Triangle Tweener Talks

00:00:04 - Announcer
Welcome to Tweener Madness, the high stakes startup showdown where eight promising companies go head to head for a $25,000 investment prize from the Triangle Tweener Fund. But before the competition kicks off, let's meet the people making the tough calls, the judges. In this special meet the Judges episode, we're sitting down with the investors and industry leaders who will be asking the hard hitting questions, evaluating the startups and ultimately deciding who moves forward in this bracket sty competition. Each round, three judges will vote on which startups advance leading up to the finals in early April where one company will take home the top prize from the judges. You'll hear about their backgrounds, what they look for in a winning startup, and maybe even get a little inside scoop on their decision making process. So if you're a founder looking for investment, an entrepreneur curious about what investors really want, or just someone who loves a good business battle, you are in the right place. Let's meet the judges. Here's your host, Scott Wingo.

00:01:05 - Scot Wingo
Appreciate you joining us today and thanks for being a judge on our exciting Tweener Madness contest.

00:01:11 - Jan Davis
Always happy to pitch in and help out, Scott. And I love what you're doing with the Tweener Madness.

00:01:18 - Scot Wingo
Thanks, thanks. We appreciate you all you do for the ecosystem. And this is going to be a short interview with Jan. We actually did a very long one. So if you go to Tweenertalks, you can see the full backstory on Jane. So because we have a long form podcast out there already, let's just kind of jump into Jan the investor. You're also an operator and you've got like a long rich history there. But let's talk about your investing background. When did you start investing in startups? And you know, walk us through what, what you're, what you're primarily focused on today when you're investing.

00:01:50 - Jan Davis
I started investing in startups in early stage companies in 2008, 2009, started out, I joined a board of directors of Showing Time showing management services for residential real estate and made an investment there and then of course invested a lot of time over the years on that board. In 2010 we've moved to the Triangle and I had made a couple of investments in Chicagoland and invested in one company independently here in the Triangle. And then I heard that Triangle Angel Partners was getting organized and I thought that being in a fund would give me several things that I was looking for. One is better deal flow, more companies, better process. I didn't feel very confident in my due diligence processes and I Thought being able to share the load and do that with other people would help. And then as a newcomer to the community, I also saw it as a great way to get to know people in the Triangle. And all that's proven to be true. So we started TAP in 2011. So that was when I started. I actually tried to count up, but because I'm in TAP one, TAP two, and now RTP Angel Fund. I invest through Can. I'm in Tweener. I kind of lost track.

00:03:22 - Scot Wingo
You're in well over. If just for us, you're in 135, and then you probably add in like another 20 or 30. So we're kind of close to 200 investments, I would imagine. Yeah.

00:03:32 - Jan Davis
And I've written separate checks myself into companies that are both in this market and out of this market. But typically, it's people that I've known for a long time in whom I have high level of confidence. But it's been really a good, fun thing to do. And as we angels say, we do it to do a little good, help the ecosystem, help entrepreneurs, make a little money. Not all my retirement money is in this pot. And definitely have fun.

00:04:05 - Scot Wingo
Yeah. Yeah. And then, so, you know, you're primarily representing RTP Angel Fund in this contest, even though you're in a lot of. You've got your fingers in a lot of pies. Give folks a quick kind of reverse pitch for what is RTP Angel Fund? When did you guys start? What kind of checks do you write? And that kind of thing.

00:04:26 - Jan Davis
Okay, so RTP Angel Fund is the outgrowth of Triangle Angel Partners and RRTP Capital. So tap had two funds, tap one and tap two. We didn't have the energy to raise a cap three. RTP Capital was a network, so each individual made his or her own decision, and the RTPC people wanted to raise a new fund. So the four of us came together during COVID I remember it was cold, and we were sitting outside at LA Farm, and that was Elaine Boley, Mark Friedman, Merle Mason, and myself. And we started talking about this idea of jointly raising a fund. We got serious about it in late 22 and added ashisholikar from TAP and Mary Musakia from RTPC as other founders, and recruited John Cambier, who I'm sure many people know through Idea Fund Partners, as our fund manager, our fractional fund manager. And we went out and started raising money in the beginning of 23. We had our first close at the end of June of 23 on $3 million, and then our final close in June of 24. So we've been actively investing for about 18 months. We, our check size is 175. We have invested in everything from B2C software to healthcare IT to a med device company to a precision manufacturing company. We won't invest in drug development or Main street businesses, but aside from that, we're pretty open.

00:06:07 - Scot Wingo
Got it. Cool. And about how many investments has RTP Angel Fund made since it started?

00:06:12 - Jan Davis
We've made eight investments. Our goal was to make 15 in three years. And so we're pretty much on track for that. We've got a night that's been approved, but we're waiting for the round to come together to write that check. You know how that goes. Yeah.

00:06:30 - Scot Wingo
And if folks want to learn more, it's@rtpangelfund.com and then so it's always fun to ask people that have been investing for a long time, like you, do you have like a, you know, obviously you still have a lot still invested, but like, what's been your biggest win so far? And then also there's this idea of an anti portfolio, which is kind of where you said no to something that you now regret because it did so well.

00:06:52 - Jan Davis
Yep. So my best personal return was showing time. The company whose board I joined back in 2007, I was on that board for 14 years and then we sold that company to Zillow for half a billion dollars in the fall of 21. So it's a really nice exit for everybody involved locally. I mean, I think Carpe was probably the best for Tap two. I see you smiling. You know, Carpe Adzer, subsequently, Kevl was the best for Tap one. Our biggest miss was Pindo. We had a chance to invest in the seed round of Pindo and didn't. And didn't take that opportunity. And every time I see Todd Olson, I tell him how much I regret it.

00:07:46 - Scot Wingo
Yeah, that was one a lot of local people missed. So, yeah, it's. This is why it's a hard business, because when you first hear these ideas, it's really hard to know what the big ones are going to be and what the small ones are. Just for people interested in angel investing, like, for showing time, was that, like, you don't have to. I don't want specifics, but, you know, the reason we do this is multifaceted. We like to support companies, everything. But in the day, you're, you're. It's not charity. We're kind of looking for a return. Was that one like, you know, we talk about, you Know, kind of one of the golden things is like a, you know, a really big outcome is like more than 10x what you put in. So you put in X, and If you get 10x out, was that a more than 10x or free?

00:08:28 - Jan Davis
Yes, it was. It definitely was. And I'd been in it long enough to take advantage of the qualified small business stock capital gains tax exemption as well, which made it even sweeter.

00:08:41 - Scot Wingo
Yeah. And what that does, if you're new to this whole idea of angel investing, is it gives the founders and investors, if you hold, what is it, five years, then you get your first. And this number changes all the time, so go research it. But you get your first $10 million without taxes, so. So the government tries to incent investment in entrepreneurial activities and gives you a tax break for that, which is, you know, very appreciated when you have one of these. These kind of power law kind of outcomes.

00:09:07 - Jan Davis
Yes.

00:09:09 - Scot Wingo
Awesome. So do you have any advice for the folks that are going to be applying for and ultimately pitching? You've probably seen, I don't know how many pitches you've seen, but, you know, what's your, you know, Jan's advice for people pitching?

00:09:25 - Jan Davis
Be sure to cover how big is the market, what is the opportunity for your company, and if possible, why are you the best people in the world to do this company? There's a great theory about not just product market fit, but founder market fit. And if you have special reasons why you and your team are the best to do this, that's incredibly compelling.

00:09:53 - Scot Wingo
Awesome. Thanks. We appreciate you doing this. So you're going to see a lot more of Jan here. She's going to be one of our contestants, our judges in the Tweener Menace. Jan will look forward to seeing it. You've got a trip between now and then, so you have a good trip, but we'll see you when you get back.

00:10:08 - Jan Davis
That sounds great. See you on March 5th, I think.

00:10:11 - Scot Wingo
Yep, absolutely. Thanks, Jan. Take care.

00:10:19 - Announcer
That's a wrap on this Ms. Meet the Judges episode. Now you know the minds behind the decisions, the investors and industry leaders who will be putting these startups to the test. As Tweener Madness kicks off. They'll be asking the tough questions, making the tough calls, and deciding who advances in the bracket, all leading up to the finals in early April. Make sure you're subscribed so you don't miss a single matchup. And if you want to follow along with all things Tweener Madness and the triangle startup scene, head on over to tweenertimes.com Also, if you're thinking about launching your own podcast or want to bring professional production to your brand, check out earfluence.com the competition is about to begin and we'll see you soon in the next episode.