I never planned on running a VC fund….honestly. For over 20 years, I have been in the Financial Service industry – operating a long/short Hedge Fund, successfully growing a wealth management business, running an investment banking firm, working on M&A activity, and partnering with various startup companies. I have seen every side of the business; both buy side and sell side. Did I do well for myself? Sure, I did great and I’m proud of my accomplishments! I became CEO of two separate companies, worked as a correspondent for two major TV financial networks. Did I help people? Of course. I helped people reach their financial goals and helped them have a prosperous future. The real question is… Did I change the world for the better? Not really. Being in Venture Capital is not just about managing a large sum of money and making smart investments in the startup businesses we partner with. It has way more value behind it. My job as a Venture Capital fund manager is to find great entrepreneurs that are building exceptional and sometimes life changing companies, give them capital to help grow their business and help them realize their dreams. These companies could be the next breakthrough technology, or better yet the next drug to save lives. They can change our lives and the lives of our children, and I want to be a part of the process. Bringing value and opportunity to a company’s future is much different than bringing it to an individual. We aren’t only focusing on helping entrepreneurs make boat loads of money; we are mainly focusing on bringing their idea and innovation to life.
I am proud and excited to launch our new Venture Capital fund, Rosecliff Ventures. We have one of the best active investor networks in the entire industry. Our network includes various athletes, entertainers, movie stars, VC’s, and hedge funds.. Besides my background in various financial industries, I have personally made several successful investments in high profile, early stage venture capital companies that are already changing the way we live today.
Our newly launched fund focuses a majority of our investments in series A or seed round investments. What this means (for those that are unfamiliar), we are the first or second money into a startup company. We are considered very early stage. The investment process is much different between early and late stage. One of the biggest differences is the way they are valued. Early stage investments use a “ground up” approach to value a company. They will get a higher valuation based on company success, future projections, and the backgrounds of the team. Late stage companies are the opposite; they use a “top down” approach. They are valued at a discount to where they would price in the public market. When we look at a late stage investment, we run a series of comparable models, comparing similar publicly traded companies to our company. For early stage investing, our time horizon is longer term. We want to make investments in the founders and let them build their dream into a reality. We know these companies are nowhere near going public, so I don’t worry about headlines and news articles. I have more of a focus on growing the company, and seeing their ideas come to life.
So, to recap…why would I choose to be in venture capital? The short answer is I want to help great entrepreneurs achieve their dream. I want these companies to positively impact our future. Through our venture capital fund, I get a sense of ongoing accomplishment in helping companies succeed. I get to meet with very intelligent, interesting people. I see different people from all walks of life. They all have one thing in common… they are passionate about the business they are building. If I can put my personal experience to work by helping exceptional companies grow, and be a part of making the world a better place… well then I would have to say I have the most satisfying job in the world.
Please follow us on our journey as we start the New Year with our new opportunity. My goal…I want to make the world a better place for us and our children, one company at a time. If you have any questions you are more than welcome to contact me personally, or leave any comments below.