30 August 2024

By Michael Molenda

When Peter J. Burns III of Burns Funding proclaims he wants to establish himself as the financier for the drone community, it may seem like a bit of lofty, somewhat overconfident dream building.

However, if your initial thoughts are leaning in that direction, here’s a tip for you: Betting against the “dream” of a massively successful, serial entrepreneur with a track record that almost defies logic would be true folly.

Burns—a self-made millionaire from a prominent New England family—has launched more than 200 startups (including one developing technology that prevents shark attacks), established an institute for entrepreneurship (as well as one of the first college programs devoted to teaching future entrepreneurs), started Club Entrepreneur, founded Millennial Queenmaker to guide female entrepreneurs, and is feverishly committed to helping startups acquire the funding they need to achieve success. 

And it all started with golf balls.

“When I was six years old, I would sometimes follow my dad when he went golfing,” says Burns. “I saw golfers hitting balls into the water hazards, and they’d just drop a new ball into play and leave the other one in the water. I thought, ‘Those golf balls cost around $1.25 each—there’s an opportunity here.’ So, when my father finished his round and went to the bar with his friends, I rushed home—we lived close to the course—to get my waders, some Dixie cups, and a little table. I waded into the water, retrieved the golf balls, and then I sold the golfers their own balls back to them for 50 cents. I made $50 within a couple of hours before they threw me off the golf course [laughs]. That little business sparked everything.”

The next “official” step in Burns’ career as an entrepreneur occurred when he attended the McIntire School of Commerce at the University of Virginia. Required to submit a business plan for the course, he recognized the popularity of mopeds in Europe, and devised a strategy to import the scooters to America and rent them to tourists at upscale resorts.

Until then, businesses had, for the most part, steered clear of moped sales and rentals because they had to be licensed and registered the same as a Harley Davidson, even though mopeds only had a top speed of around 25 mph.

However, when the vehicle law changed in the late 1970s, Burns pounced.

With mopeds now legally designated as motorized bikes that did not require the rider to possess a motorcycle license in most states, Burns knew the time was right for his plan. After leaving school, he launched his first moped business on the island of Nantucket, and, within two years, expanded it to more than 100 shops across the nation’s resorts and tourist areas.

“I made a small fortune, and never looked back,” says Burns.

The following interview with Burns can be used as a micro seminar on how to win. Anyone who is seeking a career as a drone professional, or is developing new drone tech, evolving drone design, and/or manufacturing ancillary UAV products should absorb Burns’ entrepreneurial counsel and tactical strategies.

Connect with Burns Funding

How did you get into financing?

I had to. Nobody would give me any money! Listen, even though my family is very wealthy, it’s not like I could go to them with a proposal, and they’d say, “Oh, Peter. Good idea. Here’s a billion dollars.” That’s not how it worked in my family, and it wasn’t all that different in the banking world. As a result, I had to get really good at finding alternative sources of funding, so I could fund my own businesses. I became very successful at that, and soon, all the entrepreneurs in my world would ask me, “How did you get that business funded? We can’t do anything. Nobody will give us the money.” So, I started brokering deals for the entrepreneurs who came to me for help.

What initially attracted you to the drone market as a business segment particularly favorable for investment?

I have an uncanny ability to recognize opportunities and capitalize on them, and I consider the drone industry a blue-ocean opportunity. There is massive potential for success. I mean, the market is certainly rising up now, but I believe there is still tremendous growth ahead. My focus is to look for markets that are fragmented—that do not yet have a dominant player—and figure out a way to get into them. In simplified terms, I think that’s the present situation in the drone industry. Perhaps not in drones themselves, as DJI is obviously dominant, but in businesses and services related to drones and drone pilots. I'm not saying I'm going to fund everybody, but I'll fund as many companies as I can. Currently, no one is the leading investor for the drone industry. I want to position myself as the drone financier.

Burns established the Fun Rentals chain in 1996 to hire out exotic cars, mopeds, water vehicles, bicycles, and Harleys. 

Can you share some details of your Burns Funding Method?

Basically, we make it very easy for ordinary people to get the capital they need. First, we look at just two things—your credit score and your income—and we can let you know if you qualify for funding within 18 seconds. If there are any problems with your credit rating, we can help you with that in a matter of weeks. Another huge benefit is that you’re not acquiring a loan from a bank that can take years to pay back as it accrues interest, and eventually drowns you in debt. Instead, you are borrowing against our $1.5 billion line of credit. We are the guarantor of the loan. Essentially, your funding venture is a partnership with Burns Funding, and the cost of repaying your loan is zero. I know that sounds like a fantasy, but I am confident in my ability to grow successful businesses, and the money generated by my investment in you is used to pay off the loan. We’re always happy to talk about specific details and answer any questions—especially as our method is very unusual, and I specialize in the unsecured world of alternative financing. Unlike most bankers, I don't sit there and go, “Nope. Rejected” every time an idea is brought in.

Typically, entrepreneurs and startups must look to banks and investors for working capital. You’re obviously not a fan of that approach.

I don't use banks. I would no more go to a bank for funding than I'd jump off my balcony. Bankers don't do us any favors. I actually don’t know why they earn a living to tell you the truth. They’re useless. I discovered pretty quickly I had to figure it out for myself. And I did. I have two basic premises. One is that startups always need money, and they can't get it from the bank. After they've exhausted friends and family, they're basically screwed. Two is that you’re in business to expand or make acquisitions, and you’ll need money again. I have invested about a billion dollars in people over the years, so we’re in a pretty good position to help with all of that.

What would you say to someone who is fearful of jumping into unconventional funding. Perhaps their guts love what Burns Funding represents, but their brains are thinking, “Bank. Security. Bank.”

I’d offer that you have to deal with somebody who is a blood and guts entrepreneur like me. I’ll get things done, because I had to do it for myself, and I never quit. My motto has always been, “Ready. Fire. Aim." I mean, if you’re not willing to step up and try something, you’re never going to learn. There’s a phrase I can’t remember at the moment that basically says people who think too much never actually do anything. That would not be me.

Without the standard checks and balances of conventional lending in place, these funding decisions are all on you. Don’t you worry about making the wrong call and losing money?

Let me say first that I don't like negativity. I am a very positive person who takes no prisoners and tolerates no bullshit. I’ve been self-sufficient since that first golf-ball business when I was a kid, so everything manifests itself through my being alert to opportunities and having zero risk aversion. I jump in the deep end—it’s just who I am. I would rather fail after I've tried something than never get off the ball and do it. So many people scare themselves into timidity. The fear factor is huge. But I’m like, “Why?” You only have this one life here, so go for it. If it doesn't work—well, as an entrepreneur, I don't consider failures. I consider disappointments as “practice.” That’s the tuition we pay as entrepreneurs. I’ll tell you something else—I don’t work with people unless I like them. I own everything 100 percent, so I can pick who I want to be in business with. It’s not just about a good idea that might be commercial. I need to like the people involved. Then, I’ll do whatever I can to help them reach success.

Female entrepreneurs networking as part of Burns' Millennial Queenmaker mentoring program.

In your opinion, what are some of the common miscues entrepreneurs can make when seeking funding or trying to manifest success?

They might have unrealistic expectations about what their so-called idea is worth. Honestly, an idea is worth nothing. Unless you can implement it, it's just another idea. You also have to be able to pivot. Think of the inventions out there that started out one way but became way more successful as something else. For example, Post-it notes were a failed experiment. A scientist at 3M was tasked with designing an extremely strong adhesive. Instead, he came up with a weak and reusable, pressure-sensitive adhesive. That mistake became a multi-billion-dollar business.

In the spirit of full disclosure, you and Burns Funding have been working with The Droning Company’s CEO Stuart Smith and President Don DeVille to secure working capital for us as we grow.

Yes. The Droning Company has a unique opportunity because it has been positioning itself as an authority on the drone industry. Even better, you’re not competing with anyone, really—you’re enhancing other people’s businesses. The Droning Company is gaining the loyalty of pilots, manufacturers, educators, drone-based companies, and others because it is a trusted resource. I want to get behind things like that. In fact, the relationship has already worked out very nicely. Stuart is getting the funding he needs, and, as a result, he is advocating what I do to other entrepreneurs seeking money. He has already introduced me to some other drone companies.

To better understand how Burns Funding works in a practical, real-world scenario, can you share any case studies or strategies with one of these other companies that are potential clients?

Well, I had a conversation with a flying car maker Stuart had introduced me to. The company had already received $7 million in Series A funding and was about to do a Series B for $35 million. I said, “Let me get this straight. You are planning to sell these cars for $350,000 each—which means the prospective buyers are going to be pretty well-heeled—and you're trying to raise $35 million, which will dilute the equity in your own company as a bunch of investors buy a piece of it. Why don't you let me finance a hundred of these flying cars? That way, you’ll get the $35 million without giving up a dime of equity.” This was just a discussion—there’s no deal yet—but it shows one of the ways Burns Funding can work to make everybody a happy camper.

Do you have any closing thoughts?

Entrepreneurship is the backbone of this country. We are the American dream. Entrepreneurs are the ones who innovate and create and start businesses, and we are about the only things going for the United States right now. We can’t build anything ourselves these days, but we can innovate better than anyone. My mission is to get rid of the crap that’s stopping entrepreneurs from being successful. I will give you what you need. I will offer my mentorship. I will provide resources. I truly believe that if you have access to capital, you can’t be stopped.

Connect with Burns Funding

Burns teaching a business class at Admas University, Addis Ababa, Ethiopia. He worked in Ethiopia for more than six months with a humanitarian NGO.