The National Venture Capital Association (NVCA) recently highlighted Austin Clements, co-founder of Slauson & Co., in its "Meet a VC" series, shining a spotlight on a Los Angeles-based seed-stage firm that is fundamentally reshaping how innovation is identified and funded. Slauson & Co. operates on a powerful conviction: exceptional founders are ubiquitous, and by backing them, the firm not only fuels groundbreaking innovation and creates opportunities but also significantly strengthens the broader American economy. This philosophy is not merely aspirational; it is the cornerstone of a strategic investment approach that seeks to democratize access to capital and unlock entrepreneurial potential often overlooked by traditional venture ecosystems.
The Genesis of a Vision: A Path Forged in Los Angeles
Austin Clements’ journey into the venture capital landscape is a testament to a diverse professional background and a deep-seated commitment to community development. His career trajectory began in wealth management at Bernstein, providing him with a foundational understanding of financial markets and investment strategies. This was followed by an entrepreneurial venture, founding a media startup, which offered firsthand experience in the challenges and triumphs of building a new enterprise. His early investing role at TenOneTen Ventures further honed his acumen in identifying promising early-stage companies.
However, Clements’ path was also deeply intertwined with the burgeoning entrepreneurial scene in Los Angeles. He played a pivotal role in establishing Grid110, an accelerator specifically designed to support emerging entrepreneurs within the city. This initiative provided crucial resources, mentorship, and networks to founders who might otherwise struggle to access the support needed to scale their ventures. Concurrently, he was instrumental in launching PledgeLA, a groundbreaking civic initiative aimed at increasing diversity, equity, and inclusion within Los Angeles’ tech and venture capital sectors. These experiences collectively illuminated the vast, untapped potential residing in diverse communities and the systemic barriers preventing many talented individuals from accessing the capital and resources necessary for success.
It was against this backdrop of direct engagement with the Los Angeles entrepreneurial community that Slauson & Co. was co-founded with Clements’ longtime friend, Ajay Relan. The firm’s name, Slauson & Co., is a deliberate and deeply symbolic choice, a direct reference to Slauson Avenue, the iconic South Los Angeles street where Clements and Relan first met decades ago. This naming convention transcends mere nostalgia; it encapsulates the firm’s profound worldview and investment thesis.
Beyond Silicon Valley: The "Slauson Avenue" Philosophy
Austin Clements articulates the firm’s core belief with clarity: "There’s a Slauson Avenue in every town in America." This statement serves as a powerful metaphor for countless communities across the nation where individuals possess extraordinary potential, yet often lack the opportunities to transform their ideas into impactful ventures. The firm’s entire investment strategy is meticulously designed to identify these overlooked founders and provide them with the critical early-stage capital and support they need.
The foundation of Slauson & Co. is rooted in the concept of economic inclusion. From its inception, this principle has guided every decision, every investment, and every relationship forged by the firm. At its heart lies a straightforward yet expansive belief: brilliance is distributed everywhere, and the primary role of an investor committed to true innovation is to actively seek it out. This commitment extends beyond mere lip service, manifesting in a proactive approach to sourcing and evaluating founders who may not fit the conventional profile often favored by established venture capital firms.
Clements emphasizes this inclusive ethos, stating, "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 declaration underscores a fundamental critique of historical biases within venture capital, which have often concentrated funding in specific geographic regions and demographic groups, thereby inadvertently stifling innovation from a broader spectrum of society. Slauson & Co. aims to rectify this imbalance by intentionally casting a wider net, recognizing that diverse perspectives often lead to more resilient, innovative, and ultimately more successful businesses.
The Investment Thesis: Pre-Consensus, Not Non-Consensus
For Austin Clements, the decision to back a wider array of founders is not solely a matter of social principle; it is a clear strategic advantage and a pathway to superior returns. His experience has consistently demonstrated that the most exciting and disruptive companies often emerge from identifying extraordinary builders before they become widely recognized by the broader market. These are talented individuals who may not conform to the archetypal Silicon Valley entrepreneur, yet possess every bit of the capability, vision, and drive required to build significant enterprises.
Widening the aperture for investment, Clements believes, yields multiple benefits. It doesn’t just produce better financial outcomes for investors by uncovering undervalued opportunities; it also injects a greater diversity of ideas, founders, and communities into the engine of American innovation. This approach is grounded in a deep understanding of market dynamics and a forward-looking perspective. As Clements articulates, "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."
When Slauson & Co. first launched, the firm consciously pursued ideas that were often considered deeply "non-consensus." However, as the firm matured, Austin Clements notes a refinement in their approach, crediting investor Hunter Walk for articulating a sharper instinct: the goal is not merely to be non-consensus, but to be "pre-consensus," particularly at the seed stage. This distinction is crucial. Being "non-consensus" might imply taking a contrarian view against an established market trend, which can be risky. Being "pre-consensus," however, means identifying emerging trends and visionary founders before they become widely acknowledged or "hot."
Clements explains this strategic shift: "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." This foresight allows Slauson & Co. to secure favorable terms and build deep relationships with founders who are truly at the cutting edge, anticipating future market needs rather than reacting to current fads. This strategy is particularly vital in the seed stage, where early capital can profoundly influence a startup’s trajectory and where the greatest alpha is often generated by identifying nascent opportunities.
This refined approach also reflects a personal evolution for Austin Clements. He candidly shares that early in his career, he believed his relentless work ethic was his primary competitive advantage, confident he could out-work any problem. Over time, however, he discovered a more effective methodology. "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 transformed his operational philosophy. Now, when considering how to accelerate any initiative, his first question is not about how much personal effort he can exert, but rather who he can enlist to propel it forward more rapidly and effectively. This collaborative mindset is now deeply embedded in Slauson & Co.’s operational ethos, recognizing that collective intelligence and strong networks are paramount in the intricate world of venture capital.
More Than Capital: Building a Founder-Centric Ecosystem
Slauson & Co.’s commitment to its founders extends far beyond merely writing a check. The firm strategically positions itself as a lead investor in nearly all its deals, typically deploying between $1 million and $3 million. This lead-investor role is central to how Austin Clements and his partners operate, enabling them to work closely and collaboratively with the founders they back. This hands-on approach reflects a belief that early-stage companies require significant strategic guidance and operational support, not just financial input.
Beyond the initial investment, Slauson & Co. has developed innovative programs designed to support founders at every stage of their arduous entrepreneurial journey. A prime example is its "Friends & Family accelerator," an initiative that has evolved significantly over time. It initially began with a $25,000 non-dilutive grant, distributed across 20 nascent companies. As the Slauson & Co. team continuously assessed what interventions would genuinely "move the needle" for these founders, the program grew substantially. The grant amount increased to $150,000 in subsequent cohorts, and in the most recent iterations, it has reached an impressive $300,000.
However, Austin Clements is quick to emphasize that the capital itself, while crucial, is not the ultimate objective of the accelerator. The six-month program is meticulously structured, featuring weekly meetings and engaging speakers ranging from the co-founders of industry giants like Airbnb to leading venture capitalists. The true transformative power of the program, Clements insists, lies in the peer group it fosters. For the majority of participants, launching their company with Slauson & Co. marks their very first experience with venture-backed enterprise. This creates a unique environment where founders can openly share challenges, celebrate successes, and learn from one another’s experiences in a supportive, non-judgmental setting.
Clements highlights the profound impact of this community: "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." This communal aspect directly addresses one of the most significant psychological burdens of entrepreneurship, providing a vital network of support and shared understanding.
The spirit of community cultivated within the accelerator extends across Slauson & Co.’s entire portfolio. Each year, the firm hosts "Slauson Summer Camp," an event designed not for optimizing conversion funnels or discussing quarterly metrics, but rather for fostering genuine human connection and inquiring about the founders’ personal well-being. "The starting point," Austin says, "is building a more authentic relationship than just a transactional one." This deliberate focus on the human element serves as a powerful reminder that behind every venture-backed company are individuals taking immense personal and financial risks to build something new. The industry’s fundamental role, Slauson & Co. believes, is to provide comprehensive support to help these individuals not only succeed in business but also thrive personally.
Addressing the Funding Gap: The Imperative for Economic Inclusion
Slauson & Co.’s model directly confronts a long-standing challenge within the venture capital landscape: the significant funding disparities for underrepresented founders. Industry data consistently reveals that while overall venture capital investment has grown exponentially over the past decade, a disproportionately small percentage of this capital flows to founders of color, women, and entrepreneurs located outside traditional tech hubs like Silicon Valley, Boston, and New York. For instance, reports frequently indicate that Black and Latino founders receive only a fraction of total venture capital funding, often less than 3%, despite comprising a much larger segment of the population and entrepreneurial ecosystem. Similarly, women founders, while seeing some gains, still receive substantially less funding than their male counterparts.
This imbalance is not merely an issue of fairness; it represents a colossal missed opportunity for innovation and economic growth. By intentionally seeking out and backing founders from diverse backgrounds and geographies, Slauson & Co. is not just filling a gap; it is tapping into a reservoir of talent and ideas that has historically been underserved. Their focus on the "Slauson Avenue in every town" directly addresses the geographic concentration of venture capital, which tends to overlook burgeoning entrepreneurial activity in secondary and tertiary markets. This inclusive approach is critical for fostering a more resilient and dynamic national economy.
The Broader Economic Impact of Inclusive Venture Capital
The implications of Slauson & Co.’s model extend far beyond individual startup successes. By channeling capital and resources to previously overlooked entrepreneurs, the firm contributes to significant macroeconomic benefits. Each successful venture-backed company creates jobs, stimulates local economies, and often develops solutions tailored to the needs of diverse communities, which may not be adequately addressed by mainstream offerings. This decentralized approach to innovation can lead to the emergence of new industries, the revitalization of local economies, and the creation of wealth in areas that have historically been excluded from the tech boom.
Furthermore, fostering a more inclusive venture capital ecosystem can lead to a more robust and equitable distribution of economic opportunity across the United States. When capital reaches the "full range of talent this country has to offer," as Clements puts it, it can unleash a wave of creativity and problem-solving that benefits society as a whole. This model aligns with a growing consensus that diversity in entrepreneurship correlates with higher rates of innovation, stronger financial performance, and greater adaptability in the face of market changes. Slauson & Co. is actively demonstrating that what is good for diversity is also demonstrably good for business and the economy.
Leveraging Networks: The Power of Collaboration
Austin Clements’ personal lesson about the power of leveraging people is seamlessly integrated into Slauson & Co.’s operational fabric. In the intricate world of venture capital, where success often hinges on information asymmetry and strategic connections, the ability to build and harness robust networks is paramount. For Slauson & Co., this means not only connecting their founders with a vast array of mentors, industry experts, and potential partners but also fostering a collaborative environment within the firm itself. The team-centric approach ensures that founders benefit from the collective expertise and insights of the entire Slauson & Co. partnership and advisory board, rather than relying solely on a single point of contact. This collaborative ethos extends to co-investors, where Slauson & Co. actively seeks partners who share their vision for inclusive innovation, thereby amplifying their impact and expanding the reach of their network.
A Vision for the Future: Advancing Toward What Will Be
Austin Clements lives by a powerful maxim: "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 educational choices to his parenting approach. When applied to the venture capital industry, this guiding principle instills in him an unwavering confidence that a more diverse and inclusive landscape—one enriched by a wider array of voices and perspectives—is not merely desirable but utterly inevitable. It is the natural progression of an industry that, at its core, is about betting on the future.
Clements eloquently frames this impending shift: "We’re in the business of betting on the underdog. And when the underdog breaks through, it doesn’t just crown a new champion – it changes the world in a whole different direction." This statement encapsulates Slauson & Co.’s conviction that true disruptive innovation often emerges from unexpected places and from individuals who defy conventional expectations. These "underdogs" are the ones who challenge the status quo and, in doing so, redefine what is possible.
He draws a compelling parallel to transformative technologies like the iPhone, which, while seemingly obvious in hindsight, required the visionary tenacity of a Steve Jobs to force into reality. The same, Clements believes, holds true for the future trajectory of American innovation. It necessitates not only courageous founders willing to build the future but also enlightened investors willing to back them unconditionally. "It takes funds like ours to prove the point," Clements asserts. "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 bold declaration is not just a statement of ambition; it is a commitment to demonstrating, through tangible results, the immense value proposition of inclusive venture capital.
NVCA’s Role in Highlighting Industry Evolution
The NVCA’s decision to feature Austin Clements and Slauson & Co. in its "Meet a VC" series is highly significant. The NVCA, as the premier trade association representing the U.S. venture capital industry, plays a critical role in advocating for policies that support entrepreneurial growth and innovation. By spotlighting firms like Slauson & Co., the NVCA signals a broader recognition within the industry of the imperative to embrace diversity, equity, and inclusion not just as ethical principles, but as fundamental drivers of economic value and future competitiveness. This series serves to educate, inspire, and encourage other venture capital firms to adopt similar progressive approaches, thereby accelerating the evolution of the entire ecosystem towards a more equitable and opportunity-rich future. Slauson & Co. stands as a testament to the idea that venture capital, at its best, is about fostering relationships, coaching, collaboration, and building community – the essential work that continues long after the initial investment is made.
