The 81 Collection

An Early-Stage Firm for Un-Sexy Industries

a. Hello!

Hard industries face a 15:1 funding gap versus soft ones.

We are a collection of entrepreneurs who brought our offline industries online.

Now, we're backing the next generation building across the 81% of U.S. GDP underserved by early-stage capital.

Sewing MachineImage of a houseConstruction siteWarehouse with boxes

B.  Why?



Problem

We built companies in un-sexy industries, and it was lonely when we started. Most venture capitalists said our industries were too capital intensive, low margin, or difficult to scale. We were outsiders.

Now, we can look back at the $60 billion of value created and the 30,000 employees whose financial trajectories we altered. The very qualities that made our businesses unattractive early are now our greatest strengths.

Our entrenched assets serve as a barrier to entry, our higher-quality revenue inextricably ties to our customer’s daily needs, and our loyal employees who once made $20 per hour now make $100K per year. We chose the harder path, built the right kind of businesses, and improved America.

A decade later, not much has changed in early-stage financing.

Solution

We back early stage companies transforming boring trades, hard work, unpleasant spaces, and structural inequity. We know first-hand that exceptional humans can unknot these un-sexy industries.

Now is the perfect time. California is out of water, a generation can’t afford a home, and our skilled tradespeople are in their fifties. Raw input, supply chain, and labor crises are silently cracking America’s infrastructure.

Today, 19% of the U.S. GDP attracts more than 50% of early stage investing activity. 81% of the U.S. GDP is under-invested. Trillions of dollars of value are locked up in serious, unsolved problems across the 81%.

Tackle a real, often very difficult problem. Use technology, cash flow, and a long-term mindset. America needs you to, and know that we exist to lighten your load.

C. Theses

Boring services icon

1. Boring Services

"Too Low Margin"

The world doesn't need another social media app.

We still need to figure out recycling, improve nursing homes, and give small businesses a chance.

hard work icon

2. Hard Work

"Too Capital Intensive"

We live in the greatest economic period in global history, but the profits have gone to a few.

We need to produce again and fold blue collar industries and communities into the digital revolution.

unpleasant spaces icon

3. Unpleasant Spaces

"Too Resistant to Change"

The metaverse is nice, but 58% of Americans still work in physical spaces.

We have 9 millions apps, but a generation can't afford 1 home.

inequitable structures icon

4. Inequitable Structures

"Too Much Red Tape"

Many great Americans are still blocked from opportunities.

COVID-19 cracked our HR and social infrastructure. Entrepreneurs can now exploit these cracks to democratize access.

Theses chart
% GDP by Industry
Thesis 1Thesis 2Thesis 3Thesis 4Thesis 5
1. Boring Services

"Too Low Margin"

The world doesn't need another social media app.

We still need to figure out recycling, improve nursing homes, and give small businesses a chance.

2. Hard Work

"Too Capital Intensive"

Blue collar industries have been largely left out of the digital revolution.

Computing power can now materially impact machines. We've made smarter ovens and better fitness equipment, but there are many more machines who need to learn.

3. Unpleasant Spaces

"Too Resistant to Change"

The metaverse is nice, but 58% of Americans still work in physical spaces. Plus, we all need a home. A real one.

IoT and automation can significantly improve our physical world.

4. Inequitable Structures

"Too Much Red Tape"

Many great Americans are still blocked from opportunities.

COVID-19 cracked legacy infrastructure in education, government, and social assistance. Entrepreneurs can now exploit these cracks to democratize access.

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Other graph section
Retail
Manufacturing & Logistics
Technical Services
Construction, Mining, Energy
Real Estate & Hospitality
Education, Gvt, Social Assistance
Other
Total
Rest of GDP
GDP
graph line
<50% of venture deals
>50% of venture deals

e. The Collective

Our operator-investor community

Coming Soon

Info logo

We have a unique fund structure that catalyzes this community.

F. More

Coming soon.