Our very own Amy C. Waninger has the honor of chatting with Arlan Hamilton, founder and managing partner of Backstage Capital and author of "It's About Damn Time," which was released TODAY! Arlan went from homeless in three years to running Backstage Capital, a venture capital firm that solely invests in companies founded by women, people of color and LGBTQ entrepreneurs. She graciously shares a bit about why she started her fund and wrote her book, talks about what it is about under-estimated talent that she thinks makes them a great bet in business, and she tells us how she gets herself into the right mindset to walk in and own really intimidating rooms. Check the show notes to find out more about her book!

Interested in her new book? Check out ItsAboutDamnTime.com.

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You can find out more about Backstage Capital on their website. They're also on FB, IG, and Twitter.

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TRANSCRIPT

Zach: What's up, y'all? It's Zach with Living Corporate, and listen. Really excited to bring the episode that we have for y'all today. For those of y'all who are in the know, when you talk about venture capital, when you talk about inclusion and equity within the venture capital space, you know who Arlan Hamilton is, okay? So I'm not gonna steal any of Amy C. Waninger's thunder, but I just want to do, like, a quick thank you and shout-out to Arlan for being on Living Corporate, and really excited for y'all to check out the episode, because the next thing you hear, they're gonna get right into it, so I just wanted to make sure I gave a little bit of context that you're gonna be listening to Arlan Hamilton and her talking about her latest book as well as her company, Backstage Capital. 'Til next time, y'all. Peace.




Amy: Arlan, thank you so much for joining me. How are you today?




Arlan: I'm doing pretty good. How about you?




Amy: I'm doing well. So we're recording this kind of in the midst of all of this coronavirus craziness, and the episode will be released on your book launch day, on May 5th, and so if you can, just project forward to book launch. How are you feeling?




Arlan: Well, I'm probably feeling the same way I'm feeling today, which is just a few days prior, which is incredibly excited and honored that I have the opportunity to even have a book coming out and coming out on a publisher, and it's just been a really great experience so far. I heard so many different stories from different authors of, like, how their experiences have gone in the past, from indie to published, and mine has just been really great.




Amy: That is fantastic. And the book is wonderful. I got to read an advance copy as part of your launch team. I enjoyed it so much. And a lot of the questions I normally ask in this series you've covered in your book, and so I want to make sure people go there, but one question I did want to ask you about is what has surprised you the most about the venture capital space? Now that you're on the other side of it.




Arlan: I don't know if it surprised me, but it's been kind of reinforced that there's just--money is a tool, you know? There's no one who is more important than the next person. And yes, there are some people who have a little bit more power, a little bit more strategically have placed them in places with more authority, but really there's an equality that I still believe in, and it drives me to do what I do, and it's why I started my fund. It's why I wrote the book "It's About Damn Time," because it felt like--one of the things was it was about damn time everybody realizes that we're all on this spinning rock together and that just because you're a venture capitalist doesn't make you any better than the next person.




Amy: Definitely. And you talk about in your book the statistic that's jarring to me, that while white men make up about 30% of the population in the country, they get about 90% of capital investment. And your fund is a step in the direction to kind of undo that math and to make the playing field a little bit more equitable. How is that going? Like, do you feel like you're at the point where it's starting to shift, or do you think that there's opportunity for more people to come in and do what you're doing and build this space a whole lot bigger? 




Arlan: I think both. I think there has been absolute change in the last five years, four and a half years since I started Backstage Capital. It was a completely different playing field back then, and that was only a few years ago. So I absolutely see change. Obviously it's not fast enough. It's not enough. So there's plenty of room for better change and for more change, and that's where I'm excited about the future and about--one of the things in my book is about empowering other people to understand that they can join, you know? They can still join this technical revolution and all of that, because there's just so much more left to do. There's so many people who are doing it too. I don't want to ever say that it's only me. I mean, there are plenty of people who are black or brown [and?] women, who are investors, who are trying to change those statistics for the better. But yeah, I think if I hadn't seen some change for the better I wouldn't have been able to keep going, and so I've seen it. Most of it has come from individuals taking the reins and saying, "Look, I'm not going to wait for something to come save me. I'm going to put this into my own hands, and I'm going to start a company or continue a company that perhaps is bootstrapped or that has more revenue [and that?] employs people, and I'm not gonna only count on these few select guys who have a bunch of money.




Amy: You know, it's interesting because right now--and I know that you just recently interviewed Mark Cuban and he said now's a great time to start a business, 'cause when people panic you double down, and when people are comfortable, that's when you should panic, right? What industries do you see right now in the midst of what we're dealing with with coronavirus, what industries do you see picking up a lot of innovation right now?




Arlan: Well, of course the ones that are for the moment, right? So for instance companies that are selling products that are really helpful right now. We have products in our portfolio that when we first signed up them to our accelerator last year people laughed. They said, "Why do you have a toilet paper company in your portfolio? Aren't you a venture capitalist?" But we saw that they were doing things in a more sustainable way. They were saving tons and tons, literally, of trees every year, and they were fun and they had a great marketing strategy, and today they can't keep up with the demand, and they're doing it in a way that's more sustainable, which is really fantastic. So you have companies like that. We have a company in our portfolio also from the accelerator called Tambua Health that allows doctors to test for lung diseases using a smartphone. And of course last year we just thought, "This is really amazing, and we want to see what it can do," and today now it's of course going to be very helpful during the age of coronavirus. So I think, like, you're seeing a lot of health tech companies that are gonna do well if they can revamp. You're seeing companies that are manufacturing other things, that are now saying, "Let me manufacture some PPE," some personal protective gear for health care workers and essential workers, but right now and in the future I think you're gonna see a lot more education companies, things that are content-driven online, and then the infrastructure to make that easier for people to get to and to see it. And of course people are talking about "What's the future of work going to look like?" And I don't know if we know yet. I don't know if the last four weeks or six weeks or three months can tell us what the future of work will look like. What we do know is that it will be different from what we came to be used to in the past.




Amy: Yes. I think that we're seeing, you know, right now a lot of accessibility that was built--infrastructure for accessibility that was built for people from the disability community that is benefiting all of us now, and I am hopeful, to your point that the future that we're building is more accessible by design and not by legislation.




Arlan: Absolutely, and there are so many people who can take that into their own hands today, and I hope that that happens too, because honestly, we can't wait around for someone to make things right. We have to do things ourselves, and things are better--you know, they say, "Let me just do it myself." You know, "If I want it done right, I'll do it myself." Let's do that. I like that vibe, you know? Let's do it ourselves.




Amy: You said in your book several times when you're looking at founders you pattern match for grit. And I wanted to ask you, because, you know, knowing your background, that you started this fund when, you know, you didn't really have a place to live. I mean, you were experiencing homelessness at the time. You know, grit is just all there for you. I mean, you have built something from nothing more times than I could count in the book, and I'm wondering, what is it about under-estimated talent you think that makes them gritty or that makes folks a better bet in business? 




Arlan: They're a great bet. We're a great bet. I think if you are someone who is underrepresented and underestimated, it doesn't seem weird or out there or strange to you to figure things out, to get yourself out of a bad situation, to get creative when you're facing for instance, like, the rent is due and you're like, "Okay, well, what can I do to make a couple extra hundred dollars that's legal and that is, you k