In this episode of The Business Gay Podcast, host Calan Breckon speaks with Founding Partner at Chasing Rainbows, Ben Stokes.
Ben is a trailblazer, a visionary in venture capital, and a dedicated champion of diversity and inclusion. As the Founding Partner of Chasing Rainbows, an early-stage investment fund, he is on a mission to amplify LGBTQ+ voices in the entrepreneurial landscape. Ben’s accolades speak volumes: he is recognized as a 40 under 40 Rising Star of Venture, an LGBTQ+ Pride Leader, and a Top 100 Investor. He is not only an investor but also a mentor, guiding underrepresented founders toward global success. From the UN General Assembly to NFP boards, his influence is felt worldwide. Ben is a driving force for change, shaping a world of radical inclusivity through Chasing Rainbows.
---
► Today’s Sponsor is PartnerStack - Take the free quiz!
Get a FREE Website SEO Audit from Calan: CalanBreckon.com/audit
Join the email list for news and updates
---
Links mentioned in this episode:
---
Key Takeaways for quick navigation:
- [03:37] Venture capitalists manage and deploy capital into startups for limited partners, aiming for large exits through IPOs or acquisitions.
- [08:50] Venture capital is best suited for businesses with the potential for high returns and rapid scalability, often seen in the tech industry.
- [10:56] Not all investments by Chasing Rainbows are tech-related.
- [16:30] Early-stage investments typically involve signing a safe note, and the founder may give away around 10% to 20% ownership in exchange for funding.
- [19:29] Founders should focus on achieving revenue early, making their company sustainable, and giving them negotiating power with investors for better deal terms.
- [19:56] Chasing Rainbows focuses on mentorship and creating an ecosystem playbook model to support founders beyond just providing capital.
- [20:39] Key advisors help founders build strategies, set expectations, and create KPIs to showcase their growth, making fundraising for the next round more effective.
- [24:49] Exit strategies are crucial, and Chasing Rainbows looks for companies that can exit within 5 to 7 years, either through IPO or acquisition.
- [26:40] Chasing Rainbows aims to create long-term relationships, hoping founders will reinvest in the fund or start new ventures after a successful exit.
- [30:51] Chasing Rainbows welcomes challenges to its focus on LGBTQ+ representation in investments, emphasizing the underinvestment in this community and the positive outcomes of supporting LGBTQ+ founders.
Popular Podcasts
CrimeLess: Hillbilly Heist
It’s 1996 in rural North Carolina, and an oddball crew makes history when they pull off America’s third largest cash heist. But it’s all downhill from there. Join host Johnny Knoxville as he unspools a wild and woolly tale about a group of regular ‘ol folks who risked it all for a chance at a better life. CrimeLess: Hillbilly Heist answers the question: what would you do with 17.3 million dollars? The answer includes diamond rings, mansions, velvet Elvis paintings, plus a run for the border, murder-for-hire-plots, and FBI busts.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.