Trends Watch: Venture Capital Investing in Entrepreneurs with Purpose

Family offices and athletes have increasingly expressed interest in venture capital investing focused on early-stage entrepreneurs, recognizing the unique opportunities in this sector. This trend is fueled by the potential for significant technological advancements and economic growth. 

To explore this, EisnerAmper recently spoke with Correy Faciane, Founder of Scope Fund, a Washington, D.C.-based venture capital firm. Faciane, whose firm invests in mission-driven entrepreneurs, shared his insights on both the opportunities and challenges in the space and detailed how he thinks about long-term value creation when evaluating early-stage investments.  

Opportunities and Challenges in Early-Stage VC 

Faciane elaborated that with respect to opportunities in his investment space, he said both family offices and athletes specifically have been interested in investing in early-stage entrepreneurs, who are often overlooked since more capital historically has gone to entrepreneurs with successful exits or built massive companies over time. He highlighted that the greatest returns in this space have come from investing in founders who are building consumer-focused companies that offer financial freedom beyond traditional 9-to-5 employment. 

On the other hand, Faciane said one of the biggest challenges in his space is identifying early-stage entrepreneurs poised for the most success because the barrier for entry to start companies is relatively low, and there are so many talented startups. He emphasized that robust due diligence is key when evaluating early-stage entrepreneurs, a core principle that aligns with EisnerAmper's comprehensive approach to advising on fund formation and investment strategies.  

Creating Long-Term Value and Future Outlook 

When it comes to long-term value creation, Faciane said that one thing that is often overlooked is the post-sales cycle and emphasized the importance of customer support that allows customers to feel aligned every step of the way and build alongside them. Faciane remains bullish on the upside potential in venture capital, a sentiment shared by many of the experts featured on the EisnerAmper Alternative Investment Podcast.