Arlan Hamilton: Founder of Backstage Capital

The mastermind behind Backstage Capital — a firm that focuses on investing specifically in startups led by underestimated founders — Arlan Hamilton, who identifies as a Black woman, formed her VC fund in 2015 when she was homeless and living on food stamps. In this article, we look into the struggles and success of this amazing founder and how she became a beacon of hope for women worldwide.

Early Life and Entrepreneurial Spirit

Born on October 30, 1980, near Dallas, Texas, Arlan Hamilton experienced firsthand the challenges entrepreneurs face. Raised by a single mother, she developed a resilient entrepreneurial spirit, evident in her early ventures, such as selling candy in school as her first-ever business. All these experiences, which she encountered very early in life, only motivated her to break barriers and create opportunities for others. Although she faced challenges, she still excelled academically and showed an entrepreneurial mindset from an early age. Hamilton did not attend college and instead worked in the music industry, where she first caught wind of the tech and finance space.

Seeking Education and Knowledge

Hamilton did not pursue a college degree but demonstrated a deep interest in knowledge and a commitment to self-education. Her primary sources for learning and seeking investment knowledge were extensive reading, research, and using resources such as blogs, books, and YouTube videos; using these, she entered the venture capital world.

Early Career

Arlan Hamilton with celebrities

Like many other entrepreneurs, Hamilton did not directly start her business ventures. She started her career as a TV production and director's assistant in the entertainment industry. Then she shifted to working as a tour manager and booking agent for various artists, like Terra Naomi, Kirk Franklin and The King's Men, CeeLo Green, Amanda Palmer, Nico Turner, Pharrell Williams, Jason Derulo, Toni Braxton, and Floetry. Hamilton displayed excellent organizational and management skills during this time.

Empowering The Entrepreneurs

While working in the entertainment industry, Hamilton's dream to empower other creative people led her on a new path. She paused her career in 2014 and shifted to pursuing her dream of helping aspiring entrepreneurs. In 2015, Arlan Hamilton was homeless and sleeping on the floor of the San Francisco Airport. Her meager savings were the only source for her survival; she faced extreme financial hardships and eventually had to rely on the support of friends. She shared about that difficult struggling phase of her life in an interview that she conducted with Forbes,

“I’ve definitely cried on the floor of an airport. I’ve definitely had those moments. But, it’s what you do after you cry. Do you stay down or do you get up? Plain and simple.”

Struggles and Resilience

Despite her early successes, Hamilton faced numerous challenges along her journey. As she entered the music industry to pursue her dreams, financial difficulties arose, leading her to rely on her little savings and experience periods of homelessness. Her hardships only made her more motivated and focused on her goal. Here is one of her quotes regarding her struggles:

“It’s been this crazy roller coaster there are really low lows and really high highs”

Hamilton's first investor was Kimberlin, an angel investor and advisor to (mostly) early-stage technology companies, who gave her the necessary support to launch Backstage Capital- her groundbreaking venture capital firm dedicated to empowering underestimated founders.Later on Susan Kimberlin became the founding LP and a venture partner at Backstage Capital.

The Birth of Backstage Capital

Hamilton's fortunes changed when she met Susan Kimberlin, an angel investor and startup advisor. With Kimberlin's help, Hamilton founded Backstage Capital in 2015, bringing a massive change in the venture capital world. Backstage Capital focused on supporting "underestimated founders" from marginalized communities, including people of color and women.

Image Source: Women of Today

Empowering Underrepresented Founders

At the core of Hamilton's mission was empowering underrepresented founders, so Backstage Capital became a platform for these founders and provided them with the necessary resources for growth and success. Hamilton firmly believed that investing in a diverse and innovative talent pool carried a social responsibility and a strategic advantage. This conviction arises from her awareness that female leadership and a multiplicity of perspectives bring about innovation and economic growth.

Arlan Hamilton's journey starting from the music industry and ending at venture capital, exhibits the power of women entrepreneurs and female leadership. She empowered the founders who were often overlooked, broke down barriers, and completely changed the game by laying the foundation of Backstage Capital. Hamilton's journey inspires all, showing us the incredible changes we can bring through inclusive entrepreneurship and emphasizing the importance of encouraging women to shape a fairer future full of fresh ideas. Arlan's life and accomplishments are a guiding light for everyone and a reminder for us that no matter what, there is always hope. Here is one of her famous quotes on resilience. 

“I can’t tell you how many times I have been given a no, only to find that a better, brighter, bigger yes was around the corner.”