In this episode of the Skin in the Game podcast, Saxon Baum sits down with Eric Bahn, co-founder of Hustle Fund, to explore the art and science of investing in pre-seed startups. Eric shares his personal journey from growing up as the son of Korean immigrants in Detroit, Michigan, to becoming a media founder and early-stage investor in Silicon Valley. His story highlights the value of persistence, humility, and learning from failure, a mindset he believes is critical for both founders and investors. Eric emphasizes that great founders “look like anyone and come from anywhere.” While Silicon Valley has historically dominated the venture ecosystem, he notes that secondary and tertiary markets are now producing founders just as capable, thanks to the democratization of knowledge via the internet. Eric also points out a subtle but important distinction: founders from Silicon Valley often carry a relentless “grow fast, break things” mentality that accelerates execution, yet this mindset is increasingly being adopted across the country. Hustle Fund takes a unique approach to investing, prioritizing hustle and execution over pedigree. Eric shares stories of candidates and founders who defied traditional expectations, one high school dropout who became a 100x operator, and a Princeton-educated engineer who couldn’t deliver. For Eric and his team, pre-seed investing is akin to hiring: it’s about identifying grit, determination, and the ability to learn quickly. Hustle Fund typically writes initial checks of $150,000 and pairs founders with growth projects and mentors to test their capabilities. About 20% of these teams receive a follow-up investment of $200,000. This model allows Hustle Fund to support hundreds of founders while remaining valuation-conscious. Eric also highlights the influence of founders’ backgrounds, particularly in the service industry. Experiences as bartenders, waitstaff, or customer service agents cultivate resilience, emotional intelligence, and sales skills qualities that translate into startup success. For Eric, this aligns perfectly with the fund’s philosophy of backing “hustlers,” regardless of formal credentials or pedigree. The conversation also dives into the role of media in venture capital. Eric explains how Hustle Fund leverages newsletters, events, and founder communities to provide value beyond capital, helping founders generate awareness, mentorship, and early revenue. This approach reflects the evolution of venture investing from a purely financial transaction to a hands-on, service-oriented partnership. Finally, Eric shares insights into managing an expansive portfolio of 620 companies across four funds. Hustle Fund uses sophisticated data systems and a network of mentors to track growth, assess progress, and double down on top performers efficiently. Reflecting on the culture of failure in Silicon Valley, Eric notes that “When someone starts a company here and it doesn’t work out, the first question isn’t, ‘Why did you fail?’ but, ‘What did you learn, and when will you try again?’” This mindset, he believes, is essential for innovation and entrepreneurship. This episode offers an invaluable look at what it takes to succeed as a founder and investor in today’s pre-seed ecosystem, highlighting hustle, resilience, and the evolving dynamics of venture capital. Hosted on Acast. See acast.com/privacy for more information.
