Spotlight on Applied Sciences Angel Investor Jennifer Thompson
Jennifer Thompson is the CEO and Founder of Herstasis Health Inc., a Vancouver-based women’s health technology company. She is an expert in the commercialization of applied science, and is an active angel investor and board member.
What interests you about angel investing?
I really enjoy the due diligence process and have developed my own one-page model. I specialize in impact hardware investing, which requires a deep dive into the problem being solved, who else is doing this, what the patent landscape looks like, where else the invention could be used, and how many millions of people would benefit from it, not just rich North Americans.
Tell us about your first investment
My first angel investment was in EnWave Corporation, which was actually a publicly traded company (TSX-V:ENW). I was brought in to help resurrect a “trading by appointment” hardware startup that had gone public during the tech boom several years before. I have never worked so hard to raise such little money, and I ended up participating in each of the private placements over time just to try to help get us over the goal line. It turns out friends and family financings are not just limited to illiquid private startups. It’s been successful, but I’m still waiting for the big swing out of the park, as I’ve held shares since 2005.
What advice do you have for someone who is considering angel investing?
Take the opportunity to learn about the founders, company, product, market, (actual) research and development status, intellectual property, governance, strategic plan and financial acumen — this is the fun part.
Know that the second you write the cheque, that money is gone forever, and you will have no control over the company — unless you fund enough to join the board of directors, which I have done with three startups. Even then, all you can do is help row the boat.
Know that founders are notoriously bad at communicating with shareholders. Find CEOs who take other people’s money seriously and feel an obligation to communicate progress and problems.
Invest in things that are meaningful to you and fit your values. Consider the waste stream in the development and product disposal process. How does the product or service help or hinder the world’s Big Problems.
Consider this: “Me-too” products are boring. No one needs another “Facebook but for... ,” for example. Use your money to make a positive difference in the world for people who don’t look like you that you will never meet.
The NACO Spotlight Series showcases stories and insights from across Canada’s innovation ecosystem. This Spotlight is supported by the BDC Capital Women in Technology (WIT) Venture Fund.
