The Angel Next Door

Do advisors truly add value to early-stage companies, or are they just a box to check off? In this episode, Marcia explores how to best utilize advisors and eventually a board of directors with guest Kirsten Moorefield, co-founder of Cloverleaf. Kirsten shares her insights on how to leverage advisors effectively and avoid common pitfalls. She emphasizes the importance of finding advisors who align with a company's specific needs and warns against the practice of giving board roles solely based on investment.As co-founder of Cloverleaf, a platform that helps teams improve collaboration and productivity, Kirsten discusses the challenges she and her partner faced when starting their tech company with limited knowledge and connections. Through trial and error, they learned the value of being specific when seeking advice and leveraging the expertise of advisors who could provide practical help.  The episode dives into the nuances of valuation, early-stage funding, and the importance of traction beyond revenue in determining a company's potential for success. Kirsten discusses her own experiences with raising funding and the lessons she learned along the way. She emphasizes the role of customer feedback and genuine market interest as indicators of traction, rather than relying solely on monetary investments. Overall, this episode provides valuable insights for both founders and investors, highlighting the importance of strategic advisors and the impact they can have on a company's growth and success.To get the latest from Kirsten Moorefield, you can follow her below!LinkedIn - https://www.linkedin.com/in/kirstenmoorefield/Read more about Queen City Angels:  https://www.qca.comCloverleaf Board Member Sue Bevan Baggott: https://www.linkedin.com/in/suebaggott1/ Sign up for Marcia's newsletter to receive tips and the latest on Angel Investing!Website: www.marciadawood.com And don't forget to follow us wherever you are!Apple Podcasts: https://pod.link/1586445642.appleSpotify: https://pod.link/1586445642.spotifyLinkedIn: https://www.linkedin.com/company/angel-next-door-podcast/Instagram: https://www.instagram.com/theangelnextdoorpodcast/TikTok: https://www.tiktok.com/@marciadawood

Continuing the conversation from last week’s episode with Diego Mariscal about the lack of funding going to disabled entrepreneurs,  Marcia is joined by the inspiring Keely Cat-Wells to explore her own experiences in the world of entrepreneurship. Keely shares her personal journey of resilience and determination, from her dreams of becoming a professional dancer to starting a talent agency exclusively for representing disabled individuals. The episode dives into Keely's mission to provide equitable opportunities for disabled talent in the entertainment industry and her recent venture into creating a scalable solution to bridge the gap between underrepresented talent and meaningful employment.  Keely recounts her unexpected path to entrepreneurship, propelled by her own firsthand experiences with ableism and discrimination. From being dismissed by the medical system to facing exclusion in the workplace, Keely's determination to champion disabled talent fueled her journey. The episode showcases her groundbreaking work with C Talent, the talent agency she founded, and the subsequent acquisition that led her to venture into the tech space with Making Space.  As disabled individuals face barriers to traditional employment opportunities, Keely's venture, Making Space, empowers companies to access pre-qualified, underrepresented talent, while simultaneously addressing issues of recruitment, retention, and turnover. By leveraging technology and creating a Trojan horse effect, Keely is determined to ensure that diverse candidates, including disabled individuals from low-income communities, can secure and thrive in meaningful employment.Be prepared to be inspired and educated as Keely shares her experiences, triumphs, and powerful vision for a more accessible and equitable future. To get the latest from Keely Cat-Wells, you can follow her below!LinkedIn - https://www.linkedin.com/in/keelycatwells/Keely's website - https://keelycatwells.com/Making Space Media - https://makingspacemedia.com/C-Talent - https://www.whalar.com/c-talentDiego Mariscal's LinkedIn - https://www.linkedin.com/in/diego-mariscal-6363787a/Watch Diego's GMA segment - https://www.goodmorningamerica.com/GMA3/video/organization-support-disabled-people-mentorship-101872639 Sign up for Marcia's newsletter to receive tips and the latest on Angel Investing!Website: www.marciadawood.com And don't forget to follow us wherever you are!Apple Podcasts: https://pod.link/1586445642.appleSpotify: https://pod.link/1586445642.spotifyLinkedIn: https://www.linkedin.com/company/angel-next-door-podcast/Instagram: https://www.instagram.com/theangelnextdoorpodcast/TikTok: https://www.tiktok.com/@marciadawood

Have you ever wondered why entrepreneurs with disabilities are so underrepresented in the startup world? In this episode of "The Angel Next Door Podcast," host Marcia Dawood explores this thought-provoking question with her guest, Diego Mariscal.  Diego, who was born with cerebral palsy, is a passionate advocate for disability-focused entrepreneurship. As the founder of an accelerator program for founders with disabilities, Diego shares his insights and experiences to shed light on the challenges and opportunities faced by this community. Diego Mariscal, a pioneer and disruptor in the disability space, joins Marcia to discuss the immense potential of entrepreneurship among people with disabilities. With 1 billion individuals having a disability, Diego highlights the untapped market and the need for inclusive investment practices. He shares his personal journey as both an entrepreneur and an advocate, emphasizing the importance of recognizing and celebrating disabilities as a form of diversity.  The episode delves into Diego's efforts to create an ecosystem for disabled entrepreneurs, the significance of Disability Pride Month, and his plans for a groundbreaking micro fund focused on funding startups led by individuals with disabilities. To get the latest from Diego Mariscal, you can follow him below!LinkedIn - https://www.linkedin.com/in/diego-mariscal-6363787a/Check out Diego's Tedx Talk here - https://www.youtube.com/watch?v=JVG94W0gBPcWatch Diego's GMA segment - https://www.goodmorningamerica.com/GMA3/video/organization-support-disabled-people-mentorship-101872639Keely Cat-Wells  - https://www.linkedin.com/in/keelycatwells/ Sign up for Marcia's newsletter to receive tips and the latest on Angel Investing!Website: www.marciadawood.com And don't forget to follow us wherever you are!Apple Podcasts: https://pod.link/1586445642.appleSpotify: https://pod.link/1586445642.spotifyLinkedIn: https://www.linkedin.com/company/angel-next-door-podcast/Instagram: https://www.instagram.com/theangelnextdoorpodcast/TikTok: https://www.tiktok.com/@marciadawood

Why do female entrepreneurs receive less funding than their male counterparts? In this solo episode, Marcia focuses in on the various factors contributing to the lack of funding for women, including biased questions during the fundraising process and the perception that women start slower-growing, less scalable businesses. She also explores the importance of diversifying the pool of investors and expanding networks to create more opportunities for women in the startup world.  Marcia highlights research findings and shares insights on how female entrepreneurs can navigate the funding landscape more effectively. She also discusses the upcoming documentary "Show Her the Money" and its mission to raise awareness and spark change. With a focus on creating a more equitable startup ecosystem, Marcia emphasizes the need for ongoing conversation, networking, and collective action to move beyond the current 3% mark and empower women to secure the funding they deserve.Show Her the Money movie trailer: https://showherthemoneymovie.comGet tickets for Opening Night in Philly here: https://www.tickettailor.com/events/thewomensfilmfestival/993793#Connect with Catherine Gray on LinkedIn: https://www.linkedin.com/in/catherinelgray/Read more from Dana Kanze here: https://hbr.org/2017/06/male-and-female-entrepreneurs-get-asked-different-questions-by-vcs-and-it-affects-how-much-funding-they-get Sign up for Marcia's newsletter to receive tips and the latest on Angel Investing!Website: www.marciadawood.com And don't forget to follow us wherever you are!Apple Podcasts: https://pod.link/1586445642.appleSpotify: https://pod.link/1586445642.spotifyLinkedIn: https://www.linkedin.com/company/angel-next-door-podcast/Instagram: https://www.instagram.com/theangelnextdoorpodcast/Facebook: https://www.facebook.com/theangelnextdoorpodcastTikTok: https://www.tiktok.com/@marciadawood

Curious about revenue-based financing? In this episode, Marcia sits down with Denise Dunlap, co-founder of Sage Growth Capital, to discuss this unique model of funding, which combines elements of both loans and equity investments.Denise shares how her experience as an angel investor led her to start Sage Growth Capital, with a focus on supporting companies that may not qualify for traditional equity investment. With an emphasis on revenue-based financing, Denise explains how they offer funding to companies with recurring revenue streams, supporting businesses in various industries.Denise also sheds light on the lessons she and her partners have learned over the past couple of years. As they continue to invest in companies planning to raise equity funding, Denise discusses the unexpected recognition of their value proposition. She addresses the average check size they provide to companies and sheds light on the repayment timeline, dependent on the business's performance. Gain insight into the true cost of equity and the benefits of revenue-based financing in this captivating conversation.To get the latest from Denise Dunlap, you can follow her below!LinkedIn - https://www.linkedin.com/in/denisedunlap55/Learn more about Sage Growth Capital - https://www.sagegrowthcapital.com*All other companies discussed in this episode are linked on their website above. Sign up for Marcia's newsletter to receive tips and the latest on Angel Investing!Website: www.marciadawood.com And don't forget to follow us wherever you are!Apple Podcasts: https://pod.link/1586445642.appleSpotify: https://pod.link/1586445642.spotifyLinkedIn: https://www.linkedin.com/company/angel-next-door-podcast/Instagram: https://www.instagram.com/theangelnextdoorpodcast/TikTok: https://www.tiktok.com/@marciadawood

Can revenue-based financing revolutionize the way startups raise capital and allow anyone to invest for as little as $100? In this episode of The Angel Next Door Podcast, Marcia is talking to Justin Renfro from Wefunder, who heads up the Revenue-Based Financing division. Together they explore the potential of revenue-based financing as an alternative to traditional equity funding.What is Revenue-Based Financing? It's a unique way growing businesses can receive financial capital in exchange for a percent of ongoing gross revenues.Justin shares insights from his experience working with entrepreneurs and explains how Wefunder aims to democratize investing into startups. Marcia and Justin delve into the challenges faced by founders in raising capital, the infrastructure provided by Wefunder to support startups, and the importance of community-driven investment in fostering economic growth.To get the latest from Justin Renfro, you can follow him below!LinkedIn - https://www.linkedin.com/in/justinrenfro/Read more about Revenue Based Financing from WefunderLearn more about Sepia Coffee Project - https://wefunder.com/sepia.coffee.projectLearn more about Love Box - https://wefunder.com/loveboxLearn more about Neutral Ground - https://wefunder.com/neutral.groundLearn more about SW Basics - https://wefunder.com/swbasics Sign up for Marcia's newsletter to receive tips and the latest on Angel Investing!Website: www.marciadawood.com And don't forget to follow us wherever you are!Apple Podcasts: https://pod.link/1586445642.appleSpotify: https://pod.link/1586445642.spotifyLinkedIn: https://www.linkedin.com/company/angel-next-door-podcast/Instagram: https://www.instagram.com/theangelnextdoorpodcast/TikTok: https://www.tiktok.com/@marciadawood

Congress holds a great amount of influence on how easy it is for small businesses to raise capital.. This week on The Angel Next Door, Marcia speaks with Congressman David Kustoff, representative from the 8th congressional district of Tennessee. Marcia and the Congressman discuss his background and how he came to be a member of the House, as well as his work on the House Committee of Ways and Means introducing new legislation with hopes of making it easier for small businesses to raise capital.  Congressman Kustoff explains how he got started as an attorney in the Memphis area, eventually being appointed US Attorney for the Western District of Tennessee by President George W Bush. After serving as US Attorney, he returned to his private practice. Growing concerned with the direction he saw the country taking, he saw his opportunity to make a difference when a vacancy in the House opened in his district in Tennessee, and won the seat in 2016. Currently in his 4th term in Congress, David serves on the powerful House Committee of Ways and Means, which holds jurisdiction over taxes, health care, trade, and family support programs.  In talking with his constituents and businesses in his district, Rep. Kustoff hears a lot about inflation, supply chain and labor issues, and the difficulty small businesses have with navigating tough regulations when raising capital. He explains how in 2017 the Ways and Means Committee enacted the Tax Cuts and Jobs Act (TCJA). Among other things, TCJA greatly lowered the corporate tax rate, encouraging more businesses to be structured as C-Corporations, which can then benefit from the Qualified Small Business Stock (QSBS) provision of IRC 1202. QSBS makes capital gains from small business stocks exempt from federal taxes if they meet certain requirements. Marcia shares an example of how she benefited from IRC 1202 in one of her early investments, which inspired her to take even more money and put it back into the economy and help entrepreneurs.  Congressman Kustoff points out the importance of legislation that fosters the entrepreneurial spirit, especially given how, without new legislation, the TCJA provisions expire in 2025. It’s for this reason, Rep. Kustoff has introduced the Small Business Investment Act of 2023, which would protect and expand these provisions, provide incentives for investing in startups and small businesses, and make it cheaper for small businesses to raise capital. The Small Business Investment Act of 2023, changes the QSBS holding period for stock, currently at 5 years, to a phased approach, making these investments more attractive to investors. The bill also allows the ownership of convertible debt to count towards the holding period, and expands the eligibility to S-corporations. Congressman Kustoff hopes to gain some movement on the bill quickly, with a companion bill introduced by Senator John Cornyn moving through the Senate. He encourages any listeners with questions about the bill to contact his office.  This episode delves into how legislation from Congress greatly affects how small businesses raise capital and how the same legislation can make investments more attractive to angel investors. Enjoy!Click Here to read Marcia's profile on LinkedInClick here to learn more about Congressman KustoffClick here to read the press release about the Small Business Investment Act Learn more about the House Committee on Ways and MeansClick here to find out more about the Angel Capital AssociationTake courses to learn how to be an angel investor at Angel University - click here for info!Want to reach the Angel Capital Association? CLICK HEREHave ideas for the show?  Email us at theacaangelnextdoorpodcast@gmail.com

The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. This week on The Angel Next Door, Marcia talks with one of the five SEC Commissioners, Hester Peirce. Listeners get to hear Commissioner Peirce’s story on becoming a commissioner and her take on some hot topics in today’s investment arena.  Commissioner Peirce begins by discussing her background, starting off as a securities attorney at a private law firm. After making connections within the SEC, she became a staff attorney there for about 8 years. She left the SEC and worked for the Senate Banking Committee, while researching how to make regulation better and more efficient, before eventually returning to the SEC as a commissioner. She explains the role of a commissioner and how they work together to do what is best for U.S. based investors and business owners. The commissioners are not allowed to meet with each other unless all are present and it is public or publicly disclosed as a closed meeting. Despite this obstacle, Commissioner Peirce states that all the commissioners are independently talking to investors, companies, and people affected by SEC regulations and they are able to lean on the experience and knowledge of their colleagues to make better decisions together.Marcia and Commissioner Peirce go on to discuss fraud and the misperception that failure is fraud in the private investment world. They make the point that just because an investment fails doesn’t mean there is fraud, but it is often perceived that the failure may be due to fraud. Commissioner Peirce explains that this misperception is fueled by a lack of interaction with people actively engaged in private markets. They also touch on the recent bank failures and how having a variety of sources of funding is very important, as different companies rely on different forms of funding at different stages. In her role, it is important to Commissioner Peirce that she supports a variety of sources of capital formation that can fill the voids when other sources fail by creating a regulatory structure that makes sense, protects investors, and keeps the capital spigots flowing.  Lastly, Marcia and Commissioner Peirce talk about the accredited investor definition and diversity in capital markets. The commissioner worries there is a move to raise the thresholds to be an accredited investor, and she looks for ways that sophistication can  be determined outside of income thresholds. Although it is difficult to write legislation on issues that are not definitively measurable, she believes that education and experience can be used to counter the concerns that wealth is not a proxy for sophistication. Commissioner Peirce also discusses how there are alternatives for diversifying capital markets, but they are not always obvious to those searching. She explains we need to get the word out to founders that there are pools of available capital and that we need to get word to investors that sometimes they need to go looking where they haven't thought to look for the right investment. This is an intriguing episode that provides a unique perspective on investing and capital formation from one of the top regulators in the nation. Tune in to hear the discussion!Click Here to read Marcia's profile on LinkedInClick here to read about Commissioner Peirce on SEC.govClick here to read speeches and statements from Commissioner PeirceClick here to find out more about the Angel Capital AssociationTake courses to learn how to be an angel investor at Angel University - click here for info!Want to reach the Angel Capital Association? CLICK HEREHave ideas for the show?  Email us at theacaangelnextdoorpodcast@gmail.com

Startup growth is everywhere including the middle of the country!Marcia talks with Congresswoman Ann Wagner, who represents the 2nd district of Missouri and is the highest ranking republican on all matters concerning capital markets, investor protection, and capital formation. She is the first woman to chair the House Financial Services subcommittee on Capital Markets. Congresswoman Wagner discusses why she ran for office, the entrepreneurial ecosystem of her home state, and the work she is doing in congress to help advance legislation to support small businesses and investors in the US.  Congresswoman Wagner starts off by telling listeners her background as the daughter and granddaughter of small business owners from Missouri. She recounts how she learned early on the value of a dollar and a good work ethic. Her father would say he wanted the government off his back so he could provide a service to his community, take care of his employees and provide for his family. Feeling privileged to now represent her constituents, the congresswoman believes it is critical to address the issues impacting their wallets. She discusses the work being done in her home district in the St. Louis area. She talks about the large startup ecosystem and how it is one of the fastest growing startup scenes in the country. She and Marcia mention how many of the “fly over” states are actually booming innovation hubs, directly affecting the nation’s economy, but how congress can do more to create more opportunities for these small businesses and investors. Congresswoman Wagner touches on several groups in the St. Louis area that are contributing to the growth of small businesses, such as St. Louis Arch Angels, 39 North, Cortex Innovation Community, NGA, and TRex Innovation Center.They go on to discuss Congresswoman Wagner’s work and goals as the chair of the Capital Markets subcommittee. She plans to pursue innovation and opportunity and provide oversight of the Biden Administration to hold financial regulators accountable, specifically the SEC and CFPB. With capital formation being a top focus of the subcommittee, by the end of April they will put together a major package of legislative bills focusing on public markets, small business and entrepreneurs, and retail investor opportunities. Congresswoman Wagner is optimistic these bills, which show bipartisan support, will be successful moving through Congress. In addition to the legislation, the congresswoman looks to hold hearings with SEC divisional directors to examine the deluge of proposed rules that she believes are solutions looking for problems and fail to consider the compliance costs and burden on smaller companies.  Finally Marcia and Congresswoman Wagner talk about the definition of accredited investor and the previous hearing held by the Financial Services Committee which included testimony from ACA Board Member Eli Velasquez. Congresswoman Wagner explains that Eli’s experience is exactly why the committee is working to reform the current definition and that she will be introducing the Increasing Investor Opportunities Act, which would amend the Investment Company Act to provide for private market access and increase retail investor exposure to private markets while maintaining the investor protections. She believes wealth is not a proxy for sophistication, and opportunities for wealth creation should not be reserved for the wealthiest Americans. Marcia also touches on a study completed by the Desert Angels in Arizona, which quantifies the significant economic impact their investments have made on the local economy serving as a benchmarking standard for other communities. This is a great episode for listeners to learn about some of the work being done in Congress to increase opportunities for investors and small businesses, and how these opportunities can provide a massive positive impact on communities throughout the country. Click Here to read Marcia's profile on LinkedInClick here to learn more about Congresswoman Ann WagnerClick here to read ACA's Data Insights on the Desert Angels impact studyMore on the House Financial Services CommitteeClick here to read about and watch the Financial Services hearing with Eli Velasquez  Click here to find out more about the Angel Capital AssociationTake courses to learn how to be an angel investor at Angel University - click here for info!Want to reach the Angel Capital Association? CLICK HEREHave ideas for the show?  Email us at theacaangelnextdoorpodcast@gmail.com

This week on The Angel Next Door, Marcia talks with modern renaissance man Mark Herschberg. From MIT educator and cybersecurity professional to startup CTO (Chief Technology Officer) and author, Mark has worn many hats throughout his professional career. Despite his expansive resume, he and Marcia focus on his time spent in the world of startups, mostly as an executive, including 2 startups he is currently working on.  Mark starts by telling listeners about his journey of graduating from MIT and deciding not to go the typical wall street, classic tech, or consulting route. Instead he fell into the startup and investment world. As an operator at heart, Mark found that he enjoyed working with small/early stage companies and quickly became a career executive and CTO for those types of companies. He explains how his experience as an executive, which required him to evaluate the companies that were looking to hire him, has helped him be a more successful investor as well.  Marcia and Mark go on to discuss what would be the right amount of equity for each role in a startup. Mark tells listeners what he has seen in his experience, with companies typically setting aside 10-15% equity to be split between C-level employees. Lower level executives such as VPs or directors may receive 1-2% equity, while some companies may offer a combination of equity and money. Mark also explains different rounds of funding, such as seed rounds and series funding rounds (A, B, C), and at what stage a company may be in those rounds.  Mark then explains what a fractional C-suite executive is, a role that he has held in several startups for over a decade, specifically as a CTO or CTPO(Chief Technology/Product Officer) . As a fractional CTO, he is able to provide his expertise and guidance to a startup without breaking the bank, allowing them to hire more junior level employees at a lower cost. He expresses how he has seen some companies make the mistake of hiring junior level employees without having senior level guidance, and believes more companies will begin to rely on fractional executives.  Finally, Mark touches on 2 startups he is currently working on. He created an app, Brain Bump, which helps users retain information they learn from content such as books, podcasts, or blogs. Initially created as a counterpart to his book, The Career Toolkit, he is working on expanding the app’s reach for both consumers and content creators. He also is working on a startup in the cyber security arena, and tells Marcia about his concerns regarding today’s cyber security issues. This episode is packed with great insight from a remarkably educated expert in many fields. You don’t want to miss it!Click Here to read Marcia's profile on LinkedInClick here to read Mark Herschberg's profile on LinkedInLearn more about the Career Toolkit book and more resourcesCheck out the Brain Bump app hereClick here to find out more about the Angel Capital AssociationTake courses to learn how to be an angel investor at Angel University - click here for info!Want to reach the Angel Capital Association? CLICK HEREHave ideas for the show?  Email us at theacaangelnextdoorpodcast@gmail.com