Elaine Bolle is a self-proclaimed recovering entrepreneur.
Throughout her 20-year career, she has filled almost every seat at the investment table – including running companies, selling companies, buying companies and more. It was natural for her to step into the role of angel investor when she moved to North Carolina in 2010.
We talked with her about how she approaches her work and how entrepreneurs need to be smart about their relationships.
Who is RTP Capital Associates and what is your role there?
Unlike some other angel “groups” or venture funds, RTP Capital Associates is a member-based angel investor network founded six years ago. We currently have 60 members. We evaluate deals together, hold pre-screen meetings, hold monthly meetings, and do due diligence as a group, but in the end it is up to the individual whether or not they want to write a check.
We have a lot of flexibility in how we invest and we bring together a diverse set of skills based on our past experiences. We believe that the quality of our insight, advice and expertise is almost as important as the dollars we put into those companies.
For me personally, I made better investments if I know something about what I am talking about. I currently serve on the board, but previously served as president and chaired the investment committee.
What companies have you invested in?
To date, we have invested more than $4 million in 25+ companies. That diversity I just mentioned allows us to look at a variety of deals, so our investments have been diverse as well. Examples include a brewery (Fortnight Brewing Company), AgTech (AgTI), consumer (FilterEasy), EdTech (Testive), and medical device companies (Camras Vision).
What attracted you to angel investing?
As I said, I am recovering entrepreneur, and I have literally held every seat at the investment table. I had started one of the first webmail companies and had run several venture-backed companies out in Silicon Valley.
I really didn’t want to be a full-time CEO again, working 160 hours a week, but I missed working with early-stage companies and wanted to get back to my roots. I also realize that not a lot of women have had the opportunities I have, and I think it is important for women entrepreneurs to know that they can get VC dollars. It’s important for those women entrepreneurs to see women investors who have been in their shoes. That is part of what drives me to do what I do.
How many women are involved in RTP Capital Associates?
I am one of of two women on the board of RTP Capital and we currently have 10 women (12 percent of our membership) in the network. We have made it a priority to actively recruit more women angels and expect that number to increase.
I also serve on the board of the Angel Capital Association of North America, and we have experienced an increase in the number of women angels there as well. We are working hard to change our image of angel investors, that we are not just a bunch of experienced white men. We are becoming more diverse, especially in terms of women. The vice chairman of the ACA is actually a very experienced woman investor.
What is driving that change (increase in women investors)?
It’s the same thing that is driving more women getting CEO jobs. It is a natural progression. A lot more attention is being paid to the fact that better diversity on a board or in the leadership of a company leads to more success. There have also been significant increases in the number of women in MBA program, in law schools, etc. With these increases, it’s natural that more women would get involved in angel investing.
While we still have a huge pay gap, I would like to say the cup is more half-full. Success breeds success.
Have you also seen an increase in the number of women entrepreneurs?
Yes. I can’t give you an exact count but we are definitely seeing more women entrepreneurs at RTP Capital. We have made investments in some great women-led companies. Camras Vision was founded by Lucinda Camras, who now serves as their Chief Scientific Officer. Michelle Harper is the CEO of Savvi Care. We are in the process of doing another investment, led by a woman entrepreneur.
I think it helps to have women investors, friendly faces in the room. They want to talk to people who understand what they are talking about, who understand why certain things can be a problem. There are just some companies, some markets and some problems that women can relate to better.
What kind of advice would you give to young entrepreneurs?
First of all, ensure that the problem you are solving is truly a migraine – not just a small headache that bothers me a little bit. It’s so hard to build a business. Make sure it’s worth your while to spend all that time and energy because being an entrepreneur is the hardest thing you will ever do.
Know your investors. Do your homework. The easiest thing to sell is something the customer wants to buy. So figure out what kind of business they have done in the past, who they have done deals with, and how they are to work with. Make sure you know where that investor is coming from.
Understand your sales process. Know who is really buying your product. For example, when an entrepreneur says they are selling into hospitals, that doesn’t make sense because buildings don’t buy things. Who is actually buying? Is it the nursing staff, an executive, etc.? They also need to understand that the user and the buyer may be two different people.
I think one of the best things you can do if you want to start a company, is to go work for a large competitor before starting your company. You will learn the marketplace, understand all the nuances of that business, who the players are, etc.
That is stuff you can’t learn in business school.
How do entrepreneurs get in front of RTP Capital?
We start with one or two pre-screen meetings each month. The entrepreneur will come in for about an hour. Prior to that, they probably had a coffee with or introduction to one of the members of that pre-screen committee. Out of those pre-screen meetings, we invite two companies to present each month at our member meeting. Based on feedback from our members, we decide if it makes sense to start due diligence. It is typically a 60-day process.
Those initial meetings/connections come from a variety of sources. There are so many resources and/or places to make those connections here in our community. All you need to do is ask. In my opinion, if you are not smart enough to get a warm introduction to one of the angel groups in this area, you are not smart enough to be an entrepreneur.
