The Eye-Opening Advice That Made Me Change How I Invest

Jason Scott Angel Investor

Meet Jason Scott – Angel Investor and Venture Capitalist.

Jason shares the investing advice that made him change his investing strategy and why he is so passionate about connecting entrepreneurs to capital.

Table of Contents

My mom worked 24/7 to create a wonderful life for me

For most of her career, my mom worked for the US Air Force. She just retired in 2019. Growing up, we moved every two to three years and lived all over the US. For a large part of my childhood, it was just us. She married at 18 but separated from my father about a year or two after I was born. Although money was always tight, my mom worked 24/7 to create a wonderful life for me growing up. 

She enlisted in the Air Force right after high school. When I was born, she knew she needed to go back to college to become more financially secure for the both of us. She worked as a correctional officer at a state prison in Georgia – among many other part-time jobs – and subsequently went back to school to get her bachelor’s degree. She graduated from the University of Georgia and became an officer in the USAF in 2000. 

My mom went back to college to become more financially secure for the both of us

We’ve lived in different parts of the US, but Georgia is home. Both my mom and I were born there, and my earliest memories are of Georgia. Perhaps because we moved around a lot, I have always been a nomad. Before COVID, I traveled 80% of the time to South America, Africa, the Middle East, Asia, and Europe, finding founders, supporting them, and investing in their companies. I travel less now, with about 25% of my time spent on the road. 

My partner and I now live in New York City and enjoy exploring the city. We moved just before the pandemic, so it’s fun seeing NYC post-lockdown. 

In general, my work is incredibly fun. I genuinely find the work I do with entrepreneurs enjoyable. I love meeting passionate people who want to change the world and helping them get funding and support. 

Jason Scott Build Generational Wealth

 

How did you get to where you are now?

Through a series of doors opening. In high school, my mom made me apply to a program at MIT. I had heard about MIT, but I never considered going there. I wonder how my mom found this program, but, as I said, she knows all the tricks in the book. 

I loved the program. It was the first time I met people of color from all over the world who were so incredibly smart and passionate about different topics. I had always been the best at school and hadn’t felt challenged. For the first time, I was surrounded by exceptionally talented people who I identified with and who expanded my thinking. I wanted more, so I applied to MIT and got in.

I was surrounded by exceptionally talented people who I identified with and who expanded my thinking

At first, I wanted to be a surgeon. I liked my pre-med classes, but after interning at a hospital, I knew medicine wasn’t for me. I’m one of those people who absorbs the energy of those around me. Being in a hospital drained me. It was depressing being surrounded by so much pain. I kept my Biological Sciences major but knew I wouldn’t become a surgeon.

The next door that opened was a complete coincidence. I have always loved dancing. At MIT, I was part of a dance troupe and made friends with Amelia. We bonded over a love for dance and biology. After deciding medicine was not for me, I had no clue what I wanted to do. One evening, Amelia and I were chatting after rehearsal. She had done a consulting internship and loved it. I hadn’t heard about consulting before but immediately felt it would be a good fit as I wanted to learn more about business. I got a consulting internship at Arthur D. Little (ADL) and joined them full-time after graduation.

Jason Scott Invest in Startups

I loved working with “startups” within large companies while at ADL. Most of my consulting work focused on R&D and innovation. After a few years, I went to work for a startup in the Bay Area that no longer exists. Working for this startup made me decide to go to business school. I saw firsthand the challenges of growing a business and wanted to learn more. I couldn’t imagine going anywhere else but Stanford. It’s right in the heart of Silicon Valley and startup central. 

While at business school, I consulted for startups independently. I realized that many decisions for early-stage companies in Silicon Valley were driven by capital. Companies pivoted based on what investors would fund. I needed to understand the world of Venture Capital to help my startup clients. 

I walked down the street to Highland Capital Partners. I met with one of the partners and asked to work there part-time while I was at Stanford. I talked about my consulting work with startups and my deep understanding of what it’s like as a startup founder. He said yes. I worked 30 hours a week at Highland during my second year of business school and continued working for them after graduation. 

I met with one of the partners and asked to work there part-time while I was at Stanford . . . He said yes.

While at Highland, I discovered my calling. Few people in Venture Capital look like me. I want to expand access to so many founders who live all across the world and have brilliant ideas but need help tapping into capital. I decided to leave Highland and travel the world, discovering founders and connecting them to Silicon Valley. This brought me (back) to the nomadic life I knew growing up.

The only way I can describe this last door is kismet. I was independently finding great founders when an MIT friend with whom I was producing a musical in San Francisco introduced me to the startup teams at Google. This team was tasked with building a startup program from scratch at Google Cloud. It was fate. I joined Google and continued what I was doing on a much larger scale. Now I had the Google ecosystem backing me, allowing me to expand my impact. Looking back at my career, MIT and the friends I made there have been instrumental in exposing me to new opportunities. 

I want to expand access to so many founders who live all across the world and have brilliant ideas but need help tapping into capital.

What’s your relationship with money?

I am always and forever frugal. Growing up, I learned to differentiate between what I wanted vs. what I needed, as money was limited. You can’t have everything you want; even if you could, you probably shouldn’t. There are likely better uses for that money.

In Silicon Valley, there’s a whole other world of money making more money that I discovered in my late 20s / early 30s. The rich get richer because they are exposed to so many ways of investing money to make more money.

I remember organizing a workshop for the Black Google Network. One of the guests said, “If you’re not doing anything with your money, you are making a decision. You are passively deciding to keep your money in cash or Google stock.

That was a wake-up call for me. I was already investing in startups, but my perspective shifted. I wanted to invest more money and invest my money more actively and intentionally. Most of my net worth was in Google stock, as I received stock as part of my compensation. I decided to diversify my net worth. There was a whole world of opportunities to pursue.

That was a wake-up call for me . . . I wanted to invest more money and invest my money more actively and intentionally

I started an angel investing school at Google to learn more. We also created the Black Angel Group, with over 130 Google and Alphabet employers pooling funds and expertise to invest in ethical, high-growth companies. Through angel investing, I realized I had an excellent pipeline of deals and decided to raise a fund in 2021. That’s how I decided to join a former colleague to launch ANIM.

I am more intentional about how I think of money now. I thought I had already made it when I was no longer living paycheck to paycheck. But now, I know you can build generational wealth by investing your money actively. I worry that so many people don’t realize that investing offers more options to grow your money than if you only save money. I am more open to taking calculated risks than I used to be when I didn’t have access to the breadth of investing options I have now.

What does financial success look like for you?

What I want out of life has stayed the same. I have always seen myself as winning the award for the best supporting actor – being that person who helps others get to their goal. I started out focused on health and wellness – I wanted to help others live happier and healthier lives. Now, I am focused on helping people build generational wealth. That’s my ikigai, my reason for being. It’s the perfect blend of what I love, what I’m good at, what the world needs, and what I can be paid for. 

Financial success has evolved from not living paycheck to paycheck to building generational wealth for myself and my ecosystem. Instead of finding pleasure in being able to order sushi whenever I want (still dope), I now find joy in hearing from founders whose lives have changed by gaining access to capital. That’s why work is fun.

The hard part is there’s no number. It’s not an amount of money or the number of successful companies funded. I’ll know I’ve gotten there when I can’t think of anything else to do with money that will create positive value for society.

Financial success has evolved from not living paycheck to paycheck to building generational wealth for myself and my ecosystem

What do you do with your money?

It’s changed a lot. My co-founder and I aren’t paying ourselves yet from the fund. In the meantime, I do a lot of freelance work, especially with Google. 

When I worked at Google, most of my discretionary income went to angel investing. That is still the case today.

What purchase brought you the most joy last month?

Travel and angel investing. I love supporting founders, even if it’s in small amounts. I always have a goal of visiting at least 6 continents each year. (In 2016, I made it to all seven!) These days, most of my travel is mixed in with speaking engagements or visiting founders. 

What purchase do you now regret?

I’m still frugal. I only ever regret wasteful purchases. Once in business school, I had a lot on my plate, balancing going to school full-time and working full-time. In one hectic week, I got to the airport for a flight and realized I had bought two tickets. That doesn’t happen anymore these days. Thankfully, most of my travel is paid for by business partners. I don’t spend much on material stuff (e.g., clothes, gadgets). I honestly can’t remember the last time I bought new clothes.

What advice do you have for beginner investors?

Diversify – don’t put too many eggs in one basket. Many colleagues at Google held too much Google stock. It’s risky when your salary and investment portfolio are linked to just one company, even if that company is Google. I apply the same rule to how I invest. If I have $100,000 to invest, I won’t put it in just one startup or fund. I will spread it out across multiple investments. 

Diversify – don’t put too many eggs in one basket.

Also, learn as much as you can. As you learn, you can do more. I have come a long way from the high school kid who was a big fish in a small pond. Now I am intentional about exploring as many ponds and as much of the ocean as possible.

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