Angel Investor Spotlight: Sandra Stabel
Wondering who these crazy people are that keep investing in local startups? Well we’ve been asking ourselves the same question. We’d like to share what we’ve been learning from our own Startup TNT investment community. They have tips to share with founders and first-time investors on investing (and life!).
Sandra is the Director, Digital Health Partnerships for Heart & Stroke.. She’s also worked as a clinician in primary care, a funder with a government agency, a startup executive, and a consultant. It’s no wonder she was interested in our Life Sciences Summit as her first taste of angel investing!
Sandra is also a die-hard, born and raised Edmontonian. She loves the local food scene, knows the River Valley like the back of her hand, and often runs into people she went to kindergarten with, because Edmonton is the biggest small town. She’s married to Scott and raising two fiercely independent little girls, Audrey and Margaux.
I had such a fun time sitting down with Sandra and chatting about her first time investing as an angel!
AA: Hey Sandra! Thanks for sitting down with me today… So tell me, why do you choose to do angel investing?
SS: Well, I’ve been involved in the startup ecosystem in Edmonton for about 5 years, and I didn’t really feel like I knew enough about early-stage investing. So I took the Financial Feminist Investing Lab course with The 51. The course really made early-stage investing seem more accessible, and illuminated the process that investors go through, like due diligence and risk assessments.
After taking the course, I started coming to Happy Hours, hanging with the TNT crew and then coming in as a first-time investor with the Life Sciences Summit. I found that the $5,000 investment lowers the threshold and makes investing more accessible. I thought of it like an investment in my education, as the due diligence process and investor education sessions were super educational. And the $5K is basically the same cost as a college course.
I also really liked having the personal connection that you get, when you invest locally. I could see where the money was going, and the direct impact it would have.
AA: I love the comparison to the $5,000 investment to a college course. What a great way to think about it! Ok, so as a first-time investor, what do you think is important for people to know about angel investing?
SS: I think people should know that it’s not as intimidating or as scary as you would expect it to be. And being part of a group, a syndicate like TNT, allows the barriers to come down and for me people to be part of it. It takes the confusion out of things like accreditation, and what that all means. Lowering these barriers gives us a chance to have more diverse individuals in angel investing - I want to see the percentage of women angel investors go from 14% to much much higher.
And you should know that at the end of the day, angel investing is all about risk mitigation. What risks are you willing to take with your money? Do you understand what you’re investing in? What are the factors that make you say yes and make you say no? You should also come in knowing that you won’t see a return quickly or possibly ever - startups take time to build and many fail.
AA: Love it. Ok, so what should founders/startups keep in mind when pitching their companies or ideas?
SS: They need to find the balance between being polished and being authentic and realistic. Founders should avoid overly grandiose statements, like “There are absolutely no competitors in this market!” My bullshit meter is finely tuned and when I hear statements like that, it worries me.
And know that the due diligence is thorough. Investors are going to go past the pitch, and look under the hood. They’re going to investigate and look at the opportunities, the threats, and the weaknesses of a business. They’re also going to look hard at the founder and the team, to see who they really are. So make sure you’re prepared, organized, and ready to build a deeper relationship.
AA: Great tips, Sandra. Last question - why do you think it's important to invest in local companies?
SS: I think that local entrepreneurs are the heartbeat of the local economy. If you want to have an economic impact locally, you need the innovators, the dreamers, the big-thinkers. And if you want to keep the innovators, you need to have a good pool of funding.
And on a more personal level, my investment thesis relies heavily on having an impact, financially and socially. When you invest in local companies, there’s a clearer line of sight of the impact you’re having. I like meeting the founders and being in the ecosystem, and being able to go for a coffee or a beer with them, and discuss their business.
AA: Love it. Can’t wait until we can go for beers, haha. So glad you joined our syndicate, Sandra, and thank you so much for your time today!
SS: Anytime! Thanks for having me.
