Good morning friends! I hope everyone has been doing well. I have officially kicked off a referral program for my newsletter. So, if you enjoy this and want to share with a friend, see below for the different rewards you can win for referring your peers! This week we discuss DNA Data Storage, College eSports & VC Funding Types.

Fishing in Venture 🎣

What is DNA Data Storage?

I recently found an article on DNA data storage that I had read back in 2021. It piqued my interest as I have been trying to understand what some of the biggest problems are today and what the most creative solutions are for the future. While I'm no expert in DNA data storage, biotech or anything in the ballpark of those markets, I was still fascinated by the concept. The potential of this industry within the venture capital landscape caught my attention, prompting a deeper dive to understand the nuances and opportunities for the future.

So, what is DNA data storage? DNA data storage is the process of encoding digital data into synthetic DNA. This innovative method emerges as a response to our rapidly increasing data production, driven by the proliferation of technologies like smartphones, sensors, and cloud computing. Estimates suggest that we may soon reach a point where our data creation outpaces our storage capabilities. Here's where DNA comes into play - a molecule known for its exceptional capacity to store vast volumes of information over extended periods with impressive durability.

The need for data storage is escalating exponentially, with technologies such as autonomous vehicles and AI pushing the boundaries of existing storage solutions. Every day, it was estimated that approximately 2.5 quintillion bytes of data were being created. DNA's durability and density are superior to traditional magnetic storage technologies, with the ability to store a staggering billion terabytes of information per cubic centimeter - roughly the size of a sugar cube.

Here are a few bullets highlighting startups venturing in this arena, along with their funding status

• DNA Script: ($480M in funding) Collaborating with the Broad Institute and Harvard, DNA Script is working on a prototype instrument that can store and retrieve 1TB of data in 24 hours. They've been awarded a grant from the Intelligence Advanced Research Projects Activity (IARPA) for this initiative.

• Catalog Technologies: ($55M in funding) Focused on creating DNA-based digital data storage solutions and developing methods to make DNA data storage commercially viable.

• Molecular Assemblies: ($87M in funding) This startup is pioneering an enzymatic DNA synthesis technology.

My interest in DNA data storage is driven by where the future lies. As investors, we are parlaying our investments with what the future will look like. As we look towards the future, DNA data storage stands not just as a promising solution to a looming problem, but as a testament to the pursuit to find tomorrow's solution.

Fish of the Week 🐟

The Brag House: Where College Spirit Meets Gaming

I may be a little biased on this week's “Fish of the Week”. I was lucky enough to catch up with Lavell, the founder of Brag House. Before I get into the segment, I want to recognize all Lavell has done for me. Lavell was the first person to make a bet on me, hiring me as a freshman in college to help lead his expansion into the ACC market. Our personalities, goals, and dreams instantly matched when we met. He opened up his startup to me like it was a sandbox to play in, letting me get my hands on anything I could find. I learned a ton thanks to the Brag House. I met some amazing people, learned how to keep a startup afloat, keep it growing, and how to keep dreaming. My 2 year stint with them catapulted me into who and where I am today. I am passionate about founders like Lavell, who are gritty, dream big, and make things happen. Lavell, I cannot thank you enough for the impact you have had on my life.

From Dorm Room Dream to Gen Z Powerhouse: 

Brag House, a startup that's revolutionizing the way college gaming communities engage and compete. Lavell, a former college athlete turned corporate lawyer and serial entrepreneur, along with his co-founder, spotted a gap in the gaming landscape. Brag House wanted to create a community where casual gamers, united by their love for gaming and their alma mater, come together to compete, trash talk (lovingly, of course), and celebrate their shared passion. They saw that while professional gaming was booming, casual college gamers were looking for a community. Enter Brag House — a concept that turns college rivalries into epic esports tournaments.

Brag House isn't just another gaming platform; it's a tidal wave in the esports world. While the industry boomed, with billions pouring in and Gen Z emerging as a powerful spending force, the vast majority of gamers – the casual, fun-loving folks who weren't chasing pro dreams – were left out. They craved community, competition, and a space to connect with their peers over their shared passion. And where better to find that than in the vibrant, spirited world of college campuses? They tapped into the existing fabric of college rivalries, transforming school spirit into exhilarating esports tournaments. It's like the March Madness of gaming – complete with live streams, commentary, and the ultimate bragging rights. But what makes Brag House unique is its community-first approach. Their "Collegiate Leads Program" empowers students to be ambassadors, creating an authentic, grassroots wave of enthusiasm.

More Than Just Games – Building the Future:

The success of Brag House has been nothing short of spectacular. They've become a prime marketing channel for major brands like Coca-Cola and McDonald's, offering unparalleled engagement with Gen Z. Their tournaments aren't just a display of gaming prowess; they're a gateway for brands to connect authentically with a new generation. And the numbers speak for themselves – with cost per click and impressions rates far outperforming industry averages, Brag House is reeling in success. At the Brag House, they  want to shape the future of community engagement and brand interaction. They're poised to become a data analytics powerhouse, understanding Gen Z's behaviors and preferences like no other. As Brag House continues to write its story, they're not just creating a platform for gamers; they're building a bridge between college spirit, gaming passion, and the future of consumer engagement.

So here’s to Brag House – where I first fell in love with startups & storytellers. Thank you again, Lavell!

If you want to learn more about the Brag House or find out how to help - reply to this email and I will connect you with the Brag House team!

Ebbs & Flows 🌊

In this week’s Ebbs & Flows, let's tackle a topic close to the heart of every entrepreneur: navigating the varied landscape of startup funding. While venture capital (VC) often steals the spotlight, it's not the only fish in the pond.

Venture Capital vs. Angel Investing (I’m biased!)🪽 Venture capital and angel investment, though often lumped together, serve distinct roles in the startup ecosystem. Venture capitalists are typically part of a firm and invest significant sums into startups with proven potential, usually in exchange for equity and a seat at the table. They're in it for substantial returns on investment. Angel investors, on the other hand, might be individuals or groups who provide smaller amounts of capital to very early-stage companies. What sets angels apart is their motivation; they usually are driven by a desire to mentor and guide, expand their knowledge base, and create financial returns. The decision between seeking an angel investor or VC funding often hinges on how much capital you need and the level of involvement you're comfortable with from your investors.

Crowdfunding⚡ Crowdfunding presents an entirely different approach. Platforms like Kickstarter and Wefunder allow you to pitch directly to potential customers or supporters, offering them a product or a piece of the action in return for their financial support. This route can provide not just funding but also a strong market validation as your idea resonates with a broader audience. However, success here requires a compelling story and robust marketing strategy — your project needs to stand out in a crowded, competitive space. When I meet with founders pondering this option, I usually only recommend it if they are using it as a marketing tool and are in the consumer products space.

Bootstrapping🥾 Slow and steady bootstrapping is all about self-reliance. Funding your venture from your own pocket or through the business's cash flow can be incredibly gratifying, keeping you in full control of your company. The trade-off? It might limit your growth speed, as reinvestment comes from profits, which can fluctuate. But for those who value independence over rapid scale, it’s a viable and often rewarding path. I admire this funding source the most. When I meet with entrepreneurs and see that they’ve been bootstrapping, I know they’re committed and want to succeed.

Grants and Government Funding🏛️These funding sources offer a unique proposition: financial support without the need to surrender equity or take on debt. It's particularly appealing for startups in sectors like technology, healthcare, and clean energy, where research and development are pivotal. The process of securing a grant can be very time consuming and strenuous. Programs like the Small Business Innovation Research (SBIR) in the U.S. are one of the most popular grant funding programs. While the journey to secure a grant is marked by meticulous proposals and competition, the payoff is not just in monetary terms but also in the credibility and networks that come with such endorsements.

So, How Do You Choose? The choice boils down to understanding not just where your startup stands today, but where you envision it tomorrow. Venture capital offers a fast track to scaling, equipped with the guidance and networks of experienced investors. But it's a competitive field, and you'll need to give up a slice of your company. Angel investors provide a softer landing into external funding, offering both capital and mentorship, often with more favorable terms. Grants can take a long time to receive but protect your equity. Crowdfunding tests your product’s market appeal before you fully commit, while bootstrapping keeps you at the helm, albeit with potential limitations on growth. Each funding source has its unique set of challenges and advantages. The key is to align your funding strategy with your long-term vision for your startup.

Thank you for your support!