Latest / #TheTechHustle Podcast 🎙 / Backstage with BobbyD featuring Brian Brackeen

Transcript

Backstage with BobbyD featuring Brian Brackeen · #TheTechHustle Podcast 🎙

• 0:00
  Speaker 1: Every single year, creativity becomes the only currency, ChatGPT.
• 0:06
  Speaker 1: It can code for you.
• 0:06
  Speaker 1: Right, we can build websites in days.
• 0:09
  Speaker 1: Now All the technical and expensive things are all taken care of Amazon Web Services everything it's.
• 0:16
  Speaker 1: All that's left is the creativity.
• 0:18
  Speaker 2: Yeah, welcome, welcome, welcome.
• 0:31
  Speaker 2: What up d hustle?
• 0:33
  Speaker 2: What's going on?
• 0:34
  Speaker 2: Oh man, guess where we still at player.
• 0:35
  Speaker 2: I hope it's still miami, yo, we still down south bro, let's make it short we are at the black wealth summit at florida memorial university.
• 0:43
  Speaker 2: I don't know if you know this, but this is the only black hbcu in south florida yeah, yeah well, I found that out today yeah, I keep reminding you right, but we got a special guest.
• 0:54
  Speaker 2: We're here with backstage bobby d um, and y'all know that we have the speakers on stage and then we're bringing them backstage for us to really get some more ideas or insights into the conversation they had.
• 1:03
  Speaker 2: If you missed it, guess what?
• 1:04
  Speaker 2: We got a big one for you.
• 1:06
  Speaker 2: Uh, because this one he writes checks oh, I like that.
• 1:11
  Speaker 1: I like people who write checks uh, so we want to invite uh brian brackine to the stage so, first of all, thank you so much for pulling up and, uh, give us a quick introduction yourself.
• 1:20
  Speaker 1: That gets a cool voice.
• 1:21
  Speaker 1: I hear it myself sometimes.
• 1:22
  Speaker 2: He didn't get the wah, wah, wah for today, but I like it.
• 1:24
  Speaker 1: I like it.
• 1:25
  Speaker 2: So first of all, thank you so much for pulling up and give us a quick introduction yourself.
• 1:29
  Speaker 1: Thank you for having me first of all.
• 1:30
  Speaker 1: Brian Breckin, I'm the managing partner of Lightship Capital.
• 1:33
  Speaker 1: Thank you for the love.
• 1:35
  Speaker 2: Yeah, yeah.
• 1:36
  Speaker 1: We are a venture fund that has about a billion dollars under management.
• 1:40
  Speaker 1: We invest in startups.
• 1:45
  Speaker 1: We invest in funds, always people that are underserved.
• 1:47
  Speaker 1: So communities, geographies, black, brown people, lgbtq, you name it.
• 1:49
  Speaker 1: Yeah, don't have this a fair chance that's what's up.
• 1:52
  Speaker 2: That's beautiful.
• 1:52
  Speaker 2: Yeah, that's what I said.
• 1:53
  Speaker 2: You're writing checks, right I like it, again I like it, but I do want to make sure I just bring this to light in terms of just the value your uh organization, your fund, brings to our community, because I don't see enough people that look like me being managing partners over a fund.
• 2:08
  Speaker 2: So big round of applause for him and I believe you have your partners, your wife.
• 2:12
  Speaker 1: Yes, yes, there's actually six partners at the firm.
• 2:15
  Speaker 2: Yes, congratulations, well shout out to the wife and then the other five.
• 2:19
  Speaker 1: Only married to one of the five.
• 2:21
  Speaker 2: That's what's up.
• 2:22
  Speaker 2: That's what's up.
• 2:22
  Speaker 2: So our conversation today, like I said, we're going to continue from what you were mentioning on stage, and one of the things that I just want to just enlighten the audience around is, like what is the normal process to engage with VCs and kind of get that conversation going?
• 2:37
  Speaker 1: This is a very different answer than you're going to hear.
• 2:39
  Speaker 1: Many times we're taught that you have to kind of like meet them.
• 2:41
  Speaker 1: Meet them in a bar, almost kind of corner somebody, force them into a conversation, force them into a relationship and hopefully, months from then you might get a check.
• 2:51
  Speaker 1: In my experience, that's never how it works.
• 2:55
  Speaker 2: Yeah, right.
• 2:56
  Speaker 1: The way to get money from a venture capitalist is to stay home to work on the business crush it revenue, revenue, revenue, work on the business, crush it revenue, revenue, revenue.
• 3:04
  Speaker 1: And then let me discover you and say, can I?
• 3:12
  Speaker 1: Have a piece of this thing that you've built, as opposed to offering me a piece of something that nobody wants.
• 3:15
  Speaker 2: Yeah, yeah, I mean, I think that's powerful because for me, the work itself shows your commitment, shows the passion that you put in it, because it's not the invention, right, it's also like the personality.
• 3:28
  Speaker 2: The people Tell me how that's important also.
• 3:31
  Speaker 1: Well, let's liken it to football.
• 3:33
  Speaker 1: I'm an Eagles fan, so I'm all football right now Don't do it.
• 3:37
  Speaker 1: Don't do it, Go birds.
• 3:40
  Speaker 2: All right, let me give you a round of applause.
• 3:41
  Speaker 2: You're welcome.
• 3:42
  Speaker 2: You're welcome, are you a round?
• 3:43
  Speaker 1: of applause.
• 3:43
  Speaker 1: You're welcome.
• 3:44
  Speaker 1: You're a Cowboys fan, buddy, no A Giants fan.
• 3:50
  Speaker 1: There, you're welcome.
• 3:50
  Speaker 1: Oh, thank you for saying that.
• 3:52
  Speaker 2: You see, everybody that said you're welcome today, know exactly what happens.
• 3:56
  Speaker 1: For the folks listening at home.
• 3:57
  Speaker 1: He's slamming on a very expensive piece of equipment Because he's so mad about St Claude.
• 4:02
  Speaker 2: I'm happy he got a chip.
• 4:03
  Speaker 2: He's well deserved Congratulations.
• 4:05
  Speaker 1: Thank you, brother.
• 4:05
  Speaker 1: I'm so mad about St Claude.
• 4:05
  Speaker 1: Yeah, yeah, I'm happy he got a chip.
• 4:06
  Speaker 1: He's well-deserved.
• 4:06
  Speaker 1: He's well-deserved for sure.
• 4:07
  Speaker 1: Congratulations.
• 4:07
  Speaker 1: Thank you, brother.
• 4:07
  Speaker 1: Thank you.
• 4:08
  Speaker 1: So we were to take a football analogy.
• 4:10
  Speaker 1: You don't get a spot on the team by being friends with the coach and you're not talented.
• 4:16
  Speaker 1: Right, you've got to work on your craft, you've got to hone your skill, you've got to try out.
• 4:21
  Speaker 2: Right, you've got to make combines and stuff like that.
• 4:24
  Speaker 1: Exactly, gotcha.
• 4:25
  Speaker 1: So why do we think that it's any different in venture capital?
• 4:28
  Speaker 1: It's not about relationship with it, with the venture capitalists, it's about the work.
• 4:31
  Speaker 2: Yeah, yeah, yeah for sure.
• 4:32
  Speaker 2: And then I really appreciate you bringing that to light for our audience, because I think sometime there's just this first of all barrier that's in front misconception of what we need.
• 4:40
  Speaker 2: But when it comes from someone that writes check and they tell you to put the work in, you gotta put the work in because the other challenge that we have, unfortunately, in our community is access, right.
• 4:52
  Speaker 2: So so tell us about that, that part of the journey that that you know is challenging for black and innovators and entrepreneurs and now this is where relationships actually do matter.
• 5:02
  Speaker 1: So, with the challenge with women minority companies is that you may have put the work in, you may have done the time, you might have something investable right, but the white male venture capitalist isn't either going to find you or, if you do, if he does find you, they're not going to invest Right.
• 5:18
  Speaker 1: Yeah, this is a challenge.
• 5:20
  Speaker 2: About 98.9% of all investable assets in this country are managed by white men, and so I didn't want to do it, I got it, I got it, I got it, I got it, I got it.
• 5:36
  Speaker 2: I got you D, I got it, I got it.
• 5:37
  Speaker 2: That 2% I trust.
• 5:40
  Speaker 1: But we're in a strong 2% and we're growing, yeah, which is important.
• 5:44
  Speaker 1: And actually I think this is the right time.
• 5:47
  Speaker 1: Right, because the cost of creating A world class business has gone down so much.
• 5:52
  Speaker 1: Ai is growing so much.
• 5:54
  Speaker 2: And.
• 5:54
  Speaker 1: If you got ChatGPT and a dream, you can build something.
• 5:58
  Speaker 2: That's what's up.
• 5:58
  Speaker 2: That's a gem right there.
• 5:59
  Speaker 2: If you got ChatGPT and a dream, you can build something, yeah for sure.
• 6:04
  Speaker 2: And I think the thing that you're bringing to light is definitely the challenge that we're up against, because our culture, by nature is is innovative.
• 6:16
  Speaker 2: Right, we had to innovate to get through those tough times.
• 6:18
  Speaker 2: Right, it's like yo, I don't want to carry that.
• 6:19
  Speaker 2: I'm like what is the?
• 6:19
  Speaker 2: The donkey and horses there?
• 6:20
  Speaker 2: Let's build something that care, like we.
• 6:21
  Speaker 2: We are, by nature, already always thinking about being innovative and I'm I'm hoping that hearing that mindset that you're helping develop uh, gives them inspiration for them to actually pursue that every single year, creativity becomes the only currency right because in this world again, chat chibi t, it can code for you.
• 6:42
  Speaker 1: Right, we can build websites in days now.
• 6:44
  Speaker 1: Right, it's, all the technical and expensive things are all taken care of.
• 6:48
  Speaker 1: Right, amazon web services everything it's.
• 6:51
  Speaker 1: All that's left is the creativity, yeah, and, and that's what we have?
• 6:54
  Speaker 2: Yeah, for sure, for sure, and thank you so much for enlightening us on that ability to create.
• 6:59
  Speaker 2: Now, in terms of some of the challenges that we face, so let's say that we are that 2%, we get through and we get that venture capital.
• 7:08
  Speaker 2: What challenges do we face in terms of just moving past that seed round and eventually getting to that golden IPO type, because I feel like that 98% is going to come after 2%.
• 7:19
  Speaker 1: Yeah, one of the biggest something I spend a lot of time on is scarcity mindset.
• 7:25
  Speaker 1: Almost 100% of the time, after I write a check a year later, I'm going to sit that person down and say you haven't spent enough, not growing fast enough, what's wrong?
• 7:37
  Speaker 1: Why are you scared?
• 7:38
  Speaker 1: And they always say, look, before I met you, I didn't even know what a venture capitalist was, I didn't even have any access to quick capital and I don't know that anyone's come behind you, and so this might be the last $2 million or $5 million that I ever see.
• 7:53
  Speaker 1: So they hold on to it.
• 7:54
  Speaker 1: But holding on to it.
• 7:56
  Speaker 1: The business doesn't grow because you're not hiring people, you're not buying more product, You're not marketing or advertising.
• 8:02
  Speaker 1: So our people, we suffer from scarcity of mindset.
• 8:05
  Speaker 2: Yeah, yeah, and I like that that is coming.
• 8:08
  Speaker 2: Oh, I'm sorry, Say it again for our listeners, for our young listeners that are not understanding.
• 8:13
  Speaker 1: For the young listeners.
• 8:14
  Speaker 1: Our people suffer From scarcity of mindset.
• 8:16
  Speaker 1: There it goes right there, yeah.
• 8:18
  Speaker 2: And I'll say this it's like being afraid to go outside Guess what?
• 8:22
  Speaker 2: You'll never be outside, right.
• 8:24
  Speaker 2: And it's like You're sitting by the window and seeing other people and saying, oh, you've experienced it Because you saw other people.
• 8:30
  Speaker 1: It's going to limit.
• 8:31
  Speaker 1: Ladies and gentlemen, it is great outside.
• 8:32
  Speaker 2: It's great outside.
• 8:34
  Speaker 1: Right.
• 8:37
  Speaker 2: Yeah, and I'm so excited to hear someone with your background, with your VC funds, being able to talk about this and letting people know that's what they're looking for in terms of innovation.
• 8:48
  Speaker 2: So, in terms of new ideas that you definitely feel like we should be heading into directory, more innovative on more creating what would you say that that is?
• 9:01
  Speaker 1: We're not doing enough in our own spaces.
• 9:03
  Speaker 1: I'm going to just give you an example.
• 9:05
  Speaker 1: So about five years ago and General Motors invested in a company that was like a digital jitney service.
• 9:17
  Speaker 1: So here in South Florida we have these jitneys Very common $2, $2.50 rides.
• 9:23
  Speaker 1: It keeps going up.
• 9:24
  Speaker 1: It used to be a dollar ride.
• 9:25
  Speaker 2: But you know the good old days, good old days exactly.
• 9:27
  Speaker 1: And they run, you know, up and down North Miami Avenue and they go through our communities to get you downtown, right.
• 9:33
  Speaker 1: Essentially, you just kind of stand in certain spots with your hands certain ways and they just, they know, yeah, they know who you are.
• 9:44
  Speaker 1: Yeah, you get picked up.
• 9:45
  Speaker 1: That's it.
• 9:45
  Speaker 1: Some, you know white men from silicon valley learned about that and created a version of that with an app and they got bought for like 200 million dollars from general motors.
• 9:55
  Speaker 1: They gave them all these new vans and everything and they ran that thing into the ground, right, when the company here in miami has been doing that for decades.
• 10:07
  Speaker 1: Right, instead of finding these kids that don't know anything about a business, yeah, let's find the company and the family yeah, that's already in that business and give them the 200 million facts, right, so that's what.
• 10:18
  Speaker 1: That's what we do and the family that's already in that business, and give them the $200 million Facts, right so that's what we do in this space.
• 10:21
  Speaker 2: Yeah.
• 10:21
  Speaker 2: So I mean, it's almost like already knowing that there are going to be those 98% pitching ideas potentially, but those 2% opportunities are going to be those that are actually doing the work and actually have done it.
• 10:36
  Speaker 2: Why aren't we investing in those communities and those businesses and that's what your firm really does hone in on.
• 10:41
  Speaker 1: In fact, that's what all of us are really doing.
• 10:43
  Speaker 1: I'm going to give you a story from Procter Gamble.
• 10:45
  Speaker 1: They're one of our investors in their wonderful group.
• 10:47
  Speaker 1: Almost all growth is from multicultural at Procter Gamble.
• 10:52
  Speaker 1: They've already sell tied to every white family in every neighborhood in all of america.
• 10:58
  Speaker 1: Yeah, there's no more growth there.
• 11:00
  Speaker 1: All their growth as a company comes from diverse communities, so that's where the money's got to go yeah, 100.
• 11:08
  Speaker 2: And then I mean statistic wise, eventually they're going to be the minority, we're going to be the majority and we probably already there.
• 11:13
  Speaker 2: They're just not keeping track of the numbers like that, right?
• 11:15
  Speaker 2: So, um, in terms, of your firm and where you all are based out of.
• 11:21
  Speaker 2: Uh, you mostly work here in south florida or nationwide, or how do people get in contact with you three key offices.
• 11:27
  Speaker 1: We're headquartered in cincinnati, ohio, and that's why procter and gamble and kroger and others are investors of ours.
• 11:32
  Speaker 1: They're all based there yeah um, we also have an office in washington dcC and office here in Miami.
• 11:37
  Speaker 2: Yeah, yeah, that's what's up.
• 11:38
  Speaker 2: That's what's up.
• 11:39
  Speaker 2: So one thing that I did see you gave an opportunity for which I always find amazing when I'm ever at a conference or an event and the speaker says are there any questions?
• 11:48
  Speaker 2: And they start bringing the mic around is that you gave a chance to give you know audience members to pitch you some ideas.
• 12:03
  Speaker 1: So?
• 12:04
  Speaker 1: So what did you think about some of the pitches?
• 12:05
  Speaker 1: Good pitches, good pitches.
• 12:05
  Speaker 1: We had a little scarcity mindset out there, right?
• 12:06
  Speaker 1: I found myself asking them to ask for more, right?
• 12:07
  Speaker 1: Um, particularly and I mentioned this on stage black women are so inclined to take a smaller amount and make it work right, because that's what they do, yeah, all throughout their lives, right, every day.
• 12:17
  Speaker 1: It's a, it's a super skill.
• 12:18
  Speaker 1: But in this game, if you ask for too little, the answer is always no Interesting Right?
• 12:24
  Speaker 1: In the Venture Capital game, asking for more means you must really have something.
• 12:29
  Speaker 1: Ooh, that's what's up.
• 12:31
  Speaker 1: So I want people asking for more.
• 12:33
  Speaker 1: We talked through that today in our session.
• 12:35
  Speaker 2: Yeah, yeah, and listen, if you didn't catch it.
• 12:38
  Speaker 2: First of all, this is a free summit.
• 12:39
  Speaker 2: I don't know how you did not come here.
• 12:41
  Speaker 2: Second of all, do you see who we have here in the seat?
• 12:44
  Speaker 2: What knowledge he's given Access that he gave People that were attending were pitching to a VC capital, Like.
• 12:50
  Speaker 2: That's why we have to continue to support our community and do events like this.
• 12:54
  Speaker 2: And, yeah, in general, what would be one of the last advice that you would give to someone that unfortunately did not attend the event?
• 13:02
  Speaker 2: You, you, you but definitely want to make that move into the realm of, you know, venture capital and being an innovator or entrepreneur.
• 13:09
  Speaker 1: Sorry, I talked about pouring into yourself.
• 13:13
  Speaker 1: There's only so many Google searches, there's only so many YouTube universities, right?
• 13:19
  Speaker 1: Yeah, sometimes you got to meet people and be inspired by what's in front of you.
• 13:24
  Speaker 1: It happens at Blackwell Summit, right?
• 13:26
  Speaker 1: It happens at Black Tech Week.
• 13:28
  Speaker 1: Yeah, it happens at Afrotech.
• 13:29
  Speaker 1: Even if you're not in those industries, I find that people should still go to these kind of conferences because, particularly with tech, we're always thinking big and globally, and it'll expand your mind and your brand to areas that you hadn't considered, roger that, so definitely just get out here, attend.
• 13:48
  Speaker 2: Outside.
• 13:49
  Speaker 2: What did you say?
• 13:50
  Speaker 1: It's great outside, I feel good.
• 13:52
  Speaker 2: I don't even know my baby swan right now.
• 13:54
  Speaker 2: I'm trying to figure out where we may end up Come outside.
• 13:57
  Speaker 2: Oh for sure, for sure well, I want to say thank you so much for hanging out with us backstage with bobby d um and definitely want to queue up the music d uh, definitely uh.
• 14:06
  Speaker 2: Give our audience an opportunity to hear these messages come from people that look like me and you for sure, and that that voice, that that thing that's holding you back.
• 14:15
  Speaker 2: Push it back, because it's great outside.
• 14:18
  Speaker 2: And we need your skill sets, and the innovation train is not stopping.
• 14:22
  Speaker 2: Why not be a part of it and definitely looking forward to all the contributions and you can be writing checks, just like him we will see you outside.
• 14:31
  Speaker 1: Any last words before we drop off.
• 14:33
  Speaker 1: You can find me at Brian Bradke on Twitter.
• 14:36
  Speaker 1: I still call it that.
• 14:38
  Speaker 1: And you can find me at Brian Bradke on Twitter.
• 14:40
  Speaker 1: I still call it that.
• 14:41
  Speaker 1: Yeah, and you can find me at Black Tech Week.
• 14:43
  Speaker 1: That's what's up this July and into tonight.
• 14:45
  Speaker 1: Oh, that's what's up.
• 14:46
  Speaker 1: Oh yeah, Black Tech Week.
• 14:46
  Speaker 2: See you there, yo, I need a plug.
• 14:47
  Speaker 2: You got a media thing.
• 14:49
  Speaker 1: You got a whole thing.
• 14:50
  Speaker 1: Yeah, I need a plug.
• 14:51
  Speaker 1: I'm trying to speak on stage.
• 14:52
  Speaker 1: I'm trying to.
• 14:53
  Speaker 1: I don't even cut tape yet You're already here.
• 14:56
  Speaker 2: Well, I want to say thank y'all so much for pulling up the backstage with Bobby D.
• 14:59
  Speaker 2: It's always a pleasure to be in the presence of black people that are doing excellent things.
• 15:03
  Speaker 2: Follow along Description below All the links.
• 15:06
  Speaker 2: You got a book.
• 15:07
  Speaker 2: No book yet.
• 15:08
  Speaker 2: No book yet.
• 15:09
  Speaker 1: I'm waiting, I'm waiting, I'm waiting.
• 15:11
  Speaker 1: Too much pressure, right.
• 15:13
  Speaker 2: Soon comes.