Jan 2, 2019 · 25m · a16z
a16z Podcast | Using Social Tools to Build Homes for Those Most in Need
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In this episode of the a16z Podcast, host Michael Copeland speaks with New Story co-founders Brett Hagler and Alexandria Lafci about how their Y Combinator-backed non-profit applies Silicon Valley startup principles and transparent crowdfunding to construct permanent homes for families in post-disaster regions.
How this conversation actually went
Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. How this is scored →
The host as informed peer 2.4 Guest teaching 3.5 Guest disagreement 0.8 The host pushing back 1.1
speaking balance: gold is the host, purple is the guest (3 minute bins)
Sharpest disagreement ▶ 21:38 Addressing Traditional Non-Profit Shade
Brett Hagler firmly defends New Story's model against pushback from traditional non-profits, arguing that leveraging local partner channels and technology is demonstrably more efficient than incumbent methods.
Hardest push from the host ▶ 12:42 Challenging Overhead and Executive MisuseMichael Copeland directly challenges the guests on operational overhead and fiscal misuse, invoking the image of charity executives riding around in limos to demand proof of donor accountability.
Biggest teaching moment ▶ 8:16 Reframing Non-Profit Business ModelBrett Hagler dismantles the host's assumption that non-profits operate under a fundamentally different mindset, clarifying that their goal is to maximize revenue like any tech startup while distributing profits to beneficiaries.
The host holds their own ▶ 21:01 Probing Silicon Valley Technologist HubrisMichael Copeland demonstrates sharp domain insight into tech disruption dynamics, confronting the founders on whether established non-profit operators reject Silicon Valley figures attempting to fix complex global issues.
the scores for every segment, with the reasoning behind each
| Chapter | Topic | The host as informed peer | Guest teaching | Guest disagreement | The host pushing back | Why |
|---|---|---|---|---|---|---|
| Living Conditions in Haiti's Temporary Tent Slums | 1 | 4 | 0 | 0 | Copeland opens with broad origin questions, inviting the guests to elaborate on living conditions in Haiti. Hagler and Lafci educate the host on the extreme realities of prolonged tent living, such as blindness from heat and rain acting as a catastrophic event. | |
| The New Story Solution and Holistic Impact | 1 | 3 | 0 | 0 | Copeland prompts the guests to break down their model from funding to construction. Lafci uses her background as a Teach for America teacher to illustrate how housing stability directly impacts education, health, and economic mobility. | |
| Y Combinator and Non-Profit Startup Mindset | 2 | 4 | 1 | 1 | Copeland asks whether operating as a non-profit in Y Combinator created friction around business models. Hagler reframes the host's assumption, clarifying that their goal is to maximize revenue just like a tech startup, but distributing that revenue to families. | |
| How the Crowdfunding Platform and Home Building Work | 3 | 3 | 0 | 1 | Copeland asks practical operational questions about house costs, building standards, land ownership, and local utilities. Lafci explains their hurricane-resistant concrete specs and stresses the critical importance of family land ownership to avoid secondary displacement. | |
| Operational Transparency, Overhead Funding, and Accountable Impact | 4 | 5 | 2 | 4 | Copeland pushes hard on overhead transparency and accountability, referencing stereotypes of charity misallocation like Red Cross executives in limos. Hagler and Lafci detail their two-bank-account structure and highlight the Red Cross's failed $500M Haiti relief as an example of legacy inefficiency. | |
| Building Sustainable Communities and Early Milestones | 2 | 2 | 0 | 0 | Copeland asks for specific progress metrics in Haiti and whether homes are clustered in communities. Hagler and Lafci outline their 100-homes-in-100-days campaign outcome and describe the integrated community model in Levesque. | |
| Social Media Growth Mechanics and Local Partner Vetting | 4 | 4 | 2 | 3 | Copeland challenges the guests on potential failure points in microfinance and questions whether traditional non-profits resent Silicon Valley technologists offering solutions. Lafci and Hagler explain their partner vetting process and defend their digital channel approach against legacy non-profit skepticism. | |
| Overcoming Scaling Challenges and Future Expansion Plans | 2 | 3 | 1 | 0 | Copeland asks about operational friction between theory and practice as New Story scales. Lafci and Hagler explain their commitment to unscalable donor video updates and outline criteria for selecting their next country expansion. |
Statements from this episode (15)
Brett Hagler: New Story crowdfunds houses for families in danger globally
“So we, what we do is we crowdfund houses for families living in danger around the world.”
Brett Hagler: Haiti disaster relief tents remained occupied five years post-earthquake
“But they were only supposed to last for about four months. Turns out they've been around now for five and a half years.”
Brett Hagler: Permanent housing forms foundation for health, education, and income
“It was to simply take them out of that tent slum, bring them into a new community that immediately solves those dangers, and then actually becomes a platform or house becomes the foundation for really the three pillars that people get excited about, which is a…”
Alexandria Lafci: One-third of her Southeast D.C. students experienced homelessness
“So I was a Teach for America teacher. I taught in Anacostia, which is in Southeast DC. So my students, about a third of them at some point in the year they were homeless, if not for the entirety of the year.”
Brett Hagler: Non-profits should adopt the exact mindset of tech startups
“The way that organizations set up as far as how we set up our operations, how we set up our platform, how we set up for scale, our products, all those things is the exact same way that a for-profit technology company is set up. And we believe that's the best w…”
Brett Hagler: 100% of donor money goes directly to house construction
“A hundred percent of your donation goes to funding their home.”
Brett Hagler: A New Story home in Haiti costs $6,000 to construct
“One home costs 6000 dollars right now.”
Brett Hagler: New Story homes take 2.5 months using local labor
“Once the home is funded you then takes about two and a half months to build the home, which is all built by local construction workers.”
Alexandria Lafci: New Story builds homes meeting South Florida hurricane standards
“They're built to Miami-Dade County and Broward County hurricane standards, so they're built to last and withstand, you know, natural disasters that might continue to come to Haiti. They are 400 square foot homes and Yeah, built with concrete reinforced with st…”
Alexandria Lafci: Over 60% of New Story donors opt to fund operations
“Over 60% of our donors actually opt in to help fund our operations.”
Brett Hagler: Red Cross raised $500M for Haiti but built six homes
“The Red Cross, this is an article that came out a couple months ago. They raised what was called a half billion dollars for Haiti after the earthquake. And they made a lot of promises to build homes and things like that. And after five years, they've built six…”
Brett Hagler: New Story funded 100 homes in 91 days during YC
“We have funded now a 131 homes. During YC, we did this campaign we said, let's pick a crazy goal during YC, and so we said, we're going to try to fund a hundred homes in a hundred days, and, you know, we launched this campaign, and we got fortunate, and we did…”
Brett Hagler: New Story will build dozens of communities within five years
“And so you think like the vision going forward in five years, there will be, you know, dozens of new story communities around the world. And that you'll have, of course, the homes cause there's the foundation and you'll have a school, clean water and sanitatio…”
Brett Hagler: Birthday campaigns average 13 new donors with 20% virality
“Now on average, that campaign brings in 13 new people that are now new story donors and exposed to new story that we could have never reached. Right? And then the viral piece is 20% of them will start their own campaign.”
Brett Hagler: Non-profits should use partner channels like SaaS companies do
“It is efficient and it's scalable and it makes a lot more sense than to try to build your own in-house capacity to do these things. Collaborate, right? Like use partnerships, use channels, just like SAS companies do, right? Use channels to get the end product …”