Nex Cubed Founder Spotlight: Alphaa.io
Since its inception, Nex Cubed has been investing in and accelerating diverse founders who are solving problems that matter by providing early-stage capital, resources, community, and hands-on support based on the founder’s priorities. To date, Nex Cubed has invested in over 80 portfolio companies that have an aggregate value of over a billion dollars, with nearly 65% being led by female or minority founders.
Over the next several weeks, we’ll be showcasing the diverse experiences and perspectives of founders who have participated in our accelerator through the Nex Cubed Founder Spotlight Series.
We hope these stories, ideas, and insights inspire and motivate fellow entrepreneurs.
Up first is Manuela Seve, Founder & CEO of Alphaa.io and named one of the top 100 influential Latinas/Latinos in the world by Bloomberg.
Tell us a little bit about yourself. What inspired you to start Alphaa.io and embark on this entrepreneurial journey?
I grew up as a bit of a rebel. In Latin America, girls aren’t brought up with dreams to be bosses but instead to be wives. So I tried being both a wife and a boss in my first life in finance, but my growth was always hampered by the hidden biases in the industry, especially in Brazil. One day I looked in the mirror at my “perfect” life: I got married at 21, and at the time I worked at one of the most important funds in Latin America, but I felt so incomplete. I just knew I had so much more to give and that my dharma was to bring opportunity to women and minorities so that they could aspire to grow up to be bosses, not wives. So one day, I quit my job, left my husband, and started a company with the objective of leaving this world a little bit better. Shortly after I met my first investor; we agreed that in order to achieve my goals, I would have to move abroad, where there is more opportunity for diverse voices. There is still a lot more to be done in terms of opportunities for diverse founders, but I am happy that my story can be a starting point and send a message to the next generation of women that it is possible to start your own business and be your own boss.
What problem is your startup solving and what sets Alphaa.io apart from competitors in the industry?
Alphaa.io offers fan engagement solutions for the brands of the future. We solve for authenticity, resale, and community engagement across industries. We are like Salesforce for web3 with a complete tech stack and uncanny ease of use. All our white labels include custodial wallets that are created in one click via email or phone number.
Alphaa.io is a Loyalty program that provides verified proof of who your best customers & fans are with tools to give special access online or offline.
What challenges did you face during the early stages of building Alphaa.io and how did you overcome them?
When we started the company, we set off to raise an initial round of funding and we quickly found an angel that immediately understood what we wished to accomplish. We were raising $500,000 at the time, but he thought that wasn’t enough capital so he agreed to fund us for $1 million. Needless to say, we were ecstatic. Part of our deal was that we’d have to relocate to the most expensive city in the world, New York City. We came in the summer to meet him and finalize the deal. However, he delayed his trip several times, forcing us to move between hotels, friends’ apartments, etc.
We moved six times until we received the first wire transfer, which to our surprise was only $20,000. We had planned and budgeted for $1 million, but we only received a total of $200,000 over the course of a year. Despite all of this, we didn’t give up. We kept going, found more funding, and were able to move on without him. Looking back, it was a valuable learning experience about perseverance and believing in your vision.
Can you discuss any significant pivots or strategic decisions that have had a major impact on the company's trajectory?
At the beginning of the pandemic one of our investors gave us a call and told us to prepare for the world ending, so we created a doomsday plan, which took into consideration a scenario of 0 revenue for 6 months (the opposite ended up happening, we grew 220% in 2020). We then factored in how much money we had in the bank and called in the whole team to announce that we would be making cuts to all salaries including the executive team, we asked for feedback and everyone agreed this was the right course of action.
During uncertain times, it's important to be transparent with your team and let them know sacrifice will be made by all including the executive team. The phrase “lead by example” really says it all. We’ve always crowdsourced our problems and never blame anyone for solutions that don’t work. We know a lot of our plans will fail and that moving forward quickly is essential, but try to debrief and understand what actually happened.
Can you discuss any ethical or social responsibility initiatives that Alphaa.io is actively engaged in?
I am proud to say that Alphaa.io has a majority-minority and female team. We run campaigns every year and are constantly bringing more opportunities to light for minorities and women. We recently launched our wildly successful interactive game Crypto Bros that serves as a modern-day parody of the lack of diversity in web. We are now working on a Pride Bros scavenger hunt that highlights women, LGBTQ+, and POC-owned businesses in Los Angeles during LA Tech Week and Pride.
I also hold community events and educational programming for women in tech — all from my home headquarters in Venice Beach. Our annual Female Founders and Funders event during LA Tech Week this June connected hundreds of women-run VCs, entrepreneurs, and startups, with thousands applying to join the waitlist.
How have your background and previous experiences influenced your approach as a founder?
My background is in finance but I grew up surrounded by art, with a family of artists and art professionals. During my time in finance, I was an equity analyst with a focus on real estate and commodities. One day, I picked up Marc Rich’s bio, “King of Oil” and realized that there were so many similarities between the oil market in the ’60s and the art market. At that point, I knew that I had to build a tool to democratize information. Through our art and real estate licensing business Alpha’a Inc, I learned about asset ownership and transfer, and built a certification protocol fitting for our own needs.
I later discovered that there was more to our mission. The arts were a great jumping-off point and taught me how to approach industries from fashion to hospitality to sports. We’ve been working with blockchain since 2017 and we officially launched Alphaa.io this time last year!
What led you to become interested in Nex Cubed and what resources were most helpful to you in launching your startup?
We joined the program very early and pivoted so many times! We found Nex Cubed through another founder at the time, and after chatting with the team we knew that they could be instrumental in shaping our path forward. Scripting pitches and then building the deck around your narrative were a transformational way of preparing for demos. This was a key lesson during the process with Nex Cubed.
What advice do you have for other diverse, female, Latin, etc. entrepreneurs?
The numbers speak for themselves, diverse founders have to work a lot harder and show a ton more traction before they can raise a single dollar. But despite women only receiving 2% of VC dollars (Latinx drops to close to 0.2%) we produce 12% of unicorns - use your scrappiness to your advantage and learn to live with rejection since the odds are not in our favor when it comes to fundraising. But our biggest allies are usually around us in local communities!
I believe in women supporting women. We need more unity within the female community and I feel like a great way to start is within your sphere of influence. Offering a “give” and an “ask” is super easy and it’s something I’ve been practicing. Find a woman in your world and do the same, then find another one and another one. Think of the things we can all achieve together.
What advice would you give to other founders who are considering entrepreneurship?
A fresh outlook is always helpful, I just finished a program at Stanford’s GSB for Latino entrepreneurs, and having all of those new eyes on my business, especially during these complicated times, was truly a game-changer. We ended up bringing in one of the program’s mentors as a full-time advisor and he is overseeing the re-design of the new platform which will automate the direct sales model and increase convergence while decreasing the sales cycle.
As a founder that sells, one of my investors jokes that I could sell ice to an Eskimo. As for advice, I’d say listen to your clients and understand how a product is accepted, or if any changes need to be made. Also, move quickly, be proactive, and stay on top of your team. In Brazil, we have a saying: “The owner’s eyes make the cattle get fatter.”
Where can readers/listeners/viewers learn more about your business?
Instagram: @alphaaio
Twitter: @motherofalphaa
LinkedIn: @alphaa-io
Facebook: @alphaainc
YouTube: @alphaaio5348
Website: https://www.alphaa.io/