In an evolving landscape where innovation is increasingly recognized as a distributed phenomenon rather than a Silicon Valley exclusive, Slauson & Co. stands out as a pioneering seed-stage venture capital firm. Founded on the profound conviction that exceptional entrepreneurial talent exists universally, Austin Clements, co-founder of the Los Angeles-based firm, is leading a charge to democratize access to capital, believing that investing in a broader spectrum of founders is not merely an ethical stance but a strategic imperative for economic growth and societal progress. This spotlight, part of the National Venture Capital Association’s (NVCA) "Meet a VC" series, delves into the philosophy, journey, and impact of Slauson & Co., highlighting the people, perspectives, and convictions that are reshaping the venture capital industry.
The firm’s name, Slauson & Co., is more than a geographic marker; it is a profound declaration of its core thesis. Named after Slauson Avenue in South Los Angeles, where Clements first met his long-time friend and co-founder Ajay Relan decades ago, the name embodies a worldview. Clements articulates this vision succinctly: "There is 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 strategy, driving them to actively seek out and empower founders who have historically been overlooked by traditional venture capital channels.
A Journey Forged in Entrepreneurship and Community Building
Austin Clements’ path to becoming a transformative figure in venture capital is characterized by a diverse range of experiences that collectively shaped his conviction in economic inclusion. His career commenced in wealth management at Bernstein, providing him with a foundational understanding of capital allocation and financial markets. This was followed by an entrepreneurial venture, a media startup he founded, which immersed him in the challenges and triumphs of building a business from the ground up. This direct experience as a founder undoubtedly informs his empathetic approach to supporting early-stage entrepreneurs today.
His transition into early-stage investing began at TenOneTen Ventures, where he gained crucial insights into identifying promising startups and navigating the complexities of the venture ecosystem. Beyond his direct investment roles, Clements has been a pivotal force in building foundational infrastructure for emerging entrepreneurial communities in Los Angeles. He played a significant role in establishing Grid110, an accelerator dedicated to nurturing nascent businesses and talent within the city. Concurrently, he was instrumental in launching PledgeLA, an initiative aimed at fostering a more inclusive and equitable tech ecosystem in Los Angeles by encouraging venture capital firms to commit to diversity in their investments and internal teams. These experiences underscore a consistent theme in Clements’ career: a commitment to fostering innovation through community and inclusive access.
The Economic Imperative of Inclusive Capital
Slauson & Co.’s foundational principle of economic inclusion is rooted in a simple yet powerful belief: "brilliance is everywhere, and the job is to go find it." This is not merely a philosophical stance but a deeply held conviction backed by a growing body of evidence suggesting that diverse teams and founders from underrepresented backgrounds often deliver superior returns.
Statistics consistently highlight the significant disparities in venture capital funding. According to various reports from organizations like Crunchbase and Deloitte, female founders and founders of color receive a disproportionately small fraction of overall VC funding. For instance, in 2023, female founders secured only 2% of venture capital, a precipitous drop from previous years, while Black and Latinx founders also faced significant funding gaps. Geographically, capital remains heavily concentrated in a few major hubs, often overlooking the immense potential in burgeoning tech ecosystems across the country.
Clements argues that backing a wider range of founders is not merely a matter of principle; it represents a significant market opportunity. "The most exciting companies, in his experience, come from spotting extraordinary builders before the rest of the market does – talented people who may not fit the traditional Silicon Valley mold but have every bit of the capability." By widening the aperture through which potential is viewed, Slauson & Co. aims to unlock untapped value. This approach, Clements believes, not only generates better outcomes for investors but also injects more diverse ideas, more innovative solutions, and more communities into the engine of American innovation, fostering a more robust and resilient economy. The firm’s work, therefore, is centered on "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." This perspective challenges the historical biases embedded within the venture capital industry, which have often favored founders from elite universities or established networks, inadvertently limiting the scope of innovation.
Strategic Foresight: Betting on the "Pre-Consensus"
Slauson & Co.’s investment strategy is characterized by a keen focus on identifying opportunities before they become mainstream. Clements credits investor Hunter Walk with articulating a key insight: the goal isn’t necessarily to be "non-consensus," but rather "pre-consensus," especially at the seed stage. This strategic foresight involves discerning nascent trends and backing founders who are building solutions for problems that the broader market has not yet fully recognized or validated. "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 emphasizes. This approach demands a deep understanding of market dynamics, an acute ability to spot emerging patterns, and a willingness to take calculated risks on nascent ideas.
Beyond investment strategy, Clements also shares a personal evolution in his approach to work and leadership. While he once believed his relentless work ethic was his primary competitive advantage, 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 led to a shift from individual exertion to collaborative empowerment. Now, his first question when faced with a challenge is not how hard he can personally work on it, but rather "who he can bring in to move it forward faster." This collaborative ethos is deeply embedded in Slauson & Co.’s operational model, extending to their engagement with portfolio companies and the broader entrepreneurial community.
Beyond the Check: A Comprehensive Support Ecosystem
Slauson & Co. distinguishes itself not only through its investment thesis but also through its proactive, hands-on approach to supporting its portfolio companies. The firm typically leads its deals, investing between $1 million and $3 million, and commits to working closely alongside the founders it backs. This lead-investor role is central to Austin Clements and his partners’ operational philosophy, ensuring a deep level of engagement and commitment to the success of their entrepreneurs.
A prime example of their comprehensive support system is the "Friends & Family accelerator." What began as a modest initiative offering a $25,000 non-dilutive grant to 20 companies has evolved significantly. Through continuous evaluation of what truly "moves the needle" for founders, the grant rapidly grew to $150,000 and, in recent cohorts, reached $300,000. While the capital injection is substantial, Clements insists that "the capital isn’t the point." The six-month program is meticulously designed to provide invaluable resources and mentorship. It features weekly sessions with speakers ranging from co-founders of industry giants like Airbnb to top-tier investors, offering unparalleled access to expertise and networks.
Crucially, the program prioritizes the creation of a strong peer group. For many participants, Slauson & Co.’s accelerator represents their first venture into a venture-backed company. The shared journey, the collective challenges, and the mutual support fostered within this community are invaluable. "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 explains. This communal approach addresses the often solitary nature of entrepreneurship, providing a vital network of support and shared experience.
This commitment to community extends across Slauson & Co.’s entire portfolio through initiatives like "Slauson Summer Camp." Each year, the firm gathers its founders, not for conventional business optimization discussions, but to foster authentic human connection. The camp focuses on holistic well-being and community building, asking founders "how they’re actually doing" beyond the metrics. Clements emphasizes that "the starting point is building a more authentic relationship than just a transactional one." This approach serves as a poignant reminder that behind every venture-backed company are individuals taking significant risks to build something new, and the industry’s role extends beyond mere financial transactions to encompass genuine partnership and support.
The Human Side of Venture: Coaching, Collaboration, Community
When asked what he most wants people to understand about venture capital, Austin Clements steers the conversation away from capital and towards relationships. He posits that venture capital, at its best, is fundamentally about "coaching, collaboration, and community." These elements, he argues, represent "the work that happens long after the wire clears." This perspective reframes venture capital from a purely financial endeavor to a deeply human one, emphasizing the mentorship, strategic partnership, and network effects that contribute to a startup’s success. It suggests a future for venture capital where value creation is increasingly tied to the depth and quality of these non-financial contributions.
Advancing Toward What Will Be: Redefining American Innovation
Austin 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 forward-looking principle has profoundly influenced his life choices, from his educational path to his parenting style. Applied to the venture capital industry, this conviction fuels his confidence that a greater diversity of voices and perspectives is not merely desirable but an inevitable trajectory for the industry.
Clements sees Slauson & Co.’s work as instrumental in accelerating this shift. He believes they are "in the business of betting on the underdog." When these underdogs break through, he asserts, "it doesn’t just crown a new champion – it changes the world in a whole different direction." He draws an analogy to the advent of the iPhone: a paradigm shift that, while obvious in hindsight, required a visionary like Steve Jobs to bring it to fruition. Similarly, the future of American innovation, Clements contends, demands founders willing to build it and investors audacious enough to back them.
The broader implications of Slauson & Co.’s model are substantial. By demonstrating the commercial viability of investing in historically underserved markets and founders, they are not only creating wealth for their limited partners but also catalyzing a systemic change within the venture capital ecosystem. Their success could encourage more traditional firms to broaden their investment criteria, leading to a more equitable distribution of capital and a more diverse range of innovations. This shift has the potential to unlock significant economic growth, create jobs in new geographies, and address societal challenges with fresh perspectives.
"It takes funds like ours to prove the point," Clements states, articulating the firm’s ambition. "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." Slauson & Co. is not just building a portfolio of companies; they are building a movement, challenging the status quo, and advocating for a future where innovation is truly inclusive, reflecting the rich tapestry of American talent and ingenuity. Their work embodies the belief that by championing the overlooked, they are not only fostering individual success stories but also actively shaping the next chapter of American economic leadership and technological advancement.
