Todd Ventures

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I have been talking and brainstorming about Todd Ventures for some time because I was trying to figure out the best way to accomplish the goal of funding black business, by black people, without begging white people or the government.  The fact of the matter is that black business owners need funding to start or expand their operations. That funding can come in two ways, charity, or investment.  We need to start aggressively backing black business because black business equals black jobs and black jobs equal black families and healthy black communities.  

That said, I am an investor and I believe that people should get a return on their money that is greater than a sense of fulfillment especially when they are using your money to generate money for themselves.  Your kids can’t inherit your sense of fulfillment because there is no ROI.  I am heavily against putting money into things that provide no return and lack capital preservation.  As a culture we just aren’t there yet.  You work and then you play.

It is not the job of outsiders or even the government to solve our problems.  I KNOW that we are the solution. That is what Todd Ventures is.  Allow me to explain.

GoFundMe and Kickstarters are selfish

I am tired of seeing GoFundMe’s and kickstarters.  Not that we shouldn’t support each other, but I feel like we need to keep it business.  Too often the fundraising efforts are one sided where you give and they benefit.  I think that there is a better way.

Just recently I have seen GoFundMe’s for some noble ideas. One guy is starting a grocery store, another person is “buying back the block” and someone else is starting a group for girls.  These are all great ideas and I 100% support the idea.  On the other hand, we see GoFundMe’s for nonsense. Most recently the Dilivert guy started a campaign to pay off a law suit judgment.  This is getting out of hand.

Your supporters and investors should not merely support you out of the goodness of their heart.  It is important that they have a stake in your success.  This is something I touched on in a prior article (see Invest in Your Friend’s Business).  This is why I created Todd Ventures, which is equity based crowdfunding and venture capital.  This means that your contribution also grants you ownership in that business.  (Group Economics, 101).  Own, or be owned.

How Todd Ventures Works

Todd Capital, the organization, is all about crowdfunding with equity and now we are going to do this for small businesses and start ups. Why crowdfunding?  Because most of us aren’t sitting on millions, but all of us are sitting on money that adds up to millions.  We have seen it via Todd Capital and the chunky acquisitions we are able to make because a lot of people pooled together a little.

Todd Ventures is essentially the same thing that people are already doing with the charity fundraising but now they are investors not merely donors.  Every dollar you invest is a portion of that persons company. For example, similar to Shark Tank, a business owner will offer up say 20% of their company for $10,000.  We then crowdfund that $10,000 and we kill two birds.  The business gets their funding and you now own something that can appreciate in value, pay monthly, quarterly or annual dividends and is also a marketable security.

As we grow, these deals can and likely will, get more sophisticated but at the end of the day it’s all dollars and cents.  Dollar and cents that our black business and our communities desperately need.  As I said above, we need to start aggressively backing black business because black business equals black jobs and black jobs equal black families.  It is a long chain that can only exist with flourishing enterprise and that can be stunted without it.

I am sure there are a ton of people reading this and thinking it can’t work because it doesn’t already exist.  But I am tired of seeing all the ideas I talked about with my friends (instagram, snapchat, uber, etc) being executed on by other guys when we had the idea first.  Wealth comes from creating that which does not exist not in hopping on the band wagon after then talking about how you knew it was a good idea.  Mere talk leads only to poverty.  The key is to have faith in your imagination and execute, NOW, not later.

Everybody Eats 

The Todd Ventures equity based crowdfunding helps both parties.  On one hand, it will help teach people how to be investors and expect a return.  On the other hand, it will more than likely result in more money being poured into YOUR venture because people aren’t merely giving you charity but they are helping you build and making an investment. People tend to give you more when it is an investment as opposed to charity.  Everyone wins.

If this works out as I have planned, it could really be a game changer for all things black business.  We have so much money and resources we just have to steer it into the right avenues.  Rich people buy assets, and poor people buy liabilities that they think are assets.  For far too long we have been the latter when we are more than able to be the former.  Think about it.  The structure of this club will be exactly how we operate the investment club with $100/month.  There are so many businesses that need our funding.  The sooner we get started the sooner we can expand.  

If you are interested in getting in on the ground floor with Todd Ventures, email info@capitaltodd.com 

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