Podcast Summary: Young and Profiting (YAP) Classic with Morgan Devon

Podcast Information:

• Title: Young and Profiting (YAP) with Hala Taha
• Host: Hala Taha | YAP Media Network
• Episode: YAPClassic: Morgan DeBaun, Your Startup Survival Kit for VC Funding and Leadership

Introduction

In this compelling episode of Young and Profiting (YAP), host Hala Taha sits down with Morgan DeBaun, the inspiring founder and CEO of Blavity Incorporated. Morgan shares her transformative journey from a dissatisfied tech employee in Silicon Valley to leading a groundbreaking digital media company focused on Black culture and millennials. This episode delves deep into the challenges of founding a startup, securing venture capital (VC) funding, fostering effective leadership, and championing diversity within the corporate landscape.

Morgan DeBaun’s Early Life and Influences [03:24 - 08:31]

Morgan begins by reflecting on her upbringing in St. Louis, Missouri, highlighting the strong work ethic instilled by her Midwest upbringing. She contrasts the traditional American belief that "hard work pays off" with her experiences in Silicon Valley, where she recognized that “it is not just about brute force” but also about access and opportunity ([04:40]).

Morgan discusses the concept of code-switching, detailing how navigating diverse educational environments—from a Catholic all-girls school to a predominantly white institution like Washington University in St. Louis—shaped her resilience and flexibility. This adaptability became crucial as she transitioned into different professional settings, allowing her to build meaningful connections across varied groups ([05:02]).

Transition to Silicon Valley and Community Challenges [08:31 - 12:27]

Graduating at the top of her class, Morgan recounts her unconventional path to Silicon Valley, a region not traditionally accessible to many, especially Black women. Her move to work at Intuit in the Bay Area introduced her to a community driven by ambition and impact but also revealed a lack of diversity and cultural awareness. Morgan identifies friction points where her perspectives on inclusivity did not align with the predominantly white and Asian male environment, leading her to question her role within the corporate structure ([10:45]).

The pivotal moment came in 2015 after the tragic death of Michael Brown in St. Louis, which deeply affected Morgan and catalyzed her decision to fully commit to Blavity. She recognized the urgent need for a platform that supports underrepresented communities by facilitating accurate information distribution and resource allocation during critical social movements ([12:36]).

Founding and Bootstrapping Blavity [14:50 - 23:17]

Morgan details the early days of Blavity, which began as an email newsletter aimed at empowering Black voices. Operating on a shoestring budget, she managed finances meticulously—saving every penny and taking on side hustles to fund the fledgling company. Her dedication culminated in launching Blavity’s first website in July 2014 and officially quitting her job at Intuit in October 2014 to focus entirely on the venture ([23:07]).

She emphasizes the importance of using cost-effective tools like email newsletters to reach audiences directly, bypassing the unpredictable algorithms of social media platforms. Morgan candidly shares her initial, albeit legally questionable, method of scraping emails to build her subscriber base—a practice she advises against today ([15:34]).

Navigating Fundraising and Venture Capital [25:07 - 35:28]

Transitioning from a bootstrapped model, Morgan explores the complexities of fundraising. She outlines critical considerations such as determining the necessity of VC funding, understanding the implications of equity dilution, and assessing whether one's business model is attractive to investors. Her first attempts to secure funding from all-Black investors were met with rejection, highlighting the scarcity of such opportunities at the time ([30:03]).

Discovering social impact investors became a turning point. These investors prioritize both financial returns and societal benefits, aligning with Morgan’s vision for Blavity. She successfully raised her initial $500,000 through this avenue, emphasizing the importance of aligning with investors who share the company’s mission and values ([30:16]).

Morgan discusses the often steep equity demands of VCs, expressing her reluctance to continue diluting ownership. She has raised $13 million over six years but has ceased fundraising to protect her and her employees’ equity stakes, ensuring sustained ownership and control ([33:16]).

Building a Diverse and Inclusive Company Culture [38:32 - 43:50]

A cornerstone of Blavity’s success lies in its commitment to diversity and inclusion. Morgan advocates for hiring a truly diverse team—not just in terms of race but also encompassing varied interests, religions, and political backgrounds. She stresses that “diverse groups come up with better answers and diverse groups come up with better profits” ([38:43]).

Retention strategies include equitable salary bands with stock options, transparent feedback mechanisms, and regular anonymous surveys to gauge employee satisfaction and uncover underlying issues. Morgan highlights the positive ripple effects of inclusive practices, noting that initiatives benefiting marginalized groups often have broader organizational benefits ([42:20]).

Morgan also emphasizes the importance of leadership diversity, ensuring that decision-makers reflect the company’s diverse workforce. This alignment fosters a more inclusive environment where all employees feel valued and heard ([40:40]).

Leadership Challenges and Personal Growth [48:58 - 55:37]

Managing a rapidly growing company posed significant leadership challenges for Morgan. She candidly shares her struggles with addressing issues directly, confronting biases, and maintaining personal well-being amidst intense professional demands. To overcome these hurdles, Morgan invested in continuous personal development through classes, executive coaching, and building a trusted advisory board comprised of long-term allies rather than unattainable industry giants ([50:32]).

She underscores the importance of having a formal board, explaining that it brings structure and accountability. Her board, primarily composed of major investors, plays a crucial role in strategic decision-making, such as acquisitions and executive appointments. Morgan recommends establishing even an informal advisory board to guide leadership practices and ensure sustained growth and equity ([53:32]).

Work-Life Balance and Personal Sacrifices [55:37 - 60:20]

The relentless pace of entrepreneurship took a toll on Morgan’s personal life, straining relationships and mental health. She recounts the sacrifices made during the formative years of Blavity, including long work hours and emotional exhaustion. Recognizing the unsustainability of this lifestyle, Morgan made decisive changes—relocating to Nashville to foster a healthier environment, reconnecting with family, and prioritizing personal well-being over relentless hustle ([56:04]).

Morgan advocates for intentional behavior shifts to achieve a balanced life, emphasizing that “the key to profiting in life is to be happy and joyful and in peace in my everyday” ([60:20]). Her journey highlights the necessity of balancing professional ambitions with personal fulfillment to sustain long-term success and happiness.

Advice for Aspiring Entrepreneurs [59:48 - 60:20]

Morgan imparts valuable advice to budding entrepreneurs:

1. Invest in Yourself: Whether through education, financial investments, or skill development, personal growth is paramount for future profitability.
2. Pursue Happiness and Satisfaction: Focus on achieving daily contentment and peace, rather than constantly chasing elusive goals, to ensure a fulfilling and profitable life.

Conclusion and Future Endeavors

As the conversation wraps up, Morgan teases her upcoming book scheduled for release next fall, aimed at helping ambitious individuals define and achieve their personal visions of success. She also promotes her podcast, The Journey Podcast, where she continues to share her experiences and insights ([58:36]).

Notable Quotes:

1. “It is not just about brute force.” ([04:40] Morgan DeBaun)
2. “The hustle culture has messed up our perception of what's possible.” ([04:40] Morgan DeBaun)
3. “Diverse groups come up with better answers and diverse groups come up with better profits.” ([38:43] Morgan DeBaun)
4. “The key to profiting in life is to be happy and joyful and in peace in my everyday.” ([60:20] Morgan DeBaun)

Where to Learn More:

• Morgan DeBaun’s Podcast: The Journey Podcast
• Social Media:
  • TikTok: Morgan on TikTok
  • Instagram: Morgan on Instagram

For further details and resources discussed in this episode, visit the show notes on the YAP Media Network website.

Final Thoughts

Morgan DeBaun’s conversation on YAPClassic offers a rich tapestry of experiences and lessons pivotal for any entrepreneur navigating the complex terrains of startup growth, funding, and building an inclusive company culture. Her journey underscores the importance of resilience, intentional leadership, and the unwavering pursuit of both professional and personal fulfillment.