Written by Nathan Beckord
Most founders don't talk about mental health issues. … [+]
Starting a company is notoriously difficult. (If you're reading this post, you probably already know this.) Startup life can be tough, and even if only a small percentage of founders succeed, we keep going. Because we might change the world. . . First of all, I have to burn out.
Howie Diamond, managing director and general partner at early-stage venture capital firm Pure Ventures, knows this firsthand. “I think for a long time Silicon Valley has glorified and glorified how boring the founder journey is,” he says.
Howie became passionate about supporting the well-being of the founders he invests in. That's why Pure Ventures offers access to a platform called Pilea (pronounced Pilea). Piry Woo) as a key benefit for founders. It is no exaggeration to say that Pilea is the company's secret sauce.
In this article, Howie talks about why self-care is essential, how he built two funds from the ground up, and his favorite conversation points when discussing with potential fund partners.
Redefining “technology” support”
Howie says those of us in the technology industry have “overlooked the obvious fact that founders are struggling.” Most founders don't talk about their struggles because they feel like they have to look like they're in control and can't show any signs of weakness.
Pure Ventures, the second fund he co-founded and manages, is “based on the idea that behind every great company lies great people, and that people are the foundation of great businesses.” he says. “For some reason, in Silicon Valley and other places, we've forgotten that. There are a lot of platforms out there to help companies grow. people Behind the company's growth lies across different areas of emotional, mental and physical health. ”
Pure Ventures uses Pilea to connect its startup founders with wellness and personal development services such as executive coaching, sleep support, peer groups, team coaching, therapy, nutritionists, and culture building.
“All founders want these services, but we invest in pre-Series A companies and can't justify the cost,” Howie said.
Pilea's vetted network specializes in executive coaching, mental and emotional coaching, organizational coaching, and consulting, taking a holistic approach that covers your entire personal history and life outside of work. As part of this holistic approach, the company may bring in outside experts in the areas of nutrition, integrative medicine, sleep support, physical training, and even home organization.
How a distress call led to a mental health-focused startup
Howie started his career in music management, training at talent agency CAA, leading his own band Low vs Diamond, signing with Epic Records, and even guesting on late-night TV.
He pivoted to tech startups in the early 2010s, working in marketing and business development until launching his first venture capital fund, Ranch Ventures, in 2015. He started small, and from about 12 of his LPs he only collected $2 million. But Howie says it took him at least 100 meetings to find them.
Please understand it well. Out of 100 meetings, at least 88 resulted in a “no.” This is his first piece of advice from Howie. “Keep doing it and be happy with it.” It paid off, and Ranch Ventures has funded (and continues to fund) companies like Imperfect Foods, Albert, and Quip.
Even though $2 million is “obviously nothing in the grand scheme of things and in the venture asset class,” a lot That's a lot of money for a new VC. And it started to weigh heavily on Howie.
“I was working overtime because I had people who believed in me and I had to get results for them,” Howie recalled. “I was flying to Europe for a portfolio company to help negotiate distribution agreements. I've been working harder than ever to really outperform this fund.”
One day, on a flight back from Paris, Howie reached a breaking point. Just before his takeoff, one of his anchor investors pulled out. “I had already started investing and had already paid my legal fees,” Howie explains. “It was a big blow that I wasn't prepared for…and I had a mild panic attack while on the plane.”
Howie, who had never experienced such severe anxiety before, explains: I had no idea what to do or who to turn to. ”
The only person he could think of was Brad Feld, the iconic investor and Techstars co-founder who wrote about his own mental health struggles. Mr. Howie cold-mailed Mr. Feld, “Long live Mary,'' asking for help.
In an act that redefines what an “angel investor” is, Feld responded to Howie's plea within 24 hours and joined him and Jerry Colonna, co-founder of Pirea and similar coaching platform Reboot.io. tied together. Colonna then introduced Howie to a coach in the Bay Area who offered discounted rates.
“I still have a deep sense of gratitude for him,” Howie says of Feld.
Howie got the help he needed, but his crisis revealed a real need in the market. He realized that mental health services were unavailable and unaffordable for many founders. “If I'm having a hard time, all of my founders are having a harder time,” Howie says.
That was the origin of Pilea.
For startup founders, “me time” is money.
When Howie started Ranch Ventures, there was more stigma surrounding mental health care, but he knew startup founders needed support to do their best work. Ta. A few years later, Howie teamed up with fellow VC Jake Chapman to form a new company, Alpha Bridge Ventures, with the idea that “healthy founders equal healthy returns.”
Pilea began as 'Atlas', Alpha Bridge's internal support services platform. Psychologist Kari Surenes has been appointed to design and build Atlas' unique integrated leadership and human development program. Within a year, Atlas was spun out as its own company run by Cali to accommodate interest from other companies and funds. Atlas has been rebranded to Pilea, after Pilea peperomioides, widely known as the Chinese money tree. (The Pilea plant's large, circular leaves look like coins and grow quickly, sprouting numerous branches that can propagate into more plants.) Kali continues to run Pilea today.
Meanwhile, the investment firm also underwent a rebrand, and Pure Ventures was born. Currently, the company's portfolio includes the functional beverage company MUD\WTR, June Shine Hard Kombucha, and his electric scooter brand Unagi.
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Mental health support also contributes to peace of mind and peace of mind
Howie and Jake have been in Silicon Valley for more than 20 years combined and have a significant network to match. But sometimes we receive referrals that lead to the best deals “because other investors want to get us on the cap table,” Howie said. “Because we provide a service that is not only extremely helpful for founders, but also provides peace of mind for investors… We know that. They are know that [founders] They are getting the services they need and the support they need to thrive. ”
He reports that Pure Ventures literally won the deal because founders went to their bidding wars with other VCs and expressed how much they needed Pilea's affordable, high-quality, founder-centric services. are doing. Pilea is also available to other of his VC firms and individual founders who aren't working with Pure, so you can imagine its influence eventually spreading in the tech space.
Finding limited partners is a little difficult. Howie says it's a family affair. “If you can join a family office network, that's a huge deal,” he said, noting that FOMO is very much alive and well among the wealthy, who often have private investment management companies that monitor them, or ” He pointed out that “family offices” are often established. Review their portfolio and find new ways to build wealth. “Once you get one family office willing to invest in you, other family offices will hear about it and have FOMO and want to come in as well.”
So how can we work with these offices? “There is no platform or marketplace. [about] It's about finding your way into these very elusive worlds and making yourself known in some way,” Howie said, adding that email is a priority for most family offices (and many The case is the only communication channel).
Do it or not? . .and try and try again
“We learned a lot by doing it,” Howie says. He eschewed his MBA and chose to learn on the job, first with his CAA agency and then by starting several businesses of his own.
Pitching to potential LPs is often a “literally Sell your business, your team, your products and services, and of course yourself. However, high net worth individuals and family offices are a specific group of investors that have special opportunities to partner with VC funds.
“You're offering access to a really exciting asset class and an exciting world,” Howie points out. “And then there are investors who typically invest in bonds or low-risk things… or real estate, which is the most exciting asset class. You're investing in the future, so you're investing in new innovations that are really exciting. LPs want to be a part of the next big thing. They want to talk about it over dinner. They have some level of interest in what's being built. They want to feel like they have agency and ownership.”
He said the return on these “boring and monotonous” low-risk investments is “8%, 12% at most,” but that participating in venture capital “not only brings huge returns, but also generates buzz-worthy value.” It also provides an opportunity to invest in companies with . . . No other asset class can offer this. ”
While funding the fund is an attractive prospect for many investors, Howie said: right It will be a long process. So don't be surprised if you end up attending hundreds of meetings. “Because you never know where a meeting will lead,” he says.
That optimism and tenacity are very much in line with Pilea's core principles. Growing as a leader requires integrating mental, emotional, and physical health, and the founders believe that “the confidence and courage necessary to succeed where others might give up” Need support to give.
Fundraising is not for the faint of heart, but founders deserve to feel supported. We look forward to seeing how the impact of the much-needed Pilea grows.
The article is based on an interview with Nathan Beckord and Howie Diamond about an episode of Foundersuite. how did you grow it podcast.
About the author
Nathan Beckcord is CEO. foundersuite.com, creates software for startups raising capital.Nathan is also the CEO fundingstack.comis a new platform for VCs and investment bankers to raise capital and support their clients and portfolio companies. Users of these platforms have raised more than $9.7 billion since 2016.
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