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Arlan Hamilton’s journey from homelessness to running a venture fund for underrepresented entrepreneurs

In the closing keynote of EntreFEST 2020, Arlan Hamilton shared the wisdom she’s picked up from her remarkable journey of building a venture capital firm from the ground up while homeless.

In 2014, 34-year-old Hamilton was living in a hotel room with her mother in Houston.

“I remember taking myself through this exercise of asking myself if in five years, can I live with the idea that this fund would not exist, catapulting my way into the future,” said Hamilton. “I opened my eyes and said, ‘I can’t live in that world.’ That day I knew what I had to do and it was only downhill financially from there.”

Hamilton moved to Los Angeles to begin building what would eventually become Backstage Capital, a venture capital firm that invests in companies started by underrepresented entrepreneurs — women, people of color, and LGBTQ founders.

Eventually, Hamilton received her first investment from an investor and startup advisor named Susan Kimberlin in September 2015. Kimberlin later introduced Hamilton to her second investor who introduced her to her third.

“Being someone’s first yes — and it doesn’t have to be financial — a yes to an office hour, to a phone call, to an introduction can mean the world to them. That sort of power is really interesting to me and is often overlooked because we think in order to be someone’s hero we have to be heroic,” said Hamilton.

Fast forward to today, Backstage Capital has raised more than $10 million and invested in more than 130 startup companies.

Just last month, Hamilton released a new book with lessons she’s learned along the way called “It’s About Damn Time: How to Turn Being Underestimated into Your Greatest Advantage.”

“No matter what your position is, there’s something you can do for someone else. You don’t have to wear a cape, it doesn’t have to be huge. I think there’s something really powerful about that.”

Previous coverage

EntreFEST 2020: Day One Recap -June 4, 2020

Arlan Hamilton's journey from homelessness to running a venture fund for underrepresented entrepreneurs | Clay & Milk
A central Iowa ag-tech accelerator has secured more backers and finally has a name. The Greater Des Moines Partnership first announced the accelerator last year, naming four initial investors. On Monday, the Partnership said the program will be called the "Iowa AgriTech Accelerator" and named three new investors. The new investors include Grinnell Mutual, Kent Corp. and Sukup Manufacturing, all Iowa companies. They join investors Deere & Co., Peoples Co., Farmers Mutual Hail Insurance Co. and DuPont Pioneer. Each investor has agreed to put up $100,000 for the first year of the accelerator. Startups entering the program will receive $40,000 in seed funding in exchange for 6 percent equity. Tej Dhawan, an angel investor and local startup mentor, is serving as interim director until the AgriTech Accelerator names a permanent leader. Dhawan held a similar role with the GIA before Brian Hemesath was named as managing director. As interim director, Dhawan said his main job includes hiring the accelerator's executive director, establishing a business structure and initial recruiting for the first cohort. The accelerator will place few filters, such as location and product, on the applicant pool, Dhawan said. "When you’re seeking innovation, innovation can come from every corner of the world so why restrict ourselves," he said. One area the the AgriTech Accelerator won't recruit from is biotech. For its first cohort, the AgriTech Accelerator will work out of the GIA's space in Des Moines' East Village, Dhawan said. A future, permanent home is still to be decided. The accelerator's program will host startups from mid-July through mid-October, ending with an event connected to the annual World Food Prize. The GIA, which the AgriTech Accelerator is based on, also ends with presentations at an industry event. The accelerator has also started lining up a mentor pool. The Iowa Corn Growers Association, Iowa Soybean Association and the Iowa Pork Producers Association have agreed to provide mentors, as has Iowa State University. While the AgriTech Accelerator is loosely based off of the GIA, it will differ in its business structure, Dhawan said. The GIA runs through a for-profit model for both operations and its investment fund. The AgriTech Accelerator will have a nonprofit model for its operations and a for-profit setup for its fund. Dhawan said the nonprofit model is being used so the accelerator can better work with other nonprofit partners, such as trade associations. "These are all organizations that are nonprofits and can be amazing stakeholders without ever having to be investors in the accelerator," he said. "It becomes easier to work with trade associations in their nonprofit role when we are also a nonprofit." When it's up and running, the AgriTech Accelerator would be one of a handful of ag-focused startup development programs in Iowa. Others include the Ag Startup Engine out of Iowa State University and the Rural Ventures Alliance from Iowa MicroLoan. Matthew Patane is the managing editor and co-founder of Clay & Milk. Send him an email at mpatane@clayandmilk.com.
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