Have you ever wondered why entrepreneurs with disabilities are so underrepresented in the startup world? In this episode of "The Angel Next Door Podcast," host Marcia Dawood explores this thought-provoking question with her guest, Diego Mariscal. Diego, who was born with cerebral palsy, is a passionate advocate for disability-focused entrepreneurship. As the founder of an accelerator program for founders with disabilities, Diego shares his insights and experiences to shed light on the challenges and opportunities faced by this community. Diego Mariscal, a pioneer and disruptor in the disability space, joins Marcia to discuss the immense potential of entrepreneurship among people with disabilities. With 1 billion individuals having a disability, Diego highlights the untapped market and the need for inclusive investment practices. He shares his personal journey as both an entrepreneur and an advocate, emphasizing the importance of recognizing and celebrating disabilities as a form of diversity. The episode delves into Diego's efforts to create an ecosystem for disabled entrepreneurs, the significance of Disability Pride Month, and his plans for a groundbreaking micro fund focused on funding startups led by individuals with disabilities.
Have you ever wondered why entrepreneurs with disabilities are so underrepresented in the startup world? In this episode of "The Angel Next Door Podcast," host Marcia Dawood explores this thought-provoking question with her guest, Diego Mariscal.
Diego, who was born with cerebral palsy, is a passionate advocate for disability-focused entrepreneurship. As the founder of an accelerator program for founders with disabilities, Diego shares his insights and experiences to shed light on the challenges and opportunities faced by this community. Diego Mariscal, a pioneer and disruptor in the disability space, joins Marcia to discuss the immense potential of entrepreneurship among people with disabilities. With 1 billion individuals having a disability, Diego highlights the untapped market and the need for inclusive investment practices. He shares his personal journey as both an entrepreneur and an advocate, emphasizing the importance of recognizing and celebrating disabilities as a form of diversity.
The episode delves into Diego's efforts to create an ecosystem for disabled entrepreneurs, the significance of Disability Pride Month, and his plans for a groundbreaking micro fund focused on funding startups led by individuals with disabilities.
To get the latest from Diego Mariscal, you can follow him below!
LinkedIn - https://www.linkedin.com/in/diego-mariscal-6363787a/
Check out Diego's Tedx Talk here - https://www.youtube.com/watch?v=JVG94W0gBPc
Watch Diego's GMA segment - https://www.goodmorningamerica.com/GMA3/video/organization-support-disabled-people-mentorship-101872639
Keely Cat-Wells - https://www.linkedin.com/in/keelycatwells/
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Marcia Dawood:
Hi, Diego.
Diego Mariscal:
Welcome to the show. Hi. Yes, thanks for having me. Marcia really excited.
Marcia Dawood:
I'm excited for our conversation about building awareness for how we get more funding to all types of founders. So why don't you start out by telling us about your background and how you got to where you are now
Diego Mariscal:
Sure, sure. And I'll start from the very beginning, since I was born. I was actually born in the US. By accident. My parents, who are both Mexicans, were shopping, and I was born six months and a half into my mom's pregnancy. She often jokes and says that I've always been really stubborn. Even before I was born, I wanted to get out quickly. And so as a result of me being born prematurely, I have cerebral palsy, which mainly affects my trouble walking, some reading and writing, but primarily trouble walking. And what I was fortunate to experience was because I grew up in Mexico, particularly Monterey, Mexico, which is kind of the Silicon Valley of Mexico, I was exposed to entrepreneurship at an early age and so really saw the power of entrepreneurship to create social change. And when I moved to DC. Thinking that I wanted to influence policy and kind of change the world through the UN or Congress or some other political vehicle, I realized that really, entrepreneurship had the power to do that to me, would seem a more tactical way and a really innovative way to change the world, basically. And at the same time, there weren't enough people with disabilities playing in that space. In fact, we became the only accelerator that is led by people with disabilities that is also for founders with disabilities, focusing on high growth, high impact companies. It's been quite a journey. We've worked with over 600 entrepreneurs worldwide. Out of those 600, about 70 of their startups have gone through our accelerator program. And then collectively, they've been able to raise $50 million, which sounds like a lot, and it is an impressive number, I think, for a young accelerator. But if you look at the grand scheme of funding, as you know, from the greater entrepreneurship ecosystem, we still have a lot of ways to go in the disability front. So I'm really grateful and excited that you're bringing light to this very important issue.
Marcia Dawood:
Yes, that is a great story. $50 million is a lot of money to come out of raising after being an accelerator. That's fantastic. Tell us about the types of companies.
Diego Mariscal:
Yeah, as long as they are a founder with a disability, they can be companies ranging the Gamut from AI to Media to space. You and I were talking before we started the show about media company that we supported in the beginning stages of together and how they've been able to sell their company and go on to become even a more successful entrepreneur. So that's one example. Keeley Catwall another example is Eric Ingram that is focusing on satellite inspection in space. And so it really ranges the gamut. What is important to us is that the founder identifies as having a disability. And because of that, many companies that we work with have some sort of engagement within the disability community because we work on what we know, but we don't exclusively work with companies that tailor to the disability space.
Marcia Dawood:
Got it. Well, that's great. I mean, just being able to support founders who have disabilities but are doing amazing, incredible things that might not have anything to do specifically with the disabled community is.
Diego Mariscal:
Quite the yes.
Marcia Dawood:
Yes, it has been. So a lot of people don't know that July is Disability Pride Month. So tell us at the end of July you were actually on Good Morning.
Diego Mariscal:
America, so tell us about exactly that was quite the experience. As you said, july is Disability Pride Month, and it stems from july 26 is the date where the Americans with Disabilities Act was signed. This year was actually the 33rd anniversary of the Ada. And frankly, that was the revolutionary piece of legislation, bipartisan piece of legislation, where disability was recognized as something that needed to be accommodated for and something that shouldn't be discriminated against. And so based on that momentous, strive for the movement was that July became Disability Pride Month. Over the years, it has expanded not just to celebrate the Ada, but really to celebrate being proud of one's disabilities. And that was a big portion of what we were trying to amplify through Good Morning America, right. This notion of having a disability, oftentimes people think about it as something that has to be fixed or cured, but in reality it's just another part of human diversity, right? Just like sex, gender, sexuality might be. And more so than that, there's a sense that there can be a sense of pride, a sense of community, a sense of camaraderie. When I think about the fact that disability is the largest minority in the world, 1 billion people have some sort of disability, it makes me feel part of this larger movement. I often say it's like having 1 billion brothers and sisters that share a common experience. And so that's the message that we're trying to convey through July Disability Pride Month and specifically for Together and for GMAs. This notion of disability can also be a competitive advantage for startups. When you think about it, as folks with disabilities, we have to figure out how do we get dressed, how we drive, how we communicate. And so we're constantly problem solving and that can be a competitive advantage in the entrepreneurship ecosystem.
Marcia Dawood:
So you've said so many interesting things there. I think it's really important to emphasize that this is another type of diversity. It isn't a disability, meaning that you don't have the ability. Right. So maybe talk a little bit more about that, because I think the statistic that you just gave us about how 1 billion people have some sort of disability, I think that in a lot of cases and even hearing from Keeley Catwells, she says, Look, I have a disability, but you can't necessarily see it on the surface right away. So people would say, well, you're not disabled, I can't see your disability, so maybe talk a little bit more about that.
Diego Mariscal:
Yeah, it's quite a journey. Most people, when they see me, they see that I have cerebral palsy. Right. And they see that I have thermal walking. They wouldn't necessarily pick up on the fact that I also have it's called adjustment disorder, which means I like things in a kind of a very orderly fashion and I can get stressed when kind of unexpected situations happen. I've learned to manage that. But on the flip side of that, I've become very organized myself and sort of become very systematic. So I often talk about how even invisible disabilities can become competitive for folks. And the problem is that oftentimes we don't necessarily equate anxiety, depression, Hdhd and other invisible disabilities with a positive experience. Right. The narrative that still permeates is this idea that, oh, I have to overcome it, I have to fix it, I have to cure it. And what we're trying to do is say, no, you actually don't. You're going to be successful because of your disability, not in spite of your disability, or at least utilizing your disability as a competitive advantage. It's a differentiator for the ecosystem. My request or my challenge for the entrepreneurship community at large would be position and think critically about how is disability a competitor that is for businesses while also making sure that founders, even though it is a competitive advantage. We need to also make sure that there's the proper accommodations and the proper supports that founders may need in order to succeed. Right. So there's a lot to unpack there, but I think that we're making headway and proud to be one of the leaders in that space. Yes.
Marcia Dawood:
And as far as biases that I think we all have, there is a lot to unpack there. You had said before we started recording that one in three founders actually suffer from depression and under the ada that is considered a disability. But as you mentioned earlier about your organizational challenges, it sounds like it's very hard to know if people are suffering from that. And since we've had so many things that have happened in the last few years with COVID and the downturn in the market, and funding is becoming so much harder on entrepreneurs, especially underrepresented entrepreneurs, I think this is really something that people are struggling with. And they're struggling with it quietly.
Diego Mariscal:
Absolutely. And from the venture side, from the investment side, when you think about the fact that people with disabilities, again, are the largest minority in the world, 1 billion people have a disability, any of us can become disabled at any point in time. And also that making products and services that are accessible makes the world better for everybody. Right. When you think about curb cuts or when you think about automatic doors at the supermarket, those were products or even text messages, those were products that were invested or that were created for the disability community and they now serve everyone. Right? And so from an investor standpoint, underrepresented founders get 3% or less of venture capital funding, disability gets 0% investment. Right? So even more sort of dismal than other underrepresented founders. And yet the return and the impact that investment in the disability community would have would be tremendous just by the mere fact that in the US. One in four people have a disability. And so there's a real disconnect between the magnitude and the diversity in the community with the priorities that the investment community has given to the disability space. And so there is a real opportunity to be a pioneer and a disruptor in that space. And like I said, stay tuned because we have more of that coming together. And I'm really excited and happy to be able to shine a light on these issues because a lot of times the investor communities may not know that the disability space is such a robust community. Right. And so being able to have conversations like this is really important. Yeah.
Marcia Dawood:
So tell us a little bit more about the fund that you'd like to or that you're working on.
Diego Mariscal:
Yeah, great question. So we are actually developing a micro fund, a $5 million fund that is structured as a PRI with program related investments, as a kind of pilot program to be able to show with real data what the returns would be on that investment. And so, like I said, we have a network of about 600 entrepreneurs that we've supported along the way. Out of the 600, about 70 of those have gone through our accelerator program. And so out of those, we would be doing somewhere between 25 and 50 investments at about an average check size of 150K. So for a lot of these early companies, that would be a sizable check. Not necessarily the lead, but a sizable check. But more importantly, I think the system change work is that by investing in founders with disabilities, as an organization that is dedicated to supporting founders with disabilities, we are setting a valuation for the companies and we're also signaling to the investment community at large, this is worth your time, your money. We're vetting these founders and you should too. Right? And so from a system standpoint, really is making that first move and showcasing the returns of disability. And so we hope that both investors, philanthropists and other partners join us in this effort. Because the great thing about structuring this pilot as a program related investment is that it really has, it's a vehicle that allows us to attract many different stakeholders, not just investors, not just philanthropists, but really, you know, all of them in between. And so happy to share more of those details once we have those, but really excited on this journey. And honestly the fact that it's the first of its kind in some ways makes me proud and in others makes me frustrated. Right. My request to all the people listening is join the right because it's going to be a really exciting one.
Marcia Dawood:
So when you say program related investment, how would that work with philanthropy and with traditional?
Diego Mariscal:
Yes, great question. Feel free to keep asking clarifying questions if it gets complicated. So program related investment is a feature that the IRS has that allows nonprofits to invest. And the benefit of that or the reason why it is set up that way is because they actually want investments to be made in the populations that nonprofits serve. And so that's good because it allows, like we were saying, underrepresented founders to receive investment right through these vehicles. The difference is that PRI program related investments are donations that then get turned into investments. Meaning we receive the donation, the donor gets a tax deduction and then the nonprofit itself is the one that's making the investments. So the returns of the investments go back to the nonprofit. They don't go to the investor or to the donor specifically. However, the way that we're structuring it is, look, we're building a pipeline of early stage founders that are seeking funding and so become a part of this pipeline process building and then you'll have access to invest in these later stage founders that are already proven the model. And so the pitch to a philanthropist is really clear, right? Make a donation that is going to contribute to the sustainability of founders with disabilities in that whole ecosystem. Right? Because since we're expecting a return, we're not going to constantly be asking you for money. The pitch to the investor is, look, you're making a donation first, but that donation is helping us build an ecosystem that is going to make future investments in this community much stronger and you're going to have a chance to be a first observer and a pioneer in this movement, basically. Did that make sense? Yes.
Marcia Dawood:
And I absolutely love this idea. It's a little bit like donor advised funds, which we've talked about on the podcast before, where somebody can make, an individual can make a philanthropic donation, as you mentioned, they do get their tax deduction, but then that money can be invested into a for profit company helping any type of company that's working on something. But what we really tried to push when we were using donor advised funds, for example, at Next Wave Impact, was to be able to invest in impactful companies, most of which were led by women or people of color. And so I love this idea because it's very similar, but you're actually now allowing the nonprofit then to make the investment. You're actually taking a layer out of the middle, which is kind of nice.
Diego Mariscal:
Yeah. And a lot of people don't know that. A lot of nonprofits, frankly, that are supporting underrepresented founders haven't really dabbled in pris. And so, again, we're really glad to be utilizing that vehicle to make systematic change because as I said earlier, we're setting a valuation in the companies and we're backing that, and that signals to the larger investment community that this is something worth looking into.
Marcia Dawood:
I love that because we do have so many nonprofits out there that are serving certain communities like you're talking about, but this is just another way that they can do that that really hasn't been explored very much. And there's so much upside or potential upside to it if in fact, some of these companies, yes, they're risky, but some could do extremely well, and all of those proceeds would go back into the nonprofit. So it's kind of like a win win for everybody.
Diego Mariscal:
Exactly. And frankly, one of the things that donors historically have complained about is like, oh, you're hitting me up for money now, and you're going to hit me up for money later. Right. And I'm naturally going to have to give you money. But this solves that, right? Long term, obviously, because we're looking at long term investments. But in the grand scheme of things, it solves for that perpetuous cycle.
Marcia Dawood:
I think that's fantastic. I love it. So, Diego, do you split your time then between Washington, DC. And Mexico?
Diego Mariscal:
I don't, actually. Most of my time is spent in DC. I just happen to be in Mexico right now because it was my mom's 60th birthday and so we came to celebrate, but most of my time is spent in DC.
Marcia Dawood:
Oh, that's awesome. And we were just together. Put onto the SEC Small Business Capital Formation Advisory Committee. So that's where we met back in June. And I got to learn a little bit more about all the work you're doing. And as soon as I started to hear about it, I was like, oh, I have to have you on the podcast because this is so important, the work that you're doing and the amazing effects that you're having.
Diego Mariscal:
Thank you so much, Marcia. And this is just the beginning, right? So I'm looking forward to working together through the committee and through many other ways.
Marcia Dawood:
Yes, me too. And I'm so excited that we'll be able to share in the show notes about the clips from the Good Morning Merrick episode that happened in July. So thank you so much, Diego, for coming on the show. Really appreciate it. And we will make sure to link to your bio on LinkedIn. Is there any other place that you'd like people to reach out to you?
Diego Mariscal:
LinkedIn is great and I'll share the link to the website so people can check it out and we'll go from there. Perfect.
Marcia Dawood:
Thanks for coming on the show.
Diego Mariscal:
Amazing. Thank you.