In a significant spotlight within the National Venture Capital Association’s (NVCA) "Meet a VC" series, Austin Clements, co-founder of Slauson & Co., offered a compelling glimpse into a venture capital firm built on a foundational belief: exceptional founders are ubiquitous, and their empowerment is a critical engine for innovation, opportunity, and the broader American economy. Based in Los Angeles, Slauson & Co. operates as a seed-stage firm, meticulously designed to identify and support entrepreneurs from diverse backgrounds, thereby challenging conventional paradigms within the venture capital landscape. This feature delves into the firm’s distinctive philosophy, its strategic approach to early-stage investing, and its profound commitment to fostering a more inclusive and dynamic entrepreneurial ecosystem.
Austin Clements’ Journey: A Path to Purposeful Venture
Austin Clements’ trajectory into the venture capital sphere is characterized by a deliberate evolution, marked by experiences that collectively shaped his conviction in democratizing access to capital. His professional journey commenced in wealth management at Bernstein, where he gained an intimate understanding of financial markets and capital allocation strategies. This foundational experience provided him with a comprehensive perspective on the mechanisms of wealth creation and preservation, which he would later apply to the entrepreneurial context. Following his tenure at Bernstein, Clements ventured into the demanding world of media startups, founding his own company. This firsthand experience as an entrepreneur proved invaluable, instilling in him a deep empathy for the challenges and triumphs inherent in building a new enterprise from the ground up. The entrepreneurial spirit he cultivated during this period would become a cornerstone of his approach to supporting founders.
Subsequently, Clements transitioned into early-stage investing at TenOneTen Ventures, a move that solidified his commitment to backing nascent companies. During this phase, he also played pivotal roles in cultivating the burgeoning Los Angeles entrepreneurial ecosystem. He was instrumental in establishing Grid110, an accelerator program specifically designed to support emerging entrepreneurs in Los Angeles, providing them with crucial resources and mentorship. Furthermore, Clements helped launch PledgeLA, an initiative aimed at fostering a more inclusive and responsible tech community in the city, underscoring his early dedication to broader economic impact.
These diverse experiences culminated in the co-founding of Slauson & Co. with his longtime friend, Ajay Relan. The firm’s name itself, Slauson & Co., is more than a geographic marker; it is a profound symbol of their shared vision. Named after Slauson Avenue in South Los Angeles, the street where Clements and Relan first met decades ago, the name encapsulates their worldview. As Clements articulates, "there’s a Slauson Avenue in every town in America where people with exceptional potential simply need the opportunity to turn it into something special." This powerful metaphor underpins the firm’s entire investment thesis, which is fundamentally rooted in the principle of economic inclusion.
The "Slauson Avenue" Thesis: Redefining Opportunity and Unlocking Latent Potential
At the heart of Slauson & Co.’s mission is an unwavering belief that brilliance is universally distributed, yet opportunity is not. The firm’s strategic objective is to actively seek out this latent brilliance, irrespective of traditional geographic or demographic boundaries. This commitment to economic inclusion is not merely a philanthropic endeavor but a core investment strategy designed to tap into overlooked markets and founder pools. Clements emphasizes, "Everybody’s invited – regardless of your ethnicity, regardless of your gender. People with exceptional talent, interesting insights, or a unique lived experience deserve a real shot." This statement reflects a profound conviction that a wider lens on talent acquisition is not just equitable but economically advantageous.
Historically, venture capital funding has been disproportionately concentrated in a few major hubs, primarily Silicon Valley, New York, and Boston. Data from PitchBook and NVCA consistently reveal that a vast majority of venture capital dollars flow to companies founded by white men, often graduates of elite universities and located in these established tech ecosystems. For instance, in recent years, less than 3% of venture capital has gone to women-led startups, and even smaller percentages to Black and Latinx founders. Similarly, regions outside the top three tech hubs receive a fraction of overall VC investment, despite possessing vibrant entrepreneurial activity.
Slauson & Co.’s "Slauson Avenue" thesis directly confronts these biases by actively seeking out founders in communities and demographics traditionally underserved by mainstream venture capital. The firm recognizes that this narrow historical focus has led to significant market inefficiencies, leaving vast reservoirs of entrepreneurial talent and innovative ideas untapped. By deliberately widening their aperture, Slauson & Co. aims to unlock economic potential that has long been overlooked, creating opportunities for individuals and communities that have historically been marginalized. This approach is supported by a growing body of research demonstrating that diverse teams tend to be more innovative, adaptable, and ultimately, more profitable. Studies by McKinsey and Harvard Business Review, among others, have repeatedly shown a positive correlation between diversity in leadership and financial performance, suggesting that Slauson & Co.’s inclusive strategy is not just principled but also a shrewd business decision.
Beyond Principle: The Strategic Imperative of Inclusive Investing
For Austin Clements, the decision to back a wider range of founders extends beyond a matter of principle; it represents a strategic imperative where significant market opportunity resides. He posits that the most exciting and disruptive companies often emerge from identifying extraordinary builders before they become apparent to the broader market. These are talented individuals who may not conform to the archetypal Silicon Valley founder profile but possess every bit of the capability, vision, and drive required for success.
Widening the investment aperture, Clements believes, yields multiple benefits. It doesn’t merely lead to better financial outcomes for investors by uncovering undervalued assets; it also injects a greater diversity of ideas, perspectives, and problem-solving approaches into the American innovation engine. Founders from diverse backgrounds often bring unique insights into underserved markets, develop solutions for overlooked problems, and possess a deeper understanding of consumer needs that traditional founders might miss. This leads to the creation of more resilient, relevant, and impactful companies. "Our work is centered on the founder – finding really talented people who are builders and doers, who may not know the rules of Silicon Valley but still have all the capabilities, and placing bets on them early," Clements states, highlighting the firm’s focus on intrinsic potential over conventional credentials. This strategy positions Slauson & Co. to capitalize on market opportunities that are invisible to firms constrained by traditional pattern matching, ultimately fostering a more dynamic and competitive entrepreneurial landscape.
Pioneering "Pre-Consensus": Investing in the Future, Not the Hype
When Slauson & Co. first launched, its investment strategy leaned towards ideas that were deeply non-consensus. Over time, Austin Clements acknowledges, the firm’s approach has evolved, developing a sharper instinct that he attributes to insights from investor Hunter Walk: the objective is not merely to be non-consensus, but to be "pre-consensus," particularly at the seed stage. This distinction is crucial in the fast-paced world of venture capital. Being "non-consensus" can sometimes mean backing ideas that are simply outside the mainstream and may never gain traction. Being "pre-consensus," however, implies identifying nascent trends and emerging markets that are on the cusp of widespread adoption, before they become obvious and attract an influx of capital, driving up valuations.
"We’re not investing in the hot thing of right now – that ship has sailed. We’re investing in what’s coming up next. That’s where the most interesting opportunities are," Clements explains. This philosophy requires a keen sense of foresight, a deep understanding of technological shifts, societal changes, and evolving consumer behaviors. It means investing in foundational technologies or disruptive business models when they are still raw, unproven, and often misunderstood by the broader market. This approach carries higher risk but also promises significantly higher returns if the firm’s early bets prove prescient. In the highly competitive seed-stage environment, where many firms chase similar trends, Slauson & Co.’s commitment to identifying "what’s coming up next" provides a critical differentiator and a potential source of alpha.
Beyond investment strategy, Clements also reflects on a significant personal lesson. Early in his career, he believed his competitive advantage lay in sheer work ethic, convinced he could out-work any problem. However, he discovered a more sustainable and effective path: "You don’t have to dial down the work ethic, but the easier path is leveraging the people around you. We’re in a people business." This realization underscores the collaborative nature of venture capital and the importance of building strong networks and teams. Now, when faced with accelerating an initiative, his primary consideration isn’t how much personal effort he can exert, but rather "who he can bring in to move it forward faster." This shift from individualistic effort to collective intelligence is a powerful testament to the value of community and collaboration, principles that are deeply embedded in Slauson & Co.’s operational ethos.
More Than Capital: Slauson & Co.’s Founder-Centric Ecosystem
Slauson & Co.’s commitment to its founders extends far beyond merely writing a check. The firm typically leads almost all of its deals, investing between $1 million and $3 million, a strategic choice that allows them to work intimately alongside the entrepreneurs they back. This lead-investor role is central to Austin Clements and his partners’ operating philosophy, enabling them to provide substantive guidance and support throughout a company’s critical early stages.
A prime example of this hands-on approach is the firm’s "Friends & Family accelerator" program. What began as a modest initiative offering a $25,000 non-dilutive grant to 20 companies has evolved significantly. As the Slauson & Co. team consistently evaluated what interventions would genuinely "move the needle" for founders, the grant amount grew to $150,000, and in the most recent cohorts, it reached $300,000. This evolution reflects a responsive and founder-centric design, continuously adapting to provide more impactful resources.
However, Clements insists that the capital, while crucial, is not the ultimate point of the program. The six-month accelerator meets weekly, featuring an impressive roster of speakers, ranging from co-founders of industry giants like Airbnb to top-tier investors. The true value, Clements emphasizes, lies in the peer group dynamic. For many participants, building their venture-backed company is a novel and often solitary journey. "Having a team with you, on the journey – where if a question’s in your head and someone else asks it, you think ‘great, I’m not the only one’ – makes all the difference in what can otherwise be a really isolating journey," he explains. This shared experience fosters a sense of camaraderie, mutual support, and collective problem-solving that is invaluable for nascent entrepreneurs navigating the inherent uncertainties of startup life.
This emphasis on community extends across the entire portfolio. Each year, Slauson & Co. hosts "Slauson Summer Camp," an event designed to bring founders together not to dissect conversion funnels or optimize growth metrics, but to genuinely inquire about their well-being and personal journeys. "The starting point," Clements notes, "is building a more authentic relationship than just a transactional one." This unique initiative serves as a powerful reminder that behind every venture-backed company are individuals taking profound personal and financial risks to build something new. By fostering a supportive and empathetic community, Slauson & Co. recognizes its fundamental role in helping these individuals succeed, not just as business entities, but as people. This holistic approach differentiates Slauson & Co. in an industry often perceived as purely transactional, positioning them as true partners in their founders’ endeavors.
The Human Side of Venture: Coaching, Collaboration, and Community
When questioned about the most crucial aspect of venture capital he wishes people would recognize, Austin Clements consistently directs attention beyond the financial capital to the profound significance of relationships. He contends that venture capital, at its most effective and impactful, transcends mere investment. It embodies a multifaceted role of coaching, fostering genuine collaboration, and cultivating a robust community. This, he argues, represents the substantive work that truly begins long after the initial wire transfer clears. It underscores the firm’s belief that sustained success in the startup ecosystem is built on a foundation of human connection, shared vision, and continuous support, rather than just financial transactions.
Advancing Toward What Will Be: A Vision for the Future of Innovation
Austin Clements lives by a powerful guiding principle: "Progress lies not in enhancing what is, but in advancing toward what will be." This philosophy has profoundly influenced every aspect of his life, from his academic choices to his approach to parenting. Applied to the realm of venture capital, this perspective instills in him an unshakeable confidence that the integration of more diverse voices and perspectives within the industry is not merely a desirable outcome but an inevitable evolution. He views this shift as a natural progression, essential for the industry’s continued relevance and efficacy.
Clements eloquently compares this impending transformation to the advent of the iPhone. While its revolutionary impact now seems self-evident, it required the singular vision and unwavering conviction of a Steve Jobs to manifest it into reality. The same, he believes, holds true for the future trajectory of American innovation. It necessitates visionary founders who are resolute in their commitment to building the next generation of solutions, coupled with equally resolute investors who are prepared to back them, even when their ideas challenge established norms. "It takes funds like ours to prove the point," Clements asserts with conviction. "We’re out to outperform everybody and if we do, we show what’s possible when capital reaches the full range of talent this country has to offer."
This audacious goal is underpinned by a belief in the transformative power of "betting on the underdog." Clements argues that "when the underdog breaks through, it doesn’t just crown a new champion – it changes the world in a whole different direction." This implies that investing in historically overlooked founders and "pre-consensus" ideas has the potential to yield not just financial returns, but also societal shifts, driving innovation in unforeseen and profoundly impactful ways.
Slauson & Co.’s model carries significant implications for the broader American economy and the venture capital industry. For the economy, it promises to unleash a torrent of latent entrepreneurial energy, fostering job creation and wealth distribution in regions and communities that have traditionally been bypassed by the tech boom. For the VC industry, Slauson & Co.’s success would serve as a compelling case study, pressuring more traditional firms to re-evaluate their investment criteria and actively seek out diverse deal flow. This could lead to a broader decentralization of venture capital, moving beyond the entrenched coastal hubs and fostering innovation nationwide. Furthermore, for founders from underrepresented backgrounds, Slauson & Co. represents a crucial lifeline – a source of capital, mentorship, and a supportive community that can transform their groundbreaking ideas into thriving businesses.
In conclusion, Slauson & Co., under the leadership of Austin Clements, is not just investing in startups; it is investing in a paradigm shift. By championing economic inclusion, actively seeking out "pre-consensus" opportunities, and cultivating deep, authentic relationships with its founders, the firm is carving a unique and impactful niche in the venture capital landscape. Their aspirational vision is not merely to participate in the future of American innovation, but to actively shape it, proving that a more inclusive approach is not only equitable but also strategically superior, poised to unlock unparalleled economic growth and societal progress.
