Josh Wolfe, Lux Capital VC: “We fund only 1 in 1,000 Founders” Socent Problem?

in #tech4 years ago (edited)

Josh Wolfe breaks down the strategy at #LuxCapital #VC #VentureCapital in an interview on the big media.

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(Can watch the video on this link)

I think it’s a good interview & think LUX and #AlphaOmegaEnergy are definitely a match with what Wolfe is talking about , however after emailing them 2x, calling them 5x leaving messages & soliciting them on social media a number of times to no response at all, I think our #1 in human history #Breakthrough #CleanEnergy tech & portfolio, like so many others, will be kept on the sidelines.

AOE set up with the #1 Product Market Fit in History, #1 TAM in Human History, #1 MegaTrend in human history, so, how is LUX going to “Make Science Fiction into Science Fact, when you have 1,000 guys pushing also for that and you refuse to fund anyone but 1?

I don’t want to take away from LUX’s positive points, but, the very important ‘science fictions’ like “Achieving Real Capitalism” “Robust Equal Opportunity” “Low Poverty” “Global Poverty Reduction” “Global Iniquity Reduction” Those CHARGE IT ALL big think goals, with just 1 in 1,000 that’s just not happening…..unless they at least choose this 1 in 1,000.

Let’s TALK about science FACTS for a moment, (which require FUNDING them in order to not just be a TALKer about it) The world needs power more than any time in history with 4 Billion with no electricity for even clean drinking water or toilets, and globally we need 20X the power we have now to get everyone electrified to the industry 4.0 & #5G tech levels, and everything has to be replaced with #renewables.

#PGE the power monopoly retailer in #California just came out and made a commitment to do sweeping power black outs on the people for the next 10 years. This is the science Fact folks. LUX Capital’s immediate reaction should have been to dig us up & in reality everyone’s.

Adding to the science FACTs are 20 Million people are DEAD each year just from breathing air pollution and other pollution & related illnesses & when factoring in all those downstream from the energy problem its over 40 Million.

Brazil’s energy prices are up 500% in just a few years. Haiti doesn’t have power, Bermuda, Puerto Rico energy systems are destroyed, 6 Months of sweeping blackouts in Cambodia this year in 2019. This is Really science fiction and it’s like a horror show for 50% of the human population.

But despite these incredible merits, this probably just isn’t going to get any play with a LUX Capital’s level of “pickiness” in choosing Just 1 in 1,000. Real leadership for this world requires more than 1 in 1,000 it requires 500 in 1,000. At least 100 in 1,000 & funnels of programs for those others to slot into. Sure, that’s not LUX’s obligation at this point, but they can do more, we all can do more.

But, Let’s see if they will respond to this article. I didn’t give up on people promoting honesty and clean business and Science FUTURE so easily.

Once again, AOE's BizModel & USP is this:

We change over our I&C B2B Clients from Toxic Energy to Clean saving them 20% Electric costs with our world leading AOE power service. We provide 24 hour base load electricity. We install completely free of charge, free maintenance and monitoring for life on a long term power contract.

We manufacture in house. Our main client among dozens of industrial requests waiting for us to get the investment to be able to deliver, is our own in house #Bitcoin mining data center which we already built from zero and ran for a year.

**Our data center wants to grow exponentially & is a secure power client for the long term. Everyone we have talked to wants our service, no one has said no in 4.5 years. But they aren't VC and with VC saying no 999x out of 1,000, you can see the holdback on humanity this kind of problem has been for Billions and Billions of people, and all the Devorgs & "#Impact" Pile on funds in the world have just not made it any better. **

No one wants to be first. No one has got the balls to Make #Science Fiction (The talk on stages in SV) into Science Fact, which = FUNDING to the #Tech4Dev innovators saying "I got it man, I busted it all. Baby step then, but DO IT."

AOE Also has the #1 Electric plane in the world tech, 2,000KM all electric carrying 900 Kilos of cargo carry contract. We will fly it inside of our 3 Million Seedround and can manufacture in probably 8-12 months.

We have a huge list of tech but one at a time we have to do, and don't need any but our power service to BB #IPO and already got the value from #Softbank on just that not mentioning any of the others at all.

AOE Power System 200x the Energy of Solar.png

The most important notes from the interview:

“We work on Taking what is science fiction to science fact.”

“We make #Investments in the outermost edges of science which is possible, but possible.”

“We don’t like things where it’s “This time is different”

“We like when people are talking “It will rot your brain” so things like video games, chat rooms, television, science fiction. (Vaporware)

“These have really been the Progenitors of new #innovation.”

The interviewer asked: “How many ideas do you get and how many do you say absolutely not?”

Josh Wolfe: “It’s 99.9% of the things you are saying no to”

(Governments, are you seeing this? No fault of LUX, but this is ridiculous from a societal level. Governments need to start giving LUX money to score these businesses on 100–200 points, & run a government VC fund where they can at least up this number to the top 10% of businesses that can do something at least to get to the next step on say, $250,000.

Governments can take an equity cut 5–10% w’ 100% of shares as collateral until principle is paid back at 150%, keep the 5–10% equity for the tax bag & reinvestment long term, and set up a ‘business front office suite’ for them (websites, cards, apps, shirts, etc) and then a centralized spend governance, legals & all the other early stage things, for super-efficiency in a processing center back office similar to a super-accellerator. They can do this for accelerators also.

“You get 1,000 people that come in and maybe you’re taking meetings with 10 of them and you’re only funding 1 of them and only a fraction of those don’t work out.”

“It’s really a tragedy.”

“We don’t throw out a lot of money and don’t do a lot of batting.”

(This is so so so broken folks, obviously. if you have to look at 1,000 businesses to find one worthy of funding, you are obviously doing it very very wrong. May I recommend the 1 Million + #Tech4Dev Innovators with perfect product market fit, fast to profit, and with real meaningful Impact and so many of them living a Purpose Driven Life?)

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“We aren’t investing in 5 competitors we are investing when there are maybe only 5 companies in the space”

“We like when they have some Scarce technology, a scarce talent pool, high engineering barriers, they have intellectual property”

ETHOS

Reporter: “How do you determine between something that Sounds incredible in theory but might not make it in practice vs something that will succeed?”

Wolfe: “You want visionaries, people that are really thinking bold.

“But you also want honest people (Choose #Christians then)

“There are a lot of people that are more on the fi than the sci (fiction not science. So you baby step, you governance, you control spending, you take 100% shares as collateral until paid back, you institute sensible safety measures, but with a Billion dollars you squeeze your balls you snort your nose you flex your muscles and you take the Fng shots, especially at the values based players.)

“They are more on the fiction and the hype (Change the method, ie we will do it if it’s covering xyz, abc, here are the types of ways we can do this etc. 1 in 1000 is not going to get Science Fiction it’s getting a whole new one called the Blackness of space.)

“The #1 question you ask as an investor is “Does it work?” (Try it)

“There has been #Theranos and all types of frauds, They get you when the cost of the capital is high due the hype, And then you usher in really bad actors. (So what’s your model to make sure it doesn’t happen again? Not funding anything is not the answer, GOVERNANCE & structure is the answer, & how about a backstop of someone with some VALUES? that mean something more than themselves?)

“FOMO is shifting to shame and being suckered. So you want to find the attributes of fraud, people decorating boards with people of pedigree. (Cryptos all do this, never seen a #Tech4Dev do it, though they nearly have to to get anyone to even look. LUX needs to up their game and start talking about the fact that you pretty much have to do this as VCs only fund 1 in 1,000 and guarantee there are more worthy businesses in there than 1 in 1,000)

“It’s Hard to know if they are visionary and delusional, if they are fraudulent and malevolent, or really well intentioned.
(Really? Why? Thats a very Bad judge of character! Hire a panel of psychologists and some Christian counsellors. If the person hates the Christian Ethos, heart and soul, a life of service to the poor versus service to the self, don’t fund them. If the psychologists can’t find anything wrong with them other than steroid high levels of ‘fighter ego’ charge, get it done go getter, snarl at incompetence & laziness, & a little masculinity, then take a shot for mvp at least or the basic + (like 250K).

AOE Solar Orphanage.jpg

If you don’t, don’t talk like you are for Big Ideas. Maybe a new slogan. “1 in 1,000. #SocialEquity isn’t our thing.”)

“So you put a little money in and test it out and see if does it work? and if it’s going well and you avoid the commitment bias and then you pull back your capital if it’s not working.

#1 Question is “Does it work” (AOE just elevated to top 800. most of those 1,000 will work, VC & bad founders will F up the rest)

“1/3rd are total zeros (AOE just elevated to top 666)

“1/3rd you get your money back (AOE just elevated to top 333)

“1/3rd you get maybe 10X (AOE just elevated to top 100)

“So you end up with about 3X return.

“The Founder has to be responsible in fiduciary (up to top 50)

“There is a lot of irresponsibility in raising the hype. (top 30)

“It has to be real, it has to be near term, and if you’re taking money from investors it needs to be honest. (top 10)

AOE COMMENTARY:

  • Lux is talking here like they invest in “Fun looking vaporware.” Cool tech & consumers love it but will it really make a difference in the world and will it really actually be a quality business? 97% of consumer tech startups fail and fail hard and fast btw, get off the shitware! Probably there is more to it than that, let’s hope so.

  • They are funding ai by this video but I’m not so familiar with their portfolio, but I shouldn’t have to be, especially with such a quality business model & big traction setup like this. “#ARPA/DARPA looking” though, and Breakthrough CleanEnergy is certainly a mix with that.

  • 1 in 1,000 is incredibly low. They should be offloading that dealflow to someone.

  • He is right that it’s incredibly unfortunate. They have the right to do as they are doing but boy there should be a scoring system publicly so others can come in and help out. This seems very inefficient to review 1,000 businesses and only be able to choose 1. Society needs to categorize more of these so the work doesn’t have to be done over and over by every firm and when it’s reviewed at least they have the findings of the previous VC to work off of, it would save time and help founder’s adjust & improve. LUX could have a DB where founders can link to them also, would be good for marketing.

  • “My LUX deal score is xyz and here is my link” This would be great for dealflow, and create more pile-on opportunities. Wasted opportunity right now it seems.

  • They also ‘owe it to society’ to push lawmakers to make public VC funds that can take on some more risk perhaps and fund another 10–50 of these a year. (Okay my activism is pushy on this but many should be pushing this because it’s just not happening for 999 founders.)

  • They have a Billion dollar fund, 250K to 100 companies is only 25 million. it’s 2.5% only. They should be able to fund at least the top 100 in this way and fund their 1 smasher also. Government could give them the funds to choose these “top 10%” (It’s only 2.5 million after all and fund 250K with a full VC review report on the project.)

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ONTO AOE. AOE works, AOE is Real, AOE is “Near term”

  • AOE will profit in Less than 1 Million Dollars. Lux has 1,000 Billion. Give us 1 Million (0.1%) & Give your 10–30–300 Million Profit in 5 years at our #Softbank pricing discounted by 90% just for you, back to the #Tech4Dev innovators. I’m ready to sign these right terms. Ill baby step with just 50K also & you can keep 100% of the shares and equipment and in fact ill even sign over all I own.

  • Conviction, you forgot about financial conviction from the founder. Ask our Angel investors and contributors. The world doesn’t have time for 1 in 1,000 Science Fiction, we need Science FACT. By the way, Science Fiction was never slow, and never 1 in 1,000 unless managed by the Imperial Empire.

  • We have videos, sites, endless social media posts for 4.5 years tracking our progress, blogs, built an incredible tech office from nothing, gained a “shocking” 434 MW in demand backorder traction over 15 nations from nearly zero advertising other than trade groups and conference attendances. Won awards, pitched across 5 nations in 16 cities & it’s all been blogged out for the whole world to see it all.

  • AOE can build profit in under 6 months with the funds. 9 at longest, & we’re already ready to go IPO as we pre-arranged 14 Broker Dealers & 6 underwriters for it. We can also near term 18–24 months IPO. With 3+MM we can race it in 12–15 months even.

Josh Wolfe said they look for: (These are AOE features)

  • Scarce #technology (3,314 techs incl: #1 FuelCell #1 Electric Plane #1 Nuke Replacement.

  • A scarce talent pool (Not many Breakthrough Energy Engineers)

  • High engineering barriers (Hardware much more secure than software)

  • They have intellectual property (3,314 new techs) all can be registered once we have license buyers & deals ready through agents, tech salesmen, or buyer firms etc. (this would take long though so best to just get to profit first & scale up 150+MM in cap prior to this)

  • There is Almost no one in the Breakthrough CleanEnergy space at all outside of California & nearly no one who has commercialized anything at all. We beat them all in tech, and there is no one in our markets doing anything.

AOE DEEPTECH.png

“You Want Visionaries someone thinking Boldly”

  • We Already sold 14 BDs, including Softbank to IPO for 1+BB on 50MM, 397MM ARR in demand backorder over 15 nations. I’m not sure it gets bigger than Change The World in the undev nations HydroDam & Nuke scale projects already obsoleted them both.

  • “You want honest people” This has been a constant problem in Startup funding. VCs have endlessly backed selfish, self-worshipping materialists from the very Liberal Ivy league societies & stayed away from Mission Oriented Founders & #SocialEnterprise types and Christians. This is why they are having such a hard time with “Honesty” and if they wanted to change that really what they have to do is start funding the values oriented conservative leaning people. It would flatly eliminate these kinds of issues 98% of the time.

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“Attributes of Fraud:”

  • AOE has no “Fancy board members” like the con scams always load up with, making white papers full of fake faces just to look good and sell 100 million in investment. We don’t look “pretty” we just have what it takes.

  • Josh says “It’s Hard to know if they are visionary and delusional, if they are fraudulent and malevolent, or really well intentioned.”

I can’t help but completely disagree with Josh here. I think it’s not so difficult to tell. The fact that VCs refuse to recognize basic social profiling, psychology, and sociological profiling due even possibly no fault of their own coming up in incredibly extreme-left leaning societies like Silicon Valley where the people are widely known for being very fake, materialist, selfish, sleazy, & self-serving as living a literal life of a self-God, versus the profile of a Christian mission oriented selfless social enterprise founder or a #socent founder trying to do something good for other people & living “#PurposeDrivenLife” with actual track records of doing it or trying to, you are going to get two very different outcomes in general and I would say obviously the data will lean very hard in one direction on this factor, that’s just how humanity works.

You obviously just don’t have these kinds of founders lying cheating frauding scamming misleading people and can check them out more easily than others as well by talking to them. They are all straight shooters, God is watching their back, they are often noble, charitable, that’s just who they are and what they believe in. There are some odd fakers, but the “risk scoring” of such can be well ascertained and you can baby step in with some good governance.

  • It seems more and more often VC’s now are voicing these concerns about lack of values in founders, & that liberal society is producing a lot of malevolent personalities. However you still don’t see them shifting to funding the #Socent #Tech4Dev Innovators, or mission oriented guys & it’s not talked about. It’s a wonder when they will finally get it and start to adjust.

Here is a Newsflash for you all, There is NOT ONE SINGLE CHRISTIAN VC FUND. And The ONLY ONE on the internet is an advance fee con artist scam. The market is a total freaking vaccum of lack of support with MILLIONS of well intentioned guys with no one to fund them.

Wake the hell up and pull the head out & start to get responsible with the funds entrusted to you to be a good steward with. Who the hell are you funding and why such a hard steer away from funding the right people? (This goes for all the rich, who have been very disappointing in none I have ever spoken to yet have had ANY REAL philanthropic interest at all in life to date. Those who do are so damn successful you just can't get their time, and RARE, and too damn quiet to find them. And contrary to what you think, no one is name dropping you except in SV, LA, NY and DC. Rest of the world? Ha no, no, welcome all the way back to colonialism.

“So you put a little money in and test it out and see if, does it work? and if it’s going well and you avoid the commitment bias and then you pull back your capital if it’s not working.”

  • AOE is looking for baby steps as alternative to a full seed round so this would work well if LUX actually valued the concept of “Making Science Fiction Reality” instead of just 1 in 1,000 fundings which let’s face it is nowhere near pushing any kind of envelope to achieve that on any level. My opinion but you just won’t out-innovate me on this point.

  • Investors Can baby step us with 50K-120K-240K-480K and see how we do, if it’s not working then can pull back. We have long since offered for the investors also to plant staff to run the finances from the inside for no risk at all. We don’t care, we just need the chance, again, only 1 in a 1000 get it and there is only one life here so you have to make it work for the investors. Our deal works for everyone & goes far beyond the call.

  • AOE ran on only 184K for 2.3 Years of work w’ up to 16 Full time staff including buildout of a 110K IT tech office from this money from absolutely nothing. #LeanStartup like this you just can’t get done by anyone with; 1. Malevolent mindset and 2 high cost nations and 3 someone who doesn’t have it on the tech side as they would have quit to do something else.

Its a litmus test, one of many AOE has passed for investors to make Character calls on in addition to Being a Christian Mission Oriented Social Enterprise for all to see flagrantly self-sacrificing to help others, with the most solid business model design that’s possibly on the choice list. We have always offered gold standard governance also. We have to have it to IPO where we can get access to the 1000+ #Ethical, #Sustainable, #Climate & Small Stock funds & #SDG aching to find something to pile into with meaning to beat the 1.32x over 10 years of the #SP500

  • We will Profit in 1st year in less than 1 million I repeat

  • LUX Capital has a 1+ Billion dollar fund. The risk is next to nothing to plant a staff for say $50,000 at USA salary rates for a year, $5K-10K for a local, (plz choose local, don't waste our $) with just $170,000 for 2 baby steps for a total of just $220,000 and then they can pile on “once it works.” It will work on 50K as we have 90% of the equipment already and just need to finish. But on only 1 in 1,000, despite the best energy tech in the world, it’s doubtful the world can get their hands on these “Impossible services” the Neo-luddites talk like because a LUX probably just won’t do it.

  • So again, here is society, 999 Founders with no funding, the world without the energy we all need, and who knows when we will ever get it.

“So you end up with about 3X return.”

  • AOE is giving MINIMUM 3X return in a Fixed rate Debt note, invest $1 get $4 back. We’re doing this due to VC demanding to get 3X just like Lux is or they won’t invest at all so why not just guarantee it in a note for our investors? Again another litmus test of non-Malevolence.

  • To add to that Litmus test we also added 100% Collateral in 100% Shares signed over and all assets until they are paid back. Hows that for Honest? We will sign, we signed already. We even signed a $1,000/m CEO salary cap for 12 months. I spent about $680/m of that and lived in a $30 a month apartment like the locals. For real, I even have pictures. Many witnesses.

“Have to be responsible in fiduciary and there is a lot of irresponsibility in raising the hype.”

  • AOE has never bought advertising, never done a party other than singing at a KTV for the staff, or a dinner, bowling at Christmas time, two big #Orphanage #Christmas parties (Under $600 total each each in toys and food) and one staff lunch each 2 months from BK. We don’t have access to capital to Buy hype and you have to buy it, no media will ever write about you unless you buy, & not being drunks partiers or gamblers well, it’s just not our “#ETHOS” We don’t need hype we have a huge backlog. We need capital & blowing it when 999x it’s a no, well that’s clearly not an option.

  • AOE has every receipt in paper, picture, and on google drive (behind on it slightly) There is no better fiduciary start than we had in this respect. And every dollar from the same Bitcoin wallet also searchable.

  • AOE lasted 2.3 years on a meager 184K for 16 Full Time Staff, 110K in office, web, app, shop, manufacturing, & install build-out costs, There is no one more responsible in fiduciary than AOE, never even heard of such.

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AOE is open for calls from any sensible person who wants to help, support, namedrop, refer, ask some questions, vet us for investment, or get ready for the pile on. Feel free.

AOE has the best tech in the world in a number of categories, is open, transparent, accountable, and has the Ethos everyone should be getting behind and supporting and promoting.

Change The World, in the right priorities undeveloped nations, FIRST.

So, We ARE that 1 in 1,000. 1 in a MILLION. What excuses could they possibly make. Well, they can STILL make 1,000 of them. Or, they can make the choice and sign our deal, and light the ignition, of CHANGE THE WORLD CHARGE.

LUX Cap, and others, 4+ BILLION, are waiting. Now, what are you gonna do?

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