Let's dive into robust discussions with changemakers reshaping the future of entrepreneurs within Black and Brown communities. Today’s guest is Eduardo Zaldivar, Managing Partner at Mosaic ETA, an investment firm focused on empowering underrepresented individuals with the Entrepreneurship Through Acquisition model. Eduardo begins by explaining how ETA works and how it differs from private equity, highlighting the unique opportunities it presents. He discusses the importance of selecting the right person to back, emphasizing the role of grit and resilience for CEOs. He also delves into the success rates of startups versus ETAs and the risks involved in acquiring a business. In the resource roundup segment, Eduardo provides valuable tools and names influential voices in the industry.

IN THIS EPISODE:

(00:00) Introduction

(01:24) Eduardo is introduced, and he explains what an ETA is and how it works

(04:53) The difference between private equity and an ETA

(08:33) Eduardo speaks to knowing if a person is ready to be the CEO of a business, the importance of backing the right person, and how “grit” is essential

(12:50) Eduardo shares what inspired him to co-found Mosaic and what type of person should pursue an ETA

(17:47) Percentages of startups versus ETAs that are successful and the risk factor of buying a bad business

(22:42) Eduardo answers questions in the resource roundup segment, and he mentions searchfunder.com, Jim Sharp at Harvard Business School, AJ Wasserstein, professor of Management at Yale and Peter Kelly, an investor at Mosaic, the Women’s Search Network, the Black Search Network, Hispanic Search Network, Acquiring Minds Podcast and Think Like an Owner Podcast

(29:38) Eduardo answers questions in the “Off the Cuff’ segment

(38:04) Stephen and Kimberly share impactful experiences

TAKEAWAYS:

• Buying a business from someone is like acquiring someone’s baby. They have birthed and grown the company; when you acquire it, you must continue to grow and nurture it. It is a full-time job, and you don’t get rich overnight
• If you are a black woman who made it to Harvard Business School and worked at an incredible firm, you are often the only person of color in the room. So grit is essential
• Mentorship is a significant component of the ETA model, and it can be challenging for minorities to get the proper mentorship they need. Mosaic provides that mentorship component

DO GOOD X - LinkedIn

Eduardo Zaldivar - LinkedIn

Article in Forbes on ETA

Mosaic ETA - Website

Search Fund - Website

Acquiring Minds - Podcast

BIO:

Eduardo Zaldivar is a Managing Partner at Mosaic ETA, a new investment firm whose mission is to empower underrepresented communities through the search fund model, also known as entrepreneurship-through-acquisition (ETA).

Eduardo's greatest inspiration is his mother, a successful small-business entrepreneur, a first-generation immigrant with only a middle school education. Before co-founding Mosaic, he was a private equity investor and startup operator. Eduardo received his MBA from Stanford, MPA from Harvard, and Bachelors from Texas A&M University. He resides in Dallas, Texas, and enjoys hosting community-building events and volunteering at his local church.