Ignite Startups: Pioneering Revenue-Based Financing in Real Estate with Ryan Mapes of Release | Ep51

Ignite: Conversations on Startups, Venture Capital, Tech, Future, and Society

In this episode of the Ignite Podcast, Brian Bell engages in a comprehensive dialogue with Ryan Mapes, CEO and co-founder of Release, a finance and banking platform tailored for multifamily owners. The conversation begins with an introduction to Mapes' journey into the multifamily investment and financing world, catalyzed by his own experiences and the gaps he identified in the market for accessible working capital and bespoke banking services for small to medium-sized multifamily property owners. Mapes shares insights into the origins of Release, pinpointing a personal challenge he faced while looking to expand his real estate portfolio. The narrative unfolds, revealing how a mix of personal investment experiences and professional expertise in growth for venture-backed startups led to the inception of Release. The discussion illuminates the unique challenges multifamily property owners face, particularly around acquiring working capital for expansions or renovations, and how Release’s innovative approach to revenue-based financing offers a novel solution. The podcast delves into the mechanics and benefits of revenue-based financing, contrasting it with traditional financing methods. Mapes explains the underwriting process, highlighting the emphasis on the multifamily owner's portfolio performance over personal credit. This segment provides listeners with a deep dive into how Release operates, including the importance of insurance in mitigating risks associated with property investments. Further exploration into the fintech landscape offers listeners a broader context of the challenges and opportunities within the sector. Mapes and Bell discuss the evolving nature of fintech startups, the impact of regulatory environments, and the strategic partnerships that empower companies like Release to innovate within the heavily regulated banking industry. In conclusion, the episode transitions into a reflection on entrepreneurship and investment, where Mapes shares his personal journey and insights into angel investing, emphasizing the importance of deal flow, investment strategy, and the realities of startup financing. The dialogue rounds off with Mapes providing advice for aspiring entrepreneurs and investors, underscoring the significance of resilience, strategic planning, and the relentless pursuit of innovation in the face of challenges. Chapters 00:00 Introduction and Background 00:41 Discovering the Need for Finance and Banking Services for Multifamily Owners 03:09 The Absence of Revenue-Based Financing in Multifamily 04:34 Terms and Underwriting for Revenue-Based Financing 06:16 Differentiating Fintech Companies from Banks 08:48 Partnerships with Banks and Fintech Companies 11:08 The Cycle of Fintech and the Resurgence of Interest 13:54 Partnership with Visa for Charge Card Solution 15:52 Transition from Growth to Product and Entrepreneurship 28:36 Angel Investing and Advice for First-Time Investors 30:32 Joining Angel Squad and the Importance of Community 31:27 Developing an Edge as an Angel Investor 32:49 Managing Risk and Making Investments 34:10 The Vision for Release in the Future 36:16 Ryan's Experience as a Pilot 37:13 Favorite City Flown to as a Pilot 37:58 The Impact of AI and the Evolution of the Startup Ecosystem 40:22 The Most Influential Book 43:41 Productivity Hack: Blocking Off Calendar 45:02 Advice for New Angel Investors: Focus and Hone Your Investment Decisions 51:05 Pros and Cons of Joining a Syndicate 52:09 Favorite Leisure Activity: Brazilian Jiu-Jitsu