Kimberly Caro, Author at Golden Seeds

The Future of Health Care in a Post-Pandemic World: An Interview with Dr. Laura Forese of New York-Presbyterian

Posted on September 15, 2020September 15, 2020 by Kimberly Caro

The COVID-19 pandemic has dramatically accelerated a major shift in health care that has been underway for years, pushing new technology and innovative practices to the forefront. These trends were recently explored at a Golden Seeds Trend Talk. Golden Seeds Managing Director Dr. Mary Lake Polan interviewed Dr. Laura Forese, Executive Vice President and COO of New York-Presbyterian about these developments. This is one in a series of Trend Talks focusing on topics that are relevant, instructive and inspiring.

Dr. Mary Lake Polan is professor of clinical obstetrics, gynecology and reproductive sciences at Yale University School of Medicine, her alma mater. She has practiced and taught medicine internationally and was previously chair of the department of obstetrics and gynecology at the Stanford University School of Medicine.

Dr. Laura Forese is executive vice president and COO of New York-Presbyterian which includes 10 hospital campuses and is affiliated with Columbia and Weill Cornell medical schools in New York. A pediatric orthopedic surgeon, she graduated from Princeton University and Columbia University College of Physicians & Surgeons.

Dr. Laura Forese

Dr. Polan: What devices, diagnostics and therapies have changed or become more desirable because of COVID-19?

Dr. Forese: Everyone has become more comfortable with telemedicine. If you can find a silver lining in the pandemic, that might be it. We had been moving in this direction, because the public uses digital technology in all facets of their lives, and we expected health care to follow. Of course, we didn’t know that the pandemic would push everyone in this direction. Even physicians who were convinced nothing could be as good as seeing a patient in person have begun to see the benefits of technology. Patients don’t want to visit a doctor’s office if they don’t have to, so they’re asking for virtual visits.

Dr. Polan: Are there specific areas where telemedicine has big advantages?

Dr. Forese: At the beginning of the COVID crisis, we were admitting patients who weren’t that sick, but as it became a tsunami, we realized we could send some patients home with oxygen monitors and follow up frequently, advising them to go to the hospital or call 911 if their oxygen saturation dropped below a certain level.

Having smart devices that communicate with hospital systems electronically will enable us to expand this approach, giving us accurate and actionable data. We see applications in almost every field of medicine.

Dr. Polan: Do medical devices have to be cleared by the FDA so you know the data is reliable?

Dr. Forese: Generally speaking, we do look for FDA approval of devices but, sometimes, we are conducting our own research to determine if the data is reliable. We need to know we can trust data and act on it. If a device or test doesn’t provide the right specificity or sensitivity, we can’t use it. It’s the reason randomized trials are so important, both for diagnostics and therapies.

Dr. Polan: There seem to be gray areas around artificial intelligence (AI) and patient care. Do you see AI and smart devices—such as a monitor that can detect a chemical imbalance in a patient’s blood or sweat—playing a part in health care?

Dr. Forese: AI will play a growing role in medicine in the years ahead. We’re still in the early stages, but smart devices and machine learning hold great promise. A device that enables a layperson to take sophisticated measurements that normally require trained experts has enormous potential anywhere. Take an echocardiogram, for example. A smart device could tell the patient exactly what to do and how to do it, and determine when it has captured a valid image.

Even in the hospital, a smart monitor could alert a nurse to abnormal readings or output. Having technology handle the routine part of a test would free up practitioners to work at the top of their capability, specializing in what they do best. There will always be a need for a physician’s clinical judgment, but it’s important that we consider the evidence-based science.

Dr. Polan: Do you believe that AI will affect the odds of doctors pursuing certain fields of practice, such as radiology or surgery?

Dr. Forese: During nearly four decades in medicine, I’ve always heard predictions that certain fields will become more or less popular or go away. The reality is we will have all these fields, but they’ll be different. What orthopedists and radiologists do today is different than what they did 40 years ago. In the future, we’ll do what humans are best positioned to do and let machines do what they’re best at.

Dr. Polan: When I was practicing in Africa, we used handheld sonograms for patients in the field. What role are mobile diagnostics and therapies playing here?

Dr. Forese: The whole concept of point of care is changing, especially in the COVID world. The New York-Presbyterian mobile stroke unit is one example. The longer it takes to resolve a stroke, the more damage there is, so we tell patients to get to the hospital immediately. We need to determine the type of stroke and see if they need a clot-busting drug. We can speed things up by going to the patient and doing the necessary intervention there.

New York-Presbyterian’s mobile stroke unit uses a scanner that transmits data to a neurological radiologist who can assess the situation and authorize the paramedic to administer the right medication. It has saved numerous patients from the devastating consequences of strokes. Currently these are big machines, but as devices get smaller and imaging gets smarter, this will be the promise of the future.

We’re looking for other opportunities to use technology in this way and studying how to integrate mobile devices and data into our existing systems, including both electronic health records and billing, with the necessary cybersecurity.

Dr. Polan: Will telemedicine ameliorate or accelerate inequities in health care?

Dr. Forese: Health care equity is critical, and New York-Presbyterian is dedicated to improving it. We serve communities all across the New York region, and some residents don’t have access to broadband or aren’t comfortable with technology. We’ve been working with schools and libraries to address those issues. Among other things, we’re considering giving patients tablets to take home if they don’t have one. And, we’re exploring software that can translate 250 languages on the fly. Our goal is to level the playing field and correct these inequities.

Dr. Polan: In your position at New York-Presbyterian, you’re responsible for so many people and so many resources—you’re a prime example of the leadership role that women have been playing during the COVID crisis. What’s your take on this?

Dr. Forese: I’ve always worked in fields that are typically male-dominated, and being in the minority, I’ve been acutely aware of many different perspectives and welcome them. It’s important to consider multiple viewpoints when making difficult decisions during a crisis. That’s become part of my leadership style, and I’m fortunate to be in an extremely supportive environment. One of the things I love about health care is that you’re part of a team that can make a big difference every day. That’s been especially relevant during the past few months.

Learn about Golden Seeds work.

Golden Seeds celebrates 15 years of investing in women-led companies

Posted on September 10, 2020September 10, 2020 by Kimberly Caro

Watch the retrospective video of this 15 year milestone here.

Click on the above image to watch the celebratory video.

Our work is far from done. But as it’s been 15 years since Golden Seeds was launched, it seemed like a good moment to reflect on just how far we’ve come since that time.

In 2005, under the leadership of our founder, Stephanie Newby, we began to realize our vision of achieving gender parity in investment and entrepreneurship with the creation of Golden Seeds, an early stage investment firm dedicated to championing and investing in women-led startups. Fifteen years ago, we set out to create an environment in which all women entrepreneurs would be seriously considered, treated fairly and have a real shot at getting funding.

Since then, we’ve made incredible strides. We’re now one of the largest angel investment networks in the country, having had more than 870 investors in 34 states over these years. We were one of the first organizations to actively promote the myriad research that shows all companies are better when they are gender-diverse.

We are particularly proud of our national footprint. In addition to operating our flagship New York office, Golden Seeds now includes seven additional chapters across the country, bringing mentorship and investment opportunities to women-led startups in Arizona, Atlanta, Boston, Dallas, New Jersey and Silicon Valley/San Francisco. We offer angel investors the opportunity to participate on due diligence teams; invest in promising startups; attend training sessions, national forum meetings and syndication calls; and join meetings in any of the organization’s chapters throughout the U.S.

Over our 15 years of pursuing gender diversity the total investment by Golden Seeds exceeds $135 million in nearly 200 companies. Those companies have gone on to raise more than $1.2 billion of additional capital, further advancing female entrepreneurs. We have invested in nearly all industry sectors, with emphasis on enterprise technology, healthcare and consumer products/services industries.

While Golden Seeds – and overall investment in all-female founding teams – has made tremendous progress, we recognize the challenges that remain ahead. Venture capital (VC) investment in all-women teams in 2019 was $3.3 billion – a mere 2.8% of all venture capital invested in the U.S., according to PitchBook. Eight-six percent of all venture capital investments last year went to all-male teams.

“We would not be here if not for Golden Seeds,” said Susan Catalano, Co-Founder and Chief Science Officer at Cognition Therapeutics, which recently received a $75.8 million National Institutes of Health grant to fund a clinical trial for a therapeutic to treat early Alzheimer’s disease. “They’ve brought a wealth of experience to our company and provided access to organizations that I don’t think we would have been able to access without their help. They were the folks who had a vision as big as we did. Everything the company does is historic.”

“Golden Seeds has meant viability for our company,” said Rosina Samadani, CEO of Oculogica. “They are your partners. Right from the beginning, they introduce a structure around how to think about your startup. They keep their eyes and ears open for new investors, as well as clients, customers and other partners that you need. They really are an extension of the company.”

We believe that Golden Seeds reflects a business community as it should be – one where it’s equal for men and women who work alongside one another to build great companies. Above all, it is an important sign of progress to see many organizations – from angels to family offices to institutional funders – are actively investing in women entrepreneurs. We are grateful to all of those individuals and organizations who have helped us during this fulfilling and exciting journey.

Onward!

To learn how to become involved with Golden Seeds and help empower female entrepreneurship, contact us today.

Board rules: Examining the differences in serving on large and small private boards

Posted on August 25, 2020August 28, 2020 by Kimberly Caro

Editor’s note: Kathryn Swintek, Golden Seeds Managing Director and Managing Partner of Golden Seeds Fund 2, recently received the prestigious honor of being named private company director of the year for 2020 by The National Association of Corporate Directors (NACD). A longtime Golden Seeds investor and fund partner, she serves as board chair at ABI Bank and as a director on the boards of Open Road Integrated Media, Oculogica, and Turtle & Hughes.

For the past 20 years, I’ve served on several boards – large and small private company boards, a public board and nonprofit boards – and I have learned each board experience is unique, which presents myriad learning opportunities. While there are several differences in responsibilities for the various types of boards, there are three pillars of a director’s fiduciary duty that exist regardless of the board: risk oversight, talent oversight and strategy oversight.

These three pillars are relevant to all types of companies and organizations, but their complexity — often greater with the size of the entity — will dictate differences in how fiduciary duties are carried out. The structure of the board, its committees and processes will vary with the type of company.

Let’s examine these differences in private early stage and private mature companies.

Early stage

Kathryn Swintek

First, we’ll explore early stage companies, specifically those that have completed one or two rounds of institutional capital raising.

The board of an early stage company is generally comprised of a mix of what are called investor directors and one or more independent directors. Investor directors are elected by the shareholders of a specific class of shares while independent director(s) are elected by all shareholders and will generally be selected for her or his relevant industry knowledge.

I have experience on four early stage company boards as both an investor director and as an independent director. The size of an early stage company board generally ranges between three and five people, with five representing best practice in my view. These boards operate either with no committees or with one or two, generally finance and compensation.

Early stage companies are unique in that they have limited time in business and generally a small customer base. Mistakes at this stage, however, tend to be more costly than for other companies, as they have limited capital resources with which to course correct. Directors of early stage companies assist with guidance and by bridging the experience gap, through their prior and current business and board experience. The work of a director is a mix of fiduciary and advisory with numerous impactful decisions required as milestones are achieved or missed.

Risk oversight will tend to be dominated by close supervision of financial performance against plan and ensuring adequate liquid resources to execute the strategic plan. Talent oversight will generally focus on participating in the selection of C-suite executives to round out the team. At times, these duties include replacing C-suite executives as the company moves from early stage to growth stage, and always include determining equity grants such as the recipients, structure, quantity and terms.

At this stage, a director’s personal networks are more important than for more mature companies, such as referrals to potential clients, talent and supplier introductions. Directors will generally play dual roles: fiduciary and advisory, with the additional time commitments required, compared to other companies, in fulfilling them.

As early stage companies meet their milestones and move to the growth stage to support execution of their strategy, board composition changes with new investor and independent directors often replacing earlier-stage directors with new skill sets, notably those related to achieving an exit. The experience sought in new independent directors will generally include mergers and acquisitions as well as IPO transaction experience.

Mature private companies

Expect to find greater process and structure on boards of mature private companies. The size of the board is generally a minimum of five people and the board works with standing committees: audit, compensation, and nominating and governance. These companies can also create a separate risk committee to oversee cyber risk, regulatory risk, environmental risk and more recently also reputation risk.

While early stage companies generally embrace and benefit from the lower cost of market entry and business process functionality provided by advances in IT, more mature private companies can be challenged to disrupt themselves and their legacy systems and processes. Directors play an important role in assisting mature private companies to make the leap to onboarding new systems and procedures. This can include participating in the selection of new executives to bring new capabilities and designing new compensation plans that align with an evolving strategy to seize new opportunities as well as assisting with designing a framework through which to assure ongoing focus on innovation.

Boards of mature privately held companies will also periodically bring in third-party experts for various consultancy assignments, including to assess the control environment, cyber risk exposure, and the company’s compensation plan. Findings can prove most helpful to boards in ensuring any needed improvements are made, preserving stakeholder value.

The value of bringing best practices together

I have found that experience as a director at a variety of organizations — early stage, large mature private, public and nonprofit — is valuable in bringing best practices to all. Innovation that takes center stage at early stage companies can assist a director in ensuring that more established companies have appropriate tools in place to drive innovation and have access to knowledge about newer business models that may disrupt their industry or be onboarded to support their company. The emphasis on structure and process at public companies to ensure compliance with SEC rules and exchange rules, and to optimize value assist a director in exposing their benefit and getting adoption by private companies on whose board(s) they also sit.

A director improves her effectiveness in three principal ways:

Participating in continued education — there are many opportunities offered by organizations such as the National Association of Corporate Directors (NACD), Directors and Boards, consulting firms and law firms. Certifications on specific areas such as cyber-risk as well as deep dives on specific topics for an audit committee, compensation committee, nomination and governance committee are all on offer.
Staying informed on industry evolution – this can be done through targeted reading, participating in the industry or an adjacent industry as well as taking advantage of general learning opportunities. Directors need to ensure management is seeing 10 and 15 years into the future and laying the groundwork today to compete successfully in that changed environment.
Sharing her network – this includes serving as an ambassador for the company, making warm introductions to potential clients, suppliers and talent.

Ultimately, the degree of effectiveness of a director depends on the effectiveness of the board as a whole. Companies that are intentional about diversity in experience and expertise on the board, chairs or lead directors who foster collaboration, and directors who are respectful and open to different viewpoints are well positioned to face challenges and capitalize on short- and long-term value-enhancing opportunities.

How Did She Do It? A Q&A with Michelle Bacharach, Co-Founder & CEO of FindMine

Posted on August 18, 2020August 17, 2020 by Kimberly Caro

Michelle Bacharach, Co-Founder & CEO of FindMine

Pulling together a complete, polished look can be a challenge — whether you’re shopping for an outfit or furnishing a room. Fed up with purchases that didn’t work, Michelle Bacharach longed for expert advice that would elevate her wardrobe and décor from ho-hum to a homerun. From 2010 to 2016, while working full time in product management and digital marketing, she pondered solutions that would enable retailers to provide the guidance customers craved without breaking the bank. The result: FindMine, an artificially intelligent-driven content creation engine that acts as a personal stylist. By harnessing machine learning and deep data mining, FindMine gives brands, such as BCBG, The Shopping Channel and Adidas a scalable, cost-effective way to satisfy customers, boost sales and increase profits.

Michelle recently spoke with Carolyn Fikke and Tracey Riese of Golden Seeds, who led the due diligence team for this investment, about the inspiration for FindMine, its evolution and the reasons it’s succeeding. She also offered some surprising advice to would-be entrepreneurs.

CF/TR: Tell us about the origins of FindMine.

MB: I always found it frustrating when I bought a skirt that sat in the closet because it didn’t go with any of my tops, or a couch that clashed with the lamps and rug in my living room. I’m not a fashion expert or an interior designer, so I didn’t know how to make those products look good after I purchased them. I wanted retailers to help me, but eventually I realized they don’t have the resources to give millions of customers advice on all of the products they carry. After obsessing over it for six years, I figured out how to use artificial intelligence (AI) to provide expert guidance in a scalable way that doesn’t demand more resources and involve astronomical costs, and in 2016, FindMine launched.

CF/TR: What market need are you solving and how does your approach differ from others trying to address this need?

MB: FindMine automates and scales content creation so that 95% of a retailer’s products come with guidance on how to “Complete the Look.” We do the same thing a merchandiser does dressing a store mannequin with coordinated pieces and accessories. Those complete outfits sell out quickly because shoppers don’t want things in isolation.

The staff doesn’t have to do any of the work, so merchandising teams experience a time savings of 99%. It’s scalable and cost-effective, with clients experiencing a 2 – 10% increase in total digital revenue. And, our AI-generated looks have been proven to be indistinguishable from those done by human experts. Our approach is very different from personalization or a recommendation engine, which simply holds a mirror up to the consumer without adding expertise or a point of view. If you’re shopping for a couch, for instance, you might see a bunch of other couches, or if you’re browsing through black skirts, you’ll just get more of the same. “Complete the Look” offers expert guidance from the brand’s unique point of view. The brand isn’t commoditized, and the retailer builds trust with customers.

CF/TR: What challenges have you encountered along the way? How have you overcome them?

MB: At first I thought of this as a consumer problem that needed a direct-to-consumer solution, but there were issues with that model. We would have had to raise a lot of money, which wasn’t the right approach for a first-time entrepreneur. But the biggest challenge was trying to solve the problem with limited resources. Eventually I realized retailers have a much larger problem than consumers. Once we focused on the B2B approach, it all came together. We never had to pivot, because we anticipated the challenges before we launched. It took several years to get there, but I’m glad we did that exploration in advance while we were earning income working for other companies.

CF/TR: What’s coming up next for your company? Any big milestones on the horizon?

MB: We built our product as an API (application programming interface) for retailers to create content on the fly. Many use it in emails, on landing pages and product pages, and in chats. But our clients are always asking if they can use FindMine for other tasks and we’re encouraging them. It expands usage, our revenue goes up and we’re becoming stickier with that brand.

For example, let’s say you call a retailer’s help line to find out what bathroom trim lines fit certain valves. The call center agents are limited by their knowledge, which often varies, as well as the resources available to them. They usually go to a knowledge base, but somebody has to create that content. Some of our customers are now using our API to create that knowledge-base suggestion, so agents can be more productive and the customer receives more consistent service.

CF/TR: What advice do you have for early-stage founders?

MB: This may sound strange but I often tell would-be entrepreneurs: If you’re thinking about starting a company, don’t do it. The reason I give this advice is that I spent years thinking about FindMine, because I couldn’t shake the idea and get rid of this obsession. You need that kind of passion and staying power. If you can heed my advice and forget about your idea, it’s not meant to be. If you can’t help yourself, then do it. A lot of people glamorize entrepreneurship, but it isn’t all that glamorous.

CF/TR: Tell us about your experience with Golden Seeds and its network.

MB: We had conversations with Golden Seeds for about three years before they invested in us. They took the time to become familiar with us and gave great advice. During those few years, we raised other financing, initially from friends and family, and developed a clear idea of what we were going after and how we wanted to use funds. We were much more interesting to investors at that point, and Golden Seeds invested in our third round. I like the fact that it’s a network of experts with diverse perspectives, not like a traditional VC firm with a smaller partnership. When we reach out, our questions don’t go just to one point of contact, but to multiple ears, and that’s really valuable.

Learn about Golden Seeds work.

How brands can effectively communicate on social media during the COVID-19 crisis

Posted on July 28, 2020July 28, 2020 by Kimberly Caro

Social media can be a vital link to customers during the COVID-19 crisis — provided it’s used responsibly, Greg Dale, COO at Shareablee, stressed during a recent Golden Seeds Trend Talk. Greg explored the ways brands communicate on social media, sharing insights on which companies do it well and why. Since 2014, Golden Seeds has been an investor in Shareablee, a leading platform for measuring and managing social performance for brands and agencies. The Golden Seeds Trend Talk series focuses on topics that are relevant, instructive and inspiring, and Greg’s observations – summarized in this blog – certainly fit the bill.

Everything changed in March 2020

Greg Dale, COO, Shareablee

When COVID-19 erupted in March, business — like life in general — underwent an almost-overnight transformation. The normal ways of reaching customers suddenly went out the window. Companies pulled back from advertising, instead turning to social media, where consumers were flocking in unprecedented numbers. Our analysis of year-to-date activity and an online survey of 1,000-plus users in March showed a huge increase in traffic across all platforms, with more than two-thirds of respondents using social platforms more than they did before the pandemic hit.

At first, everyone wanted only news and updates on COVID. Social platforms emerged as a go-to source, second only to web searches for COVID news. There is still a strong desire to stay up-to-date, with some users checking Facebook, Twitter, Instagram, YouTube and other outlets up to 10 times a day.

But over time, we’ve seen a gradual shift toward different kinds of content—posts that put the facts in perspective, exploring what the “new normal” looks like and what’s coming next. Rather than a strict diet of news, consumers are hungering for a balance of serious information and messages that lighten the mood and put a smile on their face. Nearly half of people in the U.S., particularly males and younger consumers, want more funny content or a mix of facts and fun. They also want hopeful, optimistic messages that remind them of the good in the world and provide hope for tomorrow. They’re seeking, and sharing, positive posts that make them like the world we’re in a little bit more.

What kind of posts and strategies are companies using?

Companies are revamping their media strategies to satisfy these evolving preferences now that they’ve gotten over the initial panic and uncertainty about what will work in this new world. A look at a few key vertical markets demonstrates some of the new themes that have emerged.

Publishers are seeking to remain relevant by offering articles on home exercise, mental health support and tips on staying healthy at home. Influencers are trying to offset social isolation by bringing audiences together online for various events.

Retailers are stressing positive, hopeful messages with the theme of caring for one another during these difficult times. Grocery chains are setting up food donation boxes so nobody goes hungry. They’re also turning to humor, suggesting this is a good time to upgrade your linens since you’re probably spending more time in bed.

Manufacturers are taking a similar approach, highlighting the ways they are supporting those who need help — out-of-work restaurant workers or first responders, for example. They’re showing their good citizenship, switching gears to make hand sanitizer or face shields. Communications companies are doing their part, with telecommunications providers such as AT&T giving free service to healthcare workers.

Sports brands are humanizing this isolation, underscoring that we are all in this together — for example, showing how athletes, too, are now working out at home. They’re assuring fans they are missed, encouraging team spirit and reminding them that this won’t last forever.

Of course, not every execution is flawless. Companies must recognize missteps and be agile enough to recover from them. Victoria’s Secret, for example, got negative feedback to a post showing a woman dressed up for a night out, at a time when most of us were stuck at home. The company quickly pivoted, repositioning the ad with a more appropriate message: Dress up for an at-home night with your partner or even just for yourself.

While engagement on social platforms is up, new content generation is down. Businesses have quickly learned that they can successfully repurpose existing content for the current environment, remixing and reusing old material in new ways. NatGeo is using previous footage to highlight the fact that animals in the wild are benefiting from social distancing from humans, then goes on to educate viewers about those animals. In an interesting twist, some companies are finding that posts that didn’t work before do now because there are new, bigger audiences spending more time online. One caveat here: If a video or photo was shot previously and reflects conditions before the shutdown, it’s important to note that so it’s not seen as inappropriate.

Lessons learned from successful posts

The most successful of these social media campaigns have a number of things in common and offer useful takeaways:

Authenticity is imperative. Talk directly to your audience.
Lower production values are OK. The public knows professional crews can’t function now, and they’re willing to accept videos created with phones and tablets.
The most successful videos are short and to the point. The key is more videos, not ones that are longer.
Storytelling has a new focus. The emphasis is on taking care of yourself and your family, such as tips on cleaning house, teaching kids about germs and cooking restaurant-style recipes.
Humor can lighten the burden of isolation. Consumers want content that makes life less stressful.
Existing content can resonate with consumers today if it’s appropriately repackaged.

What you can do

Almost all categories of business could be doing more to communicate with, connect with and entertain their audiences right now. Here are four concrete steps you can take to enhance your own marketing efforts:

Create social content that’s useful, informative and/or empathetic about the “new normal.”
Offer your customers valuable distractions.
Focus on key themes: What’s happening? What does it mean to me and others; how do I cope; can I find a way to laugh about parts of this? As citizens: how can I, and we, help; what’s next? At all costs, avoid any appearance of opportunism.
Manage your community. Engaging with other brands on social media opens up a myriad of content opportunities.

How to measure success in a COVID environment

It’s important to track performance so you can refine your strategy as needed. But the metrics you’ve used in the past may not apply right now, so be prepared to redefine benchmarks. You won’t see the same numbers you did a few months ago, but that doesn’t mean a post isn’t successful. Category, platform and brand benchmarks should adapt to new measures of success.

In the near term, metrics that evaluate your brand perception will be critical. The key metric to focus on is how many users are engaging with your content by clicking, liking, sharing or commenting. Dial in on content that evokes pass-along value and dialogue, and pay attention to the social engagement types.

Stay on your toes. Analyze post performance in real time and optimize as much and as quickly as needed. Categorize your posts by themes and platform formats and be nimble enough to get rid of what’s not working or to tweak it to make it work.

Doing nothing and staying silent for fear of saying the wrong thing is not a strategy. If you go dark or leave business-as-usual content up there, then you are not trying. Although many brands initially hesitated for fear of a backlash to inappropriate messaging, those that dipped a toe in the water and adapted until they found the right themes and approaches are being rewarded.

Make sure you’re among them: Let customers know who you are, what your company is about and how you’re going to help them get through this crisis to the other side.

Learn more about Shareablee here.

How, and when, will the world go shopping again?

Posted on July 14, 2020 by Kimberly Caro

The retail industry has undergone enormous upheaval because of COVID-19 and the resulting shutdown. With consumer behaviors changing, retailers are struggling to adapt, retail expert Deborah Weinswig reported at a recent Golden Seeds Trend Talk. Deborah is CEO and Founder of Coresight Research, a research and advisory firm specializing in disruptive technologies reshaping today’s retail landscape. Her comments, summarized here, explore the current situation and look ahead to the next steps. This is one in a series of Golden Seeds Trend Talks focusing on topics that are relevant, instructive and inspiring.

When you think of industries disrupted by COVID-19, retailing is probably at the top of the list. The pandemic forced physical stores to close, causing a major shift to online shopping. That placed new demands on retailers, who rushed to optimize their supply chain inventory, rethink their merchandise assortment and attempt to forecast demand in a market full of unknowns.

Here’s a look at recent developments and the current landscape, along with a glimpse of what’s ahead.

Three months of massive change

During the first three months of COVID-19, the industry experienced a tectonic shift. In February, we were shocked as we saw what was happening in the rest of the world. In March, we realized that COVID-19 was hitting this country. Sales of essential goods spiked as consumers restocked pantries, while sales of nonessentials dropped 25% from February to March. In April, overall sales volume fell as restocking and hoarding subsided. We started to see retail recovery scenarios.

Now that the dust of the early days has settled, a few trends have become clear—some painfully so. With stores shuttered and consumers sheltering at home, there has been a significant move to shopping online. That shift, coupled with falling demand and financial distress, is forcing retailers out of business.

At the beginning of the year, we expected about 8,000 closures following the “cleanout” of 2019, which saw nearly 10,000 closures. On March 1, we raised our 2020 estimate to 15,000 store closings. In April we upped it to 20,000 to 25,000. We hope that’s too high, but we recognize the serious challenges facing physical retailers.

Those business failures will affect a large segment of the population, most of them women. About 16 million people work in retail, the second-largest workforce after healthcare, and 70% of hourly associates are female.

Reopening: What it looks like

As many states loosen stay-at-home restrictions, consumers are prioritizing other activities ahead of shopping. They’re anxious to visit friends and family, get their hair and nails done, and dine out—activities that were curtailed for months.

They won’t stop shopping completely, of course. Everyone will continue to buy the basics, and nonessential demand will return gradually. Looking ahead to the holidays, most retailers are buying 50% of the volume they did in 2019, and they expect holiday demand down about 20%.

On the retailer side, reopening is confusing. Retailers say they have little notice about start dates, giving them scant time to finalize preparations. They’re also confronting a maze of regulations that vary not only by state but by municipality.

So far, traffic is up, probably because cooped-up consumers want to get out. Though online shopping has been a lifeline, many prefer to see products before they buy them. Shopping in person also enables them to know instantly whether an item is available—no out-of-stock surprises. Open-air shopping districts are doing better than enclosed malls, according to our survey, which shows that about half of shoppers are avoiding shopping malls and centers.

Retailers can win shoppers back by offering curbside or drive-through pickup, contactless delivery and payment, and in-store inventory replenishment. They can also make shoppers feel safer with visible precautions such as taking customers’ temperature, providing masks and closing dressing rooms.

Selling packaged items from backroom inventory is another smart tactic. Consumers choose an item displayed on the floor, then a sales associate uses digital technology to check stock and supplies a fresh product from the storeroom. Besides assuaging buyer fears, this will eliminate the need to restock floor displays and manage try-ons.

On the downside, once stores reopen, consumers will be returning online purchases they couldn’t examine, touch or try on. Returns have always been a problem for the industry, and the pandemic will only make it worse. Last year, the estimated value of returns was $480 billion, and that’s likely to rise this year. Retailers are exploring ways to reduce future returns, which represents a significant opportunity to improve margins. Fewer returns would reduce waste and keep products available for other shoppers.

Department stores are adapting

Deborah Weinswig, CEO and Founder of Coresight Research.

All these developments have forced major innovation in the retail industry—as much in the past 10 weeks as in the previous 10 years. There are changes in assortment, with inline retailers paying rent to major department stores, such as Macy’s, to sell their products. Department stores are consolidating inventory, moving product to open stores from locations that have closed.

Retailers have reconfigured calendars for apparel and footwear, affecting the entire supply chain. They’re rethinking whether to buy merchandise for the current season or move to a seasonless assortment. Some retailers canceled spring, summer, even fall seasons.

Sustainability underlies some of those decisions. Those who canceled seasons packed the clothing away and brought in the next season. Others are liquidating inventory at off-price stores or on new platforms. One interesting trend is the unprecedented movement of goods from the U.S. to China, liquidating in a different market at higher margins. Alibaba, a Chinese company, will accept U.S. inventory, build a storefront and help retailers with marketing.

Some landlords are helping retailers “on the bubble” stay open, offering concessions such as rent abatement or forbearance and the option of tacking missed payments on later in the lease. There’s an incentive for them to do so. If a mall loses an anchor store, that changes leases based on co-tenancy, so it will benefit the landlord to help other retailers.

We’re urging retailers to have one-on-one conversations with their landlords to see if they can negotiate rent in line with true sales. We’re also advising retailers to work with startups to obtain new technology solutions at lower cost than from major providers.

The pandemic has wrought major changes in brick-and-mortar stores, and that’s going to continue. Customer interactions with sales associates will be different and more customized. Shoppers can use “virtual try-ons” of cosmetics and clothing in stores, a technique borrowed from online. Contactless technology is another trend: Robotic assistants can help shoppers find items in big-box stores, for example.

The shopping experience itself may become more entertaining. We believe retailers should take a leaf from their counterparts in other countries and make their stores more fun. Offering prizes and freebies and making a “festival” of shopping can entice shoppers back to physical stores.

In the wake of COVID-19, shutdowns, mergers and acquisitions in the retail market are very likely, but retailing will go on. There is still a need for physical stores, though they won’t look the same, and shopping will be a new experience as we move forward.

Cognition Therapeutics Receives $75.8M Landmark Grant for Alzheimer’s Clinical Trial

Posted on July 8, 2020July 16, 2020 by Kimberly Caro

Lisa Ricciardi, CEO at Cognition Therapeutics

Dr. Susan Catalano, Co-Founder and Chief Science Officer at Cognition Therapeutics

We’re thrilled to announce that Golden Seeds company Cognition Therapeutics recently received a $75.8 million grant to fund a Phase 2 clinical trial of the therapeutic CT1812 in individuals with early Alzheimer’s disease.

We’re continually inspired by the incredible work being done at Cognition Therapeutics, a clinical-stage drug development company focused on the protection and restoration of synaptic function in Alzheimer’s disease and other neurodegenerative disorders. This grant is a testament to the groundbreaking research being done at Cognition Therapeutics.

The National Institute on Aging (NIA) of the National Institutes of Health (NIH) awarded the grant funding for the trial, which will be conducted over five years at 35 leading academic sites with expertise in Alzheimer’s clinical trials. The study will focus on 540 individuals with mild cognitive impairment from Alzheimer’s disease or early Alzheimer’s. Trial participants will be randomized – receiving either CT1812 or placebo for 18 months, and biomarkers will be used to determine changes in disease progression and neurodegeneration.

We recently caught up with Cognition Therapeutics Co-Founder and Chief Science Officer Dr. Susan Catalano, and recently appointed CEO Lisa Ricciardi to discuss the grant, how to enroll in clinical trials, and other exciting updates at this Golden Seeds-funded company.

PW: Congratulations on this landmark NIH grant. Can you explain what the $75.8M, five-year grant funds, specifically?

LR: Susan started working on this well over two years ago and it’s really the capstone of our early work. It’s an opportunity to expand on all of our early studies and work, and a major milestone for our company as this will tell us if our drug is working.

SC: This is a special grant in that it’s a peer-reviewed clinical trial. It’s supported independently by the NIH and NIA. We went through an incredibly competitive process scored by a steering committee composed of leading world-wide scientific experts in clinical trials and neurodegenerative diseases. The magnitude of this grant dwarfs any other NIA-funded grant as top grants have previously been in the $10-14 million range. And that’s really a recognition of what it takes to properly study this disease.

PW: So many people today are impacted by Alzheimer’s disease, but can you give us a sense of how big a problem it is globally, both in terms of the number of cases and what it costs our healthcare system?

SC: We are in excess of 16 million cases worldwide and almost 6 million in the U.S. In terms of cost, it’s an astonishing $244 billion a year in the U.S. in direct expenses and the indirect costs are even worse. And those direct and indirect costs together are the No. 1 cause of bankruptcy for families with a loved one with Alzheimer’s.

LR: On top of the nearly 6 million cases in the U.S., we’re averaging another half-million cases a year. Again, those indirect costs are a big part of the problem. In general, from the time of diagnosis, Alzheimer’s patients are living five to seven years, and in that window they need 24-hour-a-day care. Generally, people with Alzheimer’s are living longer, which increases the need and costs associated with around-the-clock caretaking. Alzheimer’s alone – just this one disease – could bankrupt Medicare.

PW: You have a novel approach in how you’re targeting Alzheimer’s disease. How is your approach different than what we’ve seen before, particularly theories and associated trials that target the amyloid protein?

LR: It’s a mission to work in this area of disease research because so many companies before us have failed. But we’re targeting the disease in a fundamentally different way. What if it’s the first part of the puzzle toward a cure? It’s a satisfaction of a lifetime to work in this field and to work with Susan and the team at Cognition Therapeutics.

SC: Our drug candidate CT1812 stops the toxic amyloid beta protein that sets Alzheimer’s disease in motion and keeps it in motion by targeting the sigma-2 receptor, and this is a completely new approach and a new way of looking at the disease. There are no other drugs that work the same way.

It’s so unique that the NIH and the NIA refer to us as a “next generation anti-amyloid” therapeutic. For many years, the focus had been on the fibril form of the amyloid beta protein (a polymer that’s arranged in a very long chain), but actually the most toxic form of the protein is shaped like a globule or sphere, called an oligomer. The reason it’s so toxic is that it binds to brain cells and induces changes that disrupt normal memory formation. As those changes persist, the brain cells die. Stopping Alzheimer’s disease progression is going to depend on stopping this fundamental toxin. CT1812 is the only drug that does this effectively.

PW: How do prospective participants learn about and enroll in clinical trials?

SC: The best place to look for information regarding clinical trials is to check (and check frequently) clinicaltrials.gov. That has the main contact number for each clinical trial site, and the inclusion/exclusion criteria. We’ll, of course, advertise our trials, as will our 35 academic sites. People need to consult their physician before participating in any clinical trial.

PW: Are you currently working on any other treatments for neurodegenerative diseases beyond Alzheimer’s?

SC: We have begun exploring age-related macular degeneration and Parkinson’s disease, two closely related diseases where there is a sound scientific rationale for sigma-2 receptor antagonists to be therapeutic.

PW: You recently announced a new CEO. Can you comment on how you expect this leadership change to shape the company’s future?

SC: We are incredibly fortunate to have Lisa as our CEO. Her background experience is perfectly suited to where we are as a company today.

LR: I served as a Cognition Therapeutics board member for a year and was recruited by the former CEO. When the CEO opportunity came up, I was excited, particularly because of the environment we were in. My background is split between transactional – both buying and selling companies – and spending time with teams launching drugs, and that felt like the perfect combination to broaden our focus.

My experience includes business development and banking, negotiating M&A and collaborations. At Pfizer, I worked closely with commercial teams to launch Norvasc, Zithromax and Trovan. In retrospect, it feels like an excellent combination of experience to lead Cognition at this time. I give a great deal of credit to Susan for the team that she built and the infrastructure she put into place.

PW: Other than the exciting grant and new CEO news, what’s new with Cognition Therapeutics since the last time we featured you in spring 2018?

SC: We learned a great deal from the changes that occurred in the first set of 24 patients we treated for six months with CT1812 compared to placebo-treated patients, and there are some very exciting findings that allow us to look at treating other diseases with our drugs in a very meaningful way.

PW: Congratulations again on this historic achievement. We’re always impressed by the groundbreaking research at Cognition Therapeutics, and we’re thrilled to see it being recognized by the scientific community.

Read more about Cognition Therapeutics – including the company’s origins, challenges they’ve encountered and how they’ve overcome them, and how Golden Seeds’ network has been valuable – in this earlier Q&A.

Helping Companies Navigate the Storm of COVID-19

Posted on June 25, 2020July 8, 2020 by Kimberly Caro

Jeff (J.D.) Davids recently participated in a Golden Seeds Trend Talk, a series of discussions that are relevant, instructive and often inspiring, about how angel investors can help companies survive COVID-19 and thrive as the economy restarts. During the discussion, J.D. shared best practices and lessons learned from 25 years in the trenches of venture capital and entrepreneurship. He’s eminently qualified to offer such advice, having launched eight VC-backed startups, three IPOs and three acquisitions. He’s also mentored hundreds of startups and chalked up more than $1 billion in completed deals. Here’s a summary of the wisdom J.D. shared with Golden Seeds.

COVID-19 is an event we didn’t see coming, and it will have a lasting effect on all businesses. As we struggle to adapt, it’s helpful to look back at other Black Swan events to see what we learned from them and what we can predict based on those experiences.

We’ve lived through two major disruptions since the turn of the century: 9/11, which had a major impact on lives and finances, and the Great Recession of 2008, when the economy melted down. Those events taught us to expect fallout on many fronts: event cancellations and reduced travel, a big hit on revenue, and a pause in fundraising.

There are three keys to successfully navigating the storm of COVID-19 as an angel investor: creating a situation report, recognizing your roles and responsibilities and creating a game plan.

Creating a situation report

Let’s start with the situation report. This is all about understanding what is going on around you and uncovering where you as an investor can help your companies and CEOs. Ask yourself:

How much of your portfolio is at risk?
What is your early-stage portfolio allocation?
Is your early-stage portfolio adequately diversified?
What would you advise a client or colleague to do?

Angel investors need to know the state of their entire portfolio, which is often difficult. You have to visualize the worst-case scenario, look past it, then build your action plan and get to work.

Defining roles and responsibilities

Jeff (J.D.) Davids

Understanding your roles and responsibilities is essential. Your role during this time is to gather information from your CEOs, ask good questions and ultimately be the calm, steady go-to resource for your companies. In order to do this, you need to ask CEOs three key questions:

What is working?
What is not working?
How do you need help?

When speaking with CEOs, you must be the voice of reality. Be honest about cash flows and problem-solve with the team. Help them balance staffing decisions and other expenses, with the goal of surviving the pandemic. Assist them in setting clear metrics and expectations. You may have to help them make tough choices, including a possible sale or merger.

Unfortunately, some businesses may not make it. If a shutdown is inevitable, support the company, plan an orderly wind-down and help identify new opportunities.

Lead your clients to discover solutions. Remember, leaders are built during times like these. Your focus should be on maintaining long-term relationships. The hope is that you will continue to build great companies with these entrepreneurs.

Build a game plan stressing survival

A detailed game plan is a must. During uncertain times like these, it’s all about cash flow and survivability. The first step in building a strategy is to take a portfolio view. Look at all of your companies and adjust 2020 forecasts based on revenues and expenses, hiring and layoffs and government assistance.

Create a KPI dashboard that shows the months of cash in the bank, weekly revenue and pipeline, weekly expenses and government benefits. Determine the best approach to managing cash. Can your companies stretch accounts payable, get prepayments from customers and/or file for and receive government assistance? Do they need to sell the company to survive?

When analyzing your portfolio, take a triage approach to determine a company’s viability.

Who will survive, and who won’t? How many months of cash do they have in the bank?

Where can assistance make the biggest impact?

Strive to be constructive. Offer help with your clients’ customers. See if you can help CEOs find new opportunities. If companies have relaunch plans, help them figure out how to stimulate new customer purchases and start to plan those campaigns now.

Focus on potential winners

If you’re looking to invest in companies now, focus on industry sectors that may benefit from the current situation, such as online education, online conferencing platforms and telehealth.

Remember things change quickly. As a leader, you need to be well informed and ready to adapt.

Among the data that investors should be tracking are the number of COVID-19 cases trendline, earnings reports, GDP Growth, S&P 500 / DJIA, P/E Multiple rise, fund flows into public equities, sector rotation, M&A activity and IPO activity.

There’s no question these are challenging times, but we’ll get through this as we did past crises. Your job is to serve as the steady hand on the tiller, help CEOs frame the challenges and inspire collaborative problem-solving. Communicate with your clients, offering constant updates with full transparency and a dose of empathy. Above all, don’t panic—and don’t let your CEOs panic, either. The key is to remember the basics: Stay informed and keep your eye on the prize.

To learn more, visit jddavids.com, smartmoneyventures.com or email jd@smartmoneyventures.com.

How did she do it? A Q&A with Carolyn Rodz, Co-Founder and CEO of Hello Alice

Posted on June 18, 2020June 18, 2020 by Kimberly Caro

Like many great ideas, this one started with a conversation. Carolyn Rodz and Elizabeth Gore were discussing the benefits that small businesses offer the world and brainstorming ways to support them —especially underserved companies owned by women, people of color, the LGBTQ+, military communities and those with disabilities.

Their shared passion gave rise to Hello Alice, a for-profit social enterprise that uses machine learning to match business owners to personalized opportunities and resources. Named after the character Alice from “Alice in Wonderland” (who, like many entrepreneurs, “believed as many as six impossible things before breakfast”), Hello Alice is making the business ecosystem more inclusive and accessible. Carolyn, Co-Founder and CEO, recently shared her experiences and insights with Gwen Edwards, Managing Director of Golden Seeds, who led the due diligence team for Golden Seeds.

GE: Tell us about the origins of Hello Alice.
CR: Hello Alice is what I wish I had when I started my first business 15 years ago. After a career in investment banking, I made a long, hard, expensive transition into entrepreneurship. It wasn’t until I sold that company that I realized how much I learned. When I started a second business, I discovered networks and opportunities I didn’t know about the first time, and doors opened up. With Hello Alice, our goal was to put all entrepreneurs on an equal footing, giving them the knowledge, opportunities and connections they need to thrive from day one.

A free digital platform that makes smart, instant connections between business owners and resources they need to accelerate sustainable growth, Hello Alice utilizes machine learning to prioritize access for women, minorities, veterans and other underrepresented business owners. The platform provides access to knowledge, funding, networks and services.

As a result of this, the company has a valuable data set that is utilized by companies to guide their sales, marketing and diversity goals. We give companies an opportunity to tell their brands’ unique stories while nurturing community interaction, analyzing individual businesses and engaging their target prospects, with the goal of creating lifelong loyal customers.

Hello Alice co-founders Elizabeth Gore (left) and Carolyn Rodz.

GE: Can you tell us about your partnership with your Co-Founder Elizabeth Gore?

CR: Elizabeth, who’s chairwoman and president, is the greatest Co-Founder. We have incredible alignment of our business and personal values and deep trust and respect for each other. There’s never a question about what we’re trying to build, what’s important and what direction to take. We don’t agree on every decision, but we know we’re coming from the same place.

And our working styles are complementary. Elizabeth goes full speed ahead, like she’s wearing a jet pack, pushing everything forward. I’m the opposite — off in the weeds working on the details. Our push/pull creates a happy medium. We realize neither of us would work as well without the other.

GE: What market need are you solving at Hello Alice, and how is your approach different from how others have addressed this?

CR: Statistics illustrate the unfilled need and the problem we are solving: Only 2% of women-owned businesses have revenue of more than $1 million a year, and only 2.2% of venture capital funding goes to women-founded companies.

Women, minorities and veterans are often under resourced. Business owners and other groups were tackling this issue at a micro level, but we’re targeting it at a macro level.

We believe that each person’s situation affects their ability to succeed — where they live, how much capital they’re starting with, their networks, education and more. We knew technology could solve the problem at scale because the needs are pretty formulaic: how to get money, attract the best talent, acquire customers and so on. We use artificial intelligence to build machine-learning algorithms and decision trees and make specific recommendations based on a user’s profile. The information gets better as we get more user input.

GE: What challenges have you encountered along the way? How have you overcome them?

CR: Fundraising was painful and slow, but the struggle was good for us. If money came easily early on, we wouldn’t have made smart decisions. Having to bootstrap forced us to test and iterate quickly and to prove key metrics. Investors asked smart questions and we learned from them. I encourage others to respect the process. If it’s too easy you won’t get what you need.

Staffing has been another challenge. As a lean startup, we needed generalists who could do many things. But as we grew and started working with bigger partners, we needed specialists and experts. Adjusting staffing was difficult for us personally — every team member contributed to our success — but we had to let some people go as our business needs changed.

GE: What’s coming up next for your company? Any big milestones on the horizon?

CR: COVID-19 has been a game changer. We’ve always recognized that funding is the number-one need for small businesses, and it became more urgent with the pandemic. We pivoted quickly and worked with our partners to get as much money into their hands as possible. MasterCard made a $250 million commitment to small businesses, which we’re fortunate to be a part of. We’re also working with Verizon for grant funding, mentorship, site content and more. We launched a grants program that any business owner can apply to. But money alone isn’t the solution; entrepreneurs need guidance and support, and Hello Alice provides that.

GE: What advice do you have for early-stage founders?

CR: Be transparent about the challenges you’re facing and how you’re addressing them. You also have to be clear on priorities. You might hear about 10 different needs and you have to decide which are most important — and say “no” to some. If you are transparent, people are more receptive. Sometimes that means more conversations. I remind myself that as the CEO I am aware of everything going on in the company and always have the complete picture in mind however, my colleagues may only see one small piece. Taking 15 minutes to give them context will save confusion and frustration.

GE: Tell us about your experience with Golden Seeds. How has the network been helpful to you?

CR: The personal interactions with Golden Seeds are amazing, and the networking is invaluable. Many of those in our network are women, which is rare in a male-dominated business world. It’s nice to talk with other women facing similar issues. It’s easy to get in your own bubble, but now we’re exposed to diverse businesses all over the country, and the community support is wonderful. We also value the professional experience of our investors. We view them as part of our team and consider what they can bring to the table. Golden Seeds was a no-brainer. They’ve given us so much value beyond money alone.

For more wisdom like this from other incredible female leaders, follow Golden Seeds’ blog

Our reflection on racial equality, access to capital; and a conversation with Jill Johnson, founder of Women of Color Connecting, Making Black Angels.

Posted on June 16, 2020June 16, 2020 by Kimberly Caro

We are deeply moved by the heartbreaking events of the past several weeks that are a continuation of centuries of racial inequality. At Golden Seeds, we are looking both inward and outward to ensure that we learn, evolve and act.

Our organization was founded in 2005 with the mission of gender diversity and inclusion. This powerful idea has informed our 15 years of funding women-led companies. We are proud of the progress made to date, yet we are still humbled by the challenges of achieving real parity for female entrepreneurs, especially female black founders. We are acutely aware that women entrepreneurs of color, particularly those who are black, face a much steeper climb to achieve funding and success. After all this time, more than 85% of venture capital still goes to all-male teams, with only a tiny fraction of the remaining 15% going to black women founders.

A principal goal of Golden Seeds is to create an environment in which women entrepreneurs are welcomed, seriously considered for funding, treated respectfully and benefit from constructive feedback. Similarly, we endeavor to create an environment for angel investors that is inclusive and productive. However, we must ensure that our environment is equally welcoming for entrepreneurs and investors of color. We acknowledge we are not where we should, nor want to, be. We are committed to continuing our work to improve.

We will expand our efforts to create conditions that foster the likelihood of funding and the support of more diverse entrepreneurs. We are committed to actively aligning ourselves with organizations that are focusing on these important issues.

We can and will do more to engage with minority investors. We welcome their insights, their candor and their perspectives. We are committed to recognizing bias in ourselves, calling it out, learning and improving. Entrepreneurs and investors will benefit immeasurably from a more diverse entrepreneurial ecosystem.

A Conversation with Jill Johnson, Co-Founder, Institute for Entrepreneurial Leadership and Founder, Women of Color Connecting and Making Black Angels

Jill Johnson is the Co-Founder of the Institute for Entrepreneurial Leadership. She is also the Founder of Women of Color Connecting and the Making Black Angels movement. Since 2002, Jill has been a pioneering and unrelenting voice for inclusive entrepreneurial ecosystems. She is at the forefront of raising awareness and creating change.

Golden Seeds has been collaborating with Jill over the past 18 months to support her organization and to deepen our understanding of the complex issues her organization is tackling. She is an important advisor to Golden Seeds on these critical issues. We admire and appreciate her work and that of her colleagues in the Making Black Angels movement.

Below is a recent interview with Jill about diversity, inclusion and her views about a path forward.

Golden Seeds:

Jill, you have been a leading voice for a long time advocating for inclusive entrepreneurial ecosystems. Tell us about your activities to increase support for black entrepreneurs.

Jill Johnson:

We founded the Institute for Entrepreneurial Leadership (IFEL) in 2002. Headquartered in Newark, N.J., IFEL supports economic development through entrepreneurship. We are experts in creating and implementing small business programming in support of larger economic development objectives. Our mission is to eradicate the systemic barriers that prevent entrepreneurs of color from being able to access the knowledge, networks and capital required for business success. Through these years, we have supported thousands of entrepreneurs with our resources and programs.

In 2018, after deep introspection, I decided it was time for a pivot to focus our work on systemic-level issues. That is when we started the Women of Color Connecting program to focus on bridging the relationship divide between Women of Color entrepreneurs who have the potential to grow, scale, and exit and those who can support their success. As you know, it is through the Women of Color Connecting program that we came to work with Golden Seeds.

Golden Seeds:

You often speak about the many challenges that black entrepreneurs have in funding their companies. Can you elaborate on those challenges?

Jill Johnson:

While the terrible events of the past several weeks, as well as the ongoing pandemic, have led to increased public discourse about wealth inequality, this is an issue that has been at the core of our work since our inception. The median white household wealth in the United States is $171,000, compared to $17,000 for black households. Among the reasons why this shocking statistic matters is how it impacts access to capital conversation.

When we consider the source of capital to start businesses, personal savings and credit account for $185 billion of the money that funds businesses. Next comes friends and family, which account for another $60 billion, and then venture capital and bank financing, which together contribute about $36 billion. Angel capital is the fourth-largest source of funding at $20 billion. Given that the largest sources of capital are based on personal wealth, it is easy to understand why the black community can’t invest in itself. And that means that many high potential black entrepreneurs simply can’t get started – and those who do have a tough time getting on the path that leads to building big companies. These entrepreneurs are missing out on the opportunity to build wealth for themselves and their employees. This negatively impacts our economy in so many ways.

Golden Seeds:

As you know, Golden Seeds is an angel capital network that invests in women entrepreneurs. What would you like to see from angel investors to ensure that black entrepreneurs have the opportunity for funding?

Jill Johnson:

The solutions are complex, but it must start with being intentional about creating the conditions for black entrepreneurs to be welcomed, mentored, considered and funded. Without funding, they just can’t get off first base. If investors are serious, they need to realize the suggestion of raising significant family and friends capital is a non-starter for most black entrepreneurs. It would be very helpful if investors could be prepared to be part of the “family and friends” capital, not just wait for it. When you think of the stark wealth gap in this country, it seems clear that if there is to be real progress, white investors will need to participate in funding more diverse entrepreneurs.

Most groups of investors are white — often mainly white men. The more diverse the investor groups are; the better. This is no different than any other conversation about diversity. Diverse groups have more far-reaching conversations, reflect diverse opinions and create an environment of inclusiveness for all. This can make a very big difference to black entrepreneurs who appear before such groups to seek funding.

The job isn’t finished with writing one or more checks. Black entrepreneurs, like all entrepreneurs, need the support, guidance and mentoring their investors can provide. Investors help to open doors, they help to steer founders toward solutions, and they share the experience of their successes and failures. If you don’t have that support system, you are at a disadvantage, often learning through trial and error, which can be costly. If financial resources are limited, the mistakes that are teaching moments for funded entrepreneurs become nails in the coffin for black entrepreneurs. We would urge the angel investor community to focus on the many ways — large and small — they can fuel the success of these companies.

Golden Seeds:

Several years ago, you launched the Making of Black Angels campaign. Please describe that initiative.

Jill Johnson:

Despite the wealth gap problem, there are many black people who have the financial capacity to become angel investors. I started talking with people in my network only to find out that many were not aware of angel investing as an asset class and had never been invited to explore investing through an angel group. We launched the Making of Black Angels campaign to drive greater inclusion in the angel investing sector. Engaging in the angel community creates an opportunity to build bridges to communities of wealth and networks of influence. Long term, we believe this will open doors for black entrepreneurs. Right now, our focus is on increasing awareness about angel investing within the black community and cultivating a pipeline of new black angel investors who will join existing angel networks, such as Golden Seeds. We have formed a Leadership Council, which includes experienced angel investors. This is the way we hope to enable the diversity of thought I spoke about earlier.

Golden Seeds:

We have often spoken about the parallels between Golden Seeds and Black Angels. Can you comment on this?

Jill Johnson:

The parallels are exactly why our Black Angels campaign is so important. We think that those who have the capacity to be angels can be important leaders and advocates for black entrepreneurs. Just like the women who started Golden Seeds, Black Angels can help create an environment in which black entrepreneurs will be seriously considered for funding. While there may be angels that we cultivate who want to exclusively support black entrepreneurs, we are encouraging our Black Angels community to join existing angel networks to be the bridge for black entrepreneurs to the vast wealth of resources that exists within those groups. We want Black Angels to become active participants in entrepreneurial funding systems for many reasons, but notably because they can be a conduit for the tremendous opportunities that black entrepreneurs can bring to the table. Investors are leaving money on the table by not being more inclusive.

Golden Seeds:

You often speak about the need for allies and champions. Can you expand on this idea?

Jill Johnson:

Lack of funding for black entrepreneurs isn’t going to change without recognition and acknowledgement of the underlying issues. It’s easy to be supportive of others pulling themselves up and it makes people feel good to reach back to offer a helping hand to those in need. What isn’t so comfortable is to be introspective and recognize the complicity that you play in maintaining a pernicious status quo that perpetuates inequality. The wealth gap started with centuries of slavery and then legal barriers that prevented black people from building wealth. The wealth creation journey for most black families started within the last 60 years. Being an ally starts with acknowledging this simple truth.

Allies involved in the investor ecosystem can play a tremendous role in changing the wealth trajectory of the black community within a generation. Being an ally requires taking action. As an ally you have a responsibility to educate yourself about the facts, to speak up about injustices, to recognize your own biases and overcome them. An ally becomes a champion through intentionality about creating access, i.e., inviting a black friend or colleague to a professional or social event that presents new networking opportunities for that person, building relationships with black founders, requiring that the teams in which you invest have at least one black person with meaningful equity, inviting black accredited investors into your deals. The needle will move regarding the access to capital problem when more investors become champions.

Golden Seeds:

In closing, how can we best amplify the work of the Black Angels community?

Jill Johnson:

We have really enjoyed getting to know the Golden Seeds community and look forward to deepening our relationship over time. As a nonprofit, donations are always needed. What we really want is for people to be introspective and think about how they can open a door for someone else who is not part of their existing community. Just the act of making an introduction can have more impact than you could imagine. Opening doors starts with developing relationships. Make an effort to expand your network and meet more black people. If you don’t know where to look, start with events that target black entrepreneurs or black investors. They exist and you will be welcomed. I invite people to connect with me on LinkedIn and share information with their respective networks, and we invite everyone to learn more about Making Black Angels and to get involved. Together we can make a difference.

Learn more about Making Black Angels to get involved or donate.