November 7, 2023
How To Accelerate Alternative Capital’s Impact
Happy Tuesday, friends! Based on my September 26 newsletter regarding the Kauffman Fellows Summit in Nairobi, a reader suggested that perhaps a Kauffman Fellows-like program for alternative capital would be a good idea. I actually suggested that idea to the Kauffman Foundation, the founders of the Kauffman Fellows program (which spun out and is now self-sustaining) a couple of years ago. They were interested, but we didn’t get very far in the conversation, as other priorities emerged. I’d like to return to that concept and share a couple thoughts about why it could be game-changing for our industry.
As a refresher, here’s what Kauffman Fellows is all about: a highly selective two-year program and global network where the biggest players in VC gather. For me personally, it was a transformative and crucial experience — one of those things that creates a new trajectory in life. I loved it, and I evangelize the program to anyone who has an interest in joining.
It’s totally focused on enhancing the impact and success of players in the VC ecosystem, and it is a network of 800+ people around the world today. Imagine if we had a program like that for us alternative capital misfits out there — something that meets a capital entrepreneur where she is and accelerates her to a new scale. Incredible.
Now, there are some things out there that get close. Catalyze is helping on this front, making connections in our industry. Kauffman Foundation does this as well with the Capital Innovation Summit. And of course, we at RBFN connect with, share ideas with and advise alternative capital investors all the time. But there’s a hole that could be filled here by something structured, programmatic, outcomes-driven, and not ad-hoc.
Imagine a 1 or 2-year program that selects 10 capital entrepreneurs every year and uses structured curriculum, hands-on work, and collaboration to teach how to:
Refine and improve an investment thesis, creating true differentiation and value.
Design financial products to solve the needs identified in the investment thesis.
Build a funding business that lasts.
Raise capital for operations and for deployments.
Support entrepreneurs by creating real value for them — value that accrues to them.
Amplify a message of differentiation and generate deal flow.
Structure and win deals.
Build a portfolio that attracts investors.
Be a net-positive actor in the ecosystem and avoid being extractive or a net-subtractor.
Build an ecosystem of talent, capital, and awareness that drives success.
In my mind, this program would be an incredible way to build out our ecosystem faster. It would move knowledge faster, and accelerate learning for everyone. Imagine a room with a bunch of smart, early alternative capital investors taking in structured content and learning from the likes of Tyler Tringas (listen to our latest episode with Tyler here), Jonathan Bragdon, Jamie Finney, BJ Lackland, Bryce Roberts, and others.
Having experienced the Kauffman Fellows program, and having sat in a room and learned directly from people like Naval Ravikant, David Hornik, Mike Maples, Chris Douvos, Pascal Levensohn, Clint Korver, Bryan Roberts, and so many more, I can attest to the power of a setting where you can ask your burning questions to people who faced them before, and learn from their mistakes and wins.
Am I cheating a little, suggesting a program designed very much like the Kauffman Fellows? Yes, I suppose I am. Does it make sense to start from scratch? Maybe, but I think the Fellows program is a great jumping off point.
One thing that I think would be important is this: Successful entrants would have to have investing or entrepreneurship experience, and would already be on the road to building their franchise. It would be important that participants have some traction so that they can actually be accelerated. This would not be a program for capital entrepreneurs who do not yet have funding.
I’m curious about your thoughts. How would you change the program I sketched out above? What would you add or subtract? How would you change the admission requirements?