Backstage Capital founder Arlan Hamilton announced Friday that his role at the company he founded in 2015 will evolve.
“After 12 years of being deeply involved in day-to-day operations, I have decided to transition to the role of chairman and advisor,” she said in a statement posted online. She was previously the firm's managing partner. “This move allows me to expand Backstage’s mission to do what I do best: host office hours with founders and investors, chair our advisory board, and bring new opportunities through our platform. You will be able to concentrate on
He also said the company will enter into a strategic partnership with 360 Venture Collective, in which the company will “acquire a significant stake in Backstage's management entity” and join the joint venture, providing capital and helping the company scale. He also wrote that he plans to support the
“Together, we plan to launch a $200 million fund in 2025,” Hamilton said.
We have reached out to Hamilton and Backstage Capital for comment.
Backstage Capital has weathered some rough waters in recent years. The firm has invested in more than 200 companies, including fintech Guava and information platform Career Karma, according to Pitchbook. The company has approximately $20 million in assets under management and 56 exits. However, in 2022 we reported that the company's performance appears to be underperforming even then. At the time, the company announced it would only support existing portfolio companies and significantly reduce its team from 12 to three people.
Hamilton also said on a podcast at the time that he was frustrated with limited partners, believing some investors were already well-backed when that wasn't actually the case. He said the company was in a “purgatory-like position” because of his beliefs. Things will only get tougher for companies like Backstage and the founders it supports in 2022 and beyond. Funding and support for diverse founders and executives has stalled somewhat, especially for Black founders.
Hamilton said in an online statement that the partnership with 360 Ventures will ensure the company's sustainability “while doubling down on its ability to support underrepresented founders and create a lasting legacy.” Ta.
“I am confident that this next chapter will take us to incredible heights, and I am honored to continue to be a part of that journey in this new capacity.”