Michele Romanow, co-founder of Clearbanc, discusses geographic inequality in VC funding, citing Bloomberg data to highlight how traditional VCs fail to reach founders outside major tech hubs.
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“And there was actually nine states in America where there was zero dollars in venture funding. There was no companies that got venture funding.”
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More from Michele Romanow
AssertionPartly supported
Romanow: 40% of venture capital goes directly to Google and Facebook ads
“40% of venture capital dollars that are raised today end up going straight to Google and Facebook ads.”
Michele RomanowMay 10, 2019▶ 8:1320VC: Clearbanc's Michele Romanow on Why 40% of VC $ Raised Today Goes To Google and Facebook, How To Create A Financing Mechanism For The Repeatable Parts Of Your Business & Why We Need To Stop Celebrating Fundraises
Insight
Romanow: Scalable growth channels should be funded with debt, not equity
“VC is true risk Capital. This, you know, zero to one risk that we describe. If you are building a crazy piece of AI and need 50 engineers or solving a disease, VC is the perfect fit for you. What I'm saying is, ClearBank, we're like, if you know that channels …”
Michele RomanowMay 10, 2019▶ 14:1920VC: Clearbanc's Michele Romanow on Why 40% of VC $ Raised Today Goes To Google and Facebook, How To Create A Financing Mechanism For The Repeatable Parts Of Your Business & Why We Need To Stop Celebrating Fundraises
Insight
Romanow: Funding celebrations glorify founders giving up 30% of their companies
“It's actually celebrating founders giving up a piece of their company, often a very large piece, 20 to 30% around, and giving up control of their companies.”
Michele RomanowMay 10, 2019▶ 15:4720VC: Clearbanc's Michele Romanow on Why 40% of VC $ Raised Today Goes To Google and Facebook, How To Create A Financing Mechanism For The Repeatable Parts Of Your Business & Why We Need To Stop Celebrating Fundraises
PredictionNot checkable as stated
Romanow: Alternative financing will enable founders to retain 50% equity at IPO
“You know, I think we win when five years from now, founders are going public, and they're back to owning half their companies again, and there will be no greater source of pride.”
Michele RomanowMay 10, 2019▶ 27:2520VC: Clearbanc's Michele Romanow on Why 40% of VC $ Raised Today Goes To Google and Facebook, How To Create A Financing Mechanism For The Repeatable Parts Of Your Business & Why We Need To Stop Celebrating Fundraises
AssertionNot checkable as stated
Clearbanc funds ad spend cheaper than equity to preserve founder ownership
“We can fund that for way cheaper than equity can, and ultimately that means that founders will be able to keep way more of their companies by the time they go public.”
Michele RomanowMay 10, 2019▶ 9:2320VC: Clearbanc's Michele Romanow on Why 40% of VC $ Raised Today Goes To Google and Facebook, How To Create A Financing Mechanism For The Repeatable Parts Of Your Business & Why We Need To Stop Celebrating Fundraises
Disclosure
Romanow: Clearbanc Funded Eight Times More Female Founders Than VC Average
“And so, when I pulled our numbers, like, we funded eight times more women than industry average.”
Michele RomanowMay 10, 2019▶ 19:0820VC: Clearbanc's Michele Romanow on Why 40% of VC $ Raised Today Goes To Google and Facebook, How To Create A Financing Mechanism For The Repeatable Parts Of Your Business & Why We Need To Stop Celebrating Fundraises
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