Posted April 20, 2024
Thanks for visiting our website and learning more about our group. Venture First has a novel approach to investing, partnership and financial services.
As a hybrid shop, we provide an array of financial services, including transaction support, CFO and accounting services, and valuation, to a national network of funds, entrepreneurs, and stakeholders. We also manage a family of funds and special purpose vehicles that focus on unusual niche verticals and generate outsized returns in specialty credit, digital transformation private equity, and flyover state venture capital.
To drive performance in our alternative investing strategies, we rely heavily on partnerships we’ve developed with operators, technology providers, and other investors.
Because of our structure, our team gains experience “under the hood” with financial services clients and portfolio companies that allows them, operationally, to be more engaged investors and ask more insightful diligence questions. Conversely, their capital relationships and knowledge of complex financing structures allow them to better advise client companies. I’m proud of the team we’ve fostered over the past 15 years. They’re wonderful people who have developed exceptional financial expertise. I love the speed and agility that a firm of our size affords our partners.
The result of our technique is striking. In a venture world that targets three portfolio companies out of ten having success, we’ve only had two negative returners in our portfolio ever. In specialty credit, our Whiskey Capital funds have both generated unlevered returns in the twenties, making them two of the top performing specialty credit funds in the nation, especially when adjusted for risk. Our most collaborative strategy of modernizing traditional private equity acquisitions is showing early success with our first portfolio company roughly tripling in its first two years, despite a supply chain headwind.
Regardless of what market conditions face us in the coming months or years, we’re cautious optimists. Though we enjoy “up” markets, we get more excited when things are “down” because we see more bespoke opportunities. Every time I’ve gone through a negative life event, it has opened up new opportunities that weren’t there before. I like to believe that our team, our clients, and our investor community are moving forward intelligently with a measured-but-opportunistic tilt. If our group in any way can be helpful to yours or if there’s a collaboration to be had, please don’t hesitate to give us a shout.
Nearly 14 years ago, at the age of 28, CEO John Shumate was diagnosed with Stage 4b Hodgkin’s Lymphoma. At the time of diagnosis, John was working for a middle-market private equity firm. He remembers thinking that no matter what time he had left he wanted to work on projects that were interesting, innovative, and just have fun doing it.
Immediately upon diagnosis, John moved to Houston for treatment. Because he was unable to meet or travel, he began picking up equity and derivative valuations for VC’s with technology and health care companies. The work was interesting and challenging. Eventually, as he began feeling better and started hiring more help, Venture First was born. Today, VF has over 15 employees across the country.
John often compares finding the right clinical trials and treatment regimens to nearly reverse his diagnosis, to building a start-up. You power through research, find the best trials, get in front of the right doctors to apply, and basically build your own treatment plan because it’s never been done before. And he’s quick to add that you need to get a little bit lucky too.
In 14 years, John has had 20 types of treatments, 16 of which were clinical trials, a stem cell transplant and a round of radiation. He is one of the few people in the world to build this treatment approach.
“You never know what’s around the next corner, but I’m confident that I will continue to do battle and win. I’m proud of our company, and the work that we do. We are helping all types of businesses in all types of industries wake up and fight their fight every day too.”
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