GenXYZ Nominees Thrive: Rob Carpenter (2013) — Where is He Now?

Everyone was right when they predicted bright futures for these executives, entrepreneurs and nonprofit leaders. Ten-plus years after ColoradoBiz profiled these Top Young Professionals of Colorado, we revisited several to see where their career paths led them and what they are doing now.

Some are with the same companies; others have moved on to different businesses and new roles.

For some, change was inevitable as their companies were acquired or merged with other entities. For still others, the desire to start something new was irresistible. All are continuing to meet and exceed their own career goals and engage with their communities.

The Gen XYZ Awards are open to those who are under 40 and live and work in Colorado.

Rob Carpenter

2013: 28,CEO and Co-Founder, Appit Ventures

2024: General Partner, Frost River Capital

A serial entrepreneur, Rob Carpenter thinks his passion for starting and growing companies might have been predestined.

“I grew up with my dad building cars, boats, airplanes,” Carpenter says. “It’s something genetic in our last name.”

Instead of building modes of transportation, Carpenter has built technology companies. In 2012, he co-founded AppIt, which helps develop apps for small businesses. During the seven-plus years he was with the Denver-based software development company, he developed more than 330 software applications, including iPhone apps.

Carpenter sold AppIt Ventures in 2019. He launched another company, Valyant AI, which automates fast food orders in the drive-through, using conversational AI.

He was inspired by his concern that AI, the way it was being leveraged by large corporations, would result in lost jobs and bigger wealth inequity.

“I decided to do something by starting a company and try to be part of the wave versus being left behind,” he says.

What he found, he says, is AI has the ability to do some things, but not replace all workers.

“I think it’s really overhyped and overblown as far as true capabilities,” he says. “They refer to it as solving the blank page problem. You are trying to write and you could be looking at a blank page, and ChatGPT can start you out, but it really takes a human to give it true value and make it interesting.”

READ: AI Content and Human-Generated Copy — A Winning Combination for Social Media Marketing

Carpenter eventually transitioned out of Valyant AI, stepping down as CEO in 2023. He almost thought about getting a job, but as a longtime entrepreneur, he appreciated the level of freedom that owning a company gave him.

Still, he wanted something different from the constant slog of starting a company. He had become interested in search funds, and the concept of entrepreneurship through acquisition, or ETA. When he ran Valyant AI, he had raised $18 million in venture capital and private equity, so he recognized the importance of funding.

“What I had done with Applt and Valyant was start something from scratch, taking something that was purely an idea in my head,” Carpenter says. “With an ETA you are buying an existing business that has a market fit, customers, good insight into growth. You are solving a different problem set.”

Earlier this year he launched his current company, Frost River Capital, which is focused on acquiring one company with $200,000 to $500,000 in EBITDA. After less than three weeks, Carpenter wrote his first offer on a company that he wanted to invest in.

“I’m pretty happy with that pace,” he says. “I am looking at all different kinds of businesses across the spectrum. It won’t be as cutting-edge as Valyant but that’s OK because I’ll be able to be home evenings.”

Frost River Capital has specific acquisition criteria. While it’s hard to say no to people who are working hard and trying to do their best for the new businesses, he says it’s important not to be a people pleaser. “You have a responsibility to investors, to employees, and to the community, so if you are not running the business efficiently, you let everybody down,” he says.

He adds that the No. 1 predictor of success is if the entrepreneur had previously started a business where they earned $1 million in revenue or sold the company for $1 million.

As an investor, Carpenter thinks it is crucial to do as much research as possible. “It takes a lot of reading to educate yourself on individuals, markets and trends,” he says. “At some point when you consume enough information, you see where trends and opportunities meet up.”

Nora Caley is a freelance writer specializing in business and food topics.