YouSaid · the spoken record

Chad Summe

lines on the record: 65
first: 2024-01-25
most recent: 2024-01-25
sittings or episodes: 1
sources: podcast

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“Thanks, Mike. The feeling is mutual. I've never been more inspired than over the past three years launching the Gateway. I feel very grateful for being on this journey with you and the entire team and appreciate the push To better myself each day. The other person that comes to mind is a friend who gave me an opportunity. To be successful with both PNG and quotient”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Picking a partner in life, whether it's your spouse or business is the most important decision you'll make. And I think I've learned so much from Chad. We're very, very different people. He inspires me in many ways. And we bring so many different things to the table. And I would say that about the rest of my partners, as hard as this has been, it's been the most enjoyable, impactful part of my professional life because I'm around people that do inspire me. And so I would start there. And then obviously my father. We raised eight children. He and my mother, and he had his own law firm, and he is an entrepreneur. And I've learned so much from him in many ways.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“I don't think many people know that I'm the youngest of a family of 10. I haven't been through the military and some great experiences in my life. I still hold true that it was the most formative experience of my life and growing up in that slot of a big family. The military gave me a whole new level of adapt and overcome, but I was first learned at a young age.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Live fishing. I love it. I'd say there's few things I've ever found where I'm more passionate about something. And it's pretty easy. It just unwinds me. I have a hard time not moving at a fast speed. And I really appreciate fly fishing where it requires just enough concentration to push everything out.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Because we also believe very firmly in alignment. And we think there's a lot of alignments and fun ones and twos and threes that may depart in fours, fives and sixes. We also believe thesis, not just because eGateway is taken. And yes, we're biased, but we do believe that we're bringing real differentiation. We believe we built this firm to be outside the bell curve intentionally. And a lot of that is through how we're investing with a thesis generated approach where we can be research-led and fine, but also as an operator led, I said in the beginning of our discussion in growth capital, we just believe at our core that more emphasis needs to be put on growth and capital. And we're finding that to be true in the receptivity really high with our founders where we're having an ability to access.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“A virtual cycle that's hard to break. So love your team, but no track record. We constantly suggest that there is a track record, but just not in the traditional sense. And you go around this. But it's something you really just have to embrace. Mike and I and the rest of the partners, this goes back to building a firm over a fund. We're on a journey. We're committed to build something lasting. And we're also committed to enroll folks on that journey whenever you're ready. So a lot of folks aren't ready at the emerging manager spot. And that's okay. I really think it's getting out this story of where are the advantages. I think a lot of time the connotation and the emphasis on emerging managers is negative when data would suggest quite the contrary. Data would suggest that funds one through three outperform. We believe that's intuitive because”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“So they have the ability to directly communicate and control their destiny. But to do that, five players control 80% of media spend. We believe that has to revert back to the mean. Brand.coms have to become more effective. And to do that, they're going to have to engage with the consumer in a way that she wants to engage and consume content. And that's not with static sites anymore. So that's with live shoppable. If you look at Asia, as an example, we think they're out four to five years in front of the US on how to use video from a concept of engaging the consumer. Live feed is an example is blowing up on that side of the world. Whether that comes in its form over the US, we shall see, but we definitely believe video commerce is one way we see helping brands retrieve some of that back from retailers.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Clay in that space in your investment So there's a funge line that goes through some of our investments that plays towards the decentralization of big functions like we've just been talking about. So firework is an example, a digital video commerce company. So think of them as shoppable, swipable, shareable video, similar to like a TikTok experience, but unlike TikTok, not in a walled garden, so not in an app where they own all the data. But instead, in a very decentralized approach, enabling that technology to brands themselves to put that shoppable, shareable, swipable video on their own brand websites on brand.com. Now, why does that matter? Well, getting first access to first party data is going to be very important and is very important to everyone.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Power was really around the consumer, and they brought retailers such knowledge to how to win the aisle, how to win the category. And now today with digital playing, such a role in purchase data being the source data that matters, retailers have the power. And so it will be interesting in our view of how this plays out, either CPGs are going to have to reconcile the fact that their gross margins are going to be cut in half over time, which I doubt they're going to come to that conclusion super easily. But there's going to be a battle around how to get back access to my consumer direct to consumer is going to be lumpy, but I can assure you that the next two decades, every executive in both CPG and retail is thinking about this orientation of cost to serve, how expensive and how to serve that ecosystem more effectively. Where do you want to?”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Something we really are interested in. We're spending a lot of time thinking about on both the front end of supply chain, but also the back. The other area that we believe in is this whole pendulum shift between retail and CPG that's occurred over the last 30 years as the power pendulum has swung so dramatically over to retail into the intermediaries of distribution that have now become data powerhouses. This is a relatively new phenomenon. I always use the analogy of PNG's size to Walmart in the 1980s versus today. It's quite different. PNG makes up maybe 1% of Walmart's business and Walmart makes up today. I'm using round numbers, maybe 30% of PNG's business. So where do you think the power lies between those worlds just to fully bring it home just how much has changed over the last three decades? CPG.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“There's two themes that we're thinking a lot about. We believe that every company in the world has put a new lens on their supply chain visibility, but also resiliency. And we think we're just in the super early innings of thinking about this because these aren't yearly changes. They're decades long to move their supply chains in an environment that's going to be a little more resilient. I don't know if I'm allowed to say there were blessings that came out of COVID, but I do think that every C-suite is still in the assess the landscape to what changes are really going to be made over the next decade when it comes to maybe nearshoring or looking at the entire algorithm that took their supply chain in one direction and making sure that every variable in that algorithm is one still true. And two, how important.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“In this space, we couldn't be more excited about the opportunities to bring a social media experience and a commerce experience more seamlessly together. We call the Airbnb of warehousing and fulfillment. Helping brands reach the consumer more efficiently and effectively providing access to warehouses throughout the country with a turnkey technology. For cargo Matic, a digital freight marketplace connecting Getting things through ports to the first point of distribution and overhaul In a space And that's supply chain. And last, we're super excited about reverse logistics. Especially And $820 billion problem actually, and that it's getting bigger every year. Knock, our most recent investment is focused on solving this problem for consumer electronics and durable goods.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Video directly to brands, all outside the walled gardens of social media platforms, allowing brands to again have a direct relationship with the consumer and ultimately build a first party data source. Or companies like VidMob, an AI driven company in our portfolio who is creating entirely new space in performance marketing, a space called Creative Intelligence, helping brand marketers drive better outcomes with their video creative than ever before. We're also excited about our third pillar, how things are sold and transacted. Companies like Sam Cart, the Shopify for the Creator Economy, and AI-driven platform that helps creators monetize their following through online courses, podcasts, coaching, and tons of other digital products. Our companies in the social commerce space, I want to announce, but I just can't yet, but our next portfolio company actually plays directly.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Up a leadership institute and then was at a family office before joining us about a year ago and just recently moved to Cincinnati. So we're adding to the population here in Cincinnati through our efforts of building the firm too. What are you most excited about? That's really simple. Nothing fires us up more than thinking about all the technology that is driving the transformation in our economy. We really do get excited about all the companies in our portfolio focused on solving big problems across the investment pillars that we've talked about. Starting with how things are made. Take a company like 80 acres. It's a vertical farm that is doing something that has never been done in the history of mankind. Producing food indoors at scale and actually making money. Changing an industry of farming and food production that has been really the same for a millennium. Then we go to our second pillar how things are marketed. Companies like firework bringing shoppable, swipable, shareable.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“He went to Harvard Business School and then was at Bain consulting in tech and private equity and then launched a portfolio of direct-to-consumer pet brands. So he has seen a lot of these picks and shovels technologies we're investing in. He has done a lot of other investing along the way. So tremendous asset to the team. Kevin Gus Weiler is a Cincinnati native. I have known Kevin for a long time. He comes with a little more of an investment background as well. He was at 5th Third Bank in Cincinnati doing a lot of Corp Dev and FinTech investing. So he has a lot of network around the fintech world, which falls in our thesis there. And then was at Fort Washington Capital Partners, which is inside of Western and Southern before he helped us launch EGATW. And last but certainly not least is Maddie McIntyre. Maddie is from San Diego, played softball for Ohio State, then worked at Ohio State fundraising for many years.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Our seasoned veteran on the squad is the gentleman by the name of Mike Dutton. Mike has lived and worked in the private equity world for over 30 years, was early on at the Carlisle Group, and then moved out west, as he says, to do his service as the co-head of private capital at Cowper's. So he is seated and advised a lot of emerging managers like us. So not to mention his network and wisdom around seeing investments and making decisions, but just what it takes to build a firm, not just raise a fund. And so we're very blessed to have Mike. He lived in Covington, Kentucky for two and a half years as we launched. And so we're very grateful to him and his wife for doing that. They live out in California. We mentioned Josh Awad. Josh is a naval academy classmate of Chad's. They go way back in that respect.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“That's the story we're sharing over time. We think there's a great opportunity to scale, and it's already happening with several of our portfolio companies here in the region and where we can facilitate it. We view it as a win for them, first and foremost, and a win for Northern Kentucky and greater Cincinnati.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Curve of scaling up. And usually that's the same playbook of going up the food chain with bigger customers, but also scaling their operations and scaling people. And we love to bring the story of the region to these companies, where and when it makes sense. It's not a requirement, of course. But we have great alignment working with them every day to help them with everything they're trying to achieve and just build awareness around the middle of the country being a great place to scale. And I think it's way beyond cost benefits of not being on the coast. It's really more around being closer to your customer. So much of U.S. industry sits right here in the middle of the country. And when you're a startup moving to gross stage on the coast, sometimes serving those customers as effectively as you need to as you're getting on bigger and bigger enterprise accounts just becomes more difficult. So I think.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“I'm glad you asked that, Ted. It's a good clarification. We're not geographically bound on any of our investments, so nobody should take that away. Where our excitement about building a firm that happens to be headquartered here, our thesis of investing around the future of commerce happens to align well with the historical and natural strengths of the region. And being undercapitalized both as a region and then a smaller city within that region, we're excited where EGA can play a positive role progressing our future forward over the next two decades. We think this is a great attractive place to both scale. I had that experience in my former company. We built Cincinnati. It was a mountain view-based company into our largest global office. It's a great place to scale a company. And so we're excited about that. And that brings us to your question. We really think we're intersecting with gross stage companies. They're all at this.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Through customer introductions. Quick overview on their business, Ted. It's really interesting. Their customers are, I think high value goods. So Apple, Dell, Microsoft, Pfizer, Bristol Myers, some cold storage where they're tracking and monitoring the environment of this high value cargo from beginning point to end point. And they have, as I mentioned, this control tower tracking it so that the routes are optimized to minimize transport costs. But even more importantly, should something happen and there's a lot of stuff getting stolen all the time, especially high value goods, where they can actually drive the insight to action where they're plugged into law enforcement agencies around the world to recover this stuff. So again, that's overhaul. It's our largest position in the fund. We don't have any favorite children. They're a special company doing special things for a lot of big brands.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“And they're doing something remote that we always look for in our investments where it's a there's this supply chain visibility dashboard and platform that others have built. But overhaul has this managed service layer on top of their technology that's a control tower that's really helping their customers. So anyway, we're learning all these things. And they said, hey, we may be in the market to raise some capital to make an acquisition. When we do that, we'll give you a call. And we got this call from Barry, the CEO of Overhaul, late last year. And then we went through our process, dug in, did our work, and actually brought them in to a big corporate partner innovation day we hosted. And so overall saw the value we could bring. They made space for us on this race because there weren't many people invited to the party. So that sourcing to the making the investment, and we're very involved with helping them grow.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“I'll take you through a company called Overhaul. So Overhaul sits on our how things are distributed and delivered pillar. So, if you start with sourcing TED, we identified supply chain visibility early on as a space that we really wanted to go deep on and find an opportunity. Through those efforts, at the time, there's a couple big players that have raised a lot of money, evaluations that we wouldn't have been comfortable at. But we kept at it. One of the co-investors, I'm going to fund one company, gave us a call and said, hey, I got this interesting company. It's in Austin, Texas. They have an operation in Dublin. Really incredible people, leaders. And so when we hear that, we're naturally attracted to it and said, okay, we'd love to take a call. We spent about 10 months getting to know the overhaul team. One of our partners, Chad's classmate from the Naval Academy, Josh Awatt, he spent time going to the Dublin office meeting the team. Some of us went down to Austin to meet the team and just built this relationship. They weren't raising capital. But we really liked what we heard.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“One build to that is our underwriting process playing in this growth stage. It is distinctly different from our view of venture. And a lot of that comes around to the risk-adjusted returns and the profile, looking for three to five X return profile in that similar time period. So investing in technology that's changing commerce is most of our companies are solving big problems with big TAMs. Generally finding their plan to deliver greater than a 5x is not always super challenging. We spend a lot of time, though, on the downside protection that comes in a lot of forms. We've seen structure return in the marketplace, in the form of liquidation preferences. We're excited about that. That gives you more beyond portfolio construction of how we're looking at that return profile as well.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“That'll be the core of our portfolio. And we could go a little earlier or a little later. That's an extension round all the way up to a D round. But the core of the portfolio is going to be that B or C round company. And we're reserving naturally about 20% for follow-ons in the portfolio. So we monitor that very closely and talk about it a lot because every pillar is not going to be equally represented, but they will all be represented in the portfolio.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Inherent diversification as we talk about our pillars. These businesses are all very different and play differently in different cycles. We love the diversification that's inherent in our strategy. We're middle of the fairway for us would be”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Serve them? How can we be differentiated with our backgrounds and expertise that we're bringing to the market? And that's how it's manifesting itself today.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Investment, we really focus on organic growth of helping at the go to market side, whether that be walking them into bigger customers. Often we do that motion prior to investing. We also take our network of human capital around the go-to-market. We've had great success putting chief revenue officers and VP of sales and revenue ops experts into our companies to help with the motions that we think are really important at that gross stage of scaling. And then last is M&A, one of our partners is a longtime investment banker in this space. And we have a boutique M&A shop that's under the e-gateway banner. And if we can help with non-organic growth, we're really excited to do so. That's manifested itself well with one of our portfolio companies recently where we were able to identify their first acquisition and run the process and close on really a non-organic growth opportunity for them. So these are the ways that we think every day. How can we”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Finding great people to help you reach your objectives. We just try to go about it methodically. We're not going to be your everyday call, just a deep trusted relationship that there's expertise and competence around what I need and what I need now. And so what we spent a lot of time focused on is impactful things that we can do that facilitate their growth. We take this as our metric of success every day. And the best reference is our companies and who's in seat. And we feel every day there's always more work to do, but we're doing what we set out to do. The only build I have to that, Ted, is that one of our core principles at the firm is having an abundant mentality, and we try to find that in everybody that we partner with. And so we have 15-ish slots in this fund, and we're seeing so many companies. So we're not scared of missing out on anything.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Think the short answer is doing the work. I think the biggest differentiation is doing what you say you're going to do. I think everybody mentions they'll add value post investment. And I think humans are pretty predictable and a certain percentage of them not doing that work. So I think the biggest thing eight way is trying to live up to our commitment. And we take this super seriously. So where that manifests itself is often doing work prior to making the investment. So it's not going and taking our word for it, but actually seeing those motions and that muscle take place. We bring them in. We have great corporate relationships. We're building across the industries. We mentioned CPG and retail and supply chain. We demonstrate some of that value early on. I think we've been very successful finding human capital around what they need as well. And as you know, being in seat as an operator, there's nothing you value more than”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Think of us to play a strategic capital role in their cap table. We just made our ninth investment over the past two plus years, and we feel really good about how that process has occurred of coming to us.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“We spend a lot of time as a research driven firm going down on each of those pillars into the sector, into the subsector, identifying when companies are emerging at the stage we are best to fit to align ourselves with them. In our first three years, most of them have all been sourced from companies we built relationships with over a year in certain circumstances. And our perfect scenario is doing exactly that. We're a relationship-led. We try every day not to be transactional. We think about what we're calling this e-gateway edge, pre-investment. We try to get to the 10-yard line as a much faster than generalists can. So when we engage with the company even on that first engagement, often they can recognize that we're bringing a level of expertise that's just a little unique to being a thesis driven firm. So that's always a positive. And we build relationships from then on. And our ask is simply to be their first call. So in the next time that they're raising, they”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Any great investment process starts with a great sourcing engine. We're excited about both the quantity and the quality of our deal flow. As it relates to our diligence process, of course it includes all the standard legal technical, commercial, and general deal diligence items. But the core of our diligence process starts and ends with, can we be the most impactful investment partner to the company? We go deep on getting to know the management teams and our leadership styles along with the company cultures. We always look for talent magnets in our companies, ensuring alignment on the CAP table and good governance at the board level is also very important, along with understanding the competitive landscape and talking to a lot of customers and potential customers about the companies. Ultimately, the purpose of our diligence process is to determine if we truly have an edge that can deliver the outcomes that our investors are expecting.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Things are distributed and delivered. So I've just described to you this value chain of commerce. It's pretty linear, pretty intuitive.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“We really, for all the reasons we've talked about, we want to engage differently, we want to be operator led and bring this expertise. That's all led us down, Ted, to go beyond venture. We call it growth capital. So what's that mean? Growth capital to us is finding a company that has a validated product, that has established commercial market fit that's going upstream of call it north of 10 million and reoccurring revenue and has demonstrated an enormous TAM around solving a problem of our thesis is the future of commerce, technology that's enabling that future of commerce. So we think everything from early supply chain, how things are sourced and produced, we think how things are marketed where I've spent most of my career, how things are sold and transacted so much is happening with omnichannel commerce and we're very interested in all the pixes and axes that have to be true to make that world effective and efficient. And then last, our pillar we have”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“First is how things are made. The second is how things are marketed. The third is how things are sold. And the fourth ultimately how things are distributed. When we think of how things are made, we think the technologies driving advanced manufacturing or the sourcing and procurement processes inside of large companies. When we think marketed, we think how new mediums like video commerce platforms are driving consumer engagement and how data is driving measurable outcomes for brands and retailers. When we think sold, we think social commerce, B2B marketplaces, fintech, brand and price protection online, and several more. And when we think distributed, we think first, middle, and last mile supply chain and logistics technologies.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Ted, our investment strategy centers around our belief that the economy looks much more digital in the decades to come. We often say here at the firm that the opportunity is big, it's early, and it's urgent. To be clear, we're more focused on the B2B components of this digital transformation and the growth stage technologies that are enabling this future of commerce. We define commerce across four distinct investment pillars.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Northern Kentucky side of the river. So you fly into northern Kentucky and it serves the Cincinnati region. But our airport CPG, I've been on their board for the last decade, and it's been such an honor to watch our transformation into one of the countries fastest growing cargo airports with the Amazon mega hub for all their air operations, putting their home there over four years ago, and then us being the North American hub for DHL, their second largest operation in the world. Then 100 miles south, Ted, you have UPS's air operations in Louisville. So what we like to say is within 100 miles of Cincinnati region, you have three of the top four physical assets around the country, around the movement of goods. So when we think of firm and not a fund, there's some adjacent stories of why we get up every morning with a level of commitment that we do believe is higher order, why this team's come together to serve. We do believe there's a communal aspect to what we're doing.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“And then you have maybe a third leg, which is a center of supply chain. So it is geographic superiority of reaching a vast majority of the U.S. population within two days. So you've always had our history rooted from the Ohio River in the movement of goods. And it's no different today. I happen to have been on our airport board. Many may not know that our airport sits in.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“That we're investing. So think CPG and retail and supply chain executives. And then last but not least, when we think of firm and not a fund is to reiterate some of the stuff around our location, around the Midwest. We think the Midwest is undercapitalized. We believe in that. We think there's an arbitrage opportunity, as a lot of U.S. industry sits here with not a lot of the capital. And we think most importantly, our region has value to our companies as a nexus of industry that happens to overlay with what we're investing behind. So you have Procter& Gamble, the world's largest consumer products good company here. You have Kroger, one of the countries and probably soon to be largest standalone grocer. If the Albertsons merger were to go through.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“So to encapsulate another commonality is we often talk to BF service, Mike mentioned the Jesuit background. That was the youngest of a big family as well. But to be of service is something we put front and center to our entire stakeholder community. It's the how we do things. And I think when we think of a firm and not just a fund, it all starts with the same thing first on our scorecard when we look at companies to invest in. And that is with people, our team. And so we had brought together a group with diverse backgrounds and experience to serve this higher order calling of how can we serve our stakeholder community in a unique way. Our companies in an impactful way post-investment with their growth, but also our community of investors. Where do we meet them where they're at? We've built a really strategic community. LPs that have a ton of expertise in and around the area.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Take a stab at that. That was one of the big onsets we had an idea around a platform to build something to bring back these elements that we thought were missing in a lot of private capital. And harkens back to its roots, which was to be a partner to our companies and to all of our stakeholders and beyond the check. We also thought we'd form a firm of lasting significance around bringing a combination of operator-led with investors because we thought there's just been some expertise that's been missing and a lot of firms have scaled. And I think we have purposely built a product outside the bell curve intentionally. And we've done it through positive diversification around our portfolio and our thesis that we're investing in. And we believe it has a lot of tailwinds for the next couple decades with regards to our thesis.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“For a long time. Cincinnati is often called the smallest, biggest town. We both came from big families all by different sides of the river, Mike from Cincinnati, I'm from Kentucky. It's funny if you knew us, we're both wired quite differently, but over the years it became evident as our relationship grew that we shared a lot of similar values and beliefs. Specifically, things like gratitude, service, thinking big, always with a purpose to positively impact those around us. Our firm intentionally signs off all of our correspondence and emails to this day with the words with gratitude. And we do this, Ted, because it captures our commitment to serve, and it's really authentically who we are.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“I'm a middle child from a large middle class Catholic family in Cincinnati that was raised in the Jesuit education system where the motto was meant for others. And there's just this community component, the Midwest values, however you want to say it that as I always take the Longview, this is where I wanted to raise my kids and build a career. And so it's just a special place. And I think all the people that we engage with, a lot of our investors today are from the region. But those that aren't, I think they're getting appreciation for all that we have to offer here in the greater Cincinnati area. It's very important to us. And I think through our efforts, we're trying to raise the profile of what's going on here in this corridor of commerce.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“I also have a passion to serve and partner with others, and we get to do that every day with our compan Lastly, I'm not sure if it's the athlete or the middle child of me, but I do love to compete and investing to me as the ultimate form of competition. As much as I do have a passion for investing, I'm even more passionate about building an investment business, and all that comes with starting, growing, and nurturing a culture and a firm here at Gateway.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Can't think of a job that would be more fun and really aligned with how I'm wired. As a naturally curious person, I get to spend time with and From some very interesting and incredible entrepreneurs and leaders, as well as go deep on themes and trends that are shape in the future of the economy to identify themselves. Patterns. It's also fun to be A stand”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“With our portfolio companies helping them grow. We just believe it's more fun and impactful that way. So anyway, hopefully that brings to life my investment background, but also have spent time building firms as well”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Pick my head up, look around and see what clients, the private client world, deserved what they were asking for, listening to the customer. And they were asking for things that I couldn't provide at Maryland. So I ended up leaving to go to the fiduciary model, spent time at an independent firm, and then launched a multifamily office platform with some partners. And we did a lot of very unique investing into funds and direct investments. And so, like you have seen a lot of investment firms over time, the good, the bad, the other. So I think I'm trying to learn from my past and from all the people that I've met to build a special type of firm, as Chad mentioned. And a lot of those elements come into being thesis driven as opposed to a generalist firm, staying focused, being the right size for the team in terms of the size of the fund, and being very much focused on, to Chad's point, a true partner that's on the field in the arena.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“Sure, Ted. Yeah, so I used to wear a uniform too, not in the military service, but he gateways populated with a lot of former athletes, as well as seasoned folks from the private equity space. My background after playing basketball to small division two school in Florida was I always wanted to be an investor, but I wanted to live in Cincinnati. And there weren't many investment firms in Cincinnati in the early 2000s. We talked about brands earlier. I turned to a big brand at the time, Merrill Lynch, thinking it was an investment job and quickly found out it was the ultimate entrepreneurial experience. But I learned a lot about investing there. I learned a lot about how to build a business and build a firm and what a good partnership is and what a not so good partnership is. So I learned a lot that's helped shape what we're trying to build here at eGateway through that process along the way 0809 happened. I really had a chance to.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“And with Mike and I both being from Cincinnati, we shared a strong desire to raise the profile of our region. We were both united from the beginning and the belief that capital will play. Most important role in seizing its future growth opportunities.”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source
“All of our team brought super diverse expertise. It just was all in different arenas. We weren't your traditional emerging manager profile at all, meaning we didn't specifically have a track record of running past funds or the return profiles that accompany them. We did, though, however, share a common vision to build a firm and not simply a fund. We often say that in the words growth capital, too much emphasis has been put on capital. It's become somewhat of a commodity. Our interest, on the other hand, was to focus on the word growth. We thought there was a lack of operator expertise and true knowledge around growth and our desire was to help these companies in an impactful way reach their revenue goals. So Mike and I, along with three other partners in early 21, Form V Gateway Capital”
2024-01-25 · Capital Allocators · Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364) · IDENTIFIED FROM THE TRANSCRIPT · source