KEYWORDS: Startup, Venture Capital, Bootstrap, Unicorn, VC, Seed Capital, SAFE, Convertible Debt, JD Morris, Red Hook Capital, RHC,
FORBES REPOST: Seeking Capital For Your Startup? Remember: It’s About Returns For Your Investor by JD Morris
One of the most daunting tasks you are likely to face after having successfully founded a growing startup can be securing enough capital to pay the bills until the expanded operations begin to pay for themselves. Startups seeking funding for their expansions have a number of options for securing capital, but you still need to convince investors that your business is worthwhile as an investment. An understanding of the funding landscape will help hone your sales pitch and increase the odds of a successful capital campaign.
Unfortunately, the American business ideal of steady growth over the long term has been replaced in the minds of many entrepreneurs by dreams of founding a unicorn company that explodes onto the scene and cashing out through an initial public offering. Startup founders need to keep in mind that the likelihood of founding a unicorn is incredibly small, but there are other successful strategies for rapid growth using outside capital. Those strategies should be centered on producing a high company valuation and creating significant wealth for yourself and your investors.
LINKEDIN PROFILE: https://www.linkedin.com/in/admin4jdm/
Mr. Morris (JDM) focuses on serving on the board of advisors and board of directors of several private companies. His family of Special-Purpose Vehicle (SPV) invests in a wide range of businesses. JDM has helped close more than $91 billion in deals—leading more than $7 billion in enterprise value of these deals.
He has been a speaker at various industry forums, has been quoted in numerous leading publications, and has made several appearances on Bloomberg, CNET, CNBC, ESPN, and many media outlets. Mr. Morris hosted an educational radio show about financing deals and other hot topics after Bloomberg morning news.
Mr. Morris received a B.A. in economics with mathematics from Hampden-Sydney College in Virginia, where he worked in the development office to pay his way through college. He is an Omega Rho Honor Society student in Washington, D.C., with The George Washington University (GWU). JDM is currently working on finishing a program under MIT Sloan Business School, as well as the MIT Computer Science & Artificial Intelligence Laboratory (CSAIL) in two years.
WHAT PEOPLE ARE SAYING ABOUT J. MORRIS
Mr. Morris was able to close a difficult international backbone financing for a start-up company for $20.0 million. Dealing with the uncertainties of Brazilian government regulations, tight emerging capital markets, and choosy investors, he raised this equity capital when no other advisors were able to even look at the deal. He is highly qualified and capable.” – President & CFO of NASDAQ that he lead the IPO (Update: Retired early and does what makes him happy).
“He is first-rate, good ideas all the time and honesty all the way. Work with the Man.” – Former acting Secretary of the US Air Force (Update: Chairman of a fund of funds).
“Mr. Morris has a gift of connecting the right people at the right time. His Investor Network has a wide range of executives and family offices that have been very helpful to me in my ventures and life” – Founder & former CEO of Tarana Wireless (Update: Active investor and close to exit with Tarana).
“I have worked with him on several acquisition transactions. I have always found him to be professional and timely. Mr. Morris delivers what he says he will in the right time frame. When he is an advisor, as opposed to the principal, he seems to have a knack for getting the two parties together. When the principal, he gets his deals done.” – Partner of Nelson Mullins and reconnized by rewards as top M&A lawyer for DC metro area.
“Mr. Morris has been a great resource in helping me learn the ins and outs of raising capital. Every opportunity that I raise capital for, I look to JD for his guidance. His relationships with investors are enormously valuable. Additionally, he has graciously allowed me to speak on his radio show which gave my venture at the time great exposure. Thanks.” – Former Media Consultant to Fortune 100 companies and serial entrepreneur (several exits).
“I have known Mr. Morris for several years and am consistently impressed with his energy and contact base. He is well connected to the VC Community and maintains relationships with the top management of many local and regional companies. He has an excellent track record of raising capital and of advising companies wishing to do so.” Consultant to Fortune 500 companies (Update: retired or does what makes him happy).
“I’ve had the pleasure of working briefly with Mr. Morris on two projects and being in a finance industry group with him. He has a combination of finance and LBO expertise, analytic skill, business connections and enthusiasm that would make him a valuable asset to most corporate or advisory boards.” – Bay Area CPA and former FENG leadership.
“Mr. Morris has a wide source of contacts for funding. He finds the best source of capital for a particular company’s financing needs and knows how to structure the deal. He is creative, enthusiastic, and easy to work with. I am happy to recommend him to my clients and others.” Former Partner at Akerman Senterfitt LLP.
ABOUT RED HOOK CAPITAL
ABOUT RHC’S EBITDA FUNDS & SPECIAL PURPOSE ENTITIES (SPV/SPE)
We provide creative capital, structured for each investment opportunity. Our wealth of experience, industry expertise, deep operating skill sets, and large global network of affiliated partners position us as a vital resource from which management can draw strategic, financial, and operational guidance. RHC invests in companies across a broad range of industries and geographies. Our goal is to help management teams build long-term value that benefits all stakeholders. We structure our private equity investments based on each company’s circumstances and generally seek to invest in established businesses requiring equity capital between $10 million and $1 billion. Red Hook Capital maintains a broad acquisition profile focused on acquiring businesses with its equity partners that exhibit a certain set of characteristics:
> fragmented market
> recurring revenues
> loyal customers
> strategic complements to our portfolio
This acquisition profile enables us to identify opportunities for creating value in virtually any industry.
ABOUT RHC’S HYBRID FUNDS AND SPECIAL PURPOSE ENTITIES (SPV/SPE)
We are launching a hybrid fund that will allow accredited investors to pledge an amount of capital. More to come! Below are SPV investments through co-investing with venture capital funds:
BrightInsight 1q2021 (Co-Invested in deal with other VC firms such as Eclipse Ventures, General Catalyst, Insight Partners, New Leaf Venture Partners, & Proof.VC as share holders)