Today's episode explores three ideas that caught my attention:
① Angel investing needs better data: Rick explains how his Six Sigma background shaped the way he thinks about angel investing, including why CTAN tracks dozens of metrics across its investment portfolio.
② Due diligence changes outcomes: Rick shares how board involvement, written diligence, follow-on investing, and industry diversification have all shown up in CTAN’s data as meaningful drivers of better angel investing outcomes.
③Many angel groups are still operating like supper clubs: Rick argues that too many groups gather, hear pitches, write checks, and fail to track what happens next. His challenge is simple: angel investing is an asset class, and it requires process.
Rick spent decades in finance leadership at Motorola and Cisco, where he helped apply Six Sigma principles to financial operations. In this conversation, recorded live at the Angel Capital Association Annual Summit, Rick explains how that same data-driven mindset shaped his approach to angel investing, portfolio tracking, member education, due diligence, and post-investment involvement.
During our conversation, Rick shares:
How Cisco moved from a three-week monthly close to a one-day close.
Why CTAN tracks 78 metrics across its angel investment portfolio.
Why Rick believes many angel groups still operate more like supper clubs than professional investor groups.
How board involvement and formal due diligence have affected CTAN’s investment outcomes.
Why successful angel investing often takes five to eight years.
Why Rick is concerned about secondary markets, SaaS liquidity, and the concentration of capital flowing into AI.
What We Cover:
0:00 Introduction
1:14 Live from the ACA Summit
1:50 Baylor Angel Network’s reputation in the angel community
2:23 Steven’s origin story as a Baylor analyst
4:09 What Steven remembers from the analyst experience
6:10 Re-envisioning the analyst program
6:50 Serving students, investors, and entrepreneurs
7:19 Baylor’s four-semester analyst sequence
9:39 University support and clear investment boundaries
10:12 Giving and investing come from different pockets
13:20 Why priority clarity matters
14:52 Why short internships fall short
15:25 Inside Baylor’s entrepreneurial finance course
18:21 The alumni flywheel from analyst to member
20:37 Why investor belief can shape a student’s career
23:51 Member education, AI, and continuing learning
27:21 How the affiliated fund serves members
30:00 Diversification or luck in angel investing
33:21 Advice for other universities building angel networks
36:26 Closing
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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.
