Episode 36: "Don't Panic" | Angel Capital Association Chair Dr. Ron Weissman on Navigating Market Volatility, Surging Investment in First-Time CEOs, and Why Downturns Are Great Investment Windows

Today's episode explores three ideas that caught my attention:

1. Angels are insulated from market turbulence - Ron's data shows angels maintaining pre-2021 investment patterns despite market volatility in recent months.

2. First-time CEOs are getting MORE funding - Contrary to what you'd expect in uncertain times, angels are backing more first-timers than ever. This challenges the conventional "flight to safety" narrative.

3. Long-view investing as emotional discipline - Ron's emphasis on the reality of 5-8 year time horizons for angel investments is a psychological framework that helps investors avoid reactive decisions to monthly or quarterly fluctuations.

I explore these ideas and more with Ron Weissman, Chair of the Board of Directors at the ACA.

Dr. Ron Weissman brings over 25 years in global venture capital and nearly two decades as an angel investor to his role as Chair of the Board of Directors at the Angel Capital Association. As Chairman of the Software Industry Group at Band of Angels, Silicon Valley's oldest angel network, Ron combines deep technical knowledge with historical perspective, having previously served as a CMO and Director under Steve Jobs at NeXT. His unique background as both a former Professor of History and technology executive made this a fascinating lesson in navigating uncertainty.

During our conversation, Ron shares:

• Evidence-based perspective on angel resilience backed by quantitative data showing investment patterns remain consistent despite economic turbulence.

• A counterintuitive insight that angels are funding more first-time CEOs than ever before, challenging the assumption that uncertain markets drive investors toward experienced founders.

• Historical patterns showing funds started after economic downturns "went higher, faster" and why this makes economic turbulence potentially advantageous for disciplined investors.

What We Cover:

• 00:00 Introduction

• 02:21 Excitement in AI and Healthcare

• 03:07 Resilience of Angel Investors

• 03:15 Sophistication in Angel Investing

• 04:28 Persistence and Resilience of Angels

• 05:39 Investment Strategies During Downturns

• 06:23 Staying Connected with Ron Weissman

Listen now on Spotify, Apple Podcasts, and YouTube.

Connect with Ron

• LinkedIn: https://www.linkedin.com/in/ronald-weissman-36a3841/

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

• Denominator Effect by Ron Weissman: https://www.dropbox.com/scl/fi/xiswnnn41h6juqch7802x/Denominator-Effect.pdf?rlkey=hvxvhjj7idu5h7cu9chy5akpc&st=pfcuaa40&dl=0

• Mary Todd Lincoln: https://www.britannica.com/biography/Mary-Todd-Lincoln

• Angel Capital Association (ACA): https://angelcapitalassociation.org/

• Band of Angels: https://www.bandangels.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.