Today we’d like to introduce you to Eric Dobson.
Hi Eric, we appreciate you taking the time to share your story with us today. Where does your story begin?
I began my professional career working in graduate school for the State of South Carolina in the Department of Natural Resources. After graduating with my doctoral degree, I transitioned to working for the federal government with the National Oceanic and Atmospheric Administration. I excelled at the work, but my entrepreneurial spirit would not let me be comfortable awash in a sea of bureaucracy. So, I started a consulting company that transitioned into my first entrepreneurial venture. Three companies later, one successful, one unmitigated disaster, and one side-ways exit, I joined Angel Capital Group, which had invested in my last venture. That started a new career for me and one I came to love. I was brought on board because the founder of ACG wanted me to perform investor due diligence on technology companies, presuming I knew where to look for the good, bad, and ugly aspects of these ventures. I took over the organization in 2015 and moved it towards a venture capital model to increase stability and create more impact. Seven years and 87 investments in 56 companies later, as well as two different mergers with other angel networks and the creation of several actual venture funds, we have arrived at a truly scalable and highly profitable model for entrepreneurs and investors. We have determined we want to invest in our communities across the heartland of America, where we find highly technical founders with great technology but some knowledge gaps. We have become adept at filling those gaps, turning inventors into successful entrepreneurs. We have enjoyed six exits between two and six times our invested capital in the last four years, and we have twelve pending exits that should generate between eight and twelve times our invested money in the next five years. Every community talks about a capital continuum, but very few outside the large coastal monetary centers have created such a continuum. Our model is very straightforward. We work with high-tech founders to become “investor-ready.” We then use our angel syndicate to accelerate these ventures and realize their true potential. Once that potential is validated, we use our venture funds to drive these companies to exit, creating wealth for entrepreneurs and investors.
I’m sure it wasn’t obstacle-free, but would you say the journey has been fairly smooth so far?
No, it has not been smooth, but it has been a fun ride. The private equity market has volatility predominantly because the macroeconomy can have suddenly and profoundly impact its operations. The Great Credit Contraction impacted the industry for several years, COVID almost destroyed the industry, and the recent upheaval with inflation had a significant impact. This is all going on as we try to support our portfolio companies and find new, outstanding opportunities in which to invest. We are constantly recruiting investors for the angel syndicate and the venture funds. The good news is that we have proven that we have staying power, created a robust portfolio of companies in the fly-over parts of the fly-over states, and proven what we always believed to be true. The heartland is an untapped and uncorrelated resource of outstanding cleantech, deep tech, hard tech, medtech, advanced manufacturing, advanced materials, AI, SaaS, and Fintech ventures. I believe we can safely say our model is working.
Can you tell our readers more about what you do and what you think sets you apart from others?
I have the greatest job on the planet. I work directly with successful business people and exciting high-tech startup entrepreneurs/companies. I unite them to create incredible companies that will someday be household names and create wealth and economic development for our communities. I am the Managing Partner of Community Equity Partners and the Sheltowee Venture Fund II. CEP is a syndicate of angel groups with expanding chapters across Tennessee. I spend my days seeking investors who want to give back to their communities and create great companies. And, I seek great teams with grand plans that wish to use capital to scale their companies. We research these companies and help structure deals between our investors and the most worthy startup companies. Then, we work with companies in our portfolio to help them access resources and grow. Finally, we help them find an appropriate exit to create life-changing wealth for entrepreneurs and investors. I am proud of the companies we have helped form, grow, and impact lives. Nothing is more gratifying than seeking a product save lives or improve the quality of life for those suffering from illness and knowing that we had some part in moving a product into market.
Networking and finding a mentor can positively impact one’s life and career. Any advice?
First, have a great idea with a rudimentary plan that addresses a real problem and impacts lives and industries. Second, learn how to convey that vision succinctly and lead with it. This is the only joke in the world where you tell the punchline first. People invest in people in markets they like and understand. Startups are complex and risky. You must appeal to an investor or mentor’s emotional side first to convince them you are a worthy use of their time as a subject matter expert and “smart money.” The rest of the information is used to justify a decision already made. If you can make an investor say, “Wow, that is cool,” then you are 80% of the way to an investment. The same is true of mentors. People buy-in to you because of why you do something, not what you do or how you do it (a la Simon Sinek). Learn to talk about your “why” first and with passion. Help others see your vision. They will either engage, refer you to someone who will, or walk away.
Pricing:
- $20,000 – $400,000 annually
Contact Info:
- Website: www.communityequitypartners.co
- Facebook: https://www.facebook.com/cmtyequitypartners
- Linkedin: https://www.linkedin.com/company/831505/admin/feed/posts/
