Nov 20, 2024
"You can't get too high, can't get too low. You just have to just show up every day and be who you are. And usually, that works out ."
I recently sat down with Shane Kim, founder of Baleon Capital and longtime Fingercheck board member, to discuss his journey from analyst to managing partner, founding Baleon Capital, the challenges of starting a growth equity firm, and the importance of empathy in founder-investor relationships.
The Baleon Capital Story
Baleon Capital's mission is to partner with exceptional companies and guide them throughout their growth journey - they're more than investors, they're partners. With a focus on innovation and integrity, Baleon empowers healthcare and tech-enabled business services to realize their full potential and create lasting value.
Shane's journey to launching Baleon began at Camden Partners in May of 1999, where over the course of seventeen years—which is quite a feat in our business!—Shane grew from Analyst to Managing Partner. Across five funds, he advised many early-stage companies and witnessed their teams' daily resilience, sparking his desire to build Baleon and continue helping early growth-stage businesses.
Early Lessons
At the age of 39, Shane got the itch to start his own firm. "I just wanted to own everything that I was doing going forward. I wanted to be all in." Surrounded by mentors and almost two decades of experience, he took the leap.
Shane's first big lesson? "It's all the little things that lead to the big things." He explains, "If you try to go and bite off the big goal that you want, you'll never close that big deal, or you'll never close that LP." Success requires patience.
His advice? "Anytime you're building something, you need to surround yourself with people that actually do things and actually execute. Talk is really cheap." This lesson proved foundational to one of today's Baleon cornerstones: it's all about relationships. It's all about people.
"Who you will work with in the future, who will be your investors, who will be your future board members—a lot of them will be those people that you’ve been through challenges with," Shane says. The people, on both sides of the investment, are the foundation of long-term success.
Shane's Journey to Fingercheck
Shane sits on the board of our most recent investment, Fingercheck. His relationship with founder Joel Kohn is a prime example of what founder and board member relations should be. Their bond is admirable - you would think they've been friends for a decade.
Shane's connection to Joel's family opened the door to their now-friendship, a relationship rooted in trust and (above all else) empathy. Shane's background in helping early growth-stage businesses allowed him to empathize with Joel. Shane recalls, "[Joel] didn't have prior experience in a larger company, or any company, really. He was literally doing this for the first time."
Shane wasn't shy to the fact that, "there's a bit of reticence or lack of comfort with working with private equity." He was aware of the daunting undertone and worked alongside Joel to "professionalize" the business at a comfortable pace, deploying disciplines that, over time, shaped into company-wide best practices.
Shane never lost sight of his true north: "[Joel] has turned into a great friend, and I certainly consider him an advisor to me. It's a great relationship. My goal is for him to rise, to succeed."
Empathy Isn't Optional
Empathy may not be the first-word people think of when they hear "private equity," but for Shane, it’s central to his approach. He knows that understanding a founder’s perspective builds trust and creates an environment where open communication and alignment co-exist.
By breaking down the investor-CEO relationship barrier, Shane proves to founders that his goal isn't to control them, but to support their wins.
Balancing AI with a Human Touch
Shane and I also discussed the impact of AI on private equity and its potential to drive value. For Shane, today’s AI boom reminds him of the dot-com era: initial excitement followed by real-world applications. "Anyone can use AI, but what will you use it for to create value?" he asks. Shane believes AI will streamline repetitive tasks, especially in sectors like healthcare, but he doesn’t see it replacing human relationships.
"In fields where empathy and judgment are crucial, maintaining the human touch is essential," he added. This perspective aligns with our own: while technology can improve efficiency, it’s the human interactions that drive real change and create lasting value.
Key Takeaways for Founders and Investors
My conversation with Shane underscored three key insights for anyone building or investing in growth-stage companies:
- Empathy Builds Stronger Partnerships
Shane believes understanding a founder’s perspective and fostering open communication—especially during challenging times—builds trust and resilience. "The role of being the CEO, whether you’re the founder or you’re hired into the role, it’s a very lonely position." Recognizing this reality can make a big difference in building trust with founder. - Adaptability Drives Resilience
Shane’s experience with economic downturns has taught him that staying agile and focusing on the long term is critical. "Just keep your head down. Show up every day and be who you are, and usually that works out," he advises. Resilient leaders are better prepared to handle market cycles and build sustainable companies. - People Come First in Growth Equity
At Baleon, Shane prioritizes a growth strategy that centers on people, ensuring founders feel supported and aligned with their board for long-term success. "All of this is about relationships… a lot of what you’ll do in the future will be with those you’ve been through challenges with," he said.
For founders and investors, the takeaway is clear: growth is about more than numbers. Tune in to our full conversation using the link below!
