MIAMI, Jan. 26, 2016 /PRNewswire/ -- David Schottenstein along with two other outside partners, successful serial entrepreneurs themselves, are pleased to announce the formation of their new investment fund, DSCN Capital. This operation is funded solely with their own personal wealth and they do not foresee themselves having other partners. This fund is meant to provide not only capital to the startups they partner with, but also to focus on providing additional services and benefits that can only be accessed through their personal networks at little to no additional cost. The list of value add services is extensive but includes key items like expert marketing assistance, athlete sponsorships and endorsements, recruiting services, heavily discounted shipping and logistics, access to a wide array of national retailers and many more. Additionally, the fund has created an innovative inventory finance program for their consumer product portfolio companies. Says Kevin Lavelle, CEO of one of the portfolio companies, Mizzen+Main, a high performance men's dress shirt company, "DSCN has opened a lot of doors. These have been valuable additions helping fuel Mizzen+Main's explosive growth."
Mr. Schottenstein, who will be running the fund day to day, specifically looks to focus on early stage start-ups. All three partners have launched their own multiple startups from scratch and are never far removed from the experiences that come along with that. They can personally relate to the all-consuming passion of CEOs who want to build something lasting and the challenges and struggles they often face. It is this same passion that now drives DSCN Capital to see others succeed. Says Mr. Schottenstein, "When I started my first company there were challenges and hurdles that came up regularly, many of which I could have used a helping hand with. The fact that I overcame those challenges is nothing short of miraculous. We like helping our portfolio companies in any way we possibly can in every aspect imaginable, and when our guys hit hurdles and challenges they know that we are there for them."
Mr. Schottenstein's ability to address these challenges for others is one of the reasons why Ben Nash, founder of PCS Wireless, decided to partner with David in the first place. "The reason I work with David is because he has tenacity, is relentless and with every small success becomes more aggressive. David takes on every investment as if it is his only one and is a true value partner. Plus, he doesn't deviate from his strong morals and ethics. The fact that he is philanthropic and actually believes in the greater good makes him so much more pleasant to be around." Another participant in the trio of co-founders, Eli Nash, feels similarly. "I partnered with David because of his insane drive to make everyone around him better. He will leave no stone unturned to bring value to the companies he partners with. He builds strong relationships and knows how and when to leverage them to bring more value."
At launch, the fund has invested in over 19 startups in industries ranging from food to apparel to hardware with six more companies on deck to close. Some of the portfolio companies include Hillflint, an upscale collegiate apparel company, Skylock, a solar-powered wireless bicycle lock company, Vugo, a start-up that allows Uber drivers to turn their tablets into advertising vehicles for additional revenue and PopSlate, a tech company creating second screens for mobile devices through their innovative and patented cell phone cases. One of the newest companies to work with DSCN Capital is OneWheel, a revolutionary self-balancing electric skateboard manufacturer.
The fund is constantly evaluating new opportunities that come their way. The most important variables they consider before moving forward include the strength of the management team and their ability to add value to the businesses. According to Ze Ferriera, CEO of Mellow, a portfolio company manufacturing smart sous-vide machines, "As a first-time entrepreneur it has been great to work with David and his team. We get to consult with an experienced CEO on strategic decisions and have the tactical support of industry experts we could never afford on our own when we were in our earlier stages." To further illustrate this point, their portfolio companies that have gone on to raise a second round are seeing 14x increases from when DSCN entered.
About DSCN Capital
DSCN Capital was formed in 2015 with three investors and co-founders, David Schottenstein, Ben Nash and Eli Nash. The fund focuses exclusively on early stage investment opportunities. To learn more about DSCN Capital and its team, please visit http://www.dscncapital.com.
SOURCE DSCN Capital