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.
Power 100 2023: Big Money & Financiers
Jermaine Johnson
Greater Washington regional president, PNC Financial Services Group Inc.
Jermaine Johnson has led the fifth-largest bank in the region, with $17.6 billion in local deposits as of June 30, since June 2020 and chairs one of the most influential business groups, the Greater Washington Board of Trade, this year. Johnson, who oversees PNC’s operations in the Hampton Roads market, has also been a voice for diversity in banking and other industries: “The best people generally are the most diverse folks because they have a much bigger view of the world,” he told us in March.
Abdullah Konte / WBJ
David Rubenstein
Co-founder and co-chairman, The Carlyle Group
David Rubenstein is everywhere these days, most notably as a billionaire philanthropist and the chair of The Economic Club of Washington, D.C., where he interviews the biggest luminaries in business and politics. (He kicked off the fall season with Commanders' owners Josh Harris and Mitchell Rales.) Rubenstein co-founded the Carlyle Group, the world’s fourth-largest private equity firm, with $385 billion of assets under management, and also chairs the boards of the Kennedy Center for the Performing Arts, the National Gallery of Art, the Council on Foreign Relations.
Joanne S. Lawton
Melissa Bradley
Managing partner and founder, 1863 Ventures
At 1863 Ventures, the nationally renowned Melissa Bradley helps provide capital to startups owned by Black and brown entrepreneurs. The Georgetown professor manages millions of dollars of grants for D.C.’s Inclusive Innovation Equity Impact Fund targeting early-stage entrepreneurs and launched media and entertainment brand New Majority Ventures in partnership with Kinetic Energy Entertainment.
Tasha Dooley for The Washington Business Journal
Martine Rothblatt
Founder, chairperson and CEO, United Therapeutics Corp.
Martine Rothblatt founded United Therapeutics, one of the region's most dynamic and groundbreaking biotechs, in 1996 after creating satellite radio pioneer SiriusXM. The 1,000-person Silver Spring drugmaker posted record results in 2022, hitting $1.94 billion in revenue. And Rothblatt continues pushing the envelope in the emerging field of xenotransplantation — the transplanting of organs between species — to fill rising demand nationally.
Lenzy Ruffin
Gregory Hayes
CEO, RTX Corp.
Gregory Hayes is leading the transformation of RTX — the aerospace and tech contractor formerly known as Raytheon Technologies Corp. — from four subsidiaries into three business segments. The company posted revenue of $67.07 billion in 2022, the same year it moved its global headquarters from a Boston suburb to Rosslyn, further establishing the region's aerospace bonafides.
TOM BRENNER/REUTERS
Marty Rodgers
Market unit lead, U.S. South, Accenture
Marty Rodgers leads the southern segment for one of the world’s biggest consulting firms, overseeing a territory that spans 15 states from the D.C.-area hub down to Atlanta and Houston. His region includes 17,000 employees. Rodgers, who also serves on Accenture’s Global Management Committee and North America Leadership Team, is an outspoken advocate for DEI issues. While working on Capitol Hill, he helped craft legislation that created Americorps and pushed to make Martin Luther King Jr. Day a national day of service.
EMAN MOHAMMED
Jeremy Blank
Managing partner for Greater Washington, Deloitte
Jeremy Blank has led the region for Deloitte, the region’s largest Big Four accounting giant, since early 2022. He oversees 15,500 total employees and 23 offices. Blank, who also serves on the board of the Wolf Trap Foundation for the Performing Arts, is an advocate for mental health. “I’m very concerned that there are people out there that feel that they’re not being heard and they’re not being seen, that no one is really, truly valuing what they’re going through,” he told us last year as the pandemic ebbed and flowed.
Eman Mohammed
Amy Gilliland
President, General Dynamics Information Technology
Navy Academy alumnae Amy Gilliland started her career as a shipboard division officer in charge of damage control on a guided-missile destroyer. She now helms the $8.5 billion global IT enterprise for contractor General Dynamics Corp., with a staff of 30,000 worldwide, and serves on the boards of BNY Mellon, The Economic Club of Washington, D.C., and the Northern Virginia Technology Council.
Abdullah Konte / Washington Business Journal
Brian Argrett
President and CEO, City First Bank
At D.C.-based City First, the country’s largest Black-led bank with more than $1.2 billion in assets, Brian Argrett targets underserved communities via lending to low- and moderate-income communities and those with people of color. City First was one of four community banks to help create the new D.C. Bankers Association this summer, and Argrett also serves on the Office of the Comptroller of the Currency’s Minority Depository Institutions Advisory Committee and on the board of the Community Development Bankers Association. “I am uncompromised in how important I believe what we do is —how important it is for society and our community and our borrowers,” he told us in an Executive Insights video this year.
Joanne S. Lawton
Derrick Perkins
Senior vice president and market executive for Greater Washington, Bank of America Corp.
Derrick Perkins, who works closely with the bank's Greater Washington market president, Larry Di Rita, is often the man on the ground and face of the brand to the broader community. The bank is the second-biggest in the region, with $50 billion in local deposits, and he helped facilitate Bank of America's local commitment to improving economic, social and racial inequality. Perkins also serves on the boards of Virginia Housing Alliance, Volunteers of America National Services and Housing Association of Nonprofit Developers.
Eman Mohammed
Peter Scher
Vice chairman, JPMorgan Chase & Co.
Peter Scher wears multiple hats at the nation’s largest bank, including overseeing its expansion in the Mid-Atlantic region, as well as its lead executives who manage its global corporate responsibility department and its arm to help improve employee-sponsored health insurance. The bank, which had no retail presence in the region just years ago, now controls $3.7 billion in local deposits, with plans to grow that further to catch up closer to other national brands. Scher also chairs the Greater Washington Partnership, a regional coalition of CEOs he helped establish to identify and fill economic development gaps and build a more inclusive economy.
JPMorgan Chase
Ellis Carr
President and CEO, Momentus Capital
Ellis Carr leads the ambitious Momentus Capital, an umbrella group of organizations co-headquartered in Arlington and San Diego with a mission to increase capital for underserved neighborhoods and entrepreneurs. With approximately 255 employees nationwide and nearly $3 billion in assets, it’s comprised of the community development financial institution Capital Impact Partners, CDC Small Business Finance — which provides credit to underserved small businesses — and cloud-based lending technology vendor Venture Lending Technologies.
Joanne S. Lawton
Harvey Schwartz
CEO, The Carlyle Group Inc.
Goldman Sachs vet Harvey Schwartz took the CEO role of The Carlyle Group Inc. in mid-February and has steadily worked to reignite the D.C. private equity giant with $385 billion in assets under management. Schwartz has reworked the C-suite, recruited co-founder David Rubenstein to take a more active role in fundraising and moved the firm away from U.S. buyouts in the consumer, media and retail sectors.
The Carlyle Group Inc.
Devin Talbott
Founder and managing partner, Enlightenment Capital
At Chevy Chase private investment firm, Devin Talbott has established a track record of building and growing middle-market defense contracting companies — and sometimes selling them to big players. In 2022, Enlightenment sold cyber contractor EverWatch to Booz Allen Hamilton in a deal valued at $440 million. And as a minority owner in D.C. United, Talbott some resources into enhancing parts of Audi Field this year. He’s also a longtime board member of D.C. Scores, a nonprofit dedicated to bringing soccer and additional learning opportunities to low-income schools.
Hannah Wagner, D.C. United
Horacio Rozanski
President and CEO, Booz Allen Hamilton Inc.
Despite agreeing to a $377.5 million settlement with Department of Justice for allegedly improperly billing the government from 2011 to 2021, Booz Allen remains one of Greater Washington's most important companies — and Horacio Rozanski has been its steadfast leader for nearly a decade. The McLean management and IT consulting juggernaut has played an increasing M&A game recently, and it posted $9.26 billion in revenue in fiscal 2023— a 10.7% increase over the previous fiscal year. The Argentine native chairs the board of the Children’s National Medical Center and is a director at Marriott International and CARE.
Eman Mohammed/WBJ
Monica Modi Dalwadi
Managing partner for the D.C. metro region, Baker Tilly
Monica Modi Dalwadi has led the D.C. office of billion-dollar accounting and consulting firm Baker Tilly since 2019 after becoming one of the firm's youngest-ever partners at age 33. Today, Baker Tilly has 320 professionals locally. Dalwadi, who also serves on the board of directors of the Economic Club of Washington, D.C., and the Greater Washington Board of Trade, takes a national role for the accounting firm on diversity issues.
© Eman Mohammed /WBJ
Kevin Smithson
Office managing partner, Washington, D.C., Metro area, PwC
Kevin Smithson manages the D.C.-area market for one of the world’s big four accounting and professional services firms. After running PwC’s Northeast and then East region tax practice out of Boston for five years, he relocated to Greater Washington in 2020 and now oversees more than 2,200 professionals in the Washington-Baltimore region. Smithson serves on the boards of Reading is Fundamental, Junior Achievement and the Wolf Trap Foundation and sits on the corporate council for the Kennedy Center. He and his wife Beth, a principal at the interior design firm Scopo Design LLC, are also chairing this year’s Washington Business Hall of Fame induction ceremony at the Anthem on Dec. 5.
PwC
David Boyle
Chair, president and CEO, Burke & Herbert Financial Services Corp.
David Boyle is a relative newcomer to Greater Washington but he’s already making his mark on the region’s banking scene. The veteran banker joined Alexandria’s Burke & Herbert Bank & Trust Co. in 2019 and became its CEO at the start of 2020. On his watch, Virginia’s oldest bank has expanded into new markets across Virginia, added its first Maryland office, moved its shares to a higher-profile stock exchange and, most notably, announced the first merger in its 171-year history. In one fell swoop, that $371.5 million deal with Moorefield, West Virginia-based Summit Financial Group will more than double the bank’s size to about $8 billion in assets.
Burke & Herbert Bank
Rick Adams Jr.
CEO, United Bank
If the name sounds familiar, it's because it is — but please note the “Jr.” It’s been a year since the younger Rick Adams moved from president to CEO of United Bank, replacing his father who led the firm for nearly half a century. Under Adams, the firm has moved up in Greater Washington’s deposit share rankings from seventh to sixth this year. Its total assets were $29.7 billion at June 30, up from $28.8 billion a year earlier.
United Bank
John Delaney
Founder and executive chairman, Forbright Inc.
Banker. Congressman. Presidential contender. John Delaney had already had quite the career when he stepped back into the financial industry after his failed 2020 run for the Democratic nomination. He re-engaged with the Congressional Bank, the Chevy Chase institution he bought in 2011, and rebranded it as Forbright Bank in 2022. And the bank has a new mission: It will dedicate half of its assets to financing companies, investors, operators and innovators working to create a more sustainable economy less reliant on carbon. Today it's one of the region's fastest-growing banks, currently ranking at No. 11 for local deposits with nearly $5.7 billion.
Forbright Bank
Evelyn Lee
Greater Washington & Maryland regional president, Truist
Evelyn Lee has led Truist’s local presence as the Greater Washington regional president since that firm was formed by the 2019 merger of SunTrust Bank and BB&T. Now, the veteran banker has also added the Maryland region to her responsibilities following the retirement of that market's longtime leader. She’s said the Washington-Baltimore region is a growth area for the $555 billion-asset bank. Truist has the No. 3 spot by market share in Greater Washington with $37.2 billion in local deposits.
© Eman Mohammed /WBJ
Steve Case
Chairman and CEO, Revolution Ventures
Steve Case really needs no introduction. Dating to his days as co-founder of AOL three decades ago, he has become one of the region's most visible business leaders and investors. He founded Revolution 15 years ago and it's invested nearly $1 billion in companies, placing a special emphasis on entrepreneurs located outside of the traditional Silicon Valley area with its Rise of the Rest Seed Fund. He and his wife, Jean, also run the Case Foundation.
David Hall
Managing partner, Rise of the Rest Seed Funds
Speaking of Rise of the Rest, meet the man managing the effort, investing in entrepreneurs who are often underserved and overlooked because of their race, gender or geography. He’s traveled the country and held pitch competitions and, in the process, had a hand in distributing millions of dollars to entrepreneurs outside of Silicon Valley in one of the highest-profile such efforts in recent history.
Joanne S. Lawton
Kathy Warden
Chairman, president and CEO, Northrop Grumman Corp.
Northrop Grumman, one of the world’s biggest defense contractors, is the eighth-largest public company in Greater Washington, with $36.6 billion in revenue last year — and Kathy Warden has been at the helm since 2019. The Falls Church company boasts 95,000 employees. Warden serves on the boards of Merck & Co. Inc. and Catalyst, and she has invested her time locally serving as vice chair of prominent regional business group Greater Washington Partnership.
Courtesy Northrop Grumman
Brian Kenner
Head of HQ2 Policy, Amazon.com Inc.
Brian Kenner leads policy for Amazon’s second headquarters in Arlington — the first phase of which delivered earlier this year — boosted by his previous experience as D.C.'s deputy mayor for planning and economic development. He’s often in community and local government meetings and leads a team of individuals dedicated to shaping what Amazon hopes will be its future community role, through investments in food access, local schools and nonprofits, among others. “It is still an extreme positive example of how we said we were going to come and locate in this region and what we’re going to actually do,” he said earlier this year.
Abdullah Konte / WBJ