I met Delilah Panio in March at a roundtable discussion hosted by the Austin Tech Council. Red Fan Founder Kathleen Lucente moderated a conversation with Panio and CEO of Quisitive Technology Solutions, Inc, Mike Reinhart. Panio and Reinhart discussed how he navigated taking his company public on the TSX Venture Exchange in August 2018.
After the conversation, I was drawn to Panio. She and I both have a passion for uplifting and empowering women-owned and led businesses, and it was clear that she is at the forefront of making a difference within that space. After the event, I snagged her for a few minutes, and then later, she joined Lucente and me for a deeper conversation.
The conversation began with Panio sharing her roots growing up in a small Canadian town, loving to write. She eventually got an English degree and pursued an MBA in Enterprise Development. Her desire to help companies grow developed, so just as the stock market was diving in 2000, she joined the Canadian Venture Exchange in Calgary.
Her resume has since been filled with years of experience in helping companies access growth capital. Her tenure with the Toronto Stock Exchange is impressive and impactful. In her current role there, as Vice President of US Capital Formation, she is guiding companies on the best steps to fund their companies through the Canadian markets and providing them with an alternative route to traditional private funding options. Educating companies about the North American capital markets has given Panio a platform to help level the playing field for women, nonbinary folks, and people of color.
Her passion is rooted in her modest upbringing and vision to change the ecosystem of the financing world.
RF: The amount of VC dollars going to female entrepreneurs continues to decrease or stay the same. How have you seen the opportunities and experiences of female entrepreneurs improve in your time in this industry?
DP: I did a lot in microfinance in my early career and realized that women had minimal access to capital. In the US, in 2021, women received the most money they ever had in the history of time, but it was still only 2% of total capital, and for women of color, it is even less. We are missing out on these women’s ideas because they aren’t getting funded. These are companies and solutions we are missing out on. The world needs these companies and their products and services.
And in the public markets, while it was a record year for IPOs led by women, it was just 12 out of over 950. So yeah, it’s a record but still a long way to go.
RF: Why do you think that more women are not going public?
DP: The whole system needs to be addressed. You can’t go public if you don’t raise the VC money, and you don’t get that if you aren’t getting the angel investment money, and you get that money unless you have people around you who can provide the “friends and family” money. That is critical early-stage money. And if you are a woman or a nonbinary person, a person of color with a brilliant idea, and you don’t have access to friends and family money, the chances of getting to the stage of going public are very low.
RF: So what is the biggest solution?
DP: Women investing in women. The reality is that people invest in who and what they know. So we need more women investing in these women-led businesses. The good news is that women have a lot of money. It’s true. Specifically, in the western world, white women have and influence significant money. We can mobilize to gain more wealth via investing. and transform it into more wealth.
That translates to economic power when we can truly make the changes we want to see in the world. It all comes from economic power. I wish that weren’t the way that the world is, but it is the reality. The biggest solution is that we can change that as women invest more in other women. Women are learning and becoming educated. And we are doing that now.
When Tracy Gray founded her nonprofit, We Are Enough, she asked me to be a co-founder. Our mission is to educate women globally at all socio-economic levels on why and how to invest in women led businesses or look at public markets through a gender lens. We are just raising some funding and working on a global campaign to educate women to invest in women.
RF: How do you see the environment shift?
DP: In the last couple of years, funds have been created to fund more women-led companies. But most of these are “micro-funds” with under $50 million, with limited impact as they each invest at the early stage in a few companies each year.. And they are just starting to raise those funds, so it will take five to ten years to see any real impact.
But the reality is that most female funds raise under 100 million dollars. In contrast, most male funds are a billion or 500 million dollars; more importantly, those companies are in later stages.
Here is what causes me concern, it’s incredible to have early stage funds, but if there is no capital for the next round beyond series A, what will happen to these companies?
So, early stage funds getting developed is excellent, but if there is no series B capital available, those companies will not survive. The second and third rounds need to be raising big institutional dollars.
That is why the stats are as they are. Women have to be more mindful of that. They are more profitable because they have to be. Bootstrapped and efficient with the capital they get because they aren’t sure there is any more capital coming.
RF: Why do you think that larger traditional financial organizations focused on diversity internally are not showcasing that externally in their investments and funding?
DP: Statistically, financial advisors and investment bankers are men. Women don’t typically lead VC funds. If you are a woman in the VC firm, you’re probably the only woman there, and you have to be sure that the investments you recommend will work. It’s risky from that perspective.
Fortuna Funding helps female-led early-stage businesses get investor-ready to attract aligned capital and know if you want that capital. Does it align with your values?
Start with your why. Why are you building the company? Get educated about raising the money and determine all of your options. Don’t be naive. Really think about if there are other ways to grow the business. Only a tiny percentage of companies are even eligible for venture capital, and that percentage is even smaller if you are a woman or person of color.
Last year, UBS published the funding gap report around funding for women. They hired me this year to lead a cohort of 50 women that included UBS Client Advisors and female founders from around the world for an investor-readiness program to begin to close that gap. They didn’t just bring in female founders but also advisors working with entrepreneurs in their communities. It’s the whole ecosystem. These banks and other organizations can start seeing these businesses’ commercial benefits. As one of the biggest banks in the world, they have the opportunity to engage female founders and investors; that is where we have hope.
It’s a significant shift.
RF: What are the top questions a female founder should ask to ensure values are aligned?
DP: First, be clear on your own why. What are you personally looking to get from this? When you get a term sheet and investment opportunity, you need to ask tough questions like, “How quickly will you write me off if I’m no longer a unicorn in your portfolio?”
Next, understand why that investor is truly investing in you and your company. Is it your portfolio? Is it because they love the mission? Get clear. Venture capital has its place in the funding ecosystem, but they have an obligation to its shareholders and minimum returns to make.. Every investor has a motivation that you need to ensure is aligned with your why and your mission. What happens when things don’t go well, or we don’t hit those milestones? What do you do when things happen? Will you help or walk away? Don’t be afraid to ask those questions.
Last, listen to your gut… to your intuition. Talk to other CEOs who have gotten investments from that investor but are no longer around. Don’t just look at the successful investments. Look at the failed opportunities. Talk to those CEOs. How did they show up for them? When you go into the meeting, know that you are equal. They need you as much as you need them. Owning your worth and coming in with equal energy is important.
RF: How do you think the market will change?
DP: I am not an economist and don’t know what will happen. But I believe that things are cyclical. Last year was a record year in all public and private markets, and that was not sustainable to keep going at those rates.
Last year was all growth, but now the focus is on revenue and profitability. But the reality is there is always interest in the next growth stories. Crypto, Metaverse, NFT platforms, and still significant interest in renewable energy, clean impact investing, etc. Good companies can still raise capital.
RF: What do you see as the next wave?
DP: Women’s Health Tech, that industry will grow. There is a need, and consumer demand is there. Women as investors will be looking at these companies. Women will invest in companies that are making sense to them and for them. As more women become investors, they will impact those spaces. Sectors like Femtech will grow based on more women led companies and investors.
Companies that address the mental health crisis, burnout and adjusting to the stresses in our world. Diagnostic companies.
Eldercare. And anything climate related like renewable energy. Sustainable fashion. Recycling, upcycling. As women, we are stewards of this planet. We understand it.
What do you feel has carried you this far in your career?
Having a strong work ethic and treating everyone with equal respect.
Life Mantra:
Show up. Be delightful. Then let the magic happen.
