Our Thesis: We can create higher returns by focusing on the pre-founder stage.
Theres currently a founder shortage.
Why are there not more founders in the market? If we average out the value created by founders what would be the average return on their time? Building a startup is seen as a risky path. One where Delegate capital is a direct approach of investment into value creators. Rather than the approach taken in Venture Capital where a premium is placed by the Entrepreneur who pitches the idea for seed capital, where a substantial amount of wealth is captured as the proponent of the idea. We at Delegate Capital take a new approach. We invest in potential founders at the pre-founder stage where their idea is still being formulated and the idea of receiving a 6 figure salary to work on a startup they own 10% of is more attractive than a 6 figure salary by itself. We are betting on the founder class who may not be privileges enough to have taken the leaps of faith in spending time on an idea, while also providing our expertise and ecosystem of mentors and other founders. We are providing sustainability and scale to great minds who may not take the leap without a system like this. To still claim the positive effect of the Entrepreneur having full passion into the idea, a vesting agreement where the founder can have substantial ownership is set in place. We connect the founders with mentors where we set up documents for basis points for mentors, with the promise of them taking on the main stake of their future startup, by proving their business acumen in a no-risk, less stress structure for them.
Entrepreneurship is the act of converting capital into labor in to create more value long term.
As entrepreneurs, when something needs to be done, there’s a temptation to just roll up our sleeves and do it.
If you want something done right, you need to do it yourself. Right? WRONG. Very wrong.
Trust me, I learned this lesson the hard way and it put a cap on my business scalability (and hence income) for a long time.
You need to understand that business is a team sport. And like any team sport you need different skills within the team. Here are the three roles you need to make your business to succeed.
The first is the Entrepreneur. They’re the ideas person or visionary. They’ll see a problem or gap in the market and think, Hey, I can solve that problem for a profit. I can bring value to the market, and so they do.
Entrepreneurs aren’t afraid to take risks. They drive the vision and the ideas. They inspire people, they create products, and love creating the future. They’re absolutely critical.
This is likely who you are and it’s certainly who I am. So it’s likely you have the entrepreneur role in your business well covered.
The next role you need is the Specialist. They take the entrepreneur’s vision and help make it a reality. They could be an engineer, or a venture capitalist, or a web developer, or anything else with a unique skill. They essentially take your idea and help make it a reality. Sometimes the entrepreneur and the specialist can be the same person.
The last role you need to create a successful business is the Manager. They make sure that work gets delivered and that the vision is on track. They ensure that staff are doing what they should be doing and that customers are being taken care of.
This is the stuff that entrepreneurs typically hate and get bored with quickly (and hence don’t do) and then the wheels start to fall off.
Do you enjoy creating and following checklists, handling HR, dealing with support issues?
I didn’t think so…
But guess what, manager types love this kind of work.
If you don’t have this role in your business, it’s going to put a very firm lid on your scalability.
Conversely, a good operations manager will change your life.
Your manager allows you to become the rock star who shows up on stage to do the show. You get all the applause and then leave the crowd cheering.
However, it’s your manager who is there with the whole crew before the show setting up and after the show packing everything up.
Managers are a crucial element in your people strategy.
In the words of the late, great Jim Rohn, “Getting the right people in your business to work together is a lot like herding cats. But when you get them to all work together, it’s magic!”
Delegate capital is a unique approach of focus on capital into value creation. Rather than the approach taken in Venture capital where a premium is placed by the Entrepreneur who claims the idea. Where we believe a substantial amount of wealth is captured by the proponent of the idea. We at Delegate Capital take a new approach.
There is a single skill that we max out in and impose upon our projects that make us win at turning capital into value. Resourcefulness. This single skill is everything when it comes to curating a business.
Through our resourcefulness comes an innate frugality. Using our resources to their fullest potential, creating schemes of value creation for a lower cost than anyone else, with a love for systemizing and automating processes.
When it comes to partnering and structuring deals in business our unique value proposition places us into a separate field than most operators.
Our deal flow comes externally and internally and is sweeter than others because of…. RESOURCEFULNESS.
We believe human labor around the world to be highly competitive, with top 1% talent residing in bottom 20% cost of living areas. By focusing on these recruiting methods, we are able to then offer salaries of 20k a year, for talent who would otherwise cost 200k in silicon valley. This delta provides more than just its 90% decrease in cost.
In order to put this into perspective
As many understand in the difference between a small salary
By claiming the frame in the business structure and having the Entrepreneur hired as an employee of the business, you keep equity in exchange for staking a salary claim on the critical thinking and growth abilities of the Entrepreneur. To still claim the positive effect of the Entrepreneur having full dedication into the idea, basis points will be given as well as the connection to our larger business structure and mentors, with the promise of them taking on the main stake of their future startup, by proving their business acumen in a no-risk, less stress structure for them.