October 15, 2025 • 47 mins
As I talk with entrepreneurs and investors, I often see how easily people overlook the power of strong investor relationships. It’s not just about getting funding, it’s about building trust that lasts.
In this episode, I sit down with Alan Kadish to talk about how founders can build resilience through honest, consistent communication with investors. Alan shares what investors really look for, how transparency earns confidence, and why the best partnerships go beyond money.
If you’re raising capital or managing investor expectations, this conversation will help you see how strong relationships can carry your business through tough times.
Takeaways
Alan Kadesh has a diverse background in innovation and entrepreneurship.
Timing is crucial for entrepreneurial success.
InvestorMatch.ai aims to improve the capital raising process.
The platform is free for founders, funded by investors.
Understanding cap tables is essential for startups.
Navigating regulatory challenges in biomed tech requires expertise.
ExpertScale.ai allows for the encapsulation of knowledge.
Investors are increasingly sophisticated in their decision-making.
AI is transforming the way entrepreneurs connect with investors.
The importance of due diligence in the investment process.
Chapters
00:00 Introduction to Alan Kadesh and His Innovations
02:34 From Surfboards to Bioparticles: Alan's Journey
06:10 The Importance of Timing in Entrepreneurship
08:52 Introducing InvestorMatch.ai: A New Era in Capital Raising
16:52 Streamlining Connections: The Efficiency of InvestorMatch.ai
20:54 Understanding Cap Tables and Financial Forecasting
28:38 Navigating Regulatory Challenges in Biomed Tech
33:14 ExpertScale.ai: Capturing Knowledge for Future Generations
About Alan Kadish
Dr. Alan Kadish is an innovator, entrepreneur, and active angel investor with decades of experience building and funding breakthrough technologies. He’s the founder of InvestorMatch.ai, which uses AI to connect founders with the right capital partners, and ExpertScale.ai, which creates intelligent digital avatars that mirror your expertise to boost productivity.
With a background spanning biomedical research, bioengineering, and venture capital, Alan brings a unique blend of science, strategy, and mentorship to every venture.
Learn more at InvestorMatch.ai and ExpertScale.ai.
About Karen Rands
I'm Karen Rands, founder of the Compassionate Capitalist Movement. I help entrepreneurs prepare to raise capital the smart way and guide investors in identifying startup opportunities that build wealth and make a difference. This show is your roadmap to funding success, from pitch deck to public offering.
📅 Want expert feedback on your pitch? Book a consult with me: bit.ly/KCHcalendar 🔗 Learn more: karenrands.co 🎧 Catch more episodes: thecompassionatecapitalistshow.com 📘 Free eBook: The 4 Ws of Crowdfund Investing: https://bit.ly/FreeCrowdfundInvestingBook 🎓 Join the Academy: bit.ly/CA-prelaunch
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:06):
The Compassionate Capitalist Show empowers entrepreneurs and
investors alike to create wealthwith passion and purpose.
Join Karen Rands, a best sellingauthor, for insights on Angel
investing, crowdfunding, business growth, and wealth
creation. As a seasoned entrepreneur and
investor herself, Karen engages in dynamic conversations with
(00:28):
industry leaders, successful entrepreneurs, seasoned Angel
investors, and venture capitalists as they share their
proven strategies and lessons learned.
Once you listen, you will understand why this podcast is
ranked in the top 2 1/2% globally.
Subscribe and share and be a catalyst for the compassionate
capitalist movement. Give it up, better go in the
(00:52):
back and you must keep an open mind and you try your best just
to leave your tracks and do not fall too far behind.
Regret is for the printer part. In the end, it's all the same.
Take what the wise I've got to impart.
These are the principles of the game.
(01:14):
The principles of the game. Oh, these are the principles of
the game. Welcome to Back to the
Compassionate Capitalist show. And you know I love it when I
get an investor on the father has worn all the hats, right?
(01:35):
So they've invented things, they've launched companies,
they've invested, they've mentored, they've raised
capital. They continue to innovate, they
continue to invest, they continue to be a thought leader
in the marketplace. And that's my guest today, Alan
Kadish. He has vast experience as an
innovator. He invented a fireproof zipper
(01:58):
system, some kind of it really it stands, it stands the the
gambit here, a cover for a surfboard and then leading into
it like some noise and hearing solutions into BioMed tech,
bioengineering, food. I get this.
It's just like it's a full spectrum more awards and and
(02:23):
recognition than can be really mentioned in the time that we
have here. When you go through his dossier,
he's mentored and raised capitalfor multiple companies.
He's invested in probably 30 to 40 different things directly and
through Angel groups. He's still active over at the
Oregon State University as an anadvisor in the biomechanical
(02:44):
engineering area there, as well as with agricultural research
and development and the creatingbio articles, all that he's
worked within the stem cell industry, a full scope of of
experiences out there, whether he's what he's been working on.
And today we're going to talk about all of those experiences
(03:05):
on both sides of the table in the 30 minutes or so that we
have and, and kind of get into some of the really exciting
stuff he's doing right now. That is AI enabled.
That is is common to my mission,which is creating the ecosystems
and providing access to capital for entrepreneurs so they can
(03:27):
get better access to capital. But if you kind of flip in the
way that the approach to that, when we did our pre call and got
to know each other a little bit,I was like, this is you're doing
exactly what I had envisioned 10or 15 years ago needed in the
marketplace and the technology wasn't really there to do it
like it's being done now and what and what he's invent.
(03:48):
And that's with investor match dot AI, which if you're watching
the podcast, you can see it underneath his his name for
Doctor Alan Katish here. So with all of that, I'm going
to say, hey, welcome to the show.
Alan is great to have you on thecompassionate capitalist show.
Excited about the conversation we're going to have today.
Likewise likewise. So I have to say, you know,
(04:09):
going from surfing to bioparticles, right?
And a little stem cell mixed in.So were you like a surfer from
way back in the day that you hadto do was really part of the
bio? It was a precursor to bio
technology and the interface. Like connect the dots on that
for me. OK, so my surfing acumen is
(04:32):
pretty piss poor to say the least.
My brother is really the key behind that.
It was a conversation we had andtoo much sand in his car was
where that that landed up. So that was just one of those
crazy offshoots as part of one of my SAS plays called
pureliving.com which still exists very much.
So there was a question that wasposed by one of the bed
(04:54):
manufacturers about avoiding some issues for fire proofing
agents and on the back of a napkin back in 2000, I think 5.
It might be a little earlier than that.
I created a circumstance that's still in use today with a group
known as Savvy Rest. With that said, no, I've I've
(05:17):
just got a lot of interest and things just seem to fall into
place. It's not like this was all
planned by any stretch. I would deny that.
So our bioparticles is a really interesting project where we
literally take bugs, We custom manufacture adna that's inserted
into their mechanism of action. They produce for us a really
(05:39):
cool, in this case a biobead that's a naturally occurring
fatty acid that you and I have in our gut and then we have
protein to it that in this case,the original application was to
address Listeria and Campylobacter infections that we
get from contaminated food. Its intent is to spray it onto
(06:01):
different types of food wrap andwe're basically about a year
away from put bringing that to market.
So that's just one of the crazy other pieces, the Oregon State
bid. I got frustrated.
We were trying to make some things with a whole different
company having nothing to do with what I've talked about.
We were using some bio fermentors that were incredibly
(06:23):
expensive and horribly old and decrepit.
And I was tasked with buying a new one.
And when I came up with the pricing, which was 6 figures and
change, the CEO looked at me andsaid we don't have that type of
money, what do you want to do? And I said, well, we can buy
used ridiculously expensive and we're still facing the same
(06:46):
circumstance of is it even goingto work?
And are we going to have to slapit half the time to get it to
work or are we just buying a pigin a poke?
And he said, well, do you have another option?
At that point the company went under and I looking at it and I
kept saying, you know, there is a solution here.
I just have to think through theprocess and sure enough, it
(07:07):
turns out that with the current availability of incredibly
robust filaments for the 3D industry, you can make auto
clavable products instead of thestainless steel and custom glass
products that are currently in use.
That's how that came about. So I designed one.
It was a need. I don't know, I keep going, but
(07:28):
you tell me directly. Well, yeah.
So that's, you know, that's, I mean, that is, you know, I guess
sort of like the DNA of an innovator is seeing a problem
and figuring out how to solve it.
And then as part of kind of whatwe're talking about today is,
you know, entrepreneur success, often time is subject to right
(07:49):
people, right place, right time,right.
That's what we had. That's exactly my markup.
Right. And so, you know, there's the, I
mean, we can look at all kinds of innovation over, you know,
generations of innovation. And that just was before its
time, right? You hear that term, It's before
it was before its time. It would have been great had,
(08:10):
you know, I mean, quite frankly,what I'm working on with, you
know, elevating that, that investing in entrepreneurs as an
asset class is something that anybody can do that it is does
it doesn't need to be as risky as people say it is, if you know
how to do it right. It's kind of coming into its
right place and right time rightnow because people are really
(08:34):
wanting to figure out alternatives to what they have
been sort of geared up to do is real estate investing And stock
market used to be a lot more predictable and you could do the
research on a stock and then know you could buy it.
And if odds were it was going togo up.
But now there's so many variablefactors that affect the success
of a stock market that have nothing to do with the
(08:55):
performance of a of a company. And they're, you know, what
they're doing. It's, you know, things, a lot of
things that are outside their control.
So, you know, it's great to havethese other options and people
are looking for it. So, you know, my books and the
education are all kind of part of that.
And I think what you've done with investor match AI is all
about that part of that piece too, because we're going to dig
(09:19):
into that. But I, I want to, you know,
because that's one of the challenges that a lot of times
in the current way, back when I was running my Angel group, the
way people raise capital at thattime was an inefficient model.
And it's not necessarily gotten,It's gotten, there's a lot more
noise, just like with anything else, because of the digital
(09:41):
platforms of Zoom calls. And you know, with these ways
that people do and even the crowdfunding platforms, there's
just there's there entrepreneurshave a voice, they have a way to
be out there. But now there's so many more,
it's even harder for on for investors to necessarily
(10:03):
discern, you know, because there's, it's just it, there's
just, it's with the pathways of this, it just becomes bigger and
louder. I guess it's probably the better
way to describe it. So let's go ahead and talk about
why you were inspired to build investor Match AI and, and
(10:26):
shared, you know, maybe a part of your experience as an Angel
investor that kind of led you into that as well.
And, and some of the key, key components of it.
I won't steal your Thunder and describing what it does with
their smart AI algorithms. So this came as you described,
Karen. It's all about finding a
(10:47):
problem. My multiple decades of friends
in the founder, funder and vendor arena were really
bitching and moaning. It was just came down to a lot
of people were really unhappy and I thought to myself, what's
the problem? Why are so many people in
various verticals telling me thesame thing?
(11:11):
Unhappiness, lots of wasted time, loads of inefficiencies
and just not a successful integration where they should
have had a good experience. So a couple of us sat down
together, other people like myself who have had exits have
been entrepreneurs and our investors.
(11:32):
And I said, so let's have a conversation.
And it became incredibly clear, as I mentioned to you earlier,
which was write people, right place, right time.
And then I said, OK, well, that's all great, but how do we
transform that? And from that became the
platform known as investor matchdot AI.
What is it? It's all about fidelity.
(11:55):
I thought to myself, I know whatI need to write a check.
I need a lot of data, a lot of data.
I'm not just going to because itsounds like a great idea.
I've done this before, sorry, many years ago, I used to wow,
great idea, sounds great. Go for it.
It was funny. I'm only doing that.
That was that was a big mistake.I need a data set that's pretty
(12:17):
much going to give me the, you know, these folks have four or
five parameters that really meetmy thesis, and I understand what
they're doing. Totally.
It's not. Yeah, I kind of understand it.
No, I really get it. And quite frankly, I like these
people. They're going to go somewhere.
I have a gut instinct that's been pretty good, not great, but
(12:39):
pretty good to let me know theseare folks who are going to be
persistent, consistent. They've got fire in their belly,
and they're coachable. In addition to that, they have a
business plan that makes some sense.
It's not just pie in the sky in the back of a napkin there.
There's some real serious meat on the phone here that yeah,
this looks like it could go somewhere, not only to help
(13:02):
people in terms of technology, but also as a financial
investment to be worth my time and trouble.
So what happened? Hundreds of questions later, we
discilled this and yes, it's alllogic driven.
So anyone who just heard that statement and is going OMG, no,
no, stop, full stop, just time out.
(13:23):
The bottom line here is it's alllogic driven.
So whether you're a precede all the way to a Series B, you're
still in ideation mode or you'reready for an IPO regardless of
the industry because it's industry agnostic.
But, and here's one of the differentiators, Please don't
(13:45):
tell me you're fintech or something of that sort.
You're wasting my time and your time.
That doesn't tell me anything. I've got a car.
Yeah. So that doesn't help either of
us. That's that's ridiculous.
We need the rest of the story. Right.
Paul Harvey rest of the story really truly is resonant here.
I want details and I want granularity.
(14:07):
So we are industry agnostic. However, technology and life
sciences by far predominate the groups that apply in our
platform. It is private, public and
commercial funding and it's global in scope.
That's the basic overview of investor match.
It's a constantly evolving platform.
(14:31):
So it's not one of those set in stone by any stretch.
So as an example, maybe you wantdebt revenue based funding,
great, no problem. We have people who do that.
We've accumulated just short of 6 figures worth of funders from
everywhere under the planet, youname it, we've probably got
(14:51):
someone who, oh, we resonate with that we can understand
where you're at. And then to pivot a bit, I said,
you know, this could be an awesome platform, but what about
the financials? And people always ask me.
So I'm going to tell you it is free for founders.
Let's get clear on that right from the onset of this
(15:12):
conversation. I don't understand why people
and many organizations are basically here's people begging
for bucks and you're telling them, give me the hundreds of
dollars or thousands of dollars.There's something wrong it that
doesn't resonate with me. And maybe it's just because I've
done well enough not to have to do that, but I just think that's
(15:34):
wrong. On the other hand, funders have
money. Vendors with a successful
contract have funding. There's where the money is.
That's who pays for our platform.
So if you are a founder, there seriously is no way to give us
your credit card. I won't take it.
And it's also educational. I, I think this is another piece
(15:55):
not unlike your book. Many people are starting this
process and they may not be familiar with the level of due
diligence that someone's going to inevitably go.
You know, I need the rest of thestory here, guys.
Whether it's your IP, whether it's your corporate paperwork, I
need to know what you got. We are in this process and if
(16:18):
you have this information, awesome, we can accelerate the
connection. The other piece that's different
about why we did it this way. I'm not interested in
introducing you to someone who doesn't get you, and I don't
want you wasting your time. And more importantly, you're
wasting their time leaving a badtaste in everyone's mouth which
(16:41):
ultimately results in less than optimal attitude.
In this case, people know exactly who, what, when, where,
and are you aligned? If you're not, We don't make an
introduction. Plain and simple, if you're
aligned, they already have a data set that tells them not to
ask dumb questions. I'm sorry.
I I know it's not dumb questions.
It's just repetitive and annoying.
(17:03):
I'm sure Eddie, who's a founder,who's been there it goes.
And you're asking me the same questions about my team.
Here's all the details. Where did they go to school?
How long have I worked with them?
Do I know these folks? What's their pedigree?
Come on, you don't have to ask those questions if you have a
proper data set, which is what we provide.
(17:25):
So it eliminates a lot of the back and forth, cuts the time,
cuts the frustration and makes the connections efficient.
If you're a funder, you can use us, as many do for a front end.
Look, if you're funding folks, you and I both know you're going
to do due diligence at a fairly high level these days.
(17:46):
It's not what happened 10 years ago.
You're not just going to write acheck.
You're going to want to know therest of the information that's
salient. With that said, using our
platform, Easy Stevie, all theredoes it meet your criteria and
your thesis. You tell us what it is, we'll
tell you if there's a match. If there's matches, awesome,
Contact these folks. If it's not, be nice, send them
(18:10):
an e-mail and say hey, you're not in our thesis, perhaps in
the future, or maybe we can makea suggestion on who might be a
more appropriate connection. Everyone walks away limiting
their time loss and more importantly, making connections
that are really worthwhile. If you're a vendor and you're
supplying something to the startup community, guess what?
(18:33):
We only send you leads that are appropriate.
And when I say that the people of that who are onboarding have
asked specifically, do you have as an example someone who'll
help us with our cap table and corporation SoC 2, whatever,
doesn't matter. Yes, we have people who we've
really vetted who know their stuff.
(18:53):
We're going to really be appropriate for your assistance.
Yeah. That's how the platform's laid
out. It's straightforward, it's easy
to use, and again, it is truly free.
For our founders. There's no gossip.
Well, I've, uh, started going through it with a client I'm
working with that I'm invested in that, you know, I think it
(19:15):
really the fact that you gather as much information, you know,
because one of the big challenges with raising capital
is that attention span and to get into, to get an investor
interested enough to get all theinformation that you asked for
in the app. You know, they have to it.
(19:37):
It's like a, a really tricky process that because you know,
I, I go back to when I first took over the Angel investor
group and I, they were, we were doing 9 minute presentations, I
guess with like 10 minute QA, like 20 minutes all together.
And I was looking at creating a 20 minute, you know, like, oh,
(20:01):
let's do 20 minute presentationsand 10 minute QA, like 30
minutes with the company itself.And I was attending a regional
venture capital type of event and they were talking, they were
going to do these things. It was going to be 6 minutes.
And I was out have a coffee withsome of the other investors and
(20:21):
VCs from the area. And I would, you know, I and I
said 6 minutes, how can somebodytell their story in 6 minutes?
How can you know that you're going to invest in this?
I'll never forget Stephen Fleming.
He used to run our incubator at our Georgia Tech here.
He said, oh, I'm not making a decision in 6 minutes.
(20:41):
What happens is in the 1st 90 seconds I decide if I want to
listen to 1st 6 minutes and in that first 6 minutes I decide if
I want to have a meeting with them or ask them any additional
questions. If they can't tell me at the at
the very basic why I'm interested in spending any more
time with them in 6 minutes, they don't know their industry
(21:02):
enough. They don't know their product
enough. They don't know the problem,
blah, blah, blah, whatever it isenough so that it's worth my
time, right. And so you get those in like a
pitch event to a certain degree,but it's so hard with this short
attention span that people have have cultivated these days as a
(21:22):
thing to get to that point really fast.
And so having a committed, like a, you know, that the investors
in your or in your network and investor match AI are looking,
they're serious. You know, I tell people there's
a difference between a business Angel.
It's in the business of investing.
They're looking for deals. I know they're going to do X
(21:43):
number deals, invest X amount ofmoney this year, whatever
they're looking for that. And so they are consciously,
actively trying to eliminate, you know, and, and I, you know,
it's the elimination like they look for the reasons not to say
yes, for the reasons to say no. So they can eliminate, they can
(22:03):
reduce it down to the two or three that they're going to
spend time on. And your platform does that
forum. So they can very quickly get to
the two or three they want to spend time on.
So it's a real productivity toolfor the potential investors
because you know that you know that they don't know what they
don't know to look like. It's ones that are really
serious have sort of they all have this hidden checklist like
(22:26):
I'm never doing that again. Because when they first got
started, they made, you know, they didn't know what they
didn't know and made some say some things and they'll, they,
they form this list of what it is that they're looking for to
avoid the next time in, you know, I So to your point, like
you say, help with the cap table.
(22:46):
I think one of the things that entrepreneurs do not have any,
most of them, 90% of them have no idea what role the cap table
plays in their story. And it is, in my opinion, I
like, I want your opinion on this.
My opinion. It, it tells the story that they
(23:07):
know they're going to be raisingcapital and they're thinking
long term of how they're going to get to the exit, how they're
going to reach their number. And they are planning ahead of
what value they're going to drive for this stock is worth
this today. Then we're going to accomplish
this stuff and then it's going to be worth this.
We'll raise money at that. And then it's going to be worth
this. And then we exit.
(23:27):
And the cap table tells that story, similar to how a
financial forecast will tell thestory is that how do you view
the cap table? Oh, it's exactly that.
And it's precisely that look first, at least in the precede
end of things, before there's a revenue stream that you can
start doing some sort of real assessment.
(23:49):
You don't know, you don't know. And there's a balance between
what do you think is the value? Where are you headed?
You don't know, so you've got tomake reasonable guesses that are
appropriate for that industry, etcetera.
And you're right. Do you want to over value?
I mean, I, I will tell you many stories about we'll get someone
(24:12):
who tells us it's going to be a multi billion dollar firm within
months that it's like, yeah, I don't think so.
I'm I'm sorry. That's great.
I I'd love to see your success at that level and I'd love to
participate, but the likelihood,So what fraction of a fraction
of a fraction of a percent is that that's not called deploy
(24:32):
funds. That doesn't work.
If I did that, I'd be broke longago.
So it has to be reasonable. Both the and the other piece
that I think is different, there's 22 pieces I want to
intersect on your comment. One is competition is absolutely
staggering for any of us who have made any investments.
(24:55):
I don't care whether you're an Angel, you're an LP, you're
involved in a family office. We are getting inundated.
And I don't mean minimally. I literally fight my e-mail
every morning. It's it's a challenge.
There's some great things happening.
Truly. I want to be very, very clear.
(25:15):
I attend every week multiple group settings where we're
pitched and there are amazing, amazing technologies coming to
bear that are truly, truly goingto impact you and I Be it
medical, be it just in the dailydoings of your day, great
stuff's happening. Will all of it be funded?
(25:38):
Oh, good gosh. No, absolutely, positively not.
In some of the areas that I'm involved in as a physician, I'm
looking at is there something that I can utilize for my
patients that's more appropriateand even in the diagnostic
field, the overlap and how many people?
I just yesterday I took a call and I think the person was a
(26:00):
little surprised that I knew is chemistry.
But basically in this case it's an oncology product.
I just saw three competitors in the same market within a matter
of two weeks. Well, Gee, what do I do with
that? I mean, I understand the
chemistries, I saw their financials, but do I know who's
(26:23):
going to be a winner in this very competitive field?
Not really. Not really.
And. That's a hard 1.
So competition is rising to a level that's never been seen
before. Thank you, AI etcetera.
On the other side of the coin, literally what I saw and was
pitched yesterday, it's life changing for many people and a
(26:46):
fairly high Tam. Samsung, will it get into
medicine? Maybe, maybe.
Do I know that for a fact? Oh heck no.
Are they already moving forward in their regulatory pathway?
They are, but so are the others.So it's really difficult.
I think the real challenge now is as an investor, because
(27:09):
there's such a deluge, how do you know where to throw your
dollars? Honestly, I don't have a good
explanation other than say do your due diligence, ask the
questions. And some of it's still throwing
it up against the wall. Quite honestly, it still is.
Well, I think one of the things that into that point what you
just just said because and I think your app and I'll know for
(27:33):
certain when I complete it because it is really, really
robust. We only got through to the third
screen, you know, of answering some of the questions because
you know, wanted to be clear. I think, you know, so the point
I was going to make is that partof the success of a company and
(27:54):
I see, you know, a lot of Angel groups will have what I call the
Midlands, OK. These are the ones that, you
know, with this classic scenarioof 10 investments, right?
You get one that goes out of thepark, 2 that do you know, 5X2
that do 2X3 that break even and three that go out of business or
(28:16):
something like that, right? And, and those ones that are in
the middle and that are sort of like, you know, you get your
money back. It isn't that they weren't good
investments to begin with. They had the right, you know,
unique value proposition. They had it, you know, adjusted
market, they had a team, They had those, those, I guess that
(28:38):
first level of, of like the 10 points of a PowerPoint
presentation, right? But where they they fall down,
and I think investors make this mistake as well, is that they
take them at surface value of the great pitch.
This is really exciting. Oh, they're going to change the
world and they don't dig in to do their number.
(29:01):
Do they really know how they're going to generate revenue and
and therefore do they know how much money they're going to need
to raise in order to get to thatrevenue?
And those two don't they miss both of those boats.
So they don't raise the capital.They need to continue to scale
and they flat line, they don't necessarily go out of business,
but they just sort of chunk along with all the money's going
(29:22):
back, all the revenues going in trying to do scale and they
can't really do a heavy lift to get back on to the trajectory
that they that is expected of anAngel backed or adventure backed
business. And so it's, and, and I think
your, your app uncovers that because you can see what is the
level of sophistication in the way this.
(29:43):
It's the difference between an experienced CEO that has had an
exit and has gone through those processes and knows the mistakes
of I didn't anticipate I had a failure because I didn't
anticipate that I needed to continue raising capital or I
didn't know, I didn't know how to start planting seeds with VCs
while I was raising this other thing.
Whatever you don't, I mean, you know, grease and the skids for
(30:06):
going forward with continuing toscale and thrive.
And they didn't know that. So they gained that experience
or you know, and they come in and then they know it the next
time around. But you can have first time
timers that have the right advice or get the right advice
or talk to enough investors, have advisors, they go through
(30:26):
proper programs that teach them the importance of, you know, not
doing a hockey stick percentage on the spreadsheet for their
forecast. You know, actually figuring out
how they're going to generate revenue.
You know, was it what kind of sales team is it going to take?
What kind of go to market, What kind of all of that stuff?
What's the life cycle of the sales cycle?
(30:46):
And then what are they going to the money they're going to need
to bridge the gap from when money comes in and expenses are
going out and all that kind of stuff.
And and those are two pieces of information that hardly ever
anybody really talks about. And I don't know that very many
investors actually ask those questions.
So I love that investor match AIbased on your vast experience on
(31:08):
this and all, you know, other people that are your thought
leaders that are part of it thathave helped, you know, have
recognized that as something that's really critical to the
due diligence process. Well, I think we could probably
agree that the level of sophistication for mid level to
older investors is so much better this decade than it was
(31:30):
last decade. Day and night, it's day and
night. So you're right, asking the
right questions gives you a verygood insight.
Has somebody thought through theprocess?
Where they headed? Is it realistic?
Do they have the chops to reallypull it off?
Absolutely. So you said you've talked about
BioMed kind of stuff and FDA stuff, you know, and the very
(31:54):
regulatory thing that is really one of the I guess I don't want
to say complicated. It's hairy, right?
It's like because it's. Nuts.
It's absolutely crazy out there.So whether you're bringing a Med
tech product, a pharmaceutical or some derivation thereof, OMJ,
(32:14):
you are going to be faced with some hurdles.
Now the good news, there are some folks who are absolutely
all they do is regulatory. And honestly, if it's something
you haven't ever done before, donot, do not try this on your
own. Just forget it.
Don't do it. Hire someone.
Yes, it's expensive. None of them are inexpensive by
(32:35):
any stretch. But realistically, if you're
trying to do an FDA approved product of any sort, I don't
care whether it's a class one ora class 3.
You seriously want to hire someone who knows their stuff?
Has done this a dozen times, Hashad so many precepts with the
FDA that it just falls off theirmouth in terms of they know what
(32:57):
to ask and they also know what not to say, which is equally as
important, unfortunately. So once you go through some of
the regulatory pathways and you understand it, you really do
recognize their value and you can get where you need to go.
I mean, it just depends on what you're trying to achieve.
Yesterday I was pitched a product that is a small molecule
(33:20):
that may be amazingly interventive for Alzheimer's and
some oncology applications. Didn't get enough data, wrote
them back. A quick note saying the science,
I need the rest of the science and I'll look at it.
We'll take a look. The good news is the Group, One
of the groups that I'm associated with, most of us are
(33:41):
physicians or have actually beeneither FDA regulatory folks or
some derivation thereof. And we'll be able to really take
it apart and go, OK, these guys have something, or maybe not
looks like their IP is replete. They they probably have
something. I just don't think that they
(34:01):
pitched me the way I would have liked, which in this case was
more detail oriented. Yeah.
You know, that's the, I mean that's part of that intro that I
talked at the very beginning where it's like really noisy.
And so, you know, identifying what is the sweet spot of the
targeted investor so that you can talk their language and kind
(34:24):
of know what it is that they would be expecting is, you know,
it's completely different. You have to tailor it to your
audience. No, I mean investors or
customers and that investors arechoosing to buy the stock of
this company because they believe is going to give them
the benefit, which is financial returns.
No different than if you're selling product to a consumer
(34:46):
that's expecting a certain functionality to solve their
problem. The investor is putting their
problem is that they want this money to be make this money,
right? So anybody I get like it's a
little, it's this much money becomes this much money.
So anybody's watching, right? And so that's the problem that
you're solving from them. And if you can't be explained to
them, so they believe that it's going to do this, then they
(35:08):
don't spend their money buying your equity because like you
say, it's competitive out there to the three or whatever that
you said they've got. If they're, if their sweet spot
is that type of a thing, it's Alzheimer's.
And you know, finding a solutionon that then there and part of
what I teach and you know, when you get to the second book,
because I figured out on the Angel profitability blueprint
(35:29):
that's in the course, the Compassionless Academy, is that
you find the problem that you want to solve and then you go
find 3 companies that are solving that problem.
You know at least three because you can find the three companies
that are solving a problem in different ways.
And then you figure out which one has the best path to get to
market, get to do the stuff based on that.
And you know, part of it is likein a seed stage or a precede is
(35:54):
that you may put a little money in to help them get to the next
level so that you can see if they're able to do it.
But it's money that it's not critical money.
You know, it's not like you like, you know, it's not the big
money. I call it the West Coast
strategy, right, where they put a little money in, see if they
can hit their milestones before they put the big money in that
actually gets them all the way through, right?
And so that is, you know, that'sthat I think that's the because
(36:18):
there is so much, it's so competitive.
There's not enough investors outthere for all the companies that
are even worthy of getting capital at this point in time.
So we got a few more minutes here.
Let's, I want to give some time because I think it's really
exciting what you're doing on the other end of the spectrum
with the your other, your other.Excellent sale dot AI.
(36:41):
So someone like yourself, let's do a quick pitch here to you
directly so it'll resonate. As a coach, you can only speak
to how many people per day. Well, it's limited.
There's only one of you. Not anymore.
Now everyone knows what a bot is.
Everybody knows what an agent isat this juncture of AI, what if?
(37:03):
And I'm going to do the what if,even though I'm going to tell
you it exists. You could encapsulate your
expertise just as you're starting to deliver on this
conversation and pointing out really salient points that are
appropriate with your digital protege.
Your protege literally encapsulates your knowledge bank
(37:27):
and is able to deliver it 24/7 to anyone appropriately
authentic. It sounds like you if you want
it that way. We have various voices that can
be used, but you can do your ownvoice and it allows you to
literally serve that many more folks as a coach, be that an
executive coach, be that in thiscase, entrepreneurial coach, any
(37:51):
form there's an opportunity expert scale dot AI expand that.
How many of us are getting older?
We all are. Come on.
Yeah. Yeah.
Works that for you. It's the pits, but that's the
way it is. How many of you work in an
organization that you know that there's some key person?
(38:15):
You absolutely go to them when you have a question.
Why? Because they know all the darn
details. They're going to retire, they're
going to die, they're going to do something, they're going to
move on. Now what?
You just lost incredible valuable material because they
walked out the door or are no longer available.
(38:36):
You don't have to lose that expertise.
It can be encapsulated and you can actually have a
conversation. We're not talking about an FAQ
type circumstance here. We're talking about a true
conversation where they can encapsulate that.
And you're probably saying to yourself, well, wait a second,
I've accumulated this over twenty, 30-40 years, however
(38:56):
long. How are you going to do that?
We've probably written material.You've had conversations many,
many, many times. And we do an interview process
that literally what are the KPIs?
What are your goal sets as an example, as a coach?
All of those are part and parcel.
And I know immediately everyone's going to think
(39:17):
security is totally secure. None of this is in the public
domain. I want to be very clear about
that. There are firewalls
intentionally so that no, your information is your information.
It's not going to be shared or trained on.
We're really hard about that because it should be that way.
Yeah. Of the coin.
(39:37):
What about? I'm going to give you one more
piece to the puzzle. You interview your clients with
the same conversation. Let's say you're an person.
What do you do? How long have you done it?
What's your schooling? Why are you doing that?
You're proteging that. Then you can focus your
attention at then. This is one of many examples.
(39:59):
You can focus your attention on the people who meet your
criteria, who you can serve. It saves everyone's time, it's
effective, it's efficient and it's inexpensive.
Expertscale dot AI literally just launched a couple of days
ago. We just opened it up.
We were in beta thing for gosh knows.
(40:22):
It's fascinating, it's fun, and once you start having your own
conversation with your own protege, you're sitting there
going, oh, and what Oh, this is awesome.
It's fun. So be efficient, be effective,
serve more people. And you can charge for this as a
coach. We have as an example, our, one
(40:44):
of our very first clients, a number of attorneys.
The gentleman who does this literally is a specialist in
LLCS and corps. And yes, you get all the right
information. He's not delivering legal
information, so to speak, because as an attorney you
can't. You can't do that with your
digital, but realistically it can direct you, answer your
(41:07):
questions and get him the information that he needs to be
that much more effective becausethen he only spends a very short
period of time. Oh, you need an A3B election?
Great, no problem, send it to you.
Totally automated. Great, easy stuff.
So there's one good example of one of our first clients.
The other actually is an HR woman who, why am I asking these
(41:30):
people the same question every day?
It's driving me nuts. I don't need to be doing that.
We're producing. And then she can really dive
deep because she now gets the information she needs, fills in
her CRM, totally gets back in touch and knows can she help
that individual. So interesting new technology
application. It feels like, looks like and
(41:53):
sounds like you. It's a protege.
Well, I could see so, so many applications for that in a way,
because back, way back when, when I when IBM went through
their major crisis of the stock value back in the, I guess it
was the late 80s. And when they were, they were,
(42:18):
they had to lay off all these people.
And of course, usually when theydo layoffs, your most senior
people have the, you know, that have the, the, the biggest
packages to leave. They're close to retirement, but
they're also, you know, the people that have all the
experience, like you say. And then what the IBM ended up
having to do was hire back a bunch of those people as
(42:41):
independent contractors and thenpay them more money than they
were paying them as employees atthe time, right?
Because they had to have that skill.
And we that's one of our biggestconcerns now in the, in the
scientific, medical and scientific and research space.
And, you know, you think about all the stuff that's happened in
(43:04):
the federal government or blank brain trust that too bad this
wasn't out at the beginning of this year.
That could have been the AI toolthat would might potentially,
you know, replace the experienceof some of those people.
But. So for folks who are interested
in that, it's expert scale dot AI.
(43:25):
And as you can well tell from Karen's reaction, there's no
lack of application. If we can be of service to you,
be it a coach, be it repetitive questionnaire or you're looking
to encapsulate some expertise, contact us.
If you're a founder investormatsdot AI, there's actually 100%
(43:46):
you're going to learn something potentially and if we can help
you, we will be there for you. OK, and with that, I want to
encourage people. Thank you so much for being on
the show. Doctor Alan Kadish of Investor
Match AI, that is the dot AI that is the website and expert
scale dot AI and you know, all kinds of other experiences.
(44:10):
And I want to encourage people to go and you know, go to our go
get the books inside secrets. You can look on Amazon.
We got two of them now. One is the deep dive for Angel
investors and accredited investors, and the other one is
a accredited adjacent for crowdfunding investors and on
ramp to that and within the compassionless Academy that will
(44:33):
be out soon. You know, if intro and advanced
forces and I think that expert scale AI is going to help me
deliver on the master classes, the the mastermind sessions, all
of those kind of things that people want to come and say.
What do you think about this deal?
(44:53):
What should I look at for this company and that company, it's
going to be some good synergies there with all of the investors
that will be coming out of this training and after reading the
books and. So there you go.
It's a pleasure. Thank you for the opportunity
and I'll look forward to being of service.
Thank you. Talk to you later everybody.
Onwards and upwards. Thanks, Alan.
(45:14):
Bye. Thank you for listening to this
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(45:38):
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(46:01):
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(46:42):
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(00:28):
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(00:52):
back and you must keep an open mind and you try your best just
to leave your tracks and do not fall too far behind.
Regret is for the printer part. In the end, it's all the same.
Take what the wise I've got to impart.
These are the principles of the game.
(01:14):
The principles of the game. Oh, these are the principles of
the game. Welcome to Back to the
Compassionate Capitalist show. And you know I love it when I
get an investor on the father has worn all the hats, right?
(01:35):
So they've invented things, they've launched companies,
they've invested, they've mentored, they've raised
capital. They continue to innovate, they
continue to invest, they continue to be a thought leader
in the marketplace. And that's my guest today, Alan
Kadish. He has vast experience as an
innovator. He invented a fireproof zipper
(01:58):
system, some kind of it really it stands, it stands the the
gambit here, a cover for a surfboard and then leading into
it like some noise and hearing solutions into BioMed tech,
bioengineering, food. I get this.
It's just like it's a full spectrum more awards and and
(02:23):
recognition than can be really mentioned in the time that we
have here. When you go through his dossier,
he's mentored and raised capitalfor multiple companies.
He's invested in probably 30 to 40 different things directly and
through Angel groups. He's still active over at the
Oregon State University as an anadvisor in the biomechanical
(02:44):
engineering area there, as well as with agricultural research
and development and the creatingbio articles, all that he's
worked within the stem cell industry, a full scope of of
experiences out there, whether he's what he's been working on.
And today we're going to talk about all of those experiences
(03:05):
on both sides of the table in the 30 minutes or so that we
have and, and kind of get into some of the really exciting
stuff he's doing right now. That is AI enabled.
That is is common to my mission,which is creating the ecosystems
and providing access to capital for entrepreneurs so they can
(03:27):
get better access to capital. But if you kind of flip in the
way that the approach to that, when we did our pre call and got
to know each other a little bit,I was like, this is you're doing
exactly what I had envisioned 10or 15 years ago needed in the
marketplace and the technology wasn't really there to do it
like it's being done now and what and what he's invent.
(03:48):
And that's with investor match dot AI, which if you're watching
the podcast, you can see it underneath his his name for
Doctor Alan Katish here. So with all of that, I'm going
to say, hey, welcome to the show.
Alan is great to have you on thecompassionate capitalist show.
Excited about the conversation we're going to have today.
Likewise likewise. So I have to say, you know,
(04:09):
going from surfing to bioparticles, right?
And a little stem cell mixed in.So were you like a surfer from
way back in the day that you hadto do was really part of the
bio? It was a precursor to bio
technology and the interface. Like connect the dots on that
for me. OK, so my surfing acumen is
(04:32):
pretty piss poor to say the least.
My brother is really the key behind that.
It was a conversation we had andtoo much sand in his car was
where that that landed up. So that was just one of those
crazy offshoots as part of one of my SAS plays called
pureliving.com which still exists very much.
So there was a question that wasposed by one of the bed
(04:54):
manufacturers about avoiding some issues for fire proofing
agents and on the back of a napkin back in 2000, I think 5.
It might be a little earlier than that.
I created a circumstance that's still in use today with a group
known as Savvy Rest. With that said, no, I've I've
(05:17):
just got a lot of interest and things just seem to fall into
place. It's not like this was all
planned by any stretch. I would deny that.
So our bioparticles is a really interesting project where we
literally take bugs, We custom manufacture adna that's inserted
into their mechanism of action. They produce for us a really
(05:39):
cool, in this case a biobead that's a naturally occurring
fatty acid that you and I have in our gut and then we have
protein to it that in this case,the original application was to
address Listeria and Campylobacter infections that we
get from contaminated food. Its intent is to spray it onto
(06:01):
different types of food wrap andwe're basically about a year
away from put bringing that to market.
So that's just one of the crazy other pieces, the Oregon State
bid. I got frustrated.
We were trying to make some things with a whole different
company having nothing to do with what I've talked about.
We were using some bio fermentors that were incredibly
(06:23):
expensive and horribly old and decrepit.
And I was tasked with buying a new one.
And when I came up with the pricing, which was 6 figures and
change, the CEO looked at me andsaid we don't have that type of
money, what do you want to do? And I said, well, we can buy
used ridiculously expensive and we're still facing the same
(06:46):
circumstance of is it even goingto work?
And are we going to have to slapit half the time to get it to
work or are we just buying a pigin a poke?
And he said, well, do you have another option?
At that point the company went under and I looking at it and I
kept saying, you know, there is a solution here.
I just have to think through theprocess and sure enough, it
(07:07):
turns out that with the current availability of incredibly
robust filaments for the 3D industry, you can make auto
clavable products instead of thestainless steel and custom glass
products that are currently in use.
That's how that came about. So I designed one.
It was a need. I don't know, I keep going, but
(07:28):
you tell me directly. Well, yeah.
So that's, you know, that's, I mean, that is, you know, I guess
sort of like the DNA of an innovator is seeing a problem
and figuring out how to solve it.
And then as part of kind of whatwe're talking about today is,
you know, entrepreneur success, often time is subject to right
(07:49):
people, right place, right time,right.
That's what we had. That's exactly my markup.
Right. And so, you know, there's the, I
mean, we can look at all kinds of innovation over, you know,
generations of innovation. And that just was before its
time, right? You hear that term, It's before
it was before its time. It would have been great had,
(08:10):
you know, I mean, quite frankly,what I'm working on with, you
know, elevating that, that investing in entrepreneurs as an
asset class is something that anybody can do that it is does
it doesn't need to be as risky as people say it is, if you know
how to do it right. It's kind of coming into its
right place and right time rightnow because people are really
(08:34):
wanting to figure out alternatives to what they have
been sort of geared up to do is real estate investing And stock
market used to be a lot more predictable and you could do the
research on a stock and then know you could buy it.
And if odds were it was going togo up.
But now there's so many variablefactors that affect the success
of a stock market that have nothing to do with the
(08:55):
performance of a of a company. And they're, you know, what
they're doing. It's, you know, things, a lot of
things that are outside their control.
So, you know, it's great to havethese other options and people
are looking for it. So, you know, my books and the
education are all kind of part of that.
And I think what you've done with investor match AI is all
about that part of that piece too, because we're going to dig
(09:19):
into that. But I, I want to, you know,
because that's one of the challenges that a lot of times
in the current way, back when I was running my Angel group, the
way people raise capital at thattime was an inefficient model.
And it's not necessarily gotten,It's gotten, there's a lot more
noise, just like with anything else, because of the digital
(09:41):
platforms of Zoom calls. And you know, with these ways
that people do and even the crowdfunding platforms, there's
just there's there entrepreneurshave a voice, they have a way to
be out there. But now there's so many more,
it's even harder for on for investors to necessarily
(10:03):
discern, you know, because there's, it's just it, there's
just, it's with the pathways of this, it just becomes bigger and
louder. I guess it's probably the better
way to describe it. So let's go ahead and talk about
why you were inspired to build investor Match AI and, and
(10:26):
shared, you know, maybe a part of your experience as an Angel
investor that kind of led you into that as well.
And, and some of the key, key components of it.
I won't steal your Thunder and describing what it does with
their smart AI algorithms. So this came as you described,
Karen. It's all about finding a
(10:47):
problem. My multiple decades of friends
in the founder, funder and vendor arena were really
bitching and moaning. It was just came down to a lot
of people were really unhappy and I thought to myself, what's
the problem? Why are so many people in
various verticals telling me thesame thing?
(11:11):
Unhappiness, lots of wasted time, loads of inefficiencies
and just not a successful integration where they should
have had a good experience. So a couple of us sat down
together, other people like myself who have had exits have
been entrepreneurs and our investors.
(11:32):
And I said, so let's have a conversation.
And it became incredibly clear, as I mentioned to you earlier,
which was write people, right place, right time.
And then I said, OK, well, that's all great, but how do we
transform that? And from that became the
platform known as investor matchdot AI.
What is it? It's all about fidelity.
(11:55):
I thought to myself, I know whatI need to write a check.
I need a lot of data, a lot of data.
I'm not just going to because itsounds like a great idea.
I've done this before, sorry, many years ago, I used to wow,
great idea, sounds great. Go for it.
It was funny. I'm only doing that.
That was that was a big mistake.I need a data set that's pretty
(12:17):
much going to give me the, you know, these folks have four or
five parameters that really meetmy thesis, and I understand what
they're doing. Totally.
It's not. Yeah, I kind of understand it.
No, I really get it. And quite frankly, I like these
people. They're going to go somewhere.
I have a gut instinct that's been pretty good, not great, but
(12:39):
pretty good to let me know theseare folks who are going to be
persistent, consistent. They've got fire in their belly,
and they're coachable. In addition to that, they have a
business plan that makes some sense.
It's not just pie in the sky in the back of a napkin there.
There's some real serious meat on the phone here that yeah,
this looks like it could go somewhere, not only to help
(13:02):
people in terms of technology, but also as a financial
investment to be worth my time and trouble.
So what happened? Hundreds of questions later, we
discilled this and yes, it's alllogic driven.
So anyone who just heard that statement and is going OMG, no,
no, stop, full stop, just time out.
(13:23):
The bottom line here is it's alllogic driven.
So whether you're a precede all the way to a Series B, you're
still in ideation mode or you'reready for an IPO regardless of
the industry because it's industry agnostic.
But, and here's one of the differentiators, Please don't
(13:45):
tell me you're fintech or something of that sort.
You're wasting my time and your time.
That doesn't tell me anything. I've got a car.
Yeah. So that doesn't help either of
us. That's that's ridiculous.
We need the rest of the story. Right.
Paul Harvey rest of the story really truly is resonant here.
I want details and I want granularity.
(14:07):
So we are industry agnostic. However, technology and life
sciences by far predominate the groups that apply in our
platform. It is private, public and
commercial funding and it's global in scope.
That's the basic overview of investor match.
It's a constantly evolving platform.
(14:31):
So it's not one of those set in stone by any stretch.
So as an example, maybe you wantdebt revenue based funding,
great, no problem. We have people who do that.
We've accumulated just short of 6 figures worth of funders from
everywhere under the planet, youname it, we've probably got
(14:51):
someone who, oh, we resonate with that we can understand
where you're at. And then to pivot a bit, I said,
you know, this could be an awesome platform, but what about
the financials? And people always ask me.
So I'm going to tell you it is free for founders.
Let's get clear on that right from the onset of this
(15:12):
conversation. I don't understand why people
and many organizations are basically here's people begging
for bucks and you're telling them, give me the hundreds of
dollars or thousands of dollars.There's something wrong it that
doesn't resonate with me. And maybe it's just because I've
done well enough not to have to do that, but I just think that's
(15:34):
wrong. On the other hand, funders have
money. Vendors with a successful
contract have funding. There's where the money is.
That's who pays for our platform.
So if you are a founder, there seriously is no way to give us
your credit card. I won't take it.
And it's also educational. I, I think this is another piece
(15:55):
not unlike your book. Many people are starting this
process and they may not be familiar with the level of due
diligence that someone's going to inevitably go.
You know, I need the rest of thestory here, guys.
Whether it's your IP, whether it's your corporate paperwork, I
need to know what you got. We are in this process and if
(16:18):
you have this information, awesome, we can accelerate the
connection. The other piece that's different
about why we did it this way. I'm not interested in
introducing you to someone who doesn't get you, and I don't
want you wasting your time. And more importantly, you're
wasting their time leaving a badtaste in everyone's mouth which
(16:41):
ultimately results in less than optimal attitude.
In this case, people know exactly who, what, when, where,
and are you aligned? If you're not, We don't make an
introduction. Plain and simple, if you're
aligned, they already have a data set that tells them not to
ask dumb questions. I'm sorry.
I I know it's not dumb questions.
It's just repetitive and annoying.
(17:03):
I'm sure Eddie, who's a founder,who's been there it goes.
And you're asking me the same questions about my team.
Here's all the details. Where did they go to school?
How long have I worked with them?
Do I know these folks? What's their pedigree?
Come on, you don't have to ask those questions if you have a
proper data set, which is what we provide.
(17:25):
So it eliminates a lot of the back and forth, cuts the time,
cuts the frustration and makes the connections efficient.
If you're a funder, you can use us, as many do for a front end.
Look, if you're funding folks, you and I both know you're going
to do due diligence at a fairly high level these days.
(17:46):
It's not what happened 10 years ago.
You're not just going to write acheck.
You're going to want to know therest of the information that's
salient. With that said, using our
platform, Easy Stevie, all theredoes it meet your criteria and
your thesis. You tell us what it is, we'll
tell you if there's a match. If there's matches, awesome,
Contact these folks. If it's not, be nice, send them
(18:10):
an e-mail and say hey, you're not in our thesis, perhaps in
the future, or maybe we can makea suggestion on who might be a
more appropriate connection. Everyone walks away limiting
their time loss and more importantly, making connections
that are really worthwhile. If you're a vendor and you're
supplying something to the startup community, guess what?
(18:33):
We only send you leads that are appropriate.
And when I say that the people of that who are onboarding have
asked specifically, do you have as an example someone who'll
help us with our cap table and corporation SoC 2, whatever,
doesn't matter. Yes, we have people who we've
really vetted who know their stuff.
(18:53):
We're going to really be appropriate for your assistance.
Yeah. That's how the platform's laid
out. It's straightforward, it's easy
to use, and again, it is truly free.
For our founders. There's no gossip.
Well, I've, uh, started going through it with a client I'm
working with that I'm invested in that, you know, I think it
(19:15):
really the fact that you gather as much information, you know,
because one of the big challenges with raising capital
is that attention span and to get into, to get an investor
interested enough to get all theinformation that you asked for
in the app. You know, they have to it.
(19:37):
It's like a, a really tricky process that because you know,
I, I go back to when I first took over the Angel investor
group and I, they were, we were doing 9 minute presentations, I
guess with like 10 minute QA, like 20 minutes all together.
And I was looking at creating a 20 minute, you know, like, oh,
(20:01):
let's do 20 minute presentationsand 10 minute QA, like 30
minutes with the company itself.And I was attending a regional
venture capital type of event and they were talking, they were
going to do these things. It was going to be 6 minutes.
And I was out have a coffee withsome of the other investors and
(20:21):
VCs from the area. And I would, you know, I and I
said 6 minutes, how can somebodytell their story in 6 minutes?
How can you know that you're going to invest in this?
I'll never forget Stephen Fleming.
He used to run our incubator at our Georgia Tech here.
He said, oh, I'm not making a decision in 6 minutes.
(20:41):
What happens is in the 1st 90 seconds I decide if I want to
listen to 1st 6 minutes and in that first 6 minutes I decide if
I want to have a meeting with them or ask them any additional
questions. If they can't tell me at the at
the very basic why I'm interested in spending any more
time with them in 6 minutes, they don't know their industry
(21:02):
enough. They don't know their product
enough. They don't know the problem,
blah, blah, blah, whatever it isenough so that it's worth my
time, right. And so you get those in like a
pitch event to a certain degree,but it's so hard with this short
attention span that people have have cultivated these days as a
(21:22):
thing to get to that point really fast.
And so having a committed, like a, you know, that the investors
in your or in your network and investor match AI are looking,
they're serious. You know, I tell people there's
a difference between a business Angel.
It's in the business of investing.
They're looking for deals. I know they're going to do X
(21:43):
number deals, invest X amount ofmoney this year, whatever
they're looking for that. And so they are consciously,
actively trying to eliminate, you know, and, and I, you know,
it's the elimination like they look for the reasons not to say
yes, for the reasons to say no. So they can eliminate, they can
(22:03):
reduce it down to the two or three that they're going to
spend time on. And your platform does that
forum. So they can very quickly get to
the two or three they want to spend time on.
So it's a real productivity toolfor the potential investors
because you know that you know that they don't know what they
don't know to look like. It's ones that are really
serious have sort of they all have this hidden checklist like
(22:26):
I'm never doing that again. Because when they first got
started, they made, you know, they didn't know what they
didn't know and made some say some things and they'll, they,
they form this list of what it is that they're looking for to
avoid the next time in, you know, I So to your point, like
you say, help with the cap table.
(22:46):
I think one of the things that entrepreneurs do not have any,
most of them, 90% of them have no idea what role the cap table
plays in their story. And it is, in my opinion, I
like, I want your opinion on this.
My opinion. It, it tells the story that they
(23:07):
know they're going to be raisingcapital and they're thinking
long term of how they're going to get to the exit, how they're
going to reach their number. And they are planning ahead of
what value they're going to drive for this stock is worth
this today. Then we're going to accomplish
this stuff and then it's going to be worth this.
We'll raise money at that. And then it's going to be worth
this. And then we exit.
(23:27):
And the cap table tells that story, similar to how a
financial forecast will tell thestory is that how do you view
the cap table? Oh, it's exactly that.
And it's precisely that look first, at least in the precede
end of things, before there's a revenue stream that you can
start doing some sort of real assessment.
(23:49):
You don't know, you don't know. And there's a balance between
what do you think is the value? Where are you headed?
You don't know, so you've got tomake reasonable guesses that are
appropriate for that industry, etcetera.
And you're right. Do you want to over value?
I mean, I, I will tell you many stories about we'll get someone
(24:12):
who tells us it's going to be a multi billion dollar firm within
months that it's like, yeah, I don't think so.
I'm I'm sorry. That's great.
I I'd love to see your success at that level and I'd love to
participate, but the likelihood,So what fraction of a fraction
of a fraction of a percent is that that's not called deploy
(24:32):
funds. That doesn't work.
If I did that, I'd be broke longago.
So it has to be reasonable. Both the and the other piece
that I think is different, there's 22 pieces I want to
intersect on your comment. One is competition is absolutely
staggering for any of us who have made any investments.
(24:55):
I don't care whether you're an Angel, you're an LP, you're
involved in a family office. We are getting inundated.
And I don't mean minimally. I literally fight my e-mail
every morning. It's it's a challenge.
There's some great things happening.
Truly. I want to be very, very clear.
(25:15):
I attend every week multiple group settings where we're
pitched and there are amazing, amazing technologies coming to
bear that are truly, truly goingto impact you and I Be it
medical, be it just in the dailydoings of your day, great
stuff's happening. Will all of it be funded?
(25:38):
Oh, good gosh. No, absolutely, positively not.
In some of the areas that I'm involved in as a physician, I'm
looking at is there something that I can utilize for my
patients that's more appropriateand even in the diagnostic
field, the overlap and how many people?
I just yesterday I took a call and I think the person was a
(26:00):
little surprised that I knew is chemistry.
But basically in this case it's an oncology product.
I just saw three competitors in the same market within a matter
of two weeks. Well, Gee, what do I do with
that? I mean, I understand the
chemistries, I saw their financials, but do I know who's
(26:23):
going to be a winner in this very competitive field?
Not really. Not really.
And. That's a hard 1.
So competition is rising to a level that's never been seen
before. Thank you, AI etcetera.
On the other side of the coin, literally what I saw and was
pitched yesterday, it's life changing for many people and a
(26:46):
fairly high Tam. Samsung, will it get into
medicine? Maybe, maybe.
Do I know that for a fact? Oh heck no.
Are they already moving forward in their regulatory pathway?
They are, but so are the others.So it's really difficult.
I think the real challenge now is as an investor, because
(27:09):
there's such a deluge, how do you know where to throw your
dollars? Honestly, I don't have a good
explanation other than say do your due diligence, ask the
questions. And some of it's still throwing
it up against the wall. Quite honestly, it still is.
Well, I think one of the things that into that point what you
just just said because and I think your app and I'll know for
(27:33):
certain when I complete it because it is really, really
robust. We only got through to the third
screen, you know, of answering some of the questions because
you know, wanted to be clear. I think, you know, so the point
I was going to make is that partof the success of a company and
(27:54):
I see, you know, a lot of Angel groups will have what I call the
Midlands, OK. These are the ones that, you
know, with this classic scenarioof 10 investments, right?
You get one that goes out of thepark, 2 that do you know, 5X2
that do 2X3 that break even and three that go out of business or
(28:16):
something like that, right? And, and those ones that are in
the middle and that are sort of like, you know, you get your
money back. It isn't that they weren't good
investments to begin with. They had the right, you know,
unique value proposition. They had it, you know, adjusted
market, they had a team, They had those, those, I guess that
(28:38):
first level of, of like the 10 points of a PowerPoint
presentation, right? But where they they fall down,
and I think investors make this mistake as well, is that they
take them at surface value of the great pitch.
This is really exciting. Oh, they're going to change the
world and they don't dig in to do their number.
(29:01):
Do they really know how they're going to generate revenue and
and therefore do they know how much money they're going to need
to raise in order to get to thatrevenue?
And those two don't they miss both of those boats.
So they don't raise the capital.They need to continue to scale
and they flat line, they don't necessarily go out of business,
but they just sort of chunk along with all the money's going
(29:22):
back, all the revenues going in trying to do scale and they
can't really do a heavy lift to get back on to the trajectory
that they that is expected of anAngel backed or adventure backed
business. And so it's, and, and I think
your, your app uncovers that because you can see what is the
level of sophistication in the way this.
(29:43):
It's the difference between an experienced CEO that has had an
exit and has gone through those processes and knows the mistakes
of I didn't anticipate I had a failure because I didn't
anticipate that I needed to continue raising capital or I
didn't know, I didn't know how to start planting seeds with VCs
while I was raising this other thing.
Whatever you don't, I mean, you know, grease and the skids for
(30:06):
going forward with continuing toscale and thrive.
And they didn't know that. So they gained that experience
or you know, and they come in and then they know it the next
time around. But you can have first time
timers that have the right advice or get the right advice
or talk to enough investors, have advisors, they go through
(30:26):
proper programs that teach them the importance of, you know, not
doing a hockey stick percentage on the spreadsheet for their
forecast. You know, actually figuring out
how they're going to generate revenue.
You know, was it what kind of sales team is it going to take?
What kind of go to market, What kind of all of that stuff?
What's the life cycle of the sales cycle?
(30:46):
And then what are they going to the money they're going to need
to bridge the gap from when money comes in and expenses are
going out and all that kind of stuff.
And and those are two pieces of information that hardly ever
anybody really talks about. And I don't know that very many
investors actually ask those questions.
So I love that investor match AIbased on your vast experience on
(31:08):
this and all, you know, other people that are your thought
leaders that are part of it thathave helped, you know, have
recognized that as something that's really critical to the
due diligence process. Well, I think we could probably
agree that the level of sophistication for mid level to
older investors is so much better this decade than it was
(31:30):
last decade. Day and night, it's day and
night. So you're right, asking the
right questions gives you a verygood insight.
Has somebody thought through theprocess?
Where they headed? Is it realistic?
Do they have the chops to reallypull it off?
Absolutely. So you said you've talked about
BioMed kind of stuff and FDA stuff, you know, and the very
(31:54):
regulatory thing that is really one of the I guess I don't want
to say complicated. It's hairy, right?
It's like because it's. Nuts.
It's absolutely crazy out there.So whether you're bringing a Med
tech product, a pharmaceutical or some derivation thereof, OMJ,
(32:14):
you are going to be faced with some hurdles.
Now the good news, there are some folks who are absolutely
all they do is regulatory. And honestly, if it's something
you haven't ever done before, donot, do not try this on your
own. Just forget it.
Don't do it. Hire someone.
Yes, it's expensive. None of them are inexpensive by
(32:35):
any stretch. But realistically, if you're
trying to do an FDA approved product of any sort, I don't
care whether it's a class one ora class 3.
You seriously want to hire someone who knows their stuff?
Has done this a dozen times, Hashad so many precepts with the
FDA that it just falls off theirmouth in terms of they know what
(32:57):
to ask and they also know what not to say, which is equally as
important, unfortunately. So once you go through some of
the regulatory pathways and you understand it, you really do
recognize their value and you can get where you need to go.
I mean, it just depends on what you're trying to achieve.
Yesterday I was pitched a product that is a small molecule
(33:20):
that may be amazingly interventive for Alzheimer's and
some oncology applications. Didn't get enough data, wrote
them back. A quick note saying the science,
I need the rest of the science and I'll look at it.
We'll take a look. The good news is the Group, One
of the groups that I'm associated with, most of us are
(33:41):
physicians or have actually beeneither FDA regulatory folks or
some derivation thereof. And we'll be able to really take
it apart and go, OK, these guys have something, or maybe not
looks like their IP is replete. They they probably have
something. I just don't think that they
(34:01):
pitched me the way I would have liked, which in this case was
more detail oriented. Yeah.
You know, that's the, I mean that's part of that intro that I
talked at the very beginning where it's like really noisy.
And so, you know, identifying what is the sweet spot of the
targeted investor so that you can talk their language and kind
(34:24):
of know what it is that they would be expecting is, you know,
it's completely different. You have to tailor it to your
audience. No, I mean investors or
customers and that investors arechoosing to buy the stock of
this company because they believe is going to give them
the benefit, which is financial returns.
No different than if you're selling product to a consumer
(34:46):
that's expecting a certain functionality to solve their
problem. The investor is putting their
problem is that they want this money to be make this money,
right? So anybody I get like it's a
little, it's this much money becomes this much money.
So anybody's watching, right? And so that's the problem that
you're solving from them. And if you can't be explained to
them, so they believe that it's going to do this, then they
(35:08):
don't spend their money buying your equity because like you
say, it's competitive out there to the three or whatever that
you said they've got. If they're, if their sweet spot
is that type of a thing, it's Alzheimer's.
And you know, finding a solutionon that then there and part of
what I teach and you know, when you get to the second book,
because I figured out on the Angel profitability blueprint
(35:29):
that's in the course, the Compassionless Academy, is that
you find the problem that you want to solve and then you go
find 3 companies that are solving that problem.
You know at least three because you can find the three companies
that are solving a problem in different ways.
And then you figure out which one has the best path to get to
market, get to do the stuff based on that.
And you know, part of it is likein a seed stage or a precede is
(35:54):
that you may put a little money in to help them get to the next
level so that you can see if they're able to do it.
But it's money that it's not critical money.
You know, it's not like you like, you know, it's not the big
money. I call it the West Coast
strategy, right, where they put a little money in, see if they
can hit their milestones before they put the big money in that
actually gets them all the way through, right?
And so that is, you know, that'sthat I think that's the because
(36:18):
there is so much, it's so competitive.
There's not enough investors outthere for all the companies that
are even worthy of getting capital at this point in time.
So we got a few more minutes here.
Let's, I want to give some time because I think it's really
exciting what you're doing on the other end of the spectrum
with the your other, your other.Excellent sale dot AI.
(36:41):
So someone like yourself, let's do a quick pitch here to you
directly so it'll resonate. As a coach, you can only speak
to how many people per day. Well, it's limited.
There's only one of you. Not anymore.
Now everyone knows what a bot is.
Everybody knows what an agent isat this juncture of AI, what if?
(37:03):
And I'm going to do the what if,even though I'm going to tell
you it exists. You could encapsulate your
expertise just as you're starting to deliver on this
conversation and pointing out really salient points that are
appropriate with your digital protege.
Your protege literally encapsulates your knowledge bank
(37:27):
and is able to deliver it 24/7 to anyone appropriately
authentic. It sounds like you if you want
it that way. We have various voices that can
be used, but you can do your ownvoice and it allows you to
literally serve that many more folks as a coach, be that an
executive coach, be that in thiscase, entrepreneurial coach, any
(37:51):
form there's an opportunity expert scale dot AI expand that.
How many of us are getting older?
We all are. Come on.
Yeah. Yeah.
Works that for you. It's the pits, but that's the
way it is. How many of you work in an
organization that you know that there's some key person?
(38:15):
You absolutely go to them when you have a question.
Why? Because they know all the darn
details. They're going to retire, they're
going to die, they're going to do something, they're going to
move on. Now what?
You just lost incredible valuable material because they
walked out the door or are no longer available.
(38:36):
You don't have to lose that expertise.
It can be encapsulated and you can actually have a
conversation. We're not talking about an FAQ
type circumstance here. We're talking about a true
conversation where they can encapsulate that.
And you're probably saying to yourself, well, wait a second,
I've accumulated this over twenty, 30-40 years, however
(38:56):
long. How are you going to do that?
We've probably written material.You've had conversations many,
many, many times. And we do an interview process
that literally what are the KPIs?
What are your goal sets as an example, as a coach?
All of those are part and parcel.
And I know immediately everyone's going to think
(39:17):
security is totally secure. None of this is in the public
domain. I want to be very clear about
that. There are firewalls
intentionally so that no, your information is your information.
It's not going to be shared or trained on.
We're really hard about that because it should be that way.
Yeah. Of the coin.
(39:37):
What about? I'm going to give you one more
piece to the puzzle. You interview your clients with
the same conversation. Let's say you're an person.
What do you do? How long have you done it?
What's your schooling? Why are you doing that?
You're proteging that. Then you can focus your
attention at then. This is one of many examples.
(39:59):
You can focus your attention on the people who meet your
criteria, who you can serve. It saves everyone's time, it's
effective, it's efficient and it's inexpensive.
Expertscale dot AI literally just launched a couple of days
ago. We just opened it up.
We were in beta thing for gosh knows.
(40:22):
It's fascinating, it's fun, and once you start having your own
conversation with your own protege, you're sitting there
going, oh, and what Oh, this is awesome.
It's fun. So be efficient, be effective,
serve more people. And you can charge for this as a
coach. We have as an example, our, one
(40:44):
of our very first clients, a number of attorneys.
The gentleman who does this literally is a specialist in
LLCS and corps. And yes, you get all the right
information. He's not delivering legal
information, so to speak, because as an attorney you
can't. You can't do that with your
digital, but realistically it can direct you, answer your
(41:07):
questions and get him the information that he needs to be
that much more effective becausethen he only spends a very short
period of time. Oh, you need an A3B election?
Great, no problem, send it to you.
Totally automated. Great, easy stuff.
So there's one good example of one of our first clients.
The other actually is an HR woman who, why am I asking these
(41:30):
people the same question every day?
It's driving me nuts. I don't need to be doing that.
We're producing. And then she can really dive
deep because she now gets the information she needs, fills in
her CRM, totally gets back in touch and knows can she help
that individual. So interesting new technology
application. It feels like, looks like and
(41:53):
sounds like you. It's a protege.
Well, I could see so, so many applications for that in a way,
because back, way back when, when I when IBM went through
their major crisis of the stock value back in the, I guess it
was the late 80s. And when they were, they were,
(42:18):
they had to lay off all these people.
And of course, usually when theydo layoffs, your most senior
people have the, you know, that have the, the, the biggest
packages to leave. They're close to retirement, but
they're also, you know, the people that have all the
experience, like you say. And then what the IBM ended up
having to do was hire back a bunch of those people as
(42:41):
independent contractors and thenpay them more money than they
were paying them as employees atthe time, right?
Because they had to have that skill.
And we that's one of our biggestconcerns now in the, in the
scientific, medical and scientific and research space.
And, you know, you think about all the stuff that's happened in
(43:04):
the federal government or blank brain trust that too bad this
wasn't out at the beginning of this year.
That could have been the AI toolthat would might potentially,
you know, replace the experienceof some of those people.
But. So for folks who are interested
in that, it's expert scale dot AI.
(43:25):
And as you can well tell from Karen's reaction, there's no
lack of application. If we can be of service to you,
be it a coach, be it repetitive questionnaire or you're looking
to encapsulate some expertise, contact us.
If you're a founder investormatsdot AI, there's actually 100%
(43:46):
you're going to learn something potentially and if we can help
you, we will be there for you. OK, and with that, I want to
encourage people. Thank you so much for being on
the show. Doctor Alan Kadish of Investor
Match AI, that is the dot AI that is the website and expert
scale dot AI and you know, all kinds of other experiences.
(44:10):
And I want to encourage people to go and you know, go to our go
get the books inside secrets. You can look on Amazon.
We got two of them now. One is the deep dive for Angel
investors and accredited investors, and the other one is
a accredited adjacent for crowdfunding investors and on
ramp to that and within the compassionless Academy that will
(44:33):
be out soon. You know, if intro and advanced
forces and I think that expert scale AI is going to help me
deliver on the master classes, the the mastermind sessions, all
of those kind of things that people want to come and say.
What do you think about this deal?
(44:53):
What should I look at for this company and that company, it's
going to be some good synergies there with all of the investors
that will be coming out of this training and after reading the
books and. So there you go.
It's a pleasure. Thank you for the opportunity
and I'll look forward to being of service.
Thank you. Talk to you later everybody.
Onwards and upwards. Thanks, Alan.
(45:14):
Bye. Thank you for listening to this
podcast, The Compassionate Capitalist Show, brought to you
by Cougar and Capital Holdings with Care Brands as host.
You are encouraged to visit the website kugarand.com to learn
more about how Karen and her team help investors and Angel
(45:38):
groups make money by avoiding investing in deals that suck.
And how the Kugarand Capital companies and partners help
entrepreneurs breakthrough theirbarriers to capital and live
their dream by building companies that can scale and
create generational wealth for their founders and investors.
If your business could benefit from exposure to our audience of
(46:01):
business executives, entrepreneurs, and investors, we
are seeking financial partners and sponsors for the
Compassionate Capitalist Show tohelp us take this podcast beyond
our 150,000 listeners and amplify the message of the
Compassionate capitalist movement by making this a Top 50
business podcast. The Capacity Capitalist Show is
(46:21):
available on YouTube, Apple podcast, iTunes, TuneIn,
Stitchers, Spotify, Pandora, andGoogle Podcast.
Contact us at karenrance.co to learn more.
And as a listener, you can do your part of the Compassionate
Capitalist movement by subscribing wherever you listen
to podcasts and sharing this show with your friends and
(46:42):
colleagues. Be sure to pick up your copy of
Karen's bestseller that launchedthe Compassionate Capitalist
movement. Inside secrets to Angel
investing. A step by step strategies to
leverage private equity investment for passive wealth
creation. Thank you for listening.
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