The National Venture Capital Association (NVCA) recently highlighted Slauson & Co., a Los Angeles-based seed-stage firm, in its "Meet a VC" series, drawing attention to a distinctive investment philosophy centered on economic inclusion and the belief that exceptional founders emerge from every corner of America. Co-founded by Austin Clements and his long-time friend Ajay Relan, Slauson & Co. is rapidly carving out a reputation for identifying and nurturing talent often overlooked by traditional venture capital, positioning itself as a vanguard in the evolving landscape of American innovation.
The Genesis of an Inclusive Vision: Austin Clements’ Journey to Slauson & Co.
Austin Clements’ trajectory into the venture capital world is a testament to a career marked by diverse experiences and a consistent drive towards empowering entrepreneurial talent. His professional journey commenced in wealth management at Bernstein, where he honed financial acumen and an understanding of capital markets. This foundation then propelled him into the dynamic realm of media, where he founded his own startup, gaining first-hand experience in the challenges and triumphs of entrepreneurship.
The pivot to early-stage investing began with a significant role at TenOneTen Ventures, where Clements started to immerse himself in the mechanics of venture capital. Concurrently, he became a pivotal figure in the burgeoning Los Angeles tech ecosystem, contributing to the development of Grid110, an accelerator specifically designed to support emerging entrepreneurs in the region. His commitment to fostering local talent further solidified with his involvement in launching PledgeLA, an initiative aimed at increasing diversity and inclusion within LA’s tech and venture capital community. These foundational experiences collectively shaped his conviction that talent is universally distributed, though opportunity often is not.
The culmination of these insights and experiences led Clements to co-found Slauson & Co. with Ajay Relan. The firm’s name itself, Slauson Avenue, holds profound symbolic significance. It refers to the South Los Angeles street where Clements and Relan first met decades ago, serving not merely as a nostalgic nod to their roots but as a powerful emblem of their core worldview. Clements articulates this vision by stating, "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 belief forms the bedrock of Slauson & Co.’s investment thesis: actively seeking out and backing these untapped reservoirs of potential.
The "Slauson Avenue" Philosophy: Economic Inclusion as an Investment Thesis
At the heart of Slauson & Co.’s operational model is a profound commitment to economic inclusion. This principle, which Clements and his partners have championed since the firm’s inception, posits that brilliance is ubiquitous, and the primary task of a venture capitalist is to diligently unearth it. This philosophy challenges the prevailing narrative that often concentrates venture capital in a few dominant tech hubs, instead advocating for a broader, more equitable distribution of funding.
The firm’s inclusive approach is not merely an ethical stance but is viewed as a strategic imperative. Clements firmly believes that "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 inclusive lens leads Slauson & Co. to founders who may not conform to traditional Silicon Valley archetypes but possess an equivalent, if not superior, capacity for innovation and execution.
Recent data underscores the urgency and validity of this approach. While venture capital funding has seen record highs in recent years, significant disparities persist. According to a 2022 report by Crunchbase, only a fraction of venture capital funding goes to companies founded solely by women, and an even smaller percentage to Black or Latinx founders. For instance, in 2021, companies with all-women founding teams received only 2.0% of all venture capital dollars, a figure that, while slightly up from previous years, still demonstrates a vast underrepresentation. Similarly, Black and Latinx founders consistently receive less than 3% of total VC funding. These statistics highlight the vast opportunity cost of an exclusionary funding model and reinforce Slauson & Co.’s conviction that a significant amount of high-potential talent remains uncapitalized. By intentionally widening the aperture for investment, Slauson & Co. aims to capture these overlooked opportunities, thereby fostering innovation that might otherwise never see the light of day.
Beyond Principle: The Economic Imperative of Diverse Investing
For Austin Clements, the decision to back a wider range of founders transcends a mere matter of principle; it represents a significant economic opportunity. He argues that the most exciting and disruptive companies often emerge from spotting extraordinary builders before they become mainstream. These individuals, while perhaps not fitting the conventional mold, possess immense capability and drive. Clements asserts that broadening the scope of investment not only leads to superior outcomes for investors but also injects more diverse ideas, founders, and communities into the engine of American innovation.
The implications of this approach are far-reaching. By investing in founders from diverse backgrounds and geographies, Slauson & Co. is contributing to the decentralization of innovation, moving beyond the traditional hubs of Silicon Valley, Boston, and New York. This geographical diversification can stimulate economic growth in various regions, create new job opportunities, and foster local entrepreneurial ecosystems. A report by the Ewing Marion Kauffman Foundation on inclusive entrepreneurship emphasizes that diverse teams often lead to more innovative solutions and better financial performance. Companies with diverse management teams have been shown to generate higher revenues from innovation. This suggests that Slauson & Co.’s strategy is not just about fairness but about tapping into a broader talent pool to generate superior financial returns and drive systemic economic benefits.
Furthermore, investing in "pre-consensus" ideas, as Slauson & Co. strives to do, allows for the cultivation of truly novel solutions. When the firm started, it actively pursued ideas that were deeply non-consensus. This evolved into a sharper instinct, guided by investor Hunter Walk’s insight: the goal isn’t merely to be non-consensus, but to be pre-consensus, particularly at the seed stage. Clements elaborates, "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 forward-looking perspective positions Slauson & Co. to identify emerging trends and technologies, often those developed by founders with unique lived experiences that grant them early insight into unmet market needs.
Navigating the Seed Stage: Pre-Consensus and Collaborative Support
Slauson & Co.’s investment strategy is characterized by its hands-on approach and a focus on early-stage opportunities. The firm typically leads most of its deals, investing between $1 million and $3 million. This lead-investor role is central to how Austin Clements and his partners operate, allowing them to forge deep relationships and provide substantial guidance to their portfolio companies.
A key lesson Clements has integrated into his leadership philosophy is the power of collaboration. While he once believed his work ethic was his primary competitive advantage, he discovered a more effective path: leveraging the collective strength of his network. "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," he reflects. This shift in mindset informs Slauson & Co.’s operational model, where accelerating growth is not just about internal effort but about strategically bringing in the right expertise and connections to propel ventures forward. This collaborative ethos extends to the founders they back, emphasizing a partnership dynamic rather than a purely transactional one.
The Slauson & Co. Ecosystem: More Than Just Capital
Beyond direct financial investment, Slauson & Co. distinguishes itself through a robust ecosystem of support designed to nurture founders at every stage of their journey. A prime example is its "Friends & Family accelerator," an initiative that has evolved significantly since its inception. What began as a $25,000 non-dilutive grant distributed among 20 companies has grown substantially. Through iterative feedback and a keen understanding of what truly moves the needle for early-stage startups, the grant amount increased to $150,000 and, in the most recent cohorts, reached $300,000.
Clements emphasizes that the capital, while crucial, is not the sole objective of the program. The six-month accelerator offers weekly sessions featuring an impressive roster of speakers, ranging from co-founders of industry giants like Airbnb to top-tier investors. However, the most vital component, Clements asserts, is the peer group. For many participants, this accelerator represents their first foray into building a venture-backed company. The shared experience, the opportunity to openly discuss challenges, and the realization that others face similar hurdles create an invaluable support network. "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," Clements states. This profound sense of community combats the inherent loneliness of entrepreneurship, providing a psychological safety net that is as important as financial backing.
This commitment to community extends across the entire portfolio through annual events like "Slauson Summer Camp." This gathering is deliberately structured not for optimizing conversion funnels or discussing financial metrics, but for fostering authentic relationships and allowing founders to genuinely connect and discuss their well-being. "The starting point," Austin explains, "is building a more authentic relationship than just a transactional one." This approach acknowledges the profound human element behind every venture-backed company – individuals taking substantial risks to build something new. Slauson & Co. views its role as helping these individuals succeed, not just as companies, but as people.
Reshaping the Venture Landscape: Broader Implications and Future Outlook
Austin Clements is keen for the broader industry to recognize the human side of venture capital, moving beyond the perception of it as purely a capital allocation business. He sees venture, at its best, as a deeply collaborative endeavor encompassing coaching, collaboration, and community-building – work that continues long after the initial investment is made. This perspective positions Slauson & Co. as a model for a more engaged, empathetic, and ultimately, more effective form of venture investing.
Clements lives by a guiding philosophy encapsulated in the quote: "Progress lies not in enhancing what is, but in advancing toward what will be." This principle has shaped his life choices, from his educational path to his approach to parenting, and it profoundly informs his outlook on venture capital. Applied to the industry, it instills in him a firm conviction that greater diversity of voices and perspectives is not merely desirable but an inevitable evolutionary step for venture capital.
He draws a compelling analogy to the iPhone: "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." The iPhone, obvious in hindsight, required a visionary like Steve Jobs to bring it into existence. Clements believes the same holds true for the future of American innovation. It demands founders brave enough to build it and investors bold enough to back them. Slauson & Co. is committed to being one of those funds. "It takes funds like ours to prove the point. 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," he declares.
The implications of Slauson & Co.’s success could be transformative for the venture capital ecosystem. By demonstrating that an inclusive, community-centric, and "pre-consensus" investment strategy can yield superior financial returns, the firm could inspire a broader shift across the industry. This shift would not only unlock immense untapped entrepreneurial potential across diverse demographics and geographies but also foster a more resilient, innovative, and equitable American economy. The NVCA’s spotlight on Slauson & Co. serves as a powerful affirmation of this evolving narrative, signaling a growing recognition within the venture community that the future of innovation is inherently tied to inclusion.
