We make credit sexy(ish) this week with Mike Luebbers, the Chief Credit Officer of Novel Capital. We brought Mike onto the team at Novel after we worked closely with him as he led the underwriting on the credit facility we raised. We learned so much in that process that he was our first call when we decided it was time to hire a Chief Credit Officer. Mike is a world-class credit investor, having been Chief Credit Officer at both Bridge Bank and Lighter Capital. In this conversation, which I pulled from the archives, Mike shares his unique point of view on how to do RBF deals (having done hundreds in his career). Mike also shares some great tips for folks to learn how to think about alternative capital and RBF investing, how his experience in the tech sector inspired him to leverage tech for efficiency and creativity in underwriting, and the key metrics Mike looks at when thinking about an RBF deal. Key Takeaways [4:00] Mike’s career trajectory from commercial tech banking to RBF. [5:48] The difference between the sales and credit guy. [6:05] Mike’s duties as the Chief Credit Officer role at Novel Capital. [8:31] How Mike made the shift from bank to fintech startup. [10:17] Where Mike sees RBF fitting in the landscape both with customers and companies. [12:01] The key factors of predictability of revenue and customer base in determining the appropriate amount of RBF to provide. [16:08] How RBF fits with the entrepreneur’s growth goals. [19:52] The difference between Merchant Cash Advance and the typical RBF. [22:18] The other key metrics Mike looks at when thinking about an RBF deal. What are the bare minimum criteria that he thinks are important? [27:41] Deal killers in RBF and when it’s not a “no”, but a “not yet”. [30:30] How do you know when to attribute it to luck vs. good underwriting? [34:02] Q&A: What role does Mike see RBF playing post-pandemic recovery of non-software small businesses? [44:02] Companies that offer a profit share rather than a revenue share. Indie.vc , Earnest Capital . Thanks to our sponsor for this episode: Husch Blackwell - Husch is my go-to law firm for everything related to raising capital, building companies, deploying capital, and everything in between. The partner I work with, Ed Wilson , understands the alternative capital landscape and I can’t recommend him highly enough. Resources: RBF Network Keith’s Twitter Keith’s Linkedin Lighter Capital Bridge Bank Guest: Mike: LinkedIn | Novel Capital…

Happy Holidays, my friends! Today we’re rereleasing a fan favorite - my conversation with Ruben Alonso, CEO of AltCap. AltCap is a mission-driven community development financial institution (CDFI) operating across multiple states and based in Kansas City. Ruben has propelled AltCap's growth for 15 years, channeling over $300 million in alternative financing towards underserved communities and often-overlooked entrepreneurs. Noteworthy is Ruben's recent launch of AltCap's RBF loan product, opening new avenues for entrepreneurs. Ruben's unwavering dedication to democratizing capital access is deeply rooted in his family's own immigrant story from Cuba during the late 1950s and early 60s. Join us as Ruben provides valuable insights and firsthand experiences in advancing financial inclusivity and fostering small business triumph. Key Takeaways [3:31] The journey from corporate America, to the Peace Corps, to AltCap. [5:53] How Ruben’s family roots from Cuba informs his desire to help build other businesses. [8:57] How AltCap got started and how it has grown. [12:48] What CDFIs are, and how they operate. [16:30] Lending is a volume business, and maintaining the impact ethos. [18:48] How they built and evolved their underwriting models. [19:49] The character based lending approach. [22:19] The benefits of using Ned’s end-to-end system to originate and manage loans. [25:00] Examples of RBF deals they have done and where RBF can be a powerful financing tool. [26:45] The KauffmanFoundation provided them a $5.3 million program related investment to launch an RBF loan fund to help prioritize entrepreneurs of color. [29:14] The relationship between a funder and borrower. [35:22] Lessons learned from building a tax credit program to $250M+. [36:21] The psychology of RBF. [40:03] Capitalizing AltCap for the future. [41:26] What entrepreneurs should know about CDFIs. [47:01] Ruben’s advice for building an alternative capital platform. Thanks to our sponsor for this episode: Husch Blackwell - Husch is my go-to law firm for everything related to raising capital, building companies, deploying capital, and everything in between. The partner I work with, Ed Wilson , understands the alternative capital landscape and I can’t recommend him highly enough. Resources: RBF Network Keith’s Twitter Keith’s Linkedin Novel Capital | Ruby Jean’s Juicery Guest: Ruben: LinkedIn | AltCap | Twitter…

Keith welcomes Bryce Butler, founder and managing director of Access Ventures. Bryce shares his unique journey from the military and being a pastor to becoming an impact investor and advocate for innovative capital strategies that empower local communities. He discusses the concept of “access and agency,” emphasizing the importance of providing not only access to capital but also the tools for individuals to make informed decisions about it. Bryce also explores the community round funding model, explaining how it democratizes investment and strengthens local economies, particularly through his work with WeFunder and the Community Match Fund. Key Takeaways [2:50] Bryce shares his military experience as a tank officer, leading soldiers, then his journey through seminary and eventual transition into family offices and impact investing. [6:52] Bryce describes his role as an instigator, challenging the status quo in local philanthropy. [8:10] Overview of Access Ventures as a multi-asset, mission-aligned nonprofit. [10:32] The importance of access to capital and the agency to make decisions. [12:33] Access as an impact multiplier. [13:05] Assets under influence vs. assets under management. [14:01] WeFunder’s community round match fund and its impact. [17:27] A range of tech, CPG, and yes, even a cookie company ( Please & Thank You ) benefiting from the investment strategy. [18:45] How founders decide what type of capital works for them. [21:14] Raising awareness about the community match fund. [26:02] The difficulty of getting traditional chambers to support innovative capital solutions. [29:22] Bryce’s work on policy design to help state-level economic development adopt new capital strategies. [31:15] How community support plays a critical role in capital allocation. [31:19] Removing the illusion of favoritism. [31:49] Raising $240k for a Harlan County beer company. [32:04] A playbook for launching community rounds in different regions. [33:05] Bryce’s podcast, More Than Profit. [35:20] Render Capital’s blended investment strategy for underserved entrepreneurs and raising $15 million. [37:24] Working with Ross on the Blueprint Local opportunity zone fund. [38:23] Bryce predicts the growing influence of revenue-based financing and reimagined term sheets for long-term business success. [40:36] What has surprised Bryce throughout his career journey. [40:53] The difficulty of moving traditional systems toward innovation. Resources: RBF Network Keith’s Twitter Keith’s Linkedin Bryce: Access Ventures | Email: bryce@accessventures.org | More Than Profit Podcast…

Navigating ROBS for Business Startups with Mickey Parker, CEO of Accelefund In this episode, Keith explores an innovative way to start or buy a business using the retirement funds (IRAs and 401Ks) with Mickey Parker, Co-Owner and CEO of Accelefund. Mickey shares how entrepreneurs can utilize their retirement funds tax-free by setting up a ROBS (Rollover for Business Startup) account and using that to invest in their startup. He explains the advantages of ROBS, how to set one up, when it makes sense and doesn’t, how this approach can help any entrepreneur start a business. Mickey also shares success stories from Accelefund clients, why many bankers are unaware of this powerful financing tool, and the current regulatory changes impacting this unique investment strategy. Key Takeaways [2:00] Mickey’s experience as a controller and CFO led him to discover ROBs (Rollover for Business Startup) and eventually take over Accelefund. [5:38] How the ROBS program allows entrepreneurs to use their existing retirement funds to invest in a new C corporation without incurring taxes or early withdrawal penalties. [9:33] The difference between ROBS and a self-directed IRA. [11:12] Requirements of the program. [14:36] ROB plans can be used as the equity support for an SBA loan. [17:02] How Accelefund works with entrepreneurs. [18:22] Success stories. [20:08] Prohibited transactions and business types that aren’t allowed. [26:10] Why most bankers don’t know about this option. [27:22] Using retirement funds for business startup equity and exit strategies. [34:06] What happens if the business fails? [35:05] Trends Mickey sees in the market. [38:11] Regulatory changes over the years. [38:44] The IRS Memo from 2008 on ROBS . [39:22] SBA endorsement on ROBS. Resources: RBF Network Keith’s Twitter Keith’s Linkedin Mickey: Accelefund | mickey@accelefund.com | 913-274-1930 | Accelefund YouTube…

This week, Keith welcomes David Silverstein, the CEO of Ned, a software platform revolutionizing how lenders innovate and deploy capital. David first discusses Ned's end-to-end system, which powers diverse cash flow lending strategies nationwide. He talks about the critical role of technology in streamlining lending processes and improving accessibility, the challenges of fundraising, and the concept of the "resilient lender." David highlights the growing importance of transparency in lending operations and the need to build strong customer relationships. He also shares insights on market trends, the future of capital provision, and how lenders can stay competitive in an evolving financial landscape. Key Takeaways [2:21] The driving force behind Ned. [4:56] The importance of cash flow underwriting in lending. [5:54] Cash flow lending strategies emerging as a cost effective way to grow. [8:37] Defining Ned’s growth. [13:00] Transparency is key. [15:05] The modularization of Ned’s platform. [19:14] Types of lenders using Ned’s services. [23:37] The concept of the resilient lender. White paper on the resilient lender [25:46] Staying inspired and flexible in a way that mitigates downside risk. [28:27] Having a culture of innovation and growth. [29:53] The competitive spirit of modern-day lenders. [30:35] Importance of transparency and relationships in lending. [31:04] Yes, it is hard to sell money! [33:22] Ned’s customer base includes AltCap . [36:41] The power of relationship driven capital deployment. [42:55] Future outlook for capital providers. Resources: RBF Network Keith’s Twitter Keith’s Linkedin Dave: Ned | Infrastructure Week | X…

This week, Keith welcomes Nolan Reichert, the Vice President & Head of Originations at Haversine Funding. Nolan shares more about his career funding the funders in specialty finance, Nolan goes deep on Haversine’s thesis focusing on funding commercial and secured lenders, their sweet spot of $1-25 million loan sizes, and their unique underwriting process. He also shares insights on the challenges faced by small lenders in accessing capital and staying compliant with complex regulations. Additionally, Nolan highlights the importance of building strong relationships and providing value in the alternative lending industry. Key Takeaways [8:45] Nolan’s passion for providing capital to entrepreneurs. [9:28] Nolan’s driving force is his son. [10:30] What is lender or specialty finance? [10:42] Haversine’s focus is on specialty finance lenders, mostly commercial and secured lenders. [12:32] Why companies like Haversine are important to entrepreneurs. [13:42] Haversine’s mission and history. [17:25] Changes in the lending market. [22:22] Who Haversine looks to lend to. [25:07] Their strategy for finding customers. [35:22] The regulatory challenges small lenders faced and the need for things to be simplified. [36:17] What Nolan has seen change in recent years. [40:38] What we can expect in 2025 and beyond. Resources: RBF Network Keith’s Twitter Keith’s Linkedin Novel Capital Nolan: Haversine Funding | LinkedIn | In Focus with Haversine Funding…

In this second episode of our two-episode chat with Chris Costello, the founder and former CEO of Blooom, it’s all about raising capital. Chris first talks about becoming a self-taught student in venture capital, and what he did to prepare once he finally got in front of potential investors. He shares what did and didn’t work, and advice for spinning rejection into more opportunity. Chris and I dive more into the challenges of early-stage entrepreneurship, the significance of finding mentors and developing a filter to navigate the abundance of advice and feedback that founders receive. This is a super tactical conversation that will help any founder or investor get better and raising capital, and shed light on what’s like to be on the founder’s side of the fundraising table. Key Takeaways [5:32] Bootstrapping Blooom initially before needing capital. [7:10] How Chris became a student of startups. [8:07] Studying Steve Jobs. [12:28] It took Chris 130 pitches to unique investors to find 15 investors. [14:53] Having the right mindset to pitch the dream and vision of the company. [15:33] Techniques that help confidence. [16:49] The importance of asking the right questions. [20:12] Asking for email intros once you get a no. [22:19] Having radical self-belief. [25:49] What Chris learned pitching to different investors. [28:02] Be precise on your use of funds. [31:25] Finding a mainstream VC firm to act as the lead investor in your round. [32:49] Putting a clock on your investors. [33:17] Don’t do due diligence with all your investors. [36:11] The two main things Chris looks for when vetting investors. [37:03] Looking for someone who has “been there” and “done that”. [39:25] Standardized term sheets on National Venture Capital Association . [40:07] Working with experienced attorneys such as Cooley. [45:33] Questions to ask strategic investors. [47:11] Asking candidly for the reason behind the “no”. [49:57] Why investors give a slow maybe as opposed to a fast yes. [52:46] Finding the right set of mentors. [54:18] Developing a filter. [56:12] Connecting with people. [57:22] Do backchannel diligence on them. [58:33] Asking for the amount you need and not over-raising. [1:00:22] Spotting inexperienced angel investors. [1:01:09] Creating two pitch decks. [1:02:58] Would Chris raise venture capital again? [1:08:11] Chris’s passion for Blooom’s mission. [1:12:51] Chris’s boutique wealth management firm, Curtis Capital Advisors. Resources: RBF Network Keith’s Twitter Keith’s Linkedin Novel Capital Chris: LinkedIn | Morgan Stanley | Chris’s Finovate Best of Show…

Chris Costello is the founder and former CEO of Blooom, an innovative digital robo advisor. Chris is a rare entrepreneur who built both a bricks-and-mortar company and a technology business. In this first episode of our two-episode chat, Chris first talks about starting his entrepreneurial journey in 2004 by co-founding The Retirement Planning Group, an independent wealth management firm. Over the next decade, the firm flourished under his leadership managing over $1 billion in assets. In 2013, Chris co-founded Blooom to help people better manage their 401k investments. He discusses the challenges of fundraising as an entrepreneur, navigating multiple failed acquisition deals, winning Best of Show at Finovate, and Blooom's eventual sale to Morgan Stanley in 2022. Chris shares some invaluable advice about raising venture capital through his experience pitching over hundreds of times. Key Takeaways [4:41] Starting the Retirement Planning Group. [7:42] Learning sales and phone skills in the boiler room. [8:10] Chris’s conversation rate back in the day. [9:16] Teaming up with Kevin Conard. [10:08] Building a niche in retirement planning. [14:20] Starting Blooom and the biggest challenges. [18:05] Meeting up in Randy’s basement to discuss the initial ideas of Blooom. [22:31] What made Blooom so special [25:52] Funding Blooom’s initial development. [26:40] Winning Best of Show at Finovate . [29:04] Chris is in the “100 Club”. [30:30] Landing QED. [32:04] The decision to go down a new path. [33:54] Getting referrals from uninterested VC’s. [35:35] Fundraising strategies for startups. [36:18] Fundraising under the gun. [40:53] CEO transition. [43:34] Taking back the CEO role in 2019. [44:11] Lessons learned from being abruptly left at the altar by an acquirer. [57:47] Selling to Morgan Stanley in 2022. [1:00:29] Advice for raising capital. [1:07:02] Three things a good investor should help with. Resources: RBF Network Keith’s Twitter Keith’s Linkedin Novel Capital Chris: LinkedIn | Morgan Stanley | Chris’s Finovate Best of Show…

Kristian Marquez is the founder and CEO of FinStrat Management. In our chat, Kristian shares lessons learned on his journey from starting a telemedicine startup, experiencing startup failure and an IPO, to founding FinStrat. He discusses the importance of validating your idea with customers through market feedback before building a product. He dives more into FinStrat’s unique approach, and also offers practical guidance into fundraising challenges, highlighting the need for accurate financials and metrics and financial transparency for a truly healthy investor and founder relationship. Key Takeaways [2:48] Kristian’s background. [4:22] Co-founding a telemedicine startup and raising $2.5 million. [5:58] Starting FinStrat. [9:55] The importance of understanding investors' perspectives. [10:14] The importance of transparency between founders and investors. [13:02] Technology improves accounting processes but expertise is still fundamentally required. [14:10] Healthy founder-investor relationships are built on trust and transparency. [18:50] Raising capital for FinStrat. [20:10] Pros and cons of debt financing. [22:30] Fundraising from a position of strength. [26:55] Remembering “the ask” in a meeting. [32:16] What investors and founders shouldn’t do. [36:47] Lessons learned from his telemedicine startup. [38:08] The market must demonstrate demand. [41:15] What has surprised Kristian along his journey. [43:24] Kristian’s positive experience with Novel . Resources: RBF Network Keith’s Twitter Keith’s Linkedin Novel Capital Kristian: FinStrat | LinkedIn…

Shaily Baranwal is the Founder and CEO of Elevate K-12. She’s an incredible entrepreneur and CEO, and I can attest to her ability to rapidly scale a company. Elevate K-12 provides engaging virtual classroom instruction from certified live teachers to ensure every student receives a high-quality education regardless of zip code. In the episode, Shaily shares the inspiring journey from her childhood in India as a special education student, to becoming a classroom teacher. She discusses founding two other companies before Elevate K-12, including a chain of preschools for low-income students in rural India. Shaily also talks about her fundraising experiences starting Elevate K-12, scaling the business, and her passion for problem-solving and rule-breaking in entrepreneurship. Key Takeaways [2:32] Shaily’s background. [6:00] Shaily embraces both her scientific and artistic side. [8:09] Solving problems is Shaily’s motivation. [11:00] “ Principles ” by Ray Dalio. [12:22] Learning from advisors and leaders. And choosing them wisely. [14:05] Creating an ecosystem of success. [18:01] Shaily’s past in teaching. [18:33] Elevate - the fundraising journey. [20:56] Why fundraising was a nightmare. [22:08] Getting the first million from a hedge fund founder. [26:04] The importance of a great investor. [26:48] Discovering non-dilutive funding. [29:27] Screening potential investors and choosing Novel. [32:18] Asymmetry in the power and information dynamic. [36:31] Advice for entrepreneurs and investors. [39:35] Why did fundraising almost break Shaily? [41:18] What surprised Shaily throughout the journey. [43:05] The impact Shaily’s dad had on her career. Resources: RBF Network Keith’s Twitter Keith’s Linkedin Shaily: Website | LinkedIn…

Marshall Lebovits is an advisor at Asset Based Funding Solutions with almost 35 years of experience in the secured financing and alternative capital industry. In the episode, Marshall shares more about his passion for helping grow companies that typically lack access to capital with non-dilutive asset-backed financing solutions. Marshall discusses how he built a network of connections around the world, the importance of carefully evaluating your lending partners to make informed decisions, and the importance of accuracy in financial reporting. Key Takeaways [3:05] Marshall’s career background. [[9:51] Asset-Based Funding. [10:07] Sourcing deals. [14:25] Case Study: A healthcare staffing company Marshall helped during the pandemic. [22:15] Investing in the right types of relationships. [29:35] Case Study: A protein drink client that stood out in the Better for You CPG space. [34:58] What Marshall is both advising entrepreneurs on and warning them to be vigilant about. [38:13] The importance of accurate financial reporting. [47:21] Building Asset-Based Funding Solutions. [47:38] Relationships matter. Make sure you trust who you work with. Resources: RBF Network Keith’s Twitter Keith’s Linkedin Marshall: LinkedIn | X…

This week features Brendan Cosgrove, Co-Founder and Director of Catalyze, a unique national nonprofit dedicated to democratizing access to LP and institutional capital networks and resources for underserved investors and GPs. With his extensive experience guiding LPs at Cambridge Associates, and as Investment Director at the Kauffman Foundation's Capital Access Lab, Brendan brings a unique perspective to the table. In our conversation, Brendan shares insights into the challenges of introducing innovative funding methods like RBF and the importance of supporting diverse fund managers. He talks about Catalyze's Fund Fellowship program, aimed at empowering capital entrepreneurs to build investment solutions for underserved businesses. Brendan also sheds light on the long-term commitment needed to build institutional-quality investment firms and provides valuable insights into funding vehicles for impact investors. He also demystifies MRI vs PRI for foundation investors. Key Takeaways [3:13] What led Brendan to Catalyze. [7:15] Brendan’s interest in alternative capital. [13:43] The importance of underwritable track records and the ability to benchmark. [17:33] Getting more institutional LPs to write those anchor checks. [20:45] The opportunity for big foundations to step into alternative capital. [25:00] Capital Access Lab. [27:12] Catalyze’s approach of being an anchor for underrepresented founders. [30:25] MRI vs. PRI. [33:22] How Catalyze helps capital entrepreneurs. [35:46] Catalyze’s Fund Fellowship Program. [37:46] GP Runway fund. [39:34] What managers learn at the Fellowship Program. [53:09] What Brendan sees in the emerging space. [55:09] Embracing the learning curve with innovative models. Resources: RBF Network Keith’s Twitter Keith’s Linkedin Brendan: Catalyze | LinkedIn | Blueprint Local | Capital Access Lab…

It’s a fun conversation this week with Justin Renfro, Director of Revenue-Based Financing at Wefunder. Justin shares his journey from a boat mogul with his company Chill Charters to working with thousands of entrepreneurs at Wefunder. Justin discusses his passion for building a diverse range of mission-driven companies, Wefunder’s community-based approach to drive value for founders and capital into businesses, and iterating the platform experience. He shares optimism for the next generation of impact investors and also touches upon the challenges of educating founders about alternative financing. Key Takeaways [2:29] Justin’s trajectory [6:15] Wefunder overview and Justin’s role. [12:10] Wefunder’s guidance to entrepreneurs. [15:23] The challenge of explaining alternative finance to founders. [18:17] The Wefunder founder experience. [28:12] Overcoming educational challenges in alternative financing. [33:20] The importance of patience and consistency. [41:24] Mission-focused investing. [44:11] Justin’s biggest takeaways from Wefunder. Resources: RBF Network Keith’s Twitter Keith’s Linkedin Justin: Wefunder | LinkedIn | Chill Carters Other links: Elephants, Not Unicorns | Peter Harris…

Our guest this week brings enthusiasm and excitement to RBF which sets the stage for a great conversation. We welcome Manolo Atala, Co-Founder and CEO of Fairplay, a LatAm-focused revenue-based financing platform headquartered in Mexico. Since launching in 2019, Fairplay has originated $220M in revenue-based loans, built a team of 127 people, and made a huge impact in Latin America. Manolo shares how they’ve done that, and covers his diverse career journey before Fairplay, spanning advertising, entertainment, and the successful establishment of high-impact companies. He explains Fairplay's spin-out of Nazca Ventures and the company’s impact on financing and funding in Latin America. Manolo and I discuss balancing growth with responsible underwriting, and the beauty of transparency in strategic partnerships, and Manolo shares his vision of building Fairplay into a $1 billion company to improve access to capital in Latin America. Key Takeaways [1:45] Manolo’s path to entrepreneurship. [5:38] Being a musician. [10:19] Launching Fairplay in 2019 and expanding geographically. [11:12] What happened to Clearco ? [13:21] Lending is hard to do well and easy to screw up. [18:02] The embedded lending space. [19:02] What we can learn from Metallica. [24:14] The importance of straightforward dialog with investors. [32:46] How not to pitch equity investors. [40:15] Automating underwriting. [47:05] Originating more than $220 million. [48:54] The future of Fairplay. Resources: RBF Network Keith’s Twitter Keith’s Linkedin Manolo: Fairplay | X | LinkedIn |…

This week, we welcome Elliot Begoun, a 30-year industry veteran, author, podcast host, and founder of TIG brands, and developer of the CARE funding structure. Elliot focuses on empowering entrepreneurs to be nimble and capital-efficient change-makers throughout their journey. He shares insights on building tardigrades, not unicorns (and why that’s a thing), and lessons from developing and deploying alternative funding structures that support tardigrades. We talk about why investors can be slow to adopt new funding structures asd well. Elliot also shares more about TIG's commitment to fostering a supportive community for entrepreneurs through a holistic approach and a constellation of services. Key Takeaways [1:45] Elliot’s background. [2:13] Why Elliot started TIG Brands. [3:49] How TIG developed its capital structures. [6:39] Definition of a tardigrade and how it represents the brands TIG works with. [8:37] Building a holistic ecosystem for entrepreneurs. [10:53] Giving entrepreneurs optionality. [13:29] The different funding structures TIG experimented with. [21:38] The CARE agreement. [22:44] Variable based redeemable equity. [28:29] Alignment funding. [33:59] Starting a rolling fund and TIG’s mindset of being a venture community. [41:25] What has surprised Elliot throughout the journey. [47:05] The future: building allyship. Resources: RBF Network Keith’s Twitter Keith’s Linkedin Speaker Series Elliot: Tig Brands | LinkedIn | X | Tig Talks Podcast | Documents…