This is part II of EBAN’s interview with #EBANCongress keynote speaker Marcia Dawood of ACA. To catch up the part I of the interview, click here! And to get more insights from Marcia and other amazing speakers (https://ebancongress.com/speakers-2023/), join us this May for the largest and most recognised angel investing event in Europe: the EBAN Annual Congress – get your ticket now: https://ebancongress.com/tickets/
EBAN:
Thank you so much for being here, Marcia, and thank you for agreeing to do this interview with us to prepare for the upcoming EBAN Annual Congress in Thessaloniki this May.
We know you have extensive experience in the early-stage sector, and we want to know the biggest lesson you have learned since becoming an angel investor.
Marcia:
The biggest lesson is that it takes a lot of time and is tough. Sometimes, angels will participate for a while and then move on to something else. So it’s essential, during the investing process, to know that we’re in it for the long haul. We should have people surrounding the company, even if we can’t physically do it ourselves because we have other investments. But at least we know what the company needs, and we can make introductions or give them some of the support that they could use.
EBAN:
Which sectors should we watch as an investor in 2023?
Marcia:
So much is happening right now in AI and machine learning. We’ve seen a lot of that lately, but it’s still very early to say. We’ll see many things come and go, and some things improve. I’ve also seen more innovation than ever in healthcare. Especially right now, women’s health is getting a lot more attention. That’s exciting. We’re always going to see technology of all kinds continue to evolve, and it keeps evolving faster and faster. It will be interesting to see where things are a year from now.
EBAN:
What do you consider a significant challenge in the investor and startup relationship?
Marcia:
One thing that gets challenging for all angels, no matter where you are, is whether or not angels will follow on and continue to invest in the same company. That’s where many companies get into trouble because they need the funding after the angels get involved. Sometimes they either don’t communicate how much they’ve accomplished or maybe they have yet to hit the milestones they wanted to or they’re spending money too fast, or whatever the story is. And then they go back to the angels to follow on. Either the angels aren’t that excited about them anymore, or maybe they weren’t paying attention to that particular company enough. It happens all the time. I think it’s just important that we keep thinking about that. Companies need to get information back to investors on a consistent basis. At least quarterly. If companies only communicate when they want money, that’s not good.
EBAN:
As mentioned in the beginning, you’re coming to the EBAN Annual Congress in Thessaloniki this may, which we’re excited about. We would like you to give us your opinion about the European Angel ecosystem.
Marcia:
I’m not an investor in companies outside of the US because it gets complicated with our tax system here in the US, which is different from others. But last year, when I came for a conference, seeing so many incredible brands and how many different companies Europe has was amazing. It was fantastic to see how the countries cooperate. Specifically in Greece, there’s so much happening there right now, and I don’t think people realize that. It’s important to keep talking about it and highlighting this. I’m excited to come back again this year and see it from an even bigger perspective because last year I came for HIBAS, which was a smaller event, but this year, it is even bigger, so that’s fun.
EBAN:
What are your insights for the Mediterranean ecosystem, Southeastern Europe and Balkan ecosystem from what you got from that event?
Marcia:
The ecosystem is vibrant and diverse, and I’ve seen more than just early-stage companies. These companies are now gaining a lot of traction throughout Europe, not just from countries in the region. It was cool to see the wide range of companies that have emerged and gained more visibility in recent years.
EBAN:
Are there any specific trends emerging among both entrepreneurs to be able to find investments, such as co-investment from other countries or any trends amongst angels to be able to keep investing despite the atmosphere?
Marcia:
I’ve seen more angel groups putting funds together within their own group. It’s becoming more popular because it allows for diversification of portfolios, lessens risk, and provides more people to help that particular company move forward.
EBAN:
You mentioned some cases where you are unsure about a company, but it turns out to be really good. Do you have an example to share with us?
Marcia:
I invested in a pharmaceutical company a couple of years ago, which is a challenging sector, and some angels would never invest in it. But the company is doing super well now, and our valuation has increased three times. The drug is still not on the market yet, so we still have a little ways to go. But it’s different from what I had thought when I invested. I liked the company and the founder and knew it would take a while.
EBAN:
Are there any closing words you want to leave us with?
Marcia:
I’m excited to come to the Congress, and I have a new rap battle that I’m working on about the price of equity and convertible notes. See you in Thessaloniki!
EBAN:
Can you tease the topic?
Marcia:
Yes, it’ll be about the price of equity and convertible notes. It is a rap battle again!
EBAN:
We’re looking forward to having you as well, and we’re really looking forward to the event in general. Thank you so much for doing this interview with us and being our keynote speaker. See you in Thessaloniki then!
Marcia:
That’s awesome. Thank you, guys.