Startup media during the downturn is full of sensational shutdowns and massive layoffs.
But they don't tell the stories of Calm Companies.
How's the downturn for startups that focused on sustainable growth? On profit?
Our portfolio wanted to share their side:
#Buildinpublic
NEW: Today we're publishing a draft of the overarching investment thesis for future funds at Earnest Capital and the roadmap to backing 100s and 1,000s of entrepreneurs per year. Would love your thoughts and feedback.
We've been live with Earnest Capital for just shy of 7 months, investing in 11 companies & 17 founders. It's early days but I wanted to share a few numbers, milestones, and yes some vanity metrics 😁 that we've seen from the incredible folks we're proud to work with 👇
🔥Excited to announce our investment in , the easiest way to launch a US LLC or C-Corp, open a bank account (w/
@BankMercury
), and set up your business 100% remotely 🌐
**taps mic** Is this thing on?
Not really ones for splashy launches, but we should probably mention that Earnest is now live and making investment decisions on a rolling basis. Come say hi:
🎊Introducing Earnest Capital's Radar Updates
We see lots of founders building cool products & companies and we're excited to share them with you.
See below for the (ever-expanding) thread! 👇
The first of several Request for Startups from us: We believe that the future of work is remote and want to back remote teams building tools for other remote companies
We got our account back... hooray! To celebrate, I want to retweet founders working on cool things all day. Tweet us what you've launched or what you're proud of 👇
Very excited to welcome
@dewayneroyj
who's joining us for an internship. DeWayne is thoughtful and curious and runs a great newsletter here:
This is also one heck of a story:
📢 we're thrilled to announce a ton of new amazing investors & mentors as part of our Fund II. Absolutely honored at the amazing entrepreneurs and operators helping Earnest + the companies we get to back succeed. Running list of introductions in thread below.
Hey, startups - what if you could automate repetitive tasks, reduce development budget & ship faster without engineering resources?
Now you can with
@makerpad
for Startups!
Announcement:
Our long-awaited scout program is live!
The overarching goal is for our scout program to be an explicit on-ramp to becoming an investor at Calm Company Fund.
Ready to join?
OR read more below 🧵
🦭 HIRING 🦭
We're looking for a ⚡️No-Code Intern⚡️ to join
@MichaelRouveure
on our engineering team!
Excited about using
#nocode
software to automate processes, build product, and support founders of calm companies?
Learn more + apply 👇🏽
More than half our investments last year were in founders who built their product as a side hustle and used our check to quit their job or stop freelancing:
In 2021 we invested in 27 companies — nearly twice our investment pace of 2020.
The founders span a wide range of experiences and industries — with different goals and visions of success — but all aligned in one key aspect: they’re excited to grow Calm Companies.
The list 🧵
🎉 For today's
#buildinpublic
— we're excited to launch our Earnest Operating System project beta today!
💡 What’s the Earnest OS?
It's a curated suite of solutions + partnerships tailored to support calm companies.
Downside of investing mostly in niche B2B is we can't really make a gift guide for you from our portfolio 😬 but maybe we can crowdsource & amplify 📢
Bootstrappers, IndieHackers, and founders of calm companies: if you've got a gift-worthy product/offer, drop it below 👇
An admittedly grandiose way we’ve been describing what we do: Shopify seeks to “arm the rebels” against the Empire of Amazon.
These days VC mostly backs platforms to monopolize an industry whereas we often back software built so that small businesses + individuals can compete.
@seunoyebode
mmhmm. i often say that 50% of an entrepreneurs job is just prioritizing and working on the most high leverage thing within time/bandwidth constraints. super hard when still working full-time. have to ruthlessly prioritize.
🚨
@earnestcapital
needs a rebrand partner 🚨
We’re hiring a designer (or team) with a strong handle on brand identity + no code tools to help refresh the look + feel of the Earnest ecosystem.
Help us find someone great!
Scope + details below 👇🏽
When we say "By Founders, For Founders" we really mean it: ~95% of the capital we invest in founders comes from 120+ successful entrepreneurs (most of whom dedicate time to mentor).
Curious about Investing in Earnest Capital? 👋🏽
Want to learn more about our
@Wefunder
crowdfund or our Fund 3 rolling fund?
Join our founder
@tylertringas
+ Earnest LP
@shl
for an open investor Q&A this Thurs, June 10th at 9a PT / 5p BST
REGISTER HERE:
Apparently this needs to be said: as a matter of principle, we do not invest in clones, copycats, or direct rip-offs of other products/sites. Don't care what your metrics are.
👋 if you have been patiently waiting for a response from us... it's coming soon. Sorry folks, we were completely unprepared for the volume of interest from our initial "funding for bootstrappers" post. You can now send us a more structured inquiry here
@_rchase_
@hostifi_net
yep. the most atomic irreducible uncertainty at the early stage is "do i keep slogging away at this one or switch to something else"... no easy answers
We’ve been thinking about and getting great advice from tons of smart people about how to approach mentors. Here are our thoughts on how it will work with the Earnest Advisors (& preview of who they are):
Last year, we raised a $1.3m Community Round on
@Wefunder
.
A Community Round let our wider community invest in Calm Company Fund's future.
Here's what we learned 🧵 1/6
Some Earnest-level facts:
* 9 of 11 investments we led or were the sole investors
* 8 of 11 investments enabled the founder to go full-time
* We led a $450k round with a group of industry angels joining:
Did I mention we're hiring?
Welcome
@anisahob
, our new *Director of Storytelling* 👋🏽
She's covered startups at
@Siftedeu
, expanded
@Backstage_Cap
to London, and founded
@23codestreet
to make code more accessible to women.
She's leading our efforts to curate + capture stories from the
@calmfund
ecosystem!
2020 was unbelievably hard. But also in 2020, our community of founders helped:
😷 cities issue rapid sidewalk-dining permits
👩💻 developers save time
👨🌾 farmers distribute organic food
💊 sick folks find care
👇🏽 🎉 A thread of 2020 joy from our portfolio ✌🏽 +
@foundersummit
🥾
We’ve been thinking about and getting great advice from tons of smart people about how to approach mentors. Here are our thoughts on how it will work with the Earnest Advisors (& preview of who they are):
This morning
@gilxhernandez
woke up to a flood of new Trailhead applications seemingly overnight.
Upon further investigation...
🎉 Turns we're front page on
@crunchbasenews
! 🔥
Check out the great article on our SEAL + how we fund bootstrappers 👇🏽
Of the co's we invested in >3 months ago where the founder was not yet full-time, we have seen 3/3 of them go from side project > Earnest investment > full time > at least founder-break-even in 4-6 months.
They've seen between 120% and 400% growth in MRR over that time period 🙌
🎉 We've grown the team!
Welcome
@paigechadwickd
as our new *Portfolio Operations Manager*! 👋🏽
She's studied bioinformatics + biz analytics, worked in startups + philanthropy, and raised >$1M for
@MakeAWish
, NBD.
She'll be taking our portfolio + fund ops to the next leve.l⚡️
Today we're launching "Calm Boards" for our entire portfolio.
What is a Calm Board?
Why did we build them?
And how can YOU join a board?
Read on to learn what
@sibix3
's been building 👇🏽
From the start Earnest Capital has been 'by founders, for founders' with most of our capital coming directly from entrepreneurs. We're making some changes to our fund structure to double-down on that:
This week we hosted an open zoom for Earnest founders/mentors to hop in and share how COVID-19 is affecting their business and team and strategize on how they are responding to the situation. We summarized it here
Geographically we are a fascinating distributed community with founders in: Grand Rapids, Louisville, Orlando, Cape Town, NYC, Austin, Phoenix, Boulder, Philadelphia, Chiang Mai, Cardiff, San Francisco...
Ok, let’s try this again: we’d love to work with an up and coming designer to design a t-shirt/hat for Earnest swag. Reply with a link to your IG/Dribbble if interested.
Budget is $500 (negotiable) for one piece of art work with plenty more work in the future. 👇
We’re so excited to announce the *first ever* Webflow Partner Awards 🎉
Our Webflow Partners & Experts bring some of the most creative and impressive projects to life every day and we’re so proud to highlight their work!
Check out all the finalists:
Interesting. Our last email had a very low for us 45% open rate, so I did a one-time re-send to unopens. Looks like a lot of folks *did open & read* but Gmail has some new built-in pixel blocking now. Is this going to break stats on email marketing apps?
The evening was choose your own adventure. Options included a taco crawl around CDMX, female founder happy hour, LatAm founder happy hour and a Speakeasy tour. We don't try to pack a lot in! Ready for day 2!
I wonder how many solo founders out there would be able to launch a very profitable business, not with a large investment, but by having their essential bills paid for like a year or two 🤔
Very proud to lead this investment in
@endcrawl
. Awesome team with deep industry expertise, ran it as a bootstrapped side gig for 7(!!) years, can't wait to see them start cruising with full-time focus
The commonly cited 70% failure rate is only so high because founders and investors are trying to reach a certain scale in a certain amount of time.
If you are willing to spend 10+ years to build a sustainable business that matters, your odds of success go way up.
Stoked to learn on our weekly call that an Earnest company found an awesome new head of marketing—someone you wouldn't even guess it was possible to hire—via our newsletter. More interesting opportunities going out in the next one
As we hit 60 portfolio companies, we thought it was time for a little thread on some of the best tips we have for Calm Companies (and an exciting announcement) 🧵 1/7
Any investors out there want to be my go-to referral for companies doing $1m-10m ARR (we mostly focus on earlier) companies that fit our investment thesis and like the SEAL?
Lots of folks asking great questions about our investment model and the Shared Earnings Agreement. Some good background in this chat with
@mijustin
on funding for bootstrappers
More:
* One company increased monthly revenue by $13k MoM recently.
* One hit an all-time high of $30k in monthly revenue the 1st month the founder(s) went full-time.
* One hit $1m per month in GMV on their platform
* One was an Apple Editor's Choice
🎁 In the spirit of holiday giving, we’ve rounded up 30+ job openings from startups in our ecosystem (including some you won’t find anywhere else.)
💌 We’re sending the jobs via our newsletter in ~12 hrs! Want in? Signup now 👇🏽 or tag a friend looking 👀
First up, the newest milestone:
🎉 PushPress Raised an $11M Series A, led by
@altosvc
!
The funding allows the team to further deliver on the needs of fitness business owners around the world.
🏋🏼♂️
@pushpressapp
is an easy-to-use, intuitive gym management software.
PS: Special shout out to
@calmfund
and
@mucker
here - the first investors out there who aligned with our mission and gave us the initial spark which allowed us to stand up and take next steps monumentally faster
Thx to the (mostly female) founders who inquired about this ... (still to be 100% confirmed) but it looks like we will be able to arrange child care at the Founder Summit. More details soon but don't let that be a deal-breaker at this point 🙏
The magic of remote work (and grit): DeWayne is keeping his day job doing business development for Lambda School and working with us remotely and sometimes asynchronously from SLC 🙌
We do conferences a little different here at Calm Company Fund.
We kicked off
@foundersummit
last night with a stunning opening party. Still to come this week we've got founder runs, taco crawls, Mezcal, choc tasting...🤯
Good morning Mexico City!
Last night we had our opening night party at the beautiful
@FourSeasons
CDMX and someone just said "if the summit was just last night, it would have been worth coming"
We feel you... yet we've got soo much more to come.
If you share our belief that calm companies are the future, there's lots of ways to join us:
-Early-stage founders: apply for funding
-All founders: hang with us at
@FounderSummit
-Investors: invest in our Fund 4
-Operators + Angels: scout for us
Has anyone combined a revenue-based financing product with a marketplace for Saas businesses? 🤷♂️
e.g.
@earnestcapital
funds your purchase of a business on
@microacquire
, gets paid back on the loan plus a piece of upside profit growth for N years