148: Regenpreneur Story - The Soil & The Ledger with MAD Capital

Podcast Episode: The Soil & The Ledger: Seeding a Regenerative Future with MAD Capital

Description:

The path of a regenerative entrepreneur is often a lonely one, fraught with financial hurdles and a system not built to support the deep, patient work of healing our planet. In this episode of the Seeds of Tao podcast, we sit down with Brandon Welch and Philip Taylor, the founders of Mad Capital, a company on a mission to finance the regenerative revolution in agriculture.

Join us for a candid conversation about their journey, from the philosophical underpinnings of their work to the nitty-gritty of creating financial products that mimic the cycles of nature. We explore the "valley of death" that many transitioning farmers face and how Mad Capital is building a bridge to a more profitable and ecologically sound future. This episode is a must-listen for any "regenpreneur" who has ever felt the struggle of aligning their values with their balance sheet.

Show Notes:

• Introduction to Mad Capital: Learn about their mission to create a regenerative organic revolution in agriculture by providing right-fit capital for farmers. (0:24:32)
• The "Why" Behind the Work: Brandon and Philip share what gets them excited to bridge the gap between Wall Street and land stewards. (0:18:27)
• The Entrepreneurial Journey: Hear the origin story of Mad Capital, born from a "dark night of the soul" and a deep desire to see tangible change in the world. (0:32:07)
• Overcoming the "Valley of Death": A discussion on the financial challenges farmers face when transitioning to regenerative practices and how Mad Capital's flexible and patient financing is making a difference. (0:39:53)
• The Orbit, Moon, and Star Shot: Mad Capital's vision for the future, from reaching profitability to financing 5 million acres of regenerative farmland by 2032. (0:59:52)
• The Importance of Self-Care for Entrepreneurs: A candid conversation about avoiding burnout and the devotional routines that keep the Mad Capital team grounded. (0:53:16)
• A Message of Hope and Perseverance: Brandon and Phillip's advice for fellow regenerative entrepreneurs on the importance of patience, focus, and building a community of "true believers." (1:10:52)

Resource Links:

• Mad Capital Website: madcapital.com
• Mad Agriculture Website: madagriculture.org
• Follow Mad Capital on LinkedIn: https://www.linkedin.com/company/mad-capital-pbc/
• Follow Mad Agriculture on Instagram: instagram.com/madagriculture

Highlighted Promotion: Join the regenBEE Community

Feeling inspired by the conversation with Mad Capital? Do you have your own story of regenerative entrepreneurship to share? You don't have to go it alone. The Regenerative Business Economies Ecosystem (regenBEE) is an open and free community where impact entrepreneurs, funders, and allies come together to support one another and build the regenerative economies of the future.

In the regenBEE, you'll find:

• A network of peers who understand the unique challenges and triumphs of your work.
• Opportunities to connect with potential funders and collaborators.
• A platform to share your story and learn from the experiences of others.

Join us as we collectively move beyond sustainability and into our regenerative future. It all starts with community.

Join the regenBEE Community Today!

Blog Post: The Soil & The Ledger: Seeding a Regenerative Future with Mad Capital

The modern food system, for all its perceived efficiency, rests on a foundation of extraction. It depletes our soils, pollutes our waterways, and often leaves the very stewards of our land—the farmers—in a precarious financial state. But a new story is taking root, one of regeneration, of rebuilding, of working in harmony with nature's ancient rhythms. This is the story of regenerative agriculture, and at its heart lies a critical question: how do we finance a revolution?

This week on the Seeds of Tao podcast, we had the immense pleasure of sitting down with Brandon Welch and Phillip Taylor, the pioneering partners behind Mad Capital. Their work is a testament to the power of aligning finance with the principles of regeneration, and their journey offers invaluable insights for every entrepreneur striving to build a better world.

The Landscape of Regenerative Finance: A Field in Transition

For decades, agricultural finance has been a one-size-fits-all model, designed for the predictable, input-heavy world of conventional farming. This system, with its rigid repayment schedules and aversion to perceived risk, is ill-equipped to support the transition to regenerative agriculture. This transition is not a simple switch of inputs; it's a fundamental shift in mindset and practice, a multi-year journey of rebuilding soil health, fostering biodiversity, and weaning the land off of chemical dependencies.

This period of transition, often referred to as the "valley of death," presents a significant financial hurdle. Farmers often experience a temporary dip in yields as the soil begins to heal, yet they are not yet able to command the premium prices of certified organic produce. They are investing in the long-term health of their land, but the traditional financial system is structured for short-term gains.

This is the gap that a new wave of visionary funders is seeking to fill. The landscape of regenerative agriculture funding is a dynamic and evolving ecosystem, comprised of a blend of philanthropic grants, impact-first investors, and innovative financial institutions. We see a rise in:

• Blended Finance Models: These models, like those utilized by Mad Capital, layer different types of capital to de-risk investments. A "first-loss" pool of capital, often from philanthropic sources, can absorb initial losses, making the investment more attractive to traditional investors. This creates a bridge for farmers, allowing them to access the capital they need to navigate the transition.
• Outcome-Based Financing: Instead of focusing solely on the financial return, these models tie payments to the achievement of specific ecological outcomes, such as increased soil carbon or improved water quality. This incentivizes farmers to adopt practices that have a demonstrable positive impact on the environment.
• Community-Supported Models: Platforms that allow individuals to invest directly in farms are gaining traction, creating a more direct and personal connection between consumers and the source of their food.
• Government Initiatives: While still in its early stages, there is a growing recognition at the policy level of the importance of supporting regenerative agriculture. Programs that provide grants and technical assistance for transitioning farmers are a crucial piece of the puzzle.

However, challenges remain. A lack of standardized metrics for what constitutes "regenerative," coupled with the inherent complexities of biological systems, can make it difficult for traditional investors to assess risk and return. This is where the work of organizations like Mad Capital is so critical.

Mad Capital: Where the Soil Meets the Ledger

Mad Capital is more than just a lender; they are, in their own words, "pioneering partners that design paths to regenerative entrepreneurship." Their approach is rooted in a deep understanding of the ecological and financial realities of regenerative agriculture. As Phillip Taylor shared in the podcast, their work is a "philosophical and psycho-emotional challenge of re-imagining money and capital."

They are not simply tweaking existing financial products; they are creating new ones that are "better tuned to the business model of organic farmers." This means offering patient and flexible financing with features like:

• Interest-only periods: This allows farmers to focus on rebuilding the health of their land without the immediate pressure of principal repayments.
• Deferred payments: Aligning repayment schedules with the cash flow of the farm, recognizing that the returns on regenerative practices may not be immediate.
• Holistic underwriting: Looking beyond traditional credit scores to assess the long-term viability of the farm, taking into account the ecological and social capital being built.

The impact of this approach is tangible. As Brandon Welch noted, they are seeing "the land is healthier, the soil is richer...the farmer's happier." This is the triple bottom line in action, where ecological health, social well-being, and financial profitability are not seen as competing interests, but as interconnected aspects of a thriving system.

The Entrepreneur's Journey: Grit, Grace, and the Orbit Shot

The story of Mad Capital is also the story of two entrepreneurs who have navigated the often-turbulent waters of building a purpose-driven business. Their journey, as Phillip candidly shared, involved a "dark night of the soul," a period of questioning and uncertainty that ultimately led to a deeper sense of purpose.

This is a narrative that will resonate with many regenerative entrepreneurs. The path is rarely linear, and it requires an immense amount of what they call "grit" and "tenacity." It's the willingness to "plunge into the unknown" and the understanding that, as Brandon put it, "it's either going to be a one or a zero."

But their story is also one of hope and the importance of finding balance. They spoke eloquently about the need for self-care, for those "devotional routines" that keep them grounded and prevent burnout. In a movement that can sometimes feel like it carries the weight of the world, this is a vital message. As Phillip so beautifully articulated, self-care is not selfish; "it's the way that we can show up fully in the world."

Their vision for the future is both ambitious and inspiring. Their "orbit shot" is to reach profitability, to create a resilient and self-sustaining organization. Their "moon shot" is to finance 5 million acres of regenerative farmland by 2032, a goal that could represent a tipping point in the transition to a more regenerative food system. And their "star shot"? To see this movement go global, to bring their model of regenerative finance to communities around the world.

A Call to Action for the Regenerative Movement

The conversation with Mad Capital leaves us with a profound sense of optimism and a clear call to action. For farmers and land stewards, it is a reminder that you are not alone, that there are partners who understand your journey and are working to create the financial tools you need to succeed.

For investors, it is an invitation to see the world of agriculture through a new lens, to recognize that the greatest returns are not always measured in dollars and cents, but in the health of our soil, the resilience of our communities, and the legacy we leave for future generations.

And for all of us who are part of the regenerative movement, it is a call to community, to collaboration, and to a shared sense of purpose. The challenges we face are immense, but as the story of Mad Capital demonstrates, when we combine vision with action, and passion with perseverance, we have the power to seed a truly regenerative future.

As we continue to reboot the Seeds of Tao podcast, we will be sharing more stories like this—stories of the "regenpreneurs," the funders, the ecosystem builders, and the educators who are on the front lines of this movement. We invite you to join us, to listen, to learn, and to be a part of the conversation. Because the regenerative economies of the future are not a distant dream; they are being built, right here, right now, by people like Brandon, Phillip, and you.