Episode 10: It’s About Damn Time an Interview with Arlan Hamilton

Acquania Escarne 0:00

You are listening to The Purpose of Money Podcast Episode 10: It's About Damn Time an Interview with Arlan Hamilton.

You are listening to The Purpose of Money Podcast, a podcast where we talk about ways to build wealth and create more freedom in your life today. I am your host Acquania Escarne.

Hey, everybody. Welcome back to The Purpose of Money podcast. If you've been listening over the last couple of weeks, you know, I'm your host, Acquania Escarne and I'm here to talk about all things money. This week, I'm so excited. We have a special guest, Arlan Hamilton, the Venture Capitalist from Backstage Capital, on the podcast talking about her brand new book, and how she went from homelessness in 2015 to a venture capitalist helping disrupt the tech industry. Please make sure to listen to the full episode. She gives you a discount code on her course. And I also have a special giveaway that only those who listen to the end will know. Check it out. Give me a review and let me know what you think. Hope you enjoy.

Hey guys, welcome back to The Purpose of Money Podcast. I'm so glad to have you. Arlan Hamilton is the Founder and Managing Partner of Backstage Capital, a venture capital fund. Arlan built Backstage Capital from the ground up while homeless. Backstage Capital is dedicated to minimizing funding disparities in tech by investing in high potential founders who are people of color, women, and/or members of the LGBT community started in 2015. Backstage Capital now has raised more than $7 million and invested in more than 130 startup companies, led by underestimated founders. In 2018, Arlan co-founded Backstage Studio, which launched four accelerator programs for underestimated founders in Detroit, Los Angeles, Philadelphia and London. May 5, Arlan has her new book-It's About Damn Time: How to Turn Being Underestimated into Your Greatest Advantage coming out. Today, we're going to talk about Arlan's humble beginnings and her book on the podcast. Arlan, welcome to the show. How you doing today?

Arlan Hamilton 2:26

Hey, thanks for having me. I am doing pretty pretty well today.

Acquania Escarne 2:30

Awesome. So before we dive into the show, can you tell my listeners what is a venture capital fund? And why do we need them? Just to help people who may not be familiar with that term?

Arlan Hamilton 2:42

Yeah, so venture capital is a portion of private equity that is used to invest in startup companies, usually at their earliest stages and follow them through their growth stages to make them ready for an exit. So ready for for public trading on on stock markets or being acquired by our much bigger company. So, things that we use every day like Instagram, Twitter, Airbnb, sometimes people use that those types of companies have had venture capital behind them at various stages, and that kind of exploded their abilities and their resources. I don't necessarily think that everyone or I know that not everyone needs venture capital. It was a tool that I have used to break into the financial world for underrepresented founders and to get that capital to them. There's another another distinction is that I am investing other people's money for the most part, as opposed to being an angel investor with venture capital. Now, today, I do invest my own money because of the last five years been working towards being able to do that. And so now I have a large ownership in in the fund itself and in the company, but venture capitalists, usually, other people put money behind a fund. And then you need to make more money for them to give back to them.

Acquania Escarne 4:09

That's awesome. And so basically you exist to help raise money, or you initially raise money in order to support other potential startups or startups that already exist that maybe need more financial support. And like you said, you're using other people's money to do it. And now you're investing a little bit of your own. Did you always envision yourself as becoming a Venture Capitalist?

Arlan Hamilton 4:34

Oh, no, no way. I'm going to be 40 in 2020. So this year, I'll be 40. And I didn't know what venture capitalism was 10 years ago, I started studying it about nine or so years ago. And it really was just all the research that I did once I understood about startups and entrepreneurship a little bit more. I had always been an entrepreneur, but never knew what to call it or what it was the standards and all that. So I started doing all this research at the top of 2011. And once I realized, "Oh okay, all of the funding that goes to innovative companies like startups, 90% of it literally is going to white men. And they make up a third of the population." I didn't think that made any sense, as you can imagine. And I said, "Well, if if I'm over here trying to raise money for my company, that's one thing. But if I don't help change the whole landscape, my one company won't make a difference because we'll I'll be faced with this over and over again. And other people like me will be too." So I wanted that healthy competition that you get from being on solid footing and equal footing and I chased that. Instead of chasing one company, I chased multiple.

Acquania Escarne 5:51

That's great. I really appreciate you doing that. So I did mention in the intro that when you first started out, you were homeless. So how did you stay motivated to pursue your dream and starting Backstage Capital? What are some of the things that kept you focused on that goal? And how long did it take you to find your first investor?

Arlan Hamilton 6:14

From 2011 to 2015, I got nose everywhere I went, I tried for that whole time. And for most of that period, I had housing insecurity. And for the towards the end of that period, I had nowhere to live. And I kept going, because I knew that the company the fund needed to exist. I knew that there were so many founders, especially black founders and women who were building companies and were being overlooked and discarded and disregarded and it didn't make any sense to me that they were just not getting in the doors. I wanted to I wanted to open those doors. So it was difficult. I had a couple things going on at once and and it was a very personal problem going on with going on with lack of capital and like a resources myself, and then at the same time, I'm fighting for this overall mission for multiple people for hundreds or what would become thousands of people. And what kept me going was knowing that I was right. And knowing that it was the right thing to do. So those two things, you know, the competitive side of me said, "This is right, I'm not wrong about this. There needs to be this type of funding. And it needs to be it needs to happen now". One of the reasons I call my book, It's About Damn Time because it's like- we are way way behind.

Acquania Escarne 7:28

Absolutely. So I think it's amazing what you're doing to help startups and underestimated women and groups in our communities. I see you've gone global. Also, you have an accelerator program in London, for example. Do you have plans to expand to other countries with emerging markets?

Arlan Hamilton 7:47

Yeah, we get asked this a lot. Here's here's the real answer. The real answer is, even though since 2015, I have raised millions of dollars, we still are at a deficit, right? We still are going uphill climb of how much we get to raise as Backstage. And there's a million reasons why, I talk about a lot of them in the book. But mostly it's, you know, it's an institutional thing that I'm fighting against with low means, right? So we've been able to invest in more than 100 companies, we make 25k-100k checks. We started the accelerator last year to put it four cities, three cities across the country, one city in London. We started in London very particularly, because I saw so many African founders in London. And when you say start, we're going to start something in Africa. I mean, where do you start? It's it's a very large place. There's so many different cultures and so much to learn. I didn't want to go in acting like I knew everything. So I said, let me dip a toe and do what we can with what we have. And we've been able to really kind of tap into some really amazing founders in London and we will expand out of that. But the truth of the matter is, there are so many cities in the United States that have asked us to come and start there, that it would take my lifetime to go everywhere everybody wants me to go. I was walking through an event a year and a half ago in Helsinki, Finland, after speaking, and I was walking through, you know, through the crowd. And I was asked to open up a Backstage, in Paris, in Sweden, and in India within a 20 minute period. And very seriously, not just "Hey, I hope you come here." But like the people who could kind of try to make that happen. And I thought, "Man, I really, really wish we had more resources ourselves. And we can make that happen" . But what I understand is like it's going to happen in its right time. We're going to go and I think about it, and I dream about it all the time. COVID has definitely thrown us off. But hey, here's the upside to it. Now, even more so than ever. We're always accessible but even more so now. We're just reaching out can be, you can talk to the world, and, you know, affect people all over.

Acquania Escarne 10:06

Awesome. And I totally agree with you. In the right time it will happen. And there's just so much to do. So we can't expect you to do it all. So now let's talk about your book. It's About Damn Time. What an awesome title. I love it. It is definitely captivated my interest already. What motivated you to tell your story now? And who is this book for?

Arlan Hamilton 10:29

Well, what motivated me...I've been working on this book for a year and a half. So it's just so amazing to finally be at this place where it's, you know, people can get it. What motivated me is that I get hundreds of messages per day and I get thousands of messages per week. And the number one thing people ask me is, will you invest in me? And the second most popular question is will you mentor me? And because I can't mentor everyone and also because I was "mentored" by books and by people who didn't know me. I wanted there to be this place you could go to know my thoughts about things that recur these recurring questions about how long should my emails be? How do I meet an investor? How do I impress an investor? I wanted there to be a place that was accessible to so many people, either through the hardcover book or through the audio, which I recorded myself, and at a price point that a lot of people can reach it. And so that motivated me. For the for the person who should listen, there's there are a few. The ultimate person I think the ultimate reader is... I mean it, like, I hesitate to even say it because there's so many people who have read the book in advance and who are from so many different backgrounds, and I'm just blown away by like, their take on it. From like a 27 year old black woman who just left her corporate job to start her own company. Like that's my girl, right? That's the person, that is really the person that I'm reaching. But then I'll have, I just had an interview with a white man who seemed like he was in his late 20s, from Colorado, and he's straight and he works in real estate. Kind of like some of your your listeners and, and he got so much out of it just because he was like, "It was, it made me really amped to go out there and do do anything and to like it opened up my horizons and opened up my mind all of those" and I was just like, "That's incredible." I think people who are like 25 to 45, who are women of color, who either have their own company or want their own company, I think that's like your target target person. What I hear a lot is like people who are working a 9-5, and they don't necessarily know all the jargon, all the words, everything. They don't know what venture capital is, but they know that I'm out here, putting investment dollars behind black and brown founders and we're trying to change the entire landscape of venture capital in this finance world. And so I think the people who feel like that's a really good mission enjoy it. I've also seen a lot of white women who want who feel like you know, their time's up too, you know? Like they're upset with certain other white women who voted for Trump and like they just want to you know, they just want their their moment too. Like they woke white women wants their moment to and that's for sure. I'm married to one so...

Acquania Escarne 13:33

Love it. I love it. Woke white woman. Yes, everyone.So basically everyone needs to read.

Arlan Hamilton 13:38

Every single human being should read it, everyone. Yeah, I want to be honest with you. No, I think you. I think if you are for your 20 to 50, 25 to 45 and you have any inclination about starting a company, you have started, it's failed, you've done well, whatever. All of the entrepreneurs in the building are going to really love it.

Acquania Escarne 13:59

Awesome. I'll definitely be promoting it to my audience. Can you tell them where can they find it? I know it's available for pre-order now.

Arlan Hamilton 14:05

Yeah, so depends on when you hear this but so hopefully it'll be out by the time you hear but It'sAboutDamnTime.com. I really encourage and please don't let me stop you from being over 40 over 50 reading this book. My mom is 71 and she has sent me-she has highlighted half the book The advanced copy she cuz she said she was taking notes so I just really love that. I know she's my mom but she's also a student of life. And if you go to It'sAboutDamnTime.com, you can pick up the book, again, hardcover or audio. You can also check out my new online course How to Raise Capital for your Company. If you use the code "FromScratch," I'll give your listeners half off. That's the largest discount I can do and that's what I'm giving to you. So if you go to It'sAboutDamnTime.com, click on Arlan's Academy, use "FromScratch" as your code you get 50% off. You can just check it out, if you don't even don't want to do that. But yeah, everything's there, the book, my podcast, my online course, all of my history, all of my events. They're all there.

Acquania Escarne 15:15

Love it. Thank you so much for sharing that. So the name of the podcast is The Purpose of Money. So I always ask my guests this question before we depart. What is your purpose for money?

Arlan Hamilton 15:27

It's freedom. And it's not just freedom for me, but it's freedom for so many people who have been overlooked, oppressed, cast out, and underestimated.

Acquania Escarne 15:40

Thank you so much, guys. I really hope you check out Arlan Hamilton's book, it's coming out May 5. I'm definitely gonna make sure to promote it on all social media platforms. And in my show notes, I'll make sure to include her websites and the code she shared so you can get 50% off her course and learn How to Raise Capital for your own Ventures. I am so thankful for having you here today. I really appreciate you giving us some of your time to talk about your book and Backstage Capital. I really wish you the best and the most success. Thank you so much.

Arlan Hamilton 16:14

Thank you so much for having me. I really, really appreciate it.

Acquania Escarne 16:19

Hey guys, I hope you're enjoying the episode I just wanted to take a break to share with you one quick tip on how I am creating more free time in my life today. I am a busy mom, entrepreneur and a 9-5 employee. And I have to be honest, I used to use trips to the grocery store as an opportunity to relax and go up every aisle and take my time and sort of have "Mommy Me Time." But since I've taken on more responsibility and extracurricular activities, I just don't have the time to go grocery shopping anymore. So I've embraced Instacart which has helped me save hours of my life, get the grocery shopping done without me having to step into a store. Instacart delivers groceries from your nearby grocery stores right to your home and saves you hours on shopping. You literally can do everything online or even from your mobile phone. And most of the time, they can deliver the groceries within an hour. So you get the food that you need, save time, and you create more freedom for you to do other things, which is what I love. Check out Instacart for yourself. I have a code that allows you to earn $10 off and a free grocery delivery on your first purchase. My code is AESCARNE14C or check out the show notes where I have a special link now include the code there too, just for you. Hope you try it out and let me know what you think.

Hey guys, I hope you enjoy that episode with Arlen Hamilton. We had a really good conversation about her journey and her purpose for money. And I really hope you take heed to her advice that she wants you and all entrepreneurs to do right now. So remember I talked about a special giveaway. I am going to give away a book just for you. If you are a listener who leaves a review, and sends it to me to make sure I see it. So here's how it's gonna work. Go on Spotify or Apple Podcasts right now and leave a review for The Purpose of Money Podcast. Make sure to take a screenshot of your review and email it to info@thePurposeofMoney.com. I will randomly select a listener's review in the next two weeks and the winner will receive a free copy of Arlan Hamilton's new book, It's About Damn Time, which comes out May 5, 2020. So make sure to leave a review, take a screenshot, and don't forget to send me your screenshot via email at info@ThePurposeofMoney.com. I'll make sure to announce a winner no later than May 13. Hope to hear from you guys and appreciate your reviews in advance.

Thank you for listening to The Purpose of Money Podcast. For more resources and information, check out my website thePurposeofMoney.com. And while you're there, please sign up for our newsletter, so you'll have the latest information on new episodes and blog posts. Until next time, keep building generational wealth $1 at a time.

Transcribed by https://otter.ai