Episode 60 – We Need a New Playbook with Derrick Morgan

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Derrick Morgan, former Tennessee Titans linebacker and founding partner of KNGDM Group, believes that community roots are incredibly important. 

That’s why after retiring from his career in the NFL and beginning an impact-focused fund, Derrick Morgan and KNGDM Group sought to be an example of giving back and building resilient communities. 

Hear him describe the importance of hope and resilience for life as a faith driven entrepreneur and investor.


Episode Transcript

Some listeners have found it helpful to have a transcription of the podcast. Transcription is done by an AI software. While technology is an incredible tool to automate this process, there will be misspellings and typos that might accompany it. Please keep that in mind as you work through it. The FDI movement is a volunteer-led movement, and if you’d like to contribute by editing future transcripts, please email us.

Derrick Morgan: I would like a year for year five, twenty five, twenty six years old and already getting my MBA. But I was like, OK, I’ve got to really start being way more intentional about how I’m set myself up for after the game. And so moments like that in conversations like that, like really helped propel me and position me and like really helped shape my thinking on how I was going to do just that. And so I’m thankful for those words from Takeo and I feel like I took advantage of my time in the NFL and a really good way.

Henry Kaestner: Hey, everybody, welcome to a very special crossover podcast between the Faith Driven Athlete and the Faith Driven Investor. Our guest today is Derrick Morgan. He’s the managing partner of KMG, D.M. Group, just like you think, the Kingdom Group. Before his career as an investor, Derrick played nine years in the NFL as a linebacker. During that time, he kept his sights on life after football and he was inspired by the idea of impact investing. Now he’s leading the charge and opportunity zone investments while also encouraging professional athletes to begin to think long term about their use of capital. You may have heard him speak at the Faith Driven Investor conference, but you’re going to love the full conversation that we had with him.

Henry Kaestner: Let’s listen in now to Derek. We’re so glad to have you on the show. Thanks for joining us.

Derrick Morgan: Yeah, I appreciate you guys. Glad to be here.

Henry Kaestner: Yeah, we’re going to talk football. We can talk, invest in and excited about all that. Before we do that, though, as we do with all of our guests. Love to hear about your early life. What was it like growing up in the Morgan family? And when was faith introduced into your life?

Derrick Morgan: Yeah, I was actually a part of the Swiger family growing up. Yeah. My mom and my dad, they split pretty early on and was raised primarily by my mother, then my grandparents and talking before we jumped online here. That about my upbringing the first couple of years was primarily with my grandparents and they lived in Amish country Pennsylvania. Right. So right outside of like Lancaster area, you know, I used to get babysat by an Amish family, so I was riding in the horse and buggy and like on the farm. And so pretty unique, you know, a couple first couple of years.

Henry Kaestner: It’s not like they just parked in front of the TV and just tell you to be quiet.

Derrick Morgan: Oh, no, you’re out there with the animals and you’re actually, you know, in nature. And so then we transition to a different, very different environment where it was more like in the city. So public housing and it was a very underserved community. And so I kind of like seeing both sides and have a unique perspective on different walks of life that I’ve been encountered with. And so, you know, my mom, my grandparents really instilled faith in me from an early age. My granddad was a minister. And so I grew up in church. I used to catch a bus to church. Sometimes my mom couldn’t make it, so I was always searched. So I had that foundation that was set for me and modeled for me from an early age.

Henry Kaestner: Yeah. So tell us, when did you start playing football and when did it transition into something you knew that you loved and you had a future in it?

Derrick Morgan: I started playing football when I was nine, and I remember it because I was bigger than most the other kids and there was weight classes, right? So I remember it was like one hundred and twenty pound weight class and maybe I was 10 or 11 at the time, but then I would never make my weight. And so I had like this weight anxiety at like 10, 11 years old because I knew it every game you’re gonna weigh it. And so we decided, you know what, I’m just going to start playing up right now.

At 19, I was playing with like 11 and 12, 13 year olds we thought that’d help me. Right. And so that’s when I started. And really, I would say like sophomore year high school is when I really start focusing on, you know, getting a scholarship from the game of football. Like, to me that was like the Holy Grail. Like, if I could go Division one and get a scholarship, like I made it right. So that’s where I put all my focus. I stopped playing baseball, stopped playing basketball, and I just went all the way in football. And so it worked out. God blessed me with a great high school career, ended up being the number one player in the state my senior year and a lot of offers on the table ended up going to Georgia Tech. And so from there, really the rest is history. And I was able to play nine years with the Titans, same team throughout my whole career, which was a blessing in and of itself. But I just feel very fortunate, man, that I was able to live out a childhood dream and have the experiences of which I did.

Henry Kaestner: So I want to talk a little bit more about football before we get into the investing, which is something that’s really important to a lot of our audience, all of our audience. You are in the fourth game of your rookie season. You blow out your ACL and all of a sudden life is completely turned upside down. So you’ve been working on this, as you just talked about it, from high school through to college, get a Division One scholarship. You’re in now. You’re in the NFL. It’s the fourth game, your rookie season, and suddenly all that you’ve worked for is turned upside down. What was that like? What was the emotions of heaven? Just orient yourself towards this rookie season being in the NFL and then all of a sudden just turn upside down.

Derrick Morgan: It was heavy, it was very devastating to me, I had staked a lot of my identity, if not all of it, in being a football player, and up until that point, I had really experienced no real adversity.

And so I was out of the way. Right. This has worked so far. Got me to the NFL and everything else is gravy. And when I injured myself, I was in complete denial for literally almost a week. I was like, you know, the MRI is wrong. You know, I can still walk. I ran off the field. So, like, I think I can just get through, put a brace on. I was in straight up denial. And it wasn’t until, like, I was sitting there reviewing with the doctor and he was pointing out like, look, this is where your ACL is supposed to be connected and it’s no longer connected. At that moment the severity of it really kind of like fell on top of me. And from that moment was probably one of my lowest moments.

And I had to, like, really crawl out of that pit. But a lot of the way out was really as a direct result of my faith in God, given me the awareness of my identity and how false of an identity I had built up and being an athlete and how fragile and how fleeting that was. And so I had to really dig deep and really resolidify my relationship with God, because what I had been so afraid to do my whole life up until that point was to say the prayer of “God, not my will, but your will be done”. I was terrified of that prayer because in my mind, all that meant to me was, oh, man, like the complete opposite of what I want to happen is going to happen. Right. So I would avoid it. And I was like, nah, like God. Like I got my own plan. So come on, get on board. Right. Yeah, we all know it doesn’t work like that. And it took that shake up and that wake up call really to reorient me and change my trajectory in life because I was headed down a path of really just self-destruction. And so from that moment on, you know, it wasn’t a instant overnight transformation like I saw in the Bible, like it wasn’t like that.

But it was like man like that was the Genesis moment of restructuring and reshaping my identity. And so while it was a tragedy in the natural, in the spiritual, it was really a miracle because I feel like I’ve always had a lot of people praying for me. Yeah. And God knew what I needed. And when I look back 10 years, it’s actually ten years now.

I look back and it’s like I was like, what would my life have been if I didn’t have that moment? Right. And so I feel actually very grateful for that adversity that hit an early age.

Henry Kaestner: You know, it seems really interesting to me because I think you’re well known within the league and there’s a great we’re going to have a video clip that James Brown had done talking about the work that you’re doing in Coatesville that just talks about the work that you started to do while you’re still in the NFL. So many professional athletes that we hear about just hit this retirement place. And just like, well, what do I do next? Their identity being so wrapped up. So what I’m hearing you say is that before your NFL career even really started, God sent you on this identity and reset your identity and then allowed you to kind of get a head start because it feels like you’ve retired now. You spent a great decade in the NFL, but you’ve got this momentum coming out of the NFL into your next career and how you think about life that seem to have started well before, obviously, your NFL career ended. Tell us about that. And did that kind of come out of that experience when you had the ACL tear?

Derrick Morgan: Yeah, you encapsulated it very well. It was a sequence of events, right? That was the starting point.

And that led to like the next iteration and refinement.

So it was like a series of events from the ACL to having my son when I was twenty two to losing money with a financial adviser to like taking a hold of my financial destiny in my own hands and like going and getting my MBA. So it was a string of events that they played off of each other and it was like the next step to the next steps, the next step. So it was a constant evolution. Right. And so what I would agree with is the moment where you feel like you lost it all, which is where I was when I tore my ACL. It jolted me to reckon with the idea of not being an athlete and not having football. So when I was in that moment of thinking that my career was over, I was like, oh, shoot, I have a son on the way. My career could be over, like, what am I going to do? I don’t really know who I was. And I had to find out who I was A and what my interests were, what I like. What I didn’t like, I had to really understand who I was, and then that kind of naturally led me into different opportunities that really afforded me the idea of like thinking about life after football and how could I leverage the platform while I have it to, like you said, create that momentum for when I do hang them up, what’s going to be my legacy? What’s going to be my future off the field? Right. And so I remember to this day being in my MBA program and there’s this guy named Takeo Spikes, you may have heard of him. He’s a perennial pro bowler, probably has a shot at the Hall of Fame and was a real, real big voice in my life through just our brief relationship with the NBA program that we both were attending. And I remember I’ll never forget, he said, hey D, I just gotten like my second contract. He’s like, Look, man, I know you poppin right now, but just understand that it’s a little bit different on this side. And I was like, What? You mean like, look, you know, you ain’t going to have a shield, which you write. People know who you are, but it’s going to be a lot easier for you to get a meeting right now. There may be one, two or three years removed from the league. I was like, dang, even for you, you played 15 years in the league, but you’re Takeo Spikes for him to say that and other guys of that caliber to echo that sentiment. I was like, whoa, like this thing really does come to an end very abruptly. And so that always stood out to me and always resonated. I was like, OK, I was like a year for year five, twenty five, twenty six years old and already getting my MBA. But I was like, OK, I’ve got to really start being way more intentional about how I’m set myself up for after the game. And so moments like that and conversations like that, like really helped propel me and position me and like really helped shape my thinking on how I was going to do just that. And so I’m thankful for those words from Takeo and I feel like I took advantage of my time in the NFL and a really good way.

Henry Kaestner: So talk to us about what you’re doing now. Talk to us about what you started to think about and just the genesis of it all. So obviously, you’ve got this, Terry. You’ve got a great mentor. You’re getting your MBA. And how do you think about applying it? One of the idea of real estate investing start to occur to you.

Derrick Morgan: So it’s interesting how it all kind of transpired. We originally were like, hey, look, we’re going to raise this large fund. You know, we’re going to just kind of use our network for deal flow and we’re going to carry this investment pipeline and we’re going to invest in projects that fit our thesis. Great. Let’s go start a fund. What we quickly realized was that especially in the opportunity’s own space, there was a very big, very large appetite for projects, specific deals. Right. So instead of saying, hey, I have this project pipeline of 200 billion dollars over the next couple of years, give me your capital gains like it was more so like now, like, I want to see specific returns. I want to see specific metrics and outcomes and exits. And so for us as first time fund managers without a huge amount of track record, what we essentially pivoted towards is to develop role. Right. And so when we first started, that was we went back to my hometown and Coatesville. I look like there’s a lot of issues here. Let’s try to find some consensus on what the issues are. And we started talking to everybody from state senators to state reps to city officials to nonprofits, churches, the whole litany of stakeholders.

And we started putting together a plan and about two or three months into it, one of our consultants at the time we were having a conversation about we got to bring in a developer. And she was like, well, you’re the developer. And I was like, well, I am like, yeah, you’re bringing this vision to fruition. Now. I’m a developer. So obviously we needed to partner with people who have experience and understand how to manage projects and all that. But at the same time, a large chunk of the developer role is bringing together the necessary pieces of orchestrating all of those things. And so that’s essentially what we had been doing. And so from that moment, we’re like, yeah, like I like this situation better. I like being a direct influence over the deal in the project. And I feel way more comfortable going out to my network of potential employees to say, look, I know what this deal is going to return like. Not no, but I have a good understanding of the deal parameters. And this is your return profile. This is your risk profile. And I have a direct influence over the deal. And so that’s essentially the role in which we’ve kind of settled in, is being project developers and then obviously bringing in the necessary pieces to the team to fill any voids and experience or expertize. And so that’s essentially the role we can play. And we’ve done it in my hometown of Coatesville. We’re doing that out here in Nashville. We’re forming a venture with the housing authority to do this thing and wrapping amenities in our community. And so that’s essentially what came to me, is we have our construction operation that’s based in the southeast as well, and then we’re bringing projects to light and together, essentially, we’re bringing the actual equity to the deals on a project by project basis.

Henry Kaestner: So walk us through some of the projects that you’re working on in Coatesville. What’s it look like? What’s the opportunity? You see, just take us through the actual deals that you’re doing.

Derrick Morgan: Yes, so Coatesville, we have a twenty two acre parcel in the direct main and main of that town. And so twenty two acres, the one thing that we found to our conversations with the community is like there’s nothing for the youth to do. There’s no there’s no youth engagement.

There’s significant gang activity because there’s just nothing for the youth of Coatesville to do is actually eerie. Like I went back a couple months ago and it was actually a day off school and there were no kids in the streets that was like, this is very odd. Right. And so all the kids were either playing video games, watch TV, whatever. And so what we’ve essentially done is like, OK, we hear that problem. What assets does the community of Coatesville already have? What are the valuable assets that Coatesville already possesses? And the one thing that community development. Exactly. Exactly. One of my pastors sent me to a book a few years ago. So looking at the assets. Right. And understanding, OK, you know what? Coatesville doesn’t have the best reputation. Right. However, one thing that we are known for is sports. So how can we leverage that as an asset to bring people into Coatesville to increase the economy, to spend their dollar in Coatesville, which then results in other businesses, winning as a whole ecosystem effect? And so what we’ve essentially put together is a sports complex which has basketball courts and indoor turf field, outdoor turf, field programing, space for classroom, and non-profits and educational services, and then a food and retail hall that is adjacent to the actual sports complex. And so we see this as being a very inclusive development that is going to spawn other economic activity in the actual core of Coatesville. And so that’s one project that’s about one hundred and fourteen thousand square feet. All in project cost is around twenty three million. And we’re looking to leverage things like the opportunity zone as well as new market tax credits to fill up the capital stack.

Henry Kaestner: And how about leveraging the whole move to youth sports in America? As a dad of three teenage boys, the sports industry is just taking off. And if you’re that close to Philadelphia and you’ve got field space, that’s a big deal.

Derrick Morgan: Absolutely. Absolutely. On the head, the sports tourism market is exploding. And in the geography of Coatesville, we’re very centrally located within like a 60 mile radius. We’re touching a population of almost 12 million people. So it’s like very centrally located. Right. And so we’re looking to leverage that and leverage the increasing demand of sports tourism. Right. And so, like, obviously, the current environment is tied up in the air, but we’re hoping that by the time this thing opens, we’ll be back in somewhat of a normal environment for that. And so that’s the coastal project. The project in Nashville is a hundred and three unit mixed income development in conjunction with the housing authority. So what they’re doing is this part of a grander master plan where they’re redeveloping twenty five hundred units across the largest public housing project in Nashville. And so the good the actually unique thing about what they’re doing is a mixed income. But the other piece of this is that they’re actually not displacing one resident. So they’re actually transitioning the existing low income housing residents to the new town homes market looking like apartments and condos. They’re just transitioning them. And then, oh, by the way, your next door neighbor might be a lawyer, right? Or a teacher or a fireman saying so this is inclusive type of model that I was really drawn to. And we found a way to strike a partnership that is very mutually beneficial. So that is a hundred and three unit mixed income and as well as an activity center that’s immersed within the development. So football, football and outdoor field basketball court, very similar to Coatesville, but a little bit smaller scale and then a daycare and different programing space based on what the needs of the community are. And so we feel like we’re addressing a lot of different things and a lot of a lot of boxes.

Henry Kaestner: So, Derek, tell us about I know you’ve talked about being motivated by your faith and seeing these opportunities both in your hometown and also in Nashville. Talk to us about how your faith plays itself out in these different investment projects.

Derrick Morgan: Yes, there’s a couple of different ways to model it. I strongly believe in you shouldn’t have to tell people that you’re a Christian. They should just recognize you by your works and how you walk and how you model your life after Christ. So a big part of what we do is really modeling and like showing up in the nature of Christ. Obviously, we’re all flawed. I’m not perfect, but I’m very intentional about how I do business, the ethics and the morality in which govern my life and the values which govern the way we invest in the projects and our approach.

Right. So I’m hoping that we stand apart in some regards from a traditional. Way of doing business just by how we conduct ourselves in the actual developments and projects. Our goal is to partner with faith based organizations. So push out content and curriculum and programing that is faith based and able to easily get implemented within the developments of which we’re doing so. If we have facilities and recreational spaces, there will be programing space, available classroom setups, different ways for people to congregate, whether it’s through Bible study, Life groups and overall just good mentorship. And so that’s how we see faith being activated and being intentional about spreading the gospel within the actual developments.

Henry Kaestner: Awesome. We like to ask every guest that’s on our program if there’s something that they’ve been hearing from God through the Bible recently that’s impacted your life. Do you have something that’s top of mind?

Derrick Morgan: I don’t know if it’s like a specific verse, but the one thing that’s been on my spirit is like I’ve been feeling like a heaviness on my spirit as of late. And I think a lot of it is related to a lot of unknown. With real estate development. There’s always a lot of unknown factors. And, you know, sometimes doubt can start to seep in. And so I’ve been feeling like this opposition and this heaviness on me. And through that, you know, very recently as a couple of days ago, and we’re kind of hearing God say like push through it, push through that adversity and that opposition that you feel. Because if that is the enemy, if that is negative energy, negative spirits coming towards you or strongholds like you have been set here to penetrate that and push through it. And, you know, God did not give us a spirit of fear, but of sound mind and strength and discipline. And I probably messed up that verse. But like, that’s the essence of how it speaks to me. Right.

And so that is something that I’ve been kind of meditating on as of late. And I’ve just been here and got to say, like, keep pushing, keep pushing and pushing.

Henry Kaestner: Heavenly Father, we lift up Derek and we ask that you would give him indeed the spirit of peace and have courage and perseverance and that he would feel your peace in your guidance and that you give him favor in this season of life. Derrick, I’m going to ask you one last question. You got a 10 year old boy and a lot of people are going to be knowing that his dad’s a famous person. And so tell me, do you think that he feels undue pressure to go out there and be a real estate developer?

Derrick Morgan: No, he feels undue. I would say that he probably feels pressure to be a football player. I know. I know was partially kidding you. But we got an audience of real estate investors and they think, of course, that theirs is a really important vacation.

Derrick Morgan: You know, he actually he’s like, Dad, you’re a developer, right? I’m like, yeah. He’s like, OK. Does that mean you just buy buildings come? Yeah, basically. And so, you know, for my son, I always tell them, like, look, man, like guys made you unique. Like, you know, I know when you see people come up to me in public or ask for a picture or something like that, he actually loves it. My son is like an extrovert, so like he loves the attention. I don’t even, like, encourage him to play football. Right. And that’s something he wants to do. Maybe I’ll let him play contact football at 13, 14. But like, I’m not really pushing that right. I know how my body feels after nine surgeries. And so for him, it’s like, son, you’re unique. Right. I’m here to support you. Whatever you want to do to help guide you. Well, you got to ask God what your unique gifts are that you’re going to give to the world. So it’s going to it may look different than what Dad’s doing. Right. So I just try to encourage them in that way.

Henry Kaestner: Derek, thank you very much for your time. It’s been great being with you. Thank you for sharing your story. Awesome. Thanks for having me on.

Episode 61 – Equitable Equity with Jewel Burks Solomon

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Jewel Burks Solomon is the Founder of PartPic, which raised over $2million before being acquired by Amazon. And that was just the beginning of her entrepreneurial journey. 

Now, she’s a managing partner at Collab Capital—a group working to provide a viable pathway to sustained wealth for the black community. She’s an incredible story, a fascinating entrepreneur and investor, and someone we can’t wait for you to hear from…


Episode Transcript

Some listeners have found it helpful to have a transcription of the podcast. Transcription is done by an AI software. While technology is an incredible tool to automate this process, there will be misspellings and typos that might accompany it. Please keep that in mind as you work through it. The FDI movement is a volunteer-led movement, and if you’d like to contribute by editing future transcripts, please email us.

Henry Kaestner: Very, very glad to have you on the show today.

Jewel Burks Solomon: Thank you for joining us. Thank you so much for having me.

Henry Kaestner: So we’re going to talk all things Collab and the things that God has uniquely equipped you to do going forward. Really excited about the journey that you’re on as you start with Collab Capital. But as we’re trying to do with anybody we talked to on the show, as we’re trying to understand a little bit about your background and who you are and where do you come from. And how is God worked in your life from the very beginning. So tell us a bit about your story, please.

Jewel Burks Solomon: Sure. So I was born in Mobile, Alabama, which you may be able to pick up on a little bit of a Southern drawl. And raised primarily in Nashville, Tennessee, and was fortunate to be born into a family of great people, entrepreneurs, both my parents. And so I always tell people I got that part on this because that’s what I grew up around, but was born into a family that was a really faithful family. And so I started my faith journey at a very early age and can remember, you know, Sunday mornings were spent in church. My grandmother, I’m sure, will listen to this podcast. And she made sure that I was in Sunday school and always right there, you know, front row for a service. So that was a great foundation for me. And then I think, you know, speaking about the faith journey, I was in a routine growing up of being in church. I grew up in First Baptist Church, Capital Hill in Nashville, Tennessee, which is important because there was a lot of history in that church. It was. Training ground for a lot of the civil rights leaders during the 60s working on the national sit. And so I think that growing up in that church planted the seeds in me that I didn’t even know were being planted. But it actually was not until I went to Howard University and started getting involved in the chapel at Howard that I really sort of developed my faith. So that’s little background.

Henry Kaestner: That’s good background. So, you know, this is one of these unique times where we actually do a interview that is going to be released on both Faith Driven Entrepreneur and faith driven investors. So much of your background is on the entrepreneurial side. And then also, what you going to be doing now, What you are doing now is on the investor side. But bring us into the Faith Driven Entrepreneur part. Talk to us about Partpic. Tell us about the problem or actually the opportunity that you saw and how that worked out.

Jewel Burks Solomon: Yeah. So set that foundation to kind of let you know about my background and growing up. But as I mentioned, I grew up in a house where asprin ownership was seen as a great thing. And so I always knew that I wanted to become an entrepreneur. I didn’t know what the path would be to get there, but it was on 12, 12 twelve that I had. What would be the idea for what would become part pick? And I sent my mom in an email on that day and told her, you know, I want to create a technology solution for part search. And the idea came to me because I was working at a company called Amen McMaster Car, where I was managing in the call center. And I was the person who received escalation. And so basically that yell that she so for the majority of the day and wanted to find a better way to help customers. And so I was experiencing the problem of people being frustrated with searching for replacement parts, industrial part everyday. And then I also had a personal connection where my grandfather, who was running our family farm in Reston, Alabama. He was in the middle of a harvest and his tractor broke down and he called me to help him find a part for the tractor. And I could not find this part. And so that was, for me, sort of a sign to say I actually need to pursue a better way for people to find parts, because it was one thing for it to be my customers who were having the problem, but it was another thing for my grandfather to be also having that same problem. And so I sort of thought about, OK, what would be a better way to allow people to search for part? And the idea just kind of hit me that you could do it with a camera search and leverage, you know, computer vision technology, which I didn’t understand fully what that meant at the time, but learned a lot about it and set out on our journey to build this technology and build a company around the technology, which became part Picon. We had a really interesting journey in building that business, ultimately selling it to Amazon into 2016 and integrating the technology into the Amazon mobile app.

Henry Kaestner: That must’ve been really exciting. Tell us about the journey up through that and maybe just take a second before we end up talking about more on the investment side. Take us through some of the lessons that you learned at Partpic. And I’m going to presume that is called Partpic was you probably didn’t go toe to toe across the negotiating table with Jeff Bezos. But if you did, I want to hear that story. But tell us about some of the lessons learned.

Jewel Burks Solomon: Yeah, I mean, there were so many lessons learned during my Partpic journey. One thing to point out is that I was 23 years old when I came up with the idea and started the company. And so I was very young entrepreneur and was learning a time during that time. And I would say, you know, the top things that I was able to work with and perfect with. Really circulated around building relationships and trusting that even when things were difficult and they were often very difficult given the fact that we were building this kind of novel, new technology and particularly building it in an industry that is pretty old school, I would say pretty archaic as it relates to technology, or at least it was at that time.

And so trying to convince, you know, decision makers that large companies that they should trust a young CEO and also a CEO, that look quite different than probably most of the folks that they were. You saw receiving pitches from them, a little intimidating. But for me, it was a huge learning experience and one where I would really have to rely on my faith to kind of push through some of the obstacles that I was in channeling along the way. So obstacles, everything from, you know, how do I attract the right team to help me in building this and how do I want it? The white investors that actually believe in the vision and believe that I can execute the vision. And then even now to the point of showing the company, is that the right decision? Is this the right company? You know, Amazon is a huge menace. And going through that process of having to sell across the table from a more powerful and mighty entity was obviously daunting for me.

So I had to really rely on my faith through all of that. And I was fortunate that that worked out, that I did not leave me at any point in the journey. So I’m really thankful for that. And I know that my faith was certainly increased through my entrepreneurship journey.

Rusty Rueff: So what’s really cool about your your background is, is that, you know, you go through the sale of the company and then, you know, you find your way not only to Google as the head of Google startups, but you also, you know, have been involved in venture capital yourself. And we’ve shared about CoLab capital. But I want you to talk a little bit about Google startups and what you do there. But then I want to go into CoLab capital because the problem that you’re trying to solve there is we know is an important one and we want to make sure that we dove into that. But tell us about Google startups.

Jewel Burks Solomon: Sure. So I think about my role as head of Google for startups, for the U.S. as a really big full circle moment for me. I started my career at Google. Eleven years ago as an intern, you know, summer of 2009. And at that time, I could only imagine that, you know, at this point I would be leading a team that’s focused in an area where I’m deeply passionate, which is around leveling the playing field for underrepresented startup founders across the country. And this year, we have a special focus in Atlanta, which is where I’m based. And I was led to this role really because it was a bit serendipitous that I came into this role. I actually just went to the Google office to have lunch with a friend, and I ran into a member of this Google started team and started talking to her about, you know, how she was doing, what was going on. And she let me know that this role was going to be coming open. And when she called me about it and I continued to talk to other people and learn more about it, I thought, wow, this is exactly what I would be doing. Even if I didn’t have this job, I would be working with startups and early stage companies and trying to help them get the resources that they need anyway. So it’s really a blessing for me to be able to do it as my day job. I would say and we’ll talk about collabs, which is my second day job, but it does allow me to leverage, you know, all of the resources of Google and make sure that they are adequately distributed to early stage startup founders. And particularly we focused on working with black lab mix and veteran founded companies, helping them make inroads and grow their businesses so that they can impact the communities that they reside in.

Rusty Rueff: And then I know a lot of our listeners know Google Ventures, right, because they want to raise money from Google Ventures. Just distinguish a little bit between Google startups and Google Ventures.

Jewel Burks Solomon: Sure, we will. Ventures, which is now known as G.V., is one of the investing arms of Google. There’s actually a few investing teams, but G.V. is probably the most well-known. And they actually sit outside of Google proper for their part of Alphabet, which is the parent company, but are completely separate from Google, whereas Google for Startups sits inside of Google and it’s not an investing team. So it is really about getting resources, connections, you know, connections to the right product and people, mentorship, working with partners throughout the country. So we do a lot of work with organizations and coworking spaces that serve entrepreneurs in markets throughout the U.S. and actually globally. The team is a global team. And prior to me joining in. Back in December, the focus actually was in emerging markets outside the U.S.. So there are campus locations that serve as kind of startup hubs in places like Sao Paolo, Brazil and Televisa and London. And so when I joined, this was actually the first time that there has been this concentrated effort in a whole team focused on the U.S. based startups and particularly looking at what we consider to be an emerging startup ecosystems within the US. So the role that I had is not an investing role, but I do get to get resources to founders that are in need of them the most.

Rusty Rueff: That’s fantastic. I mean, here we are on a Faith Driven Entrepreneur faith driven investor podcast trying to equip both entrepreneurs and investors. And we have a Faith Driven Entrepreneur who’s equipping a lot of investors and entrepreneurs through Google. And it’s great work that you do there. But you get the investment side on CoLab Capital. So take us through that.

Jewel Burks Solomon: Yes. So we started Collab Capital because we felt that there was a pretty wide gap in need as it relates particularly to black entrepreneurs. I’m sure you all have seen the statistics, but it said that less than one percent of venture capital funding goes to black founders and black founded companies. And we know that particularly black founders and black women founders are some of the largest growing segment of astronauts. So there’s a disparity there that we thought needed to be addressed. And instead of just saying, OK, we’re going to invest in black founders, we really wanted to explore, you know, what is happening. Why is it that. Black founders are not receiving the same rate of funding in relation to how many of them are starting businesses. And so when we thought about that and we really explored our own journeys and also took the data from all of the conversations and meetings and mentorship sessions that we’ve had with black founders over the years, what we came to see is that actually we think there is a need to create a new vehicle and a new structure that is designed with black entrepreneurs in mind. So we created what we consider to be sort of an alternative capital structure that really thinks about the alignment between the entrepreneur and their goals. And as as the investors and also considers this kind of macro problem around the wealth gap in this country. And so we think that is very important for entrepreneurs, particularly black entrepreneurs, to maintain equity and ownership in the businesses they start, because that is one way that we can start to counteract this gaping wealth gap that we have in this country. And so we built this model so that black entrepreneurs don’t have to raise a lot of rounds of funding and therefore potentially give up quite a bit of equity and perhaps lose control of the companies they start. But instead, they can have an option to maintain ownership in those companies, pass them on in their families if they so choose, and then start to create real wealth in the black community, which we think can kickstart a lot of other solutions to the problems that we see in those communities.

Rusty Rueff: That may be one of the most fascinating and impacting insights that I had never thought about around investing in black and minority owned businesses, that when traditional venture capital goes and invests, it’s one round after another, another, and it’s just dilution, dilution, dilution. And by the time you’re done, that equity could be little to nothing. And there’s nothing to carry on. That’s awesome. That’s just awesome. So if you look ahead 10, 15 years, if we can look that far. What do you hope is true for black entrepreneurs and investors in America? And what would it take to make what you see as a vision, a reality?

Jewel Burks Solomon: Yes. So I think about this a lot. I want there to be access and options for black entrepreneurs. And what we present at collab, we’ve considered to be an option. We don’t think that it is an all encompassing solution. But we do think that it will help jump start and hopefully there will be many more funds and people who are thinking about sintering the communities that need the resources the most. So that’s a vision for 10 years from now, I think about what the change will be and the impact will be on the communities where the businesses that we invest in are located. I think about something that we’re already seeing happening just with our first investment. We invested in a company just a few months ago and the asprin were recently posted, a picture that showed her and five of her family members in her warehouse where she’s shipping out her orders. And she said that, you know, this is really changing her family dynamic because she’s now in a position to hire the people that she knows and trusts. But also that may not have had that type of opportunity. And so we’re already seeing it. And we just think that in ten or fifteen years, we will be able to showcase a whole plethora of entrepreneurs that have done the same things in their communities and in their families. And we really are excited about the fact that, you know, in our mind, this is all for the kingdom and offer glory of God in the end and thinking about that society that we want to live in, where people have access, they have opportunity. They’re able to realize their potential. So that’s the vision that I have was in the 15 years down the line. And I think to get there, it’s going to require people to think differently and to invest in different ways and to be open to new ideas and new models that would break the norm of what we’ve seen up until this point.

William Norvell: Jewel, William here. Thank you so much for sharing that story. I’ve gotten to hear parts of it from you before. And it’s just it’s encouraging every time. It’s exciting every single time. And it brings something new as you think through your faith. It sounds like a little bit all encompassing for you and your founders. Did you think through your faith and the work you all are doing at CoLab Capital? How do you see those intersecting each other in your investments? You do and the way you’re raising money right now? All the different facets of how you’re going to run that organization.

Jewel Burks Solomon: Yeah, I mean, I think that because of how we’ve started in. I can share a little bit about our origin story as it’s myself and two other partners. And because of the fact that we started in a way one that was kind of driven by conversations that we had outside of church. And when my partner Barry and I shared with each other sort of the experiences that we had starting companies and actually being depressed after we finished our startup journey and then using that moment to come up with this new idea. And really, the idea is steeped in the notion that we don’t want founders to go through some of the same things that we went through. And we want to think about how do we make it so that they can achieve their goals and achieve whatever success looks like for them in a way that is well supported and where they have safe haven as they are going through all of it. And so the fact that we started with that kind of central idea, I think has blessed the journey so far. And, you know, we think about how do we continue with where we started? And how do we grow it? And as we bring new people in, how do we make sure that they have that same conviction and passion about what we’re doing? That’s the challenge that we have today, is thinking about the growth of this and how do we just continue on this path that we’re on. But that’s where we bring in great folks. Like I know you all have Lecrae on the podcast and other people that we are surrounding ourselves with who we think share our vision and share our faith as well. And we think that by doing that and bringing the right people into what we’re doing and finding entrepreneurs who also have a passion and conviction for doing the right thing for their communities, that for us is really what wakes up every morning and helps us to continue on doing this work.

William Norvell: I mean, that’s amazing. And as our listeners are here from both communities, how best can we support the work you all are doing right now? What are some ideas?

Jewel Burks Solomon: Well, I think one of the things that we are really big about is access to networks. We believe that access to capital is incredibly important, but it’s actually being able to walk in to a customer that we’ve been trying to land for a long time or have someone we can call who knows the right decision maker. That for us is a huge part of our model as well. So we really invite people, and particularly folks that are faith driven in these corporations who understand the vision and see the benefit of maybe taking a risk on an early stage entrepreneur or, you know, putting their neck out for someone who is building something great. We invite people to let us know if they’re looking for solutions, technology, solutions to problems that their organization is facing or if they would be willing to mentor a founder if they have expertize that they can win. We’re open to talking to folks about how they can get involved with what we do and also, more importantly, with what our founders are doing, because we think that there is so much that can develop and grow from these legal fees that we’re planning. And we just want to continue that growth as we go march toward that bigger vision that we talked about in 10 to 15 years.

William Norvell: That’s amazing. Well, as everybody is listening, we’ll obviously be posting links to what they’re up to. So just hopefully we can rally around them. One thing I want to jump back to. I know we’re kind of come to a close here, but I want to jump back to use a big word. Earlier when you talked about selling, your company used the word depression and you said one of your co-founders shared a similar sentiment and he may have gone through that. Did you go through that journey of selling a little bit in the emotions that you went through? I think it will give our audience an amazing idea, both just how they can approach something like that, how they can live with someone who may be going through that, and then also just further empathize with founders and how they go through these varying sets of emotions that maybe someone like me who’s never founded an operation like that maybe can’t quite figure out.

Jewel Burks Solomon: Yes, it is a big word. And I will tell you, I was afraid of the word for a while. And it wasn’t until I sold my company and found myself in a situation where, you know, the day that I was supposed to go and sign and the next day and the next day, I really had a hard time getting. Bed and I was crying, and it was just such a emotional time for me. And I did not understand what was happening and I had to go to the doctor because it was weighing so heavily on me. And I did not have the language or the tools to deal with it at that time. And it wasn’t until the doctors said, you are clinically depressed and encourage you, me to go to a therapist. And you think about my diet and my exercise and really examine what did self care look like. And for me at that time, I didn’t even know what that meant because I had spent so much of my life, my time, my energy, everything pouring into this company. And I did not know how to look at myself without having this title, you know, Feo of Perpich attached to my name. I just didn’t know how to deal with all of those emotions. And so I had to do a lot of things. I had to pray. Of course I had to pray about it. I had to ask God, who am I? Who am I to see you? What is my life about now? What am I here for? I had to ask these really big questions and seek guidance on how to step forward and realize that actually I’m purpose for life as you know what I built and that I was, you know, that that first year going from this bell and then my first year at Amazon, I was a really challenging year for me, but I just had faith through it. And I use the tools that God gave me, as well as the tools that the doctor gave me. And I was able to get into a much better place and so much so that I could be in a place where I could actually recognize it in someone else. So when I had the conversation with Barry without a partner in the lab, it came about because I recognized that something wasn’t going right with him. I knew that there was something a little bit all. And so I just asked him a simple question of how are you? And that’s what started him sharing and me sharing. And I think for everyone who’s listening.

If you have people around you, and especially if you are in the presence of entrepreneurs or in a relationship with an entrepreneur, I think that periodic check in just to ask, how are you? Is there anything that I can do to relieve some of the pressure that you may be feeling? That is a great thing that you can do. And also, just checking in with yourself if you are the entrepreneur who’s listening. Really trying to understand. Are you OK? What is happening with you? Have you checked in on yourself recently? So these are all things that I learned and unfortunately, I learned it when I hit a pretty big wall. But I’m just grateful that I had that experience. But now I think it’s powerful to talk about it and also just to have the tools to deal with it, especially in a time like we’re in right now where there are so many things happening. You know, we’re having so much loss and we’re having to deal with things that we’ve never had to deal with before. I think it’s very important for us to talk more about what does it mean to be depressed, to go through emotional turmoil, to feel lonely, to feel lost? I think it’s important for us to, in the Bible, talk about women things. And that is that is something that is actually encouraged. And I think we shy away from it a lot. So I’m very open to having this conversation. I thank you for asking the question. And I hope that it encourages the listeners to talk, to seek guidance, to seek help and to not be afraid of having these types of conversations.

Henry Kaestner: That’s such a powerful aspect and one that we haven’t explored as much as we should on the podcast. We did have a really neat interview with Max Anderson in which he talked about mental illness in the life of an entrepreneur. And it was all start to a different editions with time, but it really hasn’t gotten this concept. I think it’s really it’s a postpartum type of depression. I’ve had two questions come after that. And he partially answered one of them already, which is the part about limitations. But you mention the fact that you did seek professional help. You didn’t look at things like diet, but also that there is an aspect of your relationship with God and maybe his word that walked you through it. Once you speak a little bit, then I’ve got a follow up question as well.

Jewel Burks Solomon: Yes. I really had to dive deep in to a word, I had to dive deep in to my practice of spending time with God because I had gotten away from it, even though I was faithful throughout the astronaut ship journey. I was not spending the right amount of time on my relationship with God. And so one of the things that helped me to get to a better place as far as my mental health was making it a daily practice to spend time with God, to spend time in the world. And it really did work on that relationship. I think that sometimes I know in my life I’ve taken it for granted and I’ve always known that God will be there. But I haven’t necessarily been the person that I should be for him. And so one of the things that has helped me and to this day still helps me and has helped me honestly through the time that we’re in right now is just making sure that every single day I am spending time with God and and thanking God and being full of gratitude for the fact that, you know, I’m waking up each day. I’m getting to do the things that I want to do and live in what I think is my purpose here and be helpful to people. And all of these things that is just amazing to me are the blessing. But that for me has been really, really critical as far as my journey is concerned. The whole thing has been recognizing when I am not spending the right amount of time in trying to get back on track and then having people that can hold me accountable to that as well.

Henry Kaestner: So that’s really important. The accountability part and bridges into actually the follow up question, too, is that as you’re invited into relationship with entrepreneurs, that you invest in entering a community with them and have some level of accountability. And investor holds the entrepreneur accountable for things like keeping them in the loop with how things are going on in the business, among other things. What does it look like for you? Having had that experience to be able to talk about things like identity and mental illness? Have you and your partners at Collab talked about what it might look like to be able to love on your entrepreneurs, knowing that these are things to watch out for and knowing that an entrepreneur, his life is full of anxiety and I’ve told it to somebody the other day, feels like an eye opener is always selling something to somebody. You’re selling to your customers, you’re selling to your investors. You’re selling to people who are going to join the team. You’re selling people to stay on the team. And then when you think you’re finished with sound for the day, you come home and then you talk to your spouse and they’re asking how to go because they’re wondering why you left a really good job at Google or Apple or fill in the blanks and you feel like you have to tell them about things through a glass half full type of lens. And that really just weighs on somebody having come out of that experience yourself as an astronaut. How are you all thinking about loving on your entrepreneurs and being really conscious of that and looking out for that?

Jewel Burks Solomon: Yes. I think this is one of the things that I enjoy the most about the seat that I’m in, where I have a chance to spend time with both the entrepreneur that we have invested in, as well as the entrepreneurs that I meet through the various roles that I hold. And one of the things that I’ve really spent a lot of time with over the past six months is checking in on those entrepreneurs were our Google program. We’ve even made therapy available and free for the entrepreneurs in the program that we run. So it’s something that I’m very open to talking to them about. And I know because I’ve experienced that way can look like to just pour everything into the business and not care for yourself, lose connection to God or whatever higher power you believe in. And so I make it a point to make sure that I’m checking in on entrepreneurs regularly and probably more so right now, because I know that it’s very tempting to just pour everything into the work and leave and forget about yourself. But for me, it’s very important to look on the entrepreneurs and make sure that they are OK, because, you know, the business can’t be successful if the founder is not operating from a space of wholeness. And so that’s something that I’m really committed to. And I think my partners are as well. And we practice it with each other. You know, we’ve all had some level of personal pain over the past several months. And so it’s really been stepping up when one person is down or going through something, you know, taking the reins and carrying a bit of the load. And so we do the same thing with the entrepreneurs that we work with as well.

William Norvell: Thanks so much for walking us through that as we come to a close. We’ll highlight one of the pieces you mentioned, how we loved to always ask our guests whether they are God’s word and what God may be telling them today. And the season could be something you read this morning, could be something you’ve been meditating on for a while. Would you mind just letting our audience into where God has you and a scripture and how it’s taking you further on the journey?

Jewel Burks Solomon: Sure. So I have been doing morning devotion around anxiety because it’s something that is still very real for me. And so I wanted to share a scripture that was just in. I think maybe this week I wrote it down and have been meditating on it. And it’s John, 16, 33. And it’s hard. I’m not really alone. Or the fathers with me. I said these things to you so that you will have peace and me in the world. You have to stress but be encouraged. I have conquered the world. And for me, that scripture is encouraging. It’s especially helpful right now. The notion that as lonely as things may feel, I can’t sink into that concept because God is with me. And that, for me, has been a big comfort.

William Norvell: It’s great words. Great advice. Well, thank you so much for joining us. Thank you so much for spending time out of your day to come tell our listeners the story that God has you on and the ones you’re trying to encourage. And I always really appreciate it.

Henry Kaestner: Jewel. Thank you. Thank you very much for sharing your story. Excited to see what God will do through you and Collab.

Jewel Burks Solomon: Thank you so much.

Episode 62 – What is Gleaning? with Aimee Minnich

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Hear Aimee Minnich, CIO, Founder, and General Counsel for Impact Foundation, share about how her personal history led her to a career dedicated to helping families steward resources for the glory of God. 

In this episode, she challenges the common understandings of risk, reward, and time horizon in investing and posits “the only meaningful risk we can take is to disobey God’s commands or ignore His invitations.”

To hear more talks like this, join us this year at the 2021 Faith Driven Investor Conference on September 9th.


Episode Transcript

Some listeners have found it helpful to have a transcription of the podcast. Transcription is done by an AI software. While technology is an incredible tool to automate this process, there will be misspellings and typos that might accompany it. Please keep that in mind as you work through it. The FDI movement is a volunteer-led movement, and if you’d like to contribute by editing future transcripts, please email us.

Aimee Minnich: I was 17 when my dad died. My inheritance was a baby blue plastic trash bin full of quarters. My dad seven years sobriety coin from AA and his prayers. My parents marriage had dissolved when I was seven and I lived with my mom after that. But my dad had done his best to share with us five kids the faith that he discovered on his journey to sobriety. By the grace of God, I went to college and law school on a full ride scholarship, and while I was in my first year of school, first year of law school, my mom and stepdad took their company public. It was a fast, wild ride from nothing to IPO. And since then I’ve sat through family meetings with wealth helpers to discuss the portfolio, and I’ve suffered through the painful estate planning meetings. I tell you this to say that I have seen and personally lived through both ends of the wealth spectrum and it’s given me a lot of opportunity to think about what it means to live a successful life. Is it being able to buy a Lamborghini or a yacht so that I can demonstrate to the world that I made it that I was a success? Is it being able to leave as much as possible to my family and pay as little as possible on estate taxes? You might be wondering what in the world this has to do with the conference for investors. You see, I’ve decided that the best way I can spend my working life is to help families like mine steward their resources, financial, spiritual and social to the best of their abilities and to the glory of God. For families with significant wealth, a lot of it looks like investing. It’s what compels the work that I do now at Impact Foundation, where we help families invest charitable capital in businesses that create jobs, share the gospel and contribute to human flourishing. So what’s the measure of success? I think we all want to get to the end of days and here. Well done, my beloved child. And we’re just doing our best to figure out what that means. We want to be excellent in the craft of investing, but I’m afraid sometimes I and other Faith Driven Investor used the wrong definition of excellence, just as the kingdom of this world misses what it means to live a successful life, so too it gives us an inadequate definition of what makes a successful investment portfolio. The world says, minimize the risk of losing your capital, maximize financial return and invest for the time horizon of your own life and maybe the life of your kids. But risk reward and time horizon have very different meanings in the kingdom of God. Jesus says if anybody wants to be my follower, you must give up your own way, take up your cross and follow me. It’s pretty risky on its face, but God’s omnipotent and good, his time horizon is eternal and we’re really just his money managers, which means the only meaningful risk we can encounter is to disobey his commands or ignore his invitations. So let’s ask then whether his word gives us any indication of how we should invest in scripture. We see at least four uses of capital commended. We’re familiar with the first three charity tithing and traditional investing for return. And to be clear, those are all worthy of our time, effort and money. But I want to focus on gleaning. It’s the most misunderstood and unaddressed but really important uses of capital. Remember how Ruth gathered around the edges of Boaz’ field in the Book of Ruth? Boaz was following the command from Leviticus 19 and 23 to allow for gleaning. The Theology Work Project explains gleaning is a process in which landowners have an obligation to provide the poor and marginalized access to the means of production, which in Leviticus was the land. And to work it themselves, unlike charity, does not depend on the generosity of landowners. Also, unlike charity, it was not given to the poor as a transfer payment. Through gleaning, the poor earned their living the same way as the landowners did by working the fields with their own neighbors. It was simply a command that everyone had a right to access the means of provision created by God. Our economies may not be agrarian anymore, but gleaning nevertheless is instructive for all of us because it has to do with provision rather than harvesting crops. I’ve observed sometimes it’s easier to practice gleaning within our own companies than it is to understand how to do it as investors. I think many of us are afraid to consider investment gleaning because it seems that accepting less than full market rate returns is the purview of the unsophisticated. If I lend money at eight percent and somebody else gets 15 percent. Doesn’t that make me the chump? Plus, people fear that it provides an excuse for lack of excellence from an entrepreneur. Those things certainly could be the causes of poor returns, but that’s not what gleaning entails. True gleaning involves excellence, access, work and sacrifice. In ancient times, a farmer there was leaving some of those fields and unharvested. It meant that he had to be even more efficient, more effective with the portions he was working in order to make enough to feed his own household and follow the command to allow room around the edges. A follower of God had to be the very best farmer around. Excellence is always a hallmark of gleaning. David Simms and John Halverson, at Talanton, are doing an amazing job as they back small and medium sized companies in Kenya and other parts of Africa. They’re demonstrating excellence in their company selection and management, even as they expect less than market rate returns. The next two parts of gleaning access and work, they go together gleaning access to the poor and marginalized for the poor and marginalized. And it’s not the same thing as a handout. Access to the means of production means work for wages. I wouldn’t ever, ever advocate eliminating charity, but I do fear that if we aren’t creating pathways to employment through our philanthropic capital, then we may be doing more harm than good. If you’ve been to Haiti, you’ve seen this firsthand. There are instances where aid given to the poor and marginalized can create access. Scholarships for education or career training are great examples. So as aid in the context of a natural disaster or mass displacement. But at some point we have to begin asking ourselves when does access and helping me find a job rather than another handout for Garfield Produce in Chicago, Access looks like employing former gang members from Chicago’s South Side to grow micro greens, which they sell to restaurants or they used to before covid. Their investors are expecting maybe to get their original loan back, but with no interest. That’s investment gleaning. Sacrifice is the last hallmark of gleaning, and it’s also the scariest until we actually do it. Gleaning means the difference between an eight percent return that creates 100 jobs or a 15 percent return that creates 50 jobs. What looks like sacrifice to others often feels like simple obedience to the person making the sacrifice. If the God of Heaven instructs us to do something, following in obedience is probably the safest bet when we get to the pearly gates. I don’t think he’s going to ask us whether we got a 15 percent IRR or beat our benchmarks. But I am confident that what we do for the least of these, the ways in which we take care of his children who are poor and marginalized will be remembered. So next time you’re looking at an eight percent return that creates a hundred jobs, how might you respond?

Episode 63 – Thank God for Bitcoin with Jimmy Song

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Money is a fact of everyday life. We earn it, spend it and save it. We’re tempted to worship it and to trust it to provide for our needs. While much has been written about the power, danger, and stewardship of money, little has been said about what money actually is and whether or not money itself is moral. 

Today’s guest is here to change that. Jimmy Song is a bitcoin advocate, developer and author who has been contributing to open-source bitcoin projects since 2013. 

On today’s episode he explores the ways in which the current monetary system is broken, what can be done to fix it, and how the ongoing transition to sound money may be a source of hope for a broken world.


Episode Transcript

Some listeners have found it helpful to have a transcription of the podcast. Transcription is done by an AI software. While technology is an incredible tool to automate this process, there will be misspellings and typos that might accompany it. Please keep that in mind as you work through it. The FDI movement is a volunteer-led movement, and if you’d like to contribute by editing future transcripts, please email us.

Jimmy Song: So Esau had what we would call in between high time preference, right, like he was very impatient, didn’t have much prudence. Jacob had low time preference. He was willing to wait. He was patient. He was prudent. He was wise. And that’s what I wanted to point out about Bitcoin is there’s an ethic of being willing to wait because Bitcoin is very volatile. It does sort of like turn your stomach. There’s a lot of emotional disturbance in the price going up and down that you kind of have to go through that a lot of people simply can’t take. So for a lot of people, they would rather live for tomorrow and be more like Esau, who cares about my estate? That’s like 30 years from now. I’d rather have the suit now rather than being like Jacob. OK, I’ll forgo the suit now, but that means that I get this huge treasure later on. And to me, that’s at the heart of what both Bitcoin is about and what Christianity is about. Our God promises us treasures in heaven for doing the things that aren’t necessarily rewarded in this life. And that’s for me, what the ultimate in low time preference behavior looks like.

Rusty Rueff: Welcome back, everyone. You found us once again at the Faith Driven Investor podcast. Money, money is a fact of everyday life. We earn it, we spend it, we save it. Sometimes we give it away. We’re tempted to worship it and to trust it, to provide for our needs. And while much has been written about the power, the danger and the stewardship of money, little has been said about what money actually is and whether or not money itself is moral. Today’s guest is here to change that. Jimi Song is a Bitcoin advocate, a developer and an author who has been contributing to open source Bitcoin projects since 2013. On today’s episode, he explores the ways in which the current monetary system is broken, what can be done to fix it, and how the ongoing transition to sound money may be the source of hope for a broken world. We can’t wait to hear what you think of this, but let’s go mine this subject right now.

Henry Kaestner: Welcome back to the Faith Driven Investor podcast. We’ve got a really special episode. I say that at the beginning of every one of these look and at some point in time that’s going to ring hollow, but it’s not going to ring hollow today because today is actually super cool. We have our first ever Asian cowboy on the podcast. We’ve never had that before. We never had anybody who was wearing a cowboy hat to a podcast interview. And we may even be able to do a video clip of this in the promo reel. But Jimmy’s song is a really special guest because he’s going to take us through an asset class, Luke, that we actually participated in a little bit, but we don’t know very much about, right?

Luke Roush: That’s right. And it’s a hot asset class, right? It’s garnered a lot of notoriety and a lot of interest in the last few months. So never had an episode on Bitcoin been more appropriate.

Henry Kaestner: I agree. We’ve got Jimmy Song on the podcast today. Jimmy, welcome.

Jimmy Song: Thank you for having me. It’s very exciting for me to be on this podcast. I’ve done a lot of Bitcoin podcast. I haven’t done that many Christian ones. So I am super excited to talk about my faith and how Bitcoin relates to our faith.

Henry Kaestner: So it’s great having a is a real treat before we get going. One of the things that we like to do with every one of our guests is to understand who they are and where they come from and just share with us a bit, you know, who are you? Where do you come from? Where did faith enter into your journey? And then, yes, absolutely. We can tell about all things talking about the money system. We going to talk about greed and corruption and government and crypto and it being a force for good, all those different things. But who are you? Where you come from?

Jimmy Song: Sure. I was born in South Korea and I immigrated to the United States back in nineteen eighty five as an eight year old. So my dad was transferred to an office in New York because at the time he worked for a textile manufacturer and back in the eighties that was where a lot of clothing was made in Korea. But of course the designers were in New York and they wanted to see what materials factory could make and so on. So he was the representative for that company. He worked in the Empire State Building. I still remember going to his office, you know, on the sixty sixth floor next to the diamond exchange and everything. Anyway, we immigrated in nineteen eighty five and one of the things that happened when we came was my parents just kind of missed Korea and though they weren’t religious at the time, they decided to go to church as a way to meet other Korean people. And we started attending church maybe a month after we came to the US and part of that was me growing in faith and learning about God. I went to a summer overnight Christian camp called Word of Life in upstate New York. That was where I was saved. And it’s been a journey since then. Also, around that time I got into computers, I didn’t really even know what they were, but I had like this natural affinity towards them. And I begged my dad to get me one. He got me one from Toys R US as a fourth grader. It was a Commodore sixteen, not the sixty four that everyone knows was a sixteen, which only had like three games. So I learned a lot of programing on that thing, mostly because I wanted to play with this machine and I’ve been programing ever since. So I’ve been a programmer all my life and I went to a startup right out of college. I’ve been doing startups for a long time, pretty much since I graduated college, which was back in ninety eight. And I learned about Bitcoin back in 2011 when I was reading tech news site that said Bitcoin has reached parity with the dollar and I couldn’t even pass that sentence. I was like, what does that mean? How do you get parity with the dollar? And then I found out that it was a digital currency and so on. And yeah, I’ve been doing stuff in the Bitcoin space, contributing to open source projects, writing various books, speaking at conferences, teaching people I’m also a Bitcoin fellow at a venture capital firm and things like that. So. Yeah, it’s been quite a journey, and I’m excited about this podcast because it is sort of talking about two things that got integrated into my life and it’s something that only God can do.

Luke Roush: Jimmy, some of our listeners don’t have a ton of exposure to Bitcoin, maybe they haven’t actually spent the time that you have to really understand the currency and kind of how it works. But pretend we know nothing about Bitcoin, would you mind just kind of walking us through kind of a crash course for dummies, myself included, on how Bitcoin functions and what our listeners might want to know or pay attention to as we’re watching this universe unfold before our eyes?

Jimmy Song: Sure. The easiest way I can describe Bitcoin is as digital gold, and it’s digital, I think, which most people understand. But it’s also like gold in the sense that it requires no permission to go and gather it. So gold has always been like that. If you own some land, you can go dig in your backyard or whatever to go search for gold. That is everyone’s right to do. You don’t need permission from anybody. So in that way, Bitcoin is what we call decentralized. There’s no central authority that determines whether or not you are allowed to create that or find that particular commodity. This is unlike the US dollar, for example, which is centrally controlled. If I tried to produce a one hundred dollar bill and managed to make it look very realistic, I would get arrested by the Secret Service because the production of US dollars is controlled by, well, at least the physical notes by the Treasury, but really most of it by the Federal Reserve. So a lot of things are centralized, including concert tickets, coupons for online stores or whatever. What’s unique about Bitcoin is that it’s digital and decentralized and this usually blows people’s minds. And honestly, most of us in the computer science field didn’t think that that was actually possible until Satoshi Nakamoto showed that it could in 2008. And that was a big breakthrough in Bitcoin was the fact that it was both decentralized and digital. That is, it had no central authority, but it was also digital. When most people think of digital things, they think like MP3 files or Web pages or e-books or something like that, something that can essentially be infinitely copied with perfect fidelity. But with Bitcoin, you have something that’s decentralized, not infinitely copyable because there’s a ledger and this is what’s called the block chain. And that block chain holds essentially every transaction that’s ever been done on Bitcoin. It’s not very different than, say, the ledger at your bank, which for them has the record of every single transaction that’s ever been done by their customers of that bank, except that block chain is completely distributed. Everyone that runs the software can check exactly that. The ledger balances, for example, that no one’s overspending that noone’s overdrafting, that the rules of the ledger are being kept up and not violated and so on. And that’s essentially what it is. We also call it digital gold because of this process called mining with gold. I’m told that you need to scour something like 40 tons of dirt and rock before you find about one ounce of gold. So there’s a lot of dirt and rock that you have to process. You use chemicals on before you find that one ounce of gold. Bitcoin also has that same process for bringing new Bitcoin into existence, except instead of dirt and rock, what you have lots and lots of numbers. So you process as many numbers as possible and you’ll find that sort of one ounce of gold, if you will. And much like gold, that process of finding that gold is much more difficult than verifying that ounce of gold is genuine. The chemical test is much cheaper than actually digging up an ounce of gold in the ground. Similarly with Bitcoin, the process of finding a number that satisfies a particular property is very, very difficult. You just have to brute force lots and lots of numbers, the equivalent of 40 tons of dirt and rock. But when you find it, it is very easy to verify. In fact, your cell phone can go verify that it’s been done, whereas the actual process of finding it requires many, many thousands of thousands of machines.

Luke Roush: Yeah, that’s fascinating. And a whole bunch of other questions you go off in terms of who the miners are, where they live, how they mined. But now I want to go over actually to an argument that you make in your book that it could be really interesting to our listeners, maybe resonant given the environment that we’re currently living in. It’s around the moral argument for Bitcoin versus currencies that can be printed more readily. Could you just kind of articulate that view on the merits of Bitcoin relative to fiat currency?

Jimmy Song: Sure. The thing about the current monetary system, which is central bank backed fiat money, it is extremely corrupt for the lack of a better word. There’s a lot of theft in it. There is what we would call huge moral hazard within the fiat money system. And this is because there exists a money printer. Unfortunately, not that many people know how money works. I’ll just briefly describe it. When the government has a budget of 4 trillion and their tax revenue is three trillion, you have a one trillion dollar deficit. So where do they get that money in the past before central bank back fiat money? What? The government had to do was to go borrow that money from people that actually had it. So King John, for instance, wanted to borrow a ton of money to fund the war that he wanted to do as a part of England. The merchants that lent to him charge them two hundred fourteen percent interest because they were pretty sure that they wouldn’t get the money back. So at least after six months, they’d get some of it back and interest and then go from there. So that’s how money used to be nowadays. That one trillion dollar gap, it sold US Treasuries. There are other central banks that buy it. There are people in the public that buy it. They’re hedge funds and various pension funds that will buy it. But there’s usually some left over. So say they sell five hundred billion to various parties, but they have five hundred billion left. What happens? Well, the central bank is called the lender of last resort. For that reason, they will buy up the other five hundred billion dollars through money that they created then. Er so it’s essentially monetary expansion through debt insurance and that’s how the monetary system currently works. And it’s not just at the government level, it’s also at the corporate level and it’s also at the consumer level. So if you think about corporate bonds and whatever bond buyers know, you can get tremendous leverage. You can actually just get the spread. There’s questions about, OK, who’s buying these like one and a half percent bonds. Right. Like that pay like nothing. Well, it’s because you can go get loans for one hundred percent of that amount. It just becomes sort of like a money generating machine. And even if you’re getting paid like 20 basis points, if you’re getting loans at five basis points to 15 basis point spread is all profit and you can leverage the heck out of it. So you borrow a billion and you get 15 basis points on a billion dollars. That’s still a significant amount of money. So that’s how the current system works. It’s based on that. It’s based on money printing. It’s based on monetary expansion that can be sort of like game by the people that are in control. And that means that there is a huge moral hazard or the people that are printing the money because they can use it to benefit themselves and their friends and their family at the expense of everybody else. Every time you expand the money supply, you are essentially stealing from everyone that has saved in that currency. So if you have money saved in the dollar and the dollar expands and supply, then your dollar has a little less purchasing power. And you could kind of see that in the asset inflation bubble that we’re in with stocks and even bonds and real estate and maybe even gold to some degree. But every time the money expands, you are stealing from everybody else that’s holding the dollar. And this isn’t just people in the United States. A lot of those people are in third world countries. They use the dollar as their store of value because their own currency is even worse than the dollar. So in essence, every time money is being expanded through debt creation, we are essentially stealing from everybody else that has money stored in that fiat currency. So from a biblical perspective, it is immoral and it is doing something that God detests.

Henry Kaestner: Hold on saying this is the almighty dollar. If this is the greenback, you’re saying that there’s something just wrong with the system and then maybe you’d even suggest that because we are all transacting in dollars that we may even, by extension, be morally complicit in this.

Jimmy Song: Yeah, yeah. I mean, every time we take out a mortgage, for example, I mean, think about this. You take out a mortgage for, say, a quarter million dollars, two hundred fifty thousand dollars, and you get three percent, 30 years or something like that when most people think with that mortgage is OK, some that is on the other side of that trade that’s lending out two hundred fifty thousand dollars for three percent for 30 years. And that’s simply not true. If you were an investor, you would never take back 30 years, three percent with some credit risk. And so, like, nobody would do that. The only reason that happens is because they print that money into existence. And that mortgage in turn is actually insured by Fannie Mae and Freddie Mac. So really, there’s no risk for the bank at all. And the government’s the one that takes the risk and they print the money for your benefit. So we’re all complicit in this. And I’m speaking as a person that has a mortgage, so I’m complicit in this as well, and that we are expanding the money supply. Clearly, the borrower is benefiting because they’re getting access to a lot of money at once. The bank is benefiting. They’re getting paid interest. So who’s it actually hurting? Well, it’s hurting everyone else that’s holding the dollar, including people in Nigeria that are holding dollars because the Niros inflating very quickly. So how do you even for them, I mean, we’re stealing from everybody through this monetary expansion. And the US is the most guilty of all because we got first access to that dollar, whereas people in Nigeria, for example, get last access as a result of what’s called the Cantillon effect. They get screwed more than everybody else being convicted.

Luke Roush: And my guess is that many of our listeners are also being convicted based on that last 60 second report, which is good. I think it goes over a lot of people’s heads and just kind of passed us. But we don’t. Realize that we’re living in it, so I appreciate you shedding light on that, one of the things that Indonesia, where I used to live is known for is having the most expensive coffee in the world, which is Kopi Luwak coffee and I won’t go into all the details of it. But my understanding is that you may be an expert on some of the most expensive beef jerky in the world. And switching gears, I got to ask the man we need to hear the beef jerky story, most expensive beef jerky ever produced in the world. Jimmy Fallon on the show today.

Jimmy Song: Yeah. So 2013, there were a lot of different companies that were allowing came in and bitcoin. And this is sort of the mistake that I made. I want to support this company that’s now taking Bitcoin. And it was online and I decided to order some beef jerky from that company. At the time, Bitcoin was about four hundred dollars. So I bought one hundred dollars worth of beef jerky and I was like, OK, it’s a quarter bitcoin. It’s not that much. I’ll buy it. They shipped it to me. It was delicious. I don’t think it was like twelve thousand dollars delicious though because currently Bitcoin is up forty eight thousand. And this is kind of what happens with a lot of store of value assets is that I’ve known people that worked at Dell or something early on and they had stock options. They decided to sell them for a couch and it turns out that the stock kept going up or whatever, and that couch is now ten thousand dollars or something instead of eight hundred or something like that. So you know this. I regret spending Bitcoin on that beef jerky. Yeah, there was also a sewing machine I got from my wife, which costs like a tenth of a bitcoin that’s now like five thousand bucks. So, yeah, some regrets.

Henry Kaestner: So when you’re referring to store value, you’re referring to beef jerky as a store value. So tell us you’ve written a book on this. Tell us about the book.

Jimmy Song: Thank God for Bitcoin. Yeah, it’s all about the moral case for money. And it comes from a Christian perspective. I got to write this during covid as a result of Bible study that we started doing on Zoom. So basically I had gone to this conference that Russell Cohen put together. He’s the left tackle for the Carolina Panthers and he also wrote the foreword for our book. And his brother in law, George was one of my coauthors, is a Christian, and we started talking about it and we decided, OK, you know what, let’s do a Bible study of just some verses in the Bible that talk about money and oh, my goodness, there are so many verses in the Bible that talk about money. So we started doing that. And as we finished, he expressed some interest in learning more about the economic aspect of it. And I come from the Austrian school and I’ve read a lot of stuff on it. And we decided to open it up to some more people. And we had about ten different Bitcoin ers that have known through conferences and so on that I knew were Christian. And we got together. We studied two books, The Ethics of Money Production by Guido Huelsmann and Honest Money by Garry North. And both of them treat the monetary system from an ethical perspective. And we ended up doing studies of both books. And at the end we were dissatisfied because both of them ended with, hey, we need to go back on the gold standard and we need to get a political action committee together and convince enough people so that the dollar can go back to being backed by gold. And, you know, I mean, we’re reading this and thinking, OK, this is completely unrealistic and this is never going to happen. But we have this thing called Bitcoin where each individual can opt out. We need to write a book to lay that out. And that’s how the book started. We wanted to make the moral case for Bitcoin and we wanted to do it from a Christian perspective. So there’s a lot of verses in there. We definitely take the Christian world view in this book, and the hope is to give that moral perspective, because for a lot of Christians, I think what they think of when they think of Bitcoin is OK. It’s like the money used by drug dealers and traders that just gambled their money or something like that. And for us, it’s very much not. It’s a more moral money. And that’s the argument that we wanted to make in the book, and that’s what it covers.

Henry Kaestner: So it’s very interesting. I want to get more into the rifts that you’ve had with friends in Bible studies about faith as it comes through. And I just you got one of the most entertaining Twitter feeds of all time. And the other day you talk about Esau and Jacob and their take on Bitcoin. Selling Bitcoin: Esau’s soup, buying Bitcoin: jacob Father’s estate. Please explain.

Jimmy Song: Yeah. So Esau had what we would call in Bitcoin high time preference. Right. Like, he was very impatient, didn’t have much prudence. Jacob had low time preference. He was willing to wait. He was patient. He was prudent. He was wise. And that’s what I wanted to point out about Bitcoin is there’s an ethic of being willing to wait because Bitcoin is very volatile. It does sort of like turn your stomach. There’s a lot of emotional disturbance in the price going up and down that you kind of have to go through that a lot of people simply can’t take. So for a lot of people, they would rather live for tomorrow and be more like Esau. Who? Cares about my estate, that’s like 30 years from now. I’d rather have the suit now rather than being like Jacob, OK, I’ll forgo the suit now, but that means that I get this huge treasure later on. And to me, that’s at the heart of what both Bitcoin is about and what Christianity is about. Our God promises us treasures in heaven for doing the things that aren’t necessarily rewarded in this life. And that’s for me, what the ultimate in low time preference behavior looks like.

Henry Kaestner: So I want to do a slight pivot here because I’m thinking through this. I’m going beyond the moral implications of the monetary supply and I’m going to be thinking about that for a long time. I know our listeners are, too, but one of the things that has stuck with me is when you talked about the Nigerians being the last people kind of in the stream, so to speak, what is Bitcoin mean? And maybe I’m reading too much into your comment or just this general thought, but what is Bitcoin mean for people in places like Zimbabwe where they’ve got to take wheelbarrows of cash just to buy food? You know, is their role here for Bitcoin and poverty alleviation? Can that happen or or do those governments shut it down? Because that’s their last stranglehold on the people. Just riff about what that means a little bit in developing economies.

Jimmy Song: Yeah, and it’s been a tremendous in developing economies. In fact, one of my coauthors is Jordan Bush, and he actually inspired that Esau tweet. He is a missionary in Uruguay and his congregation is actually largely Venezuelan and they love Bitcoin. They think it’s something that is very important to them and in part because they can actually send money back home. A lot of these regimes, when they get in power, what they do is they impose strict capital controls and so on to make it very difficult to do anything monetary because they are spending their own money in hyperinflation. That the previous book that I wrote is the little Bitcoin book. And one of my coauthors there is Alex Gladstein, who’s the chief strategy officer for the Human Rights Foundation, and he’s really interested in Bitcoin, in large part because a lot of human rights activists in these countries, the first thing that happens to them, once the government finds out that they’re doing something against the government’s interests, is they get their bank accounts seized, they get financial, they get their financial access sort of cut off. And Bitcoin for them is a life saver. So there’s that aspect to it. But there’s also that other aspect that you are talking about, which is, you know, being able to store value. So one anecdote that I like to share is that one hundred dollar bill, a crisp one in a lot of third world countries, will trade at a premium to a wrinkled one. And you might be wondering, why would that be? Why is the crisp one trading at a premium to a wrinkled one? Well, the crisp one is more valuable because they’re given as gifts at weddings and so on. So when you’re presenting a gift to the bride and groom or something like that, you want a nice crisp bill. So the wrinkled one trades at a discount because these people are using these as stores of value. This is you’re starting off your new life. Here’s some money and that’s how they store it. So for a lot of those people in Third World countries, the US dollar and so on is a lifeline to being able to store their wealth. And if we’re thinking about like what’s happened to the US dollar in the last year, then two money supply, for example, has expanded by thirty five percent or something crazy. For a lot of people in Third World countries, it’s even worse. So they have their own currencies, which through legal tender laws and monetary injustice of all kinds, they’re forced to use. But it’s inflating at such a high rate that they need something else. They want to store value in something else. And if you go to like the black market in Venezuela, for example, you know, no one takes bolivars or if they do, they have a quick way of getting rid of it because no one wants to hold on to them, because an hour from now, it’s going to be worth less than what it is right now. So that whole process is very detrimental to their living and it makes all sorts of economic calculation crazy. It generally devalues labor and so on. So Bitcoin definitely has a role. The country where Bitcoin is most popular besides the United States is Nigeria right now. And it’s because the Naira is expanding fairly quickly. They have a pretty technical population. One of my coauthors from the previous book runs an exchange there, and he’s trying to comply with the central bank of Nigeria’s mandates and so on. But yeah, it’s a life saver for a lot of them because they can actually store value instead of having it just sort of like frittered away. And a lot of the injustice that we see in the world is actually monetary injustice. And honestly, a lot of that is because of the dollar hegemony that is over the entire world. And this is something that I think as Americans, much more so than, quote on quote, social justice or whatever that we have to think about as a nation. There’s a monetary imperialism that is over the entire globe. The US can more or less unilaterally enforce sanctions on Iran because of the dollar, all international transactions. These are settled in the dollar and so on, so. You know, that level of control, that level of ability to affect people in Third World countries, this is something that we need to really face up to as a nation because we’ve been abusing it for the last 70 years or so since Bretton Woods.

Luke Roush: So the concept of monetary imperialism is a powerful word, picture that I’ve never thought through that before. But this is really, I think, brought that to light for me and will be impactful for others, too. I’ve got one more question and then a closing question. But one more question is, we all have friends who have waded into Bitcoin more recently trying to make a quick buck. What counsel would you give the folks who are seeing this more sort of short term trading opportunity rather than a long term?

Jimmy Song: Yeah, I know a lot of people that have been like that, and those people have existed since 2010. So there were people that got into Bitcoin at a dollar and sold at eight dollars and said, you know what, I made eight times my money. I am out. And they have never come back since. So my counsel to those people would be understand what Bitcoin is. It could be a trade thing, a plaything, a gambling thing. In which case, I think as a Christian, you should really look into whether or not that is something that is corrupting your soul or not otherwise. Once you’ve learned what that really is, whether it is this incorruptible unsensible store of value that we argue in the book, then you’ll understand like just how much it means to have that store of value available so that we can build a better civilization instead of one that’s leaking all over the place with the current fiat monetary system that we’re in. So for those people, learn what it is before you keep going with this sort of like speculation. A lot of people do come in for no go up, as we say, in our space. But a lot of people end up staying because they learn what it is and read books like mine or say things the Bitcoin standard or many others and learn, OK, all right. This really is a better money. And it is in many ways incorruptible by human beings because it’s run by computer code. And as a result, they become convinced, OK, this really is superior to the current monetary system. And I want to opt out of the current monetary system into this thing. And that’s what brings a lot of people in. So, you know, learning about that is not easy. I’ve seen people take many years before they got into it or understood it or realized this implications. And like we’ve been talking about, the implications are enormous and they are global. And it is no small thing to be changing out money. It seems to be one of the base layers of civilization. If you change that out, you affect absolutely everything above it, including governments, including trade, including companies, including our lifestyles, including our how we view debt and things like that. And all of those things will need to be changed as we transition more to a Bitcoin standard. In my opinion, that’s inevitable because fiat currencies are just sort of temporary by nature. I think a study of all fiat currencies that have ever existed, like the average life span, is like twenty three years. The US dollar is about 50 years old in fiat terms. And so it’s fairly old, but we’ll see where it goes. But that’s what I would implore your listeners to go and understand.

Luke Roush: Most impactful episode for me and I think for all of us. But let’s just close out with the way we always close out. So I’d love to hear, Jimmy, how God is speaking to you and teaching you. Now, what have you found in his words that has stuck out to you recently?

Jimmy Song: Yeah. So the verse that I’ll go to is in the book as well, but it’s Ephesians 4:28. He who steals my steal no longer, but rather he must labor performing with his own hands. What is good so that he will have something to share with one who has need. And I love that verse first of all, because it says don’t steal. And I think at least in the fiat economy, I think we’re all guilty of that, whether we know it or not. And stopping from that and working with our own hands, creating something that is good. So he will have something to share with one who has need. That to me sometimes is interpreted as go and make money so you can give alms to the poor. For me it means go make something with your hands so that you can contribute something to civilization, to someone else in the market that can get value from whatever it is that you create. And the verse is really about money and the role of money, which from a spiritual sense is a signal to you, to each individual to know how it is that you can provide most value to other people. And when the money is not corrupt, it’s the purest sort of signal for what we should be doing because it tells other people, I find what you’re doing, your goods or services more valuable than the money that I am willing to give it up for. So for me, that’s what it is. The other thing I’ll share is that this book for me is sort of like, as I mentioned before, the merging of two huge passions in my life, Christianity and Bitcoin. And I was at a conference last year, a big block boom. It was Bitcoin conference and it was in Dallas. And I gave a talk and somebody asked a question and I revealed that I was a Christian at that conference. And I also told the audience at the end, hey, I’m writing a book about this, if you’re interested, please. Talk to me afterwards, no less than 30 people throughout the next two days came up to me and told me that they are Christian, that they are Bitcoin. They were afraid of saying something. And for me, that was a huge validation of what God was doing, because it was clear that there are a lot of Christians that don’t want to be known as Christians. And a thing for me when I think about that is, wow, how sad is that? Because according to the Bible, these are Jesus’s words. He says, if you are ashamed of me, I will be ashamed of you before my father. And my hope for your listeners is that they learn to be bold with their faith. And, you know, we tend to think, OK, God doesn’t want me to be ashamed of him, but then I’m going to get embarrassed. That’s not the way it is, at least for me. My experience has been that God has blessed me, that he wants me to be bold so that he can bless me and what I am doing. And this book has come out as a result of that. We’ve got a lot of reviewers from that conference that were able to chime in on Bitcoin and Christianity and give us some really good feedback that we incorporated. But for all your listeners that are thinking about investing better in these industries where, you know, it might not be cool to talk about Jesus, take a chance people about it, because God wants to bless you.

Henry Kaestner: Amen. Wow, that was really, really awesome. I love what you’re talking about in terms of being able to deliver value. We should be about being used by God under his power for his glory to bring about his kingdom on Earth as it is in heaven. And we need to be creative and adding value to the marketplace, creating goods and services to bring about his kingdom and to love our neighbor, and in that process, superimportant. So that’s a great word to leave us on. And then the admonition, of course, to be always ready, willing and able to be able to boldly and yet with gentleness and respect to share the reason for the hope we have. So great word for me, a great word for Luke, Justin and the entire FDE team and our listeners. Jimmy, we’re really grateful for you. Thank you very much.

Jimmy Song: Thank you for having me.

Episode 64 – How to Invest in Movies with Jon Erwin

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October Baby. Mom’s Night Out. Woodlawn. I Can Only Imagine. What do these movies have in common? They’re all creations from the Erwin brothers. 

Jon and Andrew have had a passion for creating and making movies since they were young, and while we could talk shop about movies we love all day long, we asked Jon to pull back the curtain into the economics behind the big screen. 

How do filmmakers raise capital? Where do investors looking to get involved in entertainment? And of course, how does our Christian faith play into all of this? Listen in to find out…


Episode Transcript

Some listeners have found it helpful to have a transcription of the podcast. Transcription is done by an AI software. While technology is an incredible tool to automate this process, there will be misspellings and typos that might accompany it. Please keep that in mind as you work through it. The FDI movement is a volunteer-led movement, and if you’d like to contribute by editing future transcripts, please email us.

Jon Erwin: There’s never been a more powerful tool of storytelling than mass entertainment. It’s America’s second largest export behind agriculture. You know, there’s enormous infrastructure being built worldwide, completely flips the model of sharing the gospel because countries pay for American movies. And if you can cross a certain threshold of success, these movies go on global autopilot and these countries are paying you. And so it’s an incredible model to get the gospel around the world. It’s an industry that we’ve historically been underrepresented for quite a while. As Christians, I think it’s our fault. I don’t think you can blame it on some evil Hollywood agenda. I think we’ve abandoned the playing field. In my experience, people are open. They just don’t. I mean, like the chairman, the motion picture group was a great friend, a mentor at Lionsgate. I’m the only Christian he knows, you know, and that’s Christianity’s fault. So I think we got to stop blaming some evil conspiracy that doesn’t exist, in my opinion. And I’m deep inside the industry and we got to get in the dating game again.

Henry Kaestner: John, it’s awesome to have you here, thank you for joining us.

Jon Erwin: Thanks for having me. And love the theme of your podcast. I remember when we did the deal at Lionsgate, we make movies there, the studio. They said, what’s most important to you? This was after the movie. I can only imagine. I said I’d like to be seen as an entrepreneur first and a filmmaker second. And so I think I actually value just entrepreneurism over entertainment. In a way. There’s so much creativity in the process of creating, you know, a company or a revenue sort of engine or a story for a film. There’s a lot of creativity in both. And so thanks for having me on for sure.

Henry Kaestner: Yeah, you’re on the right program then, obviously. So one thing we like to start every show off with is getting a little bit of your background. So tell us about growing up in your own household, your relationship with your brother when the movie-making becomes something you thought about pursuing after you thought about entrepreneurship.

Jon Erwin: Yeah, well, I’ll say this. Some details of the story I’m not recommending. I remember doing a program I think called Money Life, and some of it was like that person was condoning lying. I’m like, I’m not I’m just telling you what happened. I’m just going to preface it with that. But I was born and raised in Birmingham, Alabama, and love the South. I live in Nashville, Tennessee today and commute to L.A. And when I was probably 12, I started working at a cable station and when I was 15, and to anyone that’s young and interested in filmmaking, start now the tools that’s never been as readily available. One of the great assets I had was just to start, you know, very young, you know, probably 10 years younger than most people. And in the providence of God, just he opened up an incredible door when I was 15 at the University of Alabama. We got it.

Henry Kaestner: We got to stop here. So, William, huge Alabama fan.

Jon Erwin: So I could say right here, am I able to say roll tide? Because all can say it sings to my heart, John.

William Norvell: You know, I get I get made fun of all the time on the show with people. And I talk about, you know, how successful we are all the time and just bothers people.

Jon Erwin: You know, Roll Tide in Alabama is a way to say hello goodbye. It’s a way to affirm, you know, healing. Yeah. It’s a way to sit in going for it. It’s a there’s many uses to roll tide.

William Norvell: You know, we need a link to the ESPN commercial and the bottom of the podcast.

Jon Erwin: Mini, an Alabamian has died and their last words were all tied before doing something really stupid. But anyway, it will roll tide, by the way, at any rate, a cameraman got sick three hours before the kickoff and I was apprenticing for a cameraman for my church named Mike. And for about a year I worked for him for free, carried around a tripod.

And he called me and he said, John, get over here right now. I told him I knew a guy like me. Lying is such a strong word. It’s like just neglect to inform them of your age and your level of it. Just don’t say anything at all. Just get over here. So I got in the car. My dad drove me over because I didn’t want him, but I couldn’t drive. He dropped me off four blocks from the stadium. I walked in and did what Mike told me to do. Just basically he didn’t say anything. He just said, I’m here and I’m I’m one of you and all that stuff. And I went up to Karma for and football shoots is the highest camera in the stadium. She’s up and down the field like field goals. And I was used to cameras that were very small. And this was like a telescope was huge and the lens was so powerful it could zoom in and out of a quarter of the moon. So I was just this kid is fifteen year old, homeschooled, conservative, you know, never met anyone that wasn’t a Christian, you know, share my world view kid that had just sort of joined the circus. I was literally zooming this camera just in and out of the moon and having the time of my life. And I just I got bit hard by the entertainment bug. I fell in love that day and they paid me three hundred dollars. I had never seen that much money. We didn’t have a lot growing up at all. So then I was really in love. And I remember I played basketball all the time. And we have another podcast on sports. And my coach called me and said, Are you come out for the team? And I’m like, Now they’re paying me to film games. And he didn’t have a response for that. So that was the end of sports for me. But the next week, crewing agent called me because I was, you know, Birmingham, Alabama, again, providentially is right in the heart of the SEC, which is the best conference anyway. And so there’s games within a five, six hour radius everywhere. So occurring agent called me and said, are you a freelance camera operator in Birmingham, Alabama? And I didn’t know if that was three individual jobs and I had to pick one or if that was one job. So I just said, yes, that’s I’m that that’s what I did. So she sent me down to Auburn and did another game there. And is that the airable or are involved on the air but just didn’t Auburn football game and the Auburn stadium was always very cold. At any rate, I work for ESPN really full time after that. And when I was 16 years old, my dad used money he didn’t to help me get a camera, probably the best gift I’ve ever received. And he helped me and secure a ten thousand dollar loan, which you probably shouldn’t do. There’s a lot in this story you shouldn’t do for a sixteen year old. And he taught us something that has stayed with us. He just said dream bold, dream big dream the impossible. And we’ve tried to live up to that. Ever since and we just started making stuff, you know, I think that there’s a great principle I love to read and I would just highly recommend reading. And there’s a great book called Outliers. And Malcolm Gladwell, the author of that book, talks about a principle called The Ten Thousand Hour Rule that there’s no overnight success in anyone that’s kind of achieved sort of breakout in anything, has spent 10000 hours honing and mastering their craft. And I think as craftsman, as Christians, we don’t respect the season of preparation that precedes a season of influence. And sometimes the season of preparation is a lot longer. And so we just started making stuff and made all kinds of stuff. I don’t remember. I mean, I filmed so many weddings and surgeries and birthday parties and used car commercials and all kinds of stuff, but just round and round the Praxis track, learning my craft. And I think people get it wrong when they consider film an art form. An art is something you express. I consider this a craft. A craft is something you master over a long period of time and just made all kinds of stuff. And then the Christian artist, Michael W. Smith and Amy Grant, the music artist, gave us a break for reasons I still to this day don’t understand, to do music videos for them. And the first one we did for somebody went to the top the charts, and that led to a career doing music videos, working for just a ton of both Christian and country artists and winning a lot of awards. But it was still just a job.

Henry Kaestner: Give a story on that before I go off, because I came of age in the MTV generation is a lot of our listeners did. And so we’ve never talked to anybody on this podcast. It actually made a music video. Give us a good story behind the scenes and music video.

Jon Erwin: There are many, but I’ll tell you one, we used to write these enormous treatments, five, six, seven page treatments and a label would give a song out to 10 or 20 directors, and we’d all compete by writing treatments and then they would award the video. Well, and then I had one at a time, music video of the year, I think three years in a row. And so we didn’t quite have to write as long as treatments. And so there was this band is very sort of heavy rock band, great band called Skillet, and they had a song called Hero. And so I wrote a treatment that just said, basically the band’s singing at night. Things start to blow up. Then it starts to rain. Then it rains and things start to blow up. Then everything blows up the end and gave it to the band and they’re all like, let’s do it. There’s a little paragraph treatment. And so we got all these pyrotechnics and a lot of special effects and a lot of water and things you typically don’t want to mix like water and electricity and fire and gasoline bombs and all that stuff. And I love that stuff. At any rate, the first take the drummer, I forget the name. It was their first video and she was the drummer, so she was the closest to it all. And so we go through the first take and then we yell cut. And she runs screaming because she didn’t know because it was the first video that she could stop to take if she didn’t feel safe or whatever. And so she runs screaming for a trailer. So I’m like, Andy, you should sort of deal with that.

Andy, he deals with the gas, the actors. And then I sat down in her seat and I’m like, Hey, guys, just give it to me full. And it was the propane mainly. It’s like big fire, you know, sort of like patterns of propane. And so they gave me everything. And I’m like, yeah, I feel like my skin’s melting off. We should move the band forward, you know, and no one was hurt. She’s OK. But yeah, that’s called a skillet hero. I think we can see that honestly. It’s actually the most watched Christian video of all time. Well, that one or the movie they did monster that we did for them, I think is like 250 million views. One of them is put a link to that in the show notes and maybe that’s monster. We did Monster and Hero back to back. It was great fun. Anyway, I love that type of work. And so I went to direct the second unit on a movie called Courageous, a faith based film. That real Cinderella Story, a church in Georgia called Sherwood, was doing movies that Sony was releasing. And they were very successful and they had just done a movie called Fireproof that had done very well.

And they were doing this movie Courageous, and they made them primarily with church volunteers. So they’re like a thousand church volunteers. Well, courageous. They want to do a cop movie. They want to do action scenes, foot chase scenes, car chase scenes. Well, these are like wonderful things, like chase scenes in movies. You never want to combine them with church volunteers, or somebody will die, you know, in the process of making the movie. So I was brought in as a second unit director to just do the action sequences and try to get inside Alex’s head and execute those scenes for him in a safe environment with professionals and had great fun. And Alex, you know, Southern Baptists, sometimes I think the the most powerful thing in your life can be the right question. And Alex asked me a question and he just said, John, what’s your purpose and the purpose of your work? And I couldn’t answer it. And not only could I not answer it, I couldn’t stop thinking about it. And the whole time working for them on their film, I couldn’t stop mulling over this question of, like, not what do I do? And by the way, that’s a great question for anybody. Simon Sinek wrote a great book, Start with Why just fantastic book and the idea most people know. What they do, some people know how they do what they do. Very few people know and articulate in lead with why they do what they do. And so it was just a process of thinking about why we did what we did and what our purpose was. And that led us jumping into the fray of faith based filmmaking, which is an honor. It’s very rare thing to be working in an industry that is emerging in such a way that you can have your fingerprint on whatever it becomes. And that’s an honor to be an early pioneer in something. I remember talking with gymnast and we were doing a film, Woodlawn together, and he said, I see you and Andy and Alex and Steven and Devon Franklin and these other guys as like frontiersmen. And I said, thank you, Sean. That’s high praise coming from you. And he says, you know, John, most frontiersmen die on the frontier. Settlers are like, well, the trail will be clearly marked and will be frozen, pointing to the summit. But it’s an honor to sort of you know, if you think about what Michael W. Smith and Amy Grant, who launched our careers and music videos, did for music, they were early pioneers in what has become a platform that a lot of young people can be heard. That was our career to calling moment after the movie Courageous.

William Norvell: Oh, well, that’s an amazing story. Amazing story. Woodlawn, also nice Alabama film. Yeah. Yeah.

Jon Erwin: Real Black Bear Bryant after that, starting with a movie called October Baby. We got into the business of independent filmmaking and I like the quote from then on the Mike Tyson quote, Every boxer has a plan till he gets in the ring, gets punched in the face. You know, you get the ring and you learn. But that was the jumping off point to what we do now.

William Norvell: That’s awesome, John. And so walk us through a little bit. So you’ve got independent filmmaking and now you’re in Hollywood as well. You mentioned you commute back and forth, L.A. and you mentioned Lions Gate. Walk us through what that world looks like. I think some of our audience probably just doesn’t understand. Probably a lot of misperceptions on, you know, hey, it’s Hollywood antagonistic to faith driven films or does it matter as long as you make a really good movie? How that tightrope work? How do you think about yourself and the movies you’re making sort of coming through and out of a place that I think most people may think wouldn’t necessarily like it?

Jon Erwin: That’s a great question. I would say the majority of what we did for a while was outside the system. October baby, we had to raise the money to make and also to market. It cost a lot more to market and release a film that does to make it second film we did send out.

We did with Sony and then the third film we did Woodlawn. We did independently as well as I can only imagine. And the more success we achieved, you know, the more that, you know, it’s fun to sort of operate and develop a direct relationship. You know, one of the things that you can do today is develop a direct relationship with the consumer base, and that is very powerful today. So the more you do that, the more the existing sort of industry comes to you. And now we’re in business with a wonderful partner, Lionsgate. And I would just say there’s never been a better time. I mean, I like this verse in acts where Paul says of David that he served the purposes of God in his generation. That’s cool. Like the gospel never changes, but you got to own your time. Right? And so the way to get it to people does change. And I think that there should be a strong sense of ownership of I’m going to own the tools of my time and infuse them with the gospel. And I think when you think about it from that perspective, there’s never been a more powerful tool of storytelling than mass entertainment. It’s America’s second largest export behind agriculture. You know, there’s enormous infrastructure being built worldwide, completely flips the model of sharing the gospel because countries pay for American movies. And if you can cross a certain threshold of success, these movies go on global autopilot and these countries are paying you. And so it’s an incredible model to get the gospel around the world. It’s an industry that we’ve historically been underrepresented for quite a while. As Christians, I think it’s our fault. I don’t think you can blame it on some evil Hollywood agenda. I think we’ve abandoned the playing field. In my experience, people are open. They just don’t. I mean, like the chairman, Motion Picture Group is a great friend, a mentor at Lionsgate. I’m the only Christian he knows, you know, and that’s Christianity’s fault. So I think we got to stop blaming some evil conspiracy that doesn’t exist, in my opinion. And I’m deep inside the industry and we got to get in the dating game again. You know, now L.A. is the center of narcissism of the world, in my opinion. It’s like you could buy up every billboard in L.A. and put the words get over yourself and it would be a worthy investment. The entertainment industry is an interesting trifecta of sort of power, you know, money and sex. And so I think that there’s an interesting allure to it that my first manager said, you know, it’s not a business of psychopaths. There’s a bunch of really wonderful people, but it is one of those rare businesses where psychopaths can really flourish. So I think it’s not a safe place. But, you know, that’s not an excuse for us not engaging and harnessing the power of this medium. I think it’s really important. And I think we’ve gotten way behind. And I also think that we’re in this little sort of window of time where there’s, you know, the perception that. Entertainment is cheesy or less than or not as good, I see that as a businessman and entrepreneur is a massive opportunity for a brand, but that’s another subject.

I think if you look historically like we had our second movie premiere was at the Chinese theater and Sony put on a premiere for a movie there. And, you know, that’s like the Mecca for a filmmaker. But if you think about that theater, you know, the Ten Commandments are under glass inside. You know, from Charlton Heston’s movie and first movie premiere, there was Cecil B., the King of Kings. And, you know, there’s a lot of faith history. There was a time where faith based films were the epics and the blockbusters of the day. If you take the European art tour, you know, there’s an incredible fusion between faith and art. So we’re in this sort of ditch that we got to work our way out of and I think we can wear. Christian films are associated with poor quality for a lot of reasons. That would take a long time to unpack. But I do think it’s something that we can fix and that we can improve upon and then we can reestablish our voice and culture.

And I just think if you want this is the language of the time. If we want to communicate with a generation, this is the way to do it. And I think it’s ours for the taking. I don’t think there’s ever been a moment where Hollywood is this accessible. There’s just incredible opportunities for anyone that brings a relationship with an audience. So I think when you look at I can only imagine it shocked the system to such a great extent. It triggered this phenomenon called FOMO, which is the fear of missing out. We’ve never been this connected as a culture, but we’ve also never been this lonely. And so people have an extreme fear of missing out and a need to belong. And so whenever a group, whether it’s crazy rich Asians or Fault in Our Stars or I can only imagine what parasite, for that matter, whenever any group rallies together, champions and celebrates something, it tips over into cultural FOMO, into the zeitgeist, and that’s how you start getting millions. Our unified voice is very powerful and very leverage able. And I mean, the industry thinks differently. I think LA’s problem is they think everyone is just like them and thinks like them.

And certainly a certain political mindset is somewhat of a religion. And I find we’re just not represented. There’s some Christian groups that try to influence Hollywood from the outside, but the entertainment industry is so specific you have to influence it from the inside. And that means you’ve got to get really good at what you do and you got to hold tight to your values while you do it. And I just think that there’s enormous opportunities. I think we’ve only scratched the surface of what faith based films could become. I think that there’s a generation of talent behind and, you know, that will far outshine and out exceed our accomplishments. And I just think that we could make an enormous difference over the next decade in the entertainment industry. You know, my Bible says on this rock, I build my church and the gates of hell will not prevail against it. Nobody’s going to throw a gate at you. Nobody’s going to attack you with a gate. A gate is a defensive mechanisms. Gates are meant to be stormed. So we really need to embrace an offensive playbook culturally instead of a defensive playbook to reclaim our voice.

Jon Erwin: But that’s interesting. So I want to ask one question on that. So what is a faith based film mean to you? To people looking like I can think of your films, then I can think of you know, I think Angelina Jolie produced Louis Zamperini story on Brogan. And then, you know, some people were mad. It didn’t go enough into faith, but it was a story. It was pretty accurate to the book in my personal opinion. The book I read right, it maybe left out some things, but it was directionally accurate. You know, what does that phrase mean to you? And is it a broader hey, there’s multiple categories of that. But and so when you’re encouraging people, I’m interested in what are you encouraging them to do? What type of films, what type of influence could be achieved there?

Jon Erwin: That’s a great question. That’s a loaded question. It’s a question of great debate, you know, in the sort of entrepreneurism is space. One of the things that I think that you have to embrace as an entrepreneur is what differentiates you. And it’s OK to be different and to say, look, I love the work of all these people, but I see the world differently and here’s what I want to do. And there are faith based films that are meant to I think the sort of church term would be to edify the church. You know, they’re prescriptive. They’re films that are on topics that the church promotes. They’re meant for people sort of inside the church. And we start sort of almost by accident, really, on the film Woodlawn. And because it was so disproportionately used as a tool for evangelism, it’s fun to put a product in front of people and just watch how they use it. You know, I think one of the keys to being an entrepreneur is just extreme empathy for your customer and how they’re using the product. And we just start seeing tens of thousands of teenagers with Woodlawn come to Christ. And with the movie being used as a tool, we make decisions. Simon Sinek and in his book start with why I point this out. We make decisions emotionally and we back them up logically. So when you have a tool that goes straight for the heart, that’s just the way the brain is wired. That’s what God made us. And maybe that’s why Jesus told super relatable emotional stories and then he explained their truth. So the way entertainment works. I call it setting a volleyball that others spike, I’ll give you an example, there was a woman watching, I can only imagine with her son, I think, in Australia, and they were leaving the theater. And behind them was a woman they’d never met. Probably they had some sort of similar story, Dennis Quaid in the movie. And she was sort of wrecked. And she said to them, Are you guys Christians? And they said, Yeah, hello, nice to meet you. Are you? She said, no. But whatever happened to Dennis Quaid in this movie? I need to happen to me and I just need someone to explain it to me. Can you help? And they led her to Christ right there in the theater. So what a piece of entertainment. The way we design it is our when is when someone says, I need what’s in this movie, whatever’s in this movie I need in my life. And that’s happened over a hundred thousand times on the movies that we know of. And they just are these tools for people to take their results. Like if you show a youth group, if you present the gospel to youth group, you’ll have some sort of result.

But I guarantee you, if you show that same group, Woodlawn or I can only imagine you share the gospel after your results will be massively amplified. And that’s just because the movie is working on a heart level. The movie is working on a story level. A movie in its nature is a vicarious experience. That’s why it’s so powerful. That’s why it’s so dangerous. We typically observe art with movies or television. We enter the story and we experience the life of the character as if we were living in ourselves. It’s that powerful. And so when you give people a vicarious experience of the power of the gospel to change their life, they crave it afterwards. And it creates a window of time where they’re exponentially more likely to be open to the truth of the gospel with someone in their life at the local level. And that’s what we do.

So our simple metric, I guess, is we want to tell stories that are entertaining, cost as much to go to my movies. It has to go to Star Wars. So we want to entertain first. If you want me to lose my mind, people that say, well, the film doesn’t have to be entertaining, the film doesn’t have to be good because it has the gospel in it. I will lose my crap like the film should be. We should earn the message, not use it as a crutch for a poor product. So the film has to entertain and be emotionally relatable no matter what you believe. But it’s engineered to showcase the power of the gospel, to change your life or the power of the virtues of Christianity and society. And that’s our sort of funnel.

I don’t consider this to be a genre so you can do all kinds of different films that serve that same goal. But it’s film making on purpose and it’s films that are meant to lead people to life transformation. But that has to happen on the local level in relationship with people. So it’s so wonderful to see youth, pastors, moms, dads, football coaches, pastors use the films as tools to start life changing conversations. That’s the goal.

Henry Kaestner: So I love that. OK, so I want to switch gears a little bit and talk a little bit more about the investing side of things. You know, enough about our ministry to understand that faith driven investor is about changing them dynamic that so many of us have done for years, which is to have all of our money run by a Merrill Lynch or somebody else like that over here in our left pocket. And then to the extent that we understand the biblical message of generosity, give away all the surplus or to different ministries over here, of course, a faith driven investor, we believe that we can accomplish many of those, if not all of those same ministry goals by storing our investment capital with an intentionality. OK, so you’ve just made the case, I think, very, very well for how movies by due to their vicarious nature through some of those examples in Australia and other thousands of times outside of movie theaters all over the world, how you’re able to accomplish that type of a ministry goal. And yet it’s also an investment by it’s right. Most investors say, OK, I think I’m getting the concept of faith driven investing. I can invest in a private equity fund or a real estate fund or maybe some public equities and things like that. But how in the world do you invest in movies? Where do you get started? And I’ve heard that these different tranches, the only people really make money are the distributors or whatever. Help us just navigate through all of that as you make the case that actually you can invest in these cultural change agents, if you will, and not only accomplish your ministry goals, as we just talked about, but maybe financial goals as well.

Jon Erwin: Help us. That’s exactly right. And to make something scalable and sustainable, you have to make it profitable. And I think that there’s a tendency in faith based filmmaking or faith based entertainment to sort of pull the finish line back to the results achieved and use poor performance or poor thinking to use the message as some sort of get out. Well, we got the gospel out, so it’s OK. And that happened. You know, I could talk about some early successes. Of course, the breakout that led to the Lionsgate deal is I can only imagine. So I could talk about the early models, but I’d like to actually hone in on failure because I think failure is really where you learn if you fail correctly, if you know how to fail. Correct.

Great retailers book principles great on that level. I love that book in terms of his process of you call looping, we did a movie called Woodlawn, by the way, that I get a mention.

Henry Kaestner: That’s first time radio has been mentioned on the Faith Driven Entrepreneur podcast. And I love that you did that for those people who had tuned in to the feature of an investor conference. You’ll notice Tracy Evans homage to Ray D’Alessio when he reaches for the Bible and he picks up, I think, the same book principles.

Jon Erwin: Yeah, it’s great. Yeah, that’s great. And Ray’s course not a believer, but his podcast on how to create a culture where the best idea wins is great. That led me to his book, which is much better and just a wonderful set of principles that work and a process for discovering principles through rapid experimentation and bite size failure. So I think to win, you got to learn how to fail. So we had some initial wins were October, baby made money, moms night out made money. They weren’t breakout hits. And I think we got a little cocky and we made Woodlawn now Woodlawn highest critical rating of any film. We’ve made our first eight plus cinema score.

There’s only about 70 films that have ever gotten any. Plus, it’s the highest grade an audience can give a movie, but I can only imagine to have that grade. We’re one of only seven directors that have to, but we made Woodlawn for about 11 million. We raised the money to make it and then we raised some of the Pinay, which is prints and advertising, which is the money to release it, but not all of it. And we didn’t sort of have control. And the long short of the stories, we didn’t accomplish our goals. We didn’t do what we set out to do. We needed to do about 20 million to break even a box office with only about 15. And it was the first real punch, you know, and what happened was, like you say, there was layers to the investment. So there was a lot of distribution fees and there was a lot of the play money in film as last in first out debt. And they got their money back, you know, with great interest rates. The money behind that, which is the equity, which is the people that are with you from the beginning, are buried at the bottom. And that was the first time I had not returned an entire investment. And I hate to lose like my role in life is like either we win or let’s play again, you know? And I just couldn’t sleep at night with the fact that we hadn’t returned the investment. About two thirds of all the money came back. But again, the equity investors took the biggest hit.

And we actually spent five months in a postmortem, which I won’t go into now, but just soliciting criticism from people inside and outside of the campaign experts. We just wanted to figure out. We wanted to learn. And that led to one hundred and seventy page playbook manifesto sort of postmortem. That was the playbook for I can only imagine. So all the thinking that led to this eighty six million dollar juggernaut that was, I can only imagine, came out of this thorough study of a failure. And I think it’s important to name it failure, because a lot of people think, oh, you got the gospel out and twenty five thousand kids were saved, but we didn’t accomplish our goals. And there’s a word for that. And it’s called failure. And I think stupid for Jesus is still stupid, you know, and we did some things that were dumb and we embrace those things. And we learned and there was a lot that we learned from I like this horse, shall said, quote, We’re leaders. That means we forfeited the right to make excuses. And so we embraced the idea that this is our fault and let’s just give that a hug. And we learned and out of that came a financial model. I would just say that God’s principles work even if they defy the status quo of your industry. And there was a status quo to my industry that these were two different classes of investors in your equity. Investors actually sit at the bottom and then either a studio or another investment group swoops in and you sort of graft into this vulture system and, you know, you don’t have any leverage or control, which are the two greatest words in my industry, at least. And you lose those things. And so you end up with fees that are out of control and a layered system and a totem pole of inequality.

And this whole category of money, this debt called Pinay to release the film, which is typically far in excess of what it takes to make the film. And that’s first in, last out. And typically in retiring that money, a lot of equity investors get screwed. And when I really started diagnosing the problem, the idea is no problem can be solved till it’s fully understood. So trying to take time to deeply understand a problem is a fun process and think your way to the bottom of it and understand its nature. I like read Alia’s book of looking at something as a machine, looking at a company as a machine and trying to understand the basic components of how that machine works. And, you know, basically this whole acquisitions market in film for studios relies on you bleeding out and having your movie and not having a means of getting your movie to the marketplace. Well, in any other business, if you just had the plan to make a widget but you didn’t have the playing time or money to market, distribute and sell your widget, you don’t have a business plan. You got a widget. Well, in film, somehow there’s just this recurring thinking that if we just get it made, everything else will happen. That’s not true. I couldn’t stay awake at night after I can only imagine because of the inequality of this financial model. And then I started thinking, like, if you look at the massive amount of Christian wealth, you guys know the stats a lot more than I do. Like, we should be able to spend our way back into the entertainment industry because there’s so much wealth within Christianity. So what’s wrong with the problem is it’s just been a lack of stewardship from people like me or other filmmakers or other people that don’t put the investor first. And people have lost money. Nobody likes to lose. And so most investors that could fund these things have either lost money in a film deal or know someone that has lost money on a film deal and that keeps the spigot turned off for entertainment as a sector. So we looked at that model of like, OK, here’s out of control fees, a whole category of money that swoops in, last in, first out, and then the people that we really love buried at the bottom. This does not feel fair.

What if we just took this sort of totem pole of inequality and turned it on its side and said, we’re going to create a blended vehicle and if you invest in this vehicle, 40 percent of your money will be deployed to equity, 60 percent to this payday, all your money making money. But we’ll have leverage to go out and get the deals that we want. And it’ll add stuff that doesn’t exist in the entertainment industry, like fairness and common sense, you know, and third grade arithmetic to the mix. And so we went out with that model with I can only imagine, and everyone inside the status quo and said, that’ll never work. These are two classes of investors. You’ll never raise the money because you’re also trying to raise more money and it just won’t work. That’s not how it’s done, but it just seemed fair and ethical. And so we went with it. And then at the time, I was living in Birmingham, Alabama, and I went to a wonderful church, a church of the highlands, the pastor there, because Hodges brilliant mind. And he was going over the financial model of the church. And typically, as a businessman, you sort of scoff at I’m saying we shouldn’t, but there’s this sort of thing like, oh, we’re smarter than churches. But he had this simple principle. I just I’m convinced life is about principles like discovered and applied. And he had this simple principle that basically the churches budget every year. Was 90 percent of their previous year’s budget, even though they grow 20 percent year over year. So the basic principle was they spent below where they were not projecting where they could go. They actually added margin. And so they’ve never done a capital raise and they’ve got like 150 million in cash and assets sitting in the bank. No debt because of the simple principle of margin.

What I realized is I was way over my skis trying to influence culture, betting really hard on where I thought we could go, not where we’ve been. So with I can only imagine we did this blended vehicle that added a dollar one return. We went out our whole pitch beyond the passion for the movie was let me just educate you how you or your friends have lost money in a film deal like it was a whistleblower pitch like this is what nobody else will tell you. And then here’s what we’re doing about it. If you don’t wanna be part of it, that’s fine, but at least you’ll be educated. And so we went out with that pitch and then we engineered I can only imagine we made a cheaper movie and we engineered it to be profitable at Woodland’s box office, which was fifteen dollars million. Now, I can only imagine did that amount of money in like two and a half days in the marketplace because we did like seventeen point one opening weekend. So everything between that number and the 86 million dollars that it achieved was margin and led to an enormous win for us and all the partners in a deal with Lionsgate. But it was a simple principle heard in a sermon.

Henry Kaestner: So I think if I have to I can’t go too much further, though, without asking, because it’s just stuck with me now. So the Church of the Highlands is one hundred and fifty million dollars in cash and they invest. This is something we can leave on the cutting room floor if this doesn’t go well. But I wonder, were they an investor in your film?

Jon Erwin: They were not. I’ve never gone out to anybody, but, you know, we work again. The other thing I think for entrepreneurs out there is just to know your investment type. I work with first generation, second generation self-made people with networks typically in the 10 to five hundred dollar range. I mean, there’s a few anomalies like the Green family is a wonderful family. They’re billionaires, but they don’t have that billionaire nest. Then they’re blue collar billionaires. You know, now, film is a it’s a speculative, high risk investment that belongs in the alternative side of your portfolio. So it’s for people that have money to burn that one to influence culture. And we structure the deals where you can make a fortune if the film hits. But, you know, I think the biggest thing for people in my line of work is you never take money that people need. And I think you put that out front and you lead with it. And we have an incredible track record, you know, with returning the investment in the money we make for people, because I think it’s all about hedging the bet. It’s all about modeling the downside, not getting stars in your eyes on the home run and really protecting that downside. So they’ve never I’ve never actually I’ve never thought of that. Maybe I should. But typically it’s people that, again, exactly what you’re saying that have done very well in some sphere of business and want to be a part of influencing culture through entertainment, through a profitable investment vehicle. But that’s structured to sort of change lives. So it was really through a thorough study. I just cannot recommend enough to entrepreneurs learn how to fail correctly in order to win and also just be constantly learning and seeking out knowledge and insight so that you can solve the problem. And I think if you can do that, if you can combine an extreme resilience with a certain level of intellectual curiosity, eventually you’ll win. You know, if you’re just the last man standing that won’t go away and you’re not afraid to confront your own mistakes and not take yourself so seriously and try different things, eventually everything will coalesce. And for me, that was March the sixteenth twenty eighteen when I can only imagine came out. And you know, again, it was interesting when my dad bought me that camera when I was sixteen, he said, if you give twenty years of your life, if you guys give twenty years of your life to something, you’ll really master it like if you stick with it. And it was twenty years almost to the month between buy me that camera and the release of I can only imagine. So I think it’s just about not giving up and learning and applying what you learn as an investor. If you’re looking at entertainment, I would say that I love one of our original investors, Raymond. He’s a wonderful friend in Dallas, Texas, and he said, you know, I don’t invest in movies. I invest in two kids from Alabama. I’ve always appreciated that about him.

But there is something to invest in, people, you know. And so I think if you’re looking at entertainment, invest in people that you believe in and stories that you believe in and ultimately voices that you want to see developed, I think that, you know, just know that, again, this should come out of an alternative side of your portfolio. There should be money that you’re not afraid to lose. The deal should be structured in your favor in the event that you win. For that reason, I love the industry that we get to work in because it is like brutally competitive. It’s like winner take all. And you have to embrace that. You can be a bare fisted capitalist and a Christian.

Not same time, you know, and it’s fun to win, you know, and we enjoy winning, but I think that when you look at this space, you know, you should again, look at it coming out of the attorneys to your portfolio. You should look at it as a means of influence and a means of developing talent and voices. You do need capital for a memorable call, patron. And the idea that every great move of God is paired with a patron and capital is the means of influencing in this space. But you just need to do it smartly. And I would say just understand that you need to hear a plan. Here’s some things that I would want to hear if I was taking a picture of filmmaker. First of all, I would want to hear a pitch from a filmmaker who also has a lot of knowledge about we don’t make films, we make films for people. And so you need to hear a filmmaker that has an extreme level. I would be listening for a sense of empathy and a great sense of knowledge on who the consumer is and who the film is for. A film needs to be made for a group, and my gotlib, who ran Samuel Goldwyn for many years, he taught me this great thing. He said, I don’t ever ask, is this a good or a great film? I ask, is this a great film for a group of people? How large is that group? And do I know how to get to them, you know? And so I would be listening for instead of like a lot of what happens is so passionate about the story and stuff like that, it’s like this is the film. And I really think this is the audience for the film. And let me tell you about the audience. I can tell you who the core consumer is for a faith based film down to their age where they live, how much their home is worth. You know, what is in their shopping cart when they buy the product, when they buy physical spending DVD, which they still do at Wal-Mart, as opposed to like lala land or something else. And so there just should be an extreme level. I just I’m a huge believer in extreme empathy when it comes to products. And so you should be listening for someone who has a relationship with an audience and has a knowledge of what that audience wants and is making a film for an audience and has some sort of a reasonable plan that has some sort of a logic of how they’re going to not only make the film, but distribute and release the film and market the film specifically. I think that there’s a horrible fault, some in entertainment. And typically this is why most people lose money in films, is because it’s a producer that’s really only thinking about getting the film made. And that’s a Herculean task. It’s so hard to make a film, but as a filmmaker, you climb that mountain and then the fog clears and you realize there’s a mountain twice as tall ahead of you that you weren’t prepared to climb. And that’s marketing and distribution. So I would look for a holistic plan to not only make the product, but take the product to the consumer. That makes sense. I do like this whole radio trick called the believability test in his company, which he wants to create a culture where the best idea wins. Everybody has a voice, but opinions are weighted and believable when someone who’s speaking has accomplished the thing in question more than three times successfully and has a great logic of cause and effect to back up their opinion, it just makes sense. I would look for that and then I would just know that the common problem and here’s a great question I would ask. The common problem in film is that there’s another category of money called prints and advertising, which is the money required to release a film nationally. So like, for instance, I can only imagine costs seven million dollars to make our initial Pinay budget was 13 and a half million, and then we scaled up to 19 million by the end. It’s very expensive to release a film nationally. So in the typical what I would call unfair system, not the studio system, but the acquisition system, the independent model, that money sits on top of the equity. And I would ask them, what’s your plan for the Pinay and just start opening that up as a discussion. I think that’ll show your sophisticated, but also show that you know how typically investors lose money and then the creative arts, you know, it’s all about empowering the right people and it’s all about talent and it’s all about, you know, working with artists is very strenuous at times, were complicated fonts. And so sometimes, you know, greatness is not going to be obvious. And so a lot of times what I do is I want to source down to the person doing the thing and make sure that person is qualified and present, oftentimes or not. So I would make sure if I were looking at a film investment that the talent is in the room and attached. A lot of times it’s sort of like you get pitches that are almost like it would be like a pitch of like, hey, I just hired Michael Jordan’s physical trainer. Let’s go make a basketball team. What’s your name? Michael Jordan. And so a lot of times you have like executives or business people, but the creative force needed to do the thing is not present in the deal. So I always try to hunt down to the bottom. Is their talent involved in this deal? You know, because it takes talent to create great art. And so I would look for that. I would look for a filmmaker that you really believe in. I do think overall it’s a worthy thing to invest in the entertainment sector. I think we should embrace that methodology of Caleb in the Bible when he said, give me this mountain, you know, to Joshua. And I think we should look at that hill with the Hollywood sign on it, with that same mantra of light. God, give us this. We want our voice back. Culturally, I just think you need to be smart about it and you need to be educated about it. And I just believe in giving. I think we keep repeating each other’s mistakes because we’re not sharing information. And I think that the way out of this is to share information. One of the things I did, I haven’t released it yet, but during College Board, I did a lot of teaching series on like ones on film writing, ones on how to raise fifty million dollars for films. And I go over all of the financial models in distribution, how to make money and where you get screwed and how to approach. It’s more for the entrepreneur side, but all the information’s in there. Happy to share that when it’s done. It’s just a way to try to get the information out there so that we can stand on each other’s shoulders. I think overall, you know, we should be encouraged that the ability to influence the world through entertainment has never been more accessible. I do defy the evil Hollywood agenda methodology. I don’t believe in it. And I’ll give you an example. I was talking after doing the Lionsgate deal. Lionsgate is the newest of the major studios, but they did like The Hunger Games and Lala Land and the John Wick films. And Joe’s the chairman of Motion Picture Group at Lionsgate. Wonderful guy, great mentor, great friend, really smart guy. And shortly after we did the deal, he said, hey, John, let me ask you a question, because you’re like the only Christian I know. He had just come in and taken over the Motion Picture Group and he said, there’s this book that’s floating around that was optioned sort of before my time, but there’s some momentum for it. And I just was wondering, it’s called Zealot The Life and Times of Jesus, the Messiah. I’m sorry, Jesus of Nazareth.

You know, you’re the only Christian I know what Christians like that think. I had read it like couple of times. I said, and the basic premise of Zealot is that Jesus was just a rebel leader, that Rome crucified like a Braveheart character. And all of the divinity stuff in Christianity was just added on later. And it’s not real. So no, Christians wouldn’t like it. But I was like, how do I explain this to you in words you can understand?

And I’m like, that would be like if I brought you a pitch for Harry Potter under the basic premise that magic wasn’t real, you’d have a kid running around London crazy with the stick. The fans would hate it. And that’s what this is. You’re taking the force out of Star Wars. You’re taking magic as a story. You’re taking out what the fans want out of the story. That’s what this is. And I said, look, I think my audience will be wrapped around this building with pitchforks and torches. I’ll go talk to him, but I don’t think they’ll isn’t. They’re going to burn your house down, man. And he laughed and he said, I get it if we won’t do that. And I said, if you don’t know what I think we should do, I mean, you do like a trilogy on the Apostles, like a character drama, like a band of brothers type thing on a generation that literally, you know, this family, this group of guys that shape the world as we know it today in one generation completely under equipped. That’s what I would do. I do a trilogy called Apostle’s is like, OK, I’m like, what is it? Let’s do that. I’m like, that’s a huge. That’s a massive. That’s a big. And I’m like, just.

He’s like, that sounds great, let’s go do it. And so that’s one of the things that we’re working on and developing, it’s going to happen. My point is, let’s say I wasn’t in the room. Joe doesn’t know. Let’s say Zellar gets made and let’s say every Christian conservative blog out there is like the evil Hollywood agenda. It wasn’t an evil agenda. It was a lack of knowledge because there’s no one in his life representing our audience.

It’s our fault we’re not in the room. And to know that I’m the only and it’s funny, we did the Lionsgate jump in was the CEO of Lionsgate is a great guy and he’s a good friend. And when he came out, did the deal, came out of his office, one of the heads of the departments waved me over. He’s like, come here, come here. And I’m like, hi, I’m Johnny told me his name. And he said, I want you to know I’m a Christian and I’m here. And there’s a few of us and we’re really glad you’re here, you know.

And after I said that, I think this is like you can come out about it, you know, I came in through the front door. They’re pay me a lot of money to be here. And this is your moment, you know? So I think that there’s just a complete lack of representation. And again, I love that or shows like what were leaders, which means we forfeited the right to make excuses. I just think as Christians, we have to take on the mantra. We have to stop blaming and we have to engage and we’re not in the game in Hollywood. That is our fault. There was a time when we were I don’t know why we’re not today, but we’ve abandoned the cultural playing field and we’re suffering the consequences. And I think the only way to get to a generation is to get back in the game. So I think before you change the way you act, you have to change the way you think. And we have to start thinking differently about the nature of the problem when it comes to entertainment, because I think we’re in this perpetual victim mindset and we’re getting nowhere with that mindset. And I think that mindset, you know, we all have the right to our own opinions, but we do not all have the right to our own set of facts. You know, there’s one set of facts, and I’m deep inside the industry. The facts don’t line up with our opinions on the issue of evil Hollywood agenda. It’s our fault. And if it’s our fault, it’s ours to fix. And I just think that we need to get in the game and we need to trailblazer a little bit and get some paths where a lot of other Christians can follow us. I just think that there’s enormous talent emerging and we need to give them a voice and we need to give em a voice as quickly as we can. The only way to do that is to be smart and to be smart, not artists, to be smart entrepreneurs and to do smart investments and to learn and to embrace the idea that the entertainment value of the product, the success of the product in the marketplace is as important as the message we’re putting into it, because that’s the way we make the scalable and sustainable over the long haul.

William Norvell: John, thank you for joining us. This is just been amazing. I’m just thankful for you sharing this and being a part of this industry. And unfortunately, we do have to come to a close. And the way we love to close our shows is exactly what you have laid out in what you do for a living. So no pressure, but we’d love to see how God’s word transcends our guest and our listeners. And it’s just amazing the stories we get to hear where God was working on your heart on a certain piece of scripture. And one of our listeners needed that as an encouragement or an admonishment or exhortation or whatever that may be today. And so if you and I we invite you to share where God has you and his word could be something you’ve been studying for months, could be the season, could be something he told you this morning. But just invite us into your world and in your study of his word.

Jon Erwin: Yeah, I mean, a couple of things. Number one, on the level of just being an entrepreneur, one of the things I like is when Paul in Philippians three says, you know, not that I have already attained or already perfected, but I follow after so that I can sort of apprehend that for which I’ve also been apprehended. And he said, I don’t allow myself to sort of have done this. I was forced to memorize in the King James version because I’m from Birmingham, Alabama Baptist, he says. But this one thing I do, forgetting what’s behind and reaching towards what’s ahead, I press on towards the price of my calling of God in Christ Jesus. I think that idea of relentless focus, you know, and just focusing on a few things that are important instead of a lot of things that aren’t important, I think as an entrepreneur would be my advice. And I think that that just keep the main thing, the main thing. Know what your purpose is. No. What you want to achieve. No. What’s most important and not necessarily just what’s most urgent and just chase those things relentlessly. I think the people in my industry that succeed have a level of relentless drive and passion, energy and focus that’s uncommon. And I think that’s biblical. I would say on a personal level, you know, we’re doing this covid document. I’m not really allowed to talk about it, but I’ll mention a little bit on sort of the all encompassing history of Christian music. And every artist in the world is involved in it because they all had nothing to do. And one of things I love about it and then I just thought about the Bible. So many of us feel like we’re not equipped, therefore we can’t be called like I’m a messed up human being. I have problems. You know, I’m working in the entertainment industry. I don’t have a college degree. I’m from Birmingham. And then you read through the Bible. And it was just interesting with the music. How all these artists sort of built on each other’s shoulders and then built something really magical and inspired the world with their music, with a lot of flawed people in there, a lot of tragedy, a lot of betrayal, a lot of heartache, and yet great music, wonderful people, but flawed. And then you look through the Bible and God goes out of his way to call flawed people for reasons unknown, I think. So he gets the glory instead of us and you know, the whole jars of clay idea. And I think that that was a great inspiration to me, because I think if you look at yourself, you can say, you know, I’m just not good enough, I’m not a good enough Christian or I’m not educated enough or whatever. There’s always that. And I think to just rest in the idea of God called me, I didn’t call me. And because I’m called, he’s going to qualify me. Right. So God qualifies those that he calls he doesn’t call the qualified. And you don’t have to be perfect or be unflawed to be able to relentlessly chase your calling and be a person of influence and great influence to be educated. You don’t have to do what the world would say is the person that would. A buddy of mine Mike Flaherty founded a company called Walden that I really like. They made the Narnia films and he’s a believer. And he’s like, if Lionsgate only knew that they’ve rested the future of their studio into home homeschooled kids from Birmingham, Alabama. You know, and I just think that if God puts a calling in your life, you don’t have to feel like you’re qualified to use your gift. And that’s probably really recently been on my heart and soul in mind just from this documentary that we’re working on. And I’m far from perfect. And yet God called me and I’m far from qualified, and yet God called me. And I think you can be, too. So I think that that’s what’s probably most on my mind these days.

William Norvell: Amen, Amen, Amen such a great place to end. And especially as most of our entrepreneurs see see big dreams and see something in their soul where God’s gone towards it and there’s no lack of naysayers or you shouldn’t do that or whatever that may be. So I just thank you for sharing that message. Thank you for spend time with us. Thank you for running towards a place where people have run away from in such a great way.

Jon Erwin: Well, you guys, too. And thanks for putting the resources out there, both for entrepreneurs and for investors to make a difference in the world. You know, again, many of the things that I didn’t know the difference between I can only imagine massive success. And Woodlawn was not a better movie. I had to become a better leader. I had to become a better entrepreneur, and we had to become a better company and we had to model some smarter financial principles that are universal. So thanks for taking the time to put resources out there. And thanks for your podcast. Thanks for having me on. God bless you guys.

Episode 55 – The Continent of Potential with Iyinoluwa Aboyeji

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Today’s show is a great reminder that Faith Driven Investing is not limited to North America, nor is it limited to any one part of the globe at all! And our guest today is living proof of that. If you’ve been following along with the show, you know that Africa has been a recurring theme, and it is again here today. 

Iyinoluwa Aboyeji (or E, as he goes by) is an entrepreneur from Nigeria who has founded several startups—one of which received funding from Mark Zuckerberg and another which has processed over $1.2billion in transactions—all of which he’s going to tell us about. 

E is also a great example of why investors need to know about what’s going on in the continent of Africa. Listen in to hear him tell you why.


Episode Transcript

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Henry Kaestner: Welcome back to the Faith Driven Investor podcast. This is a special episode for us. They all are. I know. But this is one where we get to say that Faith Driven Investor and of course, is not a North American thing only. In fact, of course, we think that some of the very best investment opportunities to participate in what God is doing in the world are overseas. And if you’ve been paying attention to this podcast over the course of the last several months, you’ll know that I have a renewed interest in Africa. Sovereign’s Capital has been an investor in Southeast Asia, which is very clearly not Africa, and the United States for a long time. But it was a trip that I made to Africa last summer, first time having been to East Africa in oh gosh, almost 40 years where I came to understand and just really impressed by the amount of economic development and the extent of the Christian community in Nairobi. I had spent quite a bit of time in South Africa over the last, say, 15 or 20 years. But God really pricked my heart, if you will, just led me into really being excited about the continent. And then I read this book called The Prosperity Paradox, written by Clayton Christensen, who wrote The Innovator’s Dilemma. And his last book, right before he passed away was Prosperity Paradox, talking about the investment opportunities in Africa. And I’m looking through and I see that he’s got two coauthors. One is the editor, the Harvard Business Review, and another one is a guy by the name of Efosa Ojomo. And as I’m reading this book on a plane, I’m thinking, oh, my goodness, I wonder if Efosa is a believer, if he’s serious about his faith. And as it turns out, of course he is. And we had him on the podcast several months ago. He was a featured speaker at our Faith Driven Investor conference, and he was kind enough to introduce us to our podcast guests today.

And it is how we know him. He’s got a much longer name that he’ll share with us here in a second. But E Aboyeji has been identified by Efosa as one of the young leaders of tomorrow in Africa. And that’s apropos because Africa is such a young continent with so much potential and really, from a demographic standpoint, has more people that are going to be entering the workforce over the next 20 years than the rest of the world combined. And so it’s really something extraordinary when you consider the fact that India and China are not in Africa and South Africa is a continent that’s on the rise. And as we just as I sit this kind of frame before we welcome to the program, I do think about this great presentation that Finny Kuruvilla gave at the Faith Driven Investor conference. And if you attended the conference, you’ll know what I mean. If not, you’ll see a link to the Finny presentation in upcoming newsletter. And when he talks about Christopher Columbus and he talks about the fact that as he went off and to sail into the new world, he did that with investment from not the Italians and not the French. No, of course, people in Argentina and in Mexico would be speaking Italian. Today, if he had been able to get his financing from Italy, his home country, but instead he got it from Spain and of course, the new world, speak Spanish. And it does make me wonder and hopefully will make us all wonder what might it look like if Faith Driven Investor us are the ones that come behind African entrepreneurs and African investors? What might the continent of Africa look like over the course the next 20 years? If Faith Driven Investor is more specifically, Christian investors are able to come alongside of bring an encouragement to the entrepreneurs and the building out of everything from infrastructure builds all the way through to software as a service and everything in between. So we’re going to look at that and we’re going to talk about the opportunity for that with E! Who is the founder of Future Africa. And welcome to a program on Africa. Thank you very much for being on the show.

E Aboyeji: Thank you so much for having me. It’s such a pleasure.

Henry Kaestner: Well, as I mentioned before, we’ve had some episodes on the show dedicated to Africa and something we’re going to be talking about a lot over the coming months as well. But before we do that, I want to get personal. I promise that you’d say you’re much longer name and pronounce so perfectly, much better than I. But who are you? Where do you come from? What was it like growing up and going to school in Nigeria?

E Aboyeji: That’s awesome. So my full name is actually Iyinoluwa. So it’s like I am, you know, like I am. And it’s not spelled that way. But basically, you know, when I moved to Canada High School my last year of high school and university, my teacher couldn’t pronounce my name. So just started calling me E and that’s been my name ever since. So you can just call me E and save yourself. Well, who am I? I mean, at the end of the day, I consider myself a child of promise. A child of grace, really. My parents were pastors. They were very big in the student movement, used to be called the SU movement scripture union movement back in the 70s and 80s. And so my parents basically were entirely committed to service of God for the longest time. My dad actually currently leads the Foursquare Church in Nigeria. It’s a very popular global church. He leads the one in Nigeria specifically. And basically, I think, you know, one of the stories that my parents taught me was basically, look, what we heard from God when you were born was basically, you know, I will reward your faith when that’s to me by giving you a son who will become a glory for me to the rest of the earth. So, I mean, that’s kind of the prophetic quality that I operated, essentially, which is really about how do you give glory and honor back to God. Right. All the amazing things that he does, just as a matter of course. But by way of profile, I mean, I went to school in Nigeria. I had the pleasure of going to having an incredible education at a Catholic school achievement school, for that matter. And that really, really shaped the kind of person that I am today and what I consider useful for me to do with my time. And then after I graduated from high school and I was going to Anglican primary school, by the way, I went to university in Canada after I finished high school, did a gap year, went to university in Canada, University in Canada, went to a specific Catholic College of the university, even though it’s a public university that’s called St Jerome’s University, so also a faith based university education. And then through that period, I mean, when I graduated, I had started a company. I graduated and immediately sold the company I was working on throughout my university education. I think from about the third year of my university education to the last year. I sold it year after I graduated. And then I moved back home because there was a lot of work that had to be done to rebuild the country and I felt called to do that work. So I went home. Even though most people tend to go the other way, people typically immigrate from Nigeria to Canada, not from Canada to Nigeria. But I went home and then, you know, I built a company that ended up morphing into Idella, which was a home run. And then I built another company called Flutterwave afterwards and then after basically retired from active entrepreneurship to become more of an investor. I thought that’s what I’m focused on today.

Henry Kaestner: Tell us about some of these companies. Most, as I know Flutterwave, of course, Efosa had introduced me to it, but most of our listeners probably aren’t familiar with some of these very successful startups that you’ve been involved with in Africa. Where are these companies? What do they do? What are they selling?

E Aboyeji: Absolutely. So with Andela, which was really the breakout startup I got involved in, what we did was we recognized very quickly that. Africa had a massive, you know, talent pipeline, and like you just said earlier, more than half of the world’s working population is from Africa. It’s going to come from Africa over the next 20 years. And we realized there was no dedicated system for identifying that talent and helping them grow to their full potential. So specifically, if you think about it, in the US, I think schools right. In India, you have I teach in China, you have the major university exam, which kind of distinguishes the most talented from everybody else and that, in fact, the most talented to help them get to wherever they need to be for the betterment of the country in Africa. I mean, you could have a very talented young man or woman hawking oranges in the street, which is just a travesty to, you know, what God has put in that young man or woman and what he expects of that young man or woman over the long term. So what we decided to do was we would identify exceptional young people who were extremely talented. We’ll put them to a very high pressure training program over a period of four years during which after the first two years, they start to work for global technology companies from Nigeria. And then at the end of the four years, they kind of have the freedom to go work with other companies or build businesses or, you know, do whatever they like, really, after the four years is kind of like a pseudo university education, but extremely talented. And that’s what we did. We built that business from 2014. It’s still going strong today. We raised one hundred and eighty million dollars from all sorts of folks from Spark, which backed Twitter, to Mark Zuckerberg putting in some money as well. Al Gore also put his money and the business is very strong. I mean, last year you get about 50 million dollars revenue. We have about two thousand plus engineers on the platform and we serve roughly about two hundred technology companies from across Africa. So it’s now expanded beyond Nigeria, where we started to. It’s in Kenya. It’s in Ghana. It’s in Egypt. It’s in Rwanda. It’s in Uganda. So we’ve now expanded across multiple different African countries to bring things back to Nigeria a little bit.

Henry Kaestner: And I’m going to mention something. We’re going to get out of the way because a number of American investors have been invited to participate in investment opportunities in Nigeria before. This is not the first time they’ve heard of it. And I’m going to presume that these are not ones that you would all endorse. Correct.

E Aboyeji: Which ones?

Henry Kaestner: Well, there are a number of you might know of the emails that will come in saying listen, I’ve got an opportunity for you in Nigeria where some money…

William Norvell: This is Henry asking if you are a Nigerian prince I think.

E Aboyeji: I am not a Nigerian prince. But, yes, I understand what you mean. But, yeah, basically, you know, I mean, the reality of those emails is that the screen and under utilization of talent, because those young people imagine what they could do if they knew there was a better way. You know what I mean? I mean, if they could figure out without infrastructure how to send emails like that that were just stupid. And to be honest, most people don’t even open emails. So it’s actually much harder work than most people give them credit for. Imagine if you could teach them how to do software. You can teach them how to do business or teach them how to be content with that same skill set. I mean, it’s incredible. Yeah, that’s what you see here in Nigeria.

Henry Kaestner: I think by 2050 it’s going to be the sixth largest country in the world. Lagos is going to be a city of 32 million people. And I don’t want to talk about just Africa, although the different investments that you’re involved in are all over the country, as you just talked about. But they help us to understand Nigeria because it’s a misunderstood country, obviously, one that has a whole lot of promise. Make the case for Nigeria, but help us to understand what Nigeria is about.

E Aboyeji: I think, you know, when you look at Nigeria, what you see is. What happens when a human being is actively denied the human dignity that God has given to them? Right. And there is almost like a concerted effort to drown your potential, right. Just keep it under, you know. Let me give you a picture about Nigeria. Nigeria was essentially created as a corporate entity. It’s the first charter city in the world. Right. The Royal Niger Company arrives on the shores of Calabar. Right. And establishes itself and creates a protectorate from which it was supposed to be shipping all power and doing trade, ultimately kind of slavery, perverted that original purpose. And while the British government stopped it, a lot of people conspired to maintain the slave trade for way too long. I think according to some research, over a fifth of all the slaves in the world came from Nigeria. Right now, what has happened over the years is Nigeria has shown itself to be the best of black people and also some of the worst, as you can indicate by the emails that you see. Right. And what’s the differentiating factor? What’s the water column? The moment you get a Nigerian out of these circumstances and you put them in a position where you are valued for who they are as a human being and for the talents that God has given to them, it’s life and death, right? The same group of people who can’t get infrastructure right in Nigeria, the same country produced somebody like Occulus, who’s the general partner of global infrastructure, is one of the largest infrastructure investors in the whole world. He owns Gatwick Airport, owns trains and all that. The same Nigeria that can’t get the right kind of leadership, currently has a candidate in the running for the World Trade Organization and the person Engozi Okonjo-Iweala, right. And did an impressive job out of the other women and other leaders that have done impressive jobs all over the world.

Henry Kaestner: You know, I’ve heard, by the way, that of all the expat groups, the Belgians that have moved to the United States, the Swedes that have moved the United States, the Vietnamese, the Chinese of all the expat groups, the expat group that is doing the best in terms of earnings are the Nigerians.

E Aboyeji: This is very true. Very, very true. And so you can just see that contrast where it’s usually like taking somebody like fish out of water. And look, I wouldn’t believe it, Henry, if I hadn’t seen it myself. So in our program, right, we get this young people and some of them were earning like maybe one hundred dollars, right. Hundred one hundred dollars a quarter. Right. We’re just doing our jobs and all that stuff. In four years, some of them are earning one hundred thousand dollars a year. Right. Many of them have left the country, unfortunately. Right. Because they’re just so wealthy and so well paid that it would be a security risk at the time, at least for them to continue to live in the circumstance. Exactly. But looking for better quality of life or maybe starting a family elsewhere. I mean, perception is reality. I’m here and I think I’m OK, but to each their own, you know what I mean? But that is the case for Nigeria. You know, it is just a country that’s so full of exceptional talent that if you can just create the right kind of environment for that, I can only imagine how the world benefits from the presence of the people.

William Norvell: As you’re telling that story, I can’t help but think of the famous play, Les Miserable and Jean Valjean’s character of, you know, someone who when he was given the opportunity, what he was able to do. Right when the priest gave him a small opportunity, something so small as grace and forgiveness and some seed money. If you look at it from an entrepreneur perspective and what he was able to turn that into in the lives he was able to change, including his own. And that story just rings as you’re talking and so on, that I want to switch back to Andela a little bit. I think I can tell you’re our first guest that’s taken a big round of funding from Mark Zuckerberg that we’ve had. Tell us what that was like. How did you get his attention? How did that come about? What was it like working with him? What lessons did you learn sort of having him involved at that level? Walk us through that a little bit.

E Aboyeji: OK, I wish I had a more interesting story to tell, but for the most part, I mostly dealt with his money manager. And it wasn’t just me, it was kind of me and my team. That said so the story around how we came together was, you know, we wrote an article myself and my co-founder, Jeremy Johnson, whose father, Marty Johnson, is another amazing social entrepreneur based out of Trenton, Near Princeton, New Jersey. We wrote an article about I think the article was, Will the next Mark Zuckerberg come from Africa? And we wrote an article just talking about what I just explained now. There’s so much beyond energy and potential, this continent, but no one’s interested in mining any of it, and the world needs more of these entrepreneurs that are going to change people’s lives and bring people out of poverty and create all this microcredit for the patients. So how do we square this together? Well, we need to create these opportunities for young people so that they don’t all devolve into violence of war and all these other evil. And they see the light that can come as a result of the creative power that got just passed through entrepreneurship. And that article, I think, got to him somehow because within The Wall Street Journal got to him somehow and he reached out to my co-founder and I started a conversation. And after that conversation, those other conversations, I met him once when he came to Nigeria. We showed him around the facilities and we had a town hall with a lot of young Nigerians. We also had a meeting with the president. So we met. But as you can expect, with a lot of this stuff, a whole bunch of our relationships, really to kind of his money management. But that said, you know, his investment really did bring an incredible amount of focus to Nigeria. And over the last you know, it’s been four or five years since he visited. His visit has so transformed the landscape, you know what I mean? In Africa brought so much attention to what people are doing here that, you know, I would give him that credit, could really use him to put Africa on the spot, like, you know what I mean? Because he was a real validation, like if Mark Zuckerberg got on a plane to Nigeria then who the heck are you, you know what I mean? So that was that what it was.

William Norvell: That’s amazing. It’s an amazing story. I love the way you put that of how God uses people to shine lights on places that people aren’t paying attention to. So that’s amazing. And to transition a little bit, it sounds like that’s where you’re heading now in your career. Could you talk a little bit about the lessons you learned at Andela and Flutter Wave as well, but how you’re transitioning those into an investor? Tell us a little bit about the vision for your investment fund and what do you hope to accomplish?

E Aboyeji: Absolutely. So, you know, when I was done with Andela, you know, I had a revelation on my 25th birthday. I was praying. I usually go and pray on my birthday. So I went to a secluded cabin and I was praying and fishing and, you know, literally Mark had just invested. And I heard a voice very clearly, basically your work here is done. And I’m like, wait, calm down, right, like he just invested was about to get really interesting. I can have a nice salary, maybe find a nice girl to marry. Let me just leave with a little bit of stability. It’s like, no, the work is done. I have another assignment for you. And I went back really, really troubled and I wasn’t sure what the assignment was. So I kept praying. And one day, you know, I had a friend who was a client of the company and there were only local client. So we never took local projects because for a whole bunch of reasons, including many times, I couldn’t really afford to pay what foreign clientele will pay. And we really wanted to be able to pay well and give these people the kind of exposure that kept them right. So we didn’t really take local clients out like Nigerian clients, but we took this one. And one day he reached out to me, asked for advice about how to build a company. And I was like, yes, I think about it is what I’ve learned. And he said, look, I’m going to have a meeting in Dubai. I don’t mind paying for your ticket. Why don’t you come with me? And I wasn’t doing much at the time. I was technically already thinking what that message meant, business school. So I was starting to prepare to go out to business school and that just started as the journey with flutter waveh. And it became clear to me what it was, was we had built talent, but we had not built a way for that talent to be able to turn get talent into money, into something that you could actually live on. So what was happening was we would build talent. The talent would leave the country with new talent. The talent will go work for somebody else. But it could have become entrepreneurs because we had to build any platform that allows people who build software to be able to accept payments from all over the world. So that was what led me to flow. It was basically that realization that the job isn’t done. We built the soundboard with the people. Right. And so that was basically how we got into Flutterwave. And I was there for two and a half years. It was very stressful because with flutterwave you were battling the depth of Nigeria’s very corrupt financial system. I mean, the financial system in Nigeria. I don’t mean this. I mean, it’s just what it is. It was it was basically the foundations of the system is on a lot of blood. Like I told you, Nigeria was the original charter city, you know. So I think about all that money compounding over the years, blood, violence, money. It had a spiritual undertone to it. And I had to deal with that system and work through that system as a man of God and honest person every day. And that takes its toll on you. So when I left in twenty eighteen, I was just tired and I was like, I’m done with Nigeria, I’m moving to Fairfield, California, to be right next to Henry. I’m just kidding. So that was really what it was for me. And I was done. I wanted to be with my daughter and my wife and that was it. Right. We just got married. I was happy. But you know, I had I’ve lived in America for a long time. I’ve never had it as hard as I did in America those couple months. I felt like Jonah running away from Nineveh, you know, because I would open bank accounts and they would shut them down. You know, a lot of very weird things just happened. Right. And one day I was praying and I just heard a voice basically say, look, this place where you are is just not where I sent you. Right. Like, you have no ministry here. What are you going to do? Right. What are you going to do? You can’t even find a church close to you. Right. You know, so just go home, go home and do the work. And the specific word was, I will preserve you. There’s a person, Jeremiah where God says you know, I formed you. I created you and I formed you. And I sent you for specific purpose. Right. And I will preserve. And so that was the faith on which I basically decided right before covid broke out to just move back to Nigeria and take on this whole investing thing full time. Now, what are we doing now? What we’re doing is we understand where the country is and where we go. And we understand very much like Efosa probably said on this podcast that we need more micro creative innovation in Africa to be able to drag Nigeria out of the doldrums of government failure and all that stuff and really get it to a solid spot where everybody has access to prosperity and purpose. Right. How do you ensure that all these young people that we just spoke about can live a life of prosperity and purpose? They can make money doing what they love or whatever God has called them. Right. And hopefully they love it.

Henry Kaestner: As you bring this up, this is the book title of what Efosa wrote with Clayton, some number of people have heard about the prosperity gospel has been just a type of theology that. Seems to be most prevalent in Africa, although it’s not just Africa. It happens very much in the United States and it happens everywhere. Yeah, but to us, just a little bit about that, because some people hear, oh, Africa prosperity, you know, walk us through a little bit more about what you mean about prosperity and is there or do you see the prosperity gospel at work in Nigeria and maybe talk about some of how Faith Driven Entrepreneurship might be misunderstood or misapplied?

E Aboyeji: Yeah, I mean, I would say this much, right. Like the whole idea that God exists to meet your needs. And that’s the reason why you should accept to it has an appeal in an environment where a lot of people are poor. And a lot of people are in need and they do need things, you know what I mean? So, sure. You know, if I come to you and tell you when you’re poor and you need things that God is here to provide for your needs. Right. And that’s all you hear, you know that God is bound to grow in leaps and bounds. But, you know, here’s the thing, right? As an entrepreneur in this country, you don’t have the same mechanisms as an entrepreneur in the US, just like every single thing is a struggle of faith and grace. You know, from getting a license to even getting your company incorporated, there’s just so many things that can go wrong. I was trained this morning and I was thinking, God, we just had a little bit of unrest in Lagos and none of our portfolio companies were affected. That’s a fair point. You know what I mean? That you don’t have to worry about that in America because you’ve got insurance. But in my case, insurance by that actually paid, you know what I mean? So you’re essentially working by fiat because you don’t even have the infrastructure that folks on your side do. So I guess, you know, a lot of it is misunderstood because every action is an act of faith when you’re an entrepreneur. That’s right. So you really live and die by. But, you know, sometimes people might look at that and be like, you know, it’s an offering and this and that. But, you know, at the end of the day, the principles of sowing and repeat become even more important. Can I just say this small story for me? It is a testament even for me, right? Because when I moved back, I started this other company and I lost all my money, basically because I didn’t get the right on the treat approvals to do that business, which was basically selling online courses into universities. I didn’t get the approvals, so I lost all my money. I had one hundred dollars left in the bank and on this day there was a preacher. I moved home. That was how bad it was. I moved back to my parents home after a very expensive foreign education. My parents were getting laughed at and there was a preacher who came and he ministered and had a world of knowledge which was basically, you know, you’re basically down and out, right? You don’t see a future for yourself. You have hundred dollars. You put it on the altar and lived there. And I did. And honestly speaking, since that time, I’ve just been like this. Right, just on an up and up. So I think it’s really a very personal thing when it comes to prosperity gospel, because I think it’s like sometimes deep acts of faith can be mistaken as just moneygrubbing. And I think this is where the spirit of the segment really plays a big role. Right. Because you’ve got to understand for yourself, you know, is this somebody I should be listening to? Because these are the end times and there’ll be a lot of false prophets. But, you know, then you’ve got to listen for yourself. But I’ll tell you, every entrepreneur I’ve spoken to in this country has a story like mine because it is a miracle to build things here. And that’s what makes it fun.

Henry Kaestner: Tell us about kind of the infrastructure in the Faith Driven Investor community. Are there people of great faith that are investing back into the community. Generally is the capital that’s being used to spur on faith driven entrepreneurs is it coming from Canada and the US? Is it coming from inside the country? Help us to understand the ecosystem?

E Aboyeji: So, yeah, I mean, there’s some attempts, right? So for example, all and I think it’s important to kind of understand the demographics of a country like Nigeria, like most people are building tech startups like me. Right. You know, most people are kind of doing they’re penetrated or, you know, they’re doing their, you know, like just small business and all that. And what’s amazing about Nigeria is that the churches do aggregate their capital and try to be helpful to members who are trying to start up small businesses. I don’t think they wrap their head around market creating innovation just yet. And I think I’m a little bit. But like, you know, you can expect that this company capital, my church has capital. We just try and just come together and support young entrepreneurs in our country who are, you know, trying to make a change in their lives and trying to do stuff. And sometimes we provide them our facilities, give them the ability to leverage it for other purposes during the week when we’re not having a service. So I think there’s some support and that’s the level to which it is. What I’m really looking forward to is more participation in the. Innovation ecosystem, more building of platforms, more building of investment outcomes, and I think that’s one of the areas where I think Faith Driven Investor I’ll share this with my dad, you know, he’s excited. He listens to it sometimes. And I think there’s probably a community to build here because they are Faith Driven Investor us. But the bulk of the money in the system, like I said, is not necessarily driven by the same level of ethics. You know what I mean? Like, it’s a lot of it may not be the kind of money, which is why we’re very careful about who invests and who doesn’t invest, particularly at specific levels. On the whole, you know, we think about ourselves as a service. So, you know, so long as we know they’re not criminals, we do try and put their money where we can. But we are also very cognizant of the ethical considerations when it comes to backing businesses. Lots of great businesses that we see. And we refused to back because we just aren’t convinced that they’re actually good for people.

William Norvell: That’s great. And I want to pull out one piece of what you said because I thought it was so profound. And, you know, maybe somebody listening needs to hear that at some level, too. When you talk about Andela at the peak of let’s call it success, you heard God tell you your mission there was done. And that he had something else for you and you followed that. I just want to sit in that for a minute. That’s very difficult. And just for you to sit with the Lord in a cabin and hear from him. And that is something that I think so many investors, so many entrepreneurs need to probably work more and myself included, into a habit of, you know, you can’t be able to have that level of discernment unless you give the time to listen and to walk away.

E Aboyeji: In a place like Nigeria, you’re walking through a minefield, right. Discernment is everything because you could take the wrong money, you could say the wrong word, you could literally, just innocently do the wrong thing, and it blows you up.

William Norvell: And to be in tune with the spirit every day is so key. I want to move to future Africa a little bit more, if you could take us a little deeper into that. So how are you helping people go on that trip? I mean, you’ve got such a gift of experience. How are you helping people, maybe specifically sort of walk through that? What types of investments are you making? What size investments are you making? What types of companies? And of course, ultimately, how could we get involved, have our audience get involved?

E Aboyeji: Absolutely. For me, you know, with future Africa, what we try to do is and, you know, actually the inspiration came from a verse where it said, the stone to builders rejected, will become the chief cornerstone. And so for us, the way we look at it is basically Africa has a lot of challenges. In fact, that might be the only thing that has talented people and challenges. And for us, our mission, our mission is how do you turn these challenges into incredible business opportunities? How do you turn the fact that Africa doesn’t have a landline network that can serve millions of people into making it the biggest mobile phone market in the world? Because it’s one thing that happened, the other thing would be unnecessary, and that’s what we do every day. So we do that by connecting entrepreneurs and investors that are essentially turning Africa’s biggest challenges into global business opportunities. One of the biggest challenges, these capital, but is also a need for a lot of coaching, supporting entrepreneurs, helping them try and make new mistakes, not the ones you’ve already made, and then building communities around them that can support them and give them access and give them opportunity wherever it’s necessary. So that’s the work that we do at the fund. We basically identify ourselves incredibly. Our problems help them train those problems, those solutions into global opportunities, and then kind of marry the two together. By leveraging our capital coaching and our community. We focus on four sectors right now. So technology and talent, infrastructure, media and the environment. So just to give you a sense, you know, technology and talent, like you were talking a lot about applied research. So someone does something really cool in a lab somewhere. I want to take it out and help it scale infrastructure. It’s hard infrastructure and soft infrastructure. So hard infrastructure. We’re building a city right somewhere in southern Nigeria. In Lagos, we’re building a cable car system because there’s no subway. That’s not going to work. Right. So we have to build in the cable car system that employs people around. Media. We invest in new forms of media that can keep business owners and government officials informed because we invest in new forms of youth, media, youth focused media. We’re buying a radio station, stuff like that. Then we have the environment, which is how do you do better on sustainable agriculture? You know, we are a nation of smallholder farmers. We don’t have plantations, we don’t have big commercial farms. And we don’t think we can because, you know, land is so cultural, so traditionally out, you know, in small families. So you can’t really have that culture of a big plantation with lots of people because this is not how the country works. So how do you make that sustainable for people to continue to live that way despite the challenges with economies of scale? So that’s what we do on a day to day. We certainly see investment opportunities in those areas. We such that present them to our community of investors. And if you want to join, it’s really simple just for a future that Africa’s collective you fill out a form as an investor and then we reach out to you and send you a nice email. Thank you for joining us. All we do we don’t take fees, but we take a thousand dollar membership fee a year, but we don’t take like a typical two percent. Or a 20 percent cut. So when your investment is realized, we will wait for you to get back to capital and then we take a 20 percent target on that. So that’s how it works.

William Norvell: Super, super helpful. Thank you for walking through that. And I’m sure we’ll link to that in the show notes as well. People want to jump in and go deeper there. And as we unfortunately have to come to a close with our show, we love to invite our guest into a couple of things to share with our listeners. First of all, we would love to know where God has you in his word. What may be inspiring you today could be something you’ve been meditating on for a while, could be something he spoke to you this morning. And then second, if you could just share how our listeners could be praying for you and the work gods called you to do.

E Aboyeji: Absolutely. Absolutely. You know, I’m going through a really, really interesting time. And I’m just glad because the joy of the Lord is really our strength. You know, I don’t know how many of you know what’s going on in Nigeria, but, you know, we’ve had an incredible couple of weeks because the young people have been demanding from the government for the last four years that the government stop police brutality.

I’ve been a victim myself of police brutality. Young people in my network have been victims of police brutality. And many times we have to rescue ourselves, by paying the police, if you can believe that it kind of let us go for doing nothing, right. And, you know, young people have been asking for a long time. You know, it hasn’t been working. So all of a sudden that was kind of a number of deaths associated with police brutality, very similar to what happened to us. And there was a big peaceful protest for 10 days. And then, you know, as the devil often does on the last day of the protests, right before it was supposed to be called off. There was one last protest and some young people went to it and they were shot by the military and then the whole place erupted. There were looting, those fighting those all sorts of a lot of people have broken.

And I think really like where the country is. It’s an interesting moment because on the one hand, you know, this was a watershed moment for young people demanding to be treated with dignity. Right. Which is something that the country never really mastered. But on the other hand, there’s all this pain of losing people and property and lives and families being torn apart because of this demand, which is. Right. Right. And so I think for me, I’ve just been learning how to mourn that. And, you know, I write on this verse in Revalation, 21:4, when I had to speak to my team about the issues. I need a bunch of young people in prayer about the issues. And the verse basically says, and the Lord will wipe every tip from our eyes. There will be no more death or mourning or crying or pain. But this was the part that really got to me and I’d never seen it before, even though I read it so many times. It says there will be no more death or mourning, when the old order of things has passed away. And, you know, normally when I read this first, I’m thinking about the order of things as like. You know, eventually when Jesus comes back for us all and we go up into heaven.

But I never occurred to me that the work that we do is shifting the old order. Right. The work that we do is essentially making way for this new order where there is peace and people are joyful and people that live in impactful lives and people will have prosperity and purpose. Right. So I don’t know. That gave me a jolt in the arm that I needed because it’s really hard to tell a bunch of 20 something year olds that, look, folks died and there might be nothing you can do about it because we can’t go the violent route. So you just kind of you know, it’s very hard. Right. But, you know, it was like, look, we got to work for change. We got to work for change our way because this morning and crying and that is all part of the old order. We got to work for a day when there’s joy, dancing and rejoicing and newness. Right in whatever it is thatat we do. So I mean, that’s just what God has been kind of laid on my heart the last couple of days.

Henry Kaestner: Thank you. That’s a great perspective into a country that not a lot of us have access to. And yet it’s a really important one, I think, strategically for investors that are looking to benefit from a growing market. And I think that that’s what we all look at. We all wonder most of us aren’t old enough to have been able to invest early on in the early days of the Asian tigers. And yet people who did did remarkably well. When we look at the demographics in Africa, there’s so much that lines up to really think about population expansion and just innovation and Africa’s ability to leapfrog, as you’re talking about, over more traditional technologies. You’re talking about telecom. Was it looked like you just leap out and leapfrog ahead into the next generation of communication. So much that’s going to happen in Africa. And, of course, what a role for Faith Driven Investor, because not only do we see an opportunity to be able to make an investment into a green space, but we have an opportunity because of our belief that transformation happens in a marketplace to be able to do that in a way that’s got honoring and to think about coming alongside Faith Driven Entrepreneur so that everybody in Africa speaks Italian, so to speak. Back. tothe Columbus analogy, right? For a faith driven entrepreneurs coming out, rather than having to go out and get capital from the Spanish, they might get some backing from the Italians. And what does that look like? A Faith Driven Investor and Faith Driven Entrepreneur team up with just a goal to to bring healing and restoration, to solve problems, lean into opportunities and to thrive and flourish towards that prosperity that brings people closer to knowing God. So what a great leader to take us through that. Thank you for that. And may God bless you. I look forward to meeting you on the ground in Lagos.

E Aboyeji: Same. Amen. Thank you so much.