Ron Weismann: [00:00:00] angels are really persistent capital.

healthcare has the best data, the best longitudinal data of any market in the world.

and in a world of great economic uncertainty, we've been in chaos for years, ever since COVID.

And what I'm really excited about is the resilience of the angels and the angel organizations I'm seeing.

it takes five to eight years to mature as an angel-backed company.

There is one change, is that we're not at all fleeing risk. The number of first time CEOs we are funding is the largest since we began quantifying that 

"Sorry, what happened to your husband, but how'd you like to play?"

don't panic, we will get through this.

Andrew Kazlow: Welcome to the Diligent Observer, the first podcast exclusively focused on helping angels see what others miss. I'm your host, Andrew, and every week we explore what works, what doesn't, and why through conversations with [00:01:00] experienced startup investors and operators.

My guest today for this special episode recorded live at the A CA Summit in Denver is Ron Weissman, chair of the board of Directors at the Angel Capital Association and chairman of the software industry group at Band of Angels, arguably Silicon Valley's oldest angel network. With over 25 years in global venture capital, nearly two decades as an angel investor and hundreds of hours spent in service of the broader angel community.

Ron is truly a legend in this space. In this short episode, Ron addresses the resilience of angel investors during economic turbulence, why angels shouldn't panic about short-term market fluctuations, and shares his excitement about AI applications and healthcare. I hope you enjoy learning from Ron. As much as I did.

One quick note before we jump in. If you're an angel investor or thinking about becoming one, you need to know about the Angel Capital Association. The A [00:02:00] CA is an incredible community for connecting with experienced investors, tapping into tons of well-documented best practices and training resources, and just generally keeping up to speed with what's happening in the angel space.

Now I've really enjoyed getting connected over the last few years and that's why I'm so excited to partner with the a CA to bring you this special series of episodes live from their annual summit in Denver. If you're serious about angel investing, you will definitely want to check them out. I.

Ron, thank you for being with me today. I'd love to hear what you're excited about right now? 

Ron Weismann: I'm excited about several things. First technically I'm very excited by the, use of artificial intelligence in healthcare. And the reason I'm picking that market is because healthcare has the best data, the best longitudinal data of any market in the world.

We've been collecting health data for anywhere from, you know 40 to [00:03:00] 80 years. And the data allows us a much, much more precise level of accuracy and how to train, how to manipulate, how to use our artificial intelligence tools. So, on the technical side, there's that. But we're here at the Angel Capital Association and in a world of great economic uncertainty, we've been in chaos for years, ever since COVID.

And what I'm really excited about is the resilience of the angels and the angel organizations I'm seeing. I'm very pumped. I'm excited by the level of sophistication I see. And this is one of the brightest spots in the economy for me is angel investing, what angels are doing, conversations I'm having are at a whole higher level of sophistication.

So that's really what's exciting me. 

Andrew Kazlow: Fantastic.

Ron, you just recently presented to our attendees here at the ACA on what should angels be thinking about with regard [00:04:00] to this current market environment. I wonder if you could share with us some of the key takeaways from that presentation. 

Ron Weismann: About three days before I boarded the plane for Denver.

We've had massive economic turmoil spurred on by the recent round of tariffs, not to discuss the implications of those tariffs. Is like the old question to Mary Lincoln: "Sorry, what happened to your husband, but how'd you like to play?" So again, thinking, putting together data about the implications of what just happened for this investment community.

The insights I shared with the group here, number one is that angels are really persistent capital. We shouldn't care what happens this month or next year, or the quarterly fluctuations because it takes five to eight years to mature as an angel-backed company. Second, as I just [00:05:00] mentioned, angels are very resilient. Now, how do I know that? Because we collect data about the behavior of our angel groups and the behavior hasn't changed at all. We are doing the same thing that we're doing in 2018, 2019, well before, the bubble of 2021.

The number of deals we do, the kinds of companies we fund are exactly the same. There is one change, is that we're not at all fleeing risk. The number of first time CEOs we are funding is the largest since we began quantifying that and the data we collect. So we're resilient, we're persistent, we're not scared.

We're continuing our standard practice and great companies are continuing to get funded. So my number one insight is, don't panic, we will get through this. In fact, if you look at the years, if [00:06:00] you look at angel organizations and you look at venture capital by the year in which a fund was started, the funds investing after the, let's say, the great recession after the COVID mess went higher, faster.

And recovered quickly to new heights after the downturns. So downturns are a great time to invest. Don't be scared, don't lose your cool. Stay with your best practices and at the end, it might take a bit longer. All will work out well.

Andrew Kazlow: Ron, thank you for those comments and for taking the time to condense them for our audience. How can we stay connected to you and to your work as you continue to monitor this situation and kinda the evolving economic landscape? 

Ron Weismann: Well, thank you. My email is r weissman, R-W-E-I-S-S-M-A-N, at Gmail. I'm a frequent public speaker. I will be increasingly put [00:07:00] notices of talks I'm giving or copies of talks online. So, uh, check me out online at LinkedIn and I'm happy to share with you presentations and talks I've been giving. 

Andrew Kazlow: Fantastic. Thank you, Dr. Weissman, for your time. Listeners, we may have the opportunity to share the slides or takeaways from that presentation, if we are able to, we'll include that in the show notes. Otherwise, thanks for listening, and we look forward to seeing you on the next conversation. Dr. Weissman, thank you for your time today.

Ron Weismann: Thank you. Thank you.

Andrew Kazlow: Thanks for listening to this episode of The Diligent Observer. I'm your host, Andrew, and if you're an angel investor looking for essential angel intel in five minutes every week, I think you'd enjoy my newsletter. I send my best stuff, interesting deals, and more straight to your inbox so you never miss a thing.

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