Michael Redd's interest in the venture capital world was first sparked during his All-Star NBA career, but after nearly a decade working in VC, something didn't sit right.
The former Ohio State University and Milwaukee Bucks shooting guard teamed up with John Weaver, an attorney specializing in startup clients, to form 22 Ventures LLC, doing business as TwentyTwo. They aim to upend the VC model: Invest in and support entrepreneurs to build stable companies, instead of expecting an 80% failure rate in hopes of one huge long-shot return.
"I’ve always loved seeing people’s dreams come true," Redd said in an interview. "Most of the premise of this is to help platform people, and give people an opportunity and hopefully a superior outcome."
This spring Redd bought Olde Gahanna Schoolhouse, 106 Short St. in the historic district, and the firm is renovating it as a hub for entrepreneurs.
"It’s about the energy, and supporting people who are willing to bet on themselves," Weaver said.
Redd has invested in and advised tech startups since retiring from basketball in 2013, and remains a venture partner for ADvantage Sports Tech Fund and a mentor with Snapchat's Yellow business accelerator.
“The narrative had been how much the players make in the NBA; I was intrigued by who was paying us,” Redd said. “Our owners were the inspiration and motivation for me. Owning a basketball franchise was just a hobby for these guys.
"It was an interesting world. I didn’t find too many African American men in that world."
Weaver is a founding partner, now emeritus, at Stansbury Weaver Ltd. in downtown Columbus, which sells legal services on a subscription model instead of billing by the hour or email. He and Redd met at a Columbus coffee shop five years ago.
"John was kind enough to fix my phone," Redd said. "We continued to dialog about some of the things we see in the ecosystem in Columbus."
Most VC is predicated on investing in long shots within huge markets, expecting most to fail and aiming for a tenfold or more return from one.
"When someone’s entire life is devoted to building that company, a strikeout is a huge deal," Weaver said. "To bring it down to an Excel sheet and write-off, it dehumanizes them, and we don’t think that’s the right way to treat these people."
Redd and Weaver started the firm in 2019. The fund has other unnamed investors besides Redd. The name comes from Redd's jersey number since the seventh grade.
They bought an e-commerce business during busy holiday shopping, Landmass Goods, which sells maps as artwork. Following the slowdown during the pandemic, Weaver went full-time with 22 Ventures this January. So far, the firm has invested in seven startups.
They've deliberately gone slow so far, the two said. Each decision is driven by faith in a startup's founder, or finding a promising business to acquire and bring in someone to develop as a CEO, especially if the person increases diversity in the industry.
If the model works, the startups create jobs, TwentyTwo gets a wide array of steady dividends and healthy returns, and entrepreneurs have happy work-life balance.
"What I love is seeing people grow as people," Redd said. "We certainly believe the healthier a person is, the healthier the business and the product."
"Entrepreneurship is a path toward freedom and fulfillment and purpose I don’t think you can get anywhere else," Weaver said. "We want to make it accessible and a reality for anyone who wants to pursue it."
