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#205: Rick Smith, Co-Founder & Managing Director at Crosscut, One of the Top Venture Capital Firms in Los Angeles, on Helping Founders and Becoming the Firm of the Future

October 16, 2020

Rick Smith is a Co-Founder and Managing Director at Crosscut, one of the top venture capital firms in Los Angeles.

Crosscut is a seed-stage venture capital firm, looking to invest $1-3 million in early-stage companies with hyper-growth potential.

About Our Partners

This episode is also brought to you by Hawke Media. Hawke Media is a full-service Outsourced CMO based in Santa Monica, CA, providing guidance, planning, and execution to grow brands of all sizes, industries, and business models.

Hawke Media was recognized by Inc. as the country’s fastest-growing marketing consultancy and is proudly one of Glassdoor’s “Best Places to Work”​, 2019 #893 on the Forbes 5000 list, UpCity Top Los Angeles Digital Marketing Agency. Hawke’s collaborative process, à la carte offering, and month-to-month fee structure give clients the flexibility they need to boost digital revenues and marketing ROI.

Hawke Media The company has serviced over 1500 brands of all sizes, ranging from startups like Tamara Mellon, SiO Beauty and Bottlekeeper to household names like Red Bull, Verizon Wireless and Alibaba.

Listen to our interview with Erik Huberman, Founder and CEO of Hawke Media, in episode 23 of the Just Go Grind Podcast.

Some of the Topics Covered by Rick Smith in this Episode

  • An overview of Crosscut, including how much they invest and the areas they invest in

  • How the global pandemic has impacted Crosscut

  • How many meetings Rick is having with entrepreneurs before a term sheet now vs. pre-COVID

  • What a first meeting vs. the next few meetings look like for a founder talking with Crosscut in the 2-4 weeks before a term sheet is offered

  • Seeing 4,000 - 5,000 business plans per year, doing 400 - 500 meetings, making 10 investments

  • The process of finding a Chief of Staff for Crosscut and why they decided to pursue including this role at the firm

  • PledgeLA, investing in South LA, and diversity & inclusion initiatives

  • Rick's advice around hiring for startups

  • How Crosscut is investing in becoming the firm of the future

  • Equity splits for founders

  • Deal flow at Crosscut and why they co-invest

  • Investing in first-time founders vs. repeat founders

  • Rick's first exit at Crosscut

  • Rick's advice for others looking to become investors

  • Investing out of Crosscut V

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