The easy answer is yes. Realistically, it reminds me of when the internet started coming on mainstream in the 90’s. The internet changed much about who we are and what we do, but it took a long time to get to the current state. While we’d like to believe the AI will replace people more and more, it won’t. The human brain is so much more complicated that software won’t catch it any time soon. Think back a few years ago when IBM was touting Watson (their supercomputer) that was going to take care or predicative and mundane tasks without human intervention. Just 6 years ago, IBM ran this commercial on TV. I’ve not heard much about Watson as of late and the NY Times ran a story in 2021 talking about how it never panned out.

So, am I against AI or new technology? Absolutely not. What I am against is betting on this to replace the human brain in my lifetime or the next. Many are betting on it today to have a quicker and greater impact than it will. What we are seeing today is not AI but rather mathematical formulas and programming giving the computer specific scenarios when something happens. Computers are not LEARNING like the human brain learns. Instead, what we are seeing is Machine Learning. Eric Siegel does a great job of differentiating between AI & ML in his June 2023 HBR article. I’d highly encourage you to read this article to get a true understanding of what is and what is not Artificial Intelligence.

We are seeing tons of capital poured into just about any company that claims to be doing Artificial Intelligence. As we evaluate new start-up opportunities at ShockVentures, our caution flag goes up when we see people lead their pitches strictly using AI and making promises that they cannot deliver upon. Take heed that we are far from AI robots taking over the world. Will Machine Learning help? Absolutely. Just don’t get lost in the overinflated term called AI. It’s still a long way off.

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Artificial Intelligence (AI) — Overhyped? was originally published in ShockVentures on Medium, where people are continuing the conversation by highlighting and responding to this story.

It feels like 10 years ago when we first started seeing videos of folks 3D printing houses on YouTube that left us convinced that manufacturing had changed forever. Our minds (my mind) quickly shifted to thinking how our assembly lines in manufacturing facilities would soon be obsolete with cars, homes and large parts being printed in days, not months or years.

What happened? Did 3D printing phase itself out?

The answer is no. Like any other lasting technology, there is an adoption curve that takes time to mature. Companies like GE have been quietly enhancing their 3D printing capabilities over the years because they recognized the massive opportunities that await in the space. Other companies, like Rocket Lab, have 3D printed engines that flew into space, significantly reducing the cost and time of launches.

So why haven’t we heard much about happenings with 3D printing?

Upon speaking to industry execs in the manufacturing sector, we learned that 3D printing never fell by the wayside, folks were simply waiting for the technological capabilities to reach a steady state that made mass commercial adoption possible. They were nervous about making large capital investments in 3D printing technology. Many instead opted to lease technology because the rate of change in the industry was so fast that 3D printers were rendering obsolete in just a few years.

So where does that leave us today?

Firstly, it’s important to understand what 3D printing (more specifically additive manufacturing) technology is. To do so I laid out some key types of additive manufacturing processes to know:

• Fused Deposition Modeling (FDM): Material is extruded through a heated nozzle, layer by layer.
• Stereolithography (SLA): Uses a laser to solidify a liquid resin, layer by layer.
• Selective Laser Sintering (SLS): Uses a laser to fuse small particles of material (typically plastic or metal) into a solid structure.
• Digital Light Processing (DLP): Similar to SLA but uses a digital light projector to cure photopolymer resin.
• Selective Laser Melting (SLM) or Direct Metal Laser Sintering (DMLS): Similar to SLS, but is primarily used for metals and fully melts the particles together.
• Electron Beam Melting (EBM): Uses an electron beam to melt metal powder layer by layer.
• Laminated Object Manufacturing (LOM): Involves cutting and stacking layers of material.

Clearly, 3D printing is a lot more than putting a few pellets in a machine (like pictured below) and getting a cool Yoda figurine. The tech is finally getting to a point where it seems like it can handle mass production. Despite the tech being caught up, it takes the right companies and founders to create the processes and infrastructure around the tech to truly harness to power of it. Those who do will undoubtedly reshape manufacturing forever.

This technology that can bring transformative improvements to how we make things, specifically things that have taken a tremendous amount of money and time to make. We identified some of the key areas that we think 3D printing will have an impact on:

• Prototyping: Quickly create physical models of new designs for review and testing.
• Secondary Part Market: Produce molds or parts that can be used for equipment and automobiles.
• Reshoring: Reduces reliance on overseas manufacturing and creates economically viable ability for domestic production.
• Cost-Reduction: Reduces materials and manpower, drastically reducing costs.
• Customization: Produce parts tailored to individual needs like dental implants or hearing aids.
• Production Efficiency: 3D printing can be more efficient than traditional manufacturing, especially when the production volume is low or the design complexity is high.
• Waste Reduction: Traditional manufacturing subtractive (e.g., machining, where material is removed to shape the final product), 3D printing creates objects by depositing material layer by layer ultimately reducing waste.
• Research and Development: Enables rapid testing of new concepts and iterative designs.
• Emerging Markets: With costs of infrastructure lowering, emerging markets will soon be able to mass manufacture parts.

To summarize, 3D printing has not gone anywhere. The cool YouTube videos have slowed down but the technological advancements are more prevalent now than ever. We are still big believers in 3D printing technology and are convinced it will fundamentally change (for the better) manufacturing going forward.

What ever happened to 3D printing? was originally published in ShockVentures on Medium, where people are continuing the conversation by highlighting and responding to this story.

As we approach August (and almost the end of summer), my wife & I are preparing our oldest child for her first year in college. We are three weeks away from this date and the range of emotions seem to be all over the place. Most of my emotions are gratitude but to be frank, there’s also part of me that’s asking — “Where did the time go?” There was a time when I was the young gun working for more “seasoned” people like myself. This time has passed.

Over the past couple of months, I’ve had a time to reflect & slow down. I thought about the different phases of my life:

• Phase 1: up to 10 years old– carefree, no fear, and no realization that we were dirt poor — my mom carried all the burden for her five kids. Just living life at its fullest. Spending most of my time outside with friends. Generally, a happy boy.
• Phase 2: 11–25 years old — started seeing the difference in the haves & have nots. We were clearly a family of have nots. Forgot that simplicity was a nice way to live. Envy, greed, impatience, and anger crept into my life. It drove me to win using every tactic possible (lying, cheating, stealing, etc.). Not proud of this time but as a kid who grew up in public housing & spent much of his time homeless, I did what I needed to do.
• Phase 3: 26–35 years old — the world was my oyster. I got into college and some how graduated. A company hired me and liked me enough to put me through graduate school. To say I was self-centered & egotistical during this period is being kind (I was much worse). I was making good money, built the great American nightmare called debt (car & housing). Nothing could stop me.
• Phase 4: 36–55 years old — started a business and a family. Also started realizing that money does not make the world go around. It does help and if used wisely can be a game changer for many lives not just my own. Is my ego still here? Yes. But, I have a better handle on it today than I did in my 20’s & 30’s. I’m still a work-in-progress that God is shaping and he has been more than graceful with my flaws.
• Phase 5: TBD — My hope that I will enjoy my remaining years by giving more across all aspects of my life. Purpose.

I’ve come to realize that TIME is of great value. I spent many years regretting the past, wishing today away because tomorrow would be better. Today, I live by a few mottos:

• “Learn from the past, plan for the future, live in the moment”. This does not happen by itself — It takes work & intentionality.
• “It’s more important to know what I’m NOT going to do than what I am going to do”. I know this sounds strange but with all the noise in the world today, I have had to learn to prioritize and say no more than yes. This allows me to focus on the important things as time continues to drift away.
• “Don’t dwell in my past with regrets”. I’ve made tons of mistakes and I’ve become an amalgamation of my successes & my failures. I own it and I choose to move forward. Many still live in their past which is not where we belong. We belong in the present.

So, as I reflect on my first child heading to college, I remember that life is journey not a destination. Enjoy every step along the way to the destination and don’t be in hurry to get there — wherever “there” is. Believe it or not, “there” tends to be not all you thought it was going to be but rather just another step. The journey will include ups & downs. Instead of asking “why me?” ask “what can I learn from this?”. This applies in all walks & stages of life (work, play, home, relationships, etc.). Keep moving forward.

Enjoy your journey!

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Life is a Journey was originally published in ShockVentures on Medium, where people are continuing the conversation by highlighting and responding to this story.

Third-Party Logistics providers have fundamentally transformed supply chain management and almost single-handedly enabled ecommerce as we know it today. The evolution of 3PL capabilities has been marked by innovative technologies such as warehouse management systems that transform warehouses into robots and logistics systems that bring uber efficiencies to routing.

Despite the innovation in the space, COVID exposed our supply chain inefficiencies and opened the eyes of many. With ecommerce activity rising and nearshoring becoming more of a reality, 3PLs will continue to evolve, and technology will play a huge role in the future of this space.

The Emergence of 3PLs:

Like many small businesses today, logistics for businesses in the US were historically handled in-house. However, as globalization became commonplace and companies expanded in the mid-20th century, the complexity of managing their supply chain (delivery, warehousing, inventory etc.) became difficult to manage at scale. In 1980, the US passed the Transportation Act which deregulated the logistics industry and introduced opportunities for private logistics companies. These developments led to the rise of 3PLs, which handled all logistics operations on behalf of companies and allowed them to focus on their core businesses.

The Evolution and Innovation:

In the 1990s, the internet sent shockwaves through the logistics industry and forced 3PLs to catch up with the demand that ecommerce created. All industries were undergoing massive changes with technological enhancements, and 3PLs were forced to use IT to bring their supply chain management up to speed.

Enter Warehouse Management Systems (WMS). These systems are software applications designed to support and manage warehouse operations. They keep track of inventory levels, stock locations, picking, stashing, and replenishing items. Essentially, they optimize the entire warehousing process through tech whereas it was before done by hand.

The adoption of WMS by 3PLs in the late 90s and early 2000s introduced a level of speed, accuracy & efficiency that was never seen before. To stay competitive, 3PLs had to continuously advance their tech capabilities with tools such as tracking, data collection, and predictive analytics to gain an edge in their market.

3PLs Today:

Today, 3PLs have fully embraced digital transformation. The rise of cloud computing has made WMS more accessible and flexible, allowing small and mid-sized businesses to get involved in the action. With the presence of AI and ML, 3PLs will continue to evolve to carry as much of the logistical burden from their clients as possible. These areas of opportunity include forecasting, demand planning, order fulfillment, reverse logistics, and consulting.

Despite these advancements, there is still a significant amount of improvement that can be had in the 3PL space. We’ve seen inefficiencies in cross-border freight forwarding and cross-border payments, which is why we invested in Parnity. We also think quality control is a huge area for improvement as smaller businesses are scaling at unprecedented rates and don’t have the ability to check the quality at all points of their distribution. Here are some alarming facts:

• According to a report by the National Retail Federation, the average return rate for online purchases is as high as 30%
• Statista reports that returns cost US retailers about $428 billion in lost sales in 2020
• A study by Dotcom Distribution in 2018 found that 26% of online shoppers would definitely not purchase from a retailer again if a product was not what they expected in terms of quality
• In 2019, an IHL Group report estimated that retailers lose up to $1.75 trillion due to overstocks, out-of-stocks, and returns
• According to the IHL Group, retailers experience a decrease of 15% to 20% in overall inventory accuracy due to poor quality control mechanisms
• A study by Optoro suggests that only 10% of returned goods are resold by retailers, often due to issues with product quality

The history of 3PLs is a testament to the power of innovation and its capacity to revolutionize industries. 3PLs are an extremely important yet underappreciated industry that’s generating ~$250B per year. Given the sheer size of the market, there will be entrants who attempt to capture that value. But outside of the 3PL industry, there are ancillary opportunities that will arise due to the sheer volume of products moving across the globe. Our team at ShockVentures thinks we’ve only seen the tip of the iceberg when it comes to innovation in logistics and are excited to see how the market shakes out going forward.

The Evolution of Third-Party Logistics (3PLs) was originally published in ShockVentures on Medium, where people are continuing the conversation by highlighting and responding to this story.

As a founder of a 22-year old business, there are times when I feel stuck or even paralyzed. This is when the critics come out of everywhere including my worst critic — ME. I ran into this quote a number of years ago from a speech that Theodore Roosevelt delivered in 1910 titled “The Man in the Arena.” It resonated with me in many ways such that I went ahead and purchased a picture for my office wall. When I enter my office, it sits over my desk and is a good reminder of what it is like to be an entrepreneur. It’s also a good reminder that I need to keep moving forward regardless of circumstances.

Here’s the quote –

“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.”

I still run my business today, but I have also invested in commercial & residential real estate, invested in startup companies, and 2 years ago, along with a partner, started an early-stage investment group called ShockVentures (www.shockventures.vc). Over the past six months, we have seen capital markets dry up for founders such that many have gone out of business, and some have scaled back their plans. I applaud all the entrepreneurs regardless of what happens (16.5% of all US adults are entrepreneurs). As Theodore Roosevelt articulated well in speech, “if he fails, at least he fails while daring greatly…..”. Critics come in all shapes and sizes — some are vocal, some gossip, some are just waiting for us to fail. That’s fine, while they are thinking about us crazy founders, we are thinking about our next pivot / move / startup.

Your face may be marred but my encouragement to all founders during this time is go back to your roots. Remember when you had to truly hustle. If you believe in your idea, find a way to survive. Work on your idea and make your offering even greater that investors can’t resist taking the risk. On the cost side of the house, cut your expenses, leverage yourself (again), get a part-time job. Do whatever it takes to keep the dream alive. Just don’t give up. Now is the time to buckle in and sacrifice personally. Remember who you are — THE MAN IN THE ARENA!

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Feeling Stuck? was originally published in ShockVentures on Medium, where people are continuing the conversation by highlighting and responding to this story.

The trucking industry has been the backbone of the American economy for decades. Over 70% of all freight payload in the United States is moved by trucks. Yet, this essential industry has been grappling with a growing problem — a sharp decline in the number of truckers. The consequences of this problem affects all of us and calls for immediate solutions.

The Problem at Hand

The American Trucking Associations (ATA) reported that in 2019, the trucking industry was short by roughly 60,000 drivers. Fast forward to 2023, and the shortage is estimated to have escalated to over 80,000 drivers. At this trajectory, the ATA predicts the deficit could reach 160,000 by 2028. In other words, there is a huge gap that needs to be filled to keep up with the demands of our economy.

There are a few things that are contributing to the reduction in drivers, the main being the ages of the current drivers. According to the Bureau of Labor Statistics, the average age of a truck driver in the U.S is about 55 years old. As these drivers retire and age out, there aren’t as many younger workers joining the profession to fill the void left.

Secondly, the trucking profession has a unique set of challenges that make it tough to recruit more drivers. The job involves long hours, demanding physical work and weeks away from home. Besides these issues not being favorable, they can cause some serious health issues (per onesource-healthcare.com):

Obesity

Being in the same posture for most of the time, truck drivers face various health problems. Obesity is one of them.

Lung Cancer

CDC studies further predicted that over 70 percent of truck drivers smoke. Apart from that, being continuously exposed to diesel exhaust gas, truck driver lives are prone to deadly diseases.

Sleep Apnea

This health issue is common among drivers especially smokers and obese people. The affected person may not be able to breathe when they sleep. Their tongue folds back and blocks the air-flow.

Unbalanced Sleep Routine

Driving routine driveways and weather conditions are not always fixed. Drivers may need to push for indefinite hours without a fixed pattern. This can cause the body to develop fatigue due to improper sleeping routine.

Musculoskeletal Injuries

Due to limited mobility in the cabin, drivers may not be able to move their muscles much even if they want to. Sitting on the same seat for hours can lead to neck and back injuries.

The Way Forward

Addressing the trucking workforce shortage requires creativity. One immediate solution can be to attract younger drivers and underrepresented groups. The industry can focus on attracting younger professionals by increasing pay and benefits to make trucking “cool” again. The tough part here is that younger professionals can see right through marketing by companies that don’t actually implement what they say.

It’s also essential to promote diversity in the workforce. Women, for example, make up about 47% of the U.S workforce but are only around 6.6% of all truck drivers. Increased recruitment of women and other underrepresented groups could significantly ease the shortage.

One of the most important solutions that can address the shortage is focusing on the trucking profession as a community. By treating the profession as a community instead of a fragmented individual workforce, we can reduce the health-related issues associated with trucking and can attract motivated young, talented workers. Things such as trucker “bases” strategically placed along US highways that have gyms, healthy food options and other communal activities can bring pride and healthy habits into the profession that weren’t before there.

Technology

In addition to the traditional solutions, technology could provide innovative ways to tackle the trucker shortage. For example, advancements in fleet management software can optimize route planning, reducing the time drivers spend on the road and making the job less strenuous.

Automation also plays a crucial role. Autonomous trucks can provide efficiencies that were once a distant reality. Some of the country’s largest companies are making huge bets on autonomy that show how the commitment to automation. While fully autonomous vehicles aren’t set to take over the roads in the immediate future, they can bridge the workforce gap in the longer term.

Additionally, predictive analytics and artificial intelligence can help with predictive maintenance, reducing unexpected breakdowns and minimizing downtime. These technologies can contribute to making the job less stressful and more attractive.

While we must acknowledge that technology can’t replace the human element in the trucking industry, it certainly can assist and add to existing human capabilities. Going back to the topic of community, we can potentially leverage technology to create virtual communities amongst truckers, or even a social media platform that allows truckers to connect in-person when they get to a destination.

—

The trucking industry is facing a pivotal moment. The decline in the workforce presents a challenge, but it also opens the door to opportunities for improvement, diversification, and innovation. By leveraging a combination of improved job conditions, technology, and a more inclusive recruitment approach, the industry bring back pride to the profession and let it continue playing its critical role in our economy. We have to first recognize that the fabric of our supply chain is being propped up by these folks, and that we need treat truckers as people first and foremost.

The Declining Workforce in the Trucking Industry was originally published in ShockVentures on Medium, where people are continuing the conversation by highlighting and responding to this story.

Some of the greatest ideas / businesses ever created came through a particular experience (typically a problem or a level of inefficiency needing improvement). Yes, founders are inventors but, generally what they are doing is finding a better mouse trap or solution to an age-old problem. At ShockVentures, we focus our energy on finding companies who have an idea on how to improve a particular product or service using technology within Mobility (autonomous vehicles / ridesharing / micro-mobility / robots & drones / supply chain / logistics / etc.). The companies in our portfolio generally fall into this category. In this blog, I wanted to give you a summary view into the different phases/rounds within the lifecycle of a startup. It goes something like this:

Round 1 — Ideation Phase

• Recognition of a problem / opportunity
• Basic market research
• Initial solution identification
• Investment — ~$10k: typically, this is self-funded from savings/loan

Round 2 — Proof of Concept / Prototype

• Solution development (software, hardware, etc.)
• Further market research / garnering data
• Initial traction (initial customer interest — LOI’s)
• Investment — ~$25k to ~$50k: friends & family round

Round 3 — MVP & Traction — Seed Stage

• Development of a minimum viable product (MVP)
• Solid pitch deck & business case developed
• Garnering of customer commitments
• Investment — ~$50k to $1M: Angel Investors / Angel Groups

Round 4 — Series A / B — VC Stage

• Solid traction with financials (ARR — Annual Recurring Revenue; IRR — Internal Rate of Return; other key metrics) are consistent and growing
• Solid customer base with commitments for future revenue
• Team of experts & ambassadors for the business
• Investment — ~$1M to ~$20M: Venture Capital firms

Round 5 — Subsequent series (B, C, D, etc.) — Growth Stage

• Strong brand equity / value & customers who sing praises
• Significant ARR & IRR metrics
• Strong team in place with a clear path to profitable growth
• Investment — ~$20M to ~$100M: Venture Capital firms

Round 6 — Liquidation Event (Acquired / IPO)

• Powerful brand and reputation
• Financial books are in high order with demonstrable consistency over multiple years
• Trust from your customers, your team, and your investors
• Investment — ~$100M+ — IPO (Initial public offering) OR
• Sale (acquired by another company)

ShockVentures typically plays in Phase 3. Depending on the nature of the product / service, an investment made ShockVentures in phase 3 can take anywhere from 3 to 15 years to achieve liquidation via a sale or IPO. When planning the horizon, like most firms, we plan on managing an investment up to 10 years while we expect some of them to transact in 3 to 5 years. There is one other way for an investor to experience a liquidation in what is called a secondary market transaction that we’ll talk about in a future blog.

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Stages of a Startup Company was originally published in ShockVentures on Medium, where people are continuing the conversation by highlighting and responding to this story.

The world of startups is often associated with cutting-edge technologies, disruptive ideas, and rapid growth. However, there are still huge opportunities in “old school” industries where the startups may not be as glamourous, yet still can create massive change and outsized returns. Especially in market conditions that prove hard to fundraise and prioritize financial sustainability vs. growth at all costs. Andreesen Horowitz’ new American Dynamism fund shows that there are investors out there that realized the opportunity that lies within bedrock industries such as supply chain, industrials and manufacturing.

At ShockVentures, we’ve spent the last 2 years investing in these “old school” industries and have deployed over $1M after reviewing hundreds of companies in these verticals. Along the way we’ve noticed that investing in these sectors requires a keen understanding of two critical components: behavior change and founder market fit. In this article, I wanted to take a quick dive into how these factors play a role in how we make investment decisions that we feel like can unlock untapped potential in traditional industries.

Understanding Behavior Change

Before investing in old school industries you first have to know how they operate. Luckily, my partner, Tim Saumier, has experience working for companies like John Deere, Moen and Phillips that gives us an inside perspective on the inner workings and what makes the people within tick. One of the most interesting things we’ve learned is that no-matter how innovative the tech is, sustained success of the product is heavily reliant on the people using it being open to adoption. Changing behavior is hard so you almost always want to reduce it, but if you have to make changes here are some key things to consider:

1. Culture: Keen understanding of a culture can reduce mistakes in the evaluation process. Knowing the ins-and-outs of a company’s financial model is important, but not nearly as important as knowing who the people are that work in it every day. By simply talking to those that work day-to-day in the space, we’ve learned about the people, their problems, and even uncovered new opportunities for investment by digging deep into the culture. If a specific task has been done the same way for 20 years, it may be tough to get someone to be open to changing “how things have always been done.”

2. Pain Points: Old School industries have been around so long because they’re extremely lucrative. Because they’ve been around so long there are plenty of holes and pain points due to the sheer size of the market. We’ve found that startups that focus on the needs of the operators in the space by fixing their pain points have a higher chance of success than those that create the tech and try to force it on the market. By focusing on the alleviation of pain, a startup can create ambassadors that push others to adopt a solution because it has helped them.

3. Incentives: One of the most unique components of old school industries is that there are often a multitude of stakeholders involved to perform tasks. For example, receiving a shipment at the port not only involves the shipping company, it involves other companies/stakeholders such as shipping agents, customs agents, logistics companies etc. When creating a solution, a startup should contemplate both the effectiveness of the solution as well as how it will affect other stakeholders in operations and economics.

Founder Market Fit

In these types of industries more than others founder market fit is extremely important. The way deals are done in these spaces is by handshake with a reliance on trust. If a founder has been in the industry, understands the nuances and can be trusted, they are far more likely to succeed and close big deals:

1. Deep industry expertise: Startups operating in traditional sectors benefit immensely from founders who possess domain knowledge. This knowledge can be leveraged to create innovative solutions and navigate the challenges unique to the industry. It takes years to understand the inner workings and to get to know the key players in a given space.

2. Credibility and network: Founders with a strong market fit bring credibility and established networks to the table. In industries where relationships and trust are paramount, having a founder who is well-connected and respected can open doors to partnerships, distribution channels, and funding opportunities that might otherwise be inaccessible.

3. Persistence and resilience: Old school industries often require startups to overcome significant resistance and skepticism. Seasoned founders (whether entrepreneurs or operators) are more likely to persevere in the face of adversity because they know the end goal is attainable. Investors should seek out founders who possess the passion and drive to navigate the complexities of the industry and see their vision through. Caring about the industry helps.

—

Investing in “old school” industries is tricky. The allure of the massive markets and ripeness for disruption draws in many startups in hopes of creating the next unicorn. While that’s technically possible, we’ve found that “old school” industries still rely on “old fashioned” business techniques in some cases. This may not always be the best for pure innovation, but investors that understand this reality have a better chance of finding startups that can generate outsized returns.

The companies that stick in these industries often have impressive scalability potential because of the network effects available. One of our portfolio companies, Iron Sheepdog, is a great example of understanding behavior change and founder market fit. We believe the future is bright in these industries and as we see them succeed, our communities will benefit because of it.

Startup Investing in “Old School” Industries was originally published in ShockVentures on Medium, where people are continuing the conversation by highlighting and responding to this story.

What makes us Different?

When we started ShockVentures (www.shockventures.vc) in 2021, one of my biggest concerns was doing what everyone else did and offering no significant differentiators. I remembered reading what a Director looks like in an early-stage investment group (or angel network). The tendency is to be a generalist where the focus is on finding opportunistic deals and garnering investors (aka LP’s — limited partners) to come alongside and invest in the deals. This did not sit well with us as we’re wired a little different due to our operational experience. We built our thesis around a few things –

• We wanted to be in a space where we had operational expertise.
• We wanted to be in a space where the macro-economic trends were favorable.
• We wanted to be in a space that wasn’t defined by a geographical region.

We chose Mobility Tech for these reasons. Clearly the world is changing how things move and we are right in the middle of it. This, in conjunction with our operational experience (manufacturing, supply chain, logistics, recruiting, engineering, marketing, etc.) gives us a distinct edge in understanding the challenges founders are facing. We can do more than just source and qualify great new startups. We can come alongside and help them achieve their missions.

In addition, we felt the need to democratize this world of Angel Investing for those accredited investors who wanted in but did not have the connections, knowledge, or trust to invest into higher risk opportunities. We’ve removed the cloak & dagger approach used by many VC’s because we are governed by our values — Transparency, Accountability, Service Oriented, Respect, and Integrity. It really doesn’t have to be that complicated when it comes to understanding how it all works and if someone is accredited and mirrors our values & goals, we want to walk alongside of them and share openly. We let the goal of making an impact lead and the financial rewards be the byproduct of the work done. Not the other way around.

Our operational expertise speaks for itself. Aaron Swinton (https://www.linkedin.com/in/aaronswinton/) has worked at a PE backed startup, worked at Techstars as well as VU Venture Partners, and co-founded a marketing agency. I’m the old grizzly guy who worked in manufacturing for nearly 15 years (John Deere, Moen, Philips) and then went on to start TYGES nearly 21 years ago (www.tyges.com). Those who have heard me talk about Aaron & I’s relationship have heard me say we are yin and yang. Separate, we are good, but together we make a strong collective that does so much more than just sourcing, qualifying & closing deals. Along with our members, we are working towards building a global community of like-minded investors and deals across the mobility-tech space that will ultimately generate strong financial returns alongside measurable impact. The community that we talk about is a vision that we march towards daily. We believe with the blend of our experience alongside a great group of LP’s and founders, we can make the world better one deal at a time. Our differentiation at ShockVentures is so much more than just a thesis. It’s the lenses we’ve looked through in our pasts and how we see the future. As the community continues to come together, we’re excited to see that this impact will look like for all involved.

As we celebrate our two-year anniversary at ShockVentures on May 1, we take stock in how far we’ve come and the gratitude that we have for our LP’s, Founders, and Partners. We just finished our 11th deal in the first two years and appreciate the confidence our community has extended to us. This is just the beginning and we’re excited to be on this journey together to empower entrepreneurs, empower investors, and empower communities.

Follow us on linkedin — https://www.linkedin.com/company/shockventures/

Check us out at https://shockventures.vc/

What makes us Different? was originally published in ShockVentures on Medium, where people are continuing the conversation by highlighting and responding to this story.

Electric cars have been the talk of the town for a while now. It’s hard to pinpoint an exact moment the conversations truly picked up, but we can probably start at the moment Tesla was awarded a $450 million loan from the Department of Energy’s Loan Programs Office. Just to give some perspective, that was 13 years ago — so yes, we’ve been talking about this for a long time.

It’s not until recently, however, that EVs feel viable and we’re seeing mass adoption across our country. As with any technological revolution there will always be hesitation, but it finally feels like we’re in the “early majority” section of the innovation curve.

We’ve seen Tesla become the 7th largest company in the US by Market cap, electric charging stations become commonplace, and electric bikes zooming in cities across the US. With the infrastructure bill announcing investments of $7.5 billion in EV charging, $10 billion in clean transportation, and over $7 billion in EV battery and materials, it all of a sudden feels safe to say EVs are undoubtedly the future of transportation.

Before we all go and buy out Tesla Model 3s, there’s still a pretty big issue that needs to be addressed.

Charging Infrastructure. And more specifically, charging infrastructure in US cities.

The reality of it is there are simply not enough charging stations to maintain a large-scale transition to EVs today. The natural response would be “so let’s just build more EV charging stations.” Unfortunately it’s not that easy — in cities. The White House announced that they’d invest $5 Billion over 5 years for a National EV Charging Network but this network will mainly be among the Interstate Highway System. What about cities where space is at a premium and there is already massive congestion?

Here lies the issue (or opportunity).

Cities not only have to incentivize their businesses and residents to transition to EVs, they also have to find a way to keep the transition functional. Existing gas stations aren’t viable because EVs take substantially longer to charge, and we can’t use homes because the vast majority of car owners in cities park on the street.

Upon speaking with key stakeholders and startups addressing these issues, our team at ShockVentures identified a few keys for Cities to use in this transition:

Share

We have to rethink what it means to both own a vehicle, as well as what it means to own a “space” in our cities. We’ve already seen city residents adopt the bike-share and car-share concepts but we’ve yet to see private property “shared” for vehicles. JOCO, an NYC based startup is a great example as they partner with private real estate locations to provide e-bike subscriptions to city couriers. Cities can use this same tactic with charging infrastructure in places like churches, schools and parking lots when they’re not in use to provide charging options.

Get Creative

Not all charging has to be done with the typical stand up charging stations. With the shift to EV adoption, we also have to be open to what charging in different ways can look like. Michigan, is testing new technology that allows for cars to be charged wirelessly through induction on roads. We can also use things such as light poles and potentially the curb to provide surfaces to be used for charging.

Community Matters

An important piece that’s often overlooked in this transition is the effect on the community. This transition will certainly change the way that people move, but what we have to keep in mind is people still have to work and live amongst these changes. There will be new opportunities for revenue generation and we must make sure low and moderate income communities also get a part of the upside. This starts with making the entire community a part of the conversation and getting buy-in before major changes.

Here at ShockVentures, we believe that cities can meet their electrification goals with careful planning and creative solutions. We also believe that these goals can only be accomplished through startup innovation at some of the earliest stages. When it’s all said and done, this electrification revolution will have experienced unprecedented investment at the federal level and the cities that win will do so by keeping the needs of community at the forefront and will leverage innovative tech to fill the gaps.

Keys for the EV Transition in US Cities was originally published in ShockVentures on Medium, where people are continuing the conversation by highlighting and responding to this story.