Business

Insight is a Resource: Why Sean Brown Likes Investing in Experts

Published

4 years ago

April 27, 2020

Early-stage investing can be, for lack of a better word, tricky. As founder and CEO of investment firm GO VC and a serial business-starter himself, Sean Brown has been on both sides of the boardroom table during pitch meetings. And he’s built a 15-year investment career by seeing through the tricks and buzzy pitches. We connected with Sean Brown to find out what startup owners raising capital should know about the process from an investor’s perspective.

1. What are the main criteria for you to consider when investing in an early-stage company?

Investors need to balance a long-term vision of an idea or business’s potential with the short-term needs and risks that could prevent success. Sean Brown has found that two criteria have led to the most effective investments for GO VC. “First, my team and I need to be able to connect with the founders. If we don’t feel a certain level of synergy early on, it probably isn’t going to work later either,” Brown said. “And although every startup pitches some kind of solution, we prefer projects that create value by helping people, because those ideas tend to resonate more.”

2. What’s the biggest mistake you made and the most important lesson you learned since you started investing?

Obviously, no investor hits a home run on every startup. But sometimes ventures that don’t pan out are more valuable in the long run because of the lessons they teach. This, Brown says, was an important lesson in itself. “In some of my early investments, the companies I worked with bit off more than they could chew, and I didn’t recognize that early enough,” Brown said. “One of the keys for GO VC has been supporting and staying involved with our startup partners, because applied expertise is a critical resource just like capital.”

3. What types of startups do you prefer to invest in?

Sean Brown and GO VC’s early investments were in the tech startup space, funding marketing, software, and other online-based companies. But that was due in part to Brown’s own experience in those fields, and the firm’s scope expanded organically as new opportunities appeared in other markets. “We prefer small, agile companies, and founders that are devoted and passionate about their projects,” Brown said. “I wouldn’t describe GO VC as a tech investor, especially now — we’ve evolved, and we’re working with businesses in a lot of different verticals.”

4. In your view, what value can startup accelerators add, and why?

Accelerators and business incubators can provide capital and development support for startups that are struggling to grow on their own. But the greatest benefit of those organizations is usually more personal, Brown said. “Accelerators are valuable, and for more than just funding,” Brown said. “We have our own incubation program at GO VC, and the most effective results from that have come from connecting people and building relationships. Other accelerators would probably say the same.”

5. What should startups think about before contacting a VC? What kind of questions impress you?

Entrepreneurs and new business owners who decide to raise capital may initially find themselves in unfamiliar territory. Common knowledge suggests presenting a transparent financial picture and realistic projections for growth. Brown recommends these steps too, but also points out that proving your industry expertise is an underrated aspect of getting an investor’s attention. “It’s always more satisfying to talk to people who know what they’re talking about, right? And not just in pitch meetings,” Brown said. “If someone can explain why a product or idea will succeed and not just how it works, it’s much more impressive, and the potential for growth is exponentially higher.

Business

Retire Smart, Save More: How MDRN’s Virtual Planning Model Can Slash Retirement Costs

Published

3 days ago

October 8, 2024

Rosario Farell

The media is calling it a “retirement crisis.” Millions of Americans are arriving at retirement age woefully unprepared.

Some studies suggest that 45 percent of the Baby Boomers have no retirement savings, while 28 percent of those who have started saving have less than $100,000 put away. Consequently, many Americans now living in retirement or approaching that season are looking for ways to cut back on their expenses.

Aaron Cirksena, founder and CEO of MDRN Capital, has a solution for those looking to retire smart and save more. His firm’s completely virtual model increases retirees’ spending power by decreasing the fees associated with retirement planning.

“Our unique approach to providing retirement planning services allows our clients to experience significant savings when compared with the traditional model of investment management and retirement planning,” Cirksena shares. “When we did away with the overhead expenses that stem from operating a brick-and-mortar office, we were able to create a fee solution for our clients that is lower than the typical advisor. On average, our fees on the entire client portfolio tend to run 30 to 40 percent lower than the typical advisor operating under a conventional model. Additionally, we can provide services like estate planning, tax planning, and tax preparation at no additional cost.”

MDRN Capital is revolutionizing retirement planning by offering a comprehensive range of services, including income planning, investment management, tax planning, healthcare, and estate planning, in a setting that exceeds the efficiency and effectiveness traditional providers are able to offer. Unlike traditional firms, MDRN Capital leverages the power of digital tools to deliver comprehensive services without the need for in-person meetings, allowing clients to enjoy their retirement while their financial needs are expertly managed.

“My goal with MDRN Capital was creating a completely virtual firm that could more efficiently provide the convenience clients wanted while also meeting their ongoing investment needs,” Cirksena shares. “MDRN Capital’s virtual model empowers an environment in which we could serve our clients with less costs to the firm and pass the savings on to them.”

Financial planning for the new normal

MDRN Capital’s innovative approach to retirement advising emerged as a result of Cirksena’s experience during the COVID-19 pandemic. Due to social distancing, advising during the pandemic shifted to virtual appointments. When social distancing was no longer necessary, Cirksena expected his clients would resume their pre-pandemic patterns. He was wrong.

“My clients let me know they preferred the comfort and convenience of virtual meetings to the hassles associated with having in-office meetings,” Cirksena says. “They didn’t miss sitting in traffic and searching for parking spaces, and I couldn’t blame them. Even the clients who lived only a few minutes away decided they would rather meet via Zoom than have a face-to-face meeting in our nice Class-A office space.”

MDRN Capital was designed to meet the client expectations that emerged during Covid. By leveraging technology to take his services to his clients rather than expecting them to come to him, Cirksena made advising more convenient and more cost-effective at the same time.

Financial savings for struggling retirees

Recent studies show the high inflation the US has been experiencing has a larger than average impact on many retirees. In response, many are looking to tighten their belts by cutting back on spending, but reducing the fees associated with retirement accounts is something few consider.

“For retirees, lower gas and grocery costs are certainly helpful,” Cirksena says. “However, cutting their investment management costs in half puts dramatically more money in their pocket over time than lower prices on goods ever could.”

To understand the impact MDRN Capital’s approach can have on retirees, consider that $250,000 earning seven percent over 20 years will grow to $967,421.12. Factor in a 1 percent fee, and growth is limited to $801,783.87, but raising the fee to 2 percent causes earnings to fall to $721,034.70.

Cirksena points to his industry’s failure to embrace modern technology as one reason why investment fees remain high.

“Unlike many industries that have used and adopted technology for decades to help lower costs and make services more efficient, the financial services sector has lagged behind,” he explains. “Many firms continue to incur unnecessary overhead and expenses, which their clients pay for in the form of elevated fees.”

The virtual investment environment Cirksena has created moves retirement planning into the future. It provides a financial service experience that is convenient, comfortable, and efficient while also ensuring that none of its clients’ investment potential is wasted on unnece