Episode 11: The Power of Relationship-Driven Angel Investing | Patrick Farrell

Patrick Farrell founded Potomac Angel Capital (PAC) in early 2022 to bring like-minded angel investors together in the D.C. area to invest in mission-driven, early-stage entrepreneurs for mutual financial benefit, lasting impact, and meaningful relationship. As the Executive Director, Patrick is intimately involved in sourcing deals, hosting events, leading diligence, and serving as a trusted advisor to investors/portfolio companies. In late 2023, he moved to Austin, TX to expand PAC and plant a second angel network as part of a vision to enable flourishing entrepreneurial ecosystems in cities across the U.S.

Prior to PAC, as part of the founding executive team at Nehemiah Security, Patrick was responsible for evaluating acquisition and funding opportunities to grow and eventually exit the business. Patrick was also responsible for Operations at Nehemiah, where he functioned as an executive leader in legal, recruiting, compliance, security, procurement, and cross departmental projects.

Patrick is a graduate of Vanderbilt University with a double major in Human & Organizational Development and Economics, where he attended on a full-tuition Dean’s Academic Scholarship.

During our conversation, he discusses:

• The benefits of investing together versus investing alone

• Challenges in running and operating angel networks

• The importance of the founder's spiritual and emotional health

• Evaluating founders based on specific traits such as openness and boldness

• Starting Potomac Angel Capital and the expansion to Austin

• Emphasis on relationships and community within the investment process

• Balancing impact with potential profitability in investments

• Navigating the macroeconomic factors affecting early-stage investments

• Lessons learned and the potential pitfalls in sticking to core values

Listen now on Spotify, Apple Podcasts, and YouTube.

What We Cover:

• 00:00 Introduction

• 01:06 Meet Patrick Farrell

• 02:48 Patrick's Semester at Sea Adventure

• 08:42 Founding Potomac Angel Capital

• 11:19 The Importance of Relationships in Investing

• 13:32 Evaluating Founders and Core Values

• 18:25 Challenges of Running an Angel Network

• 22:36 Expanding to Austin

• 25:49 Trends in Entrepreneurship and Investing

• 29:26 Balancing Impact and Profitability

• 36:12 Final Thoughts

Connect with Patrick

• LinkedIn: https://www.linkedin.com/in/pdfarrell/

• Website: https://www.potomacangelcapital.com/

Connect with Andrew

• Newsletter: https://thediligentobserver.substack.com

• X: https://twitter.com/AKazlow

• LinkedIn: https://www.linkedin.com/in/andrewkazlow/

• Book: https://angelops.pitchfact.com/

• Website: https://pitchfact.com/

Stuff We Reference

• Vanderbilt University: https://www.vanderbilt.edu/

• Semester at Sea: https://www.semesteratsea.org/

• Manaus Brazil: https://www.britannica.com/place/Manaus

• DEET: https://www.epa.gov/insect-repellents/deet

• Please Assist Me: https://www.pleaseassistme.com/

• Stephanie Cummings: https://www.linkedin.com/in/stephanie-cummings-mba-046849101/

• Rashad Cummings: https://www.linkedin.com/in/rashad-cummings-8a60854a/

• Principles by Ray Dalio: https://www.principles.com/

• Grant Van Cleve: https://www.linkedin.com/in/grantvc/

• Tech Coast Angels: https://tcaventuregroup.com/

• South by Southwest: https://www.sxsw.com/

• CTAN (Central Texas Angel Network): https://www.ctan.com/

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All opinions expressed are personal and may not reflect the views of the individual’s organization or of The Diligent Observer. Not investment advice.