In this compelling episode of Raw and Real Entrepreneurship, Susan Sly sits down with Gregory Shepardโfounder of BOSS Capital Partners, serial entrepreneur, and author of The Startup Life Cycle. Drawing from his groundbreaking research, which includes interviews with 1,200 founders, Gregory reveals the critical phases where startups are most vulnerable and shares actionable strategies for navigating these challenges to achieve a successful exit.
Together, Susan and Gregory tackle systemic biases impacting women and marginalized founders, discuss the resilience required to overcome these barriers, and highlight the importance of celebrating small wins along the entrepreneurial journey. From marathon swims and shark dives to Gregoryโs upcoming ticket to space, they also reflect on pushing boundaries and embracing fearless leadership. This episode is a must-listen for entrepreneurs looking to grow both personally and professionally.
Topics Discussed In This Episode:
- Gregory’s Recent Adventures and New Book Focus
- The Inspiration Behind “The Startup Life Cycle”
- Challenges Faced by Women and Minority-Led Startups
- The Role of Validation and Celebrating Small Wins
- Dealing with Setbacks and Iterations
- The Importance of Grit and Resourcefulness
- Gregory’s Future Adventures and Space Travel
About Gregory Shepard:
Gregory Shepard has built and sold 12 businesses in BioTech, TransitTech, AdTech and MarTech. He is a Forbes book author and contributor, and has been featured or quoted in publications like Fortune, Entrepreneur, The New York Observer, The DEAL, and Thrive Global. A recipient of four private equity awards for transactions between $250M to $1B, Greg has appeared on TV, radio, and popular podcasts, and been featured as a TEDx and keynote speaker at multiple universities and conferences worldwide.
Connect with Gregory:
Website: http://www.gregoryshepard.com
LinkedIn: @gregshepard/
Book: https://www.amazon.com/Startup-Lifecycle-Definitive-Guide-Building/dp/1637744323
About Susan Sly:
Susan Sly is the maven behind Raw and Real Entrepreneurship. An award-winning AI entrepreneur and MIT Sloan alumna, Susan has carved out a niche at the forefront of the AI revolution, earning accolades as a top AI innovator in 2023 and a key figure in real-time AI advancements for 2024. With a storied career that blends rigorous academic insight with astute market strategies, Susan has emerged as a formidable founder, a discerning angel investor, a sought-after speaker, and a venerated voice in the business world. Her insights have graced platforms from CNN to CNBC and been quoted in leading publications like Forbes and MarketWatch. At the helm of the Raw and Real Entrepreneurship podcast, Susan delivers unvarnished wisdom and strategies, empowering aspiring entrepreneurs and seasoned business veterans alike to navigate the challenges of the entrepreneurial landscape with confidence.
Connect With Susan:
Website: https://susansly.com
Website: https://thepause.ai/
LinkedIn: @susansly
Listen to other great episodes ofย Raw and Real Entrepreneurship.
Susan Sly 00:00
Susan, here. I want to welcome you to Raw and Real Entrepreneurship. This is the show where I cut through the noise for you. I bring you guests with insight, wisdom, and both the founder and funder perspectives. My guest today is someone who has been on the show before, and weโre circling back with him.
He has had 12 successful startup exits, is a lifetime entrepreneur, and a funder who brings both sides to the equation. His most recent book, The Startup Life Cycle, is profound. I love this book. Itโs the best book Iโve ever read on entrepreneurship and startups. He interviewed 1,200 founders, spent half a million dollars of his own money, and developed the seven phases illustrating where startups are most vulnerableโand what founders can do to refine their work and soar toward the holy grail: the exit.
In addition to his exits, heโs been a TEDx speaker, an amazing and sought-after board member, and an incredible resource. He is proudly neurodivergent. Weโll discuss what itโs like to be discounted and why founders who were bullied or marginalized may face more challenges. But, as my guest explains, they can adapt and soar.
Without further ado, my guest today is the amazing Gregory Shepard.
Voiceover 01:56
This is Raw and Real Entrepreneurshipโthe show that brings you the no-nonsense truth of what it takes to start, grow, and scale your business. I am your host, Susan Sly.
Susan Sly 02:07
Well, Gregory, welcome back to the show. And candidly, for all the listeners around the world, we were having such a great time chatting that Gregory said, โAre we going to do the show?โ I was like, โOh my gosh, we need to get started!โ
Last time you were here, you hadnโt written your new, amazing book that Iโm fangirling overโThe Startup Life Cycle. You were already advocating for founders, especially those who may look or think differently. Iโm calling you an angel and a ray of light for people who second-guess themselves in starting companies.
Letโs catch up. What have you been up to in the last year? And I understand this includes diving with sharks without a cage!
Gregory Shepard 03:09
Yeah, yeah. Well, in the book, I talked about the marathon swimโI finished that. Then I thought, since I was already comfortable with the water, Iโd try shark diving. It was an amazing experience that gave me newfound respect for sharks as a species. Theyโre a lot less threatening than I originally thought.
That was fun, and Iโve also been working on my next book. It focuses on the financial aspects of funding and capital, overlaying them into the founderโs life cycle. After writing the first book, I got feedback from founders, particularly those who are less fortunate or marginalizedโpeople whoโve been passed over or stepped on. Their biggest problem, they said, was capital. So I thought, โOkay, Iโll write a book about funding and capital as it pertains to different stages of the life cycle.โ
Susan Sly 04:48
I love how your brain worksโalways thinking, โWhatโs next?โ I resonate with that. But I need to go back for a minute: what kind of sharks were you diving with?
Gregory Shepard 05:08
Blacktip, tiger, and Galapagos sharks. It was crazy. I was swimming down to get closer to a tiger shark, and because of the goggles and water distortion, I didnโt realize how close I was. The shark was swimming up, and we got really close. Tiger sharks are more aggressive, and this big mama looked me in the eye.
At that moment, I realized, โHoly shit, Iโm too close.โ But you canโt swim away, or you look like prey. So, I had to back off slowly. My heart was racing, and I thought, โThis shark can probably hear it.โ Eventually, I got out of the water and back onto the boat.
Susan Sly 06:10
You know, Gregory, youโre one of the most fearless people I know. The last time you were on the show, you talked about the โLaw of the Rattlesnakeโ and selling rattlesnakes. You even realized, โOh, rattlesnakes have babies, so I could sell moreโโuntil your mom shut down that business! But most people arenโt out there free-swimming with sharks or picking up rattlesnakes. Where does your fearlessness come from?
Gregory Shepard 06:46
I think itโs part of my diagnosis. I did this test at a university where they scanned my brain and showed me different pictures. The images that most people found scary didnโt register with me at all. In fact, when others felt fear, I got interested.
Susan Sly 07:16
Wow.
Gregory Shepard 07:18
I think itโs biological. I just donโt have that fear response unless something gets really scary. It has to be pretty extreme. For example, I tried BASE jumpingโit was thrilling for a few seconds, and then it became boring.
Susan Sly 07:37
Thatโs fascinating. It reminds me of my early career. Right out of college, I worked for federal corrections in Canada. I started as a menโs maximum-security prison guard and eventually transitioned to the psych testing unit. My undergrad degree was a Bachelor of Science in Psychology, so I administered tests like the Rorschach inkblot and image association tests.
It was fascinating to observe how differently people thought. Since this is Raw and Real Entrepreneurship, Iโll share candidly: interviewing men entering the prison system gave me insight into their thinking. Many werenโt diagnosed back thenโthis was โ92 or โ93. With proper support systems in school, their lives could have been different.
I remember one guy saw a carrot and said โdiamond.โ Most people would say โrabbit.โ It was such a unique way of thinking, and it relates to what youโre saying about thinking differently and applying that to business.
By the way, for anyone listening, Gregory didnโt ask me to say this, but his book is incredible. Iโve read countless books on startups and entrepreneurship, but The Startup Life Cycle is the most logical, heartfelt recipe for success Iโve encountered. You spent $500,000 of your own money and interviewed 1,200 founders. What inspired you to take on such a massive project? Most people write a book with minimal researchโthis clearly took years.
Gregory Shepard 09:36
Initially, after my last exit, I went into politics. I chaired campaigns for congressional candidates, focusing on getting women and people of color into Congress. I also worked to redirect government funds into startups.
The problem was 90% of startups were failing, and that failure rate had been consistent for 35 years. When I asked about funding startups, I was told, โWe canโt because theyโre too risky.โ So, I asked, โWhat if I figure out how to reduce that failure rate?โ They agreed to consider it.
I realized I couldnโt help founders from the top down, so I decided to help from the bottom up. I gathered data, conducted research, and wrote the book. Then, I created the Startup Science platformโa free, on-demand resource for founders.
My goal was to make it accessible, especially for people like me who are neurodivergent. I struggle to readโI canโt even read my own book. My wife read it to me over 100 times to help. Between her and text-to-speech software, I got through it.
I thought, โIf I can achieve private equity awards for deals between $250M and $1B despite my challenges, then others can too.โ But I also recognized the unique barriers others faceโwhether itโs discrimination, lack of resources, or growing up without exposure to entrepreneurship.
For example, kids in professional families hear about business at the dinner table. But what if you donโt even have a dinner table?
I wanted to create a safe, independent learning environment where anyone could access basic, logical, step-by-step guidance. By doing this, I hoped to drive social and environmental change because startupsโnot corporationsโcreate the future.
Susan Sly 11:55
Thatโs such an important point.
Gregory Shepard 11:57
Exactly. Startups innovate. Corporations donโt. They just acquire innovation. Everything from the podcast platform weโre using to your MacBook and phoneโall of it came from startups.
So, I thought, โIf I want to drive social and environmental impact, I need to help startups succeedโand make the knowledge accessible to everyone, regardless of their background or resources.โ Thatโs been my mission from day one.
Susan Sly 13:45
When we look at the failure rateโand weโll get into the data, because I know your love language isnโt just swimming with sharks; itโs data and spreadsheets, like meโsomething stands out. Women-led startups receive less than 2.5% of funding from traditional Silicon Valley VCs, and that number actually decreased last year. For women like meโbrown womenโitโs even lower.
Yet women-led startups are 68% more profitable in their first two years than male-led startups.
Gregory Shepard 14:26
And they fail less, too.
Susan Sly 14:28
Exactly. Letโs dive into that data. One reason you wrote your book was to highlight the potential of overlooked populations. What did the data reveal? Were there any surprisesโor perhaps illuminationsโabout women-led or minority-led startups?
Gregory Shepard 14:57
When I conducted the interviews, I spoke with thousands of peopleโ4,867 accelerators, 1,100 investors, and at least 1,200 founders, though I lost track of that number. These were recorded sessions that I translated and analyzed using AI to extract sentiment, which helped me understand what people meant, not just what they said.
What stood out was when I asked investors, โHow many women, Black, brown, or Indigenous founders are you funding?โ Their response was often, โWe donโt see the deal flow.โ
But the data contradicted that. It showed the deal flow was there, and in fact, there were more deals coming from non-white men than from white men. So, either they were lying, or they just didnโt realize they were seeing these deals.
Susan Sly 15:47
Thatโs frustrating.
Gregory Shepard 15:48
It was. When I asked, โWhy arenโt you funding these groups?โ theyโd repeat, โWeโre not seeing the deal flow.โ So I said, โLetโs pretend you are. Say you saw 100 dealsโ25 from women, 25 from Black founders, 25 from brown founders, and 25 from other marginalized groups like Indigenous or Asian founders. How many would you fund?โ
Their response: โItโs about the best deal.โ I asked, โHow do you define the best deal?โ They said, โIt depends on the founder and the idea.โ I followed up: โIf the ideas are equal, why choose a white male founder over a female or minority founder?โ
At that point, some investors got defensive. I had to turn off the recordings for those conversations because they started making sexist or racist commentsโsometimes without realizing it.
Susan Sly 16:46
Wow.
Gregory Shepard 16:48
It was disheartening. One investor admitted, โI just feel more comfortable working with another white man.โ Others doubted womenโs leadership abilities or implied certain groups lacked adequate education. These remarks were blatantly sexist and racist.
The reality is that most investment capital comes from white men, and many of them unconsciously prefer working with people like themselves. They donโt even realize how biased they are. Itโs unacceptable, and it angers me.
Weโre at a point where these attitudes are being exposed more than ever, and itโs clear that many of these individuals have no idea their behavior would be unacceptable in any modern workplace.
Susan Sly 19:34
Gregory, I had a colleague; we were pitching to a VC, and he introduced me to the VC as, โAnd this is Susan. Sheโs a really attractive woman and a great storyteller.โ Like, not, โShe went to MIT,โ or, โWeโve won awards,โ or, like, and to your point, itโs sometimes, itโs just like, sly, saying something, and youโre not even aware youโre saying it.
And one of the things Iโve said when Iโmโbecause Iโm an angel investor tooโthereโs a ton of deal flow. So I love that you said that, because thatโs always the common excuse: โOh, thereโs not enough deal flow.โ Okay, well, put on your investment sticker on LinkedIn, and, like mine, your inbox will be full of deal flow, all sorts of deal flow. Thereโs no end of deal flow.
But if we look statistically, right, why do people invest in the stock market? Why do they read the stock charts? Because theyโre betting that that stock, whether itโs Nvidia or Amazon or whatever it is, is going to go up. If we look statistically at the results that female founders produce, right, why wouldnโt you up your ante and up your odds? But the fact that thereโs a lack of awareness of the statistics is mind-blowing to me, considering that now youโre seeing VCs, to your point, using a lot of AI tools. And those AI tools are built on data from past venture deals, which is most based on male-led snow.
Gregory Shepard 21:11
Itโs like driving down the freeway looking behind you.
Susan Sly 21:16
Right? And so, of course, the AI is going to select out female founders and brown founders and black. Like, itโs justโand itโs not funny, but itโs, itโs sad.
Gregory Shepard 21:27
And to what you said earlier is actually something that I ran into a whole bunch of times. So thereโs this term, you know, I donโt know if youโve heard of it, โpretty privilege,โ right? Like a man or a woman has pretty privilege, so they get special benefits because theyโre attractive. That is actually a detriment in our industry.
Itโs your, your pretty privilege is the opposite in our industry. So that person that mentioned that actually proved that point right, because heโhe, Iโm assuming itโs a dudeโso he wouldnโt have said that had you not had pretty privilege, right? So itโs actually more difficult for attractive women in our industry because of not this, not just the sexism, but the testosterone thatโs in males, right? You know, itโs justโitโs just there, and itโs just reallyโitโs hard for me to wrap my head around how you canโtโhow a man canโt see somebody thatโs attractive and put that aside and then focus on the logic, you know. It just doesnโtโI have a really hard time, like, trying, just trying to understand how that could be the case, you know.
So I think that, you know, the bottom line is, is that if a, if you are bidding out for something, youโyou need to be very, very logical and very clear and very powerful. Like, youโre a powerful person. And when you were talking about your previous career in correction, I was just like, yeah, thatโthatโthatโs on brand for you, because you come off as a powerful person.
But I think some women in the interviews that I had with some of the founders that were women were a little bit sheepish, and if theyโre a little bit sheepish, then the investors see that as weakness, and you canโt be weak as a founder. But I think some of those issues were coming from the way that they were talking to the women that made them react that way, right? So because theyโre talking to the investor, right? The investorโand it sort of reminds me of the โ50s, when women had to be a certain way, you know, and now thatโs changed. But when theyโre talking to an investor, which are usually old, white dudes, right? And then they have to be a little sheepish because theyโre afraid. But thatโs the wrong choice, like, you know, show your color, spread your wings, and flex, right? Youโre a badass woman, and you should be up there showing these people that youโre a badass woman.
So my advice for women is, go the opposite way, be strong and powerful. And if they thinkโand this is the other thing I heard too, which really pissed me off, actually, to the point where this interview I had to end, this guy was a real piece of work, but it was this guy out of Texas, and he was just as sexist as they get. But he was like, โWell, I donโt want to talk to a bitch,โ and Iโm like, โWhat is a bitch to you? Like, are they being mean to you?โ โNo, theyโre being disrespectful.โ โWhat is disrespectful to you?โ Basically, it came to, he wanted people to be sheepish. He wanted them to bow to his investorhood, or whatever this guy had in his head.
And so itโsโitโs a confusing space. To your point on this subject, itโs like a really confusing thing toโtoโto catalog. And I did a lot of research on this, and I put it in the book, you know, but Iโm doing the research again now, because Iโm trying to figure out what is preventing them, because this oneโs on funding and capital. So Iโm like, โWhat is preventing these, the same group of people from getting funding?โ
Susan Sly 25:36
Like, what in the world? The context for the listenersโif youโve never pitchedโis that Iโve done probably at least 100 pitches. When youโre pitching, the context is what those investors want to know: do you have the founding team that can execute, and what is their experience?
One of the things I said is, โI have built channel sales teams that have done in excess of $2 billion US in sales.โ Now, I am sure if a guy had said that, there would have been check-writing right away, right? And I think, Gregory, to your pointโand I love that weโre having this conversationโone of the things Iโve been thinking about is writing a book called Raise Money Like a Girl.
For women, raising money often takes a different path. A lot of my friends who are female founders start with angel investors, friends, and family. Women are very resourceful when it comes to finding checks. One of the many things I loved about your book is how you walk through the seven phases.
Before the show, I mentioned that my new startup is on phase three, and I love that youโve created this recipe. I want to ask youโthis question just came to me and wasnโt something I preparedโknowing what you know now, Gregory, with all these seven phases, would you say the phases might be categorically different based on the founder? For example, would a female founder face different phases because she might raise less money, or do you think the phases overlap?
Gregory Shepard 27:23
What Iโm going to introduce in the funding and capital book are these things called gatesโvalidation gates. What I realized after talking to people who had read the book is that thereโs a big distance between each of the phases. Itโs a long way.
They told me it would be helpful to break it down into shorter sprintsโsmaller leaps between pointsโbefore arriving at a phase. So, I created validation gates to make the process more manageable.
These validation gates will alter the experience depending on the founder. For women, men, or marginalized groups like BIPOC, their gates will often be farther apart because of the discrimination they face.
Some of it is also internal. For example, I interviewed Hispanic and Middle Eastern women who grew up in male-dominated families. It took them time to step out of that and become powerful themselves because they were groomed to be subservient.
The gates allow founders to see progress faster by breaking things down into smaller, confined steps. Validation is core.
I was watching American football, and I noticed how players celebrate every little successโwhether they gain or lose yardage. Celebrating small successes is key in startups. You canโt only celebrate big wins because those are the result of smaller victories along the way.
The gates help people stay on track and create predictable patterns, which is what Iโm after. Without predictability, itโs hard to identify whatโs going wrong because the data is all over the place. By confining it to smaller capsules, I can see whatโs happening in these micro-moments rather than losing clarity in macro data.
To answer your question, I think the phases do vary. They also tend to go backward at times, especially for women or marginalized men. If youโve been marginalized, your brain is often trained to feel less than, which creates self-doubt. That self-doubt causes you to step back and question yourself.
I know this from personal experience. When I started working on Startup Science, I kept asking, โAm I crazy? How has nobody done this?โ I felt like I was standing alone in a desert.
People whoโve grown up in environments like that need validation. They need to celebrate small wins. I tell my team: if youโre working with a founder, celebrate every single win, no matter how small, because they need to feel like theyโre progressing, even if they havenโt reached the finish line yet.
When I swam the marathon, I had six and a half hours alone in the water, hearing nothing but my breathing and strokes. It became meditative, and I reflected a lot. One thing I realized is that the key to success is feeling successful along the way.
You see this in sports: a team that starts losing often loses more, while a team that starts winning keeps winning. Momentum shifts after halftime because success feeds on itself. Feeling successful is essential to becoming successful, and that starts with celebrating small wins.
Susan Sly 33:25
Yes, and, and those, the early formative years too. We talked about this the last time you were here, and I was shared very openly that I was called the N-word as a child, and I was physically beaten up. School was the, the most awful place for me. And I was a straight-A student, but I would physically get beaten up. And, you know, I think one of the pieces, as youโre saying this, that the constant, like, whatโs the next goal? Whether itโs, you know, Iโve run the Boston Marathon six times, I want to do it 10 times, right? Like, whatโs that next goal? Next goal? Next goal is because thereโs always that sense of, and I think, that hungry fight or analogy of feeling unworthy. So what is my next accomplishment, to feel worthy?
But I think the healthy founder, because many of us who are founders, especially multiple-time founders, are, are either, you know, we were either, you know, ADD, or weโre, you know, neurodivergent in some way, shape, or form. And I think that as long as that founder brings that culture of celebration to their team and makes the focus, you know, about the wins, not just about them, right? Because weโve seen founders who are so egomaniacal that it has to be about them, but as opposed to the team.
I want to ask you something that occurred to me as you were sharing, and I love the validation gate, so Iโm super excited about the next book already. I want to ask you, what about when thereโs a setback? Like, as I shared, you know, weโre at the place of our MMPโminimum marketable product, for people who donโt know the termโbut what happens when something goes backwards? How? Whatโs the advice you would give to the founder when things are not going to plan, and maybe the user feedback isnโt what they thought it would be?
Gregory Shepard 35:28
I think that you, if you always focus on what the users want, youโre going to benefit right there, right? If you have gone, gone too far without validating that, then you have to set backwards. But thatโs okay, you know, itโs okay to go backwards in order to go forwards. Thatโs totally fine. I think that investors, you know, they get a little work worked up over that kind of stuff. But really, itโs part of the process. Like, what are you going to do? Keep going even though you have it wrong? Like, I mean, it doesnโt make sense, right?
And everybody makes sense. Everybody makes mistakes. And not only that, but if youโre forging a path thatโs never been forged before, youโre definitely going to go backwards before you go forwards. And I always tell myself the same thing: thereโs one thing Iโm willing to bet on, and thatโs myself. Yeah, like people say, do you invest in the stock market? Iโm like, no, because Iโm betting on me. I invest in my own stuff, right? My own companies, or companies that I believe in, founders that I believe in.
And if you feel like youโre going backwards, in order to go forward, you just have to say, I am investing in my own self, and I am something worth investing in, right? Like, I know I can make this happen. That will drive you through those. Itโll help bridge, you know, those moments where youโre like, and this isโit happens to everybodyโyou know, where youโre like, youโre building some software or whatever, and youโre building, and youโre building, and you go out to the market and you go, what do you think, you know? And they go, I donโt think itโs going to work. Or, you know, this is just a bad idea, or whatever, whatever.
You have to remember that thereโs 1,000 businesses, millions of businesses out there that have been really successful, that have heard the same thing, right? Listen to your customers, but realize that your customers may not know if youโre building something that theyโve never seen before. You know, like Steve Jobs used to say, customers donโt know what they want until you show it to them. Sometimes you have to show them something, and then they go, Oh.
Like, think about this. All of the people did surveys on electric cars, all the automobile companies, and they were like, nobodyโs going to buy electric cars. And then Tesla comes out, and now everybodyโs got electric cars. Changed everything, right? So he knew that what they needed was a fast car that had a long range and was luxurious and comfortable to prove that the Prius wasnโt the electric car. And now everybodyโs got these electric cars, and they all share the same common thing. If you look at Rivian and Lucid and Polaris and all these guys, they all have really fast, good range, and theyโre comfortable and luxurious. Itโs three simple things.
So I think that if you think about this from a perspective of going forwards and then going backwards in order to go forwards, then youโre alright. And think about this too, is that if youโre walking through a jungle with a machete and youโre slashing down a trail, of course, if you go backwards and go forwards, youโre going to get there faster than you did the first time, because you already chopped down the trail. Youโre just going back to clean up stuff. So itโs not really goingโis it really going backwards? Maybe itโs not. Maybe itโs just revising and making better, right?
And the other thing that drives me crazy is people that donโt understand the difference between an iteration and a pivot. And iteration are little changes on the path. A pivot is a complete change in direction. So going backwards is not a pivot. Theyโre just little iterations that are necessary to build a good business. You know, itโs just, thereโs so many things out there that people say that are just like, you know, let go of the old and embrace the new people, you know.
Susan Sly 39:21
The iteration, the pivot. I had two startups that I invested in, and man, oh, man, did they pivot. And itโs so interesting because they both raised at, you know, pre-revenue, $20 million valuationsโwow, hard pivots. And one in particular is something I wouldnโt have invested in because it wasโI wonโt say what it is, or the companyโbecause I did. I donโt invest in something that I personally donโt understand. Thatโs just me, right? And so I look at it and I love it.
Gregory Shepard 39:58
Yeah? I mean, I think that, like, the building, the business is thousands of iterations, tens of thousands of iterations. You know, you may do 10 in a day. You know, those iterations are learnings. You know, in politics, when I was in politics, they have this thing called, you know, you know youโre slushy, or youโre swinging back and forth, right? You have this thought, and then now youโre swinging, and you have that thought, and they always look down on that, and Iโm like, thatโs the craziest thing Iโve ever heard of.
So youโre going to learn something and then just ignore it because youโre afraid of your image? Youโre afraid of being seen as being swish-washy? Thatโs ridiculous. So in a startup, youโre learning, and youโre iterating, and even a pivot is because youโre learning. Part of the thing that investors donโt get, which drives me absolutely crazy, is the credit that a founder should deserve for what theyโve learned to get to where they are. Yeah, if youโre at your product stage, you have learned a lot to get where you are. Thereโs a shadow equity associated with the education of a founder as they become more seasoned in the business, understanding the industry.
There is tangible validation or evaluation shadow credit that should be attached to a founder. Because thereโs something to be said for what youโve learned. You know, you got to a certain point, like, to your point earlier, you have a founder that gets to a point, they talk to the customers, and the customers are like, โI donโt like this so far,โ right? Thatโs credit. Thereโs some value to that, right? You now know that the customers donโt like thisโthey like this. Thatโs worth something, right?
So, you know, there is a huge amount of credit that needs to be given. Think about how long it took Tesla to get to the point where they started making all these cars, and how many lessons they learned, and then how the other electric car companies just picked up where they left off, right? Thereโs credit in that, and it should be given to valuation just for that period of time that youโre learning, right? As long as you stay with it, you deserve credit for that. And I mean financial credit, like capital credit.
Susan Sly 42:21
Yes, and quantifying it. Look at Canva, right?
Gregory Shepard 42:25
Seriously, 200โ
Susan Sly 42:28
She pitched 200 times and was rejected. And I know a lot of VCs kicked themselves because they didnโt invest. And you know that what she learned in 200 pitches, right? And I am, to your point, Iโm so grateful for the things Iโve learned in over 100 pitches and thatโand Iโll probably pitch hundreds of times more. And itโs really around knowing, if we could quantify grit, Gregory, right, like that gritty founder whoโs able to be resourceful.
Like, look at your mom, and when your family was living essentially on a dirt pad, right? Like, yeah, gritty and resourceful. She was. Like how gritty and resourceful you were selling the rattlesnakes. And I think about, you know, how do we quantify grit? Because when I, right now, Iโm investing, to your point, in myself, investing in my own startup, and bootstrapping, as well as Angel, which we closed our round. But looking at it and going, how can we quantify that? And if we could quantify it, Iโd be very interested to look at the three- and five-year turnaround of those companies, right?
Thereโs so many things to think about, but I know if anyoneโs going to unpack that and quantify it, itโs you.
Gregory Shepard 43:52
Oh, thank you so much.
Susan Sly 43:56
I have one more question for you. I mean, I could ask you so many, but okay, so marathon swimming, sharksโbefore we went into the show, you were showing me what was behind you. Because, like, oh,
Gregory Shepard 44:18
Yeah, I have a ticket to space. Itโs behind me there. Itโs displayed. Because, I mean, Iโm, Iโm supposed to go in 20โnext year, but I donโt know, because they have, you know, theyโll do a launch, and then theyโll have some stuff that they have to fix, or whatever, and then I have to wait six months.
So hopefully, I go next year. It goes outside of the different stratosphere, the different spheres: the Bose sphere, stratosphere, ionosphere. And it goes into right before deep space, so that Earth is still pulling; otherwise, we would float off into space.
And itโs a capsule attached to a gigantic balloon the size of a football field. And you float up, and you get to see the view, and then you get to see the curvature of the Earth. You get to see the ball, you know, the Earth as a round thing. And then you kind ofโI think itโs kind of like a controlled crash, I guess, because itโs just a bunch of parachutes that open as you fall, you know, back to Earth, and then a bunch of balloons open around it, and you kind of like, bounce around, I guess.
But Iโm very excited about that. I really want to see the ultimate female, our mother, the Mother Earth, you know, from space, you know, see this beautiful goddess that is our home, you know, floating around in this void. You know, I just think itโs going to be so cool.
Susan Sly 45:48
I have to ask a fast follow-up question, because now with your answerโso my friend James suggests I read A Case for Mars, and so Iโm audio reading it while I run. And James is, you know, heโs very friendly with some of the folks who are working on this concept of colonizing Mars. So, would you go live on Mars?
Gregory Shepard 46:13
Hell no. I mean, I think, like, hereโs how I feel about it: we should be taking care of our own planet. If Mars was a state, nobody would live there, you know? There are some states that look like that, and nobody lives there, right? Itโs like, you know, I mean, itโs, itโs a prettyโyou, you would have to be okay with being indoors all the time, you know?
Like, if youโre somebody that lives in malls, or maybe somebody that lives in a super cold place in the winterโwell, even those people, like in Canada, they have all these tunnelsโeven that, you know, when the summer comes and the spring comes, theyโre outside. So youโd have to really like to live indoors to live there, and I like to be outside. So no way.
Susan Sly 47:05
Well, yeah, so if, if thereโs ever an algorithm to be built on the deterministic possibilities, and I will, Iโll reach out to you, because we need to have the counterargument. I personally, I would go if it somehow benefited the people that were going in service. If thereโs one of the things I said is whoever goes to Mars, letโs not just think of it like a legion of young people to go colonize the planet, like bringing people who have wisdom, to your point, like founders, who have lived through, yeah?
Gregory Shepard 47:44
Founders, scientists, doctors, youโ
Susan Sly 47:48
Know, yes, philosophers, right, yeah. Philosophers,
Gregory Shepard 47:51
Definitely.
Susan Sly 47:52
Yeah. So, so you heard it here first. Gregory is Mars. Is not the next frontier. This is not an episode of Star Trek, and weโre not going frontier, but space is the next frontier. And unfortunately, James T. Kirk couldnโt be here today, but Gregory, I love you so much, and I mean that sincerely with all my heart. Thank you for the gift that you continue to give. And IโI rarely ever say this, because itโit has to be true if Iโm going to say it. I love this book, and I think everyone needs to read this book. And I am so grateful forโfor just knowing you and having you in my life. So thank you.
Gregory Shepard 48:40
That is so sweet. And same, same. And I really, really mean that. And I donโt know, I donโt know how to say thank you for so much kindness outside of that. Itโs, I canโt find the right words, but thank you so much, and Namaste, youโre the same.
Susan Sly 49:00
Namaste. Iโll share with you in French a good parting is je resume.com. Means I like you. I love you. What more do you want?
Gregory Shepard 49:12
Ah, I want to learn that. Youโll have to send me that. Iโyou said it so fast that Iโyou know, Iโm not as smart as you, I guess, but thank you so much.
Susan Sly 49:23
Oh, youโre way smarter, my friend. Well, everyone, first and foremost, wherever you are in the world, on behalf of Gregory and myself, I hope that todayโs show has been impactful. We would love a five-star review. Share the show. Tag the show. Buy Gregoryโs book, The Startup Life Cycle. Go buy it if you already have it. We want a great review on Amazon. Do a video review, because those get more impact. And thank you again for being a listener of the show. God bless, and I will see you in the next episode.
Hey everyone. I hope you loved that episode with Gregory Shepard. And if you did, please share it on social. Tag me. Give us a five-star review. I would love that. I am back at the podcast after losing my dad.
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The opinions expressed by the guests on this podcast are their own and do not necessarily reflect the views of the show or its hosts.