15. Women Funding Women: Sherry Shannon-Vanstone is Closing the Venture Capital Gender Gap
EPISODE 15
In this episode of Figure Eight, Julie welcomes Sherry Shannon-Vanstone, US government mathematician turned award-winning Silicon Valley startup leader turned venture capital collective co-founder. Julie and Sherry discuss building inclusive work cultures, the complexities of launching a new data analytics venture, and Sherry's efforts to reduce the gender disparity in venture capital.
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Sherry Shannon-Vanstone is a purpose-driven, successful serial tech entrepreneur known for building high-performing teams. As a trailblazing woman in information security, she’s a strategic risk-taker who led start-ups to successful exits in Silicon Valley and the Toronto-Waterloo Tech corridor with two IPOs and two acquisitions.
Sherry earned a MSc. in mathematics and worked as a cryptologic mathematician with the US Government. This experience provided the foundation for a career in info security including VP Electronic Commerce at MasterCard and C suite positions with info security start-ups: Cylink, Certicom and TrustPoint Innovation, which she co-founded with her late husband, Dr. Scott A. Vanstone.
At Certicom Sherry was the catalyst in the commercialization of Elliptic Curve Cryptography (ECC), which formed the foundation of the security for Blackberry Rim. Today ECC is utilized to provide the highest level of security in every mobile device worldwide.
In 2018, Sherry founded Profound Impact, a data analytics firm that leverages AI to provide the perfect match of funding opportunities with academic and corporate researchers.
In 2019, Sherry received an Honorary Doctorate of Laws from Western University. She was also the recipient of the prestigious Leadership Excellence Award in Entrepreneurship for 2020 from Women in Communications and Technology. In 2021 Sherry received the Rogers KW Oktoberfest Woman of the Year in Science, Technology, Engineering, Arts and Math. In 2015 she was named WOW – the World Waterloo Region’s Female Innovator of the Year.
Currently, Sherry serves as a board or advisory member for CANARIE, Protexxa, AI Partnerships and APMA Project Arrow among others. She’s also a highly sought-after speaker on topics such leadership, entrepreneurism and how to create a collaborative corporate culture. Additionally, Sherry is the co-founder of Women Funding Women, a collective with a mission to bridge the gap in funding for women led ventures.
You can connect with Profound Impact through their website, LinkedIn, Facebook, Instagram, Twitter, and Youtube. You can also connect with Sherry via her LinkedIn.
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Julie and Sherry discuss...
Early Career and Experience in Information Security (00:02:31)
Sherry discusses her transition from a mathematician in the US government to becoming an entrepreneur in the tech industry. Sherry shares her experience working in information security, joining a startup in Silicon Valley, and her role in sales in Asia-Pacific.
Perseverance in Entrepreneurship (00:08:55)
Sherry emphasizes the importance of persistence and perseverance in entrepreneurship, sharing her experiences and setbacks in building successful businesses.
Founding a Company and Building a Culture (00:17:50)
Sherry's efforts to build a culture of inclusivity and respect, forging strong company core values, and her experiences with nepotism. Sherry discusses hiring a high-caliber team.
Acquisition and Transition (00:26:59)
The decision to sell the company, alignment with the acquirer's values, and missed opportunities in the acquisition process.
Women Funding Women Collective (00:38:11)
Sherry discusses amplifying female angel investors and her role in co-founding a venture capital collective that bridges the funding gap for women-led ventures. -
Julie (00:00:04) - Welcome to Figure Eight , where we feature inspiring stories of women entrepreneurs who have grown their businesses to seven and eight figures revenue. If you are in the mix of growing a bigger business, these stories are for you. Join us as we explore where the tough spots are, how to overcome them, and how to prepare yourself for the next portion of the climb. I'm your host, Julie Ellis. I'm an author, entrepreneur, and a growth in leadership coach who co-founded, grew, and exited an eight figure business. This led me to exploring why some women achieve great things, and that led to my book, Big Gorgeous Goals. Let's explore the systems, processes, and people that help us grow our businesses to new heights. If you're interested in growing your business, this podcast will help. Now let's get going. Hello and welcome to this episode of Figure Eight . My name is Julie Ellis, your host, and I am very excited today to welcome Sherry Shannon-Vanstone to the podcast. Sherry is a purpose driven, successful serial tech entrepreneur known for building high performance teams.
Julie (00:01:22) - And this woman, she's a trailblazer. She has spent most of her career in information security, taking strategic risks and leading her startups to successful exits in both Silicon Valley and in the Toronto Waterloo Corridor. She has had two IPOs and two other acquisitions, and I am so excited to talk to her today about the landscape of women investing, about how she's grown her businesses, and about what exciting things she's up to now in the world. So welcome, Sherry.
Sherry (00:01:55) - Thank you, Julie, it's great to be here with you and looking forward to this conversation today.
Julie (00:02:01) - So am I. I'm so excited to talk to you because I think, you know, as I was looking over your bio and and looking at the notes from when we talked before and just thinking about, you know, what it must have been like for you starting out in your career, working for the US government as a mathematician and, and how that sort of winding path led you to Canada and where you are now and all of the things.
Sherry (00:02:28) - Yes, I'm ready to jump in.
Julie (00:02:31) - Okay. So why don't you tell me about those sort of early years and how you became an entrepreneur in the beginning?
Sherry (00:02:37) - So I, I, I have a master's degree in and, mathematics from the University of Tennessee. And when I was interviewing after obtaining that degree, I, I found it quite interesting at that time that they didn't really know what to do with women mathematicians. I think we all were supposed to teach high school or university. so they asked me if I would wanted to go back. the people I interviewed with, companies I interviewed and go back and get an engineering degree. And I go, no, because mathematicians make fun of engineers.
Julie (00:03:16) - So there's a healthy competition there.
Sherry (00:03:20) - Yeah. And I and when I was a teaching assistant. So I taught a lot of engineers when I was in a grad school. So anyway, I finally found a job that wanted me to be a mathematician, and that was with the US government as a crypto logic mathematician.
Sherry (00:03:33) - So I joined that organization and learned so much. Of course, I spent six years there, and during that time, especially my last two years, I, was in a position where I was working with the State Department and doing some liaison work with industry. And I had an opportunity to really get to know some startups and some large corporations too. And I, I just felt that, oh, you know, I really like this atmosphere, especially in the startup area. And so when it came an opportunity and my boss's boss at this organization told me, Sherry, you've had two promotions at two years. you're your stellar performer, but you're not going to go any further in this office. And it's because my boss, my boss wasn't going anywhere. And that would have been the position that I would be moving into. And he wasn't moving because he was going to retire in that. And that's why my boss's boss was telling me this. And he and I thinking, he said, well, you're going to have to move on.
Sherry (00:04:40) - And I thought, well, if I'm moving on, I'm moving on. So I, so I contacted one of the companies that I was that I had met during this, position that I had and yes, they wanted me, you know, startup. Right. But startups want people, and that will do almost anything. And so I went to Silicon Valley and, and one of the reasons they did was because I felt that. The desire to, I won't say control, but to be more in control of my own destiny, especially financially. Yes.
Julie (00:05:15) - Well, and I mean, talk about two things that are kind of at polar ends of the spectrum in terms of big government and where you were, and then all of a sudden you end up in startup land, which is, you know, completely different environment. Yeah.
Sherry (00:05:30) - And the wonderful thing is that with a startup, they they need a variety of skills. So I had my mathematics background, a very technical background, but I wanted to be in sales.
Sherry (00:05:42) - So that was awesome for me because I was one of the only salesperson who understood the technology that was selling inside and out, and it was an information security company. And so it was perfect for me, and I still was able to do a little bit of technical work. But it was because of that foundation. I had an information security by being a crypto logic mathematician and also the credibility that I had. So I asked, the startup, Xilinx, the name, and I asked the president if I could be head of sales in Asia-Pacific and South America, Latin America. I had I spent a year in Costa Rica. I had a degree also in Spanish, and I thought, oh, that would be great. Yeah. Tell me, what did I know? I so I just started out and I and it was, great the reception that I received in Asia-Pacific, especially in. Countries such as Japan, where a woman, especially a Western woman, is an anomaly, especially in a business study.
Sherry (00:06:50) - there's specific roles at that time and maybe even now. That said, this is what a woman does. And that and that, society. So with the degree that I had and with my credentials, I was accepted. And, it really positioned me to be very successful with dealing with large multinational companies, which we sold to in those areas such as IBM and the Bank of Japan. So large entities that that probably would have looked at me differently without my credentials. So it was great to have those, and also because I knew what I was talking about in the South, I wasn't just a salesperson, I was a salesperson with a deep knowledge of the mathematics behind, what I was selling.
Julie (00:07:39) - Which meant I imagine that you could not only sort of sell, but you could also answer a lot of the technical questions that would come back during that process, which would speed up the cycle of closing deals. I would think.
Sherry (00:07:54) - Yes. And it did. So I ended up not continuing with Latin America because I was so busy with Asia Pacific.
Sherry (00:08:00) - So I was the, the director of sales for Asia Pacific handling from Japan to New Zealand. had the opportunity to travel, I think it was 13 different countries, 13 different cultures. And, was able to set up an office in Singapore, get the revenue from very low to over $2 million and a few and a few, years. So and it was, it was a great legacy that I had there, when I decided to step back and just do domestic sales after that. But it was it was a great opportunity. And and you get that with a startup, an opportunity that I would not I probably would not have been, well, maybe I would have, but again, with my credentials and my background, but to be saying being able to define my own job. Yes.
Julie (00:08:55) - And use the entrepreneurial skill set that would serve you so well then as you continue to progress in your career.
Sherry (00:09:02) - Yes. And then with the entrepreneurial part, I would say that, I learned, and this is a tough one because I'm on my fifth startup now.
Sherry (00:09:14) - is, sometimes you feel it feels like you're going one step forward and two steps back. So you just have to persevere and process and, you know, believe that, that this is going to happen. You don't know when it's going to happen. It may take years for it to happen. And, as you know, and or it may take you and then and then you get a break, you get someone who comes along and wants to buy your company, or someone comes along that that, will position you as a strategic partnership and prepare you for an IPO or, you know, so it's, it's just that's the that's something I did learn there, in Asia-Pacific, dealing with many different cultures, but also setting up all these distribution channels that working with nationals that you once you get in, you're in. With these large corporations? Yes.
Julie (00:10:09) - So it's it's being persistent enough to get the door to open for you.
Sherry (00:10:13) - Yes. Yes. And showing up. I want to just tell you one story.
Sherry (00:10:19) - And when I was in Australia, I was selling these facts and cryptos to try and to to the federal, the Australian Federal Police, that's the FBI or I don't know whether to be here, the RCMP in Canada. and I was there. I was the only vendor that came to the meeting in person. The US vendors, others were not there. I was on them. So I sat there and waited for the decision. I was between three companies, my company, two other companies, and they said, we're not going to give it to you. We're giving it to X company. And I'm sitting there knowing X company, and I knew X company was not telling the truth about the product. They didn't have the product. Yeah, all of that. But I had to sit there and listen to this. Would I really wanted to cry. But I had to sit there thinking, I can get through this. I'm not going to. Go low. Go stay high on this one. And.
Sherry (00:11:24) - And said and said through this know our meeting. So I leave I go back to my hotel and I go for a jog. When I get back, I get a call. That's a call. a message from me at the hotel line. And they said a please call back. And so I did, and they said, come back. We're going to give it to you. It's because you showed up, you were here. And maybe also my non negative response to their decision. The first decision you passed.
Julie (00:11:55) - You passed a test you didn't know you were taking. Yes.
Sherry (00:11:59) - Yeah but but just being there and going to Australia and going to Asia-Pacific, I would spend three weeks stints there. And so it's a lot of.
Julie (00:12:08) - Traveling through the region. Yes.
Sherry (00:12:11) - And I was there so much that they might my, my, my customers thought I lived in Australia. Yeah that's great. Good. So anyway it was about so I learned a big lesson is that showing up and how you react to negative.
Sherry (00:12:27) - not positive. Not happy about it. News. So. Yeah. So.
Julie (00:12:34) - And now I mean how it's so, you know, fascinating to me. I mean, here you have four exits already. You have two IPOs and two sales and and you're at it again, which I do want to make sure we get to today. Because I think it's really interesting what you're doing now. but how did you create you know, by showing up. How did you create those opportunities?
Sherry (00:13:00) - I, I, I believe that, That kind of lesson. I'm still trying to learn that, I continuously learn and remind myself about listening to the customer and what they need and being an advocate for them, but especially in, as a startup. And you're going back to the company and, and you're telling them that this is what the customers are asking for, and sometimes they don't want to hear that. so it just being being an advocate for my customers and letting them know I'm here, this is I'm not selling a widget that you'll never see me again.
Sherry (00:13:42) - I'm a partner in this especially. We did large worldwide deployments of information security equipment. So they have to know that we can the company can do that. And also that I would be their advocate, worldwide. So yeah. So that was part of that, that, that learning that maybe as a larger company, it had more infrastructure. And so, so I was I did throw myself completely into the job. I was married at the time. I didn't have children, but I spent one year, 250 nights away from home. Yeah. So I think there is a sacrifice that that we all made as when. And I think that's one of the things that entrepreneurs need to understand. and you may not have to spend 250 nights away because you may have a local company in Dublin, but there is that, and and I've heard your story. You know, how you know, you started with an in a basement and then you go somewhere else, and you and it's a lot of work. And you were doing everything from, you know, the product, the shipping it to, you know, handling the logistics and all of that.
Sherry (00:14:54) - And so, on, on my journey, it has been, keep moving forward. You're going to have setbacks and, try to stay in there long enough to get that break, because I believe if you keep showing up and you're persistent and advocating and listening to the customers that you're going to find, sometimes you have to pivot the product. And we have done that at my current company. so that's that, that happens to.
Julie (00:15:23) - Yeah, yeah. And it's thinking of keeping with the dance right. That forward and back. Like it can feel hard and difficult and demoralizing or I think you can look at it like a dance. You know, you're dancing your way forward and you take a couple of steps back and there's a rhythm to it that I think if you can find it and, you know, keep peeling away those layers and figuring out what's at the heart of it and not being afraid to, you know, to make that product fit that you're looking for. So the market wants you. it takes persistence, though, for sure.
Julie (00:15:59) - And there are days where you wonder why you ever started.
Sherry (00:16:03) - Yes, I would say, in every company I, I've been involved with, like I, I and in the middle of I go, why did I think that this was going to be easier this time? and I believe it is easier because I think you understand. You understand that it's not going to be. Oh, a great high all the time. there's going to be disappointments and.
Julie (00:16:29) - so, yeah. And I think you learn how to put the resources around you and you have more means in terms of maybe financial, but also just means in terms of the network that you build and the people that you know, to, to put, to put people around you to help you solve those problems.
Sherry (00:16:45) - Yes. And when I was just when, when I was in information security, I could do that. Well because I, I tell everybody I knew who to hire and who not to hire. and I think that's a big. Plus and man who, who, who is a team player who's not a team player.
Sherry (00:17:03) - so when I, I, I love Silicon Valley. one, reason main reason was I wanted to, be more. I was a senior manager. I was a shareholder in the company, but I wasn't, as, influential as I hope. I was the only woman and and senior management. And I was the only one who really would stand up to the CEO. And it was quite toxic environment for both male and female. And I had several women on my staff and men that I just had to fight for all the time. And so I decided that I wanted to I wanted to be part of a company that I could have more influence, start a company, or come in as a as a partner or early, you know.
Julie (00:17:50) - But at that kind of like founding level.
Sherry (00:17:53) - Yes. Yeah. And so when I came to Canada, that's what I was looking for. well, what I mean came to count, I, I found some companies in Canada that I thought I this could, this could work for me.
Sherry (00:18:04) - And so I interviewed in Ottawa and I interviewed in Mississauga and, ended up with a company called Serta. Com. And I was in there as, as, as again, one of the, investors and one of the individuals that and was, you know, taking a very good position in the US and coming to Canada. And, when I told the, the chairman of the board who I was interviewing with, what I was making because I was a commission, commission and, and, salary and very successful and he was he, he fell off his chair when he and and then I'm taking a cut because it's US dollars, Canadian dollars, taxes and all that. And so I that it was a risk and I was willing to make it because I really believed that I could help build a culture of inclusivity, of respect for of of others. And also that I was I was a leader in this and information security. I came in, I was able to do great things there too. I ended up becoming involved with the founder of the company.
Sherry (00:19:14) - And so I did step aside and and taken a step away from the company for that reason, but still stayed involved as an investor in the company. But I wasn't day to day. As a company grew, there was a sense of, perspective of that. There was nepotism. And I, you know, here I could say, no, I've been in this area for, you know, 15 years, and this is what I've done. But for the the optics, I stepped away but still stayed involved because I was with the founder of the company. and so, that I kept coming back and doing consulting work and things that while I did, I worked at Mastercard for a year in New York, and I started consulting for some of the banks and started my own consulting company, but kept coming back as they needed me on special projects. And then when, BlackBerry acquired, certain we did security for BlackBerry, not just BlackBerry, but all the cell phone vendors. we I it was a little better than I could come on back on, as, as as a a resource for them.
Sherry (00:20:21) - so. But what I found out that even though I was one of the them. Founders or being related to the fountain. I really didn't have as much influence as I hoped I would. So in 2011, when I left BlackBerry, then my late husband Scott left BlackBerry. In 2012, we decided to find our own company, just the two of us. And then it was great that we could then completely. I stopped completely, but couldn't, have more say in what happened. And then Scott passed away in 2014, and then I took on the CEO role and my I wanted to build this foundation of culture of a team. And we built up we had 40 people when I sold the company, very culture based, core values. and I would say that if you spoke to any of them today, they would say that was something that was unique for, for them, being in a company that was so strong and it was part of our foundation.
Julie (00:21:32) - Yeah. Yeah. Well, and like at Mabel's labels, that was a huge part of what we did was having those core values, having that culture foundation, having a lot of fun together.
Julie (00:21:44) - And, you know, we also had things like unlimited vacation and, you know, we ran on a results only work environment. So people were judged on the quality of the work they were turning out, not on whether they were five minutes late to the office every day. Yeah. You know, and that really made the culture something people wanted to be a part of. Yes. Yeah.
Sherry (00:22:07) - Yeah. You know, which.
Julie (00:22:08) - Was which was definitely a competitive advantage for us.
Sherry (00:22:12) - Yes. And that was one of the things that that you found out later is it's not just the people that you work with. It's the people who leave and then want to come back and they go, oh, you know, I thought I wanted to leave for another opportunity. And it's not the same. It's not the culture is there. It's it's not the respect. It's not the appreciation for for your work and your contribution. And so yes, that's a that's happened to me both touchpoint and then where I am with now with profound impact.
Sherry (00:22:40) - We had a couple and and some of it was just that we gave them flexibility. We said we still need you, but go off and, you know, be fractional with us and fractional with them and see what happens. And then they come back and say, no, we want I want to be here. yes.
Julie (00:22:55) - It's interesting to see, though, isn't it? Like the way you were doing things a decade ago is where the world is. Some is arriving now, and it's so interesting to see the curve of, you know, some of those things at that time were very sort of revolutionary in business. And now they're really common.
Sherry (00:23:17) - Yeah, I think it's because I, I held on to it and wanted it was because I saw what the toxicity in and the company I was with in Silicon Valley and what they did to the morale of the people. And, you know how many people we lost? Very good talent because of that. So I thought, you know what? That we can do it better.
Sherry (00:23:41) - We can do better than this.
Julie (00:23:43) - And, yeah, like you think of what you can do with a high caliber of people and a great work environment with great culture and core values. It's like a rocket ship. You can all get on two together. Yes. Yeah, yeah. And so when did you realize that, you know, that team building piece was, was unique in sort of what you could bring to the table? Was it at that time when you built that team or did you kind of know already?
Sherry (00:24:12) - I believe it was when I built the, the team at Trust Point. it was the first time that I was the the only founder, I mean, after Scott passed away. So I'm the sole founder, and therefore, I mean, Scott had many, many other talents. Even one of my later became a shareholder told me, he said, I don't see you moving forward with this company on your own. Yeah. I mean, I'm still I mean, I was known in the area.
Sherry (00:24:43) - Scott was much more well known in the academic area. And he you know it. He ended up having 450 patents at BlackBerry at SortOf.Com and for it sold to BlackBerry. So he had a very strong core. And we were invited to be the security experts for the US Department of Transportation, being a Canadian company in the driverless car and connected vehicle space because of Scott, not me, even though I had, you know, my my background with the US government, it was because of his credentials and his, his abilities. So, yeah, it's we have different we have different skill sets. So mine was about let's concentrate on building the best team, bringing the best people. And again, I know. Many of the people that I hired because I hired them, they had worked at home with me, or I knew them through the industry, so I knew who to hire and who not to hire. of course, when the company got past maybe 15 people, that wasn't the case.
Sherry (00:25:44) - So I had to start. but by then we had a core, culture and the core values, and so people could see that when they came in. And so that we were able.
Julie (00:25:54) - And the team then who was hiring also was hiring with that mirror in front of them. Yes. Yeah.
Sherry (00:26:00) - So so I said that that was when I really saw it come to fruition. And it wasn't just a theory of mind that this could really work, that culture does matter. And so it was a little disappointing after I sold my company, that. it didn't continue.
Julie (00:26:23) - Yeah. That is that is the really hard thing about letting go of your babies. Haha, yeah.
Sherry (00:26:30) - I know I've never had children, but I told everyone I said it's if your son when they get married you are still the mother, but you're not in control it or you're not. You're not really guiding their life because the wife and the family. so I felt that way, and it was. I said this when I was going through the acquisition, it was Robert Bosch who, private German company who bought Trust Point.
Sherry (00:26:59) - And there's a couple of reasons I chose to sell. One, we were in the automotive industry. We were doing security and putting it on the automobiles. yeah, there's a lot of liability, and we're just a startup. And, so I found and I talked to some advisors. I said, how how can I get them to accept my tendencies and said, you can't, you're too small. So I thought, well, I need to have a partner. And really, I was looking with just an investment from, Bosch. And that's how it came in the beginning. They were going to invest. And of course, that would been great. But after I found out more about them, I love them. Their private company, that's 97% owned by a foundation that builds hospitals and schools around the world with their with the profits. And, and so I love that it aligned with me, my core values. And it also was, I knew another company that they had acquired, a German company, but I knew them in the space, and I thought that had gone well, but I wasn't on the inside.
Sherry (00:28:08) - And then I knew, their local person. He was my late husband's academic son. So he was he got his master's degree with Scott. So I thought, you know, these are the stars are aligned and everything's aligned. And he adds, and that's great. And, but the biggest mistake I made was not shopping around. And looking at a Canadian company.
Sherry (00:28:36) - So I signed an LOI. With with the Robert Robert Bosch, and a few days later, I received a telephone call from a Canadian company that wanted to acquire us. It was just like, I missed that. Yeah, so it could have kept it Canadian, and that's what I would have hoped to do. And I don't know what the culture would have been, different anyways. So, but I, I did only agree to stay on from one year of transition, and I think that was best for me. Right.
Julie (00:29:09) - Well, and that's a whole interesting, dance in the selling or exiting of a business is. Yes.
Julie (00:29:16) - What does the acquirer want from the founders? And one year is often very short. Yes. Yeah, but but a good decision in hindsight. like, you know, to have made to only stay a year. Yes.
Sherry (00:29:32) - They had asked for two. I agreed to one and with an option and I think we at the end we we. I. They weren't utilizing me in the way that I thought they should. And again, that was a different culture. And then I was also seeing what's happening to the culture and, not being able again, being that mother of the, the, the groom, that I could not I could not control it. I did not have any influence not being.
Julie (00:30:02) - Able to have that influence and, and continue to have the guiding hand that had, had really kept things on that path. Yeah, yeah. So when you left there, I mean, you, you know, it was on to another business really.
Sherry (00:30:17) - Well, I, I left there March 31st, 2018 and I thought I'm just going to rewire.
Sherry (00:30:24) - I'm not going to start another company. I even said that publicly. And, I said I would write a book about what happened to me, but I'm not going to read it again because I'm not doing it again. So, but a few months later, I was talking to University of Waterloo about a project, and, and we were talking about. Some a project that would measure the worldwide impact of the math faculty. And because Scott, my late husband, had been a faculty member there for 35 years, we thought that would be a good start. And it started out with a story about Scott, but I said, no, it's bigger than this, and it's not a book. It's got to be dynamic and the influence is still going on. The impact is still occurring. So I think it's something that needs to be, More dynamic, like a platform. And so then I quickly realized that the university did not have the time or the resources to do it. So I said, I guess I'll start another company.
Sherry (00:31:23) - So that got me that that pushed me into the area of data data analytics, big data and an AI.
Julie (00:31:32) - Which although to those of us who are non mathematicians, sounds like they wouldn't be all that far from each other. But really, you entered a whole new field when you started this company and you know where you where you sort of set your expertise down at the door and had to go through with a learner mentality and that, you know, how were you going to put together what you needed to do?
Sherry (00:31:58) - And I didn't realize quickly enough, that I didn't know what I didn't know. So, so I, I, I set up the company Profound Impact to be a remote, to be a virtual company. Now, this was 2018, and, but I wanted some people that I'd worked with previously that were in the US and across Canada. And I said, why not? This is not a security company, and we don't have to have the brick and mortar a security company with all the development of the software, very controlled servers, everything's locked down.
Sherry (00:32:36) - And, you know, so you have to have that, that, the brick and mortar. But I said, with this company, no, we don't. We're, we quickly chose AWS as a partner. we wanted to be a serverless architect. Sure. so I got some things right. but I thought, you know what? I. I don't need in-house developers. I'll just. I'll just use some company. So that's what I mean. I, I knew, I didn't know, but I thought that I could just go out there and do an RFP and choose the right company. I did hire a project manager, and and so I spun my wills, maybe over a year, spending a lot of money and time, on it. And then I finally realized I have to bring in a full time, project manager. Technical manager. And I found someone was very. For to attest that I found this young man. And again, I'm working with some of the people I've worked before.
Sherry (00:33:38) - But this is different. This is software as a service. It's, you know, AWS at that time, we were on the leading edge of, of the server of the serverless architecture. And so I was able to find this young man who was born in Pakistan, lived in Dubai, what came to Canada, lived in Mississauga. And, he loved they love Canada opportunities. But he was still he had worked for a multinational ad tech company and, and, and a software as a service company. So I thought and, and he had managed multiple teams across many time zones, geographical areas. So I brought him out and he was in a managed the, the, the contractor that we were using. And finally he said, we, we have to bring we have to bring it in-house. So then we were able to build on Kerry.
Julie (00:34:32) - We're not getting where we need to go.
Sherry (00:34:34) - So that's because I didn't know what he didn't know. And and then also not having the the network in the data area and in the and in the AI area, it's taken me a lot longer than it did with my previous startup startups to get going.
Sherry (00:34:51) - And so our first product was this summit, this platform to measure the worldwide impact of the faculty of math at Waterloo. And they still use our platform, bringing in the stakeholders and not only measuring what they set, the metrics, measuring that and getting the data and bring it all in, but also to visualize impact. So we were working with new technologies and new, new software packages to try to not to, to visualize it too. So it was exciting. I learned a lot. And, but we just it just wouldn't scale. It's a lot of work for one organization to do that. And then so we identified another product also with the University of Waterloo co-op program, where we looked at their their, programming impact, and did a feedback loop for them, and, you know, actionable insights again. data quite data intensive. and we just I said it just doesn't scale. We have to we have to continue talking to the customer and find out what they they what what keeps them up at night, what real problem do they have? And that's when we had identified the, the the problem that we're solving with our current product research impact is to, match funding opportunities with researchers, with industry partners, and using AI and machine learning.
Sherry (00:36:15) - And so that was that's, you know, that's there's $2.5 trillion of, of research globally available. That's US dollars. and, they're it's estimated that 30% of that is wasted.
Julie (00:36:30) - Wow. So you can make a huge impact. Yes. If you can just take a.
Sherry (00:36:34) - Slice, you know, people to be more efficient, the process and to get the best research results, because we have some huge problems here that we have to solve. And if we are wasting that much money, that could go to fundamental and breakthrough research. Come on. It's a it's a no brainer. Yeah, but it is. But it's still, you know, working with universities and colleges. We're doing better on the industry partner side. We have several, relationships with Haltech and Innovation Factory now and other regional innovation centers. Plus we just announced, one with AI partnerships. They have 130 companies that they work with, have 80 in Canada, 50 in the US to, to help them that they're all I, utilizing AI or developing AI and they, they need funding to so non diluted dilutive funding.
Sherry (00:37:33) - So yeah.
Julie (00:37:34) - Yes. Yes. Yeah. Well and that opens up the I think talk about raising money. And I know that with profound impact. You were raising money and you know entering the rooms full of mostly not women who you were talking to. And you ended up taking a novel approach when you raised your round, which really was, you know, reaching out to you became your you became your own salesperson once again. And you, you know, reached into your network and to the relationships you had in order to close the round you were trying.
Sherry (00:38:11) - So, What I want to step back that when I was raising money for my previous companies, and Scott passed away right when we were raising around, and I was able to complete that round, without him. and but it did. But I had such credibility in that space and experience. And so it wasn't difficult to find the investors. I, I hate to say that because now it's so difficult for me that that now I'm in a new area, trying to sell to a customer base when people say, oh, you're selling universities, forget it.
Sherry (00:38:52) - It takes forever. So, so. Yeah. So lack of experience, not having the credibility in the space made it more difficult for me. So when I was going out and there were a lot of people raising now. and so pitching to the angel networks, which takes, you know, they, they vet, everyone coming through the door and they probably get 60 per month or more and they're down to two or 3 or 4 every month to present. So it's the vetting process itself. And then once you're there, getting them to respond because they, they, they listen to a lot of pitches. So, I was just not getting the response and I was frustrated about it.
Sherry (00:39:41) – I found that I. Was I was the only woman founder pitching. And there were, as I said, not very many women in the audience. So I decided, you know what? This is not working for me. And I listened to the to the input that the, the, the potential investors at the Angel networks gave me.
Sherry (00:40:02) - And I did everything that they said to do, you know, but I was still not getting the response that I needed. So I, I called up a friend of mine who runs a family office in Toronto, and I said, I'd like to come in and do a pitch to you, to your wealthy. Patrons clients, and I would love to have as many women in them in the room. And then. And then I networked with some of my other friends that were women of wealth, that had never invested an angel invested before, and I thought, this is a good opportunity. And I was able to close my round at 3.125 million, with the majority being first time. Angel. That female.
Julie (00:40:46) - That's amazing. That's amazing. And so, you know, that obviously sets you up to continue growing the company, but it also set you up to found something else.
Sherry (00:40:57) - One of my good friends at long term friends is Deborah Rosati. And she had been with Celtic Castle.
Sherry (00:41:02) - She'd been VC. She'd been at the startup. In fact, she was. That was a company I had interviewed him with in Ottawa. Was her company her. she was the CFO of that company anyway, so I've known I knew her a long time, and so I invited her to be an investor and also to come on our board as chairman of the board, chairperson of the board. And, so she saw she came with me to the, to the pitches, most of them. And she saw the frustration that I was having and that I wasn't making any progress. She also came to the family office and saw the the response there that was quite different. So she said, why don't we this is this is just not you, Sherry. This is women in general. And there's a, you know, 1.6 or 1.9% of all VC goes to women that ventures. And, you know, we know all the statistics and how do we change that. So we said, well, we want to see if what we can do.
Sherry (00:42:02) - And so she reached out to Lara Zink, who was at that time with a Capital Women Capital Markets. And we just said we want to we want to do something. Quit talking about it. What could we do? We did not want to be a fund. We, you know, women led funds out there. So we we just wanted we want to be a collective to help bridge that funding gap for, for for seed and precede, funding for women led ventures. And how do we do that? We said, let's bring let's. Women Funding Women started and said, it's a collective and this is what we're going to do. And, and we have this kind of to help the ecosystem to. Get more angel female angel investors. And then, about that time, the 51 published their, research on if we could get women to to invest at the level that men invest, we could add $3.2 trillion to the available capital. And so those that's what we're doing with this Women Funding Women as to, to, amplify what's going on, work with the angel groups, work with the VC funds that are focusing or almost all of them would will listen to women and and then also.
Sherry (00:43:31) - Be aware of the education that's out there, the courses that are available for learning, how to invest, how to become an angel investor, what to look for, and then also to work with the VCs to to say there's a. Unconscious bias here in the process. And so what can we do in that area to. So we're really not the band. We're not playing the instruments but we're trying to, you know, lead the orchestra to to say, okay, we have all of this valuable resources here and here and here. Let's bring a spotlight and let's see if we can do something in a collective.
Julie (00:44:14) - And, and I think what I like about it is the, the, you know the idea of that collective. So let's stop worrying about whose turf is where and who's working at what. But how do we all come together and find that common ground. So to raise everybody.
Sherry (00:44:29) - We had our launch in February 7th and we had a limited space. So we we were oversubscribed. Always loved that.
Sherry (00:44:39) - and then the next day that was the launch. And then the next day we did a funder founder, roundtable, which we were we had targeted 20 companies. We we had them, but a few, few, couldn't make it at the last minute. So I believe we had 18 companies, women led ventures all across all all across industries, from retail to food to, you know, to agriculture, and, and even, you know, you know, there was technology and they're high tech too. So it was great to see that. And bringing in the funders, the funders, we had VCs, we had angel investors. We have aspiring VCs out of, a cohort out of the, the Canadian, ventures, Capital Ventures fund, the association. And so and so it was great. So we were able to match these this matchmaking and, and you know, the individuals were able to speak to the funders, were able to move around and speak to many different of the founders. So that's just the beginning.
Sherry (00:45:45) - We we don't want it to end there. We're looking at doing local events. And I appreciate the events that you that Angel one hosted at Haltech Tech Place, was that that's what we want to see. We wanted to see that. And then I attended another one such as that, that, G10 and and Waterloo was involved. And so we're seeing that and we want to see more of the activities at, at the local level where we are doing an event in Vancouver, similar to the one in Toronto, and it's October the 30th and 31st. So, yes. So Women Funding Women. Let's go, let's go, let's, let's get out there and let's make a difference and let's be the catalyst for change.
Julie (00:46:29) - Yeah. Well, and that is really why I'm doing this show is to really share stories, so that we can be what we see in the world. Yes. And so, I think, you know, seeing seeing somebody, you know, who, like you, has been able to exit and found several businesses or found then exit, I guess, is probably the right order.
Julie (00:46:55) - I think, you know, helps people understand, you know, that it's possible. Yes. And that they can become a trailblazer and do that also. And so I think that, you know, the kind of like raising of us all up is, is a really important piece for, for us.
Sherry (00:47:12) - Yes I agree.
Julie (00:47:13) - Yeah.
Sherry (00:47:14) - We just need to keep going. Put that, you know, as you said, the dance keep keep dancing, you know, one step forward, two steps back. Keep going because we are making progress.
Julie (00:47:25) - Yes. Yep. And we just need to keep working on it and keep talking about it. So I want to thank you for coming and sharing your story today. And, it was great having this conversation with you. And I look forward to watching your journey as you grow this business.
Sherry (00:47:41) - Well, thank you, Julie, again for this opportunity. I appreciate it, and I look forward to hearing from any of the audience to reach out to me through LinkedIn.
Julie (00:47:52) - Okay. Awesome. And we'll include your LinkedIn link in the show notes. Thanks, Sherry. I hope you enjoyed today's episode. Please remember to hit subscribe on your favorite podcast platform. So you won't miss any episodes. Figure Eight isn’t just a podcast, it's a way of seeing the big, gorgeous goals of women entrepreneurs coming to life. If you're interested in learning more, you can find my book, Big Gorgeous Goals on Amazon anywhere you might live. For more about my growth and leadership training programs, visit JulieEllis.ca to see how we might work together. Read my blog or sign up to get your free diagnostic. Are you ready for growth? Once again. That's JulieEllis.ca When we work together, we all win. See you again soon for another episode of Figure Eight.