News Archives - Page 4 of 12

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.

How did she do it? A Q&A with Katherine Jin, Co-Founder and Chief Technology Officer of Kinnos

Posted on June 9, 2020June 9, 2020 by Kimberly Caro

Katherine Jin, Co-Founder and Chief Technology Officer of Kinnos

There’s an urgent need to stop COVID-19 from spreading and effective disinfection is the key. Studies have shown that improperly cleaned healthcare surfaces cause unnecessarily high rates of infections. To address that problem, Katherine Jin and two fellow Columbia University undergrads—Kevin Tyan and Jason Kang—founded a company called Kinnos during the 2014 Ebola epidemic.

Kinnos’s product, Highlight®, colorizes disinfectants so users can see when a surface is completely and properly cleaned, which can slash transmissions. Simply put, the company’s goal is to empower people to protect themselves and others through disinfection you can see.

Katherine recently shared her experiences and advice for other startups with Laura Davis, Managing Director of Golden Seeds, who led the due diligence team for Golden Seeds.

LD: Tell us about the origins of Kinnos.

KJ: In 2014, Jason, Kevin and I entered the Columbia Ebola Design Challenge hackathon to address the Ebola crisis in West Africa. Healthcare workers told us decontamination wasn’t being done correctly, and infections were rampant, especially among doctors, who accounted for one in 20 of those infected. Realizing there was a need for disinfection you can see, we came up with the idea to colorize disinfectants. The color shows when the entire surface has been covered and disinfected. It fades when the appropriate amount of time has passed (about 10 minutes in the case of Ebola).

We won a half-million-dollar grant from USAID, went to Africa and worked with NGOs. It was amazing and life-changing. We believed that this idea could improve lives around the world, not just during epidemics but in all healthcare settings where infections such as MRSA and C. diff are serious problems. That’s how Kinnos was born.

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

KJ: Our goal is to help people use disinfectants effectively to stop pathogens. Research has shown less than half of critical surfaces are properly cleaned, which contributes to hospital-acquired infections. Proper cleaning can reduce transmissions by up to 80%. Disinfectants are clear and tricky to use. You can’t see if the entire surface is wet, and if you don’t leave it on long enough, it won’t eliminate all the pathogens.

Our product, Highlight, is a patented additive color platform that comes in two forms: as a lid attachment to wipe canisters that colorizes bleach wipes as they pass through the lid and as a powder you add to liquid bleach solutions. It turns bleach blue, for example, and fades to colorless when decontamination is complete after a few minutes. It’s intuitive so it makes anyone a disinfection expert who can see when the surface is clean, regardless of language, education or training.

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

KJ: As a young team, it was challenging to break into the notoriously difficult health care space. We had to put ourselves out there, which was hard for me personally; as an R&D scientist I preferred to hide in the lab. But by networking, keeping everything anchored to evidence and data, and evangelizing our product, we proved we were serious. We also gained gravitas by building an advisory board of key opinion leaders in our space, such as Bill Rutala, who helped write the CDC guidelines on hospital disinfection. The experts’ belief in us helped validate our legitimacy. We also did rigorous testing to prove Highlight didn’t reduce the potency of disinfectants or pose any risk to humans.

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

KJ: In 2019, we soft-launched Highlight Wipes at several hospitals. We just closed a $6 million round of funding that Golden Seeds took part in, and our goal is to roll out a larger launch at hospitals in July. We’re hoping to play a more active part in reducing COVID-19 infections; some hospitals already use our powder product for that purpose.

We’ve also diverted some of our supply chain to make hand sanitizers, which we’re donating to hospitals and healthcare workers. Treatment is obviously critical, but so is prevention. At the end of the day, if you’re not cleaning properly, you won’t stop the epidemic.

LD: What advice do you have for early-stage founders about growing a team, fostering company culture or other issues you’ve had to address?

KJ: One of the coolest aspects of being a founder has been the opportunity to build a culture and team that reflect our values. If you can be proud of your company ethically, you’re more likely to succeed. Jason, Kevin and I are good friends who trust each other implicitly. We’ve built a culture that stresses respect and positivity, and discourages competitiveness and infighting. We’re all dedicated to pushing the research forward as a team.

In any startup, it’s critical for the founders to do what’s best for the company rather than their individual benefit. It’s also important to have a diverse team, with people from different backgrounds, genders and ethnicities. As a woman in a technical space, I’ve had to work extra hard to be taken seriously. Women entrepreneurs need to stand up for themselves. You have to be your own advocate, be proud of your work and project confidence.

LD: Tell us about your experience with Golden Seeds and its network.

KJ: Golden Seeds had been on my radar for a long time. When we first started raising our seed round in 2016, we tried to raise money from Golden Seeds. Although we didn’t achieve funding then, we received some great advice. For example, when I was pitching, one of the women investors pulled me aside afterward to say that I had a tendency to be self-deprecating, and that I could be more assertive and project more confidence. That kind of feedback and support from other women is invaluable.

Golden Seeds has also been really helpful in opening up their networks to us which has been incredible. It’s not easy to bring a new product into a hospital, but Golden Seeds helped legitimize us and made it easier to navigate the system.

Learn about Golden Seeds work.

How did she do it? A Q&A with Catherine Berman, CEO of CNote

Posted on June 4, 2020December 19, 2023 by Kimberly Caro

Header image credit: https://trulyoffice.com/

Many investors want to support causes close to their hearts but don’t, because conventional wisdom says you can’t make money investing with your conscience. A young company called CNote is proving the naysayers wrong. By leveraging technology, CNote is delivering competitive returns with 100% positive social impact.

The company is the brainchild of CEO and co-founder Catherine Berman, a financial professional with a passion for socially responsible investing. Catherine left a high-level corporate job to launch an investment platform that harnesses finance as an instrument for social change. Her company, CNote, provides individuals and institutions with fixed-income opportunities that support Main Street America – the movement focused on funding small business loans for female and minority entrepreneurs, affordable housing and community development in low-income areas. Catherine recently talked with Gwen Edwards, Managing Director of Golden Seeds, about CNote’s mission, the reason it’s working and the challenges it’s facing. Catherine also offered advice to other companies starting out.

GE: Tell us about the origins of your company.

CB: While I was a managing director at Charles Schwab, I was excited to see the growing interest in socially responsible investing. I noticed that almost 100% of the available products were funds and public equities. There were almost no fixed-income or cash instruments, even though fixed income represents a bigger market and is an important part of individual portfolios. After some research, I realized that it’s more complex than it first appeared. You can’t just screen out or select certain stocks or companies based on their approach, as you can in the public market. I discovered that the solution was using technology to unlock more supply and to allow for customization and value alignment. So I left Schwab and in 2017 launched CNote with a friend and fellow financial professional.

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

CB: CNote provides fixed-income and cash opportunities for investors who want to align their portfolios with their values. We’re not just creating a “green” bond with a portfolio of corporations who are doing something good. We enable individuals to invest in the areas they care about. They can support small-business loans, affordable housing or community development while earning a solid return. By using technology rather than a traditional asset management approach, we can unlock billions of dollars in the fixed-income space. One way we’ve done this is by developing a network of community development financial institutions (CDFIs). These CDFIs are dedicated to providing affordable lending to disadvantaged people and communities, financing local businesses and affordable housing. Large banks have invested in CDFI for years but not without long underwriting cycles and pricing friction. In addition, despite CDFI’s strong 30-year track record, it remained challenging for any investor – be it foundations, donor advised funds, family offices or even individuals to invest in CDFIs. We dramatically simplified the process to invest in CDFIs and thus increased awareness of CDFIs and the availability of funds to these institutions. At the same time, our platform brings added value to the big banks, foundations and family offices seeking values-aligned investments alongside competitive returns. Investors bring more diversification and values alignment to their portfolios and more capital is invested in underserved communities. It’s a win-win.

GE: How has the pandemic impacted CNote?

CB: We have been a lot busier. It is clear to me that our work is more important than ever. CNote’s mission is to create impactful, compelling investments that drive more capital into underserved communities. Based on the early data we’re seeing, those kind of communities are being disproportionately impacted as it relates to bad health outcomes along with being largely cut off from financial resources. Our partners are on the front line of the economic response to this crisis and we are working tirelessly to get more capital into these communities. We saw the massive step back so many people took after the 2009 financial crisis. The need to help save local small businesses and the economies they support has never been greater.

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

CB: One of the biggest challenges has been debunking the myth that you can’t invest according to your values and earn a competitive rate of return. Many institutions and individuals still think they can either do something positive or get a good return — but not both. That’s not true. Every product we create has competitive returns. Our goal isn’t to match the product you’re now using; we want to beat it. To gain visibility and build credibility, we’re publishing white papers, case studies and real-life stories documenting what we’re doing. If we report that Sierra Club trusts CNote to invest their money in line with their mission, that’s compelling. Socially responsible investing isn’t just a nice philosophy — it works in real life. We’re out there doing it, and our track record of returns speaks volumes: zero losses and zero defaults in four years.

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

CB: Our focus right now is to bring on more foundations and socially responsible asset managers. We need to be able to move dollars to have an impact. We’ve brought on some marquee clients in addition to the Sierra Club, such as the Tides Foundation and the San Francisco Foundation. Additionally, we are adding more and more partners on the community side that allow us to build customized investments around themes like gender equality, homelessness and immigration. Impact investing is deeply personal and the ability to match your investment to the causes you care most about has a ton of potential to be a key differentiator for CNote.

GE: What advice do you have for early-stage founders about raising money, growing a team, fostering company culture or other issues you’ve had to address?

CB: A strong team is critical. Every member has to be an A-list player—not just functionally but emotionally. With startups, the ride can be so unpredictable that you need people who are resilient and emotionally healthy. You also need a strong advisory network. We have fantastic formal and informal networks that make us smarter. Whenever I encounter a question or a bump in the road, I don’t spend a month ruminating on it. I try to learn about it quickly, figure out who’s done it before and see who has the right answer. With an advisory board, that’s easy.

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

CB: You’ve been an incredible champion and friend for years, Gwen, and I have tremendous respect for you. Your leadership skills were one of the things that drew me to Golden Seeds. Your organization’s strong presence in finance was another key factor. Having investors who understand a financial technology company like CNote is essential. Everyone who has been working with us has been very strong. Both our organizations focus heavily on investing in women, so our collaboration seems like a natural tie-in we’d love to continue and expand.

Learn about Golden Seeds work.

I was ready to launch my startup pre-COVID-19: Now what?

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

Susan Nethero and David Nethero

For many eager founders who were gearing up to launch their businesses this year, many are left wondering if now is still a good time. Like many questions in entrepreneurship, there’s not a one-size-fits-all answer; instead it’s important to evaluate your business and the market before deciding whether now is still the time to launch.

This period of uncertainty requires entrepreneurs to hyper-focus on every aspect of their businesses to fully consider if now is still the right time to launch. One of the most important things to consider is to evaluate how COVID-19 has impacted your specific industry. As we all know by now, some industries have been affected far more than others. No matter how passionate an entrepreneur is about her idea, it is essential to evaluate what the demand will be when you go live. Is your industry open for business? And if so, will customers be willing to listen to your great idea? Focus on the potential demand for your product or services in the near- and medium-term, which means while the economy and the industry recover.

Some industries aren’t only surviving the pandemic – they’re thriving, which could be a good sign if that’s your industry. Telemedicine and telehealth companies are showing incredible promise and value during this time, as is any service that can be provided virtually or remotely. We’re also seeing an increase in wellness classes or services being offered virtually – from nutrition counseling to workouts.

Food delivery and delivery services in general are also doing quite well at the moment. Our daughter’s company, Garnish and Gather, is a hyper-local food delivery service in Atlanta that works exclusively with farmers in north Georgia to deliver groceries and meal kits. For those farmers who had been selling to restaurants, now they have a place to sell their crops and local families have farm-fresh meals and produce delivered directly to their homes.

At Golden Seeds, we’re also seeing educational companies thrive during this time. Golden Seeds-funded startup Little Passports creates award-winning subscription kits to help encourage kids’ passions for learning about the world. These are companies focused on providing learning opportunities for children that are instructional, or entertaining products, crafts, hobbies and language tools.

Even if you’re in an industry that’s doing well, consider if your potential customers will be willing to purchase your products or services. Now might not be the time to launch in certain industries, such as travel, that are down as much as 90% right now. It may also be prudent to delay an equity raise in certain industries until that industry turns the corner. By waiting, you could likely have more investor options and possibly better terms.

Are you ready to launch? COVID or no COVID?

It’s critical to evaluate your company’s viability through the lens of COVID-19, but it’s equally important to first evaluate the viability of your product or service even if there were no COVID. While many of us are hopeful for a swift recovery, certain perceptions may not go back to the way things were pre-COVID.

For all other businesses – not the ones who are either directly benefitting or directly impacted – which is likely most businesses, you have to take a hard look at your fundamentals. Every assumption of your business model should be reviewed and challenged. Be prepared to honestly answer the following questions:

How unique is your product or service? How do you differentiate versus the competition? Do you have proof of its efficacy? What about the landscape – has it changed since COVID?
Do you have a minimum viable product? You may have been ready to launch on all fronts before COVID, but now is the time to examine how the current situation may have altered near- and medium-term opportunities.
Does the pricing you anticipated for your product or service still hold up in the new world? You may have previously carefully researched pricing, assessing the demand and the competition to arrive at your pricing, but you must now assume those assumptions have shifted.
How long do you expect it will take to complete a sale? Has this changed since COVID? Under the best – and the worst – circumstances, how long will it take to generate traction? This is especially important if your industry has been hit hard by COVID; you must be realistic about revenue expectations.
Are your assumptions about your supply chain still relevant? If you were going to rely on supply chain partners for delivering certain products for services, assess the health and viability of those companies in the reality of COVID.

Still ready to launch? Learn your options

Knowing the headwinds ahead of you, if you’re still determined to launch, you have options. It’s important to think outside the box and be creative in ways that you fundraise, and, if you have a product or service ready to launch, distribute.

When it comes to fundraising, first examine how much money you really need. If you pursue raising outside capital, determine if you could make progress with a smaller round than you initially planned. Perhaps you can stage the launch or bootstrap the launch, or consider raising debt rather than equity. Have you tapped into your personal networks? Friends or family could be a way to gain capital to allow you to make some progress before you go for outside capital.

Research available grants or loans for which you may be eligible, including what’s available through the CARES Loan Program. There is more money available today through low-interest, government-backed loans than ever before.

Crowdsourcing through networks like Kickstarter or Indiegogo can be a great way to fundraise while generating sales and getting valuable feedback from customers. Generally, crowdfunding is a good option for those launching a product rather than a B2B service or SaaS product. If you have a customer-oriented, tangible product, crowdfunding could be an excellent avenue for you.

Think about how you can work with suppliers/partners to support your cash flow. When we were running Intimacy (a bra-fitting company founded by Susan), we realized in 2001 that we had much of our cash tied up in inventory. We found ourselves in the post 9/11 recession. We had to consider inventive ways to grow our top-line and produce higher sales while owning less inventory. To reduce inventory, we developed innovative models where we purchased smaller quantities more frequently netting an increase in cashflow. We found that a great option for this increased cashflow was to work with our suppliers on payment terms, figuring that it was in their best interests if we succeeded. In our case, we offered to make earlier-than-usual payments for inventory, for a hefty discount. We continued this even after the recovery as an inventive way to free up cash and increase margins. Is there something similar you could offer your suppliers to help free up cash today?

Lastly, but perhaps most importantly, seek out people or organizations who can give you valuable advice and insights. As angel investors, we have often met entrepreneurs who weren’t a right fit for us to invest in their companies, but we were still happy to connect them with the right people who might be a better fit for them.

At Golden Seeds, we also host Office Hours, now completely virtually, that gives entrepreneurs access to valuable tools and resources for raising capital, as well as free, 15-minute one-on-one break-out sessions with investors. We host them for Atlanta-area entrepreneurs, but Golden Seeds chapters across the country host Office Hours in Arizona, Boston, Dallas, Houston, Miami, New Jersey, New York, San Francisco and Silicon Valley.

If now is still the time to launch, know there are going to be some seriously strong headwinds with which to contend. Entrepreneurs, in general, need to be able to articulate their startups’ value, and this has never been more important than it is now.

Learn more about Golden Seeds. Read more of our Golden Seeds blogs.

A call to action: What boards must do to help companies and CEOs cope with the Covid-19 crisis

Posted on May 26, 2020May 26, 2020 by Kimberly Caro

Kathryn Swintek

Editor’s note: As businesses grapple with massive change, two of the Managing Partners of our Funds – experienced investors and board members of both public and private companies – shared their advice on the new and expanded role that boards must play.

Anyone serving on a board today knows it’s anything but “business as usual” in a world transformed by the pandemic. Companies of all types and sizes must adapt to survive and function effectively. In this environment, the role of the board of directors has become even more critical as they’re called upon to help companies and CEOs deal with extreme challenges.

Many CEOs may find themselves struggling to manage unprecedented and stressful situations, and they need a sounding board to help them absorb news, assess needs and assign priorities — and it’s often up to board members to step in and help during this critical time. Board members often serve as trusted advisors and coaches who can brainstorm with CEOs about problems and solutions, enabling them to project an air of calm leadership.

This partnership is vital at a time when rapid change is the norm, feedback loops are accelerated and urgent decisions must be made quickly. Many boards are holding meetings much more frequently – and sometimes less formally – to review pressing matters such as financial forecasts, funding needs and succession planning for business continuity.

Here’s a look at how four essential board responsibilities have expanded or changed during the current crisis.

Risk management

Risk management is always important, but it’s become a top priority not only for a business but for its board. Members need to be alert to any new and increased risks and ensure that a company is addressing them adequately. Here are five key areas to consider.

Employee risks: Health concerns loom large, with the risk that employees will fall ill. In addition, with schools and daycare centers closed, parents are called on to home-school their kids and care for preschoolers at the same time they’re trying to work remotely. That’s taking a toll on employees both personally and professionally. Reduced headcount because of layoffs or furloughs is also hurting productivity.

Cyber-risks: With most employees forced to work from home, data is traveling back and forth over home networks that lack the firewalls and tight security of the workplace. Cyber-criminals have been quick to take advantage, with more hacking and phishing attempts that could compromise security.
Credit risks: Many businesses are closed or curtailed, increasing the likelihood that some customers may be paying more slowly or not at all. In addition, suppliers may be unable to deliver goods or services critical to a business, disrupting operations.
Business continuity risk: If the CEO or other key leader becomes ill, companies—especially early-stage businesses and those with lean staffing — might find it difficult to manage. Succession planning to address this possibility is imperative.
Supply-chain risk: Do your companies have a plan if suppliers they rely on for products or services suffer disruptions, affecting their ability to meet production standards?

It’s incumbent on the board to help CEOs constantly “scan the horizon” to monitor for these risks and to make sure they’re regularly addressed at meetings and in informal discussions. The next step is helping to develop a plan to mitigate these and other issues as much as possible.

Strategic planning

Deb Kemper

Planning is exponentially more difficult when dealing with a huge unknown: when and how the economy will re-open. Boards must acknowledge that uncertainty and help the CEO think through multiple scenarios — ranging from best case to worst — and appropriate responses.

This isn’t a one-and-done situation. Constantly changing conditions demand frequent updates, reviews of prior assumptions to see if they remain valid, and regular assessments of the impact on revenues and expenses.

It’s important to maintain an ongoing dialog between the board and the CEO and to keep it constructive. Boards can play an invaluable role in providing CEOs with more assistance, sharing some of their burdens and bolstering their position as a capable leader. A calm, confident CEO can better manage the anxieties of teams facing constant and rapid change.

Financial planning (fiduciary responsibility)

There are more unknowns than usual, so boards will have to be more involved than ever in assessing revenue and expenses and helping the CEO decide on appropriate expense levels.

Boards must be prepared to step in if a company is not meeting its revenue and cash goals, recommending any actions needed to prevent mounting debt. Adjustments might include cutting expenses, determining whether any commitments can be cancelled or deferred, and developing more realistic plans for revenue outlook.

It’s also necessary for the board to keep an eye on the risks outlined previously. This includes credit risks and problems with receivables if clients are delaying payment, as well as potential disruptions to the supply chain, so they don’t negatively impact revenue streams.

In normal times, budgets are typically reviewed quarterly and forecasts are updated as needed. But now, with the deluge of new, meaningful information coming daily, boards may be reviewing new forecasts monthly or even more frequently.

Fundraising strategy

It’s possible a company will need to raise capital to get through this difficult period, so helping develop a funding strategy is a critical part of the board’s role. Ensuring adequate liquidity might mean raising capital, and it may be necessary to consider new terms for doing so and/or financing structures. Board input and brainstorming on these matters can be very helpful.

Once the work on revenue outlook and expenses has been done and there is some clarity on the worst-case scenario for cash runway, the board can help the CEO plan a fundraising strategy. Points to evaluate include: amount of capital needed, what funds will be used for, how much time it will take to raise the capital, how long it will last and the capacity of existing investors. The board needs to assist in evaluating the terms of that round of fundraising, including an appropriate valuation to arrive at a price the market will accept.

In addition to raising capital, it’s important for the board to make sure the CEO is aware of other funding sources, such as government grants and SBA loans. The board can ensure the company applies for all applicable funding and explores government resources that can help.

Stakeholder communications

Now, more than ever, it’s critical for a company to communicate with all its stakeholders, adapting communications for each group in terms of frequency, content and tone. It’s become essential for boards to make sure this is done well. Boards can guide CEOs on best practices for communicating with employees, shareholders, clients, suppliers and the board itself.

At a minimum, the board should have confidence the company has identified all stakeholders and has a plan for communicating appropriately with each. That includes determining the appropriate level of information shared, the right tone and the best timing. Given that the staff is one of the most important stakeholders for any business, the board will want to know how the company is managing its employees remotely and provide guidance as needed.

Times have changed, and the challenges are new and many. In response, boards need to rethink their evolving roles, take on new responsibilities and adapt to current conditions to ensure the survival and health of the companies they serve.