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Optimist Ventures
a new era of venture philanthropy
combining grants and investments
for WNC Companies
Meet Optimist Ventures
Building off a decade of success at Venture Asheville, Optimist Ventures is designed to help long-term ambitious growth ventures based in Western North Carolina succeed by offering start-up funding and education through a rigorous 15-week accelerator complemented by $50,000 ($25K as grant, $25 as investment.)
Optimist Ventures is moving beyond traditional accelerator models to focus on scalable, community-rooted, and sustainable growth rather than unicorn-style returns.
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​Optimist Ventures is powered by Venture Asheville, the Economic Development Coalition for Asheville Buncombe County, and the Asheville Area Chamber of Commerce. Support is provided by the Dogwood Health Trust, Truist Bank Foundation, and local investors. ​
Optimist Ventures' Accelerator
Powered by Venture Asheville, the Accelerator is a rigorous 15-week program that supplies long-term ambitious companies with capital, credibility, expertise, and a network to set them up for growth and profitability.
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Each week will be themed around a specific topic and feature workshops and speakers to educate and connect with the cohort of founders.​
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Founders must be residents of Western North Carolina.
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​Applications and selection will open later in 2024, with the first cohort starting in Q1 2025.
Deal Terms
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​Each participating company will receive a minimum $50,000 Investment
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$25,000 is a grant. No strings, no payback needed.
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$25,000 is an investment as a SPA Note (more on that below)​​
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Shaped by a Post-Hurricane Helene Landscape
We believe that mentorship, experiential learning and competency development are essential tools for founders seeking to build resilient and sustainable businesses.
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Now more than ever, in response to the devastation Hurricane Helene wrought on WNC, Optimist Ventures is rising to serve our community.
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We put founders first; investing in our regional founders, developing entrepreneurs who will become our region’s future philanthropists, civic leaders and elected officials.
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A thorough breakdown of the programs, rationale, and impact can be found on the blog series "How Venture Asheville Built a $150M Startup Ecosystem; A 7-Part Series"
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Blog
Our Track Record
Venture Asheville knows how to foster thriving WNC companies
Revenue
$110M
Capital Raised
$60M
Local Jobs Created
368
A New Model for WNC Founders
And Investors
Shattering the Myth of the Unicorn
Conventional Angel and VC models are based on "all-or-nothing"/"unicorn-or-bust" approaches to the portfolio. The model is based on the adage, "if you invest in ten companies, expect 8 to fail, 1 to make your money back, and 1 to be a home run."
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That model may work in a market where capital and talent are a commodity. But in a place like WNC, we can't afford an 80% failure rate.
Winning on What Works Here
Optimist Ventures is taking a different approach. Instead of hoping for one home run a game, we are building an accelerator of singles, doubles, and a few triples.
Metaphors aside, Optimist Ventures' fund is built to win on averages, not exceptions. Don't call them lifestyle companies, these are long-term ambitious companies.
Complementing the Ecosystem
Bookended Incubators (Insight, Elevate, and Inspire) help our portfolio companies begin and continue their startup journey with us through our programs. Delivering accountability, peer groups, education and training opportunities that keep us close to the founders throughout their entire lifecycle.
Creating an Accelerator
We launch an industry-agnostic accelerator modeled after YCombinator yet uniquely informed by WNC values and market need. Meaning we accept startups from various industries serving early, pre-seed ventures and offer a founder-friendly deal to build long-term high-growth companies built to last.
Using a version of Shared Profit Agreements called SPA Notes, we've created a funding vehicle to meet the needs of founders and offer competitive returns to investors.
Venture Philanthropy
We are excited to announce that this venture philanthropy model is anchored by a generous commitment from one of our alumni companies, pledging $200,000 toward the grant portion of our fund. This significant contribution allows us to leverage additional philanthropic support and make a larger impact on the ecosystem.
In total, the fund will raise $500,000 from donors through our non-profit partner and we'll match $500,000 of private capital as investment.
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By offering a blend of a grant and SPA Note, Optimist Ventures provides founders with flexible and affordable capital, positioning them for long-term success. Investors also benefit from the lower cost of capital, giving them a higher rate of return using the built in predictability of fixed dividends. This mutually assured success is what we are branding “Venture Philanthropy.”
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You will find more details below in the FAQ
SPA Notes
$50,000 Investment
That's your cash to invest in our business and people.
Half is a non-dilutive grant, half is a SPA Note
Investors re-paid a fixed fee
Or percent of profit annually as a dividend.
If you don't make money, we don't make money.
You owe $6K/year for 6 years (or 10% of profit, whichever is higher)
Fixed cap on shared profits
Once the cap is met, we part ways.
In the event of an exit, SPA converts into equity
If you are a rocket ship-unicorn-going to the moon, we won't hold you back. In fact, we'll ride along. Our stake converts to 5% at a $1M valuation cap.
Our Team
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CEO of Optimist Ventures & Executive Director of Venture Asheville
Jeffrey Kaplan
Senior Program Manager
TBH
I am so thrilled by this accelerator's mission to shift investment mindset and support businesses committed to growth and job creation in our area. Asheville is an incredibly unique community and the founders that take the risk to start ventures here are some of the most collaborative and innovative folks in the industry.
It's taken years to hire key roles as a self-funded start up. With an accelerator like this, companies that possess long-term high growth potential could avoid some of the founder fatigue, and sometimes failure, by receiving necessary investment prior to conventional investment model expectations.
Gwendolyn Hageman,
Dare Vegan Cheese
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When do applications open?We anticipate opening applications in Q4 2024 and beginning the accelerator in Q1 2025. Sign up for our newsletter to find out.
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What is the Interest Rate for Founders?To calculate the interest rate (let’s call it the effective annual interest rate), we need to figure out what the repayments look like. Normally, if you were borrowing $50K, you’d expect to repay more than $50K over the term, not less. Repaying $36K suggests there might be some other financial mechanism at play. Let's assume for simplicity that the $36K is paid in equal installments over 6 years. We’ll use the formula for calculating the interest rate on a standard loan: Loan Amortization Basics: Loan Amount (Principal): $50,000 Total Repayment: $36,000 Term: 6 years Given that the total repayment is less than the principal, it would imply a negative effective interest rate, or some forgivable loan structure, unless other conditions are provided. The calculation shows an effective annual interest rate of approximately -10.24%, which indicates something unusual is happening here. Essentially, this suggests the loan is structured in a way that the repayments ($36K) are significantly less than the principal amount ($50K).
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What is the Total Cost of Capital?Note: Cost of Capital is not the same as an Interest Rate The cost of capital for founders comes primarily from the SPA Note. When we consider the full $50,000 investment (including the grant), the total effective cost of capital is significantly low. Since half of the funding is a grant with no repayment, the overall cost of capital for the full $50,000 is just 5.77%.
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What are the anticipated Investor Returns?We anticipate that this fixed dividend model will generate a 28% average cash-on-cash return annually for investors, with the fund delivering a total 144% return over the investment period. This structured approach provides a reliable and attractive return profile while aligning with our goal of supporting sustainable growth within our portfolio companies.
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Where do Investors get more information?Email JKaplan@ventureasheville.com for a business plan, deck, and ppm.
