Episode E105 - Kt McBratney - Purpose Rounds® & Renew Venture Capital

Hi Impactful Listener!

In this insightful episode, Barbara Bickham interviews Kt McBratney, a partner at Renew Venture Capital. Kt shares their unconventional journey from journalism to venture capital, driven by a commitment to impact investing and supporting overlooked founders. They dive into the investment thesis of Renew VC, which focuses on impact founders and historically excluded groups. The conversation also explores the critical importance of community in venture capital and the need for challenging and changing exclusionary systems within the industry.

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Key Points Discussed

• Kt McBratney's journey from journalism to venture capital.

• The investment thesis of Renew Venture Capital and their focus on impact and historically excluded founders.

• The significance of community as the connective tissue in venture capital.

• Exploring innovative funding mechanisms like Reg A and Reg CF via Purpose Rounds®.

• Predictions for the future of venture capital and investing, especially in light of societal challenges.

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Chapters

• [00:00:06] Introduction of Kt McBratney

• [00:01:29] Kt's journey into venture capital

• [00:03:12] Renew Venture Capital's investment thesis

• [00:07:08] Insights on learning, listening, and reading

• [00:12:41] The evolving landscape of venture capital

• [00:14:21] How to connect with Kt McBratney

Full Topic Guide

The Path to Purpose: Kt McBratney's Journey into Venture Capital

From Journalism to Venture Capital 
Kt McBratney opens the conversation with an unexpected twist: her start in journalism. This foundation, she explains, gave her keen insights into storytelling and community-building, which later translated into a successful marketing career. Her leap into venture capital was not premeditated but serendipitously emerged from her experience as a founder and operator. She explains how the team at Renew Venture Capital and their philosophy of merging purpose with profit resonated with her deeply, making the transition into venture capital a natural next step.

Renew Venture Capital's Investment Thesis 
Kt delves into the core principles of Renew Venture Capital’s investment thesis. The firm champions impact-driven startups and founders from historically excluded groups, effectively tackling two fronts: social good and diversity in entrepreneurship. The dual approach targets both impact companies that align with any of the 17 Sustainable Development Goals (SDGs) and non-impact companies led by overlooked talent. Kt stresses the importance of who gets funded, pointing out systemic inequities and the opportunity to right these wrongs while generating significant returns.

The Importance of Community in Venture Capital 
Barbara Bickham and Kt McBratney have a compelling discussion about the role of community as more than networking—it’s the backbone of a purpose-driven venture capital firm. Kt emphasizes that true community goes beyond LinkedIn connections to involve deep, meaningful engagements. This, she believes, makes venture firms rooted in purpose and profit more robust and effective. It’s about fostering environments where founders and investors can connect on deeper, more impactful levels.

Innovative Funding Mechanisms: Purpose Rounds® 
One of the episode's highlights is the discussion around Purpose Rounds®, a subcategory of Reg A and Reg CF crowdfunding mechanisms. Kt praises the JOBS Act for democratizing investment opportunities, allowing non-accredited investors to support ventures that align with their values. This change creates a more inclusive investment landscape where individuals can choose to support causes and companies they believe in, rendering venture capital more accessible.

The Future of Venture Capital 
As the episode wraps up, Kt shares her optimistic outlook on the future of venture capital. She foresees more capital aligning with pressing societal challenges and envisions a more inclusive, diversified investment community. The growing influence of Gen Z and the importance of intergenerational collaboration signify a shift toward innovative, inclusive practices within the field. Kt stresses that for venture capital to evolve, it must also innovate and adapt, just like the startups it funds.

Notable Quotes from the Guest

Fun Facts or Interesting Tidbits

1. Book Enthusiast:

   Kt McBratney is an avid reader and self-proclaimed book hoarder.
   

2. Historical Insight:

   Currently reading "Worn," a book about the history of textiles and fabric to understand broader economic and cultural impacts.
   

3. Community Focused:

   Emphasizes that true community goes beyond LinkedIn connections and should be the driving force in venture capital.

Episode Resource: Learning, Reading, and Listening

In the episode, Kt McBratney shared various resources she is currently learning from, reading, or listening to. Here are those resources:

Books Mentioned:

1. Worn: The History of Textiles and Fabric

These resources give insights into various aspects of business, leadership, finance, investments, and notable financial events, which can be highly beneficial for anyone interested in the field of venture capital or financial services.

Featured Guest Bio

With a 20-year career across tech, nonprofits and the private sector, I've been an operator, founder, startup advisor and investor. I've worked almost exclusively with early-stage startups — nearly all founded by historically excluded founders. I'm passionate about creating community as an advantage and working to unlock scalable, non-extractive businesses.

• LinkedIn

Fund Information

Purpose Rounds® are strategic rounds of funding for women, historically excluded, and impact founders. By leveraging Regulation CF and Regulation A, Purpose Rounds® allow startups to transform customers and communities into owners and advocates, while thoughtfully centering purpose. Renew VC named this category and occasionally assists founders with professional and/or financial guidance to support and launch a Purpose Round®.

• RenewVC.com

• PurposeRounds.com

• LinkedIn

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Best,
Barbara