Summary
Welcome to episode 268 of the Startup Junkie’s Podcast!
Jeff Amerine, Davis McEntire, and Caleb Talley spend time with Jesse Randall, CEO and Founder of Sweater. This platform allows everyday investors to access the most exclusive asset class, Venture Capital. This episode will cover Jesse’s journey as a tried-and-true entrepreneur. Sweater aims to disrupt the way venture capital is done.
In other words, you’ll want to tune in!
Shownotes
(1:36) Introducing Jesse Randall
(3:52) How is Sweater different?
(6:41) Sweater’s Venture Capital Structure
(8:28) Stage Focus within Sweater
(9:27) Syndicating, Leading, or Following?
(13:00) Identifying Strategic Partners
(17:31) How did Sweater Come About?
(22:13) Being a Public Investment Company
(28:54) The Next 5 Years for Sweater
(31:44) Day To Day Challenges
(34:24)Advice to Younger Self
(36:33) Wrap Up
Links
Quotes
“People have this desire to be entertained and they want something to brag about on the weekends, and have something to talk about with their friends, and being an investor is an element of their personal brand and a little bit of status associated with it.”
(3:34) Jesse Randall
“They are great businesses and I’m grateful that they have the opportunity to raise money… They just typically don’t qualify to raise money for VC funds.”
(5:36) – Jesse Randall
“[On advice to younger self] I would say, freaking learn how to sell. Number one rule, learn how to sell something.”
(34:46) – Jesse Randall
Dismantling the Exclusiveness of VC with Jesse Randall of Sweater
Did someone say dismantling? We have an incredible episode chatting with the CEO and Founder of the forest VC fund for everyday investors. Jesse Randall joins our hosts, Jeff Amerine, Davis McEntire, and Caleb Talley, on this podcast. Jesse’s platform, Sweater, disrupts the way Venture Capital has always been done by giving everyday investors access to the most exclusive asset class.
While living in Phoenix, Arizona, Jesse found himself waiting for a better, more equipped fund for investment but realized there was little to no institutional capital out there. He then realized he should be the one to create it. When realizing his lack of being an accredited investor took the ability of writing a check to his own fund, he was angered and confused. It was mind-boggling that he could operate and make decisions for the fund yet not write a check.
Sweater is a mobile application that creates an avenue to invest in a venture capital fund. Similar to Robin Hood but not with companies. It’s the bridge to private venture-backed companies. This was typically only available for accredited investors, which makes it an extremely exclusive ecosystem.
“About 95% of the U.S. is not accredited, which means none of us can get into venture backed companies.”
(2:15) – Jesse Randall
Typically you would need $200-300K a year or more and have a million dollars in liquid assets outside the value of your home. Sweater comes in and allows a 10-minute sign-up for $500. Another considerable difference Sweater offers is that you are investing in a venture fund that is already fully managed.
After they are given your investment, Sweater’s role is doing the due diligence required to find those great companies. As experts of the market their companies are operating in, they can be with these investors on the entire journey to influence the most desired outcomes.
Without having experts on the inside, investors can often run into challenges that involve losing an exponential amount of money. Rather than having to diversify risk with over 30 investments, you can have an expert help you identify which opportunities are good and which are not.
In the regulatory world, Sweater is held to a high standard. This looks like an annual auditing standard that looks at every dollar, ensuring that the companies invested bring money back around. Identifying strategic partners all comes down to Sweater distributing correctly and knowing that when exits happen that are held to high standards. They also have outside auditors and fund administrative partners as well making the process both complex and trustworthy.
Sweater is breaking down the barriers of accredited investing in getting money off the sidelines and into precious projects. Jesse Randall and his team are fighting the good fight, and we are excited to see where they go!
“I was so obsessed with building a product and ideating and talking to people, but I’d never sell. And if I could go back and just teach myself how to do that [sell], my life would be very different.”
(35:20) – Jesse Randall
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