0:00 - Intro
1:14 - Arc Browser Fans
2:57 - It Started with Workona
3:47 - Finding Arc Browser
4:55 - Couldn't Use Arc (MacOS Only)
6:06 - Arc Browser Onboarding Experience
7:06 - What I Hoped ChromeOS Would Be
7:56 - Convincing Friends to Try Arc
9:43 - I Want to Invest in Arc Browser
10:19 - Arc Browser Investors
11:51 - Getting Josh's Attention (CEO)
16:59 - 4,400 Word Article for Josh
20:17 - Josh Responds...
21:17 - Copper CRM (Sponsor)
22:35 - "How much can you put in?"
23:15 - Crowdfunding Investment (Sandhill Story)
26:14 - The Arc Content Journey
27:03 - Continual Rejection
27:45 - The No Subject Email
30:30 - Josh Called Us?!
32:35 - I'm Trying to Let You In!
33:44 - Preparing For The Investment
34:44 - It's Happening (Bleep) Sell Your Stocks!
36:26 - You Can Buy a House With That!
37:55 - Angel Investors Don't Get Into Series B
38:22 - Pro Rata Rights Explained
40:31 - We Don't Need Your Money!
41:30 - A Glimmer of Hope
42:47 - When No Doesn't Really Mean No
50:05 - The Big Arc Browser Launch
50:27 - Sneak Peeks
People often ask how I decide what companies to invest in, and where I get the conviction to actually put money in.
In thinking about it, most of my investments have come from decades of thoughts about a specific problem that a company is solving.
This is the story of how and why I believe The Browser Company (Arc) is the operating system for the future of the internet.
Here is some insight into the thousands of hours and deeply emotional personal experiences (erm, what…?) spanning the past decade, that ultimately led me to posting the tweet above.
I got my first Chromebook as a college graduation present from my mom back in 2014. She could immediately tell that she had made a mistake.
You could see the thoughts as if they were painted directly on my face (I couldn’t even pretend to hide it):
Where did this come from and… why?
She handed me the receipt and gave me permission to return it if I’d like, saying that it wouldn’t upset her. Oh, and added that “I’m incredibly difficult to shop for” – Yep 😅 and so I returned it.
Awful son, right?
Well, for context: I learned how to build my first gaming PC at something like 13, and then proceeded to build more than a dozen or so thereafter (4 for myself, a handful for family and friends, and quite a few more for some of my clients). Oh yeah, I was also four years into running my IT Services company. Not to mention, I also already had a top-of-the-line Windows Ultrabook (laptop) that I was super happy with. So in summary, I literally had no use for it.
Don’t get me wrong. My mom wasn’t wrong, I loved Chromebooks (just… for other people - not myself). She heard me regularly talking about it because I was often recommending them to family, friends, and even clients.
Why? Because Chromebooks were so easy to setup, backup, manage remotely, and hey, no antivirus required! You spill coffee on your laptop? All good! No files are lost and no programs require reinstalling. Simply grab a new Chromebook and log into your Google account. Good as new!
This convenience is what later became a healthy obsession:
What actually makes a computer, a computer? 🤔
As the years followed, I thought about this question a lot.
For anybody who doesn’t know what a Chromebook is, it’s a laptop that is centered entirely around Google Services (Chrome, Drive, Gmail, Docs, Sheets, etc.).
In explaining to clients why Chromebooks (ChromeOS) was a great path forward, I got back no shortage of concerns:
“But what about Microsoft Word and all of the other software that I use?
"You can open up Word files in Google Docs and all the software you use at work is actually already accessed through your browser (e.g. Gmail, Calendar, Slack, Asana).”
They couldn’t really argue with that. And by convincing clients to deploy Chromebooks across their organization, I gained more and more conviction that all of their work could be done in the browser.
Because I was recommending Chromebooks to everyone else, I started reflecting on my own workflows too.
On two fronts in-fact:
Personal: Working on two separate computers that didn’t at all speak to one another was causing a lot of frustration. Having to re-login to everything, setup and configure every installed application twice, development environments, etc. I was maintaining two totally siloed Windows computers and it was becoming painful to keep everything in-sync (PC & Laptop).
Work: At this point I was managing dozens of computers for clients and I was constantly wondering how I could do more of that remotely and in a more efficient way. Windows and MacOS machines at the time were a pain to setup and manage at scale, and nearly impossible to remotely. Even with expensive RMM (Remote Monitoring & Management) software. It was such a pain.
I also started realizing that 99% of my daily usage was actually inside of Google Chrome:
🤯
By recommending clients to deploy Chromebooks across their organization, I gained conviction in the simplicity and scalability that they were looking for.
Google released the Pixelbook, a premium Chromebook. It was my time to put my money where my mouth was.
I decided to use a Pixelbook (Chromebook) for 100% of my working day.
I’ll be the first to say it… It was a difficult experience. Not for the reason you’d think though! It wasn’t because the computer wasn’t capable – I got all of my work done without problem, it was great. The tough part was actually others. Every single person that I crossed paths with from that point forward was wondering only one thing… Why?
It’s super exhausting holding an opinion that nearly everyone opposes.
“Wait… What?? Why aren’t you just on MacOS or even Windows? Aren’t you literally just using a glorified Chrome browser?”
The answer is “Yes, but…” (let’s just say this gave me a lot of practice in refining my “why” over the years to come).
People saw it as just a Chrome browser, but what I saw was the future of the internet.
That with it, all computers in the future will just need to be portals – slabs of glass, that with a simple login will transform into your perfectly configured workspace, leaving you right where you last left off.
All of this possible from anywhere. There will be no more “forgetting your laptop at home” or “I’ll have to show you later”. You’ll be able to feel at home with the ability to work and play from anywhere at any time on anyone’s device. That to me, was the future vision of ChromeOS.
Eventually I even wiped my Windows Ultrabook to install CloudReady (an installable version of ChromeOS) and recorded a comparison video between it and the Pixelbook because I wanted to show people that they too could get access to this experience all without even purchasing a new computer. This software would be the way that every computer in the world could eventually to get access to the above vision. I was down the rabbit hole and all-in at this point.
For this vision to come true though, Chrome was still missing some things. Tab management and bookmarks hadn’t evolved since the creation of the browser (over a decade ago).
Take for example your browser right now. Are you using bookmarks? If so, are they even organized and useful? Or are they actually a total mess like most people? Ever accidentally close a window with all your tabs open, jumping between different browser windows to attempt to segment your work? It’s all hectic and a complete mess.
So I got to searching and installed pretty much every single tab/bookmark manager on the market. Used Toby personally for 6 months and even deployed it to a few of our clients to try and bring the “portal vision” of Chromebooks to life.
Adoption of these tools was tough though as it required a lot of setup and training along with a major shift in habit. I understood why there was pushback, and that’s where I ultimately settled on building a custom dashboard management system for clients to use. Simply replacing their typical Chrome homepage and new tab page with a custom page we created, essentially building their companies’ standardized “portal to the internet”:
It was a decent solution for the time. Definitely not my ideal vision imagined, but our clients enjoyed it enough. Not to mention, it was incredibly easy to deploy across the company, little to no training required, because it was just a webpage with links to the pages they needed to access.
(Crazy enough, some of our legacy clients are still using it to this day) 🤷♂️
In my never-ending search to find my “portal to the internet Chrome experience”, I stumbled upon a totally re-imagined Chrome extension and tab management experience called Workona:
It was ChromeOS + Workona that enabled me to finally experience a glimpse into what I had always hoped for the “portal” vision to be, it mostly checked the boxes:
The following year was me just giving tons of feedback, having a couple of my clients implement it so that they could be guinea pigs for a wider rollout. From there, I’d collect feedback from them, pass it along to Workona, and then rinse and repeat.
This email was incredibly unexpected and changed the course and direction of my entire life. At the time of this email, I was growing my business out of my bedroom in Buffalo New York, and absolutely loving what I was doing.
I had pivoted away from the traditional MSP IT services, and over to SaaS integration, automation, and business process design. I was growing and playing with software every day in my free time, and the business was generating over $150k per year – as the founder and sole employee, I was happy and comfortable. It was the type of lifestyle business that one might hope to one day have, and after 9 years of grinding, I had finally made it here.
This is not a word I use lightly.
In-fact, it’s a word that actually broke me.
(I’m getting emotional even as I write this – I can’t overstate how much this single word has had an outsized impact on my life).
I’ve had plenty of job offers from software companies that I’ve absolutely adored over the years, but I’ve always ultimately declined through simply reflecting on one of my cornerstone realizations:
I already get to work with all of the software that I love every day, while continuing to discover new ones to add to that list. If I could describe my dream job, it would be playing with new features, beta testing cutting-edge new software, giving product feedback, all while bending and breaking what is possible through integration.
I already had my dream job in many ways.
But this opportunity felt different. For the first time in my life, the word “comfortable” was staring at me directly in the face and it absolutely tore me apart.
This is what played through my head day-in and day-out for weeks. I was a mess.
I finally decided to take the leap. Based on what? My new life cornerstone:
If you’re comfortable, you’re not growing.
So I chose to dive into the tech capital of the world, as an early team member of one of the most crazy talented teams that I had ever met, on a product that I had been obsessed with and using daily for a year. Working alongside them on a vision that I had been daydreaming about solving, and in a way, trying to solve in the micro for myself and clients my entire career.
I told all of my family and friends that I was leaving, and spent the next month working on delegating my one-person business so that I could take a backseat in it, to experience the energy of a proper startup.
Some unforeseen complexities came up which resulted in it not making sense for me to join the team.
I stayed at my company as a huge supporter of Workona, but the comfortability damage was done. I was now seeking discomfort – so I kept the 1-way plane ticket, with a new destination in mind:
San Francisco
With no reason to be there other than discomfort, I:
(Now these are all stories for a different day as it’s not directly related to what I’m trying to get across with this article.)
I had been hearing about a browser that was in the works on Twitter by a company aptly named “The Browser Company”. Now I’ll admit, I was incredibly skeptical because I had tried “the browser-based solution”, with companies like Shift amongst others over the years. And while they are always cool out of the gate, I continually found myself going back to Chrome after that “new product productivity boost dopamine” quickly wore off.
(Keep in mind, I was also still using ChromeOS as my daily driver, and just left my Windows PC at home, so I couldn’t even use these browser-based solutions anyway – point being: they’ve never been good enough to make me actually miss my Windows PC).
That said, I gave them the benefit of the doubt, requested access, and waited for a while to get in. 🤞
Success! Wait… One little problem, I don’t have a MacBook 😅
Stole my wife’s MacBook Air and installed it to play around a bit.
Beautiful onboarding and a level of refinement and purpose that I rarely see in a product. Especially not for a product that is still some level of “private beta”. Thoughtful tab management, tab grouping through folders, oh, and workspaces (spaces) — I’ll get to this later… All I can say is wow… I’m impressed.
Okay, this once little problem has officially turned into a big problem. I have no actual way to use Arc daily, so how am I supposed to give it an actual shot?
Not to mention, my wife was officially jealous when she saw me using Arc on her computer. Which of course led to me asking the team for access on her behalf so I could live vicariously through her (and make her day of course!) 😁
(Arc requires a whitelisted email address to access and save your spaces, so we couldn’t just share my invite unfortunately).
I did the unthinkable… and preordered an M2 MacBook Air.
I’d be lying if I didn’t admit that Arc was a factor in that decision. I mean… it’s one of the few things that I knew I’d never be able to get on my Chromebook. Arc on ChromeOS just isn’t possible since ChromeOS is Chrome… So at this point, I clearly had no other choice.
This was my fist ever Mac, and with it in hand, would you believe that the first thing I did was install and setup Arc (I mean, if you’re this far in the article, that point is probably relatively obvious…)
Now when I go back to my Chromebook in the off-chance, I now feel like it is missing something. The platform that I thought would be the operating system of the future (ChromeOS) was now missing my synced spaces, pinned bookmarks, folders, and more (will explain these features in the next section). I could no longer “pick up where I last left off”. That said, what I can do now is jump on my wife’s computer and be thrown right into where I left off, all with Arc.
The portal to my workspace is now accessible in more locations. On any computer (well MacOS for now, but Windows is being worked on and is coming). Point being: I now see the vision of the portal, but now with less friction. Instead of changing someone’s foundational operating system, there is now an operating system masked as a simple browser that can be installed with just a click, just like any other app. This eliminates the largest friction-point that comes with ChromeOS (purchasing a new laptop & learning a new OS).
Okay, here’s 3 things (though there are many more) that are the bedrock of what will make Arc operating system for the future of the internet.
Arc has this special thing called “Spaces”. Once you begin using this feature, along with the built-in organization philosophy, you’ll never be able to go back to accessing the internet the old way again.
When you are in one of your spaces, you are in a focused environment, void of all the distractions across the 20+ other tabs you probably have open.
You might make a space for marketing (content creation), entertainment, projects you are working on, reconciling the company books, or anything in-between.
But wait! Some of those are personal things, while others are for work! I hate mixing the two!
Good point!
So this is where Spaces have a second layer to them called “Profiles”. Take that entertainment space, pin your YouTube, Twitter, Netflix, and simply set that space to “Personal”. Log into your accounts once, and just like that, you’re in a totally personal environment.
What about those other spaces?
No problem!
Set the Marketing space to your “Work” profile and log into all of your work accounts. Now when you are in the “Marketing” space, you’re fully siloed in your work environment. This means your search history, logins, and extensions are all tied to your profile and thus, your space. Oh, and even those little “favorited” icons at the top. Accessing your email across all your work spaces? Go ahead and favorite it, now it’ll be in the same spot for each work Space you visit!
Now set a fun color/theme to give each space a nice visual cue when swiping between them, and find yourself getting engulfed into what you’re working on. All your open tabs stay right where you left them, in the specific space you visited them in. Accidentally visit a few work sites in your personal space? Simply select them and right-click → move to one of your work Spaces! 👌
Arc can now keep you focused, organized, and no longer context switching, the #1 killer of productivity.
Okay, Spaces are super cool! But how do I organize them?
With folders of course!
And sub-folders, and sub-folders, and more sub-folders.
This rabbit hole goes deep! 🕳️🐇
Have you gone too crazy with folders? No fret! Right-click the parent folder and turn it into its own standalone Space!
Now you’re getting the hang of it! Go deep with folders and horizontal with spaces. Expand in all directions!
Have any websites that you’re regularly jumping between or open in two separate windows? Take for example this blog post that I’m writing. The editor is in markdown, and that is rendered in the actual page. Cool, lets create a split tab view that has the hidden blog preview URL in one half and the editor in the other:
And this is what it looks like when you’re in one of the “split views”:
Build it once, pin the tab group split, and easily reset the tab group back to the original group if you ever accidentally navigate away. It’s like a “reset” button built right in.
Arc is built atop Chromium (the open-source foundation of Chrome), which means all of the extensions you use and love in Chrome, work out of the box with Arc.
But that’s not all!
The team at Arc has built in some thoughtful widgets right into the browser itself. Play music in one tab and then jump somewhere else? An audio control widget pops right up in the bottom left corner so you never wonder where that audio is coming from again.
Watching YouTube in a tab but then leave the tab to look something up real quick? No problem! A floating video widget pops up and follows you everywhere you go. It’s all of these tiny thoughtful experiences baked right into the browser, that makes it feel more like an intelligent operating system, built specifically for how we all actually use the internet.
Oh! And keyboard shortcuts. Shortcut all the things! You can set anything to be any shortcut combo you’d like (if you’d like). Do you ever find yourself copy/pasting the current URL you’re in?
⌘ + ⇧ + C
And just like that, you can paste it anywhere. No more clicking into the URL bar, selecting all, copy. I know it sounds minor, but it’s these micro actions that I didn’t even realize I was using dozens of times a day, that makes navigating the internet feel kludgy. Leveraging this simple shortcut, it now feels like the internet is actually built for sharing again.
Okay, you sound pretty excited about this browser and it has some cool features… but at the end of the day, it’s still just a browser, no? How much more useful could it really be?
Oh boy, am I glad you asked!
Browsers, everyone’s portal to the internet, are notoriously single-player. You have your bookmarks, your search history, your logins, your extensions…
But what about me??
Most things in life are more enjoyable with others, so why not also have the thing that we all use day-in-and-day-out also take advantage of this fact?
I’m someone that has been slightly obsessed with documentation. Not what most companies try to do and fail, but creating a shared brain for your company. One that is actually helpful, and allows for building repeatable processes. Documentation that is built with saving your team time as the sole purpose. Not just documenting for the sake of it.
Documentation done well should save you and your team time. It’s IP for your business.
Well, we have stellar team collaboration tools like Slite, Notion, and Loom to write and store said documentation… But how about accessing it when and where you need to? That’s where these tools fall apart and aren’t accessed as much as they should be.
Reconciling your books? Jump into your “Admin” space, and open up your “Reconciling” folder:
And just like that, all your useful documentation is already pinned, organized, and open.
Now this is great, for me… But now imagine being able to build this once, and share it across my entire team. My CPA even. What if my CPA just had a shared “reconciling” space for each of his clients. Imagine the collaboration efficiencies.
Every business process can now be a space/folder structure, and shared with your team. Most companies are using dozens of different apps, for different things. Multiplayer Arc will finally rope in all of them. Allowing the right app/document to meet you, right when you need to access it — created once, and disseminated across the entire team.
Since we are creating sometimes complex business processes and automation/integrations for customers, a big part of what we do is create shared training documentation for our customers.
The sheer amount of time that goes into creating this though, that at times feels like it is rarely ever even referenced by the customer, is insane.
If we could bake in our shared documentation and training videos right within our customer’s work environment (Arc), it would actually get used. The sheer amount of time and money saved (for us and our customers). The reduction in support tickets, while supplying an even better customer experience. Not to mention the efficiencies gained from our customers onboarding new employees.
I can actually finally envision a scalable and organized company, can you?
Professors are currently strapped to using outdated software like Blackboard, for sharing assignments, updates, reading materials, and messages.
What if that was made 10x better and more engaging with Arc multiplayer Spaces?
Imagine the virality that would come from your professor using Arc to share assignments with your class, adding in supplemental reading material and referenced videos in the same way everyone currently accesses information.
Group projects could take advantage of a shared Space with your team, collaborative notes, flexible easels, and more.
Could Arc be the browser for education as well?
While getting schools and professors onboard might be tough, you actually just need the students to get onboard. Something that is already beginning to happen…
“How do you have conviction?”
You can see now that I just easily wrote 4,400+ words about a browser.
While that might seem like a lot, it’s only just some of the thoughts that have come from thinking about a fascinating problem I have experienced for over a decade.
So now I’ll answer your question by asking you the same question:
What is a problem that you’ve been thinking about in the back of your mind for a while?
And, if you found a company that was doing a kick-ass job at solving this problem, would you have the conviction to invest?
I think I already know the answer
If you made it here, all I can say is thank you. I appreciate you.
Oh, and now you might want to read our full Arc Browser Review
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Request PricingThis is the story of how we tried investing in Arc Browser (Chrome competitor built by the team at The Browser Company). In this episode, we bring you along the journey of getting on Josh Miller's radar (CEO) and give you a look into the DM's and phone calls with him that led to more than 3 failed attempts at investing.
If you're also a fan of Arc Browser, or are just interested in seeing what it takes to invest in a startup that doesn't want your money, this is sure to bring a smile to your face. The journey of investing in Arc has involved persistence, convincing, and even some tears. Come along the ride with us!
0:00 - Intro
1:14 - Arc Browser Fans
2:57 - It Started with Workona
3:47 - Finding Arc Browser
4:55 - Couldn't Use Arc (MacOS Only)
6:06 - Arc Browser Onboarding Experience
7:06 - What I Hoped ChromeOS Would Be
7:56 - Convincing Friends to Try Arc
9:43 - I Want to Invest in Arc Browser
10:19 - Arc Browser Investors
11:51 - Getting Josh's Attention (CEO)
16:59 - 4,400 Word Article for Josh
20:17 - Josh Responds...
21:17 - Copper CRM (Sponsor)
22:35 - "How much can you put in?"
23:15 - Crowdfunding Investment (Sandhill Story)
26:14 - The Arc Content Journey
27:03 - Continual Rejection
27:45 - The No Subject Email
30:30 - Josh Called Us?!
32:35 - I'm Trying to Let You In!
33:44 - Preparing For The Investment
34:44 - It's Happening (Bleep) Sell Your Stocks!
36:26 - You Can Buy a House With That!
37:55 - Angel Investors Don't Get Into Series B
38:22 - Pro Rata Rights Explained
40:31 - We Don't Need Your Money!
41:30 - A Glimmer of Hope
42:47 - When No Doesn't Really Mean No
50:05 - The Big Arc Browser Launch
50:27 - Sneak Peeks
Andra Vomir: There's a lot of depth here. You actually had a decade of conviction why you wanted to invest.
Alex Bass: If you could invest in the operating system for the future of the internet, would you? Exactly a month and a day later, I send another message. Going to continually message you in various places until I get some type of response because my wife and I are obsessed.
Hey Josh. Hey Alex, how's it going?
Andra: He was like, okay, there might be another opportunity for you guys to
Alex: invest. When you feel that level of magic in a product, I started sharing it with people. Did they say no three times? I can say it, we can bleep it out. No, don't say it. But it can bleep out. This is a very long bleep.
This is kind of where the journey began.
Andra: This video is sponsored by our good friends at Copper CRM. In this episode, today, we are talking about when things don't go your way with angel investing. Not when you lose money, which is what you might think when I say that, but we're talking about when things don't go your way, when you can't invest in a company you really want to.
True. That's. I know you're so wounded from this topic. Okay. If anybody follows us like online at all, they know that we have been very vocal in supporting a company and that company is
Alex: Arc Browser.
Andra: Do you hear the pain in this guy's voice? So much so that people have messaged us, you particularly, to congratulate you when they have a new feature launch because they think you have invested.
So much so that when we have like joined the wait list or skipped the wait list on our website that someone messaged you and said VC brags. Yeah. So. Everybody thinks that we have invested in ARK and the truth of the matter is we have not yet invested, but we are very much trying to, and this is one of those scenarios where we would love to give this startup our money, but unfortunately they will not take it at the moment.
Yeah. So this is the story of that. So let's start with you finding ARK because this is kind of funny. Yeah. Yeah. Yes, how did you hear about
Alex: this browser? Okay, so I have used Just about every browser out there to the point of like even the productivity type browser So there's there's browsers that have specifically been built with apps at the core So like on the sidebar there is your gmail and your calendar and a sauna and whatever And they've never really quite fit or worked in the way that I wanted them to.
What browsers are these? I can't even think off the top of my head. Um, but then there's the whole level of, I don't know if I can say the name, but they're actually the company that we're, that I was going to be going to work at, which started the whole thing of leaving Buffalo. Actually, it's a Chrome extension called Workona, which essentially is some of the concepts around workspaces and browsers.
Uh, and tab management and connecting all of this at a core and sharing it with your team and all this stuff around that. So I was a deep believer in that space and giving that company product feedback for two plus years. And that was like what prompted them to reach out and ask me if I wanted to come to Silicon Valley and work with them.
So this has been a space that I've been like. Intimately deep with to the point of being very skeptical of it because I've tried many different solutions out there and I've ultimately just come back to chrome at the end of the day. Um, so, yeah, I had seen someone writing on Twitter about like, oh, you know, arc.
Browser or what the browser company is working up is like super impressive. And I just, you know, wrote it off as like, Oh, another browser. You click on it. It's like, Oh yeah, it's, it's another browser. Um, and then I had someone who was also super interested in software, reach out and connect with me on software.
Cause we were both geeking out on some of the same types of software, productivity type software. I think he was using motion and things like that too. Is this the young
Andra: man? Yes. He's a young
Alex: man. He's a young man. And, um, I was like, you know, how actually is Arc because like you used it and he was and he's like, it's amazing.
Like it really is special. So I was like, okay, like still skeptical. But like, is there any way that you can get me in? Cause there's the wait list. And he's like, you know, I'm, I've been close with their team, giving tons of feedbacks, like I'll ask them. So he had sent like an intro email and the, the. team at the browser company was like, okay, yeah, like we'll let them in.
So I had said like, well, first of all, I was using a Chromebook for six, seven years and it only worked on Mac OS. So the thing is, I'm like, cool, now we get access to this thing, but I can't even use it on my computer. And I had this whole backstory as to why I was even using Chrome OS. And I'm sure like we can get to it at some point in more of like the future side of this conversation.
But, um, I asked them if they could invite my wife, you, and because I said otherwise she would be super jealous. And so they gave you an invite and we had both got on it. Um, I used your computer to sign up for it. Did you
Andra: you signed up for it in your profile first because you have a profile on my computer Yeah, and that was in like your own time This is like you're vetting it on your time.
And then you said I have something to put on your computer Yes, and when you put it on my profile, yeah, this is like some of the remember we were talking about like in previous We don't know when it's going to air, actually, so never mind. But sometimes, yeah, there's new software that's thrown my way. And this was one of those, and you weren't like just putting a new software on my computer.
You were like, sit down. Yeah. This is
Alex: inexperienced.
Andra: You're like, tuck your chair in. Yeah. And I was like, what is happening? Downloaded ARC, and oh my god, like, I remember being like, whoa, because I had never seen anything like that before the onboarding experience.
Alex: Yeah. It was very cool. They invested a lot into that initial experience.
Andra: Didn't you say they watched movies?
Alex: They looked how movies and trailers and things built things up. There's these micro pieces to it. To get someone's attention and they built all that up, like the type of music that played to the cadence and all these things, just a lot of research went into just that initial onboarding because they figured that is the thing that's going to make people go, wow, because it's like give it
Andra: a shot at the beginning of a movie.
It's like the whole like build up to it. It's just like always so impactful. Yeah, I had that experience for
Alex: sure. So it was something that I was initially skeptical of. And then upon putting it on your computer and playing with it a little bit myself, I was like, this is actually what. This is what I had hoped.
Workona would be. This is what I had hoped Chrome OS would one day be. I see the, the vision here and I actually need a MacBook. Yeah. I was a Windows user, a Chrome OS user, and this was literally the thing that made me say, okay, I actually need a MacBook now. I need, I need to use this software.
Andra: And me being an Apple brainwashed person was like, finally come over to the
Alex: side.
And I'm like, it's not you. It's not Apple. It is Arc. Like that. Yeah. That. Was the impetus for it. Yeah. Um, so yeah, I think it was just using it. And then I think there's this point where when you feel that level of magic in the, in a product and I started sharing it with people and like, Oh, like here, you know, give us, give this a shot and getting people to sign up for it and seeing that like they were skeptical.
And then they gave it a shot and they're like, this is amazing. It was actually the first time that I've ever seen with a product that universally I could go to someone that is not technical and have them try it. And then being like, this is amazing. And the people that were technical that would fight me on it.
And I would debate with them and create content around that. Debated with David for five hours on it because he said, I'm happy with chrome. I have no reason to switch There's they're like you can't get me to switch when I don't have a pain point I'm, like you don't need to have a pain point. This is just better in every way And seeing someone like that be like hey come over here two days later Like he came over and he's like film me and i'm like what and he's like just film me believe me So I film him and I was like, what are you doing?
And he's like i'm uninstalling chrome Because i'm habitually opening it And it's just so much worse than ARC and that became his daily driver. And this is someone that I'm like, I actually had to work so hard to get you on it. But now, like you love it. So there's those indicators, like with the dispatch investment, you are an indicator for me because you wouldn't use slack.
And then after you started using dispatch, you started using slack. And I'm like, wow, this tool actually got you. It's a layer atop of Slack, but it got, you'd actually go into Slack. So in the same token, everyone around me that's using it is like, this is so much better in every way. That's just like, if there's an indicator out there for like, wow, this is.
This is an investment to make is it so I think this is kind of where the journey began of trying to get in, in a way, but also being like, I don't think that it's possible because I, I looked from some of the background and their investors were top tier people. Like if you look at the investor list that first, so the founder, Josh, like he had.
Uh, co founded a company about, I think like five, six years ago and sold it to Facebook. Um, Facebook acquired it, they worked there for a bit and then they left and he started this up. So like he has a successful background and then the investors that they had is like, you know, I think one of his mentors and they create public content around this is like the, the ex, uh, CEO of LinkedIn and like, I think the co founders of Figma have invested in it.
And. Um, I think that the CTO of Instagram, like the first version of Instagram is on their board. Like they just have an amazing cast of people on their cap table and also reading more into it. They were like, we only raise money from the people that built the internet because they're going to help us build the future of the internet.
Um, so that's one of those things where it's a deal that I think they had rose like 20 million or something or like 12 million, but it was like out of the gate seed round, probably crazy valuation, all of that stuff. So it's like, how are we even going to get into this? But I figured I'd ask. So
Andra: it's not like you're the type of person to roll over and say like, Oh, well, you're like, yeah, this sounds difficult.
I am up for the
Alex: challenge. I don't even know. And as I genuinely didn't think that I'd be able to, I think it was just more of like, I love this thing. And I should at least try. I have to try. Yeah. All the indicators seeing this, I'm just like, it's still relatively early. Like it was still Mac OS only. And all of these things that it's like, this is a time to give it a shot.
Um,
Andra: And I was going to say, I think you also just genuinely had an appreciation for the product and the team and how they were building. So I think, like you naturally have done for your whole career, you just wanted to also support
Alex: them. Yeah. Yeah. So I, um, I did a few things. I had, of course, added Josh on Twitter and liked many of his tweets that he was posting about it in the browser company and any employee from the browser company, I'd follow them on Twitter and I would, you know, retweet them occasionally or, you know, like their tweets and whatever, anytime they release a feature, I would like write a comment in it, like try it in a way like show I am someone that's supporting this.
I'm here for you guys. And I'm just like selflessly supporting. I just love what you're building and Um, I sent him his DMS were open, so I sent him a DM on Twitter. Um, I said, well, I guess this gives some of the context in it. I said, just added you on LinkedIn and sent over a message figured I'd send it here to because when you add someone on LinkedIn, you never know if they're ever gonna get the message that you just get spam with that stuff.
Um, so added. And so I essentially said. Love ARK. Love what you're building. Would kill to be able to invest in your next raise slash round slash bridge. Have a whole myriad of reasons why my wife and I love ARK. We also work together and angel invest together and we'd love to be more involved. Keep doing what you're doing and genuinely shocked that i've been Managed to be pulled from chrome after over a decade of well loving it.
Well done. So I sent this to him on august 3rd 2020 Two last year, 2022. And I didn't get a response. I sent a similar message via email. Um, I'm not gonna put the email out there, but I tried an email, well, I guess I could put out there 'cause it bounced . Okay. I thought it was his email. It wasn't. So then I tried another one and it didn't bounce and I'm like, okay, so I have sent an email to you.
I've sent Twitter dmm, I've sent LinkedIn, dmm, and I'm messaging on. tweets and all this stuff. So this is like many months are going by and whatever. So then, um, June, July, August, September. So the next month, exactly a month and a day later, I sent another message going to continually message you in various places until I get some type of response because my wife and I are obsessed.
Wink, smiley face.
Andra: I just love like. You know at this point I know you that this is just like such an Alex thing Yeah, I mean you don't care if people don't reply you never take it personally. You don't get offended You are just like you are busy and I like what you're doing. So Let's just i'm just gonna keep messaging you Yeah,
Alex: and this is where I it doesn't maybe it was the same day because it's not showing the the date, you know Okay, it must have been the same day.
So he actually responded and I was like, oh wow, so he said hey Alex Thanks so much for the continued kind words. Don't have an open fundraise, but the gesture means a lot So it was very much like I am someone with boundaries. I know when someone sets boundaries It was very much alike You know, appreciate obviously your support that I've been seeing, but like, it's just, yeah, we're not doing that.
And I'm like, okay, yeah, that makes sense. But at least I put my shot out there, um, essentially responded back and I was just like, ah, you know, I appreciate the response, you know, rooting for maybe a customer allocation. Maybe one day you guys will do something like that, whatever. And I just said a lot of the things that I love about it and.
Some of the vision I'm like I so see this like this is just amazing. Anyway, you'll continue seeing me I'll continue telling everyone about ARK and I'll continue to be interested whenever you do decide to raise again in general I'd love to help however I can. When I find a new product that I love, I get obsessed.
That's ARK now. Smiley face. Thank you for making my internet, er, thank you for making my the internet fun to use again. So I didn't proofread.
Andra: We promised there'd be reading on this episode.
Alex: Yeah. So essentially just like heart face, you know, emoji, like not the one with the hearts floating, not the heart eyes.
Yeah. Um, so anyway, that, that was just kind of where things sat for more than a month. And at that point, I didn't really know what else to do short of like. What can I do to maybe make us look bigger than we are in a way like we were obviously putting in Sizable angel checks at this point. We had invested in 18 plus companies So it's like we're not just like trying to do whatever like at this point.
I'm confident even what this means like, you know Understanding where they were at. I think they had rose in a series a at that point all this publicly I just, yeah, I, I figured I was confident enough to be like, you could potentially let us in. So I'm just going to like throw something out there. Maybe if you thought we were more of like a VC firm.
So what I did was I tweeted from EfficientVC Twitter, which is us. And I said, if you could invest in the operating system for the future of the internet, would you? We would, at Browser Company, at ARC Internet, and then I have the GIF that is, let me in, and the guy right outside of the White House and just like shaking the gates and it's just like, let me in.
And then about like a month later, I wrote a 4400 word article about why ARC, my conviction in ARC, the backstory of the past decade of all the things leading up to this, how we're going to tie it into it, like all of this, like I just put everything into it. I
Andra: remember, it was like the beginning of a work day, and you had turned to me, And you just, like, went off on this, like, 15 minute rant talking about, like, why you think ARC's the future, like, why you were on a Chromebook in the first place, what you think the future of the internet is.
And it was, like, such succinct thoughts that I was, like, I think you need to write an article on this instead of just telling me. And I, like, lost you for two days because you just, like, went in the depths of, like, Writing down all your
Alex: thoughts. Yeah, I, yeah, I felt like you helped me make the correlations of how ARK was actually tied to a lot of like, You'd seen firsthand how, in a way, obsessed I was with Chromebooks, where you were literally like, Why is this guy, like, I had to borrow your MacBook to do a Zoom call.
And when we were in San Francisco, because my computer just like died when it went to zoom, the CPU just overheated. And I had the top of the line Google pixel book go that I spent two grand on it, the highest end model that the CPU would overheat. And I couldn't even do a zoom call. So you were also like from afar, like, why the heck is this person like using this like shitty.
Laptop. And here I am. I'm like, no, no, no. Like the point of it is like, it's a portal. I just logged into my Google account. I have all of my stuff there. If I break it, I drop it. I go to someone else's Chromebook. I log in, I'm back into the portal of all of my stuff. It was the vision of what that would be and how that was the future to the point where I was even trying to push Chromebooks onto some of our customers.
Cause I used to be in, I like IT services, managed service provider was the business. So I was like, wow, like imagine having a company that just uses Chromebooks. If the Chromebook dies. Then you just swap it out with a new Chromebook. You say, log in. Whereas right now it's like if a Mac book, you spill water on it.
Also, Mac books are frigging expensive, spill water on it. There's a lot of work for the it person to actually get it up to speed and working and functional for that employee to use again. So I just saw like the vision of what this could be, what Chrome OS was trying to be. And I believed in that vision more than even the product and software that existed.
And I
Andra: think from the outside, what I saw was that you weren't making. Flippant decisions about the companies you wanted to invest in like you actually had a decade of conviction that went into why you really liked arc and why you wanted to invest so it was interesting for me to to go. Yeah there's a lot of depth
Alex: here yeah so essentially wrote this article and yeah but eight plus hours and you just writing it the one day and.
You help proofread it. We've been, you probably put two hours into that three hours and I put it out there. With that the mindset of I don't care if anyone reads this a I wanted to get it down because this is just like Finally some of my thoughts in my journey in a succinct way But I'm like if Josh reads this article That would be success to me like it and even if he reads part of it I would I like that was in a way the goal.
I didn't care if anyone else read it. So I got a DM from him that said hey What's the largest check you could write so then that this was this moment that was like, wait a minute Like he put up a boundary and now like efficient VC being like, oh like we would invest whatever I think he kind of got to a point where it's like well, wait a minute Like how serious is this lives?
You don't know anything about you. Like how like how serious are you about this? so, of course like When your company has already rose, say, tens of millions of dollars, you don't want to hear back, oh, we could write a 10, 000 check or 20 or 50 or whatever. Um, so at that point, I'm just like, okay, I can't even believe, like, I, I think my eyes were tearing at this point when I saw that
Andra: tweet.
You came into the bedroom and I was like, still getting ready for the day. And you were like, Oh my God. And you had tears in your eyes for sure. Yeah. And I asked, like, are you crying? And yeah, it was a, it was a big moment. It was something that you really cared about.
Alex: Yeah.
So we literally had to pull our video producer in for this one because this morning you were describing to me about how you were looking for a tool that would help you in your business. And what is the general gist of what you were explaining that you're looking for? Yeah. I mean, I went to you because you like this kind of stuff and I was just like, man, I have this problem.
Like I have this idea. Of wanting to like have like almost like a dashboard. I didn't really know the right words to use, like a dashboard of like different clients that I have, like the ones that are currently active clients, the ones that like are hot leads and like maybe they've done this or they have paid, they haven't paid.
That'd be so cool, right? Yeah. And I was just sitting there with the biggest grit and he's just going and going and explaining all this stuff that he wants. And I just had the biggest grin on my face. And then. Finally he stops talking and he's like, okay, so it sounds like you're looking for copper CRM and you're literally looking for the thing that we do for businesses.
And he's like, yeah, but I wanted to like trigger emails to send out a certain types of like, yep, everything you can do that in copper. So you're like, you're literally describing a CRM. So Corey, you're going to go into our description. You're probably going to be putting it down there and, uh, you're going to go check that out, sign up for copper and let us know what you think.
Does it work for what you're looking for? I'm down to try it. Cool.
Andra: So then, I mean, you share, cause I don't know what,
Alex: yeah, we can share. Um, so. We essentially said that we can maybe do something like 50 grand, which also would be the largest single check that we'd ever put into a company. And that is like substantial. Um, also knowing that that's not even like enough in a way.
And he was just kind of trying to gauge interest, um, to see maybe if they could do something, maybe not. Um, so then I went to the point of, well, who do I know? I'm sure I can probably say this. So we were right. We were at a friend's Halloween party here in Austin and there was our good friend there. John from Stonks.
Mm hmm. Hi, John. Hi, John. He, um, Him and his wife, his wife works for Superhuman. We were just geeking out about software as we typically do and we had invested in Stonks. So everything like that, whatever. So it was just cool that we were just talking about all this stuff and then I couldn't help but I'm just like I was Telling everyone about ARK.
I was like, have you guys heard about ARK? Like, no, what's ARC? And I was like, okay, it's a browser. And they're like, oh, okay. And I was like, no, no, no, like hear me out. And then I was just explaining the different profiles and how I could jump between work and personal and how the folders have re architected the way of like bookmarks.
And it's just so much better and process, like being able to build out workflows and processes and things like that and share them. They're kind of intrigued. Um, I showed them parts of the article where I had like gifts that were showing, like jumping between the profiles and how you keep things separate and some of the, the, you know, widgets and things like that, that were kind of baked into it and then explain the vision that I had seen and everything like that.
Um, and I said that, like, you know, we're trying to invest in them, like, and, um, yeah. Yeah, they were both super interested and I was like, I could send you an invite. I get like five invites a month that I can use and like, but you like, of course I'll give you guys one. So she's like, she's interested. She signs up for it.
Uh, he signs up for it. And then I was like, the thing is, I don't know if we can write a big enough check to get in. Like this is just, so he said, Oh, like we're always looking for like good startups to like be on stocks or anything like that. He's like, we could, we could probably do something like we could put in a quarter of a million dollar check.
And I was like, Really?
Andra: Because they would, like, get the, their network to
Alex: invest their stuff. Yeah. They could essentially probably be like, we'll spin up a, a syndicate of, you know, people or whatever else. So then of course, like Josh and I, like we had stuff back and forth and I also don't want to get into the depths of any of this stuff.
But it was just more of like, you know, he didn't know if it was really going to be possible. So then I kind of just like added in like, okay, so spoke to a friend. And if we can get. If I can get you like 300 grand of interest, whatever, like coming from us in some way or whatever else, is that something that could work?
And of course, I was like, that doesn't change anything, like appreciate it, like whatever. But I'm just like, how do I now leverage this conversation that was just had and just been like, we want to get in like whatever we can possibly do. Um, and it was a long shot. It was also, I just know that they're, they're very careful of their cap table.
You could just see it. Like that's something, something of their pride, like their pride full of it and all these things. So you don't want to just take random checks from random people, but I'm like, maybe I can pull the money thing. Cause we can't do that personally. Um, so then it kind of just went into this whole waiting thing and he's like, you know, like I'll, I'll see what I can do and whatever else.
And it ultimately ended up like falling through and in the interim, like what. What we did was we created just like tons of content around arc. Like we literally took these conversations that we were having with people and, you know, recording videos and pushing out these arc videos on Twitter. And they were getting like, in some instances, 10, 15, 000 views, like, or impressions or whatever else.
And some of the videos, like 4, 000 views, like our most viral content in our little space of like software, it was, it was that. And I think it was just like. We were just doing everything we can do to support them. We were creating content around that, literally spending our time doing this stuff, spending tens of hours doing this together and pushing it out.
Um, and then just continually asking them, like if there's ever this opportunity, and I think we were literally just their biggest fans, like in every sense of the word.
Andra: They, did they say no three times? Was there a second? Cause I can't fully recall. Yeah.
Alex: Well, there was, there was, um, it kind of had come up again and it was like, maybe, okay, maybe we can do something.
And yeah, I think it was, it was a third time that went through that. It was like, just, sorry, can't do it. Um, but he did say, you have been such big supporters that like, I promise we will get you into our next round. Like I, like I, like, yeah, that was the second time. I think so. Yeah.
Andra: Okay. Yeah. So then some time goes by and Josh invites us to
Alex: have a call with him.
Wait, wait, wait. So we get an email from him and no subject line and it was just like, Hey, like I, I Just wanted to say that I appreciate you guys. And like, I don't even know who you are, like, let's jump on a call. Yeah. Um, there was something too, like he had sent, you know, uh, uh, Twitter message. Cause of course, like, I'm just like, you know, bummed out that it didn't really work with the investing piece and then, but he's.
There was a point where he didn't respond for a bit and then he then he wrote, he's like, sorry, things have been so hectic. Like, I'm not ignoring you and all these things like that. And whatever. Um, you know, just spending some family time and things like that. And things are obviously busy. So then, of course, I'm just like, that's like, I feel nothing toward like I like you are absolutely busy.
I appreciate that you have like ever sent me any message like that. Like, You don't have to apologize to me. You should spend time with your face. Spending time with your family is more important than talking to me. Anything like you should focus on you and don't in any way feel any amount of anything.
Um, and I think I had said something like, you know, in time, like we'll, we'll develop a friendship. And my mind is like, like three, five, 10 years. Like I think eventually, like, I, I, I just, I don't know. I just kind of feel like I'm fine with being playing the long game, even with you with becoming a friend or just someone that like that can help in some way.
I don't know, just literally very open ended. And, um, yeah, and I almost in that message wrote, like, at some point would be so cool to just like jump on a call to just like talk. I just want to talk about the vision that you have. And just like, I, I, I feel so connected to it and I just wanted to like share in a genuine, like.
There's so much passion and conviction that I have. I just want to share. I just don't even know what, but I just want to like share it. But I didn't, I'm like, no, I'm the same thing. I'm like, I'm respecting your time boundaries. Like I, like if that call happens two years from now, I'm fine with that three years, five years, whatever.
I'm not going to ask for it. I'm just literally going to like you do you. And then this was where like a month later, again, I think like the tears, like I just got an email from him that was just like, you guys have been like self asleep. Supporting our biggest fans. Um, I just need to know who you are.
Would you be open to just jumping in like on a call? So, of course. Yeah, yeah, it was very much like, yes, whenever, wherever, whatever, like, yes.
Andra: Yeah, and I remember, like, saying to you, you know, you've been building the relationship, like, I obviously want to overhear the call, but I don't want to, like, come up and, you know.
Like, I just want you guys to have like a moment to bond and I was kind of like inserting myself out of the picture and you were like, yeah, I guess. And then when we, it was like a phone call that we had with him and he's just like the nicest person like he is. And he was like, is Andre there? And I was like, yeah, I'm here.
And then the three of us ended up having. Most of the chat and he like yeah asked about how we met and
Alex: it was it was very much like in a sense He was like, yeah, like obviously you guys know a lot about me Like I want to know about you Like I don't know who you guys are. Like all I see is you're just like you are literally our biggest fans Who are you?
Hey, Josh. Hey Alex. How's it going? Good, how are you? Is your wife there? Yeah, Andra is here. Hello, how's it going? Hi, Andra. No, I mostly just wanted to say thank you to you both. I, um, I think one of the challenges of the stage right now is just have Uh, an increasing number of things going on, all for good reason, but I didn't, I'm so, I, I, I've, I've reckoned, I've noticed, the team has noticed how, uh, gracious you two have been, how consistent you two have been, you know, just, you're two of the most supportive people, I think, in our corner, and, um, I've been so caught up in everything going on that it's like, you know what, no matter, there's, oh, I'm always going to be busy, we're always going to be busy, you know.
I want to take a moment just to say thank you to the two of you.
Andra: And through that conversation we had, like, I remember he only had 30 minutes and it was like 10 minutes left. And he was like, you know, I don't want to talk about investing. And then we were like, no, no, no, we want to talk about that. And he was like, okay, there might be another opportunity.
Or there might be an opportunity for you guys to invest, um, if we do, like, what kind of round was it?
Alex: Well, I don't know. It's, it's just more of like, we, we, we might do something. It's, it's, again, it was just this thing of like, maybe, possibly, in a way it's like he's fighting to just try and like give back to people.
To like people that he's seen that have like supported them so much because he's like it it was so heartfelt in that like it was so meaningful to him personally it was meaningful to his team it was just like we see you and genuinely you have no idea how much this means to us we see you yeah and i wish that there was more that i can do But also, you know, having a legitimate company and like kick ass board members and all this stuff like that, like you have to run it like a legitimate company.
You can't just be like, cool, random person on Twitter wants to invest. Do we let them invest? Like, that's not how you run a business. Like learnings firsthand from like. Motion and stuff like that through like YC and all these things. It's like you raise when you raise and you frigging build a product.
When you're not raising, you don't dabble in raising while building a product. That's not what you do. You focus. So in a way, I think it was just like, we probably just got to them in the sense of like, just being selfishly supportive. And like, I want to do something for you guys. I just don't know what I can.
And I'm like, I don't get to just make all of these calls because there's a lot of effects that come from this. So, um, There was a point though that it's like, okay, maybe we can put something in. And I think you and me were very much like, I don't even know if you were super on board at that point, but I was just like, I was on board.
Well to the drew, I said, how much are you guys in for? I said, a hundred grand.
Andra: Yeah. I remember I, that's one of my moments where I was like, that's a lot of money. And I went through all my. You know, many crisis moments of what can be done with that money, et cetera, et cetera. And then I came
Alex: around to it, I think I just felt though that like this opportunity was like almost there.
And I think I saw how much time you and I were putting into Tron, like just supporting and all this stuff that I'm like, this is not a normal scenario. Yeah. And if money can make a difference in this, if we can raise this a bit also just wanting more of an upside by putting more in like all these things.
And Yeah. And I, and I think there's this level of taking it seriously to some degree because it's like it, that is a huge percentage of our net worth. Like that's anyone would say that we are crazy for even considering that. But
Andra: yeah. Yeah. Yeah. So it sounded like we were going to be able to invest again and then weeks go by and we don't really hear anything.
And I think you had sold some stock because you thought it was coming
Alex: up. So, okay. So, yeah, there was another thing that had come up. Um, I guess depending on when we release this, I can, I can say this. No, don't say it. But it can bleep out. I can say it. We can bleep it out. Okay. Or. Yeah. Okay. Okay. Let's remember to bleep it out.
That's fine. And we, yeah, we're, we don't even know if we're going to release this. So if you see this, like, I don't know, I'm just, I, it would be really cool to be able to share this. Um, so of course the same week that this potentially came up where it's like, Oh, a hundred grand, uh, well to us, they're like, Hey, we had something come up where, you know,
this is a very long bleep. Okay. Well, no, it would be a cut. It was literally, I'm just picturing like, Thank you. No, no, no, no, no, no, no, so, so
this is not a bleep.
Um, so
Andra: I'm just picturing the listener being like, what happened? And it's just like
Alex: me. So we said, yes. And that was where I also said, I kind of want to put a hundred grand in. And you're just like, what the fuck is going on? Cause
Andra: this was, well, first of all, you wanted to put a hundred grand into both. So we 200, 000 and that's when I was like, this is actually a down payment.
Like if we did want to buy real estate and yeah, I, it, it, that took me like three days to come around. Yeah. Two. Yeah. But we couldn't put a hundred grand into the other company, we could only put in fifty. So,
Alex: yeah, there was a level where we were, we were kind of eating into like allocation that didn't exist.
Like it was just like, yeah, you know,
Andra: so we, yeah, agreed on the amount. We like stretched our comfort zone. You sold stock because you needed, you needed the cashflow. You needed
Alex: liquidity. I had to. Cause yeah, we literally had to wire the money that like that week. Yeah. And then we, there's just no, there's no liquid cash at that point.
I had to sell a hundred grand of safe. Yeah. Like,
Andra: yeah. And we're feeling like any minute now, because normally when you angel invest, it's not like. Cool. In six months, we're going to need the money. Like you basically find out that you can invest and then normally get like 30 days,
Alex: less than 30. Oh, sometimes it's, it's two weeks time.
It is literally like, we already have the person leading it. Yeah. They're wiring the money on this date. This is where everyone wires the money. We expect to have all the money wired in within three days and then it's closed out. Yeah. So you can't also being a small chat, like. 50 grand, a hundred grand.
It's a tiny check when you're looking at a series B. So this would be ARCs, for example, their series B, like we are tiny checks. And what we learn through some of our friends here, um, they said that angels don't get into series B like that, like that, that's reserved for VC. And often those rounds are fully filled out by the prior investors.
Cause there's, there's pro rata rights, which essentially means. If I invested a million dollars into your company and then you're raising your next round, I say, let's say that I bought, um, half a percentage of your company, say that I want to still own half a percentage of your company. Once they distribute more shares in the next round, everyone gets diluted.
So that half a percent, let's say that, that it turns into like 0. 4 percent instead of 0. 5%, whatever. Um, if you want to keep that 0. 5%, that means you need to buy that like 0. 1 percent of the valuation of the company. So whatever it's raised to, you kind of like that's prorata. You're reserving the same percentage ownership and you're kind of saying this dilution doesn't need to happen, but I'm giving you more money to keep my dilution away from happening.
So. What often happens in these following rounds is there's a lead investor, maybe it's external, maybe it's internal. Um, and then all the other people, cause you had people that sometimes put an 8 million into your a there, they want to keep their pro rata rights. They want to keep their dilution from happening.
So they will put in, in that case, they need to maybe put a million dollars to keep that. So then that's a substantial amount of money. So, so someone might raise like 15 million, the lead might put in like 13 and then you have just like a couple large VCs that are putting in like the 1. 5 to keep their pro rata.
That leaves 500 grand of allocation, which is not a lot of money. So then when you go to your biggest supporting angels and you're like, Hey, um, we didn't give you pro auto rights, but do you want to exercise those or even potentially put more in? That's where things get really difficult. Cause I'm like, cool.
Put a hundred grand in. It's like. We don't have like, we can't let you do that. Also, we want to find a couple more strategic angels, like CEOs of certain companies that are more strategic or something like we're, we're saving some of this tiny allocation that we have for these people. So we can't just give it all to you in a way.
So then that's this level where we're literally being squeezed out to this point where we want to give more money. But what I've learned is even getting access to the series B for people like us does not happen. Yeah. Yeah. And I think that was an eye opening thing. That's like, okay, shit, we should actually put sizable money into this then.
Yeah. In a way. Yeah.
Andra: It's a very interesting turn of, I guess, events from the typical like startup world that you hear about in a way of like you're raising money and you're pitching investors and like a company just should take money. In a way, but we're seeing a very different side of it because this is a company we want to give a substantial amount of money to for us and they're saying no,
Alex: obviously not every deals like this, but the thing that anyone says, especially someone like raising a fund, they're like, yeah, everyone says that there's no room like you, you know,
Andra: yeah, like, you know, some companies when you're Raising money, it's also like you are acting as a salesperson, so you want to create FOMO.
And it's just funny sometimes like listening to, yeah, like people that are trying to create FOMO and then like the companies that are actually like giving like half FOMO because you want to get it. Okay. So to wrap this up, I guess, what are like our learnings from this scenario? I guess we talked
Alex: about some of them.
Yeah, I mean, I think the, the thing that I've done throughout all this in a way, and, and, you know, maybe some of it, it just stems from being in business and I've been told no somewhat like you try to sell a customer, they say no. And when you're, when it's just yourself and you have to deal with that, you deal with a lot of rejection.
So in a way I'm like, cool, like, yeah, I reached out to Josh and I was expecting to get rejected and I'm actually like. You don't, you don't, you know, when, when I got teary eyed, for example, it's like, that doesn't come from you expecting that comes from you expecting to get rejected and not, that is literally like an emotional hit to you.
So. But that doesn't mean that you don't try. So it's like I'm gearing up for rejecting, expecting rejection and still pushing anywhere anyway. Are you saying that
Andra: you were moved that you thought you were going to get rejected and you didn't? So you're moved by like your
Alex: own persistence? Yes. There's, there's a little glimmer of hope that was given out when I was expecting zero.
Yeah.
Andra: And. I guess there's another example with Mercury that comes to mind when we're talking about like being told no and being told what you can do. And I think like, this is, this is what I love about entrepreneurship in a way, because I think like, yeah, there's rules in life when you know that you're like.
Guide it on. Yeah. And then there's like everything else. And I think like if you're entrepreneurial, you normally are living in the everything else world. Yeah. And you're trying to kind of, yeah, like bend and mold what exists. So with Mercury, which is one of your investments, I didn't even know what Mercury was.
I wasn't using it at that point. I didn't have any connection to it. So yeah, it's a. I know they're not supposed to be called a
Alex: bank. Okay, so they are a banking technology. They're essentially a technical, uh, layer atop of a bank. So they have banking partners and they're essentially a business bank. Like you, like if you need business banking services, you can use Mercury or you can use a traditional bank like Chase or something like that.
So Mercury essentially partners with the proper bank and the bank is the custodian of the funds. And Mercury is literally the technology layer on top of it. So I'm, instead of interacting with this really shitty, outdated user interface, that is a traditional bank, I'm dealing with a beautifully modern, amazing integration focused interface that just works so beautifully well.
That's what Mercury is. So. I was using them in this whole myriad, like I'm not going to go to the depths of it, but I, I use almost every single business. Neo bank, neo bank is essentially was the term of like a technology layer, a top of a bank. It's not a bank, that type of thing. I was using all of them, seed.
co then as low, like they had both gone under. Did not lose my money from that. People are so curious about that. I had probably 30 grand sitting in my business bank when as low went under and I didn't lose that money. It's like, cool. We're like, you know, either the acquiring bank gives you an account and then you have your money there or they'll send you a check for that money and you did need to figure out where to send it off to or anything like that.
Yeah. Then I ultimately found, um, bank Novo and then Mercury and I was more impressed with the QuickBooks online integration with Mercury, which is something that's important if you are doing your accounting and you need your bank transactions to reconcile within your, your accounting software. So I was just like, okay, they are a modern bank.
I also didn't, when I first found them, I was kind of like slightly skeptical. Cause I'm like, it didn't feel like there were necessarily people behind it. I didn't know what was going on. Um, so yeah, I use them. I transfer all my funds over to them and I use them for about a year. Um, and then they did a community round, so through this company called WeFunder, they, this is like a crowdsourcing thing.
So you don't necessarily have to be accredited, but there's, you know, to put a certain amount in, you have to be accredited and all these things like that, whatever. But what they did with this twist, so typically a community round means anyone can put money in. What they did was they put it out there, they're like, we're going to raise like 5 million.
But from our customers, only our customers, you can, if you're not a customer, you can't be in it. And then in addition to that, it was literally like you need to sign up to refund or with your business email address so we can verify that you have an account with us, that you've had an account with us. And the amount that you could put in is relative to how much money you have banked with us.
So at that point. I had had about 200 grand that had come through the company. This doesn't mean that it's like money sitting in your bank account. It was like how much money had flown through. So that had put me, I think I'm the lowest tier of what I could put into this refunder, which was like 1, 200. Oh gosh.
So that here I'm coming from this place of like, I believe in it. Like I, it was an immediate, I'm in how much can I put in? And. I'm like, Oh my gosh, I can only put 1, 200 in. So I wrote to them and I was like, is there any way that I could put more money than this in? Like, please. I'm like, whatever. At that point they were already oversubscribed.
They had like more than, I think they had like 8 million of interest or 7 million of interest or like soft commits on the 5 million. So they're like, we actually have to like be not only strict on these, these thresholds. Like our highest, our customers that have banked the most amount of money with us, they're going to get the most allocation up to, I think the most that someone could put in was like 30 grand, but you had to have like tens of millions of dollars that have gone through there.
Um, so I asked them, they said, sorry, like it is, we have like to the point where we're even backing away from that, where we have to give people less than they even asked for. So I said, okay. Um, I noticed when I was trying to transfer money over to. We founder for this though, it said, how much do you want to transfer over?
And I'm like, well, I know they're letting me transfer 1200, but what if I put 10 grand? So I put 10, 000 in and it let me trigger it. And I was, and I literally transferred 10 grand from a bank in to it. And I'm like, it let me do it. There's no way they're going to let me like put that money in though. I know they're over subscribed and all these things like that.
And then just like, obviously time went on and they had to figure these things out whenever else. And then I just got an email like three or four months later that just said like, um, we like, thank you for your 7, 400 investment. And I was like, no shit. They, they like, they took, they took, they did work, they took more money.
And then they sent me back like the three grand or whatever, the 2, 600. They just sent it back. And I'm like, I got in for like, yeah, I wish that I put 10 grand or even more potential in it, but I'm like, I got in for more. Solely because I just tried like I just I literally people humans told me no their terms told me no I the systems let me and Maybe they made a mistake on their end and let me in and I was cool with that.
Yeah
Andra: You've always gotten along better with software. Anyway,
Alex: yeah, it seems to understand me more
Andra: Yeah, so I think I'm learning from that was like you just like took a little Risk.
Alex: I thought inch. Yeah.
Andra: Yeah, you're being cheeky and then you got more allocation, which is cool. Yeah. So, yeah, we're gonna keep, we're gonna keep working on ARC.
Maybe we're gonna release this. Maybe we won't. Yeah. Uh, episode. We don't know what we... Can release right now. So if you're listening to this, whatever it is, it means we got the thumbs up that we can. And yeah, we, we really hope we do get to invest. We have a verbal commit that we can invest in their series B, but we don't know when that's
Alex: going to be.
What we can put in, like we don't know anything about anything. It's just, I think it's just like, he's yeah. Josh, like Josh has been amazing to the point where he's just like, I, I'm sorry, I've tried and like, I, I've learned a lot through this and yeah.
Andra: So what's the line you send to him? Let's close off with that.
Alex: Oh, um, the deal's not done until the money is transferred. Yeah.
Andra: Yeah. Until the money's wired. Money's wired. Yeah. So we haven't wired the money. We're not technically investors, but we are like still cheering for them. We're using obviously the product every day and I don't think there's going to be a point in the near future where we see ourselves stopping.
Actually, I think they
Alex: just did a release. We should just go look at that. I literally. I literally. Today the 25th. I can't believe we were on. Oh, it's midnight. So today they're releasing something big. Okay. Yeah. All right. Let's go.
Andra: Okay. Okay Bye
Alex: Coming up next
Andra: we're sitting with Corey who is our video producer. I don't remember
Alex: how it came up Yeah, I reached out on Twitter somehow weather came up, right? Yes, and you said there's like a storm or something I was like, oh my gosh, there's a storm here, too. Yeah, and you're like, yeah, Austin's crazy.
I'm like, oh my gosh I'm not far
Andra: from You guys have known each other for a long time.
Alex: I think one way. I've actually been listening to your podcast for years. When did you start listening to that? Probably ten years ago. We can speak the same language. For the most part. I'm not an angel investor. Yet. Oh. Oh snap.