We have such a fulfilled life and so much fulfillment in every single day because we're doing what we love and we're making the impact that we want to make every single day." * "Cash conversion cycle is king. Revenue is vanity, net income is sanity, and cash is reality." Chapters 00:00 The Signature Lacrosse Journey 19:06 Solving the Biggest Problem in Youth Sports 26:53 Tech-Enabling the Ordering Process 30:51 Lessons Learned and Impacting Youth Sports

Jon Corrin of Xilo on Strong Onboarding Processes and Pipeline Automation in the Insurance Industry

In this conversation, David Paul [https://www.linkedin.com/in/davidpaulvc/] interviews Jon Corrin [https://www.linkedin.com/in/jonathancorrin/], the co-founder of Xilo [https://www.xilo.io/], a vertical SaaS company in the insurance industry. They discuss topics such as pipeline management, the evolution of the insurance industry, Xilo's value proposition, and their market segmentation. Jon shares insights on the importance of product development, the role of instinct in decision-making, and the significance of a strong onboarding process. He also talks about the fundraising journey and the qualities he looks for in investors. The conversation concludes with a discussion on the best business advice Jon has received and his favorite book, 'The 33 Strategies of War' by Robert Greene. You can watch/listen to the podcast on YouTube [https://www.youtube.com/@Capitalstackpodcast], Spotify [https://open.spotify.com/show/5OlybiAA2ctXcMKFBE82gD], and Apple [https://podcasts.apple.com/us/podcast/the-capital-stack/id1607203251]. Takeaways * Pipeline management is crucial in the insurance industry, and Xilo has focused on automating processes and improving operational metrics to increase pipeline. * Xilo's value proposition lies in providing a great customer experience on the form submission side and automating workflows into legacy back-office software. * Jon emphasizes the importance of listening to customers and using instinct and gut feelings to make decisions as a founder. * A strong onboarding process is essential for customer success, and Xilo provides one-on-one onboardings for each user to ensure a smooth experience. * When seeking investors, Jon looks for those who can provide access to capital, talent, and customers. * Jon recommends 'The 33 Strategies of War' by Robert Greene as a compelling book that combines history and business advice. Sound Bites * "It's 6X what it was in Q4. So we're doing well." * "You know, there are so many facets to that because I didn't come from the insurance industry." * "I'm definitely the type of person that can create a funnel, handle all the operational metrics." Chapters 00:00 Introduction and Podcast Room Banter 02:10 Pipeline Management and Xilo's Growth 06:41 Xilo's Value Proposition and Automation in the Insurance Industry 10:46 Xilo's Target Market and Growth Potential 15:33 Fundraising and Investor Criteria 23:48 Creating a Strong Onboarding Process 26:05 Book Recommendation: 'The 33 Strategies of War'

Krista Morgan of Stage Fund on Investing in Failed Startups and Navigating Distressed Assets

Krista Morgan [https://www.linkedin.com/in/kristamorgan/], General Partner at Stage Fund [https://www.stagefund.com/], joins venture capitalist David Paul [https://www.linkedin.com/in/davidpaulvc/] to discuss their unique approach to investing in early-stage technology companies that are unable to raise more funding. Stage Fund focuses on control acquisitions and provides a second chance for struggling companies by offering new capital and a new path forward. They often acquire distressed assets and work closely with founders to turn the companies around. Krista emphasizes the importance of alignment, accountability, and operational expertise in the success of these companies. She also discusses the challenges and opportunities in the emerging asset class of early-stage private equity. You can watch/listen to the podcast on YouTube [https://www.youtube.com/@Capitalstackpodcast], Spotify [https://open.spotify.com/show/5OlybiAA2ctXcMKFBE82gD], and Apple [https://podcasts.apple.com/us/podcast/the-capital-stack/id1607203251]. Takeaways * Stage Fund specializes in control acquisitions of early-stage technology companies that are unable to raise more funding. * They provide struggling companies with a second chance by offering new capital and a new path forward. * Alignment, accountability, and operational expertise are crucial for the success of these companies. * The emerging asset class of early-stage private equity offers opportunities for new investment strategies and approaches. Sound Bites * "We are a control investor, making control acquisitions of early-stage technology companies that are unable to raise more funding." * "The number of calls I get where people think they're at that place of getting a hard deal done, but actually being there are two very different things." * "We really like finding value in the chaos. Like I like chaos." Chapters 03:13 The Stage Fund’s Approach to Investing 07:11 Challenges in Getting Deals Done 12:53 The Importance of Alignment and Accountability 25:31 The Future of Early-Stage Tech Investing

Nathan Firth of NewRocket on Finding Success in Niche Markets and Productizing Services

Nathan Firth [https://www.linkedin.com/in/nathanfirth/], founder and CEO of New Rocket [https://www.newrocket.com/], founder of LaunchPad San Diego [https://www.linkedin.com/company/launchpad-sd/], and current CCO of ShareLogic [https://sharelogic.com/] shares his journey as an entrepreneur and the success of his tech-enabled service company with venture capitalist David Paul [https://www.linkedin.com/in/davidpaulvc/]. He emphasizes the importance of finding a niche market and specializing in one thing to become the best at it. Firth discusses the benefits of being a tech-enabled service company and how they productize their services to increase efficiency and deliver more value to customers. He also talks about the challenges of scaling a company and the lessons he learned along the way. Firth is now exploring new opportunities and investing in startups. You can watch/listen to the podcast on YouTube [https://www.youtube.com/@Capitalstackpodcast], Spotify [https://open.spotify.com/show/5OlybiAA2ctXcMKFBE82gD], and Apple [https://podcasts.apple.com/us/podcast/the-capital-stack/id1607203251]. Takeaways * Finding a niche market and specializing in one thing can lead to success as an entrepreneur. * Productizing services can increase efficiency and deliver more value to customers. * Scaling a company comes with challenges and requires careful allocation of resources. * Exploring new opportunities and investing in startups can lead to new ventures and growth. Sound Bites * "Find a niche market, specialize, and be the absolute best at doing that one thing." * "Productizing our services made us more efficient and allowed us to deliver more value to customers." * "Finding the right balance in company size can maintain agility and a startup culture." Chapters 06:10 The New Rocket Story 08:03 Niche Market and Productization 14:01 Lessons in Scaling a Company