In Episode #320, Nathan interviews Lance Mysyrowicz, the founder of Boost&Co. Lance is an investment fund manager who specialises in European startups. He currently manages over $150 million in assets. Listen in to hear about Lance’s latest investment, the details of early investment in tech startups, and what interest rates you could expect for your startup.
- Favorite Book? – Behind the Cloud
- What CEO do you follow? — Elon Musk
- What is your favorite online tool? — Evernote
- Do you get 8 hours of sleep?— No
- If you could let your 20 year old self know one thing, what would it be? —I wish I knew what makes me happy today – spending time with people I love, and the things I love doing
Time Stamped Show Notes:
- 01:08 – Nathan’s introduction
- 01:36 – Welcoming Lance to the show
- 01:50 – Boost&Co lends money to companies earlier in the process than banks
- 02:20 – They sit in between VC and banking as an investor
- 02:55 – Have loaned $120 million to over 100 business
- 03:43 – Last company was a SaaS firm called Idio that lets people track what’s being read on a web page
- 04:50 – Have invested around $1.75 million in Idio
- 05:00 – Make money in three different ways: a 1-2% fee; an 8-12% interest rate on outstanding capital; and a warrant – a right to buy shares at a specific price
- 05:50 – The warrant includes a negotiated strike price
- 07:05 – What happens on a $1 million deal?
- 08:00 – A management fee comes from the investment fund – it’s 2% of the assets they manage
- 09:12 – Why charge a fee?
- 10:31 – Interest rates are determined by the revenue and size of a company
- 11:25 – Interest is paid every month and a small amount of capital is repaid
- 13:15 – “I would always prefer to do a smaller deal and have a smaller risk exposure”
- 13:48 – Is this the same as mezzanine finance?
- 14:06 – Connect with Lance on Linkedin
- 16:10 – Famous Five
3 Key Points:
- There are multiple pathways to getting a loan as a startup – through VCs, banks, or a halfway step like Boost&Co
- Expect to pay a fee, interest, and to offer a warrant to buy shares
- As an investment fund manager, Lance tries to limit his exposure to risk as much as possible.
- Host Gator – The site Nathan uses to buy his domain names and hosting for cheapest price possible.
- Freshbooks – The site Nathan uses to manage his invoices and accounts.
- Leadpages – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+
- Audible – Nathan uses Audible when he’s driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.
- Show Notes provided by Mallard Creatives