Your First Million - Arlan Hamilton & Rachel L. Nelson

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• The passage discusses the author’s experience being inspired by Janet Jackson’s concerts and ambition to create her own projects like a magazine. Seeing Janet perform made her want to be an entrepreneur and businesswoman like her.

• As an entrepreneur, the author has faced challenges like lack of access to opportunities due to her identity. She founded Backstage Capital to invest in underrepresented founders after realizing the venture capital world was dominated by white men.

• The author discusses living in difficult financial circumstances when starting Backstage Capital. She was determined to empower underestimated people through entrepreneurship despite facing obstacles.

• The book aims to guide readers in entrepreneurship and achieving their first million dollars or equivalent milestone. It teaches business strategies without promising quick wealth. The author wants to inspire more underestimated groups to achieve generational wealth.

• Entrepreneurship comes in many forms beyond just tech startups. Success means different things but the author wants to help level the playing field for more groups through investing, educating and amplifying others.

• The pandemic disproportionately impacted minority groups economically and from a public health perspective. Black-owned and minority-owned small businesses were hit especially hard due to the industries they operated in and other systemic inequalities.

• The economic downturn led to widespread job losses and business closures. It highlighted existing societal inequalities as minority groups faced greater challenges.

• The pandemic also drew attention to issues of racial injustice and violence against minority communities. It was a turbulent time that challenged many preconceptions.

• However, it also spurred increased entrepreneurship as people sought more autonomy and control. There was a boom in new business applications during this period.

• The author is optimistic about this wave of new businesses and entrepreneurs from underestimated communities. Their goal is to invest in these founders and help more overlooked people gain opportunities in the venture capital industry.

The passage talks about developing radical self-belief and combating impostor syndrome. Some key points:

• Radical self-belief means setting bold goals, believing you can achieve what others have achieved, and knowing your worth is not defined by what others say. It’s the opposite of impostor syndrome.

• The author developed strong self-belief from strong women role models who instilled pride in their identity. She knew from a young age she would achieve success despite challenges.

• Impostor syndrome is common but often unspoken due to feeling like more of an impostor for admitting it. It disproportionately affects underrepresented groups who lack role models.

• Successful people are often not that special - they had privilege, opportunities, or guidance others lacked. Nothing inherently makes them more deserving or capable. With the same advantages, others could achieve just as much.

• When society often sees underrepresented groups as impostors, it reflects back as internalized impostor syndrome. Overcoming this requires believing in oneself when others do not. Self-belief must be multiplied many times over to overcome naysayers.

The passage advocates developing radical self-belief to combat impostor syndrome and the limiting beliefs of others in order to achieve one’s potential.

The passage discusses where good business ideas come from and how change can happen from anywhere. The best ideas often come from a founder’s personal experiences. There is no better motivation than experiencing a problem firsthand.

The example is given of Linda Hanna-Sperber and Melissa Hanna, who founded Mahmee after Linda worked in maternal care. Linda expressed frustrations with the industry to her daughter Melissa. They saw mothers dying from preventable issues that technology and data sharing could have solved. The issue was personal to them.

Because they understood the problem from experience, they were motivated to create change. They developed Mahmee, a patient-centric care management platform, to address the issues Linda witnessed in her work. This shows how change can start from anywhere, including personal experiences, and how the most driven founders seek to solve problems they have witnessed firsthand. Personal experience is a strong source of motivation to create new solutions.

• Generational wealth is having money passed down from family that provides financial benefits like not starting adult life in debt, funding startups, etc. It gives a leg up that many people don’t have access to.

• Dr. Pamela Jolly advocates creating legacy wealth in black communities through business ownership and preserving wealth across generations. She believes this can transform communities.

• Dr. Jolly’s company, Torch Enterprises, aims to pass the “torch” of wealth from one generation to the next through ownership and equity. She wants communities to own businesses and employ their children.

• Dr. Jolly teaches that people with generational wealth do two things - they own things and they cooperate. This chapter focuses on ownership.

• The author relates their own experience receiving food stamps and unemployment assistance as an adult. They state there is no shame in using these programs as intended when in need, as people pay into them when employed.

The key ideas are around the importance of generational and legacy wealth through ownership, preserving wealth in communities, and removing stigma around temporary assistance programs for those who need them. Dr. Jolly’s teachings on ownership as a means of building wealth across generations are highlighted.

• The passage discusses wealth disparities between black and white communities in New Orleans after Hurricane Katrina. Black residents had only 3 generations to build wealth compared to 5 generations for white residents, making them more vulnerable when disaster struck.

• It notes how other marginalized groups like women and LGBTQ+ people also historically had less access and opportunity to build intergenerational wealth.

• It advocates investing money in companies where you spend money already, like owning Starbucks stock if you regularly buy coffee there. This allows you to benefit financially from your own purchasing patterns.

• You don’t need to be wealthy to start building generational wealth - you just need to reconsider who can be an investor and start investing small amounts regularly.

• Black people have long been creating wealth in America through their labor and culture, but shut out from owning that wealth. It’s time for black communities to claim ownership over the legacy of wealth they helped build.

For most of their adult life until age 34, the author did not earn more than $20,000 in a year and sometimes as little as $5,000, making it really hard to save any money. Having a strong financial foundation and multiple income streams is important for stability and safety, as shown by the COVID-19 pandemic which left many unemployed or with reduced income. One or two missed paychecks could plunge people into poverty if they lacked savings. The author emphasizes taking control of your financial situation by being intentional about creating multiple diverse income streams so you’re not solely reliant on any one source of income. This allows you a buffer if one income stream drops and provides more long-term financial security and independence.

• Owning your own business through building and selling companies can provide substantial wealth and power through control and influence over your work.

• Raising money for a startup requires giving up equity, so founders need to carefully consider investment terms and whether money raised is worth the ownership given up.

• Common funding sources include friends/family, angel investors, family offices, and venture capital. Friends/family carries personal risk. Angel investors provide small amounts for ownership stakes. Family offices offer large checks quickly but access is limited. Venture capital provides most money but demands high equity stakes.

• Underrepresented founders often lack access to initial funding sources that wealthier founders tap into like friends/family rounds. The goal should be increasing the number of successful underrepresented founders who can then invest in others. Overall ownership and control over one’s work and decisions is emphasized.

• Bootstrapping, or self-funding a business without outside investment, allows founders to retain more ownership and control over their company. They don’t have investors to answer to and can make decisions independently.

• However, taking venture capital comes with expectations to grow the business rapidly in order to generate returns for investors. Founders can lose control or equity if expectations aren’t met.

• Blended Designs successfully bootstrapped in the early days, allowing them to pivot quickly to masks during the pandemic without needing investor approval. This agility helped them capitalize on a new opportunity.

• They later took a small investment when scaling with Walmart required more funding. But bootstrapping allowed them to own most of the company.

• Bootstrapping involves reducing expenses, doing work yourself at first, leveraging online tools, and generating revenue from sales. It provides independence but growth may be slower than with outside funding.

So in summary, bootstrapping keeps founders in control but can be difficult for high-cost businesses, while outside funding enables faster growth but requires giving up some autonomy. Both have pros and cons depending on the situation.

• Bootstrapping or self-funding your company for as long as possible is preferable to giving up equity to investors early on. Consider reducing work hours to fund your startup instead of quitting your job.

• Pitch competitions and accelerators can provide seed funding of $20k-$125k in exchange for a small equity stake (2-10%). They offer mentorship and networking opportunities.

• Crowdfunding allows customers and fans to invest small amounts in exchange for rewards. Equity crowdfunding gives them a stake in the company. Both are good ways to test your market and raise funding.

• Venture capital provides large investments but also comes with strings attached like contracts and loss of equity/control. It’s best pursued when your company is strong and the capital can be utilized effectively.

• Alternative options include bank loans, grants, debt financing, and bootstrapping through skill swaps or revenue streams. Transparency in fundraising is recommended.

• The right funding approach depends on factors like costs, team size, revenue model, and valuation goals. Extensive research is key to determining the best fit for your particular startup needs and situation.

Here is a summary of the article “CEOs Share Insights on Purpose-Driven Companies” by Robert Reiss:

• The article features interviews with several CEOs about operating purpose-driven companies. Purpose-driven companies aim to have a positive impact on society and the environment in addition to earning profits.

• Many of the CEOs say their companies’ purpose helps with recruiting and retaining talent, as employees want to work for a company they believe in. Having a clear purpose also helps guide strategy and decision making.

• Some challenges mentioned include measuring societal impact, balancing purpose with profits, and ensuring the whole company lives the purpose at all levels. Authenticity is important - the purpose can’t just be for marketing.

• ESG (environmental, social and governance) initiatives are growing in importance to investors as well. Purpose-driven companies tend to be more resilient long-term by considering stakeholders beyond just shareholders.

• While having financial success as well, the CEOs see their role as leading companies that make the world better through their products, solutions or mission in addition to standard business metrics.

That covers the key insights from CEOs in the article about purpose-driven companies and some of the opportunities and challenges discussed. Let me know if you need any clarification or have additional questions.

• Don’t count on money from funding sources like investors until it’s actually in your company bank account. Never spend money you don’t have yet.

• Ardavan had a close to $5 million investment from Renault-Nissan-Mitsubishi Alliance that fell through at the last minute when Carlos Ghosn, who was supposed to sign the deal, was arrested.

• Even when deals seem certain, keep expectations low until the funds are received to avoid disappointment. Having thick skin is important to keep going when deals fall through.

• After setbacks like that one with Alliance, Ardavan learned not to put all her eggs in one basket with investors and to keep pursuing multiple funding sources.

• Disappointment is part of business, so the best way through is acceptance and focusing on finding solutions to keep the company going despite losses of anticipated funding.

The key message is to remain cautious, keep multiple options open, and avoid relying completely on any single prospective funding source until the money is actually secured in the company’s accounts. Managing expectations is important to withstand potential setbacks from deals that don’t come to fruition.

• Collaboration can be a great way to share success with others and help each other, but it’s important to choose collaborators carefully.

• Not all partnerships will be equal, so it’s important to be clear on each party’s expectations and goals from the start.

• In start-up culture, it can be tempting to take funding from any investor who offers money, but money isn’t everything - the philosophical alignment with an investor is important too.

• Early in her career starting Backstage Capital, Arlan Hamilton partnered with two European investors who she thought could help her gain access to the VC world. However, in their first phone call it became clear they did not respect her or view it as an equal partnership.

• This experience taught her the importance of choosing collaborators carefully based on philosophical alignment, respect, and an equal partnership rather than just money or connections alone. Careful selection of partners is key to a successful collaboration.

• The founder had the idea for Runner in 2017 but decided to fully focus on building Backstage Capital first to become the venture capitalist she was looking for.

• Runner aims to connect part-time and temporary operations/HR talent with inclusive companies. The founder had experience with gig work and wanted to make temporary work better for both employees and employers.

• When first starting Backstage Capital, the founder had to hire people on a temporary, part-time basis due to limited resources. She wanted to build a workplace where people felt part of the community even after moving on.

• Runner’s matchmaking process considers skills/experience but also focuses on aligning people’s core values with a company’s mission to promote better workers and longer retention.

• The founder believes if Runner existed earlier, it could have prevented her own homelessness by connecting her with reliable temporary work that suited her skills and values.

Your network is one of your most valuable assets. When you connect two people in your network, you are demonstrating the value you provide by making useful connections. It’s important to build a diverse network from different backgrounds and industries. You never know when your connections might be helpful to you or others in the future. If you want to get into certain rooms or events but can’t afford it, find creative ways to volunteer or get involved to make useful connections. Serial entrepreneurs like Dawn Dickson emphasize the importance of networking horizontally with people at similar stages, by consistently showing up, following up, supporting others, and building long-term mutually beneficial relationships over time. Your network takes decades to build and can serve as a valuable shield, providing opportunities when needed. Always be open to new connections and learning from a wide range of people.

• The COVID-19 pandemic fundamentally changed the nature of work for many people. It brought new challenges like remote work, increased caregiving responsibilities, health risks for frontline workers, and business closures.

• However, each person’s experience of work during the pandemic was contextual and circumstantial. A “one size fits all” approach to work no longer makes sense given these differences.

• Going forward, the author envisions a future where each person can curate a career that better fits with their individual life circumstances. This would give employees more power and control over how and where they work.

• There are signs employers are losing some control as well, such as the growth of unionization efforts at major companies and the “Great Resignation.” Retaining talent requires treating employees well with opportunities, benefits, and respecting their humanity.

• Overall, the pandemic disrupted traditional power structures and concepts of work. The author sees an opportunity to create a “better normal” that recognizes individuality, dignity, and the importance of employees to a business’ success.

• The passage discusses redefining what success means on an individual level and taking control of how you measure your own accomplishments.

• It argues against comparing yourself to others on social media and feeling envy or that you’re missing out (FOMO). True success is not about outward displays or amassing wealth and followers.

• Success should be measured by impact, change, and legacy rather than dollar figures or job titles. The author cites their podcast as an example of something they’re proud of that hasn’t hit conventional metrics of “success” but has meaning and value.

• Ditching FOMO is important so you don’t get distracted chasing what others have and instead focus on your own goals and potential. The author says they don’t envy or aspire to be other influential people but rather want to achieve their own potential.

• The overall message is about defining success on your own terms rather than by external comparisons or pressures, and focusing on qualities like meaningful impact instead of unrealistic status symbols or measures of “success”.

This passage discusses how true success in creating social change is measured not just by words, but more importantly by concrete actions and meaningful long-term commitments. Some key points:

• In 2020, after George Floyd’s murder, many companies spoke out about racial issues but actions didn’t fully back up words for some. Others made promises on diversity but it remains to be seen if fully followed through.

• The author was contacted by many seeking opinions on investing in Black founders. However, her view has long been that Black founders deserve investment based on merit, not as a PR stunt or checkbox.

• When racial issues came to the fore, some fund managers belatedly recognized they had not invested in a diverse range of founders. However, true change requires sustained actions over words.

• Even during heightened discussions in 2020, the author notes follow through is important. Real success in creating equity comes from long-term commitments through actions, not just temporary statements or short-term reactions to events.

So in summary, the passage advocates measuring real progress and success through concrete, ongoing actions rather than empty words, as sustained commitment is needed for meaningful social change. PR statements must be backed by long-term policy changes and equitable practices.

• The author discusses major venture capital firms like Andreessen Horowitz and Sequoia Capital that announced funds or initiatives to support Black founders in response to racial justice protests, but the amounts allocated were relatively small given the size of the firms.

• For example, Andreessen Horowitz announced a $2.2 million fund but manages tens of billions, so the fund was seen as an “insult” rather than a meaningful commitment.

• The author critiqued these firms for not doing more to improve diversity within their own organizations and ensure equal access to funding for Black founders through meaningful policy changes.

• The author believes true success is measured through meaningful actions, not just words. Their goal is to catalyze change by investing in underestimated founders to help redistribute wealth in a more equitable way and easier pathways to success for future generations.

• Their definition of success is focused on positive impact and influence through investing in companies helping people as well as mentoring and empowering underestimated founders to achieve their potential through access to resources and opportunities.

• The key message is that anyone can plant seeds to create positive change through their sphere of influence using the tools and resources they already have, even if they don’t have wealth themselves. Catalyzing others is what the author aims to do at scale.

• When you achieve success, don’t ignore those left behind. Always think of “we” and “us”, not just “I” and “me”.

• When invited to important tables or positions, make sure to bring others along too. Help knock down barriers so more can rise up with you.

• One example is Liz Fong-Jones, who invested in Backstage Capital and uses her success and knowledge to advocate for social causes, sit on nonprofit boards, and support impact-focused companies.

The overall message is that we should work to dismantle oppressive systems and create inclusive opportunities for others, not just seek individual gains. Success brings responsibility to empower those without the same access or privileges.

• Liz Hamilton met billionaire Mark Cuban at SXSW in 2019 when they were scheduled to interview each other. She expected him to have an entourage but found him arriving solo and easy to talk to.

• After an article criticized her efforts with Backstage Capital, Mark privately offered to invest $1 million without expectations. This major investment helped strengthen the fund.

• In 2020, amid the Black Lives Matter movement, Mark invested another $5 million, with $100k tranches available quarterly and high profit-sharing terms.

• Though they occasionally disagreed on deals, Mark empowered Liz to run investments her way. His involvement also opened doors to other investors like Serena Williams.

• Mark used his power, money and connections to significantly boost Backstage Capital and give Liz financial flexibility and credibility, showing how wealthy individuals can empower others through intentional, private support.

The passage discusses different ways the author catalyzes learning and representation, including through investing in scholarships, apprenticeships, and transparency. Some key points:

• The author started a scholarship for Black students at Oxford University to increase diversity and access. They have since given over $1 million in scholarships.

• They sponsored a Black woman studying to be a pilot, to promote representation in that field.

• They created a scholarship for a student who gave a viral valedictory speech about abortion rights.

• They launched a 4-month apprenticeship program at their company Backstage Capital, offering ownership stakes to participants.

• Building transparency into projects like their startup Runner allows others to learn from both successes and failures publicly.

The overall goal is to catalyze greater representation in startups/investing through direct support of underrepresented people, sharing opportunities for learning, and modeling openness about challenges and progress.

The passage discusses putting yourself and your work out there publicly in order to make an impact and inspire others. Though it can be nerve-wracking to share one’s work, even if only a few people see it initially, that small audience is still valuable. Consistently creating and sharing content means that new people will discover it every day.

Someone else struggling with similar challenges may come across one’s blog, video or podcast and feel seen or helped by it. One should not underestimate how much even a small spark from one’s work could positively impact and influence others. The goal is that one’s sharing and putting oneself out there could light a fire in someone else and change their outlook. If one can change even just one person’s perspective, that is still considered a win.