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The key to landing an investment from Steve Case's Rise of the Rest Fund: Be a disruptor


David Hall
David Hall is managing partner of Revolution's Rise of the Rest Seed Fund.
Joanne S. Lawton

Where and how to access capital are always pressing concerns for startup founders, so when David Hall, managing partner of Revolution's Rise of the Rest Seed Fund, spoke at D.C. Startup Week on Thursday about how to land an investment from the $150 million fund, attendees were all ears.

First and foremost, Hall said, his fund looks to invest in disruptors.

“We love entrepreneurs that are looking at big, broken traditional incumbent categories, where technology has the opportunity to drive a lot of value and often steal a lot of share from some big incumbents," he told the audience.

One such company, he said, is D.C.-based Cambium Carbon, which uses technology to connect local sawyers and millers with trees that fall in forests near where they actually live and work, so they aren't using lumber shipped from thousands of miles away. It just closed a $5 million seed plus round in which Revolution participated, said co-founder and CEO Ben Christensen, who shared the stage with Hall.

The Rise of the Rest Seed Fund was born out of Revolution founder Steve Case’s bus tour across the country to find and invest in startups operating outside of the traditional epicenters of Silicon Valley, New York, and Boston, and help uplift those local economies along the way.

The fund is industry agnostic — it has invested in startups in industries ranging from retail to financial services to supply chain and logistics — and its investment ethos is to work with founders who have deep experience in their fields but who see significant opportunity for disruption.

But the vetting should go both ways, Christensen chimed in. If investors don't share a passion for your business, he told the founders in the audience, then they may not be the best fit.

“At the end of the day, it's about who you work with,” Christensen said. “And I think that's a really key thing to evaluate.”

Hall, a 2023 Washington Business Journal Power 100 honoree, acknowledged that funding environment of today is harsher than it was in 2021, and he urged founders to focus on generating revenue.

“I always say revenue is by far the best source of financing because you own that destiny and you own 100% of that revenue. Equity is really expensive,” Hall said.

His advice to founders who still need to go the venture capital route: be patient.

“Be creative about how you go out raising that capital and recognize it's going to take a lot longer," he said.

Take a look at other Power 100 honorees in our Big Money & Financiers gallery below.


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