1. Money is stagnant.
You can only invest $1 once.
Best case scenario, when you invest in a single company the money stays there for a 7-10 years and you receive a 1000X return on that dollar. At worst, the company folds and your $1 along with it.
With our model, we invest that dollar into human capital that can work for 5-7 different startups each year.
De-risking each step of the venture creation process for the founders we invest in.
2. Human Capital > Monetary Capital at the earliest stages.
When someone comes up with an idea - they form a business if they believe it has a true benefit for potential customers.
Between that moment and receiving their first round of venture capital, they have to make millions of micro decisions. Millions of ways that they could make the wrong decision.
Our model helps them exponentially grow faster by bridging that competency gap. Our Startup Engine process & Founder Operating System guides them efficiently along the idea stage of their startup's lifecycle.
Put a company graduating from our programs and another company at even later stages, our KnowCap companies will beat them.
3. Data will increase investment success.
Venture capital & angel funding are based on a strong belief from investors that a company will increase value to over $500M and then exit.
However, 90% of the time, their beliefs are wrong. As our ecosystems grow (we anticipate working with 4,000 startups by 2029), we will gather data on the best ways to build startups.
This data will continue refining our proprietary Startup Engine process as we increase our hit rate over time.
4. This is not just a startup play.
From creating code schools to enhancing the job possibilities of underrepresented ethnicities. We believe that our economic value to the cities we operate in are directly influenced with how many jobs our founders create, as well as how many founders we can support.
At scale our ecosystems are primed to have multi-generational impact on the communities we build in. For every 10 founders we invest in, we expect to a creation of 50 jobs.
For every full-time job we create, we expect a portfolio value increase of $200,000 (based on Crunchbase's value-per-employee estimations). Job creation is the key to KnowCap's mission and long-term success.
5. Our secret power.
KnowCap is designed to not only train and mentor founders, but to also train unemployed and underemployed workforce so that startups within our ecosystem have access to a growing talent pool.
What makes us special is that we want to supply the designers, marketing, branding experts, product savants, engineers, legal support, and HR professionals to the companies within our ecosystem.
This is the talent flywheel aspect of our ecosystems. We estimate that every 4-6 years, the economic impact of our ecosystems will double within the community.
6. It's never been easier to start a company - yet harder to grow one.
KnowCap creates a new opportunity as a place for aspiring founders to get battle-tested support from word-class teams.
If 80% of VC dollars go to 4 states (2018 US News article) then there is a treasure trove of undiscovered founder talent. We want to find them, invest in their companies, and guide them to success and raising their first rounds.
This will allow KnowCap to receive more favorable terms from founders as the first investor on their cap tables, and receive "ground floor" dealflow from our founder expanding networks.
Our chief target is to be the Google of venture creation - where EVERYONE turns to start a company.
We are not a fit for everyone. Investors in KnowCap can leverage our model as way to not only diversify their own holdings, but also make their dollars "travel" further.
A $100,000 investment can be deployed into 50 portfolio companies via our human capital investment model.
In addition, because we pour every dollar invested into our human capital investment model, we do not need to charge investment management fees.
That means our fund is different in a meaningful way. No "2 and 20." Full transparency on our dealflow, data, and performance.
When it comes to creating a new operating system for entrepreneurship, you have to do a few things differently. Our fundraising efforts are part of that. We do not raise in rounds (traditional), we employ a continuous fundraising model.
This allows us to focus on executing our vision of the future, and less time traveling & convincing investors to believe in that vision. By having a rolling fundraising process, we take meetings 24/7/330 from interested investors.
If you want to have a discussion to invest in our ecosystem model, please fill out the form below.
Our minimum ask is $10,000.
Due to our unique investment model, we have the ability to innovate on the traditional model of fundraising from LPs.
We needed to shift the capital call model and transform them into Dynamic Capital Pledges (DCPs).
DCPs allow investors in KnowCap ecosystems to invest via automatic monthly subscriptions. This allows you to retain your liquidity and lower opportunity costs. It also allows investors to entertain higher allocations of our "fund" without taking on the entire capital commitment upfront.
Each of threshold is a minimum only.
12-month Pledge: $25,000 or $2,083/mo
24-month Pledge: $50,000 or $2,083/mo
36-month Pledge: $100,000 or $2,777/mo
48-month Pledge: $500,000 or $10,416/mo
We partner with some of the top founders located outside of the major startup hubs. These founders have also had our team of expert pour between 500-2,000 hours of their expertise into the company.
While not every investor will want to place capital into KnowCap directly, we have designed a mechanism to pass on our dealflow.
Want access to our portfolio and proprietary data on the fastest growing idea-stage startups?
This is self explanatory, right? Monthly updates on our progress.
At the start of each month you will receive:
1. News on the growth of our portfolio value
2. Information on upcoming ecosystems
3. Details on incoming investments
4. Impact numbers from our ecosystem model
Just like we don't leave our founder success up to chance,
we don't do it for our fundraising process.
There are a few things we would like to walk you through:
1. Our Mission
2. Our Vision
3. Our Process
4. Our Progress