RBFN Podcast
Learn from the best alternative capital investors in the world. Revenue-based financing investor and thought leader, Keith Harrington, conducts in-depth interviews with other investors who are disrupting the capital markets by offering alternative capital solutions to the traditional VC equity fundraising path. Successful entrepreneurs are demanding more innovation from investors, and Keith’s goal is to bring these investors together to share what they’ve learned, why it’s important to them, and how they apply it to what they do. The Revenue-Based Financing Network Podcast aims to quickly expand this growing industry to support more entrepreneurs and build awareness around the revenue-based financing ecosystem. Learn more and join our community at www.rbfn.org.
RBFN Podcast
#14 - There Are No Evil Financial Tools (and Being a Misfit) with Jonathan Bragdon, CEO of Capacity Capital
On today's show, we're joined by Jonathan Bragdon, the CEO of Capacity Capital. With a remarkable track record, Jonathan has started eight companies, invested in over 30 businesses, and been featured in CNN, TechCrunch, BusinessWeek, and Inc.com. He's also a driving force in the Southeast startup community and has founded Capacity, a strategic advisory firm, as well as Capacity Capital, an innovative investment fund supporting over 80% women, minority, or veteran-led founders. In the episode, Jonathan shares his entrepreneurial journey and insights into empowering underestimated founders with a unique approach to funding and strategic advice. He talks about the flaws in most funding approaches that he’s noticed along the way, how Capacity’s structure is different from a typical investment, and tips for building and harnessing a helpful network.
Key Takeaways
[3:34] How Jonathan got intertwined with the British Parliament and the Prince of Denmark.
[4:52] What led him to Capacity Capital.
[9:16] VC is a numbers game.
[10:20] How the redeemable equity structure works.
[14:22] Getting entrepreneurs up to speed on Capacity’s structure.
[16:50] Jonathan’s fundamental belief that different companies need different financing options to grow.
[17:14] A flaw in most funding companies.
[19:10] Who Capacity’s structure works well for, and who it doesn’t.
[21:07] How Jonathan thinks about return targets by deal and portfolio.
[22:44] Jonathan’s fundraising journey to build eight companies.
[25:50] Advice for emerging managers.
[30:44] Raising capital from the Capital Access Lab.
[31:28] The lack of a supportive network in the finance space.
[32:49] Jonathan’s predictions for RBF and alternative capital in the future.
[36:38] Building growth tools.
[39:30] There are no evil financial tools
[39:53] Focusing on the founder and the tools they need.
[41:03] Advice for investors that are aspiring fund managers.
[43:04] Jonathan’s surprise at the lack of recommendations and introductions at the investor level.
[44:55] Innovative finance project with Blueprint Local and Metro Finance Lab.
Resources:
RBF Network
Keith’s Twitter