Clock Speed with Shamus Madan The VC Firm Breaking The Barrier To Entry In Venture Capital w/ Jesse Randall (CEO)
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
(0:00) Introduction with guest Jesse Randall (1:32) Challenges and limitations of traditional venture capital funds (2:55) Introduction to Sweater and its unique investment process (9:02) Sweater's educational content and strategy to attract new investors (10:33) Difficulties accredited investors face with venture capital (11:27) Importance of marketing in the investment world (14:04) Trust and transparency in private market investing (19:47) Valuation methods and liquidity in private markets (22:41) Impact of equity crowdfunding on venture capital (26:30) Sweater's mission and approach to investment (28:34) Conclusion and mention of the upcoming episode