The Anti-VC VC: Nick Ehret Reveals How to Fund Founders the RIGHT Way – No BS, No Predators, Just Real Wins!
I’m thrilled to share the latest episode of our podcast with you. This time, I had the pleasure of sitting down with Nick Ehret, the Managing Partner and CFO of Hill Capital Corporation. Nick’s journey from a small town in Minnesota to launching a breakout growth fund is nothing short of inspiring. Here are some of the key takeaways and intriguing insights from our conversation:
🌱 Nick’s Humble Beginnings
- Small-Town Roots: Nick grew up in Lisle, Minnesota, a town of just 550 people, where he developed a strong work ethic working on farms.
- Education: He attended Saint John’s University, majoring in accounting, and fondly recalls the supportive community and professors.
💼 Career Path
- From CPA to Entrepreneur: Nick started his career at KPMG but soon realized his passion lay in private investing and working with entrepreneurs.
- Hill Capital’s Mission: Launched in 2018, Hill Capital bridges the gap between traditional bank loans and venture capital, targeting companies in the middle of the risk and return spectrum.
💡 Unique Investment Approach
- The “Hill Note”: Hill Capital uses a unique investment structure that blends aspects of venture equity and bank debt, focusing on businesses with $1 to $5 million in revenue.
- First Investment Success: Their first investment in Cachet Software exemplifies their mission, providing non-dilutive capital that allowed the founder to retain ownership and grow the business.
🤝 Beyond Capital
- Community and Support: Hill Capital offers more than just funding. They host “Empire Builders” events and the Hill Capital Summit to foster peer learning and connections among entrepreneurs.
- Hands-On Approach: Regular monthly meetings with portfolio companies ensure ongoing support and strategic guidance.
🔍 What Hill Capital Looks For
- Founder’s Character: Resilience and grit are paramount. They seek founders who can persevere through challenges and have a sustainable, scalable business model.
- Financial Discipline: Understanding cash flow management is crucial for long-term success.
🏆 Leadership and Legacy
- Delegation: Successful founders can delegate effectively, allowing them to focus on growth.
- Positive Impact: Nick’s definition of success revolves around building lasting relationships and having a positive influence on people’s lives.
📈 Emerging Trends
- Longer Timelines to Liquidity: The trend of companies delaying going public is reshaping the venture capital landscape, extending the typical timeline for exits.
Nick’s journey and insights offer a wealth of knowledge for entrepreneurs and investors alike. I hope you find this episode as enlightening and inspiring as I did. Tune in to hear the full conversation and dive deeper into the unique world of Hill Capital Corporation.
P.S. Don’t forget to check out the show notes for more details on Nick and Hill Capital Corporation. Happy listening! 🎧
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